Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Shareholder Meeting (April 2015)
21 slides from Kesko Oyj Class A's shareholder meeting presentation, Apr 13, 2015
Slide 1: Welcome to the General Meeting
Welcome to the General Meeting 13 April 2015 President and CEO Mikko Helander
Slide 2: Key events in 2014
Key events in 2014 • Profitability remained at a strong level • In the food trade, profitability remained good • In the building and home improvement trade, operating profit more than doubled and market share strengthened • In the car trade, profitability remained good and Audi and Volkswagen were a
Slide 3: Kesko's year 2014 in figures
Kesko’s year 2014 in figures Net sales for 2014 Home improvement €9,071m and speciality goods trade €3,324m Operating profit Grocery trade €4,754m excl. non-recurring items €233m Personnel Car and machinery trade 23,800 €1,011m
Slide 4: Results for 1-12/2014
Results for 1-12/2014 1-12/2014 1-12/2013 Net sales, M€ 9,071 9,315 Fixed costs excl. non-recurring items, M€ -1,742 -1,768 Operating profit excl. non-recurring items, M€ 233 239 Non-recurring items, M€ -81 10 Net financial items, M€ -6 -6 Income taxes, M€ -37 -58 Profit for the year, M€ 108 185 Pro
Slide 5: Financial position
Financial position 1-12/2014 1-12/2013 Equity ratio, % 54.5 54.5 Liquid assets, M€ 598 681 Capital expenditure, M€ 194 171 Interest-bearing net debt, M€ -99 -126 Inventories, M€ 776 797 Return on capital employed, %* 9.9 9.8 * excl. non-recurring items
Slide 6: Finland's highest-quality food trade operator
Finland’s highest-quality food trade operator Grocery trade •Number of stores 912 •Number of employees 6,176 •Net sales €4,754m, -2.2% •Operating profit* €223.2m (4.7%) •Return on capital employed* 22.2% *excl. non-recurring items
Slide 7: Europe's 5th largest operator in the building and home improvement trade
Europe’s 5th largest operator in the building and home improvement trade Home improvement and speciality goods trade •Number of stores 647 •Number of employees 12,105 •Net sales €3,324m, -3.4% •Operating profit* €-0.3m (0.0%) •Operating profit* excl. Anttila €63m (2.1%) •Return on capital employed*
Slide 8: Market leader in the Finnish car trade
Market leader in the Finnish car trade Car and machinery trade • Number of employees 1,244 • Net sales €1,011m, -2.5% • Operating profit* €29.6m (2.9%) • Return on capital employed* 18.3% • *excl. non-recurring items
Slide 9: Kesko is a significant operator in Russia
Kesko is a significant operator in Russia • 13 K-rauta stores in the St. Petersburg and Moscow areas • Six K-ruoka stores in St. Petersburg and two new ones underway • Intersport chain has 17 stores in Russia • Net sales in Russia €368m in 2014 • Operating profit excl. non-recurring items of the bui
Slide 10: Change
Change
Slide 11: Strategy work is underway
Strategy work is underway • Kesko will be a more focused and unified company in the future • Objective is to achieve profitable growth in selected areas • All business operations will be developed in order to increase shareholder value • Synergies will be fully exploited at customer interface and in
Slide 12: Anttila's divestment improves profitability and makes Kesko's business operations more focused
Anttila’s divestment improves profitability and makes Kesko’s business operations more focused • Anttila’s net sales in 2014 €324m • Operating loss €64m • Transaction price €1m • Kesko will record an approximately €-130 million non-recurring item on the transaction for the first quarter of 2015
Slide 13: Kesko's profitability is expected to improve
Kesko’s profitability is expected to improve • Kesko's net sales for 2015 are expected to be lower than the net sales for 2014 and the operating profit excluding non-recurring items for 2015 is expected to exceed the operating profit excluding non-recurring items for 2014. • The general economic sit
Slide 14: The objective is to implement the real estate arrangement during the first half of 2015
The objective is to implement the real estate arrangement during the first half of 2015 • The intention is to sell some of the store sites owned by Kesko to a joint venture to be set up • The fair value of store sites planned to be sold to the joint venture from Finland and Sweden around 670 milli
Slide 15: Kesko's management was revamped
Kesko’s management was revamped Mikko Helander, Jorma Rauhala, Terho Kalliokoski, Pekka Lahti, Anni Ronkainen, President and CEO grocery trade home improvement car and Chief Digital Office and speciality goods trade machinery trade Matti Mettälä, Jukka Erlund, Anne Leppälä-Nilsson, Lauri Peltola, hu
Slide 16: Management's special focus areas
Management’s special focus areas • New strategy and its practical implementation • More speed and higher responsiveness: elimination of complexity, clear-cut responsibilities and decision-making at the right organisational levels • Creating the best digital customer experience • Stopping the decline
Slide 17: Visible presence in Finnish society
Visible presence in Finnish society
Slide 18: Kesko is the fourth most significant company in Finland
Kesko is the fourth most significant company in Finland According to the report by the Prime Minister’s Office, Kesko accounts for nearly one percent of the Finnish GDP We meet our customers more than one million times every day around the year
Slide 19: Position involves responsibility
Position involves responsibility Participation and initiative in social debate Taking care that debate takes place and that social decisions are made based on facts and not on impressions
Slide 20: We want to promote the success of both Finland and Kesko
We want to promote the success of both Finland and Kesko • High-quality Finnish foodstuffs – or Finnish food manufacturing industry and agriculture – are not something to be taken for granted • Strong Finnish grocery trade provides an opportunity for domestic products to enter the market and thereby
Slide 21: The world's most sustainable retail operator
The world’s most sustainable retail operator