Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Q2 2021 Earnings Presentation
31 slides from Kesko Oyj Class A's earnings presentation, July 2021
Slide 1: Kesko's Half-Year Financial Report Q2/2021: Another Record Quarter
— ae eens OF KESKO’S HALF-YEAR FINANCIAL REPORT - Q2/2021 Another Record Quarter 1 KESKO™:|')
Slide 2: Key Events in Q2
Key Events in Q2 * Best-ever Q2 result * Kesko continues the execution of its growth strategy, new financial targets set * Good performance continued in grocery trade, Kespro’s sales and profitability returned to normal levels * Sales and profitability in building and technical trade continued to de
Slide 3: Net Sales
Net Sales Growth 12.0% in comparable terms + €415 million Rolling 12 months € million € million 11,000 10,842 none 2,652 2,662 = 2,575 : , 2,539 1 2,500 2,356 0,500 10,243 2,000 10,000 1,500 9,500 1,000 9,000 500 8,500 0 8,000 Q1/20 Q2/20 Q3/20 Q4/20 Qv2 Q2/21 2020 02/2021 5 Illustrative comparison
Slide 4: Comparable Operating Profit
Comparable Operating Profit Growth in comparable terms €77.9 million Rolling 12 months + €77.9 million € million € million 683.1 219.4 600 553.6 200 181.8 165.6 500 160 141.5 tea 400 12 . ° 300 80 64.6 200 40 100 0 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 2020 Q2/2021 Operating 2.7% 5.5% 6.9% 6.2% 4.6%
Slide 5: Return on Capital Employed
Return on Capital Employed Return on capital employed strengthened markedly % 20 19.4 16.9 15.4 15 11.2 10 5 0 Grocery trade Building and technical trade 2020 5 Rolling 12 months, comparable figures 10.4 6.3 Car trade ™ Q2/2021 15.0 12.0 Group KEsKO30
Slide 6: Cash flow from operating activities operatively at last year's level
Cash flow from operating activities operatively at last year’s level Figures for Kesko Senukai included in the Q2/2020 cash flow and balance sheet items oo 0.
Slide 7: Grocery Trade
GROCERY TRADE Improved Profitability for All Chains and Kespro 4
Slide 8: Grocery Trade Net Sales
Grocery Trade Net Sales Growth 3.2% + €45 million € million | 1,600 1st 1,462 1517 1,476 1400 1321 1,361 1,200 1,000 800 600 400 200 0 Q1/20 Q2/20 Q3/20 Q4/20 Qu Q2/21 Rolling 12 months € million 6,000 5,500 5,000 4,500 4,000 5,732 5,816 2020 Q2/2021 K
Slide 9: Grocery Trade Operating Profit
Grocery Trade Operating Profit Growth €25.7 million Rolling 12 months € million ane + €25.7 million 421.6 € million 140 400 375.2 123.2 120 108.7 108.6 300 100 83.0 81.1 80 60.4 200 60 40 100 20 0 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 2020 Q2/2021 Operati 6 9 9 margin 46% 5.8% 7.4% 8.1% 6.0% 7.4% 6.
Slide 10: Grocery trade total market growth 2.2%, retail prices up by 1.5%
Grocery trade total market growth 2.2%*, retail prices up by 1.5%** Household consumption focused on domestic purchases, especially retail Growth in demand for online grocery down compared to the exceptional levels a year ago Foodservice market recovering “Finnish Grocery Trade Association PTY ** in
Slide 11: Building and Technical Trade
BUILDING AND TECHNICAL TRADE Strong Development Continued in K All Operating Countries —
Slide 12: Building and Technical Trade Net Sales
Building and Technical Trade Net Sales Growth 17.7% in comparable terms + €275 million € million 1,229 1,200 1,000 95H 951 o18 924 816 800 600 400 200 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 12 Illustrative comparison figures excluding Kesko Senukai, including speciality goods trade Rolling 12 months
Slide 13: Building and Technical Trade Comparable Operating Profit
Building and Technical Trade Comparable Operating Profit Growth €44.7 million Rolling 12 months + €44,7 million € million € million _ 250 120 108.4 00 1877 100 80 73.2 ‘50 63.7 60 4h.3 100 “ 31.4 50 20 65 i 0 i 3 Q1/20 92/20 Q3/20 Q4/20 oun oun 7020 conan Operating 0.8% 6.7% 17% 4.8% x ane com ous m
Slide 14: Construction and renovation activity continue at a good level in Northern Europe
Construction and renovation activity continue at a good level in Northern Europe Strong growth in B2C trade has flattened B2B trade in building and home improvement trade has continued active Demand continues to be strong in technical wholesale Issues with availability in many product categories
Slide 15: Car Trade
ons 8128 LFE KESKO
Slide 16: Car Trade Net Sales
Car Trade Net Sales Growth 50.3% + €97 million € million 300 289 244 260 250 223 234 200 192 150 100 50 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 16 Rolling 12 months € million 1,100 1,027 1,000 900 893 800 700 600 500 2020 02/2021 — KESKO8O.
Slide 17: Car Trade Operating Profit
Car Trade Operating Profit Growth €10.5 million + €10.5 million € million 14.3 14 2 11.2 10 8 1h 61 6.2 6 4 3.8 : U 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Operating _ y margin 2.7% 2.0% 3.0% 2.6% 4.3% 4.9% 17 Comparable figures Rolling 12 months € million 40 39.0 30 23.4 20 10 0 2020 Q2/2021 3.8% K
Slide 18: First registrations of passenger cars and vans up by 47.7%
First registrations of passenger cars and vans up by 47.7% New all-electric cars and rechargeable hybrids account for over 30% of first registrations of passenger cars Demand for new cars returning to normal levels Demand for used cars also growing Car availability a global issue due to growing dema
Slide 19: Kesko's Strategy Review 2021: We continue the execution of our growth strategy
Kesko's Strategy Review 2021: We continue the execution of our growth strategy § Al
Slide 20: Profitability Has Improved Significantly Thanks to Our Good Strategy
Profitability Has Improved Significantly Thanks to Our Good Strategy and Its Strong Execution Comparable operating profit Reported figures, € million Guidance 650-750 2014 2015 2016 2017 2014-2019 continuing operations 20 2018 2019 2020 2021 Good performance underpinned by strategy that centres on g
Slide 21: Focus: One Unified Grocery Trade
FOCUS: ONE UNIFIED GROCERY TRADE CUSTOMER EXPERIENCE BUILDING AND TECHNICAL TRADE DIGITALISATION SUSTAINABILITY CAR TRADE
Slide 22: Grocery Trade
2 Grocery Trade Growing sales and improving profitability by offering the best customer experience in the business I — A leading operator in Finnish grocery trade Market share 37.6% 50% share of the neighbourhood store market Over 50% market share in online grocery Well-functioning retailer business
Slide 23: Building and Technical Trade
23 % Cy Strong market leader in Finland K-Rauta’s market share 44% Onninen’s market share 40% Good growth in sales and market share for both k-Rauta and Onninen Leading operator in both B2B and B2C trade Building and Technical Trade Seeking growth through sector consolidation in Northern Europe and
Slide 24: Kesko to acquire Byggarnas Partner
KESKO INVESTOR NEWS 23,7.2021 AT 09.05 Kesko to acquire Byggarnas Partner, a company serving professional builders in Sweden Kesko will acquire Byggarnas Partner, thus strengthening its position in the Swedish building and home improvement trade market further, especially in the Stockholm area. Kesk
Slide 25: Car Trade
25 Car Trade Raising sales and profitability to a new level by offering the best customer experience in Finland, transforming and updating our operations, and collaborating more closely with the Volkswagen Group C—> Leading operator in new car sales Combined market share of the brands we represent n
Slide 26: Forerunner in Trading Sector Digitalisation
26 Forerunner in Trading Sector Digitalisation Using digitalisation to improve customer experience and make operations more efficient BS Online and digital sales growing forcefully Digital sales already exceed €1.3 billion Growth in online sales continues strong Continuously improving online efficie
Slide 27: Corporate Responsibility and Sustainability
a Corporate Responsi ty and Sustainability Enabling sustainable choices for our customers, sustainability as a guiding value in all operations wae wy Ambitious climate objectives Carbon neutral by 2025 Zero own emissions by 2030 Encouraging suppliers and customers to reduce emissions Y Sustainable c
Slide 28: Financial Targets
28 Financial Targets Operating margin, comparable New targets Over 6% Previous targets Return on capital employed, comparable, % Over 14.5% 12.5% Interest-bearing net debt/EBITDA, excluding IFRS 16 impact at maximum 2.5 at maximum 2.5 New financial targets published on 27 May 2021
Slide 29: Guidance
Slide 30: Guidance
30 Guidance Kesko estimates that its comparable operating profit in 2021 will be in the range of €650-750 million. In 2020, Kesko’s illustrative comparable operating profit totalled €554 million. § Al
Slide 31: Kesko celebrates its 80th anniversary
KESKO 80 KESKO CELEBRATES ITS 80TH ANNIVERSARY