Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — FY2012 Earnings Presentation
28 slides from Kesko Oyj Class A's earnings presentation, Feb 5, 2013
Slide 1: Financial statements January-December 2012
Financial statements January-December 2012 5 Feb. 2013 First K-ruoka opened CFO Jukka Erlund in St. Petersburg on 5 Dec. 2012
Slide 2: Kesko's Corporate Management Board from 5 Feb. 2013
Kesko’s Corporate Management Board from 5 Feb. 2013 Minna Kurunsaari Chair Jorma Rauhala Terho Kalliokoski home and speciality goods trade, Matti Halmesmäki food trade building and customer information and President and CEO home improvement trade e-commerce projects Pekka Lahti Arja Talma Jukka Erlu
Slide 3: Appointment of SVP responsible for store sites and investments: Arja Talma
Appointment of SVP responsible for Kesko's store sites and investments and member of Corporate Management Board from 5 Feb. 2013: Arja Talma At the end of 2012, the capital in real estate owned by Kesko was €1.4 billion and lease liabilities were €2.3 billion, and the total area of store sites owned
Slide 4: Appointment of Rautakesko Ltd's President: Terho Kalliokoski
Appointment of Rautakesko Ltd’s President and member of Corporate Management Board responsible for the building and home improvement trade from 5 Feb. 2013: Terho Kalliokoski In 2012, the net sales of the building and home improvement trade were €2,827 million. Rautakesko is the fifth largest buildi
Slide 5: Appointment of Kesko Food's President: Jorma Rauhala
Appointment of Kesko Food’s President and member of Corporate Management Board responsible for the food trade from 5 Feb. 2013: Jorma Rauhala In 2012, the net sales of the food trade were €4,311 million. More than 900 K-food retailers with their personnel are responsible for serving K-food store cus
Slide 6: Kesko's customer and profitability programmes are progressing
Kesko’s customer and profitability programmes are progressing • Kesko’s net sales €9.7 bn, up 2.4% – Sales growth rate fell towards the year end – Position of e-commerce and online stores continued to strengthen • Operating profit excl. non-recurring items €235 million (€279 million) – Profit was af
Slide 7: Kesko's profitability programme is progressing as planned
Kesko’s profitability programme is progressing as planned • The profitability programme is aimed to ensure competitiveness and to improve the return on capital employed • The profitability programme includes significant measures – To increase sales • chains’ customer programmes and competitive advan
Slide 8: Progress of the €100 million cost saving programme
Progress of the €100 million cost saving programme • Savings are applied to all divisions and all operating countries – Most of the €100 million cost savings will be achieved in 2013 – Measures taken to enhance personnel costs have been implemented as announced previously, the reduction of labour in
Slide 9: Net sales by division (M€)
Net sales by division (M€) 2012 Change Q4/2012 Change Food trade 4,311 + 3% 1,132 + 2% Home and speciality goods trade 1,603 + 2% 487 - 3% Building and home improvement trade 2,827 + 4% 657 0% Car and machinery trade 1,114 - 5% 227 - 14% Group total 9,686 + 2% 2,459 - 1% 9 Q4 2012 Media and analyst
Slide 10: Operating profit excl. non-recurring items January-December (2001–2012)
Operating profit excl. non-recurring items January-December (2001–2012) 350 325.1 300 277.5 268.1 278.9 250 234.7 212.5 219.6 201.1 200 136.1 155.4 150 88.8 100 65.3 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10 Q4 2012 Media and analyst briefing 5.2.2013
Slide 11: Operating profit excl. non-recurring items by division (M€)
Operating profit excl. non-recurring items by division (M€) 2012 Change Q4/2012 Change Food trade 168 -4 45 6 Home and speciality goods trade 20 -17 32 -1 Building and home improvement trade 14 - 13 -11 -6 Car and machinery trade 42 - 10 5 -2 Group total 235 - 44 72 0 11 Q4 2012 Media and analyst br
Slide 12: 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 71.8 60.7 20 2.8 34.9 23.6 0 -1.0 -1.7 -19.1 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 Operating profit excl. non-recurring items Non-recurring items 12 Q4 2012 Media and analyst briefing 5.2.2013
Slide 13: Group's profit before tax 1-12/2012 (M€)
Group’s profit before tax 1-12/2012 (M€) 300 282.1 1.7 250 215.2 200 150 278.9 234.7 100 50 1.5 0 -1.5 -18.0 -50 1-12/2011 1-12/2012 Net financial items and income from associates excl. non-recurring items Operating profit excl. non-recurring items Non-recurring items 13 Q4 2012 Media and analyst br
Slide 14: Return on capital employed in 2012
Return on capital employed in 2012 excluding non-recurring items % 25 22.2% 22.5% 20 15 10 9.3% 5 3.9% 1.8% 0 Food Home and Building and Car and Kesko Group trade speciality home machinery goods trade improvement trade trade 14 Q4 2012 Media and analyst briefing 5.2.2013
Slide 15: Improved return on capital as key objective
Improved return on capital as key objective 14.6% 14.6% 2,564 2,574 2,588 2,600 14.0% 14.2% 15.0% 2,500 13.0% 13.1% 2,439 2,400 10.7% 2,282 2,300 11.9% 10.4% 9.5% 9.3% 2,200 2,144 10.0% 8.5% 2,092 2,100 1,965 1,990 2,000 1,916 1,897 1,900 1,878 1,800 5.0% 1,700 100 0 0.0% Q1/2010 Q2/2010 Q3/2010 Q4/
Slide 16: Food trade, year of good profitability
Food trade, year of good profitability • Growth rate of K-food stores’ grocery sales Net sales 1-12, M€ did not reach the targets, growth 3.9% 5000 4,311 +3.1% 4,182 - Sales of Pirkka products were up 12% 4000 3000 • Operating profit nearly matched the 2000 previous year’s level regardless of the 10
Slide 17: Home and speciality goods trade, emphasis on multi-channel trade
Home and speciality goods trade, emphasis on multi-channel trade Net sales 1-12, M€ • The sales of K-citymarket, Intersport and Budget Sport, as well as Asko and Sotka 2000 increased and profitability was good 1,564 1,603 +2.5% 1500 +95.7% • The sales and profitability of Musta Pörssi, 1000 Anttila
Slide 18: Building and home improvement trade, focus on profitability improvement
Building and home improvement trade, focus on profitability improvement Net sales 1-12, M€ • Market growth rate in the building and 2,827 +4.1% home improvement trade fell after the 3000 2,716 2500 strong growth in the first part of the year 2000 - Especially in the Nordic countries, the +7.8% 1500
Slide 19: Car trade, strong profit and market position
Car trade, strong profit and market position Net sales 1-12, M€ • VV-Auto’s sales performance in January- 1,174 1,114 -5.1% 1200 December -6.9% owing to market trend +4.7% 1000 800 • Market share of Audi, Volkswagen and -6.2% Seat passenger cars and vans 20.2% 600 400 - Volkswagen the best selling p
Slide 20: Capital expenditures will be adjusted to annual level of €200-300 million
Capital expenditures will be adjusted to annual level of €200-300 million 500 454 450 425 400 378 350 340 325 300 282 250 228 192 198 200 150 100 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 20 Q4 2012 Media and analyst briefing 5.2.2013
Slide 21: Inventory turnover has improved
Inventory turnover has improved 950 €-54 m 909 900 868 869 850 838 814 796 793 800 780 757 750 700 684 688 677 650 50 0 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Inventories 21 Q4 2012 Media and analyst briefing 5.2.2013
Slide 22: Cash flow from operating activities exceeded capital expenditures
Cash flow from operating activities exceeded capital expenditures during the latter part of 2012 200 172 150 100 83 58 47 50 0 -11 -17 -50 -23 -33 -58 -63 -100 -93 -97 Total cash flow before financing 22 Q4 2012 Media and analyst briefing 5.2.2013
Slide 23: Interest bearing net debt at a low level
Interest bearing net debt at a low level 394 370 400 300 279 229 223 200 100 70 64 0 -100 -33 -200 -154 -135 -300 -284 -310 -400 Net debt 23 Q4 2012 Media and analyst briefing 5.2.2013
Slide 24: Equity ratio, %
Equity ratio, % 60 50 40 30 53.9 52.5 20 10 0 12/2011 12/2012 24 Q4 2012 Media and analyst briefing 5.2.2013
Slide 25: Market capitalisation 31.12. (M€)
Market capitalisation 31.12. (M€) 3000 2,506 2,418 2000 1,719 1,644 1000 €24.77 /share 788 774 €24.39 /share 0 2011 2012 A share B share 25 Q4 2012 Media and analyst briefing 5.2.2013
Slide 26: Earnings/share € and dividend/share €
Earnings/share € and dividend/share € 3,0 2,5 2.25 2.08 2,0 0.80 0.29 1.85 0.01 1.31 1,5 1.28 73% 65% 80% 69% 127% 1,0 0.57 1.78 1.84 1.44 1.50 1.30 1,20* 1.20 0,5 1.00 0.71 0.90 0,0 -0.19 -0,5 2008 2009 2010 2011 2012 Earnings/share, Non-recurring items Dividend *Board’s proposal to the AGM basic E
Slide 27: 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 (1/2013-12/2013) in comparison with the 12 months preceding the reporting period (1/2012-12/2012). Resulting fr
Slide 28: Thank you!
Thank you! New Golf 4MOTION introduced in Kitzbühel, Austria on 30 Jan. 2013 28 Q4 2012 Media and analyst briefing 5.2.2013