BUILDING AND TECHNICAL TRADE

  • LEADING OPERATOR IN NORTHERN EUROPE

Jorma Rauhala

President, Building and technical trade

Deputy CEO

Kesko Capital Markets Day 2022

A GOOD STRATEGY

KESKO GROWTH STRATEGY

BUILDING AND TECHNICAL TRADE GROWTH STRATEGY

FOCUS ON NORTHERN EUROPE

ONE UNIFIED

COUNTRY -SPECIFIC STRATEGIES:

CUSTOMER EXPERIENCE

FINLAND: GROWTH AND MARKET LEADERSHIP IN TECHNICAL TRADE, BUILDERS MERCHANT, DIY

SCANDINAVIA: GROWTH ESPECIALLY IN TECHNICAL TRADE AND BUILDERS MERCHANT. SELECTIVE PRESENCE IN DIY

DIGITALISATION

SUSTAINABILITY

POLAND AND BALTICS: GROWTH IN TECHNICAL TRADE

KESKO SENUKAI: LEADING DIY OPERATOR IN BALTICS

LEADING PLAYER IN BUILDING AND TECHNICAL

TRADE IN NORTHERN EUROPE

Total retail sales of €6.5 billion*, B2B accounts for over 80% of sales**

TECHNICAL TRADE

BUILDING AND HOME IMPROVEMENT TRADE

Net sales €2,231 million

Net sales €2,387 million

Operating profit

Operating profit €143.5 million

€170.7 million

Operating margin 6.0%

  • Operating margin 7.7%
  • Builders merchant for professional builders 67%

• 100% B2B

• DIY for consumers 33% of sales

  • Kesko Senukai joint venture
  • Leading DIY operator in the Baltics, 70% DIY ***
  • Kesko's share 50%
  • Retail sales €1,202 million*

Net sales and operating profit, Q3/2022 rolling 12 months

*Retail sales incl. B2B sales **excl. Kesko Senukai ***Kesko's estimate

3

STRONG GROWTH AND IMPROVING PROFITABILITY

5,000500

4,764

450

4,486

400

4,500

4,331

4,388

348

4,100

4,103

318

350

4,066

4,000

300

250

202

3,500

200

3,250

127

143

150

98

96

3,000

100

64

50

0

2,500

2015

2016

2017

2018

2019

2020

2021

Q3/2022, rolling 12

months

Operating

2.0%

2.4%

2.1%

3.1%

3.3%

5.0%

7.2%

7.3%

margin

Net sales

Operating profit

4 Onninen acquired in 2016, Russian operations divested in 2018, IFRS impact since 2018, Kesko Senukai reporting change 7/2020

REASONS BEHIND OUR SUCCESS

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Kesko Oyj published this content on 07 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2022 12:31:06 UTC.