Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Shareholder Meeting (April 2021)
28 slides from Kesko Oyj Class A's shareholder meeting presentation, Apr 12, 2021
Slide 1: Annual General Meeting 2021: Review of 2020 by President and CEO
<pAQ CONGRATUL jn | gn QO KESKO [| ] ON 60 YEARS oN NASDAQ HELSINK; ‘THE MOST SUSTAINABLE GROCERY TRADE COMPANY IN THE WORLD. . § : KESKO NasdaqListed iS Ve a Nasda ANNUAL GENERAL MEETING 2021 Review of 2020 by President and CEO ~~ Record Result K Mikko Helander, President and CEO, 12 April 2021 KES
Slide 2: Kesko's story began on Satamakatu in Helsinki 80 years ago
Slide 3: K Group today
Slide 4: Our Growth Strategy Is Working and Enables Further Growth in Sales and Profit
Slide 5: Strong Strategy Execution
22990 Strong Strategy Execution More than 30 acquisitions and divestments Investments in growth €3.0 billion Acquisition of Carlsen Fritzae Handel AS Acquisition of Fresks stores Byggmakker acquisitions Acquisition of Onninen Acquisition of Suomen Lahikauppa €¢€ €¢€ Divestments €1.0 billion Divestme
Slide 6: Transforming a Traditional Retailer into One Unified K
Transforming a Traditional Retailer into One Unified K KESKO | crrvwaneer MM ureonance KESPRO ane CT OlOK-RauTA etnnnraabus KODINYKKONENF 9 muuli Ly, i <5) KONEKESKO VV-AUTO K KCITYMARKET KSupermarket KMarket KRauta onninenz neste K KESPRO KBYGG fou) BYGGMAKKERE K Auto KPlussa eccooe § Al
Slide 7: Our Strategy Is Working Well in the Changing Operating Environment
Our Strategy Is Working Well in the Changing Operating Environment Globalisation (a) Consolidation @) (@) Multichannel and (a) Urbanisation Sustainability and climate change Accelerating technological advancements and demographic changes online sales § Al
Slide 8: Successful strategy execution
Successful strategy execution has seen the net sales of our core operations grow by over €3 billion since 2014 § Al
Slide 9: Stable Profit Growth
Stable Profit Growth Comparable operating profit, reported figures, € million 568 500 462 429 400 296 300 274 221 243 200 100 0 2014 2015 2016 2017 2018 2019 2020 @ Operating profit excl. @ IFRS 16 impact IFRS 16 impact Continuing operations
Slide 10: Growth and Transformation Are Paying Off
Growth and Transformation Are Paying Off Kesko’s market capitalisation €10 billion €2.9 billion in 4/2014 Return of a Kesko B share 4/2014-3/2021 +320% 60,000 shareholders, up by 40% in 2020 * 6 April 2021, return incl. share price and dividends § Al
Slide 11: Financial Statements 2020
Y, ee Lit Financial Statements 2020 KESKO™:|')
Slide 12: Record Result in 2020
Slide 13: Net Sales
Net Sales Illustrative figures Comparable growth, % € million 5,000 5,531 4,000 3,000 2,000 1,000 0 Grocery trade 15 Illustrative comparison figures excluding Kesko Senukai 3,473 Building and technical trade 2019 m= 2020 864 Car trade 9,862 2019 ™2020 € million 10,000 8,000 6,000 4,000 2,000
Slide 14: Comparable Operating Profit
Comparable Operating Profit Illustrative figures + €118.9 million + €47.3 million € million € million 500 327.9 300 + €71.9 million 434.7 400 200 300 200 100 115.9 - €3.3 million 100 26.8 0 234 0 Grocery trade Building and technical trade Car trade 2019 ™ 2020 2019 +m 2020 14 Kesko Senukai treated a
Slide 15: Return on Capital Employed
Return on Capital Employed Comparable % 20 16.9 15 14.5 11.2 10 TA 9.5 6.3 Grocery trade Building and technical trade = 2019 5 Car trade ™ 2020 12.0 9.6 Group, continuing operations
Slide 16: Kesko
KESKO
Slide 17: Kesko
KESKO
Slide 18: Sales and Profit Growth Continued Strong in the Grocery Trade
Sales and Profit Growth Continued Strong in the Grocery Trade — — Grocery trade net sales €5,732 million Grocery trade comparable operating profit €375 million 18 Solid basis for growth and profitability Good customer experience Store-specific business ideas Well-functioning retailer business model
Slide 19: Market share in grocery trade growing strongly
Market share in grocery trade growing strongly 37.7% 31.5% in 2015 Retail sales growth in Finland since 2015 €1.8 billion 19 Kesko's own market share estimate based on PTY’s market data
Slide 20: Good Development in Online Grocery Supports Growth in Sales and Market Share
Good Development in Online Grocery Supports Growth in Sales and Market Share Online grocery sales, € million 40 35 30 January March Figures incl. VAT and collection and transport fees 20 15 ‘aadd dd 5 > all oll July September November 2019 m 2020 Market share in online grocery over 50% Growth in onl
Slide 21: Implementation of Country-Specific Strategies in Building and Technical Trade Yields Results
Implementation of Country-Specific Strategies in Building and Technical Trade Yields Results EN Building and technical trade net sales, illustrative €3,640 million Building and technical trade comparable operating profit, illustrative €188 million 21 Kesko Senukai treated as a joint venture in the i
Slide 22: Towards the Best in Europe
Towards the Best in Europe Operating margin, % n Best s 4 operators in Europe ce) 6 6-8% 4 4 2-4 0 {I 2014 2020 Time § Al 2
Slide 23: Changes in the Car Trade Division to Increase Sales and Improve Profitability
Changes in the Car Trade Division to Increase Sales and Improve Profitability G—> Car trade net sales €893 million Car trade operating profit €23 million 23 Key focus for car trade * Raising profitability to a new level Accelerating sales growth Significantly improving customer experience Good colla
Slide 24: Proposed Dividend, Outlook
Proposed Dividend, Outlook
Slide 25: Dividend Proposal
Dividend Proposal The Board of Directors proposes a dividend of €0.75 per share, totalling nearly €300 million To be paid in two instalments Al
Slide 26: Guidance
26 Guidance Kesko Group’s outlook is given for the year 2021, in comparison with the year 2020. Kesko estimates that its comparable operating profit in 2021 will be in the range of €520-620 million. The illustrative comparable operating profit in 2020 was €554 million. § Al
Slide 27: We Continue the Execution of Our Well-Performing Growth Strategy
Slide 28: Kesko
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