Slide 1: Interim report January-June 2013
Interim report January-June 2013 24 July 2013 SVP, CFO Jukka Erlund
Slide 2: Kesko's profitability improved in the first half of the year
Kesko’s profitability improved in the first half of the year • Kesko’s net sales €4.6bn, change -4.2% – Consumer demand declined in all divisions, especially in the department store trade and the building and home improvement trade in Finland • Operating profit excluding non-recurring items €88m (€8
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 Source: S
Slide 4: Profit for 1-6/2013
Profit for 1-6/2013 1-6/2013 1-6/2012 Net sales, €m 4,580 4,778 Net sales, change, % -4.2 +4.4 Fixed costs, €m 885 925 Operating profit excl. non-recurring items, €m 88 82 Net financial items, €m -3 0 Profit before tax, €m 93 82 4 Q2 2013
Slide 5: Financial position
Financial position 1-6/ 1-6/ 1-12/ 2013 2012 2012 Cash flow net of capital 106 -115 -9 expenditure, €m Liquid assets, €m 474 253 489 Interest-bearing net debt, €m 113 310 135 Equity ratio, % 50.5 51.2 52.5 Capital expenditure, €m 90 172 378 5 Q2 2013
Slide 6: Net sales by quarter
Net sales by quarter €m 3000 1.9% -0.9% 2500 10.2% -0.5% -1.6% -6.9% 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 6 Q2 2013
Slide 7: Net sales by division (€m)
Net sales by division (€m) 1-6/2013 Change 4-6/2013 Change Food trade 2,144 +2.0% 1,099 +0.7% Home and speciality 667 -7.6% 322 -8.7% goods trade Building and home 1,302 -7.7% 740 -5.4% improvement trade Car and machinery 551 -12.2% 301 +9.8% trade Group total 4,580 -4.2% 2,420 -1.6% 7 Q2 2013
Slide 8: Operating profit excl. non-recurring items by quarter
Operating profit excl. non-recurring items by quarter €m 100 80 77.4 70.9 69.8 59.4 60 40 22.3 18.6 20 0 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 8 Q2 2013
Slide 9: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) 1-6/2013 Change 4-6/2013 Change Food trade 99.0 25.7 50.8 12.1 Home and speciality -27.8 -14.2 -10.0 -9.3 goods trade Building and home 2.9 -3.3 19.5 4.2 improvement trade Car and machinery 20.8 -5.0 13.0 2.7 trade Group total 88.4 6.7 69.8
Slide 10: Year-on-year change in fixed costs (%), excluding non-recurring items
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% -6% 10 Q2 2013
Slide 11: Return on capital employed
Return on capital employed moving 12 mo, excl. non-recurring items % 25 23.7% 21.5% 20 15 10 9.3% 5 1.1% 1.3% 0 Food Home and Building and Car and Kesko trade speciality home machinery Group goods trade improvement trade trade 11 Q2 2013
Slide 12: In the food trade, sales growth slow, profit improved due to enhancement measures
In the food trade, sales growth slow, profit improved due to enhancement measures Net sales, €m 2400 +2.0% • Kesko Food’s net sales growth +2.0% 2000 2144 1600 2101 - In Finland, the grocery sales of K-food 1200 +0.7% stores increased by +0.2% 800 1091 1099 - In St. Petersburg, the sales and 400 pro
Slide 13: In the home and speciality goods trade, focus on the improvement of department store sales and profit
In the home and speciality goods trade, focus on the improvement of department store sales and profit Net sales, €m • Consumer demand has weakened and 800 -7.6% customer behaviour changed rapidly 600 721 especially in the department store trade 667 400 -8.7% • Profitability negatively impacted by th
Slide 14: In the building and home improvement trade, sales decreased, cost savings supported profit
In the building and home improvement trade, sales decreased, cost savings supported profit performance Net sales, €m 1600 • Market situation in the building and home -7.7% 1411 improvement trade still weak 1200 1302 800 -5.4% • Net sales performance in the building and 782 740 home improvement trade
Slide 15: Volkswagen market leader in the car trade
Volkswagen market leader in the car trade • Market share of Audi, Volkswagen and Net sales, €m Seat increased from the previous year and 800 stood at 21.1% -12.2% 600 627 • VV-Auto’s sales performance -13% 551 400 +9.8% − In the first half of the year, market 200 274 301 performance of the first tim
Slide 16: 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 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 16 Q2 2013
Slide 17: Cash flow net of capital expenditure clearly positive
Cash flow net of capital expenditure clearly positive €m 250 206 200 172 150 100 83 60 47 50 0 -11 -18 -50 -33 -23 -58 -63 -100 -93 -97 -100 -150 17 Q2 2013
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 (7/2013-6/2014) in comparison with the 12 months preceding the reporting period (7/2012-6/2013). Resulting from
Slide 19: Thank you!
Thank you!