Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Non-Deal Roadshow (2021)
16 slides from Kesko Oyj Class A's roadshow presentation, 2021
Slide 1: Execution of Successful Growth Strategy Continues
KESKO INVESTOR PRESENTATION Q3/2021 Execution of Successful Growth Strategy Continues CFO Jukka Erlund
Slide 2: K Group and Kesko Today
K Group and Kesko Today Biggest in Finland, Profitable growth K Group has ~46,000 #1 #3 in Northern Europe with retail sales of €14bn strategy in 3 core divisions employees, approx. 1,800 stores and comprehensive digital services in 8 countries Strong financial Market cap approx. World’s most sustai
Slide 3: Kesko in a nutshell
Kesko in a nutshell Net Sales Operating profit Car trade Car trade Grocery trade €49.8m Grocery trade €1,043m €5,869m €435.1m Building and technical trade Building and €4,204.0m €11,092 m technical trade €737.6 m €288.5m 3 Q3 2021 rolling 12-months, Division figures include common functions and elim
Slide 4: Best Quarter Result in Kesko's History
Best Quarter Result in Kesko’s History 7-9/2021 7-9/2020 Net sales, € million 2,902.4 2,651.9 Net sales growth, % 7.8 4.6 Operating profit, € million 236.4 181.8 Operating margin, % 8.1 6.9 Profit before tax, € million 219.3 163.6 Earnings per share, basic, € 0.43 0.33 Cash flow from operating activ
Slide 5: We Have a Good Strategy
We Have a Good Strategy Growth strategy FOCUS: ONE UNIFIED GROCERY TRADE CUSTOMER EXPERIENCE BUILDING AND TECHNICAL TRADE DIGITALISATION SUSTAINABILITY CAR TRADE 5
Slide 6: Focus on Northern Europe, emphasis on Nordic Countries
Focus on Northern Europe, emphasis on Nordic Countries Nordic countries among the most stable and well-functioning societies globally
Slide 7: Profitability Has Constantly Improved
Profitability Has Constantly Improved The good recent market development has contributed to profitability improvement Comparable operating profit Guidance 740–800 Reported figures, € million 800 700 600 568 500 462 429 400 296 300 243 274 221 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2014-20
Slide 8: Sales Growth Through Existing Stores and Systems
Sales Growth Through Existing Stores and Systems Has Significantly Improved Efficiency Plenty of further untapped potential Retail sales growth Steady cost ratio for core businesses improvement since 2014 €4.2bn 16.4% 2014: 19.2% IFRS 16 impact from 2018 8 Q3 2021, rolling 12 months Costs / reported
Slide 9: Acquisitions Have Significantly Supported Profitability
Acquisitions Have Significantly Supported Profitability Integration of acquired businesses as part of Kesko has been successful 03/2019 07/2019 Audi and VW, Audi, 09/2020 SEAT businesses of SEAT Länsiauto and Carlsen Fritzøe 07/2018 businesses of €201m 06/2016 Huittisen Laakkonen Onninen Skattum Laa
Slide 10: Digital Sales Now Worth €1.4 billion
Digital Sales Now Worth €1.4 billion Digital trade sales €1.4 billion Q3/2021, rolling 12 months • In B2B trade, particularly strong growth in Kespro’s and Onninen’s digital sales 3% 2% 19% • Strong online growth also in B2C: • K-Ruoka +55% (groceries) 41% 35% • K-Rauta +51% (building & home improve
Slide 11: Strong Combination in Food Trade Forms Foundation for Profitable Growth
Strong Combination in Food Trade Forms Foundation for Profitable Growth Also Going Forward Retail sales, Q3/2021, rolling 12 months Neste K Others €115m €47m • K Group grocery stores together with Kespro’s foodservice Kespro €805m business form a strong, unique combination K-Citymarket • One of the
Slide 12: Strong Country-Specific Actions Support Growth in Building and Technical Trade
Strong Country-Specific Actions Support Growth in Building and Technical Trade Retail sales, Q3/2021, rolling 12 months Kesko Senukai €1,046m • Strong position in Finland • A significant operator in Scandinavia Baltics €89m Finland • 75% of net sales come from B2B trade, where Poland €2,865m €283 M€
Slide 13: Wider Car Sector Transformation and Our Own Transformation Efforts Support Sales Growth
Wider Car Sector Transformation and Our Own Transformation Efforts Support Sales Growth Net sales Q3/2021, rolling 12 months • Digitalisation and customer experience central to strategy Services • Transformation programme is proceeding well, €173m forming a basis for growth • Strong product offering
Slide 14: Guidance
Guidance Kesko estimates that its comparable operating profit in 2021 will be in the range of €740-800 million. In 2020, Kesko’s illustrative comparable operating profit totalled €554 million. 14
Slide 15: For shopping to be fun
PC For shopping to be fun PC
Slide 16: Contact
Contact Hanna Jaakkola Vice President, Investor Relations tel. +358 40 5666 070 hanna.jaakkola@kesko.fi 16