Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Shareholder Meeting (April 2022)
23 slides from Kesko Oyj Class A's shareholder meeting presentation, Apr 7, 2022
Slide 1: Review of 2021 by the President and CEO
KESKO ANNUAL GENERAL MEETING REVIEW OF 2021 BY THE PRESIDENT AND CEO Mikko Helander President and CEO 7 April 2022
Slide 2: A record-result in 2021
A RECORD-RESULT IN 2021 1-12/2021 1-12/2020 Net sales, € million 11,300.2 10,669.2 Operating profit, € million 775.5 600.2 Profit before tax, € million 712.9 527.6 Net profit for the period, € million 571.8 435.3 Earnings per share for net profit attributable to owners of the parent 1.44 1.09 (€), b
Slide 3: Net sales growth continued
NET SALES GROWTH CONTINUED GROUP DIVISIONS € million € million 2020 2021 6 000 6,000 5,732 5,909 12,000 12 000 11,300 10,669 4,388 44,000 000 3,640 8 000 8,000 4 000 2 000 2,000 4,000 893 1,028 0 0 2020 2021 Grocery trade Building and technical Car trade trade Comparable growth 8.2% 3.1% 14.7% 15.2%
Slide 4: Operating profit improved markedly
OPERATING PROFIT IMPROVED MARKEDLY GROUP DIVISIONS € million € million 2020 2021 442.9 775.5 800 400 375.2 318.0 600 567.8 400 187.7 200 200 52.2 23.4 0 0 2020 2021 Grocery trade Building and technical Car trade trade Operating margin 5.3% 6.9% 6.5% 7.5% 5.2% 7.2% 2.6% 5.1% 4 Comparable figures Illu
Slide 5: Return on capital employed continued to strengthen
RETURN ON CAPITAL EMPLOYED CONTINUED TO STRENGTHEN % 20.6 20 19.0 16.9 17.2 14.0 12.0 11.2 10 6.3 0 Grocery trade Building and technical trade Car trade Group 2020 2021 5 Comparable figures
Slide 6: Strong financial position
STRONG FINANCIAL POSITION 2021 2020 Cash flow from operating activities, € million 1,152.0 1,152.4 Liquid assets, € million 387.7 306.0 Capital expenditure, € million 276.6 398.4 Interest-bearing net debt excl. lease liabilities, € million -21.3 285.3 Interest-bearing net debt/EBITDA (rolling, excl.
Slide 7: Financial targets
FINANCIAL TARGETS Level achieved in INDICATOR Financial target 2021 Comparable operating margin, % Over 6.0 6.9 Comparable return on capital employed, % Over 14.5 17.2 Interest-bearing net debt/EBITDA, excluding the impact of IFRS 16 at maximum 2.5 0.0 7
Slide 8: Strategy
STRATEGY Al
Slide 9: Good strategy
GOOD STRATEGY GROWTH STRATEGY FOCUS: ONE UNIFIED GROCERY TRADE CUSTOMER EXPERIENCE BUILDING AND TECHNICAL TRADE DIGITALISATION SUSTAINABILITY CAR TRADE 9
Slide 10: Continued profitability improvement
CONTINUED PROFITABILITY IMPROVEMENT Comparable operating profit Reported figures, € million Guidance 776 680–800 800 700 600 568 500 462 429 400 296 300 243 274 221 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014-2019 continuing operations IFRS 16 impact
Slide 11: Sales growth through existing stores and systems
SALES GROWTH THROUGH EXISTING STORES AND SYSTEMS HAS IMPROVED OUR EFFICIENCY Plenty of additional potential Retail and B2B sales Steady cost ratio growth for core businesses since 2014 improvement €5.6 bn 16.4% 2014: 19.2% Compared to end of 2021 Costs / reported Group net sales 11 IFRS 16 impact si
Slide 12: Excellent customer experiences and efficiency basis for grocery trade profitability
EXCELLENT CUSTOMER EXPERIENCES AND EFFICIENCY THE BASIS FOR GOOD PROFITABILITY IN GROCERY TRADE KEY FACTORS • The most extensive network of stores across Finland combined NET SALES 2021 with efficient online sales • K-retailers and store-specific business ideas built on data ensure the best customer
Slide 13: Good growth potential in building and technical trade
GOOD GROWTH POTENTIAL IN BUILDING AND TECHNICAL TRADE KEY FACTORS • Growth supported by our focus on the growing B2B trade, NET SALES 2021 supported by good B2C trade • We can further improve operations and customer experiences by developing sales, internal processes, and digital services €4.4 billi
Slide 14: Successful changes in car trade form basis for growth
SUCCESSFUL CHANGES IN CAR TRADE FORM A BASIS FOR GROWTH AND GOOD PROFITABILITY KEY FACTORS • Our focus on selling new cars, used cars, and services lends us NET SALES 2021 growth potential • Good collaboration with the Volkswagen Group €1 billion • Competitiveness to improve with efforts to improve
Slide 15: Kesko updated its sustainability strategy
KESKO UPDATED ITS SUSTAINABILITY STRATEGY MANAGEMENT REMUNERATION TIED TO SUSTAINABILITY TARGETS SUSTAINABILITY STRATEGY VISION: IMPLEMENTATION WITHIN DIVISIONS: WE ENABLE SUSTAINABLE CHOICES FOR OUR CUSTOMERS AND DRIVE CHANGE THROUGHOUT • GROCERY TRADE THE VALUE CHAIN • BUILDING AND TECHNICAL TRADE
Slide 16: Outlook
K OUTLOOK
Slide 17: The war in Ukraine and its impacts
THE WAR IN UKRAINE AND ITS IMPACTS • Kesko divested its operations in Russia between 2016 and 2018 for a total of some €347 million • We discontinued the purchase of Russian products and food exports to Russia when the war began • The war and the sanctions imposed will have a significant impact on t
Slide 18: Guidance for 2022
GUIDANCE FOR 2022 Kesko estimates that its comparable operating profit in 2022 will be in the range of €680-800 million. In 2021, Kesko’s comparable operating profit totalled €776 million. 18
Slide 19: Creating value for our shareholders
CREATING VALUE FOR OUR SHAREHOLDERS
Slide 20: The number of Kesko shareholders rising fast
THE NUMBER OF KESKO SHAREHOLDERS RISING FAST MORE THAN 67,500 SHAREHOLDERS A BALANCED OWNERSHIP STRUCTURE GROWTH IN SHAREHOLDER NUMBERS 70000 65000 23% 60000 40% 55000 50000 37% 45000 40000 Nominee-registered and foreign ownership 35000 03 05 07 09 03 09 03 07 09 01/19 05 07 05 01/21 01/20 01/22 11
Slide 21: Continued good returns for our owners
CONTINUED GOOD RETURNS FOR OUR OWNERS MARKET CAPITALISATION OVER €10 BILLION, DIVIDEND YIELD OVER 4% 4 3 2 1 0 02.01.2018 02.05.2018 02.09.2018 02.01.2019 02.05.2019 02.09.2019 02.01.2020 02.05.2020 02.09.2020 02.01.2021 02.05.2021 02.09.2021 02.01.2022 21 Kesko B Kesko KeskoBBkokonaistuotto total r
Slide 22: The Board's dividend proposal €1.06 / share
THE BOARD’S DIVIDEND €1.06 / SHARE PROPOSAL • Proposed to be paid in four instalments in 2022 • €0.27/April, €0.26/June, €0.27/September, €0.26/December • Total dividends to be paid €421 million • Growth in dividend per share 41% 22
Slide 23: Shopping
SHOPPING