Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Q3 2011 Earnings Presentation
30 slides from Kesko Oyj Class A's earnings presentation, Oct 26, 2011
Slide 1: Welcome!
Welcome! 1 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 2: Corporate Management Board to be revised
Corporate Management Board to be revised 26 October 2011
Slide 3: Kesko's Corporate Management Board as from 1 December 2011
Kesko’s Corporate Management Board as from 1 December 2011 Chair Terho Kalliokoski Minna Kurunsaari Arja Talma Matti Halmesmäki Food trade Home and speciality Building and home President and CEO goods trade improvement trade Pekka Lahti Riitta Laitasalo Merja Haverinen Jukka Erlund Car and machinery
Slide 4: Interim report
Interim report January-September 2011 26 October 2011 VP, Corporate Controller Eva Kaukinen
Slide 5: Food trade and car trade achieved profitable growth, 1-9/2011
Food trade and car trade achieved profitable growth, 1-9/2011 • In the food trade, growth continued and profitability improved – Pirkka product sales increased by 38% • In the home and speciality goods trade and in the building and home improvement trade, sales performance and profitability varied b
Slide 6: Kesko's expansion continues
Kesko’s expansion continues • Capital expenditure on K-citymarkets, K-supermarkets and K-rauta stores continues – Three new K-citymarkets were opened, six are being built – 11 new K-supermarkets were opened, 14 are being built – Two new K-rauta stores were opened, five are being built • Kesko’s expa
Slide 7: Kesko's responsibility work receives recognition
Kesko's responsibility work receives recognition • For the ninth time, Kesko was included in the Dow Jones sustainability indexes DJSI World and DJSI Europe in September. • For the third time, Kesko was included as a member in the highly valued FTSE4Good index focusing on responsible investment. In
Slide 8: Net sales by division 1.1.-30.9. (M€)
Net sales by division 1.1.-30.9. (M€) 2011 2010 Change% Food trade 3,074 2,874 6.9 Home and speciality goods trade 1,063 1,068 -0.4 Building and home improvement trade 2,059 1,894 8.7 Car and machinery trade 911 752 21.2 Common operations and eliminations -128 -120 5.9 Group total 6,979 6,467 7.9 Co
Slide 9: Group's net sales by quarter (M€)
Group’s net sales by quarter (M€) 3 000 +8.5% 2 500 +7.8% +6.4% +4.6% +7.3% +7.4% 456 361 467 +9.3% 2 000 - 3.0% 409 427 306 272 6 467 1 500 1 000 1,804 1,797 2,016 1,937 +7.4% 1,686 1,870 1,949 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 Finland Other countries 9 Q3 2011 Media and analyst briefing Eva Kau
Slide 10: Operating profit excl. non-recurring items by division
Operating profit excl. non-recurring items by division 1.1.-30.9. (M€) 2011 2010 Change Food trade 133.6 123.3 10.3 Home and speciality goods trade 3.7 20.3 -16.6 Building and home improvement trade 31.1 24.2 6.9 Car and machinery trade 44.8 29.2 15.6 Group total 207.4 187.6 19.8 10 Q3 2011 Media an
Slide 11: Operating profit by quarter (M€)
Operating profit by quarter (M€) 150 120 35.3 90 0.6 1.0 2.3 60 88.7 89.2 78.1 80.5 0.8 83.3 30 0.1 34.9 20.9 0 -1.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 Operating profit excl. non-recurring items Non-recurring items 11 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 12: Group's profit before tax
Group’s profit before tax 1-9/2011 (M€) 250 225.1 208.1 36.3 0.4 200 150 100 207.4 187.6 50 1.2 0.3 0 1-9/2010 1-9/2011 Non-recurring items Operating profit excl. non-recurring items Net financial items and income from associates excl. non-recurring items 12 Q3 2011 Media and analyst briefing Eva Ka
Slide 13: Food trade 1-9/2011
Food trade 1-9/2011 Net sales 1-9, M€ 4 000 3,074 +6.9% • Net sales of the food trade grew 2,874 3 000 by 6.9% – Sales of Pirkka products were up 2 000 by 38% 1 000 – Good sales performance was achieved especially by the 0 K-citymarket and K-supermarket 2010 2011 chains Finland Other countries • The
Slide 14: Home and speciality goods trade 1-9/2011
Home and speciality goods trade 1-9/2011 Net sales 1-9, M€ 1 200 1,068 - 0.4% 1,063 1 000 +7.1% • K-citymarket home and speciality 800 - 0.5% goods, as well as Asko and Sotka 600 increased their sales 400 • Anttila’s sales decreased, two less 200 0 department stores 2010 2011 • Number of Musta Pörss
Slide 15: Building and home improvement trade 1-9/2011
Building and home improvement trade 1-9/2011 Net sales 1-9, M€ 2,059 +8.7% 1,894 2 000 • In the building and home improvement 1 500 +10.8% trade, sales increased in all operating countries 1 000 – Good sales performance in Russia in +6.3% 500 terms of roubles – Sales turned down in Sweden 0 towards
Slide 16: Car and machinery trade 1-9/2011
Car and machinery trade 1-9/2011 Net sales 1-9, M€ 1 000 911 +21.2% 800 752 +13.6% • Comparable net sales of the car and 600 machinery trade grew by 25.0% 400 • In January-September, Volkswagen +22.1% was the market leader in passenger 200 cars and vans 0 2010 2011 • Market share of Audi, Volkswagen
Slide 17: Group's capital expenditure (M€)
Group’s capital expenditure (M€) 350 320.9 300 21.1 23.0 250 200 150 123.6 276.7 100 29.9 50 93.7 0 1-9/2010 1-9/2011 Store sites Others Acquisitions 17 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 18: Equity ratio, %
Equity ratio, % 18 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 19: Interest-bearing net debt (M€)
Interest-bearing net debt (M€) 9/2010 9/2011 Liquid assets 9/2011: €488 million (9/2010: €850 million) 19 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 20: Return on capital, %
Return on capital, % Excl. non-recurring items 1-9/2011 8.6% Excl. non-recurring items 1-9/2011 13.3% 1-9/2010 8.0% 1-9/2010 13.0% 20 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 21: Return on capital, %, moving 12 mo
Return on capital, %, moving 12 mo Excl. non-recurring items 10/10-9/11 9.4% Excl. non-recurring items 10/10-9/11 14.2% 10/09-9/10 8.0% 10/09-9/10 13.0% 21 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 22: Performance indicators
Performance indicators 1-9/2011 1-9/2010 Net sales, € million 6,979 6,467 Operating profit, € million 207.8 223.9 Operating profit excl. non-recurring items, 207.4 187.6 € million Group’s profit before tax, € million 208.1 225.1 Capital expenditure, € million 320.9 123.6 Earnings/share, €, diluted 1
Slide 23: Share price trend 12 mo
Share price trend 12 mo Kesko OMX Helsinki CAP 24.10.2011 23 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 24: Market capitalisation 30.9. (M€)
Market capitalisation 30.9. (M€) 3,366 2,277 €23.14 /share €23.48 /share 24 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 25: Earnings/share € 1-9 (diluted)
Earnings/share € 1-9 (diluted) 1,6 1.48 1,4 1.33 0.27 1,2 1,0 0,8 1.33 0,6 1.20 0,4 0,2 0,0 2010 2011 Earnings/share excl. non-recurring items, diluted Earnings/share, non-recurring items, diluted 25 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 26: Future outlook
Future outlook Estimates of the future outlook for the Kesko Group's net sales and operating profit excluding non- recurring items are given for the 12 months following the reporting period (10/2011-9/2012) in comparison with the 12 months preceding the reporting period (10/2010-9/2011). The outlook
Slide 27: Thank you!
Thank you! 27 Q3 2011 Media and analyst briefing Eva Kaukinen 26.10.2011
Slide 28: Arja Talma appointed President of Rautakesko
Arja Talma has been appointed President of Rautakesko and Corporate Management Board member responsible for Kesko's building and home improvement trade with effect from 1 November 2011 Age 49, Master of Science (Economics and Business Administration), eMBA. Employment history: Corporate Management
Slide 29: Minna Kurunsaari appointed to Corporate Management Board
Minna Kurunsaari has been appointed Kesko's Corporate Management Board member responsible for the home and speciality goods trade with effect from 1 December 2011 Age 46, Master of Laws Employment history: Kesko Food Ltd, Vice President, Commerce 2008- Kesko Food Ltd, Vice President, K-supermark
Slide 30: Jukka Erlund appointed Chief Financial Officer
Jukka Erlund has been appointed Kesko Corporation's Chief Financial Officer (CFO) and Corporate Management Board member responsible for accounting and finance with effect from 1 November 2011 Age 37, Master of Science (Economics and Business Administration), eMBA. Employment history: Kesko Food Lt