Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Presentation (July 2025)
69 slides from Kesko Oyj Class A's investor presentation, July 2025
Slide 1: Kesko seeks growth in all its three business divisions
KESKO INVESTOR PRESENTATION KESKO SEEKS GROWTH IN ALL ITS THREE BUSINESS DIVISIONS Q2/2025 1
Slide 2: Kesko today
KESKO TODAY KEY FINANCIALS Leading trading sector ~39,000 employees in the #1 Rolling 12 mo 2024 6/2025 company in Northern whole K Group,1,800 stores, Europe with retail and B2B 3 divisions, comprehensive Net sales, € million 12,083.7 11,920.1 sales of €15bn digital services in 8 countries Operatin
Slide 3: Kesko segment key figures
KESKO SEGMENT KEY FIGURES NET SALES OPERATING PROFIT Car trade Car trade Sales to €77.6m €1,290m B2C-sales K-retailers ~18% ~45% 6.0% Grocery trade €6,362m Building and technical Grocery trade trade €644.7m €12,084m €12,084m 5.3% €425.1m €168.8m 6.7% Building and 3.8% technical trade B2B-sales 37% €
Slide 4: Kesko growth strategy
KESKO GROWTH STRATEGY THE LEADING AND MOST ATTRACTIVE TRADING SECTOR VISION GROWTH COMPANY IN NORTHERN EUROPE STRATEGIC DELIVERING STRENGTHENING BUILDING A FOCUSED INCREASING TARGETS PROFITABLE GROWTH MARKET POSITION B2C AND B2B CUSTOMER VALUE BUSINESS PORTFOLIO COMPETITIVE OPERATIONAL OMNICHANNEL K
Slide 5: Strong position in Finnish food trade yielding good results
GROCERY TRADE STRONG POSITION IN FINNISH FOOD TRADE YIELDING GOOD RESULTS 5
Slide 6: Grocery trade division in brief
GROCERY TRADE GROCERY TRADE DIVISION IN BRIEF MARKET SHARE IN 1,100 stores 6,300 employees The leading foodservice 2024 Almost 800 K Group grocery provider in Finland (NIELSEN) stores offer online grocery services 860 49,1% market share K-retailers NET SALES Rolling 12 mo 2024 2023 2022 KCM non-food
Slide 7: Target to maintain good profitability and gain market share
GROCERY TRADE: GROCERY TRADE TARGET TO MAINTAIN GOOD PROFITABILITY AND GAIN MARKET SHARE KEY ACTIONS: • STRENGTHENING STORE SPECIFIC BUSINESS IDEAS: INVESTMENTS WILL HAVE A SLIGHT EFFECT Focusing on strengthening chosen competitive advantages ON PROFITABILITY. and raising the level of stores. • DEVE
Slide 8: Grocery trade division
GROCERY TRADE GROCERY TRADE DIVISION GROCERY STORE BUSINESS In brief: Market and market shares: Operates in Finland, business comprises three grocery store Total Finnish grocery trade market €21–22 billion; chains with some 1,100 stores across the country operated by Kesko the second biggest operato
Slide 9: Kesko and K-retailers
GROCERY TRADE KESKO AND K-RETAILERS Wholesale, product strategy Chain agreement, chain steering KESKO Services and business support Store concepts Chain selections, wholesale Steering retail prices and campaigns K-RETAILERS Responsible purchasing channels, Ensure customer satisfaction, results purch
Slide 10: Grocery trade division: foodservice business
GROCERY TRADE GROCERY TRADE DIVISION FOODSERVICE BUSINESS In brief: Market and market share: Operates in Finland, business comprises Kespro’s Total Finnish foodservice market €2.5 billion; foodservice wholesale with 13 cash-and-carry outlets and Kespro the market leader with a market share online sa
Slide 11: Grocery trade store site investment focus on growth centres
GROCERY TRADE GROCERY TRADE STORE SITE INVESTMENT FOCUS ON GROWTH CENTRES Emphasising hypermarkets and other larger units • Urbanisation is expected to accelerate in Finland • Long-term store site investment programme to ensure Kesko’s competitiveness and market share development • During up-coming
Slide 12: New urban hypermarkets to be opened in Finnish growth centres
NEW URBAN HYPERMARKETS TO BE OPENED IN GROCERY TRADE FINNISH GROWTH CENTRES Several new growth centre hypermarkets in pipeline • New K-Citymarket in a shopping centre in Lempäälä near Tampere in 2025 • New K-Citymarket in Lahti city centre in autumn 2025, replacing K-Citymarket Paavola • New K-Citym
Slide 13: A good result in a challenging economic cycle
BUILDING AND TECHNICAL TRADE A GOOD RESULT IN A CHALLENGING ECONOMIC CYCLE 13
Slide 14: Building and technical trade in brief
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE IN BRIEF NET SALES Onninen Leading operator in building and 80% B2B trade accounts for more Baltic technical trade in Northern Europe than 80% of net sales Onninen contries Poland K-rauta 3% 8% Finland Customer segments: Technical professiona
Slide 15: Focusing on securing profitability and generating cash flow
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE: FOCUSING ON SECURING PROFITABILITY AND GENERATING CASH FLOW KEY ACTIONS: • FINLAND: Continuing growth and winning market share. THE LONG-TERM STRATEGIC TARGET OF 6-8 % • SWEDEN AND NORWAY: Stabilising and improving EBIT MARGIN IS STILL VALID
Slide 16: Building and technical trade: technical trade
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE TECHNICAL TRADE In brief: Market and market shares: Operates in 8 countries. Kesko subsidiary Onninen offers Total market (est.) for 8 countries (incl. Denmark) technical wholesale products and services (offering varies €22 bn; Kesko’s market
Slide 17: Technical trade – opportunities for further growth outside Finland
BUILDING AND TECHNICAL TRADE TECHNICAL TRADE – OPPORTUNITIES FOR FURTHER GROWTH OUTSIDE FINLAND Total market size ~€22 billion Technical trade Retail market (€bn) 2.9 Technical trade Market share 19% Retail market (€bn) 2.5 Market share of current Market share (2024) 44% 39%* operating market (2024)
Slide 18: Building and technical trade: building and home improvement
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE BUILDING AND HOME IMPROVEMENT In brief: Market and market shares: Operates in 8 countries; offers products and services for Total market (est.) for 8 countries€25 bn; Kesko’s building, renovation, garden, interior decoration and home market s
Slide 19: Building and home improvement – further possibilities outside Finland
BUILDING AND TECHNICAL TRADE BUILDING AND HOME IMPROVEMENT – STILL FURTHER POSSIBILITIES ESPECIALLY OUTSIDE FINLAND Total market size ~€18 billion Profession Consumers albuilders Profession Consumers Retail market (€bn) 3.1 1.7 al builders Market share (2024) 12% Retail market (€bn) 1.6 0.9 Market s
Slide 20: Strong focus on B2B trade in building and home improvement in Finland
STRONG FOCUS ON B2B TRADE IN BUILDING AND BUILDING AND TECHNICAL TRADE HOME IMPROVEMENT TRADE ALSO IN FINLAND Breakdown of K-Rauta Finland’s sales by customer segments DIRECT DELIVERIES TO INDUSTRY 20 B2C-project customers purchase typically e.g. the whole kitchen or bathroom renovation
Slide 21: Acquisitions have played a significant role in international growth
BUILDING AND TECHNICAL TRADE ACQUISITIONS HAVE PLAYED A SIGNIFICANT ROLE IN INTERNATIONAL GROWTH 4/2016 6-7/2018 1/2019 3/2020 08/2021 4/2022 3/2023 1/2024 1/2025 Suomen Reinin Liha Sørbø Trelast MIAB Kungälvs Trä Djurbergs Zenitec Sweden Davidsen A/S Roslev Lähikauppa and Kalatukku and Tau & Jørpel
Slide 22: Market share in Danish builders' merchant set to rise via acquisitions
BUILDING AND TECHNICAL TRADE MARKET SHARE IN DANISH BUILDERS’ MERCHANT SET TO RISE FROM ~10% TO ~20% VIA ACQUISITIONS KESKO IN DENMARK Tømmergaarden A/S • Kesko expanded its operations to Denmark by PART OF DAVIDSEN AS OF 1 JUNE 2025 acquiring the builders' merchant chain Davidsen in 2024, Kesko hol
Slide 23: Building and technical trade long-term EBIT-% target intact
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE LONG-TERM EBIT-% TARGET INTACT EBIT-% Target Kesko 6-8% 8 6 7.1% Kesko 4 Kesko 3.9% 2 2.4% 0 Time 2018 2021, 2022 2024 23
Slide 24: Good result in car trade
CAR TRADE GOOD RESULT IN CAR TRADE 24
Slide 25: Car trade in brief
CAR TRADE CAR TRADE IN BRIEF K-Auto is the leading and most interesting automotive company in Finland Rolling 12 2024 2023 2022 mo 6/2025 Importing and sales of attractive and high-quality new cars. Net sales, € million 1,290 1,209 1,262 1,125 Significant multi-brand used car sales in Finland. Opera
Slide 26: Focusing on performing better than the market in all businesses
CAR TRADE CAR TRADE: FOCUSING ON PERFORMING BETTER THAN THE MARKET IN ALL BUSINESSES KEY ACTIONS: • CONTINUING WITH GROWTH STRATEGY: SOLID EBIT DEVELOPMENT Major turnaround and continuous development establish a robust foundation for the next strategy period. #1 IN BRAND AWARENESS AND PREFERENCE • M
Slide 27: Car trade
CAR TRADE CAR TRADE In brief: Market and market shares: Operates in Finland. The whole value chain - imports and sells Total first registrations of new cars incl. vans in Finland Volkswagen Group car brands, sells used cars, and offers car- approx. 74,000 in 2024, of which Kesko’s K-Auto accounted r
Slide 28: Other strategic themes
OTHER STRATEGIC THEMES 28
Slide 29: Kesko is affected by various megatrends
KESKO IS AFFECTED BY VARIOUS MEGATRENDS INTEREST RATES & INFLATION URBANISATION CLIMATE CHANGE & GREEN TRANSITION • Weak FOCUS : consumer and business confidence • Migration to growth centres • Energy efficiency and energy infrastructure investments • Higher cost of capital • Substantial infra and b
Slide 30: Kesko strategy summary 2024-2026
KESKO STRATEGY SUMMARY 2024-2026 # The portfolio will most likely stay as is during 2024-2026. The focus is on maintaining and further developing current businesses. # Targeting growth and profitability improvement as outlook strengthens in construction in 2025-2026. # In grocery trade, focusing on
Slide 31: Kesko's financial targets intact
KESKO’S FINANCIAL TARGETS INTACT TARGET Rolling 12 mo 6/2025 OPERATING MARGIN, OVER 6% 5.3% COMPARABLE RETURN ON CAPITAL OVER 14.5% 10.7% EMPLOYED, COMPARABLE, % INTEREST-BEARING NET DEBT/EBITDA, AT MAXIMUM 2.5 1.8 EXCLUDING IFRS 16 IMPACT 31
Slide 32: Sustainability is integrated into our business
SUSTAINABILITY IS INTEGRATED INTO OUR BUSINESS SUSTAINABILITY STRATEGY VISION EXECUTION BY THE BUSINESS DIVISIONS We enable sustainable choices for our customers and Grocery trade drive change throughout the value chain Building and technical trade Car trade FOCUS AREAS Climate and nature PROGRESS M
Slide 33: Focus areas and key actions
FOCUS AREAS AND KEY ACTIONS WE ENABLE SUSTAINABLE CHOICES FOR OUR CUSTOMERS AND DRIVE CHANGE THROUGHOUT THE VALUE CHAIN CLIMATE AND NATURE VALUE CHAIN OUR PEOPLE GOOD GOVERNANCE Reduce emissions in the value chain Ensure sustainability in the value Increase the safety and wellbeing of Commit to the
Slide 34: Kesko listed in sustainability indices
KESKO LISTED IN SUSTAINABILITY INDICES Sustainability indices are key tools for investors to assess the ESG level of corporations. Dow Jones Best-in-Class Indices (World and Europe) v Kesko is the only company in the world to have been on the Global 100 list every year since it was launched in 2005.
Slide 35: Forerunner in trading sector digitalisation
FORERUNNER IN TRADING SECTOR DIGITALISATION Using digitalisation to improve customer experience and make operations more efficient Online and digital sales Data and analytics at the core Digitalisation of stores and Digitalisation increases growing forcefully of business operations processes proceed
Slide 36: Sales via digital channels over €2.2 billion
SALES VIA DIGITAL CHANNELS OVER €2.2 BILLION 36 Q2 2025, rolling 12 months, excl. VAT
Slide 37: Dividend
DIVIDEND Dividend for 2024: €0.90/share, paid in four instalments. Kesko's dividend policy: In the long-term, Kesko aims to distribute a steadily growing dividend of some 60-100% of its comparable earnings per share, taking into account the company’s financial position and strategy. 1.54 1.50 1.43 1
Slide 38: Number of shareholders has grown
NUMBER OF SHAREHOLDERS HAS GROWN ~116,000 REGISTERED SHAREHOLDERS BALANCED OWNERSHIP STRUCTURE 38
Slide 39: Kesko half-year financial report 2025
KESKO HALF-YEAR FINANCIAL REPORT 2025 STEADY PROFIT DEVELOPMENT – TURNAROUND IN CONSTRUCTION CYCLE SLOWER THAN PREVIOUSLY ANTICIPATED Jorma Rauhala President and CEO 22 July 2025
Slide 40: Summary of Q2/2025
SUMMARY OF Q2/2025 • Net sales increased, profit improved by nearly €5 million in comparable terms* • Grocery trade: net sales increased, comparable operating profit decreased Q2/2025 Q2/2024 slightly. Profit improved in chain operations, but decreased in Kespro and Net sales, € million 3,188.8 3,09
Slide 41: Net sales
NET SALES €+95 million € million € million rolling 12 months 41
Slide 42: Operating profit
OPERATING PROFIT Comparable operating profit increased €-1.5 million (€+4.8 million excl. Kesko Senukai) € million € million rolling 12 months Operating 6.7% 3.4% Operating 3.6% 5.8% 5.6% 5.5% 5.5% 5.3% margin margin Comparable figures Q2/2024 figure includes €6.3 million from share of result from K
Slide 43: Return on capital employed
RETURN ON CAPITAL EMPLOYED % rolling 12 months 43 Comparable figures
Slide 44: Financial position
FINANCIAL POSITION Q2/2025 Q2/2024 Cash flow from operating activities, € million 323.9 309 Liquid assets, € million 190.5 354.4 Capital expenditure, € million 317.6 128.4 Interest-bearing net debt excl. lease liabilities, € million 1,346.6 847.3 Interest-bearing net debt / EBITDA (excl. IFRS 16 imp
Slide 45: Capital expenditure
CAPITAL EXPENDITURE Main CAPEX: acquisitions, investments in store sites and the Onnela logistics centre Q2/2025 Q2/2024 Store sites, € million 92.3 68.3 Acquisitions, € million 151.4 - IT, € million 6.5 4.3 Other investments, € million 67.3 55.8 Total, € million 317.6 128.4 45
Slide 46: Expenses
EXPENSES Expenses have increased mainly due to acquisitions – without acquisitions, expenses are up by just 0.6% Q2/2025 Q2/2024 Fixed costs, € million 545.3 531.5 - Employee benefit expenses, € million 233.1 217.9 - Other expenses, € million 172.2 172.5 - Depreciation, € million 139.9 141.1 Cost ra
Slide 47: Grocery trade Q2: stable sales and profit performance
GROCERY TRADE Q2 STABLE SALES AND PROFIT PERFORMANCE 47
Slide 48: Grocery trade net sales
GROCERY TRADE NET SALES €+9 million € million € million rolling 12 months 48
Slide 49: Grocery trade operating profit
GROCERY TRADE OPERATING PROFIT €-3.2 million € million € million rolling 12 months Operating Operating 5.4% 7.2% 7.4% 7.4% 4.9% 6.9% 6.9% 6.7% margin margin 49 Comparable figures
Slide 50: Grocery trade highlights in Q2
GROCERY TRADE HIGHLIGHTS IN Q2 • Net sales increased, comparable operating profit improved in chain operations, but decreased in Kespro and K-Citymarket’s speciality goods trade (non-food) • K Group grocery sales up by 2.0%, partly impacted by the timing of Easter, which fell on April this year and
Slide 51: Kesko's hypermarkets are large urban grocery stores
KESKO'S HYPERMARKETS ARE LARGE URBAN GROCERY STORES • Growth in Finnish grocery trade is the strongest in larger • Each K-Citymarket has a store-specific business idea tailored stores to local customer base, complementing efficient chain • Kesko's K-Citymarket chain currently has 82 stores operation
Slide 52: Extensive programme to revamp K-Citymarket's non-food trade
EXTENSIVE PROGRAMME TO REVAMP K-CITYMARKET'S NON-FOOD TRADE • The objective is to have a more store-specific approach also in non-food sales, and to support the business idea for food trade utilising data • Changes supporting regular convenient shopping, new display solutions • In terms of product c
Slide 53: Building and technical trade Q2: cycle is turning
BUILDING AND TECHNICAL TRADE Q2 CYCLE IS TURNING, BUT PACE OF RECOVERY IS SLOWER THAN PREVIOUSLY ANTICIPATED 53
Slide 54: Building and technical trade net sales
BUILDING AND TECHNICAL TRADE NET SALES €+33 million € million € million rolling 12 months 54
Slide 55: Building and technical trade operating profit
BUILDING AND TECHNICAL TRADE OPERATING PROFIT Comparable operating profit increased €-5.2 million (€+1.1 million excl. Kesko Senukai) € million € million rolling 12 months Operating 0.7% 4.7% 6.2% 3.4% 1.1% 4.1% Operating 3.9% 3.8% margin margin Comparable figures Q2/2024 figure includes €6.3 millio
Slide 56: Building and technical trade highlights in Q2
BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q2 • Division result improved year-on-year excluding the profit impact from Kesko Senukai Q2/2025 Q2/2024 • In building and home improvement trade, comparable sales growth was weaker than anticipated. Due to slow Net sales, € million 1,236.8 1,203.7 recover
Slide 57: Sales of K-Rauta Finland and Onninen Finland
SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales 57
Slide 58: Byggmakker sales in Norway
BYGGMAKKER SALES IN NORWAY Retail and B2B sales 58
Slide 59: Car trade Q2: significant profit improvement
CAR TRADE Q2 SIGNIFICANT PROFIT IMPROVEMENT 59
Slide 60: Car trade net sales
CAR TRADE NET SALES €+53 million € million € million rolling 12 months 60
Slide 61: Car trade operating profit
CAR TRADE OPERATING PROFIT €+6.8 million € million € million rolling 12 months Operating 5.7% 5.0% 6.0% 5.7% 6.1% Operating 6.1% 5.7% 6.0% margin margin 61 Comparable figures
Slide 62: Car trade highlights in Q2
CAR TRADE HIGHLIGHTS IN Q2 K-AUTO, NET SALES • Market demand for new cars still muted, Q2 first registrations of passenger cars and vans up by 0.4%; first registrations of brands represented by Kesko up by 32.6% in Q2 • The updated strategy with focus on three car trade business areas and continuous
Slide 63: Specified profit guidance and outlook for 2025
SPECIFIED PROFIT GUIDANCE AND OUTLOOK FOR 2025 63
Slide 64: Profit guidance for 2025
PROFIT GUIDANCE FOR 2025 Kesko Group’s profit guidance is given for the year 2025, in comparison with the year 2024. Kesko’s operating environment is estimated to improve in 2025, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2025. Kesko est
Slide 65: Outlook for 2025
OUTLOOK FOR 2025 In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network in accordance with Kesko’s
Slide 66: Management and IR contact
MANAGEMENT AND IR CONTACT 66
Slide 67: Kesko Group management board
KESKO GROUP MANAGEMENT BOARD President and CEO Jorma Rauhala EVP, Chief Financial Officer EVP, Human Resources Anu Hämäläinen Matti Mettälä EVP, Brand and Communications EVP, Legal and Sustainability Karoliina Partanen Lasse Luukkainen Grocery trade Building and technical trade Car trade President P
Slide 68: IR contact
IR CONTACT Hanna Jaakkola Vice President, Investor Relations tel.+358 40 5666 070 hanna.jaakkola@kesko.fi 68
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