Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Presentation (May 2022)
15 slides from Kesko Oyj Class A's investor presentation, May 2022
Slide 1: Online grocery taking leaps forward
ONLINE GROCERY TAKING LEAPS FORWARD Ari Akseli, President of Kesko’s grocery trade division
Slide 2: Total Finnish food trade market some €20 billion
GRCOERY TRADE TOTAL FINNISH FOOD TRADE MARKET SOME €20 BILLION Kesko the only operator that is strong in all three areas 2% • Sales heavily focused in grocery stores, nearly 90% of total 10 % sales • Foodservice wholesale to companies and public operators the fastest growing area 88 % • Consumer onl
Slide 3: Market leader in Finnish online grocery
MARKET LEADER IN FINNISH ONLINE GROCERY IN 2021 Online grocery sales approx. Online sales growth 244 +301 % million euros (incl. VAT) Q1/2022 rolling 12 mo vs. Q1/2020 rolling 12 mo 3
Slide 4: Weekly deliveries
83 Very high customer satisfaction (NPS) WEEKLY DELIVERIES Selections include up to 53,000 (K-Ruoka + fast deliveries) 40,000 products AVERAGE PURCHASE 541 €126 K-STORES OFFERING (excluding fast deliveries) ONLINE GROCERY 4
Slide 5: Online grocery permanently at a higher level
ONLINE GROCERY PERMANENTLY AT A HIGHER LEVEL K Group monthly sales online • Online’s share of K Group’s grocery sales grew from (incl. VAT and collection and delivery fees) 0.3% in 2018 to 3.9% in Q1/2022 40 000 000 • Online grocery volumes normalising post-pandemic, 35 000 000 expected to settle ab
Slide 6: Consumers expect online to complement shopping in physical stores
QUANTITATIVE CONSUMER SURVEY 09/2021 CONSUMERS EXPECT ONLINE TO COMPLEMENT SHOPPING IN PHYSICAL STORES My grocery shopping now My grocery shopping in 5 years 100% 78% 75% 50% 45% 31% 25% 13% 13% 7% 4% 2% 2% 1% 1% 1% 0% 0% 0% (Almost) Exclusively in Mostly in physical Mostly online, (Almost) Exclusiv
Slide 7: Online's share of grocery sales in 2021 and 2026e
ONLINE’S SHARE OF GROCERY SALES IN 2021 AND 2026e % 23.4 15.7 11.8 10.5 8.1 7.4 6.7 5.8 4.8 5.0 3.6 3.0 3.1 1.7 Etelä-Korea Iso-Britannia Yhdysvallat Ruotsi Suomi Tanska Norja South Korea UK USA Sweden Finland Denmark Norway 2021 2026 7 Source: IGD, Sweden 2021: Svensk dagligvaruhandel IGD estimate
Slide 8: Efficient physical stores create synergies
EFFICIENT PHYSICAL STORES CREATE SYNERGIES • We also see the store of the future as a seamless combination of online and physical stores • Offering the extensive selections our customers appreciate also online: this includes store specialities, and local and service products • The store-specific bus
Slide 9: Market leaders around the world are combining online with physical stores
MARKET LEADERS AROUND THE WORLD ARE COMBINING ONLINE WITH PHYSICAL STORES USA USA • Utilises its store network in order collection • The online operator acquired Whole Foods stores to • Invests heavily in MFC technology to improve do better in online grocery operational efficiency UK SWEDEN • Uses a
Slide 10: Main development measures in 2022
MAIN DEVELOPMENT MEASURES IN 2022 • Making collection more efficient with automation • Automation-assisted order collection system in KCM Ruoholahti in H1/2022 • Developing the K-Nouto click & collect concept to support growth • Piloting fast deliveries to respond to urgent needs and smaller orders
Slide 11: Customers choose the delivery option that best suits them – we develop all options
CUSTOMERS CHOOSE THE DELIVERY OPTION THAT BEST SUITS THEM – WE DEVELOP ALL OPTIONS CLICK & COLLECT HOME DELIVERY FAST DELIVERY Overshadowed by home delivery: compared to The most popular option Quick commerce a growing global trend other countries, accounts for only a small percentage of orders in F
Slide 12: It is also important to further improve efficiency
It is also important to further improve efficiency We have the ability to invest tens of millions of euros solely in collection in upcoming years 12
Slide 13: What do customers appreciate in online grocery?
QUANTITATIVE CONSUMER SURVEY 09/2021 WHAT DO CUSTOMERS APPRECIATE IN ONLINE GROCERY? Most important 2nd most important 3rd most important 70% 61% 60% 50% 45% 44% 40% 37% 35% 30% 28% 21% 20% 19% 11% 10% 0% Extensive selection Affordable prices Fast delivery (home delivery or collection from store) 13
Slide 14: MFC increases efficiency without compromising selections
MFC INCREASES EFFICIENCY WITHOUT COMPROMISING SELECTIONS • Up until now, the most effective way to serve the Finnish market has been to offer online grocery services through a network of physical stores • As volumes grow, it makes sense to seek new operating models in the Helsinki capital region • M
Slide 15: For shopping to be fun
| FOR SHOPPING TO BE FUN as