Slide 1: Interim report January-March 2014
Interim report January-March 2014 24 April 2014 CFO Jukka Erlund
Slide 2: Kesko's operating profit excl. non-recurring items improved and was €19.1 million
Kesko’s operating profit excl. non-recurring items improved and was €19.1 million • Kesko’s net sales €2.1 billion, change -1.4% – Sales increased in the building and home improvement trade and in the car and machinery trade, and declined in the food trade and in the home and speciality goods trade
Slide 3: Consumers' expectations for own finances
Consumers’ expectations for own finances Own finances in 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 So
Slide 4: Profit for 1-3/2014
Profit for 1-3/2014 1-3/2014 1-3/2013 Net sales, €m 2,129 2,159 Fixed costs excl. non-recurring items, €m 432 438 Operating profit excl. non-recurring items, 19 19 €m Non-recurring items, €m -32 1 Net financial items, €m -2 -3 Income tax, €m 3 -5 Net profit for the period, €m -12 11 4 Q1 2014 Media
Slide 5: Financial position strengthened
Financial position strengthened 1-3/2014 1-3/2013 Cash flow after investing activities, €m -139 -100 Capital expenditure, €m 43 41 Equity ratio, % 53.2 51.7 Interest-bearing net debt, €m 25 233 Liquid assets, €m 532 411 Inventories, €m 840 859 5 Q1 2014 Media and analyst briefing 24.4.2014
Slide 6: Net sales by division (€m)
Net sales by division (€m) 1-3/2014 Change Food trade 1,007 -3.7% Home and speciality goods trade 312 -9.5% Building and home improvement trade 581 3.5% Car and machinery trade 272 9.2% Group total 2,129 -1.4% 6 Q1 2014 Media and analyst briefing 24.4.2014
Slide 7: Operating profit excl. non-recurring items by quarter
Operating profit excl. non-recurring items by quarter €m 100 83.6 80 69.8 66.8 60 40 18.6 19.1 20 0 Q1 Q2 Q3 Q4 Q1 2013 2014 7 Q1 2014 Media and analyst briefing 24.4.2014
Slide 8: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) 1-3/2014 Change Food trade 46.5 -1.7 Home and speciality goods trade -22.7 -4.9 Building and home improvement trade -10.4 6.2 Car and machinery trade 8.2 0.5 Group total 19.1 0.5 8 Q1 2014 Media and analyst briefing 24.4.2014
Slide 9: 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% 7.5% 8.0% 8% 6% 4% 2% 1.2% 0% -2% -2.0% -1.3% -4% -4.0% -4.5% -4.0% -6% 9 Q1 2014 Media and analyst briefing 24.4.2014
Slide 10: Return on capital employed
Return on capital employed excl. non-recurring items, moving 12 mo % 24.9% 25 21.5% 20 15 9.9% 10 4.4% 5 0 -5 -3.1% Food Home and Building and Car and Group total trade speciality goods home machinery trade trade improvement Capital trade employed: €809 m €431 m €722 m €160 m €2,416 m 10 Q1 2014 Med
Slide 11: Steady profit performance in the food trade
Steady profit performance in the food trade Net sales, €m 1200 • Kesko Food’s net sales down 3.7% -3.7% 1000 1,045 1,007 - The sales of K-food stores weaker 800 600 than market performance 400 - In Russia, the sales and profitability of 200 food stores better than expected 0 1-3/13 1-3/14 • Cost sav
Slide 12: Difficult market situation in the home and speciality goods trade
Difficult market situation in the home and speciality goods trade Net sales, €m • The profitability of K-citymarket home and -9.5% 350 speciality goods better than the year 300 345 250 312 before 200 150 • Intersport Finland's profit remained at a 100 good level despite weak sales of winter 50 0 spo
Slide 13: In the building and home improvement trade, sales increased and profitability improved significantly
In the building and home improvement trade, sales increased and profitability improved significantly Net sales, €m +3.5% • Sales increased in all countries in local 600 500 562 581 currencies 400 - Sales up 8.7% in local currencies 300 - Strong growth especially in building 200 100 materials and B2B
Slide 14: Volkswagen continued as market leader
Volkswagen continued as market leader Net sales, €m 300 +9.2% • Audi's market share rose to a record level 250 272 - The market share of Audi, Volkswagen 200 249 and Seat 20.9% (19.9%) 150 100 • Net sales of VV-Auto up +11.2% 50 - Market performance of first time 0 1-3/13 1-3/14 registered passenger
Slide 15: Capital expenditure was prioritised
Capital expenditure was prioritised €m 60 50 48 47 41 44 40 35 30 20 10 0 Q1 Q2 Q3 Q4 Q1 2013 2014 15 Q1 2014 Media and analyst briefing 24.4.2014
Slide 16: Future outlook
Future outlook Estimates of the future outlook for Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (4/2014-3/2015) in comparison with the 12 months preceding the reporting period (4/2013-3/2014). Future prospects f
Slide 17: Corporate Responsibility Report published online only for the first time
Corporate Responsibility Report published online only for the first time • Key results: ̶ As much as 91% of the energy savings target for 2016 has already been achieved ̶ The K-responsibility concept made visible in K-food stores ̶ A permanent operating model for employing people with mental or phys
Slide 18: Thank You!
. Wa . e ‘hank You!