Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Presentation (May 2026)
39 slides from Kesko Oyj Class A's investor presentation, May 2026
Slide 1: Solid execution of our growth strategy continues in all three divisions
SOLID EXECUTION OF OUR GROWTH STRATEGY CONTINUES IN ALL THREE DIVISIONS MAY 2026 HANNA JAAKKOLA, VP IR JARKKO KARJALAINEN, VP GROUP TREASURY AND M&A
Slide 2: K Group today
K GROUP TODAY 39,000 EMPLOYEES, 1,800 STORES AND 3 DIVISIONS: 1,100 RETAILERS GROCERY TRADE KESKO’S MARKET CAP OVER €8.0 BN 8 OPERATING COUNTRIES BUILDING AND TECHNICAL TRADE ~125,000 SHAREHOLDERS CAR TRADE RETAIL AND B2B SALES 2 MILLION DAILY ~ €16 BILLION CUSTOMER ENCOUNTERS 2
Slide 3: Kesko segment key figures
KESKO SEGMENT KEY FIGURES NET SALES OPERATING PROFIT Car trade Car trade €1,382m €81.3m Grocery trade 5.9% €6,519m Grocery trade Building and €423.7m technical €661.4m 6.5% €12,676m trade 5.2% €181.4m Building and technical 3.8% trade €4,800m 3 Q1/2026, rolling 12 months, division figures include co
Slide 4: A good performance despite the challenging cycle
A GOOD PERFORMANCE DESPITE THE CHALLENGING CYCLE NET SALES OPERATING PROFIT € million € million 13,000 12,676 815,2 12,475 800 775,5 Profit guidance 12,000 11,809 11,784 11,920 650-750 11,300 712.0 11,000 700 661,4 650,1 654,9 10,243 10,000 600 568,0 9,000 500 8,000 7,000 400 2020 2021 2022 2023 202
Slide 5: Kesko's growth strategy
KESKO’S GROWTH STRATEGY VISION THE LEADING AND MOST ATTRACTIVE TRADING SECTOR 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
Slide 6: Kesko listed in sustainability indices
KESKO LISTED IN SUSTAINABILITY INDICES Sustainability indices are key tools for investors to assess the ESG level of Dow Jones Best-in-Class corporations. 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 7: Grocery trade Q1: Market share gained, result strong
Grocery trade Q1 Market share gained, result strong 7
Slide 8: Grocery trade division in brief
GROCERY TRADE GROCERY TRADE DIVISION IN BRIEF MARKET SHARE IN 1,100 stores 6,300 employees The leading foodservice 2025 Almost 800 K Group grocery provider in Finland (NIELSEN) stores offer online grocery services 860 49.2% market share K-retailers NET SALES Rolling 12 mo 2025 2024 2023 KCM non-food
Slide 9: Grocery trade: 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 QUALITY: Focusing on store-specific business ideas to strengthen chosen competitive advantages and raising the level of stores. • DEVELOPING STORE SITE NETWORK: Targeted investments
Slide 10: Our recipe for market share growth: Quality x Price x Network
GROCERY TRADE # Our recipe for market share growth: Quality x Price x Network 10
Slide 11: Quality x Price x Network: strategy working
GROCERY TRADE QUALITY x PRICE x NETWORK: STRATEGY WORKING QUALITY UPTURN IN MARKET SHARE • Significant joint efforts with the retailers to raise quality levels IN JULY 2025 • Store-specific business ideas at the core, special focus on fruit and vegetables, bread, and non-food • Digital reach risen t
Slide 12: Grocery trade highlights in Q1
GROCERY TRADE GROCERY TRADE HIGHLIGHTS IN Q1 • Division net sales increased and comparable operating profit improved. Most of Easter wholesale took place in March, versus April in 2025 • Total grocery market grew by approximately 2.9% • K Group grocery sales were up by 4.4% • K Group grocery stores
Slide 13: Building and technical trade Q1: Sales grew and result improved
Building and technical trade Q1 Sales grew and result improved 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: Building and technical trade: 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 % EBIT MARGIN IS STILL VALID. • SWEDEN AND NORWAY: Improving business perfo
Slide 16: Nationwide building and home improvement trade network in Denmark
BUILDING AND TECHNICAL TRADE NATIONWIDE BUILDING AND HOME IMPROVEMENT TRADE NETWORK IN DENMARK KESKO IN DENMARK • Kesko expanded its operations to Denmark by acquiring the builders' merchant chain Davidsen on 31 Jan. 2024, Kesko holds 90% of shares in Davidsen a • Three additional companies added to
Slide 17: Nearly 60% of sales come from outside Finland
BUILDING AND TECHNICAL TRADE NEARLY 60% OF SALES COME FROM OUTSIDE FINLAND Net sales in 2025, € million FINLAND 900 NORWAY 1 122 520 SWEDEN 503 POLAND AND THE 343 BALTIC COUNTRIES 134 Poland 378 Baltics 154 DENMARK 709 17
Slide 18: Profit improvement in 2025 came from countries outside Finland
BUILDING AND TECHNICAL TRADE PROFIT IMPROVEMENT IN 2025 CAME FROM COUNTRIES OUTSIDE FINLAND FINLAND SWEDEN NORWAY DENMARK POLAND AND THE BALTICS € million 20 21 22 23 24 25 20 21 22 23 24 25 20 21 22 23 24 25 24 25 20 21 22 23 24 25 Both K-Rauta and Closure of K-Rauta stores Significant profit Stron
Slide 19: Building and technical trade highlights in Q1
BUILDING AND TECHNICAL TRADE BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q1 Q1/2026 Q1/2025 • Division net sales increased and profit improved, sales margin also improved • Market demand continued to be muted, especially in new housing construction Net sales, € million 1,147.2 1,033.1 Technical trade
Slide 20: Sales of K-Rauta Finland and Onninen Finland
BUILDING AND TECHNICAL TRADE SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales development, % Onninen Q1 sales: +11.0% K-Rauta Q1 sales: -1,4% Competitors, total: -1.5% Competitors, total: -0.6% Sources: Talteka and STK Source: RaSi 2 0
Slide 21: 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 7.1% 6 Kesko 4 Kesko 3.8% 2 2.7% 0 Time 2019 2021, 2022 2025 21
Slide 22: Car trade Q1: Good sales development driven by used cars
Car trade Q1 Good sales development driven by used cars
Slide 23: Car trade in brief
CAR TRADE CAR TRADE IN BRIEF K-Auto is the leading and most interesting automotive company in Finland Rolling 12 2025 2024 2023 mo 3/2026 Importing and sales of attractive and high-quality new cars. Net sales, € million 1,382 1,365 1,209 1,262 Significant multi-brand used car sales in Finland. Opera
Slide 24: Car trade: focus on performing better than the market in all businesses
CAR TRADE CAR TRADE: FOCUS ON PERFORMING BETTER THAN THE MARKET IN ALL BUSINESSES KEY ACTIONS: WINNING THE MARKET IN ALL BUSINESSES K-AUTO, NET SALES • CONTINUING WITH GROWTH STRATEGY: Major turnaround and continuous development form a robust foundation for the strategy period. • MAINTAINING THE BAL
Slide 25: Car trade highlights in Q1
CAR TRADE CAR TRADE HIGHLIGHTS IN Q1 • Division net sales increased and comparable operating profit decreased, due to the increase in the share of used car sales, where sales margins are lower than in new car sales • Market demand for new cars still muted, Q1 first registrations of passenger cars an
Slide 26: Potential impacts of the Middle Eastern conflict, profit guidance and outlook
POTENTIAL IMPACTS OF THE MIDDLE EASTERN CONFLICT PROFIT GUIDANCE AND OUTLOOK 26
Slide 27: Potential impacts of the Middle Eastern conflict on Kesko in Q2/2026
POTENTIAL IMPACTS OF THE MIDDLE EASTERN CONFLICT ON KESKO IN Q2/2026 No significant impacts in the short term – a prolonged crisis could weaken consumer confidence, purchasing power and corporate investments, and increase costs GROCERY TRADE BUILDING AND TECHNICAL CAR TRADE TRADE • Rise in inbound p
Slide 28: Profit guidance for 2026
Kesko Group’s profit guidance is given for the year 2026, in comparison with the year 2025. Kesko’s operating environment is PROFIT estimated to improve in 2026, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to GUIDANCE improve in 2026. Kesko estimates th
Slide 29: Outlook for 2026
OUTLOOK FOR 2026 The operating environment for Kesko is estimated to improve in 2026 in all divisions and all operating countries. Kesko’s net sales and comparable operating profit are also estimated to improve in 2026 in all divisions and all operating countries. In grocery trade, B2C trade is esti
Slide 30: Financials
FINANCIALS 30
Slide 31: Kesko's financial targets
KESKO’S FINANCIAL TARGETS TARGET Rolling 12 mo 3/2026 OPERATING MARGIN, OVER 6% 5.2% COMPARABLE RETURN ON CAPITAL OVER 14.5% 10.2% EMPLOYED, COMPARABLE, % INTEREST-BEARING NET DEBT/EBITDA, AT MAXIMUM 2.5 1.9 EXCLUDING IFRS 16 IMPACT DIVIDEND POLICY In the long-term, Kesko aims to distribute a steadi
Slide 32: Return on capital employed
RETURN ON CAPITAL EMPLOYED % rolling 12 months 32 Comparable figures
Slide 33: Financial position
FINANCIAL POSITION Good cash flow from operating activities, net debt has increased due to capital expenditure Q1/2026 Q1/2025 Cash flow from operating activities, € million 77.7 -24.5 Liquid assets, € million 169.3 147.5 Capital expenditure, € million 113.5 138.0 Interest-bearing net debt excl. lea
Slide 34: Focus on operational efficiency and productivity
FOCUS ON OPERATIONAL EFFICIENCY AND PRODUCTIVITY OPERATING EXPENSES COST RATIO, ROLLING 12 MONTHS, % Q1/2026, rolling 12 months €2,192.3m Comparable, excl. non-recurring items 34 Incl. acquisitions
Slide 35: Investing in future
INVESTING IN FUTURE CAPITAL EXPENDITURE, € MILLION * * * 35 * ‘Other’ includes €90.1 million (1-12/2023), €82.8 million (1-12/2024) and €40.4 million (1-12/2025) investments in Onninen and K-Auto’s shared logistics centre “Onnela”
Slide 36: Cash flow from operating activities
CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM OPERATING ACTIVITIES by quarter, rolling 12 months, € million • Key initiatives driving cash flow: • Maintaining good profitability • Well-prioritised CAPEX and project portfolio • Improving working capital efficiency • Focusing on inventory turnove
Slide 37: Financial position
FINANCIAL POSITION NET DEBT/EBITDA – MAXIMUM TARGET LEVEL 2.5 • Net debt/EBITDA 1.9 and gearing 138.7% (31.3.2026) • Our financial target is to stay below 2.5 net debt/EBITDA 1,9 excl. IFRS 16 lease liabilitites 1,6 • Additional net debt fire power close to €500 million • Actions to improve financia
Slide 38: Debt maturity
DEBT MATURITY AS AT 3/2026 507 € MILLION 50 369 45 326 100 6 10 70 257 494 250 184 295 248 251 28 6 8 6 21 2026 2027 2028 2029 2030 2031- Debt to financial institutions Bonds TyEL (pension) loans Debt to K-retailers Other interest-bearing debt RCFs (committed, 3/2026 unused) Other: CPP limits 513M€
Slide 39: 39
39