Slide 1: Interim report January-September 2013
Interim report January-September 2013 24 October 2013 SVP, CFO Jukka Erlund
Slide 2: Kesko's profitability improved
Kesko’s profitability improved • Kesko’s net sales €7.0 billion, change -3.8% – In Finland, consumer demand weakened especially in the home and speciality goods trade and the building and home improvement trade • Operating profit excluding non-recurring items improved to €172 million (€159 million)
Slide 3: Consumers' expectations for own finances
Consumers’ expectations for own finances Own finances after 12 months 16 Expectations for own finances 14 Expectation, 21st century average 12 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 Sour
Slide 4: Profit for 1-9/2013
Profit for 1-9/2013 1-9/2013 1-9/2012 Net sales, €m 6,953 7,227 Fixed costs, €m 1,302 1,359 Operating profit excl. non-recurring items, €m 172 159 Net financial items, €m -5 -2 Profit before tax, €m 174 158 4 Q3 2013
Slide 5: Financial position strengthened
Financial position strengthened 1-9/ 1-9/ 1-12/ 2013 2012 2012 Cash flow 186 -69 -9 after investing activities, €m Capital expenditure, €m 125 274 378 Equity ratio, % 52.9 51.3 52.5 Interest-bearing net debt, €m 31 284 135 Liquid assets, €m 537 356 489 Inventories, €m 776 838 814 5 Q3 2013
Slide 6: Net sales by quarter
Net sales by quarter €m 3000 -0.5% 1.9% -0.9% -1.6% -3.1% 2500 10.2% -6.9% 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 6 Q3 2013
Slide 7: Net sales by division (€m)
Net sales by division (€m) Jan- Sep/ Change Q3/2013 Change 2013 Food trade 3,239 +1.9% 1,095 +1.6% Home and speciality 1,018 -8.8% 351 -10.9% goods trade Building and home 2,012 -7.3% 710 -6.4% improvement trade Car and machinery 811 -8.5% 260 +0.3% trade Group total 6,953 -3.8% 2,374 -3.1% 7 Q3 201
Slide 8: Operating profit excl. non-recurring items by quarter
Operating profit excl. non-recurring items by quarter €m 100 83.6 80 77.4 70.9 69.8 59.4 60 40 22.3 18.6 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 8 Q3 2013
Slide 9: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) Jan-Sep/ Change Q3/2013 Change 2013 Food trade 155.0 32.3 56.0 6.7 Home and speciality -29.9 -17.2 -2.2 -3.0 goods trade Building and home 26.8 2.7 23.9 6.0 improvement trade Car and machinery 30.6 -6.7 9.8 -1.6 trade Group total 172.0 12.9
Slide 10: Year-on-year change in fixed costs
Year-on-year change in fixed costs excluding non-recurring items 12% 10.3% 10% 8.8% 7.9% 7.5% 8.0% 8% 6.7% 6.3% 6% 4% 2% 1.2% 0% -2% -4% -4.0% -4.5% -4.0% -6% 10 Q3 2013
Slide 11: In the food trade, enhancement measures increased profit
In the food trade, enhancement measures increased profit Net sales, €m 3500 +1.9% • Kesko Food’s net sales growth +1.9% 3000 3,179 3,239 - K-food stores’ grocery sales at the 2500 level of the previous year 2000 1500 +1.6% - Sales and profitability of Kespro and 1000 1,078 1,095 food stores in Russi
Slide 12: In the home and speciality goods trade, consumer demand clearly weakened
In the home and speciality goods trade, consumer demand clearly weakened • Consumer demand weakened and Net sales, €m customer behaviour changed rapidly 1200 -8.8% especially in the department store 1000 1,116 800 1,018 trade 600 400 -10.9% • Sales and profitability of Intersport and 200 395 351 Bud
Slide 13: In the building and home improvement trade, market situation weakened
In the building and home improvement trade, market situation weakened Net sales, €m • Weak market situation especially in 2500 -7.3% Finland and Russia 2000 2,170 2,012 1500 • Net sales performance of the building 1000 -6.4% and home improvement trade -7.3% 500 759 710 - Excluding retailer changes i
Slide 14: Volkswagen continued as the market leader
Volkswagen continued as the market leader Net sales, €m 1000 • Market share of Audi, Volkswagen -8.5% and Seat at the previous year’s level 800 887 811 of 20.5% 600 400 +0.3% • VV-Auto’s sales performance -8.6%, 200 259 260 return on capital remained at an 0 7-9/12 7-9/13 1-9/12 1-9/13 excellent lev
Slide 15: Capital expenditure €200-300m at annual level
Capital expenditure €200-300m at annual level €m 120 104 103 104 100 80 68 60 48 41 35 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 15 Q3 2013
Slide 16: 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 (10/2013-9/2014) in comparison with the 12 months preceding the reporting period (10/2012-9/2013). Resulting fr
Slide 17: Thank you!
Thank you!