Slide 1: Interim report January-September 2012
The Veturi shopping centre opened in Kouvola on 13 September 2012 Interim report January-September 2012 24 October 2012 CFO Jukka Erlund
Slide 2: Kesko’s January-September 2012
Kesko’s January-September 2012 • Kesko’s net sales €7.2 billion, up 3.6% - Sales growth has slowed • Operating profit excluding non-recurring items €163 million (€207 million) - Profitability was weakened by investments in store site network and expansion of Russian business operations - Cost increa
Slide 3: Ensuring profitable growth
Ensuring profitable growth • Profitability programme is aimed to ensure competitiveness, improve return on capital and maintain good solvency – Economic outlook has weakened and cost level has risen significantly – Cost saving target €100 million, i.e. around 5% of total costs • Savings cover all di
Slide 4: Net sales by division 1.1.-30.9. (M€)
Net sales by division 1.1.-30.9. (M€) 2012 2011 Change Food trade 3,179 3,074 + 3% Home and speciality goods trade 1,116 1,063 + 5% Building and home improvement trade 2,170 2,059 + 5% Car and machinery trade 887 911 - 3% Group total 7,227 6,979 + 4% 4 Q3 2012 Media and analyst briefing 24.10.2012
Slide 5: Operating profit excl. non-recurring items by division 1.1.-30.9. (M€)
Operating profit excl. non-recurring items by division 1.1.-30.9. (M€) 2012 2011 Change M€ Food trade 123 134 -10 Home and speciality goods trade - 13 4 -16 Building and home improvement trade 24 31 -7 Car and machinery trade 37 45 -7 Group total 163 207 -45 5 Q3 2012 Media and analyst briefing 24.1
Slide 6: Operating profit excl. non-recurring items for January-September (2001–2012)
Operating profit excl. non-recurring items for January-September (2001–2012) 250.6 250 206.1 207.4 200 192.3 187.6 162.9 150.4 156.4 150 90.9 87.4 100 68.7 50 37.8 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 6 Q3 2012 Media and analyst briefing 24.10.2012
Slide 7: Operating profit by quarter (M€)
Operating profit by quarter (M€) 100 0.6 80 1.3 60 89.2 40 83.3 78.6 0.8 71.5 2.8 60.7 20 34.9 23.6 0 -1.7 Q1 Q2 Q3 -1.0 Q4 Q1 Q2 Q3 -20 2011 2012 Operating profit excl. non-recurring items Non-recurring items 7 Q3 2012 Media and analyst briefing 24.10.2012
Slide 8: Group’s profit before tax 1-9/2012 (M€)
Group’s profit before tax 1-9/2012 (M€) 250 208.1 200 0.4 162.1 1.1 150 100 207.4 162.9 50 0.3 0 -1.8 1-9/2011 1-9/2012 -50 Non-recurring items Operating profit excl. non-recurring items Net financial items and income from associates excl. non-recurring items 8 Q3 2012 Media and analyst briefing 24.
Slide 9: Food trade 1-9/2012
Food trade 1-9/2012 Net sales 1-9, M€ • Grocery sales of K-food stores increased by 4.3% 4000 3,074 3,179 +3.4% - Sales of Pirkka products grew by 14% 3000 • Profit performance was impacted by the 2000 expansion of the store site network and the 1000 launching of business operations in Russia 0 • Ca
Slide 10: Home and speciality goods trade 1-9/2012
Home and speciality goods trade 1-9/2012 Net sales 1-9, M€ • Sales of K-citymarket, Intersport and 500 1,063 1,116 +4.9% Budget Sport increased, as well as the 400 +(..)% sales of furniture by Asko and Sotka 300 +3.1% • Profit was negatively impacted by an 200 100 increase in Anttila's and K-citymar
Slide 11: Building and home improvement trade 1-9/2012
Building and home improvement trade 1-9/2012 Net sales 1-9, M€ • Market growth slowed in the building and 2500 2,059 2,170 +5.4% home improvement trade 2000 +8.1% - Sales increase continued in Russia 1500 1000 +2.1% • Profitability of the building and home 500 improvement trade was negatively 0 impa
Slide 12: Car and machinery trade 1-9/2012
Car and machinery trade 1-9/2012 Net sales 1-9, M€ 911 887 -2.7% • VV-Auto’s sales performance for January- 1000 +2.2% September -3.7% and for July-September 800 -15.4%, partly attributable to heavy decline 600 -3.2% in total market 400 200 • Market share of Audi, Volkswagen and 0 Seat passenger car
Slide 13: Group’s capital expenditure (M€)
Group’s capital expenditure (M€) 350 320.9 300 21.1 274.5 27.0 250 35.7 200 150 272.8 238.8 100 50 0 1-9/2011 1-9/2012 Store sites Others Acquisitions 13 Q3 2012 Media and analyst briefing 24.10.2012
Slide 14: Equity ratio, %
Equity ratio, % 60 50 40 30 54.0 51.2 20 10 0 9/2011 9/2012 14 Q3 2012 Media and analyst briefing 24.10.2012
Slide 15: Return on capital excl. non-recurring items, moving 12 mo (%)
Return on capital excl. non-recurring items, moving 12 mo (%) 15 10 14.2 5 9.4 9.5 7.6 0 Return on equity, % Return on capital employed, % 10/10-9/11 10/11-9/12 15 Q3 2012 Media and analyst briefing 24.10.2012
Slide 16: Market capitalisation 30.9. (M€)
Market capitalisation 30.9. (M€) 3000 2,277 2,192 2000 1,532 1,462 €22.05 /share 1000 745 730 €23.00 /share 0 2011 2012 A share B share 16 Q3 2012 Media and analyst briefing 24.10.2012
Slide 17: Performance indicators
Performance indicators 1-9/2012 1-9/2011 Net sales, € million 7,227 6,979 Operating profit excl. non-recurring items, € million 163 207 Group’s profit before tax, € million 162 208 Capital expenditure, € million 274 321 Earnings/share excl. non-recurring items, €, basic 1.06 1.34 Return on capital e
Slide 18: 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 (10/2012-9/2013) in comparison with the 12 months preceding the reporting period (10/2011-9/2012). Resulting fr
Slide 19: Thank you!
Thank you!