Slide 1: Interim report January-March 2011
Interim report January-March 2011 28 April 2011 CFO Arja Talma
Slide 2: Growth driven by the food trade and the car trade
Growth driven by the food trade and the car trade • K-food stores’ market share growth continued and the profitability of the food trade improved, sales of Pirkka products up 28% • Digital customer communication projects are progressing • Launching Anttila's logistics centre has begun successfully,
Slide 3: Kesko's sales and profit are growing
Kesko’s sales and profit are growing • Kesko has decided to strongly expand its business operations in Russia • Kesko Food's objective is to achieve €500 million in net sales and a positive operating result in Russia by 2015 • Rautakesko will open 12 new K- rauta stores in Russia by 2015 • Interspor
Slide 4: Net sales by division 1.1.-31.3. (M€)
Net sales by division 1.1.-31.3. (M€) 2011 2010 Change,% Food trade 948 912 3.9 Home and speciality goods trade 348 355 -2.0 Building and home improvement trade 570 495 15.1 Car and machinery trade 279 236 18.1 Total 2,103 1,958 7.4 4 Q1 2011 Media and analyst briefing Arja Talma
Slide 5: Group's net sales by quarter (M€)
Group’s net sales by quarter (M€) 2 500 +7.3% +6.4% +4.6% +7.4% -3.0% 409 361 2 000 427 306 +12.7% 272 1 500 +6.6% 1 000 1,797 1,686 1,870 1,804 1,949 500 0 Q1 Q2 Q3 Q4 Q1 2010 2011 Finland Other countries 5 Q1 2011 Media and analyst briefing Arja Talma
Slide 6: Operating profit excl. non-recurring items by division 1.1.-31.3. (M€)
Operating profit excl. non-recurring items by division 1.1.-31.3. (M€) 2011 2010 Change Food trade 41.4 31.7 9.7 Home and speciality goods trade -7.4 0.1 -7.5 Building and home improvement trade -9.1 -13.8 4.7 Car and machinery trade 12.2 6.4 5.9 Total 34.9 20.9 14.0 6 Q1 2011 Media and analyst brie
Slide 7: Operating profit by quarter (M€)
Operating profit by quarter (M€) 150 120 35.3 90 1.0 2.3 60 88.7 80.5 78.1 0.8 30 0.1 34.9 20.9 0 Q1 Q2 Q3 Q4 Q1 2010 2011 Operating profit excl. non-recurring items Non-recurring items 7 Q1 2011 Media and analyst briefing Arja Talma
Slide 8: Group's profit before tax (M€)
Group’s profit before tax (M€) 40 36.1 0.8 30 21.9 0.1 20 34.9 10 20.9 0.9 0.4 0 Q1/2010 Q1/2011 Net financial items and income from associates excl. non-recurring items Operating profit excl. non-recurring items Non-recurring items 8 Q1 2011 Media and analyst briefing Arja Talma
Slide 9: Food trade 1-3/2011
Food trade 1-3/2011 Net sales 1-3, M€ • The growth rate of K-food stores’ grocery 1 000 912 948 +3.9% sales exceeded that of the market 800 (+4.9%, VAT 0%) 600 – Competitive advantage projects are 400 progressing 200 • Retail sales performance coupled with 0 cost management especially in logistics 2
Slide 10: We make capital expenditures in the store site network
We make capital expenditures in the store site network Food trade • High pace of capital expenditure in the expansion and renovation of the store site network • In 2010, two new K-citymarkets, seven K-supermarkets and eight K-markets were opened • In 2011, six K-citymarkets, 30 K-supermarkets and si
Slide 11: Finnish food chain relies on cooperation and competitiveness
Finnish food chain relies on cooperation and competitiveness • Customers decide what K-stores offer • Domestic content and wide selections are K-stores’ competitive advantages • K-retailers are independent entrepreneurs, also in mutual competition • Present market shares have been achieved through c
Slide 12: Home and speciality goods trade 1-3/2011
Home and speciality goods trade 1-3/2011 Net sales 1-3, M€ 400 355 348 -2.0% • Anttila’s sales were decreased by the 300 -12.8% closing of two department stores -1.8% – Anttila Hämeenlinna is converted 200 into a K-citymarket 100 – Anttila Tikkurila’s lease expired • Sales of Asko and Sotka increase
Slide 13: Building and home improvement trade 1-3/2011
Building and home improvement trade 1-3/2011 Net sales 1-3, M€ +15.1% 600 570 495 • Sales of the building and home 400 +18.6% improvement trade increased in all operating countries 200 • The profit performance was impacted +11.7% by the fact that sales growth derived 0 from basic building materials
Slide 14: Car and machinery trade 1-3/2011
Car and machinery trade 1-3/2011 Net sales 1-3, M€ 279 +18.1% 300 • Comparable net sales of the car and 236 - 44.5% machinery trade increased by 26.1% 200 • VV-Auto’s order books still at a record 100 +25.0% high level • Audi’s, Volkswagen’s and Seat’s 0 combined market share was 18.9% 2010 2011 • A
Slide 15: Kesko's sustainability work in the world's top class
Kesko’s sustainability work in the world’s top class • The Global 100 Most Sustainable Corporations • Kesko’s ranking is now 26th, compared with 33rd in 2010 • Kesko ranked in the list of 'the Global 100 Most Sustainable Corporations‘ for the seventh time • SAM (Sustainable Asset Management) Sustain
Slide 16: Group's capital expenditure (M€)
Group’s capital expenditure (M€) 70 64.1 60 9.5 50 42.0 40 9.5 30 54.6 20 32.5 10 0 1-3/2010 1-3/2011 Store sites Others 16 Q1 2011 Media and analyst briefing Arja Talma
Slide 17: Interest-bearing net debt (M€)
Interest-bearing net debt (M€) 100 0 -100 -229 -279 -200 -300 -400 3/2010 3/2011 Liquid assets at 3/2011 €724 million (3/2010 €687 million) 17 Q1 2011 Media and analyst briefing Arja Talma
Slide 18: Equity ratio, %
Equity ratio, % 60 50 40 30 51.3 54.4 20 10 0 3/2010 3/2011 18 Q1 2011 Media and analyst briefing Arja Talma
Slide 19: Return on capital, %
Return on capital, % 10 5 7.2 4.5 4.4 2.9 0 Return on equity Return on capital employed 1-3/2010 1-3/2011 Excl. non-recurring items 1-3/2011 4.4% Excl. non-recurring items 1-3/2011 7.0% 1-3/2010 2.9% 1-3/2010 4.4% 19 Q1 2011 Media and analyst briefing Arja Talma
Slide 20: Performance indicators
Performance indicators 1-3/2011 1-3/2010 Net sales, € million 2,103 1,958 Operating profit, € million 35.7 20.9 Operating profit excl. non-recurring items, € million 34.9 20.9 Group's profit before tax, € million 36.1 21.9 Capital expenditure, € million 64.1 42.0 Earnings/share, €, diluted 0.25 0.15
Slide 21: Share price trend 12 mo
Share price trend 12 mo Kesko OMX Helsinki CAP 21.4.2011 Dividend/share for 2010 €1.30, total €128 million Effective dividend yield 3.7% 21 Q1 2011 Media and analyst briefing Arja Talma
Slide 22: Market capitalisation
Market capitalisation 31.3. (M€) 5 000 4 000 3,252 2,855 3 000 2,208 €33.00/share 2 000 1,942 1 000 912 1,044 €32.89/share 0 2010 2011 B share A share 22 Q1 2011 Media and analyst briefing Arja Talma
Slide 23: Earnings per share
Earnings per share* € 0,5 0,4 0,3 0,2 0.25 0,1 0.15 0 2010 2011 * Diluted 23 Q1 2011 Media and analyst briefing Arja Talma
Slide 24: 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 (4/2011-3/2012) in comparison with the 12 months preceding the reporting period (4/2010-3/2011). The outlook fo
Slide 25: Thank you!
Thank you! 25 Q1 2011 Media and analyst briefing Arja Talma