Slide 1: Interim report January-September 2014
Interim report January-September 2014 22 October 2014 CFO Jukka Erlund
Slide 2: Kesko's profitability at the previous year's level
Kesko’s profitability at the previous year’s level • Kesko’s net sales were €6.8bn, change -2.2% • Operating profit excl. non-recurring items was €171m (€172m) and return on capital employed excl. non-recurring items was 10.0% (9.7%) – Profitability remained at a good level in the food trade and the
Slide 3: Consumers' expectations for own finances
Consumers’ expectations for own finances Own finances in 12 months 16 Expectations for own 14 finances Expectation, 21st century 12 average 10 8 6 4 2 0 1/00 7/00 1/01 7/01 1/02 7/02 1/03 7/03 1/04 7/04 1/05 7/05 1/06 7/06 1/07 7/07 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/
Slide 4: Profit for 1-9/2014
Profit for 1-9/2014 1-9/2014 1-9/2013 Net sales, €m 6,804 6,953 Fixed costs excl. non-recurring items, €m 1,284 1,300 Operating profit excl. non-recurring items, 171 172 €m Non-recurring items, €m -51 8 Net financial items, €m -1 -5 Income tax, €m 31 52 Net profit for the period, €m 87 122 4 Q3 2014
Slide 5: Financial position
Financial position 1-9/2014 1-9/2013 1-12/2013 Equity ratio, % 54.2 52.9 54.5 Liquid assets, €m 503 537 681 Capital expenditure, €m 151 125 171 Interest-bearing net liabilities, €m -3 31 -126 Inventories, €m 803 776 797 5 Q3 2014 Media and analyst briefing 22.10.2014
Slide 6: Net sales by division (€m)
Net sales by division (€m) 1-9/2014 Change 7-9/2014 Change Food trade 3,197 -1.3% 1,085 -1.0% Home and speciality 923 -9.3% 323 -8.1% goods trade Building and home 2,013 +0.1% 696 -1.9% improvement trade Car and machinery 796 -1.9% 240 -7.7% trade Group total 6,804 -2.2% 2,304 -2.9% 6 Q3 2014 Media
Slide 7: Anttila accounts for less than 4% of Kesko's net sales
Anttila accounts for less than 4% of Kesko’s net sales Others Intersport 195 Home and speciality goods trade 43 K-citymarket Indoor 177 605 non-food 1,362 (15%) 346 Anttila 4,345 Food trade (47%) 2,609 Building and home (28%) improvement trade 1,022 (11%) Car and machinery trade Net sales, moving 12
Slide 8: Operating profit excl. non-recurring items by quarter
Operating profit excl. non-recurring items by quarter €m 100 83.6 84.0 80 69.8 67.6 66.8 60 40 18.6 19.1 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 8 Q3 2014 Media and analyst briefing 22.10.2014
Slide 9: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) 1-9/2014 Change 7-9/2014 Change Food trade 155.7 0.7 56.3 0.3 Home and speciality -48.3 -18.4 -7.4 -5.2 goods trade Building and home 45.8 19.0 29.6 5.7 improvement trade Car and machinery trade 27.8 -2.8 8.7 -1.1 Group total 170.8 -1.2 84.
Slide 10: Year-on-year change in fixed costs
Year-on-year change in fixed costs excluding non-recurring items 12% 10.3% 10% 7.5% 8.0% 8% 6% 4% 2% 1.2% 0% -2% -1.0% -1.6% -2.0% -1.3% -4% -4.0% -4.5% -4.0% -6% 10 Q3 2014 Media and analyst briefing 22.10.2014
Slide 11: Return on capital employed
Return on capital employed excl. non-recurring items, moving 12 mo % 30 26.1% 25 19.3% 20 15 10.0% 10 6.3% 5 0 -5 -10 -6.6% Food Home and Building and Car and Group total trade speciality home machinery goods trade improvement trade Capital trade employed: €782m €403m €714m €161m €2,373m 11 Q3 2014
Slide 12: In the food trade, profitability at a good level
In the food trade, profitability at a good level • Kesko Food’s net sales were down 1.3% Net sales, €m - Decline in purchasing power is also -1.3% 3500 reflected on food trade 3000 2500 3,239 3,197 - Price increases in the food trade have 2000 stopped 1500 1000 -1.0% - K-food stores’ sales below mar
Slide 13: In the home and speciality goods trade, consumer demand continued to weaken
In the home and speciality goods trade, consumer demand continued to weaken Net sales, €m • Anttila’s financial performance declined and was clearly loss-making 1200 1000 -9.3% - Six department stores have been 800 1,018 923 closed, six will be closed in the first 600 part of 2015 400 -8.1% 200 351
Slide 14: In the building and home improvement trade, market share increased and profitability improved
In the building and home improvement trade, market share increased and profitability improved Net sales, €m 2500 +0.1% • Net sales of the building and home 2000 2,012 2,013 improvement trade at the previous year’s 1500 level, in local currencies net sales were up 1000 -1.9% 3.7% 500 710 696 0 • Mark
Slide 15: New K-ruoka, K-rauta and Intersport stores in Kamenka, St. Petersburg
Kesko opened new K-ruoka, K-rauta and Intersport stores in Kamenka shopping centre, St. Petersburg on 18 September 2014 15 Q3 2014 Media and analyst briefing 22.10.2014
Slide 16: In the car and machinery trade, profitability at a good level
In the car and machinery trade, profitability at a good level, Volkswagen continued as market leader Net sales, €m 1000 • Market share of Audi, Volkswagen and -1.9% 800 Seat 20.7% (20.5%) 811 796 600 400 • Change in VV-Auto’s net sales +2.5% 200 -7.7% - Market performance of new 260 240 0 registrati
Slide 17: Capital expenditure
Capital expenditure €m 60 56 52 50 48 47 41 43 40 35 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 17 Q3 2014 Media and analyst briefing 22.10.2014
Slide 18: Future outlook
Future outlook Estimates of the future outlook for Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (10/2014-9/2015) in comparison with the 12 months preceding the reporting period (10/2013-9/2014). Future prospects
Slide 19: Thank you!
Thank you! 19 Q3 2014 Media and analyst briefing 22.10.2014