Slide 1: Financial statements January-December 2013
Financial statements January-December 2013 4 Feb. 2014 CFO Jukka Erlund
Slide 2: Kesko’s profit up on the previous year
Kesko’s profit up on the previous year • Kesko’s net sales €9.3 billion, change -3.8% • Profit improved clearly on previous year – Net profit €185 million, increased by €49 million – The savings measures of the profitability programme were implemented in all divisions, cost savings €100 million – Op
Slide 3: Year 2013
Year 2013 • In the food trade, the enhancement measures had a significant positive impact on profit (€+36 million), but sales were weaker than market performance. The sales of K-ruoka stores in St. Petersburg were clearly better than planned. • In the home and speciality goods trade, the increase of
Slide 4: 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 1/14
Slide 5: Profit for 1-12/2013
Profit for 1-12/2013 1-12/2013 1-12/2012 Net sales, €m 9,315 9,686 Fixed costs, €m 1,767 1,854 Operating profit excl. non-recurring items, 239 230 €m Non-recurring items, €m 10 -18 Net financial items, €m -6 -1 Income tax, €m -58 -75 Net profit for the period, €m 185 136 5 Q4 2013
Slide 6: Financial position strengthened
Financial position strengthened 1-12/2013 1-12/2012 Cash flow after investing activities, €m 262 -9 Capital expenditure, €m 171 378 Equity ratio, % 54.5 52.5 Interest-bearing net debt, €m -126 135 Liquid assets, €m 681 489 Inventories, €m 797 814 6 Q4 2013
Slide 7: Net sales by division (€m)
Net sales by division (€m) 1-12/2013 Change Q4/2013 Change Food trade 4,387 +1.8% 1,148 +1.4% Home and speciality 1,457 -9.1% 439 -9.9% goods trade Building and home 2,607 -7.8% 596 -9.4% improvement trade Car and machinery 1,037 -6.9% 226 -0.4% trade Group total 9,315 -3.8% 2,362 -3.9% 7 Q4 2013
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 66.8 59.4 60 61.9 40 22.3 18.6 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Kesko Pension Fund surplus asset return and staff cost provisions €9 million 8 Q4 2013
Slide 9: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) 1-12/2013 Change Q4/2013 Change Food trade 203.3 35.8 48.3 3.5 Home and speciality -8.3 -27.9 21.6 -10.7 goods trade Building and home 25.7 12.4 -1.1 9.8 improvement trade Car and machinery 33.9 -8.0 3.3 -1.3 trade Group total 238.8 8.8 66.
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% 8% 7.9% 7.5% 8.0% 6.3% 6.7% 6% 4% 2% 1.2% 0% -2% -2.0% -4% -4.0% -4.5% -4.0% -6% 10 Q4 2013
Slide 11: Return on capital employed
Return on capital employed excl. non-recurring items % 25 24.8% 21.1% 20 15 9.8% 10 5 3.5% 0 -1.9% -5 Food Home and Building and Car and Group total trade speciality goods home machinery trade trade improvement trade 821 €m* 445 €m* 732 €m* 161 €m* 2,438 €m* *Capital employed, cumulative average 11
Slide 12: In the food trade, enhancement measures increased profit
In the food trade, enhancement measures increased profit • Kesko Food’s net sales increased by Net sales, €m +1.8% 5000 +1.8% - Sales of K-food stores weaker than 4000 4311 4387 market performance 3000 - Sales and profitability of grocery 2000 +1.4% stores in Russia better than expected 1000 - Kespr
Slide 13: In home and speciality goods trade, sales declined in department stores
In home and speciality goods trade, sales declined in department stores Net sales, €m • K-citymarket home and speciality goods 2000 and Intersport Finland as well as Asko and 1500 -9.1% Sotka had profits at a good level 1603 • Weakened demand and the e-commerce 1457 1000 revolution affected especial
Slide 14: Profitability improved in the building and home improvement trade
Profitability improved in the building and home improvement trade Net sales, €m 3000 -7.8% • The trend in construction activity remained 2500 2827 weak in Rautakesko’s operating area 2607 2000 1500 • In terms of local currencies and excluding 1000 retailer changes in Norway, net sales were -9.4% 500
Slide 15: Volkswagen continued as the market leader
Volkswagen continued as the market leader Net sales, €m 1200 -6.9% • The market share of Audi, Volkswagen and 1000 1114 Seat grew to 20.6% (20.2%) 1037 800 600 • The sales development of VV-Auto -5.7%, 400 -0.4% return on capital remained at an excellent 200 0 227 226 level due to the adjustment of
Slide 16: Capital expenditure was prioritised
Capital expenditure was prioritised €m 120 104 103 104 100 80 68 60 48 47 41 35 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 16 Q4 2013
Slide 17: Earnings/share and dividend
Earnings/share and dividend € 2,5 2.24 2.08 2,0 0.29 1.85 0.80 0.01 1.75 0.07 Effective 1,5 1.27 83% dividend yield 1.28 73% 65% 2008 5.6% 82% 69% 2009 3.9% 127% 1,0 0.57 1.84 2010 3.7% 1.78 1.68 1.44 1.47 1.40* 2011 4.6% 0,5 1.30 1.20 1.20 2012 4.8% 1.00 0.71 0.90 2013 5.2% 0,0 -0.19 -0,5 2008 2009
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 (1/2014-12/2014) in comparison with the 12 months preceding the reporting period (1/2013-12/2013). Future prosp
Slide 19: Thank you!
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