Slide 1: Stable performance during the slowest quarter of the year
KESKO INTERIM REPORT Q1/2025 STABLE PERFORMANCE DURING THE SLOWEST QUARTER OF THE YEAR Jorma Rauhala President and CEO 29 April 2025
Slide 2: Summary of Q1/2025
SUMMARY OF Q1/2025 • Net sales increased, comparable operating profit decreased Q1/2025 Q1/2024 • Grocery trade: net sales and profit down as anticipated due to the timing of Easter and price programme implementation Net sales, € million 2,827.7 2,759.5 • Building and technical trade: sales picked u
Slide 3: Net sales
NET SALES €+68 million € million € million rolling 12 months 3
Slide 4: Operating profit
OPERATING PROFIT €-3.9 million € million € million rolling 12 months Operating Operating 3.6% 5.8% 6.7% 5.6% 3.4% 5.5% 5.4% margin margin 4 Comparable figures
Slide 5: Return on capital employed
RETURN ON CAPITAL EMPLOYED % rolling 12 months 5 Comparable figures
Slide 6: Financial position
FINANCIAL POSITION Seasonal increase in working capital impacted cash flow Q1/2025 Q1/2024 • Factors impacting cash flow from operating activities Cash flow from operating activities, € million -24.5 112.6 • Building and technical trade: preparing for upcoming high season Liquid assets, € million 14
Slide 7: Capital expenditure
CAPITAL EXPENDITURE Main CAPEX: Roslev acquisition, Onnela logistics centre and investments in store sites Q1/2025 Q1/2024 Store sites, € million 66.2 111.3 Acquisitions, € million 34.8 170.0 IT, € million 3.1 3.6 Other investments, € million 33.9 44.2 Total, € million 138.0 329.0 7
Slide 8: Expenses
EXPENSES Expenses up mainly due to acquisitions Q1/2025 Q1/2024 Fixed costs, € million 529.6 507.1 - Employee benefit expenses, € million 223.1 204.8 - Other expenses, € million 165.3 162.8 - Depreciation, € million 141.2 139.4 Cost ratio, % 18.7 18.4 8 Figures excluding items affecting comparabilit
Slide 9: Expected profit impact from the timing of Easter and price investments
GROCERY TRADE Q1 EXPECTED PROFIT IMPACT FROM THE TIMING OF EASTER AND PRICE INVESTMENTS 9
Slide 10: Grocery trade net sales
GROCERY TRADE NET SALES €-29 million € million € million rolling 12 months 10
Slide 11: Grocery trade operating profit
GROCERY TRADE OPERATING PROFIT €-9.7 million € million € million rolling 12 months Operating Operating 5.4% 7.2% 7.4% 7.4% 4.9% margin 6.9% 6.7% margin 11 Comparable figures
Slide 12: Grocery trade highlights in Q1
GROCERY TRADE HIGHLIGHTS IN Q1 • Sales and profit impacted especially by the timing of Easter – the second most important sales season for the division – which fell on April this year and on March in 2024 • K Group grocery sales down by 1.4% • Kespro’s net sales down by 0.5%, exceeding market growth
Slide 13: Aiming for a market share turnaround in grocery trade
AIMING FOR A MARKET SHARE TURNAROUND IN GROCERY TRADE • The decline in K Group’s market share slowed down in 2024 • According to the NielsenIQ Grocery Shop Directory, K Group’s market share in 2024 was 33.7% (2023: 34.3%); market share in online grocery above 40% • Withdrawal from the Neste K chain
Slide 14: Market share turnaround in grocery trade: quality x price x network
MARKET SHARE TURNAROUND IN GROCERY TRADE: QUALITY x PRICE x NETWORK IMPROVING QUALITY: IMPLEMENTING PRICE PROGRAMME: INVESTMENTS IN NETWORK: • Further refining store-specific • Continuously affordable products: • 2024–2025: 30 new store openings, business ideas prices cut on 1,200 everyday staples 9
Slide 15: Pick-up in building and home improvement trade underpinned sales and profit
BUILDING AND TECHNICAL TRADE Q1 PICK-UP IN BUILDING AND HOME IMPROVEMENT TRADE UNDERPINNED SALES AND PROFIT 15
Slide 16: Building and technical trade net sales
BUILDING AND TECHNICAL TRADE NET SALES €+69 million € million € million rolling 12 months 16
Slide 17: Building and technical trade operating profit
BUILDING AND TECHNICAL TRADE OPERATING PROFIT €+4.9 million € million € million rolling 12 months Operating 0.7% 4.7% 6.2% 3.4% 1.1% Operating 3.9% 3.9% margin margin 17 Comparable figures
Slide 18: Building and technical trade highlights in Q1
BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q1 • Construction cycle turning, demand has grown stronger especially in building and home improvement trade: Q1/2025 Q1/2024 • Growth in K-Rauta sales in Finland driven by B2B. Especially sales of heavy construction materials Net sales, € million 1,033.1 9
Slide 19: Sales of K-Rauta Finland and Onninen Finland
SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales 19
Slide 20: Byggmakker sales in Norway
BYGGMAKKER SALES IN NORWAY Retail and B2B sales 20
Slide 21: Strong position in different areas of car trade supported profit development
CAR TRADE Q1 STRONG POSITION IN DIFFERENT AREAS OF CAR TRADE SUPPORTED PROFIT DEVELOPMENT 21
Slide 22: Car trade net sales
CAR TRADE NET SALES €+28 million € million € million rolling 12 months 22
Slide 23: Car trade operating profit
CAR TRADE OPERATING PROFIT €+1.5 million € million € million rolling 12 months Operating 5.7% 5.0% 6.0% 5.7% Operating 6.1% 5.7% 5.7% margin margin 23 Comparable figures
Slide 24: Car trade highlights in Q1
CAR TRADE HIGHLIGHTS IN Q1 K-AUTO, NET SALES • Market demand for new cars muted, Q1 first registrations of passenger cars and vans down by 7.0%; first registrations of brands represented by Kesko up by 15.1% in Q1 • Net sales and comparable operating profit grew markedly despite the challenging mark
Slide 25: Profit guidance and outlook for 2025 unchanged
PROFIT GUIDANCE AND OUTLOOK FOR 2025 UNCHANGED 25
Slide 26: Profit guidance for 2025
PROFIT GUIDANCE FOR 2025 Kesko Group’s profit guidance is given for the year 2025, in comparison with the year 2024. Kesko’s operating environment is estimated to improve in 2025, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2025. Kesko est
Slide 27: Outlook for 2025
OUTLOOK FOR 2025 In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network in accordance with Kesko’s
Slide 28: Al
Al