review2015 by the presidentand ceo · 2015.03.31. 2016.03.31 45.00 40.00 35.00 30.00 25.00 20.00...
TRANSCRIPT
REVIEW 2015 BY THEPRESIDENT AND CEO
MIKKO HELANDER4.4.2016
Grocery trade• Finland• Kespro• Russia
Home improvement and specialitygoods trade• Building and home improvement
trade• Furniture trade• Leisure goods trade• Agricultural and machinery trade
Car trade• Import • Dealers
KESKO’S DIVISIONS
2
NET SALES €8.7 BILLION OPERATING PROFIT €244M
€4,673m€3,250m
€748m
Grocerytrade
Home improve-ment and specialitygoods trade
Car trade
54%37%
9%
€177.5m€63.6m
€26.1m
Grocerytrade
Home improve-ment and specialitygoods trade
Car trade
66%24%
10%
Excl. non-recurring items3
8,777 9,460 9,686 9,315 9,071 8,679
0
2000
4000
6000
8000
10000
1 2 3 4 5 6
NET SALES
4
€m
268 279230 239 233 244
0
100
200
300
1 2 3 4 5 6
OPERATING PROFIT EXCL. NON-RECURRING ITEMS
5
€m
• The €50 million savings programmeis progressing as planned
• Enhancement of operationscontinues
• The expense ratio is also improvedby increasing sales
OPERATIONS TO BE FURTHER ENHANCED
16,8 %17,0 %17,2 %17,4 %17,6 %17,8 %18,0 %18,2 %18,4 %
2010 2011 2012 2013 2014 2015
Expense ratio
Kulusuhde, Kesko-konserni ilman Anttilaa
18.4%18.2%18.0%17.8%17.6%17.4%17.2%17.0%16.8%
Expense ratio, Kesko Group excl. Anttila
6
RETURN ON CAPITAL EMPLOYEDEXCL. NON-RECURRING ITEMS
14.0 13.1
9.0 9.8 9.911.7
0
4
8
12
16
1 2 3 4 5 6
7
%
0.0
2.5
2.0
1.0
0.5
1.5
2.50
1.701.50
1.651.40
1.68
1.201.47
1.20
1.84
1.30
1.78
Dividend (for 2015, the Board of Directors’ proposal to the AGM)Earnings per share excl. non-recurring items
EARNINGS PER SHARE AND DIVIDEND€
2010 2011 2012 2013 2014 2015
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SHARE PRICE DEVELOPMENT
15,00
20,00
25,00
30,00
35,00
40,00
45,00
2011.03.31 2012.03.31 2013.03.31 2014.03.31 2015.03.31 2016.03.31
45.00
40.00
35.00
30.00
25.00
20.00
15.00
€
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RENEWING K-GROUP
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MEGATRENDS GUIDE RENEWAL
Consumers’ increased ability to make analytical decisions
Ageing of population, urbanisation, and the growthof single households
Responsibilityand the strongbrand areincreasinglyimportant
Digital services play a key role
International retail companiesconcentrating on a single productline arechallenging localoperators
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GROWTH STRATEGY
• Growth in the grocery trade particularly in Finland
• Growth and expansion in the building and technicaltrade in Europe
• Growth in the car trade particularly in Finland
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Real estatearrange-mentDivestment
of Anttila
Kesko Senukaiarrangementin the Baltic countries
Acquisition of Suomen Lähikauppa
Acquisition of Onninen
SIGNIFICANT ARRANGEMENTS
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RENEWALS IN THEGROCERY TRADE
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UNIQUE CHAIN OF NEIGHBOURHOOD STORES
• Our key strategic choice is growingour network of neighbourhood stores
• All the current over 400 K-market stores will be refurbished
• New stores will complement theexisting network
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• Suomen Lähikauppa has good store sitesin cities and population centres
• More than 600 Siwa and Valintatalo storeswill complement our network
We will bring the new era neighbourhood storecloser to every Finn than ever before
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AQCUISITON OF SUOMEN LÄHIKAUPPA WILL ACCELERATE THE IMPLEMENTATION OF OUR NEIGHBOURHOOD MARKET STRATEGY
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”TACTICS FOR BETTER STOPS”
• Kesko and Neste are leading Finnishservice stations to a new era
• Nearly 100 Neste K service stations
• High-quality and personalisedservices to customers quickly and easily
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K-CITYMARKETS REFURBISHED
• Refurbishment of the over 80 K-citymarket stores has started
• Work for revising the chain’s home and speciality goods selections and concepts is progressing
• sales development was 6.2 percentage points ahead of otheroperators in 2015*
*Source: Finnish Grocery Trade Association
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RETAILER ENTRE-PRENEURS IN THE CENTRE
• Strengthening the retailer entrepreneurship as K-food stores’ competitive asset
• Store-specific business idea based on customer data
• It is also possible for the retailer to run several stores
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BEST DIGITAL SERVICES IN THE TRADINGSECTOR: K-RUOKA MOBILE APP• Helps in shopping
• Knows the user and transmitsindividual offers
• Rose to the number one position on the App Store’s download liston the week it was launched
• The app and digital services arefurther improved every day
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RENEWALS IN THEBUILDING AND HOME IMPROVEMENT TRADE
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STRONG DEVELOPMENT AND GOOD RESULTS
• Good profit development
• Market shares are increasing
• The fifth largest in Europe
• Kesko Senukai accelerates growthin the Baltic countries and Belarus
• Pro Centers as growth drivers
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B2B SALES ARE GROWING FASTER THANCONSUMER SALES
Building and renovation become more technical
Consumers more often outsource construction to professionals
Growing need for renovation construction
Rising standard of living increases the use of services
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• Business customers alreadyaccount for 40% of sales
• B2B sales have long developed better thanconsumer sales
BUSINESS CUSTOMERS ARE ALREADY NOWKESKO’S LARGEST CUSTOMER GROUP
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ACQUISITION OF ONNINEN WILL RAISE THE SHARE OF B2B SALES FROM 40% TO 60%
1.6 1.6
1.3
2.7
0
1
2
3
4
5
K-Group K-Group and Onninen
Business customers
Project and consumercustomers
40%
60% 40%
60%
€ billion
€2.9 billion
€4.3 billion
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ONE UNIFIEDK-GROUP
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ONE UNIFIED K-GROUP• Synergy benefits will be exploited in
customer relationship management across business boundaries
• Ever closer cooperation with retailers
• Efficient use of internal synergybenefits, too
• One unified K-identity
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THE MOST RESPONSIBLE RETAILER IN THE WORLD
Both in 2015 and 2016, the World Economic Forum in Davos publishedKesko’s inclusion in ’the Global 100 MostSustainable Corporations in the World’ list.
We will continue our long-term responsibility work.
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