Kesko's financial statements release for the period 1 Jan. 2015 to 31 Dec. 2015: comparable net sales at the level of the previous year, profit and financial position strengthened
KESKO CORPORATION FINANCIAL STATEMENTS RELEASE 03.02.2016 AT 09.00 1(35)
Kesko's financial statements release for the period 1 Jan. 2015 to 31 Dec.
2015: comparable net sales at the level of the previous year, profit and
financial position strengthened
Financial performance in brief:
* The Group's net sales for January-December were €8,679 million (€9,071
million). Net sales in local currencies excluding Anttila remained at the level
of the previous year.
* The operating profit excluding non-recurring items increased to €244.5 million
(€232.6 million).
* Earnings per share excluding non-recurring items €1.70 (€1.65).
* Equity ratio 54.7% (54.5%).
* The Board's proposal for dividend is €2.50 per share.
* Kesko Group's net sales for 2016 are expected to equal the level of the
previous year. The operating profit excluding non-recurring items for 2016 is
expected to slightly exceed the level of 2015. The future outlook does not take
account of the acquisitions of Suomen Lähikauppa and Onninen, in respect of
which estimates will be given in connection with their respective completions.
Key performance indicators
1-12/2015 1-12/2014 10-12/2015 10-12/2014
Net sales, € million 8,679 9,071 2,166 2,267
Operating profit excl. non-recurring
items, € million 244.5 232.6 59.1 61.9
Operating profit, € million 194.6 151.4 39.3 31.7
Profit before tax, € million 188.0 145.0 40.7 26.4
Capital expenditure, € million 218.5 194.0 66.9 43.2
Earnings per share, €, diluted 1.03 0.97 0.22 0.17
Earnings per share excl. non-
recurring items, €, basic 1.70 1.65 0.47 0.42
31.12.2015 31.12.2014
Equity ratio, % 54.7 54.5
Equity per share, € 21.82 22.05
President and CEO Mikko Helander:
"Kesko's profit was at a good level also in the last quarter of 2015. Looking at
the whole year, we can also be satisfied with strategy implementation and the
financial result, especially when we take account of the continued weak trend in
the purchasing power of the main market area in
Finland
. In the grocery trade,
market position remained stable and profitability was good. In the home
improvement and speciality goods trade, profitability improved significantly and
market share strengthened especially in
Finland
. In the car trade, Volkswagen
was again the market leader.
In terms of Kesko's growth strategy, it was essential to make an agreement on
the acquisition of Suomen Lähikauppa in November 2015 and on the acquisition of
Onninen announced in January 2016. With the acquisition of Suomen Lähikauppa,
Kesko's neighbourhood retail services will improve significantly. The
acquisition of Onninen, for its part, will materially strengthen Kesko's
position in the building and technical trade. Both of the acquisitions will
enable strong growth and more customer oriented services as well as significant
synergies.
Kesko's financial position was very strong in the last quarter. Liquid assets
were €887 million and the equity ratio stood at 54.7%. The return on capital
employed excluding non-recurring items rose to 11.7%. In addition to financing
the acquisitions, the strong balance sheet enables a €2.50 dividend per share to
be proposed to the General Meeting to be held in April.
In January, Kesko ranked 15th in the Global 100 Most Sustainable Corporations in
the World list, and was, at the same time, the most sustainable trading sector
company in the world. Kesko's long-term corporate responsibility work is based
on our strategy and responsibility programme. All our operations are guided by
our value: The customer and quality - in everything we do."
FINANCIAL PERFORMANCE
Net sales and profit for January-December 2015
The Group's net sales for January-December 2015 were €8,679 million, which is
4.3% down on the corresponding period of the previous year (€9,071 million).
Anttila was included in the Group figures until 16 March 2015. Anttila excluded,
net sales performance in local currencies equalled the level of the previous
year. The decline in consumers' purchasing power weakened consumer demand in the
reporting period in
Finland
and
Russia
.
In the grocery trade, the -1.7% net sales performance is partly attributable to
the decline in prices. In the home improvement and speciality goods trade, net
sales decreased by 8.9%, but increased by 2.3% in local currencies excluding
Anttila. In the car trade, net sales decreased by 2.4%. The Group's net sales in
Finland
decreased by 4.9% and the comparable performance excluding Anttila was
-1.7%. In the other countries, net sales decreased by 1.9% but increased in
local currencies excluding Anttila by 7.6%. The weakening of the Russian rouble
impacted the net sales performance in euros especially in the home improvement
and speciality goods trade. International operations accounted for 18.9% (18.4%)
of net sales.
1-12/2015 Net sales, € Change, % Operating profit Change,
million excl. non- € million
recurring
items, € million
Grocery trade 4,673 -1.7 177.5 -45.8
Home improvement and
speciality goods trade 3,250 -8.9 63.6 +63.2
Car trade 748 -2.4 26.1 -2.8
Common operations and
eliminations 8 (..) -22.7 -2.8
Total 8,679 -4.3 244.5 +11.8
(..) Change over 100%
The operating profit excluding non-recurring items for January-December was
€244.5 million (€232.6 million). In the grocery trade, profitability was good,
although the operating profit excluding non-recurring items decreased from the
previous year. This was most significantly due to intensified price competition.
In the home improvement and speciality goods trade, profitability was improved
by the divestment of Anttila in the first part of the year, as well as the good
profit performance of the building and home improvement trade especially in
Finland
,
Sweden
,
Norway
and the Baltic countries. In the car trade,
profitability remained steadily at a good level. The operating profit includes a
€12.7 million operating loss from Anttila, divested in March; the operating loss
for the previous year was €63.2 million.
The operating profit was €194.6 million (€151.4 million). The operating profit
includes €-49.9 million (€-81.3 million) of non-recurring items. The most
significant non-recurring items were the €130 million loss on the divestment of
Anttila, the €75.6 million capital gain recorded on a real estate transaction
completed in the second quarter of the year and a total of €25.4 million in
capital gains on other real estate transactions. Due to Intersport Russia's low
volume and unprofitable performance, Kesko plans to withdraw from the Russian
sports trade in 2016. Relating to the restructuring of Intersport Russia's
operations, a total of €17.2 million of non-recurring impairment charges and
provisions were recorded for the fourth quarter. The non-recurring items of the
comparative period included a provision for the restructuring of Anttila, and an
impairment charge on fixed assets related to the integration of K-citymarket
non-food and Anttila, a total of €46.8 million, a €5.2 million restructuring
provision related to changes in the retail business of Byggmakker in
Norway
,
costs amounting to €4.2 million from personnel reductions related to the change
in Kesko's divisional structure, and a €21.0 million property impairment charge
related to the renovation of Kesko's main office building.
The Group's profit before tax for January-December was €188.0 million (€145.0
million). The Group's earnings per share were €1.03 (€0.97). The Group's equity
per share was €21.82 (€22.05).
In January-December, the K-Group's (i.e. Kesko's and the chain stores') retail
and B2B sales excluding Anttila were €10,818 million, down 1.5% compared to the
previous year. The K-Plussa customer loyalty programme gained 63,045 new
households in 2015. At the end of December, there were 2.3 million K-Plussa
households and 3.6 million K-Plussa cardholders.
Net sales and profit for October-December 2015
The Group's net sales for October-December 2015 were €2,166 million, which is
4.4% down on the corresponding period of the previous year (€2,267 million).
Anttila excluded, net sales increased by 0.9% in local currencies. The operating
environment of the trading sector remained challenging in
Finland
and especially
in
Russia
.
In the grocery trade, net sales decreased by 0.9%, which was especially
attributable to a decline in prices. In the home improvement and speciality
goods trade, net sales decreased by 12.0%, but Anttila excluded, they increased
in local currencies by 3.1%. In the car trade, net sales increased by 1.5%. The
Group's net sales in
Finland
decreased by 5.5% and Anttila excluded, by 0.3%. In
the other countries, net sales increased by 0.7%, and in local currencies by
6.2%. International operations accounted for 18.1% (17.1%) of net sales.
10-12/2015 Net sales, € Change, % Operating profit Change,
million excl. non- € million
recurring
items, € million
Grocery trade 1,249 -0.9 54.5 -7.8
Home improvement and
speciality goods trade 736 -12.0 7.5 +3.8
Car trade 177 +1.5 3.8 -1.4
Common operations and
eliminations 4 (..) -6.7 +2.6
Total 2,166 -4.4 59.1 -2.7
(..) Change over 100%
The operating profit excluding non-recurring items for October-December was
€59.1 million (€61.9 million). The operating profit excluding non-recurring
items of the grocery trade, €54.5 million, was still at a good level (€62.2
million). The operating profit excluding non-recurring items of the home
improvement and speciality goods trade increased by €3.8 million. The figures of
the home improvement and speciality goods trade for the comparative period
included a €6.3 million operating loss from Anttila and a €6.5 million higher
net amount in gains on foreign exchange hedges compared to the reporting period.
In the car trade, the operating profit excluding non-recurring items decreased
by €1.4 million, still remaining at a good level. The effect of the real estate
arrangement completed in June on the operating profit excluding non-recurring
items of the last quarter was €-3.7 million.
The operating profit was €39.3 million (€31.7 million). The operating profit
includes €19.9 million (€30.2 million) of non-recurring expenses. The most
significant non-recurring expense item, €17.2 million, consists of impairment
charges and provisions related to the restructuring of Intersport Russia's
operations. The non-recurring items of the comparative period included €4.2
million in costs from personnel reductions related to the change in Kesko's
divisional structure, and a €21.0 million property impairment charge related to
the renovation of Kesko's main office building.
The Group's profit before tax for October-December was €40.7 million (€26.4
million). The Group's earnings per share were €0.22 (€0.17).
In October-December, the K-Group's (i.e. Kesko's and the chain stores') retail
and B2B sales (VAT 0%) were €2,737 million and Anttila excluded, they were up
0.5% compared to the previous year.
Finance
In January-December, the cash flow from operating activities was €276.4 million
(€304.4 million). The cash flow from investing activities was €217.1 million (€-
182.1 million) and it included proceeds from the sale of fixed assets in the
amount of €432.5 million (€11.2 million), of which the cash inflow from the real
estate arrangement completed in June was €403.0 million.
The Group's liquidity remained at an excellent level in January-December. At the
end of the period, liquid assets totalled €887 million (€598 million). Interest-
bearing liabilities were €439 million (€499 million) and interest-bearing net
debt was €-448 million (€-99 million) at the end of December. The equity ratio
was 54.7 % (54.5%) at the end of the period.
In January-December, the Group's net finance costs were €7.1 million (€6.1
million). The finance income for the previous year included interest income on
cooperative capital from Suomen Luotto-osuuskunta in the amount of €4.9 million.
In October-December, the cash flow from operating activities was €123.3 million
(€137.0 million). The cash flow from investing activities was €-70.9 million (€-
38.5 million).
The Group's net finance income was €0.9 million (net finance costs €5.0 million)
in October-December.
Taxes
In January-December, the Group's taxes were €70.7 million (€36.6 million). The
effective tax rate was 37.6% (25.2%) resulting from non-deductible items related
to the loss on the divestment of Anttila and the restructuring of Intersport
Russia's
operations.
In October-December, the Group's taxes were €14.0 million (€5.4 million). The
effective tax rate was 34.3% (20.3%).
Capital expenditure
In January-December, the Group's capital expenditure totalled €218.5 million
(€194.0 million), or 2.5% (2.1%) of net sales. Capital expenditure in store
sites was €166.7 million (€142.7 million), in IT €20.4 million (€34.4 million)
and other capital expenditure was €31.4 million (€17.0 million). Capital
expenditure in foreign operations represented 40.2% (40.5%) of total capital
expenditure.
In October-December, the Group's capital expenditure totalled €66.9 million
(€43.2 million), or 3.1% (1.9%) of net sales. Capital expenditure in store sites
was €54.8 million (€29.2 million), in IT €7.7 million (€10.2 million) and other
capital expenditure was €4.5 million (€3.9 million). Capital expenditure in
foreign operations represented 43.8% (34.0%) of total capital expenditure.
Personnel
In January-December, the average number of personnel in Kesko Group was 18,955
(19,976) converted into full-time employees. In
Finland
, the average decrease
was 1,280 people, while outside
Finland
, there was an increase of 259 people.
At the end of December 2015, the number of personnel was 21,935 (23,794), of
whom 10,081 (12,180) worked in
Finland
and 11,854 (11,614) outside
Finland
.
Compared to the end of December 2014, there was a decrease of 2,099 people in
Finland
and an increase of 240 people outside
Finland
. The decrease in the
number of personnel in
Finland
is attributable to the divestment of Anttila on
16 March 2015.
In January-December, the Group's employee benefit expenses were €544.8 million,
down 11.3% compared to the previous year. In October-December, employee benefit
expenses decreased by 14.9% compared to the previous year and were €137.6
million. The decrease is attributable to the divestment of Anttila on 16 March
2015.
SEGMENTS
New segment structure
The composition of Kesko's divisional structure and segment reporting were
changed as of 1 July 2015 to correspond to the new strategy. An agricultural and
machinery trade unit was established as part of the home improvement and
speciality goods trade division. As of 1 July 2015, Kesko Group's reportable
segments are the grocery trade, the home improvement and speciality goods trade
and the car trade.
Seasonal nature of operations
The Group's operating activities are affected by seasonal fluctuations. The net
sales and operating profits of the reportable segments are not earned evenly
throughout the year. Instead, they vary by quarter depending on the
characteristics of each segment.
Grocery trade
1-12/2015 1-12/2014 10-12/2015 10-12/2014
Net sales, € million 4,673 4,754 1,249 1,260
Operating profit excl. non- recurring
items, € million 177.5 223.2 54.5 62.2
Operating margin excl. non-recurring
items, % 3.8 4.7 4.4 4.9
Capital expenditure,
€ million 128.9 98.0 29.9 21.0
Net sales, € million 1-12/2015 Change, % 10-12/2015 Change, %
Sales to K-food stores 3,162 -2.2 827 -1.8
K-citymarket, non-food 588 -1.0 182 -0.2
Kespro 792 +0.3 203 +1.9
K-ruoka, Russia 107 +3.1 32 +19.0
Others 25 -27.7 5 -46.8
Total 4,673 -1.7 1,249 -0.9
January-December 2015
In 2015, the market position of the grocery trade remained stable and its
profitability was good. The strengthening of K-food stores' competitiveness in
terms of quality and price has progressed in accordance with strategy and after
the completion of the acquisition of Suomen Lähikauppa, announced in November,
Kesko's neighbourhood retail services will improve significantly.
The net sales of the grocery trade for January-December were €4,673 million
(€4,754 million), representing a change of -1.7%. In January-December, the
grocery sales of K-food stores in
Finland
decreased by 1.2% (VAT 0%). In the
grocery market in
Finland
, retail prices are estimated to have changed by
approximately -1% compared to the previous year (VAT 0%; Kesko's own estimate
based on the Consumer Price Index of Statistics Finland) and the total market
(VAT 0%) is estimated to have decreased by approximately 1% in January-December
(Kesko's own estimate). The decline in the value of the rouble affected the
sales of the food stores in
Russia
in euros. In the local currency, sales
increased by 35.4%.
In January-December, the operating profit excluding non-recurring items of the
grocery trade was €177.5 million (€223.2 million). Profitability was good in the
grocery trade, although the operating profit excluding non-recurring items
decreased from the previous year. This was most significantly due to intensified
price competition. Kespro's market share increased and profitability remained at
a good level. The operating profit of the grocery trade was €249.4 million
(€216.2 million). Non-recurring items, in the amount of €71.9 million (€-7.1
million), include €71.9 million in gains recorded on the sales of properties as
the most significant items.
The capital expenditure of the grocery trade in January-December was €128.9
million (€98.0 million), of which €117.7 million (€83.2 million) was in store
sites.
October-December 2015
The net sales of the grocery trade for October-December were €1,249 million
(€1,260 million), representing a change of -0.9%. In the grocery market in
Finland
, retail prices are estimated to have changed by approximately -1%
compared to the previous year. The net sales of the food stores in
Russia
increased by 19.0% in euros and by 37.4% in the local currency.
In October-December, the operating profit excluding non-recurring items of the
grocery trade was €54.5 million (€62.2 million). The effect of the real estate
arrangement completed in June on the operating profit excluding non-recurring
items was €-2.7 million. The operating profit was €53.4 million (€59.1 million).
Non-recurring items were €-1.0 million (€-3.2 million).
The capital expenditure of the grocery trade in October-December was €29.9
million (€21.0 million), of which €27.4 million (€15.5 million) was in store
sites.
In October-December, one new K-food store in
St. Petersburg
, a K-supermarket in
Oulu and two K-markets were opened. Renewals and extensions were made in a total
of 10 stores.
The most significant store sites being built are a K-citymarket shopping centre
in Itäkeskus,
Helsinki
, a K-citymarket in Sastamala, new K-supermarkets in
Tampere
, in Niipperi and Niittykumpu, Espoo, in Lappeenranta, Haapajärvi and in
Lauttasaari, Töölö and Kalasatama,
Helsinki
. Two new food stores are being built
in
Russia
.
Store numbers at 31.12. 2015 2014
K-citymarket 81 81
K-supermarket 219 218
K-market (incl. service station stores) 476 444
K-ruoka, Russia 9 5
Others* 108 164
* incl. online stores
In addition, several K-food stores offer e-commerce services to their customers.
Home improvement and speciality goods trade
1-12/2015 1-12/2014 10-12/2015 10-12/2014
Net sales, € million 3,250 3,568 736 837
Operating profit excl. non-recurring
items, € million 63.6 0.4 7.5 3.7
Operating margin excl. non-recurring
items, % 2.0 0.0 1.0 0.4
Capital expenditure,
€ million 55.3 71.9 28.8 20.2
Net sales, € million 1-12/2015 Change, % 10-12/2015 Change, %
Building and home improvement, Finland 794 +0.3 169 +5.9
K-rauta, Sweden 209 +7.7 48 +12.8
Byggmakker, Norway 418 -3.0 92 -0.3
K-rauta, Estonia 87 +11.2 22 +10.3
K-rauta, Latvia 52 -2.0 12 -7.9
Senukai, Lithuania 322 +3.2 86 +0.2
K-rauta, Russia 192 -23.1 46 -23.0
OMA, Belarus 116 -7.5 29 +3.1
Intersport, Finland 174 +1.5 46 -0.6
Intersport, Russia 12 -17.0 3 -12.4
Indoor 179 +1.6 46 +0.3
Agricultural and machinery trade
615 -0.4 133 +5.1
Others 90 -75.3 7 -93.8
Total 3,250 -8.9 736 -12.0
January-December 2015
The profitability of the home improvement and speciality goods trade improved
significantly in 2015, which was attributable to the good profit performance in
the building and home improvement trade and the divestment of the loss-making
business of Anttila in March 2015. The market share of the K-Group's building
and home improvement trade is estimated to have strengthened especially in
Finland
. In the building and home improvement trade, growth strengthened
especially in the B2B trade.
The net sales of the home improvement and speciality goods trade for January-
December were €3,250 million (€3,568 million), down 8.9%. Net sales excluding
Anttila increased by 2.3% in local currencies.
The net sales of the home improvement and speciality goods trade for January-
December in
Finland
were €1,719 million (€2,002 million), a decrease of 14.1%.
Anttila excluded, net sales decreased in
Finland
by 1.0%. In January-December,
the net sales from the foreign operations of the home improvement and speciality
goods trade were €1,530 million (€1,566 million), a decrease of 2.3%. In local
currencies, the net sales from foreign operations excluding Anttila increased by
5.8%. Foreign operations contributed 47.1% (43.9%) to the net sales of the home
improvement and speciality goods trade.
In January-December, the net sales of the building and home improvement trade
were €2,370 million (€2,422 million), a decrease of 2.1%. In local currencies,
net sales were up by 2.7%. In respective local currencies, net sales in
Sweden
grew by 10.8%, in
Norway
by 3.2% and in
Russia
by 0.9%.
The net sales of the agricultural and machinery trade for January-December were
€615 million (€618 million), down 0.4% compared to the previous year. Net sales
in
Finland
were €500 million, a decrease of 4.2%. The net sales from foreign
operations were €115 million, an increase of 20.0%. The net sales of the leisure
trade were €205 million, an increase of 1.3% in local currencies.
The K-Group's sales of building and home improvement products in
Finland
decreased by a total of 0.3% and the total market (VAT 0%) is estimated to have
fallen by approximately 2.2% (Kesko's own estimate). The retail sales of the K-
maatalous chain were €437 million, down 5.5%.
In January-December, the operating profit excluding non-recurring items of the
home improvement and speciality goods trade was €63.6 million (€0.4 million), up
€63.2 million compared to the previous year. The €12.7 million (€63.2 million)
operating loss of Anttila, divested in March, is included in the profit of the
home improvement and speciality goods trade. The operating profit of the home
improvement and speciality goods trade, excluding non-recurring items and
Anttila, was €76.3 million, up €12.6 million on the previous year. The improved
profitability was attributable to a sales increase in foreign currency terms,
coupled with implemented cost savings. The results of the building and home
improvement trade improved especially in
Finland
,
Sweden
,
Norway
and the Baltic
countries. Profitability improved from the previous year also in the furniture
trade and the agricultural and machinery trade.
The operating profit of the home improvement and speciality goods trade was €-
57.2 (€-52.0 million). Non-recurring items include a €130 million loss on the
divestment of Anttila. Due to Intersport Russia's low volume and unprofitable
performance, Kesko plans to withdraw from the Russian sports trade in 2016.
Relating to the restructuring of Intersport Russia's operations, a total of
€17.2 million of non-recurring impairment charges and provisions were recorded
for the fourth quarter. In addition, the non-recurring items include €28 million
in gains recorded on the sales of properties.
In January-December, the capital expenditure of the home improvement and
speciality goods trade totalled €55.3 million (€71.9 million), of which 54.6%
(56.8%) was abroad. Capital expenditure in store sites represented 73.7% of
total capital expenditure.
October-December 2015
The net sales of the home improvement and speciality goods trade for October-
December were €736 million (€837 million), down 12.0%. Net sales excluding
Anttila increased by 3.1% in local currencies.
The net sales of the home improvement and speciality goods trade for October-
December in
Finland
were €376 million (€475 million), a decrease of 20.8%.
Anttila excluded, net sales increased in
Finland
by 2.3%. In October-December,
the net sales from the foreign operations of the home improvement and speciality
goods trade were €360 million (€362 million), a decrease of 0.6%. In local
currencies, the net sales from foreign operations excluding Anttila increased by
3.9%. Foreign operations contributed 48.9% (43.2%) to the net sales of the home
improvement and speciality goods trade.
In October-December, the net sales of the building and home improvement trade
were €550 million (€549 million), an increase of 0.1%. In local currencies, net
sales were up by 2.7%. In respective local currencies, net sales grew in
Sweden
by 13.3%, and in
Norway
by 5.8% and decreased in
Russia
by 11.7%.
The net sales of the agricultural and machinery trade for October-December were
€133 million (€126 million), up 5.1% compared to the previous year. Net sales in
Finland
were €113 million, an increase of 0.2%. The net sales from foreign
operations were €20 million, an increase of 45.4%.
The K-Group's sales of building and home improvement products in
Finland
increased by a total of 5.3% and the total market (VAT 0%) is estimated to have
grown by approximately 2.9% (Kesko's own estimate). The retail sales of the K-
maatalous chain were up by 4.2%.
In October-December, the operating profit excluding non-recurring items of the
home improvement and speciality goods trade was €7.5 million (€3.7 million), up
€3.8 million compared to the previous year. The comparative period includes a
€6.3 million operating loss from Anttila and a €6.5 million higher net amount in
gains on foreign exchange hedges compared to the reporting period. Profit
improved especially in the building and home improvement trade in
Sweden
,
Norway
and the Baltic countries, as well as in the furniture trade and the agricultural
and machinery trade.
The operating profit of the home improvement and speciality goods trade was €-
10.9 (€-1.5 million). The non-recurring items include €17.2 million in
impairment charges and provisions related to the restructuring of Intersport
Russia's
operations.
In October-December, the capital expenditure of the home improvement and
speciality goods trade totalled €28.8 million (€20.2 million), of which 79.3%
(41.0%) was abroad. Capital expenditure in store sites represented 83.7% of
total capital expenditure.
In October-December, K-rauta Imatra, K-rauta Express Sello, a Senukai store in
Lithuania
and Asko and Sotka stores in Kuopio were opened.
The most significant store sites being built are the K-rauta stores in Kokkola
and Lahti and a Senukai store in
Vilnius
.
Store numbers at 31.12. 2015 2014
K-rauta 45 42
Rautia* 93 96
K-maatalous* 80 81
K-rauta, Sweden 20 20
Byggmakker, Norway 88 82
K-rauta, Estonia 8 8
K-rauta, Latvia 8 8
Senukai, Lithuania 20 19
K-rauta, Russia 13 13
OMA, Belarus 12 11
Intersport, Finland** 60 62
Budget Sport** 11 12
Asko and Sotka** 87 86
Kookenkä** 38 44
Intersport, Russia 18 19
Asko and Sotka, the Baltics** 10 10
Konekesko 1 1
* In 2015, 45 (46) Rautia stores also operated as K-maatalous stores
** Including online stores
In addition, the building and home improvement stores offer e-commerce services
to their customers.
Car trade
1-12/2015 1-12/2014 10-12/2015 10-12/2014
Net sales, € million 748 766 177 175
Operating profit excl. non-recurring
items, € million 26.1 28.9 3.8 5.2
Operating margin excl. non-recurring
items, % 3.5 3.8 2.1 3.0
Capital expenditure, € million 16.0 13.2 4.7 2.5
Net sales, € million 1-12/2015 Change, % 10-12/2015 Change, %
VV-Auto 748 -2.4 177 +1.5
January-December 2015
The profitability of the car trade continued at a good level in 2015 and
Volkswagen was the market leader in
Finland
in passenger cars and vans.
The net sales of the car trade for January-December were €748 million (€766
million), down 2.4%. In January-December, the combined market performance of
first time registered passenger cars and vans was 2.8% (3.1%). The combined
market share of passenger cars and vans imported by VV-Auto was 19.1% (20.7%) in
January-December.
The profitability of the car trade remained at a good level. The operating
profit excluding non-recurring items for January-December was €26.1 million
(€28.9 million).
The operating profit for January-December was €26.1 million (€28.9 million).
The capital expenditure of the car trade in January-December was €16.0 million
(€13.2 million).
October-December 2015
The net sales of the car trade for October-December were €177 million (€175
million), up 1.5%. In October-December, the combined market share of passenger
cars and vans imported by VV-Auto was 18.5% (20.7%).
The profitability of the car trade remained at a good level. The operating
profit excluding non-recurring items for October-December was €3.8 million (€5.2
million).
The operating profit for October-December was €3.8 million (€5.2 million).
The capital expenditure of the car trade in October-December was €4.7 million
(€2.5 million).
Store numbers at 31.12. 2015 2014
VV-Auto, retail trade 9 10
Changes in the Group composition
During the reporting period, Kesko Corporation sold its subsidiary Anttila Oy
(Stock exchange release on 16 March 2015). As part of the real estate
arrangement completed in June, 11 real estate companies were sold.
Shares, securities market and Board authorisations
At the end of December 2015, the total number of Kesko Corporation shares was
100,019,752, of which 31,737,007, or 31.7%, were A shares and 68,282,745, or
68.3%, were B shares. At 31 December 2015, Kesko Corporation held 877,577 own B
shares as treasury shares. These treasury shares accounted for 1.29% of the
number of B shares, 0.88% of the total number of shares, and 0.23% of votes
attached to all shares of the company. The total number of votes attached to all
shares was 385,652,815. Each A share carries ten (10) votes and each B share one
(1) vote. The company cannot vote with own shares held by it as treasury shares
and no dividend is paid on them. At the end of December 2015, Kesko
Corporation's share capital was €197,282,584.
The price of a Kesko A share quoted on Nasdaq Helsinki was €28.56 at the end of
2014, and €31.12 at the end of 2015, representing an increase of 9.0%.
Correspondingly, the price of a B share was €30.18 at the end of 2014, and
€32.37 at the end of 2015, representing an increase of 7.3%. In January-
December, the highest A share price was €38.13 and the lowest was €26.94. The
highest B share price was €41.04 and the lowest was €28.30. The Nasdaq Helsinki
All-Share index (OMX Helsinki) was up by 10.8% and the weighted OMX Helsinki Cap
index by 11.7% in January-December. The Retail Sector Index was up by 6.4%.
At the end of December 2015, the market capitalisation of A shares was €988
million, while that of B shares was €2,182 million, excluding the shares held by
the parent company. The combined market capitalisation of A and B shares was
€3,170 million, an increase of €232 million from the end of 2014. In January-
December 2015, a total of 2.4 million (2.0 million) A shares were traded on
Nasdaq Helsinki, an increase of 19.4%. The exchange value of A shares was €75
million. The number of B shares traded was 59.4 million (47.3 million), an
increase of 25.5%. The exchange value of B shares was €1,994 million. Nasdaq
Helsinki
accounted for 57% of Kesko A and B share trading in January-December
2015. Kesko shares were also traded on multilateral trading facilities, the most
significant of which were BATS Chi-X with 37% and Turquoise with 6% of the
trading (source: Fidessa).
On 13 April 2015, the Annual General Meeting approved a share issue
authorisation which cancelled the authorisation, identical in substance, granted
by the General Meeting of 16 April 2012. In consequence, the Board has the
authority, granted by the Annual General Meeting of 13 April 2015 and valid
until 30 June 2018, to issue a total maximum of 20,000,000 new B shares. The
shares can be issued against payment to be subscribed by shareholders in a
directed issue in proportion to their existing holdings of the company shares
regardless of whether they hold A or B shares, or, deviating from the
shareholder's pre-emptive right, in a directed issue, if there is a weighty
financial reason for the company, such as using the shares to develop the
company's capital structure and financing possible acquisitions, capital
expenditure or other arrangements within the scope of the company's business
operations. The amount paid for the shares is recognised in the reserve of
invested non-restricted equity. The authorisation also includes the Board's
authority to decide on the share subscription price, the right to issue shares
for non-cash consideration and the right to make decisions on other matters
concerning share issues.
In addition, the Board has the authority, valid until 30 June 2017, to decide on
the transfer of a maximum of 1,000,000 own B shares held by the company as
treasury shares. On 9 February 2015, the Board decided to grant own B shares
held by the company as treasury shares to persons included in the target group
of the 2014 vesting period, based on the valid authority to issue treasury
shares granted by the Annual General Meeting held on 8 April 2013 and the
fulfilment of the vesting criteria of the 2014 vesting period of Kesko's three-
year share-based compensation plan. This transfer of a total of 120,022 own B
shares was announced in a stock exchange release on 1 April 2015 and 7 April
2015. Based on the 2014-2016 share-based compensation plan decided by the Board,
a total maximum of 600,000 own B shares held by the company as treasury shares
can be granted within a period of three years based on the fulfilment of the
vesting criteria. The Board will separately decide on the vesting criteria and
target group for each vesting period. The share-based compensation plan was
announced in a stock exchange release on 4 February 2014.
In January-December, a total of 2,284 shares granted based on share-based
compensation plans (the 2011-2013 and the 2014-2016 share-based compensation
plans) was returned to the company in accordance with the terms and conditions
of the share-based compensation plans. The returns during the reporting period
were notified in a stock exchange notification on 23 March 2015, 4 September
2015 and 16 December 2015.
At the end of December 2015, the number of shareholders was 39,529, which is
340 less than at the end of 2014. At the end of December, foreign ownership of
all shares was 27%. Foreign ownership of B shares was 39% at the end of
December.
Flagging notifications
On 23 December 2015, Kesko Corporation received a notification according to
which the total voting rights in respect of shares in Kesko held by K-Retailers'
Association had exceeded 10 per cent on 23 December 2015. The matter was
announced in a stock exchange release on 23 December 2015.
Key events during the reporting period
Kesko sold the department store chain Anttila Oy to the German investment fund
4K INVEST for €1 million. The transaction included all assets and liabilities in
Anttila Oy. Anttila Oy's approximately 1,500 employees continued in the
employment of the company. The date of the transaction was 16 March 2015. (Stock
exchange release on 16 March 2015)
Kesko Corporation, the Swedish life insurance company AMF Pensionsförsäkring AB
and Ilmarinen Mutual Pension Insurance Company set up a joint venture named
Ankkurikadun Kiinteistöt Oy. The joint venture owns, manages and develops store
sites acquired for it, primarily in use by Kesko Group. (Stock exchange release
on 8 May 2015 and 11 June 2015)
Kesko's Board of Directors decided on the new strategy which is aimed at
achieving profitable growth in three strategic areas: the grocery trade, the
building and home improvement trade and the car trade. At the same time,
financial targets in accordance with Kesko's new strategy were announced. (Stock
exchange release on 27 May 2015)
Kesko announced its plan to merge Kesko Food Ltd and Rautakesko Ltd with the
Group's parent company as part of the Group structure simplification. Merging
the two largest division parent companies in terms of net sales with the Group's
parent company is a step forward in implementing the strategy for a more unified
Kesko. (Stock exchange release on 22 July 2015)
Kesko agreed to centralise the Baltic operations in its
Lithuania
-based
subsidiary, UAB Senuku Prekybos centras (Senukai). The plan is to implement the
integration in such a way that Kesko will sell the shares in its wholly owned
companies responsible for the operations of K-rauta stores in
Estonia
and
Latvia
to Senukai. The ownership arrangement is planned to be implemented in early
2016. The implementation is subject to the approval of the competition
authority. (Stock exchange release on 4 November 2015)
Kesko Corporation's subsidiary Kesko Food Ltd made an agreement to acquire the
whole share capital of Suomen Lähikauppa Oy from the private equity investment
firm Triton. The net sales of Suomen Lähikauppa in 2014 were €999.2 million, it
has 643 Siwa and Valintatalo stores and 4,100 employees. The transaction price
of the debt-free acquisition, structured as a share purchase, is approximately
€60 million. The completion of the acquisition is subject to the approval of the
Finnish Competition and Consumer Authority and the fulfilment of the other terms
and conditions of the transaction. The handling of the matter and the
acquisition are expected to be completed in the first half of 2016. (Stock
exchange releases on 18 November 2015)
Voimaosakeyhtiö SF commenced arbitration proceedings in which Voimaosakeyhtiö SF
demands that the court of arbitration confirm that Kesko Corporation's group
company Kestra Kiinteistöpalvelut Oy is committed to the future financing of
Fennovoima Ltd's Hanhikivi nuclear power project. Kestra Kiinteistöpalvelut Oy
considers Voimaosakeyhtiö SF's claims to be unfounded. (Stock exchange release
on 17 December 2015)
Events after the reporting period
Kesko Corporation made an agreement to acquire Onninen Oy's whole share capital
from Onvest Oy. The pro forma net sales of the business to be acquired were
€1,438 million and the EBITDA was €39 million for the period from October 2014
until the end of September 2015. The transaction price of the debt-free
acquisition, structured as a share purchase, is €369 million. Onninen's steel
business and Russian subsidiary are not included in the acquisition. The
completion of the acquisition is subject to the approval of the competition
authorities and the fulfilment of the other terms and conditions of the
transaction. The acquisition is estimated to be completed during the first half
of 2016. (Stock exchange release on 12 January 2016)
Resolutions of the 2015 Annual General Meeting and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting, held on 13 April 2015, adopted the
financial statements and the consolidated financial statements for 2014 and
discharged the Board members and the Managing Director from liability. The
General Meeting also resolved to distribute a dividend of €1.50 per share as
proposed by the Board, or a total amount of €148,715,547.00. The dividend pay
date was 22 April 2015. The General Meeting resolved to leave the number of
Board members unchanged at seven. The General Meeting resolved to elect
retailer, Business College Graduate Esa Kiiskinen, Master of Science in
Economics, retailer Tomi Korpisaari, retailer, Secondary School Graduate Toni
Pokela, eMBA Mikael Aro (new member), Master of Science in Economics Matti
Kyytsönen (new member), Master of Science in Economics Anu Nissinen (new member)
and Master of Laws Kaarina Ståhlberg (new member) as Board members for a three-
year term expiring at the close of the 2018 Annual General Meeting in accordance
with the Articles of Association. In addition, the General Meeting resolved to
leave the Board members' fees and the basis for reimbursement of expenses
unchanged.
The General Meeting elected the firm of auditors PricewaterhouseCoopers Oy,
Authorised Public Accountants, as the company's auditor, with APA Mikko Nieminen
as the auditor with principal responsibility. The General Meeting also approved
the Board's proposals for the Board's authorisation to issue of a total maximum
of 20,000,000 new B shares until 30 June 2018, and its authorisation to decide
on donations in a total maximum of €300,000 for charitable or corresponding
purposes until the Annual General Meeting to be held in 2016.
After the Annual General Meeting, Kesko Corporation's Board of Directors held an
organisational meeting in which it elected retailer, Business College Graduate
Esa Kiiskinen as its Chair and eMBA Mikael Aro as its Deputy Chair. Master of
Laws Kaarina Ståhlberg (Ch.), eMBA Mikael Aro (Dep. Ch.) and Master of Science
in Economics Matti Kyytsönen were elected to the Board's Audit Committee. Esa
Kiiskinen (Ch.), Mikael Aro (Dep. Ch.) and Master of Science in Economics Anu
Nissinen were elected to the Board's Remuneration Committee.
The resolutions of Annual General Meeting and the decisions of the Board's
organisational meeting were announced in more detail in stock exchange releases
on 13 April 2015.
Responsibility
Kesko was the best trading sector company (Food & Staples Retailing) on 'The
Global 100 Most Sustainable Corporations' list in 2015 and 2016. In 2015, Kesko
placed 5(th) and in 2016, 15(th) on the list.
In November 2015, Kesko rose to CDP's Climate A List for the first time. The
globally established list consists of 113 selected leading companies considered
to be operating in an exemplary manner in the mitigation of climate change.
In 2015, Kesko continued to conduct human rights impact assessments in
compliance with the UN's Guiding Principles on Business and Human Rights.
Kesko aims to identify the entire supply chain of products, while also ensuring
that the ingredients are responsibly sourced. In 2015, the origin of the
ingredients in the Pirkka and K-Menu own brand products was assessed.
In February 2015, Plan International, an organisation promoting children's
rights, and Kesko launched a joint initiative to improve the sustainability of
Thailand's
fish industry and the position of migrant workers. The agreement on
cooperation was made for the years 2015-2018.
In September 2015, Kesko's grocery trade, Gasum, Myllyn Paras and Wursti entered
into cooperation where biogas produced from inedible biowaste collected from
retail stores will be utilised as energy in the manufacture of new Pirkka
products.
The Blue and White Footprint campaign of the Association for Finnish Work
continued in 2015, when the K-rauta and Rautia stores joined the K-food stores
in the campaign. The objective of the campaign is to increase the sales of
Finnish products and the awareness of the positive effects of buying Finnish
work.
In spring 2015, the K-Group and the Ruokatieto association organised Local Food
Dates (Lähiruokatreffit) on six localities in
Finland
. These events are aimed to
provide retailers and local producers an opportunity to network and improve the
offering of local products in K-food stores.
During 2015, Kesko created the 'Thank the Producer' operating model, which aims
to draw attention to the position of producers and increase the appreciation of
Finnish production. When buying groceries for Christmas, customers had a chance
to buy a 'Thank the Producer' card. The full proceeds from the sale of the cards
were tripled and remitted to Finnish pig farmers in cooperation with the Central
Union of Agricultural Producers and Forest Owners (MTK) and meat companies.
K-stores were the main partners of the Finnish Red Nose Day and raised a record
amount of €420,000 for the campaign in 2015. For a third time, Kesko and K-
stores participated in the Salvation Army's Christmas Kettle Collection to help
those in need. K-food stores also participated in the Happy Christmas Spirit
collection organised by the Finnish Red Cross and the Mannerheim League for
Child Welfare.
Risk management
Risk management in Kesko Group is guided by the risk management policy approved
by Kesko's Board of Directors. The policy defines the goals and principles,
organisation, responsibilities and practices of risk management in Kesko Group.
The management of financial risks is based on the Group's finance policy
confirmed by Kesko's Board of Directors. The business division and Group
managements are responsible for the execution of risk management. Kesko Group
applies a business-oriented and comprehensive approach to risk assessment and
management. This means that key risks are systematically identified, assessed,
managed, monitored and reported at the Group, division, company and unit levels
in all operating countries.
Kesko Group's risks are considered by the Kesko Board's Audit Committee in
connection with the quarterly interim reports and the financial statements. The
Audit Committee Chair reports on risk management to the Board as part of the
Audit Committee report. The most significant risks and uncertainties are
reported to the market by the Board in the Report by the Board of Directors and
any material changes in them in the interim reports.
The following describes the risks and uncertainties assessed as significant.
Significant risks and uncertainties
Continuous decline of purchasing power and demand especially in
Finland
The weak outlook for the Finnish economy, increases in taxes and public payments
resulting from the indebtedness of the public sector, coupled with increasing
unemployment, weaken purchasing power and consumer confidence and may cause a
long-term decline in the level of demand. This would have negative repercussions
especially on Kesko's home improvement and speciality goods trade and car trade
in
Finland
. In the food trade, price is increasingly important.
Weakening of the Russian economy and operating conditions
The level of uncertainty regarding economic development in
Russia
is high and
political and country risks in
Russia
have risen. The fall of crude oil prices
cuts the revenues of the Russian state. The low exchange rate of the rouble
weakens purchasing power, demand and profitability, and strong fluctuations in
the exchange rate increases hedging costs. The economic sanctions imposed by the
EU and the
USA
make it difficult to get financing in
Russia
.
Russia's
counter-
sanctions have impacts especially on food stores' operations and raise the price
level in
Russia
even on a wider scale. Unpredictability of officials and rapid
changes in laws and their application, as well as unexpected changes in the
operating environment can make business operations more difficult and delay
expansion.
Decline in price levels and intensification of price competition in the Finnish
food trade
The level of food prices in
Finland
declined in 2015. As consumers' purchasing
power has decreased, competition has become more intense and stores have lowered
their prices in order to increase market shares. The decline in price levels and
the intensified price competition can weaken the profitability of Kesko's
grocery trade and retailers.
Acquisitions in progress
After completion, the acquisitions of Suomen Lähikauppa Oy and Onninen Oy will
provide a significant business opportunity for Kesko, but they also entail
risks. The takeover and integration of the companies into Kesko will be
demanding, long lasting processes and their success will impact on the
achievement of the objectives set for sales, profit and synergies.
Strong change in the trading sector caused by digitalisation
E-commerce and online services are becoming increasingly popular in the retail
trade, especially in the speciality goods trade. International e-commerce
increases price transparency and consumers' alternatives at the same time when
making decisions to buy products and services and buying and marketing them
become more personalised and increasingly take place online. The achievement of
business objectives requires an active approach and strong expertise in the
development of online services and online stores that are attractive to
customers and the adoption of a multichannel approach with supporting electronic
customer communications. The risk is that some of the traditional brick and
mortar stores become unprofitable and that the progress of e-commerce and online
service development projects is outpaced by competitors, or that competing
online stores and online services are found more attractive by customers. In
addition, competition can be intensified by companies entering the value chain
of trade by introducing new business models. For the food trade, the challenges
in the development of e-commerce include the cost effectiveness of logistic
models and the suitability of the existing store sites for e-commerce.
Business interruptions and information system failures
The trading sector is characterised by increasingly complicated and long supply
chains and a higher dependency on information systems, data communications and
external service providers. Extended failures in information systems and payment
transfers, or in other parts of the supply chain, can cause significant losses
in sales and weaken customer satisfaction.
Retailers' operating conditions
Kesko's chain operations are, contrary to those of most competitors, based on a
retailer business model to a significant extent. The competitive advantages of
the retailer business model include the retailer's local expertise and ability
to rapidly respond to changes in customer needs or competitive situations.
Decision-making concerning the development of the chains' operations and the
implementation of changes in business operations can, however, be outpaced by
competitors. A prolonged decline in the level of demand and sales can weaken the
profitability and performance of retailer operations in
Finland
.
Store sites
With a view to increasing the market share, good store sites are a key
competitive factor. The acquisition of store sites can be delayed by town
planning and permit procedures and the availability and pricing of sites.
Considerable amounts of capital or lease liabilities are tied up in store
properties for years. When the share of e-commerce grows, the market situation
changes, or a chain concept proves inefficient there is a risk that a store site
becomes unprofitable and operations are discontinued while long-term liabilities
remain.
Product safety and supply chain quality
A failure in product safety control or in the quality assurance of the supply
chain can result in financial losses, the loss of customer confidence or, in the
worst case, a health hazard to customers.
Employee competencies and working capacity
The implementation of strategies and the achievement of objectives require
competent and motivated personnel. There is a risk that the trading sector does
not attract the most competent people. The acquisitions in progress as well as
other significant business and development projects, coupled with an increased
need for special competencies increase the key-person risk and the dependency on
individual expertise.
Suppliers and distribution channels
In divisions strongly dependent on individual principals and suppliers, such as
the car and machinery trade, ownership arrangements and changes in the strategy
of a principal or supplier, in product selections, product pricing and
distribution channel solutions can mean weakened competitiveness, or a loss of
sales or business.
Crime and malpractice
Crimes are increasingly committed through data networks and crime has become
more international and professional. A failure, especially if it affects the
security of payment transactions and personal information, can cause losses,
claims for damages and reputational harm. There is a risk that controls against
such crime are not sufficient.
Responsible operating practices and reputation management
Various aspects of corporate responsibility, such as the ethicality of
production and purchasing, fair and equal treatment of employees and
environmental protection are increasingly important to customers. Any failures
of responsibility would result in negative publicity for Kesko. Kesko's
challenges in corporate responsibility work include communicating its
responsibility principles to suppliers, retailers and customers, and ensuring
responsibility in the supply chain.
Compliance with laws and agreements
Compliance with laws and agreements is an important part of Kesko's
responsibility. Non-compliance can result in fines, claims for damages and other
financial losses, and a loss of confidence and reputation.
Reporting to the market
Kesko's objective is to produce and publish reliable and timely information. If
any information published by Kesko proved to be incorrect, or communications
failed to meet regulations in other respects, it could result in losing investor
and other stakeholder confidence and in possible sanctions. Tight disclosure
schedules and the dependency on information systems create challenges to the
accuracy of financial information.
Risks of damage
Accidents, natural phenomena and epidemics can cause damages or business
interruptions that cannot be prevented. There is also the risk that insurance
policies do not cover all unexpected accidents and damages.
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 (1-12/2016) in comparison with the 12 months preceding the
reporting period (1-12/2015).
The general economic situation and the expected trend in consumer demand vary in
Kesko's different operating countries. In
Finland
, owing to the weak trend in
consumers' purchasing power, the trading sector's performance is expected to
remain modest in all product lines, which may be complicated further by actions
taken to balance the public finances. In the Finnish grocery trade, intense
competition is expected to continue. The market for the Finnish building and
home improvement trade and car trade is expected to remain weak. With respect to
foreign countries, the economic situation and consumers' purchasing power, as
well as the outlook in
Russia
have weakened further. Whereas in
Sweden
and
Norway
and the Baltic countries, the market is expected to grow.
Kesko Group's net sales for 2016 are expected to equal the level of the previous
year. The operating profit excluding non-recurring items for 2016 is expected to
slightly exceed the level of 2015.
The future outlook does not take account of the acquisitions of Suomen
Lähikauppa and Onninen, in respect of which estimates will be given in
connection with their respective completions.
Proposal for profit distribution
The parent's distributable profits are €1,101,724,265.47, of which the profit
for the financial year is €161,817,870.11.
The Board of Directors proposes to the Annual General Meeting to be held on 4
April 2016 that a dividend of €2.50 per share be paid on shares held outside the
company at the date of dividend distribution. No dividend is paid on own shares
held by the company as treasury shares at the record date of dividend
distribution.
At the date of the proposal for distributions of profits, 2 February 2016, a
total of 99,142,175 shares were held outside the Company, amounting to a total
dividend of €247,855,437.50.
Annual General Meeting
The Board of Directors decided to convene the Annual General Meeting at
Messukeskus Helsinki, on 4 April 2016 at 13.00. Kesko Corporation will publish a
notice of the General Meeting at a later date.
Annual Report 2015 and Corporate Governance Statement
Kesko will publish the Annual Report for 2015 on week 10 on its website at
www.kesko.fi. The report contains a strategic review, the Report by the Board of
Directors and the financial statements for 2015, the responsibility reporting
indicators (GRI), Kesko's Corporate Governance Statement and Remuneration
Statement.
Helsinki
, 2 February 2016
Kesko Corporation
Board of Directors
The information in the financial statements release is unaudited.
Further information is available from Jukka Erlund, Senior Vice President, Chief
Financial Officer, telephone +358 105 322 113, and Eva Kaukinen, Vice President,
Group Controller, telephone +358 105 322 338. A Finnish-language webcast of the
results briefing to the media and analysts can be accessed at www.kesko.fi, at
11.00. An English-language audio conference on the results will be held today at
14.30 (Finnish time). The audio conference login is available on Kesko's website
at www.kesko.fi.
Kesko Corporation's interim report for January-March will be published on 27
April 2016. In addition, Kesko Group's sales figures are published each month.
News releases and other company information are available on Kesko's website at
www.kesko.fi.
KESKO CORPORATION
Merja Haverinen
Vice President, Group Communications
ATTACHMENTS: TABLES SECTION
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Group's performance indicators
Net sales by segment
Operating profit by segment
Operating profit excl. non-recurring items by segment
Operating margin excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Change in tangible and intangible assets
Related party transactions
Fair value hierarchy of financial assets and liabilities
Personnel average and at the end of the reporting period
Group's commitments
Calculation of performance indicators
K-Group's retail and B2B sales
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main news media
www.kesko.fi
TABLES SECTION
Accounting policies
This financial statements release has been prepared in accordance with the IAS
34 standard. The financial statements release has been prepared in accordance
with the same principles as the annual financial statements for 2014.
Consolidated income
statement (€ million),
condensed
1-12/ 1-12/ Change, % 10-12/ 10-12/ Change,
2015 2014 2015 2014
%
Net sales 8,679 9,071 -4.3 2,166 2,267 -4.4
Cost of
goods sold -7,540 -7,832 -3.7 -1,875 -1,948 -3.7
Gross profit 1,139 1,238 -8.1 291 319 -8.8
Other operating income 800 729 9.7 178 199 -10.3
Employee benefit
expense -545 -614 -11.3 -138 -162 -14.9
Depreciation and
impairment charges -137 -195 -29.9 -40 -62 -35.2
Other operating
expenses -1,063 -1,007 5.5 -252 -262 -3.9
Operating profit 195 151 28.6 39 32 24.0
Interest income and
other finance income 10 14 -24.5 3 2 36.2
Interest expense and
other finance costs -14 -16 -8.6 -2 -4 -35.6
Exchange differences -3 -4 -24.0 0 -4 -99.4
Share of
results of equity
accounted investments 1 0 (..) 1 0 (..)
Profit before tax 188 145 29.6 41 26 54.6
Income tax -71 -37 93.3 -14 -5 (..)
Net profit for the
period 117 108 8.2 27 21 27.5
Attributable to
Owners of the parent 102 96 5.8 22 17 30.1
Non-controlling
interests 16 12 26.5 5 4 17.6
Earnings per share (€)
for profit
attributable to
equity holders of the
parent
Basic 1.03 0.97 5.7 0.22 0.17 30.0
Diluted 1.03 0.97 5.9 0.22 0.17 30.2
Consolidated statement
of comprehensive
income (€ million)
1-12/ 1-12/
2015 2014 Change,% 10-12/ 2015 10-12/ 2014 Change, %
Net profit for the
period 117 108 8.2 27 21 27.5
Items that will not be
reclassified
subsequently to profit
or loss
Actuarial gains/losses 23 -20 (..) 22 -18 (..)
Items that may be
reclassified
subsequently to profit
or loss
Exchange differences
on translating foreign
operations -17 -28 -37.6 -4 -20 -78.8
Adjustment for
hyperinflation - 4 - - 0 -
Cash flow hedge
revaluation 0 1 (..) 1 0 (..)
Revaluation of
available-for-sale
financial assets 1 -3 (..) 0 0 (..)
Other items 0 0 33.3 - - -
Total other
comprehensive income
for the period,
net of tax 6 -45 (..) 18 -38 (..)
Total comprehensive
income for the period 124 63 96.2 45 -17 (..)
Attributable to
Owners of the parent 119 49 (..) 41 -20 (..)
Non-controlling
interests 5 14 -64.0 4 3 42.5
(..) Change over 100%
Consolidated statement of financial position (€
million), condensed
31.12.2015 31.12.2014 Change, %
ASSETS
Non-current assets
Tangible assets 1,282 1,624 -21.1
Intangible assets 168 178 -5.3
Equity accounted investments and other financial
assets 115 105 8.7
Loans and receivables 67 11 (..)
Pension assets 176 147 19.8
Total 1,808 2,066 -12.5
Current assets
Inventories 735 776 -5.3
Trade receivables 582 584 -0.4
Other receivables 127 173 -26.6
Financial assets at fair value
through profit or loss 374 219 70.7
Available-for-sale financial assets 372 272 36.8
Cash and cash equivalents 141 107 32.0
Total 2,331 2,131 9.4
Non-current assets held for sale 0 1 -16.7
Total assets 4,139 4,198 -1.4
31.12.2015 31.12.2014 Change, %
EQUITY AND LIABILITIES
Equity 2,163 2,184 -0.9
Non-controlling interests 79 82 -3.8
Total equity 2,242 2,265 -1.0
Non-current liabilities
Interest-bearing liabilities 258 319 -19.1
Non-interest-bearing liabilities 42 11 (..)
Deferred tax liabilities 71 67 5.9
Pension obligations 1 2 -52.8
Provisions 16 27 -41.6
Total 388 426 -8.8
Current liabilities
Interest-bearing liabilities 181 180 0.7
Trade payables 795 795 0.1
Other non-interest-bearing liabilities 495 490 1.1
Provisions 38 42 -10.1
Total 1,509 1,506 0.2
Total equity and liabilities 4,139 4,198 -1.4
(..) Change over 100%
Consolidated statement of changes in equity (€ million)
Share Res- Cur- Re- Trea- Re- Non- Total
capi- erves rency valu- sury tained cont-
tal trans- ation sha-res earn- rolling
lation reserve ings inte-
differ- rests
ences
Balance at
1.1.2014 197 461 -13 1 -18 1,651 73 2,352
Shares
subscribed
with options 2 2
Treasury shares -16 -16
Share-based
payments 2 0 2
Dividends -138 -5 -143
Other changes 0 0 5 0 5
Net profit for
the period 96 12 108
Other comprehen-
sive income
Items that will
not be
reclassified
subsequently to
profit or loss
Actuarial
gains/losses -25 -25
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences
on translating
foreign
operations 0 -25 -3 -28
Adjustment for
hyperinflation 0 4 4
Cash flow
hedge
revaluation 1 1
Revaluation of
available-for-
sale financial
assets -3 -3
Others 0 0
Tax related to
comprehensive
income 0 5 4
Total other
comprehensive
income 0 -25 -2 -19 1 -45
Balance at
31.12.2014 197 463 -38 -1 -31 1,594 82 2,265
Balance at
1.1.2015 197 463 -38 -1 -31 1,594 82 2,265
Shares
subscribed
with options
Treasury shares 0 0
Share-based
payments 4 4
Dividends -149 -7 -156
Acquisition of
minority interest 0 0 -1 -1
Other changes 0 0 5 0 5
Net profit for
the period 102 16 117
Other comprehen-
sive income
Items that will
not be
reclassified
subsequently to
profit or loss
Actuarial
gains/losses 29 29
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences
on translating
foreign
operations 0 -7 -11 -17
Cash flow
hedge
revaluation 0 0
Revaluation of
available-for-
sale financial
assets 1 1
Others 0 0
Tax related to
comprehensive
income 0 -6 -6
Total other
comprehensive
income 0 -7 1 23 -11 6
Balance at
31.12.2015 197 463 -45 0 -27 1,575 79 2,242
Consolidated statement of cash flows (€ million), condensed
1-12/ 1-12/ Change,% 10-12/ 2015 10-12/ 2014 Change, %
2015 2014
Cash flows from operating
activities
Profit before tax 188 145 29.6 41 26 54.6
Depreciations according
to plan 128 151 -15.4 31 38 -19.0
Finance income and costs 7 6 16.0 -1 5 (..)
Other adjustments 40 63 -36.7 18 29 -36.9
Change in working capital
Current non-interest-
bearing
receivables, increase (-
)/
decrease (+) -2 32 (..) 47 76 -38.5
Inventories,
increase (-)/decrease (+) -44 -7 (..) -31 5 (..)
Current non-interest-
bearing
liabilities, increase
(+)/
decrease(-) 7 -21 (..) 31 -27 (..)
Financial items and tax -48 -65 -26.3 -13 -15 -16.3
Net cash from operating
activities 276 304 -9.2 123 137 -10.0
Cash flows from investing
activities
Investing activities -215 -194 11.0 -65 -43 51.9
Sales of fixed assets 432 11 (..) -6 3 (..)
Increase in non-current
receivables -1 0 (..) 0 1 -75.4
Net cash used in
investing activities 217 -182 (..) -71 -38 84.3
Cash flows from financing
activities
Interest-bearing
liabilities, increase
(+)/decrease (-) -61 -46 34.2 -25 4 (..)
Current interest-bearing
receivables, increase (-
)/
decrease (+) 2 -1 (..) 2 0 (..)
Dividends paid -156 -143 8.8 -1 -1 21.2
Equity increase - 2 - - - -
Purchase of treasury
shares - -16 - - - -
Short-term money market
investments, increase (-
)/ decrease (+) -269 -57 (..) 52 -21 (..)
Other items 19 7 (..) 5 1 (..)
Net cash used in
financing activities -466 -254 83.6 33 -17 (..)
Change in cash and cash
equivalents 28 -131 (..) 85 81 4.7
Cash and cash
equivalents and current
portion of available-for-
sale financial assets at
1 Jan. 313 453 -30.8 254 239 6.3
Currency translation
difference adjustment and
revaluation -7 -8 -15.4 -5 -7 -28.1
Cash and cash
equivalents and current
portion of available-for-
sale financial assets at
31 Dec. 334 313 6.6 334 313 6.6
(..) Change over 100%
Group's performance indicators
1-12/2015 1-12/2014 Change, pp
Return on capital employed, % 9.3 6.4 2.9
Return on capital employed
excl. non-recurring items, % 11.7 9.9 1.9
Return on equity, % 5.2 4.7 0.5
Return on equity excl. non-recurring items, % 8.2 7.6 0.6
Equity ratio, % 54.7 54.5 0.2
Gearing, % -20.0 -4.4 -15.6
Change, %
Capital expenditure, € million 218.5 194.0 12.6
Capital expenditure, % of net sales 2.5 2.1 17.7
Earnings per share, basic, € 1.03 0.97 5.7
Earnings per share, diluted, € 1.03 0.97 5.9
Earnings per share excl. non-recurring items,
basic, € 1.70 1.65 3.5
Cash flow from operating activities,
€ million 276 304 -9.2
Cash flow from investing activities,
€ million 217 -182 (..)
Equity per share, € 21.82 22.05 -1.1
Interest-bearing net debt, € million -448 -99 (..)
Diluted number of shares, average for the
reporting period, 1,000 pcs 99,114 99,161 0.0
Personnel, average 18,955 19,976 -5.1
(..) Change over 100%
Group's performance 4-6/ 10-12/ 7-9/ 10-12/
indicators by quarter 1-3/ 7-9/ 1-3/
2014 2014 2014 2014 2015 4-6/ 2015 2015 2015
Net sales, € million 2,129 2,371 2,304 2,267 2,082 2,227 2,203 2,166
Change in net sales, % -1.4 -2.1 -2.9 -4.0 -2.2 -6.0 -4.4 -4.4
Operating profit, €
million -13.0 69.4 63.4 31.7 -103.6 175.8 83.1 39.3
Operating margin, % -0.6 2.9 2.7 1.4 -5.0 7.9 3.8 1.8
Operating profit excl.
non- recurring items, €
million 19.1 67.6 84.0 61.9 26.5 76.4 82.5 59.1
Operating margin
excl. non-recurring
items, % 0.9 2.9 3.6 2.7 1.3 3.4 3.7 2.7
Finance income/costs,
€ million -1.6 2.2 -1.8 -5.0 -0.3 -4.2 -3.5 0.9
Profit before tax, €
million -14.4 71.4 61.7 26.4 -103.7 172.1 78.8 40.7
Profit before tax, % -0.7 3.0 2.7 1.2 -5.0 7.7 3.6 1.9
Return on capital
employed, % -2.2 11.5 10.9 5.5 -18.1 31.9 17.6 8.2
Return on capital
employed, excl. non-
recurring items, % 3.2 11.2 14.4 10.7 4.6 13.9 17.5 12.4
Return on equity, % -2.0 9.4 8.1 3.7 -19.9 28.0 8.9 4.8
Return on equity, excl.
non-recurring items, % 2.3 9.1 11.3 8.0 3.1 10.6 10.6 9.2
Equity ratio, % 53.2 52.3 54.2 54.5 51.5 52.2 54.2 54.7
Capital expenditure,
€ million 43.4 55.7 51.7 43.2 51.5 58.6 41.5 66.9
Earnings per share,
diluted, € -0.11 0.51 0.41 0.17 -1.11 1.48 0.43 0.22
Equity per share, € 22.83 21.86 22.25 22.05 21.30 21.21 21.41 21.82
Segment information
Net sales by segment
1-12/ 1-12/
(€ million) 2015 2014 Change,% 10-12/ 2015 10-12/ 2014 Change, %
Grocery trade, Finland 4,566 4,650 -1.8 1,218 1,233 -1.3
Grocery trade,
other countries* 107 103 3.2 32 27 19.0
Grocery trade, total 4,673 4,754 -1.7 1,249 1,260 -0.9
- of which intersegment
trade 15 34 -54.9 3 9 -68.5
Home improvement and
speciality goods trade,
Finland 1,719 2,002 -14.1 376 475 -20.8
Home improvement and
speciality goods trade,
other countries* 1,530 1,566 -2.3 360 362 -0.6
Home improvement and
speciality goods trade
total 3,250 3,568 -8.9 736 837 -12.0
- of which intersegment
trade 1 0 (..) 0 0 (..)
Car trade, Finland 748 766 -2.4 177 175 1.5
Car trade total 748 766 -2.4 177 175 1.5
- of which intersegment
trade 0 0 -12.4 0 0 -8.1
Common operations and
eliminations 8 -18 (..) 4 -5 (..)
Finland total 7,042 7,401 -4.9 1,775 1,878 -5.5
Other countries total* 1,637 1,669 -1.9 391 389 0.7
Group total 8,679 9,071 -4.3 2,166 2,267 -4.4
(..) Change over 100%
* Net sales in countries other than
Finland
Operating profit by segment
1-12/ 1-12/
(€ million) 2015 2014 Change 10-12/ 2015 10-12/ 2014 Change
Grocery trade 249.4 216.2 33.2 53.4 59.1 -5.6
Home improvement and
speciality goods trade -57.2 -52.0 -5.2 -10.9 -1.5 -9.3
Car trade 26.1 28.9 -2.8 3.8 5.2 -1.4
Common operations and
eliminations -23.7 -41.7 18.0 -7.1 -31.1 23.9
Group total 194.6 151.4 43.2 39.3 31.7 7.6
Operating profit excl. non-
recurring items by segment 1-12/ 1-12/
(€ million) 2015 2014 Change 10-12/ 2015 10-12/ 2014 Change
Grocery trade 177.5 223.2 -45.8 54.5 62.2 -7.8
Home improvement and
speciality goods trade 63.6 0.4 63.2 7.5 3.7 3.8
Car trade 26.1 28.9 -2.8 3.8 5.2 -1.4
Common operations and
eliminations -22.7 -20.0 -2.8 -6.7 -9.3 2.6
Group total 244.5 232.6 11.8 59.1 61.9 -2.7
Operating margin
excl. non-recurring items by 1-12/ 1-12/ 10-12/ 10-12/
segment, % 2015 2014 Change, pp 2015 2014 Change, pp
Grocery trade 3.8 4.7 -0.9 4.4 4.9 -0.6
Home improvement and speciality
goods trade 2.0 0.0 1.9 1.0 0.4 0.6
Car trade 3.5 3.8 -0.3 2.1 3.0 -0.8
Group total 2.8 2.6 0.3 2.7 2.7 0.0
Capital employed by segment,
cumulative
average
1-12/ 1-12/ 10-12/ 10-12/
(€ million) 2015 2014 Change 2015 2014 Change
Grocery trade 871 1,007 (..) 733 984 (..)
Home improvement and speciality
goods trade 823 941 (..) 757 942 (..)
Car trade 104 96 7.4 120 91 29.2
Common operations and
eliminations 285 310 -25.4 297 306 -8.2
Group
total 2,083 2,354 (..) 1,907 2,323 (..)
Return on capital employed
excl. non-recurring items
1-12/ 1-12/
by segment, % 2015 2014 Changepp 10-12/ 2015 10-12/ 2014 Changepp
Grocery trade 20.4 22.2 -1.8 29.7 25.3 4.4
Home improvement and
speciality goods trade 7.7 0.0 7.7 4.0 1.6 2.4
Car trade 25.2 30.1 -4.9 12.6 22.7 -10.0
Group total 11.7 9.9 1.9 12.4 10.7 1.7
Capital expenditure
1-12/ 1-12/
by segment (€ million) 2015 2014 Change 10-12/ 2015 10-12/ 2014 Change
Grocery trade 129 98 31 30 21 9
Home improvement and
speciality goods trade 55 72 -17 29 20 9
Car trade 16 13 3 5 2 2
Common operations and
eliminations 18 11 7 3 0 4
Group total 219 194 25 67 43 24
Segment information by quarter
Net sales by segment 7-9/ 10-12/
1-3/ 4-6/ 7-9/ 10-12/ 1-3/
(€ million) 2014 2014 2014 2014 2015 4-6/ 2015 2015 2015
Grocery trade 1,102 1,202 1,190 1,260 1,103 1,149 1,171 1,249
Home improvement and
speciality goods trade 815 974 942 837 773 883 857 736
Car trade 218 199 175 175 210 190 170 177
Common operations and
eliminations -6 -5 -2 -5 -3 4 4 4
Group total 2,129 2,371 2,304 2,267 2,082 2,227 2,203 2,166
Operating profit by
segment 7-9/ 10-12/
1-3/ 4-6/ 7-9/ 10-12/ 1-3/
(€ million) 2014 2014 2014 2014 2015 4-6/ 2015 2015 2015
Grocery trade 44.3 54.4 58.3 59.1 35.2 115.8 45.0 53.4
Home improvement and
speciality goods trade -64.3 11.9 1.9 -1.5 -144.7 61.5 36.8 -10.9
Car trade 10.1 7.4 6.3 5.2 9.8 6.5 6.0 3.8
Common operations and
eliminations -3.1 -4.4 -3.2 -31.1 -3.9 -8.0 -4.6 -7.1
Group total -13.0 69.4 63.4 31.7 -103.6 175.8 83.1 39.3
Operating profit excl.
non-recurring items 7-9/ 10-12/
1-3/ 4-6/ 7-9/ 10-12/ 1-3/
by segment (€ million) 2014 2014 2014 2014 2015 4-6/ 2015 2015 2015
Grocery trade 45.4 55.3 60.3 62.2 34.9 43.3 44.8 54.5
Home improvement and
speciality goods trade -33.2 9.3 20.6 3.7 -14.2 34.5 35.8 7.5
Car trade 10.1 7.4 6.3 5.2 9.8 6.5 6.0 3.8
Common operations and
eliminations -3.1 -4.4 -3.2 -9.3 -3.9 -8.0 -4.1 -6.7
Group total 19.1 67.6 84.0 61.9 26.5 76.4 82.5 59.1
Operating margin excl.
non-recurring items 7-9/ 10-12/
1-3/ 4-6/ 7-9/ 10-12/ 1-3/
by segment, % 2014 2014 2014 2014 2015 4-6/ 2015 2015 2015
Grocery trade 4.1 4.6 5.1 4.9 3.2 3.8 3.8 4.4
Home improvement and speciality
goods trade -4.1 1.0 2.2 0.4 -1.8 3.9 4.2 1.0
Car trade 4.6 3.7 3.6 3.0 4.7 3.4 3.5 2.1
Group total 0.9 2.9 3.6 2.7 1.3 3.4 3.7 2.7
Change in tangible and intangible assets (€ million)
31.12.2015 31.12.2014
Opening net carrying amount 1,802 1,840
Depreciation, amortisation and impairment -137 -195
Investments in tangible and intangible assets 206 204
Disposals -408 -18
Currency translation differences -13 -29
Closing net carrying amount 1,451 1,802
Related party transactions (€ million)
The Group's related parties include its key management (the Board of Directors,
the Managing Director and the Group Management Board) and companies controlled
by them, the Group's subsidiaries, associates and joint ventures as well as
Kesko Pension Fund.
The following transactions were carried out with related parties:
1-12/2015 1-12/2014
Sales of goods and services 64 79
Purchases of goods and services 14 21
Other operating income 11 12
Other operating expenses 49 31
Finance income 3 0
31.12.2015 31.12.2014
Receivables 63 8
Liabilities 23 20
Fair value hierarchy of financial assets and liabilities (€ million)
Level Level 2 Level 3 31.12.2015
1
Financial assets at fair value through profit
or loss 215.1 159.1 374.2
Derivative financial instruments at fair value
through profit or loss
Derivative financial assets 13.3 13.3
Derivative financial liabilities 8.6 8.6
Available-for-sale financial assets 178.9 192.8 15.3 387.0
Fair value hierarchy of financial assets and liabilities (€ million)
Level Level 2 Level 3 31.12.2014
1
Financial assets at fair value through profit
or loss 23.7 195.6 219.3
Derivative financial instruments at fair value
through profit or loss
Derivative financial assets 31.5 31.5
Derivative financial liabilities 15.5 15.5
Available-for-sale financial assets 65.5 206.3 13.1 284.8
Level 1 instruments are traded in active markets and their fair values are
directly based on quoted market prices. The fair values of level 2 instruments
are derived from market data. The fair values of level 3 instruments are not
based on observable market data.
Personnel, average and as at 31.12.
Personnel average by
segment 1-12/2015 1-12/2014 Change
Grocery trade 6,420 6,176 244
Home improvement and speciality goods trade 11,269 12,524 -1,255
Car trade 780 825 -45
Common operations 487 451 36
Group total 18,955 19,976 -1,021
Personnel as at 31.12.*
by segment 2015 2014 Change
Grocery trade 8,364 8,157 207
Home improvement and speciality goods trade 12,270 14,286 -2,016
Car trade 783 823 -40
Common operations 518 528 -10
Group total 21,935 23,794 -1,859
* Total number including part-time employees
Group's commitments (€ million)
31.12.2015 31.12.2014 Change, %
Own commitments 152 202 -25.0
For associates and joint ventures - 65 -100.0
For others 15 11 32.6
Lease liabilities for machinery and
equipment 27 25 6.2
Lease liabilities for real estate 2,594 2,266 14.5
Liabilities arising from derivative
instruments
(€ million)
Fair value at
Values of underlying instruments at 31.12. 31.12.2015 31.12.2014 31.12.2015
Interest rate derivatives
Interest rate swaps 100 101 0.00
Currency derivatives
Forward and future contracts 237 328 6.90
Currency swaps 50 50 4.90
Commodity derivatives
Electricity derivatives 9 21 -7.22
Calculation of performance indicators
Return on capital employed*, %
Operating profit x 100 / (Non-current assets + Inventories + Receivables + Other
current assets - Non-interest-bearing liabilities) on average for the reporting
period
Return on capital employed excl. non- recurring items*, %
Operating profit excl. non-recurring items x 100 / (Non-current assets +
Inventories + Receivables + Other current assets - Non-interest-bearing
liabilities) on average for the reporting period
Return on equity*, %
(Profit/loss before tax - Income tax) x 100 /
Shareholders' equity
Return on equity excl. non-recurring items*, %
(Profit/loss adjusted for non-recurring items before tax - Income tax adjusted
for the tax effect of non-recurring items) x 100 / Shareholders' equity
Equity ratio, %
Shareholders' equity x 100 /
(Total assets - Prepayments received)
Earnings/share, diluted
(Profit/loss - Non-controlling interests) /
Average diluted number of shares
Earnings/share, basic
(Profit/loss - Non-controlling interests) /
Average number of shares
Earnings/share excl.
non-recurring items,
basic
(Profit/loss adjusted for non-recurring items - Non-controlling interests) /
Average number of shares
Equity/share
Equity attributable to equity holders of the parent /
Basic number of shares at the balance sheet date
Gearing, %
Interest-bearing net debt x 100 /
Shareholders' equity
Interest-bearing net debt
Interest-bearing liabilities - Money market investments - Cash and cash
equivalents
*Indicators for return on capital have been annualised
K-Group's retail and B2B sales* (VAT 0%) (preliminary data):
1.1.-31.12.2015 1.10.-31.12.2015
K-Group's retail and € million Change, % € million Change, %
B2B sales
K-Group's grocery trade
K-food stores, Finland 4,527 -1.7 1,164 -1.7
K-citymarket, non-food 575 -1.0 178 -0.9
Kespro 785 0.2 202 1.5
K-ruoka, Russia 106 3.1 32 18.9
Grocery trade, total 5,993 -1.3 1,575 -0.8
K-Group's home improvement and
speciality goods trade
K-rauta and Rautia 994 -0.9 228 4.6
Rautakesko B2B Service 192 2.7 49 8.3
K-maatalous 437 -5.5 113 4.2
Machinery trade, Finland 154 3.1 29 5.7
Speciality goods trade, Finland 492 -3.2 126 -4.5
Finland, total 2,270 -1.8 545 2.6
Home improvement and speciality goods
trade, other Nordic countries 873 0.6 212 5.9
Home improvement and speciality goods
trade, the Baltics 592 6.1 144 5.4
Home improvement and speciality goods
trade, other countries 320 -17.9 78 -14.5
Home improvement and speciality goods
trade, total 4,055 -1.7 978 2.1
K-Group's car trade
VV-Autotalot 373 -4.1 92 -2.6
VV-Auto, import 397 -0.1 92 9.4
Car trade, total 770 -2.1 184 3.0
Finland total 8,927 -1.5 2,272 0.1
Other countries, total 1,891 -1.4 465 2.4
Retail and B2B sales,
total 10,818 -1.5 2,737 0.5
* Excluding Anttila
Kesko_financial_statements_release_2015:
http://hugin.info/3055/R/1983304/726800.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kesko Oyj via GlobeNewswire
[HUG#1983304]
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