2013-04-25 08:00:00 CEST
2013-04-25 08:03:20 CEST
REGULATED INFORMATION
Kesko Oyj - Interim report (Q1 and Q3)
Kesko's interim report for the period 1 Jan. to 31 Mar. 2013
KESKO CORPORATION STOCK EXCHANGE RELEASE 25.04.2013 AT 09.00 1(28)
Financial performance in brief:
*The Group's net sales for January-March decreased by 6.9%.
* The retail and B2B sales (excl. VAT) of the K-Group (i.e. Kesko and chain
stores) for January-March decreased by 7.4%.
*The operating profit excluding non-recurring items was €18.6 million (€22.3
million).
*The Kesko Group's net sales for the next twelve months are expected to match
the level of the preceding twelve months. As a result of measures taken to
enhance business operations and cost savings, the operating profit excluding
non-recurring items for the next twelve months is expected to exceed the
operating profit excluding non-recurring items for the preceding twelve months,
unless the overall consumer demand significantly weakens. Capital expenditure is
expected to be lower compared to the capital expenditure for the preceding
twelve months.
Key performance indicators
1-3/2013 1-3/2012
Net sales, € million 2,159 2,318
Operating profit excl. non- recurring items, € million 18.6 22.3
Operating profit, € million 19.2 25.1
Profit before tax, € million 15.8 25.0
Capital expenditure, € million 41.5 104.1
Earnings per share, diluted, € 0.11 0.16
Earnings per share excl. non-recurring items, basic, € 0.11 0.14
31.3.2013 31.3.2012
Equity ratio, % 51.7 52.8
Equity per share, € 22.62 22.56
FINANCIAL PERFORMANCE
Net sales and profit for January-March 2013
The Group's net sales in January-March 2013 were €2,159 million, which is 6.9%
down on the corresponding period of the previous year (€2,318 million). In
Finland, net sales decreased by 6.1% and in other countries by 11.0%.
International operations accounted for 14.7% (15.4%) of net sales. Net sales
grew in the food trade and declined in the other divisions.
1-3/2013 Net sales, € Change, % Operating profit Change,
million excl. non- € million
recurring
items, € million
Food trade 1,045 +3.5 48.2 13.5
Home and speciality
goods trade 345 -6.5 -17.8 -4.8
Building and home
improvement trade 562 -10.7 -16.6 -7.6
Car and machinery
trade 249 -29.3 7.8 -7.7
Common operations and
eliminations -42 -0.5 -3.0 2.9
Total 2,159 -6.9 18.6 -3.7
The operating profit excluding non-recurring items for January-March was €18.6
million (€22.3 million), negatively affected by sales decrease in the car trade,
the building and home improvement trade and the department store trade.
Enhancement measures had a significant positive impact on profitability
performance. Operating expenses decreased by €18 million compared to the
previous year.
Operating profit was €19.2 million (€25.1 million). The operating profit
includes non-recurring gains on disposal of real estate in the amount of €0.6
million (€2.8 million). The Group's profit before tax for January-March was
€15.8 million (€25.0 million).
The Group's earnings per share were €0.11 (€0.16). The Group's equity per share
was €22.62 (€22.56).
In January-March, the K-Group's (i.e. Kesko's and the chain stores') retail and
B2B sales (VAT 0%) were €2,573 million, down 7.4% compared to the previous year.
The K-Plussa customer loyalty programme gained 19,906 new households in January-
March. At the end of March, there was 2,228,234 K-Plussa households and 3.8
million K-Plussa cardholders.
Finance
In January-March, the cash flow from operating activities was €-58.7 million (€-
5.2 million). The cash flow from investing activities was €-41.9 million (€-
91.8 million). It included a €2.5 million (€19.5 million) amount of proceeds
from the sale of fixed assets.
The Group's liquidity remained at an excellent level in January-March. At the
end of the period, liquid assets totalled €411 million (€293 million). Interest-
bearing liabilities were €644 million (€446 million) and interest-bearing net
debt €233 million (€154 million) at the end of March. Equity ratio was 51.7%
(52.8%) at the end of the period.
In January-March, the Group's net finance costs were €3.3 million (€0.1
million). Interest expense was increased by the €250 million bond taken out in
September 2012 adding to the gross debt.
Taxes
The Group's taxes for January-March were €4.8 million (€7.3 million). The
effective tax rate was 30.3% (29.2%), affected by loss-making foreign
operations.
Capital expenditure
In January-March, the Group's capital expenditure totalled €41.5 million (€104.1
million), or 1.9% (4.5%) of net sales. Capital expenditure in store sites was
€31.7 million (€90.3 million), in IT €5.6 million (€6.6 million) and other
capital expenditure was €4.2 million (€7.2 million). Capital expenditure in
foreign operations represented 36.5% (8.4%) of total capital expenditure.
Kesko's strategic focus areas and profitability programme
The key focus areas in Kesko's business operations are to strengthen sales
growth and the return on capital in all divisions, to exploit business
opportunities in e-commerce and in Russia, and to maintain good solvency and
dividend payment capacity.
As a result of a weakened general economic situation, tightened competition and
an increase in the level of costs, Kesko is implementing the profitability
programme announced previously, which aims to ensure price competitiveness and
to improve profitability. The profitability programme includes significant
measures aimed to increase sales, to enhance purchasing operations and to adjust
costs, working capital and capital expenditure.
The Group level cost saving target is a total of around €100 million. Cost
savings are implemented in all divisions and in all operating countries. Most of
the cost savings are expected to be achieved in 2013. Kesko's operating expenses
for the first quarter of 2013 were €438 million, down €-18 million (-4.0%) on
the previous year regardless of store site network expansion and cost inflation.
The measures for staff cost enhancement were implemented as announced
previously. In addition to terminations, the reductions included reduced working
hours and retirement arrangements. In the first quarter, the increasing effect
of new store sites on the number of personnel was around 900 person-years
compared to the previous year.
Other significant savings are implemented by adjusting especially marketing and
store site expenses and by centralising ICT purchases. In addition, special
enhancement measures are targeted at operations with low profitability.
Anttila's chain concepts are reformed and costs are adjusted, an e-commerce
based operating model is implemented in Musta Pörssi and its store site network
is strongly adjusted. The chain concept of Intersport's business operations in
Russia is reformed and unprofitable store sites are closed. At the end of the
reporting period, the store site network of Intersport Russia comprised 21 (35)
stores.
In the next few years, capital expenditure will be aligned with funds generated
from operations to some €200-300 million per year.
Personnel
In January-March, the average number of employees in the Kesko Group was 19,126
(19,143) converted into full-time employees. In Finland, the average decrease
was 239 people, while outside Finland, there was an increase of 221 people.
At the end of March 2013, the total number of employees was 22,881 (22,909), of
whom 12,298 (12,522) worked in Finland and 10,583 (10,387) outside Finland.
Compared to the end of March 2012, there was a decrease of 224 people in Finland
and an increase of 196 people outside Finland.
In January-March, the Group's staff cost was €153.3 million, an increase of
0.6% compared to the previous year.
SEGMENT INFORMATION
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.
Food trade
1-3/2013 1-3/2012
Net sales, € million 1,045 1,010
Operating profit excl. non- recurring items, € million 48.2 34.7
Operating margin excl. non-recurring items, % 4.6 3.4
Capital expenditure,
€ million 16.5 60.2
Net sales, € million 1-3/2013 Change, %
Sales to K-food stores 804 +3.1
Kespro 188 +3.9
Others 54 +9.1
Total 1,045 +3.5
January-March 2013
In the food trade, the net sales for January-March were €1,045 million (€1,010
million), up 3.5%. During the same period, the grocery sales of K-food stores
increased by 1.5% (VAT 0%). In the grocery market, retail prices are estimated
to have changed by some 4% 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 grown by some 3.5% in January-March
compared to the previous year (Kesko's own estimate).
In January-March, the operating profit excluding non-recurring items of the food
trade was €48.2 million (€34.7 million), or €13.5 million up on the previous
year. Profitability was improved by significant savings achieved from enhanced
operations. In addition, operating profit was increased by a €2.3 million (€-
1.6 million) gain on measurement of derivatives used for hedging electricity
purchases. Operating profit was €48.2 million (€37.4 million). In the
comparative year, non-recurring income included €2.7 million of gains on
disposals of properties.
The capital expenditure of the food trade was €16.5 million (€60.2 million), of
which €14.6 million (€56.5 million) in stores sites.
In January-March 2013, two new K-supermarkets and one K-market were opened.
Renovations and extensions were carried out in a total of five stores.
The most significant store sites being built are a K-citymarket in the Puuvilla
shopping centre in Pori and a K-supermarket in Espoo, in Pohjois-Haaga,
Helsinki, in Jyväskylä, Säkylä and Ikaalinen. The objective in Russia is to open
three new food stores in 2013.
Numbers of stores as at 31 March 2013 2012
K-citymarket 80 76
K-supermarket 215 210
K-market (incl. service station stores) 450 456
K-ruoka, Russia 1 0
Others 181 204
Home and speciality goods trade
1-3/2013 1-3/2012
Net sales, € million 345 369
Operating profit excl. non-recurring items, € million -17.8 -12.9
Operating margin excl. non-recurring items, % -5.2 -3.5
Capital expenditure,
€ million 8.0 18.5
Net sales, € million 1-3/2013 Change, %
K-citymarket home and speciality goods 140 -4.6
Anttila 89 -17.4
Intersport, Finland 51 +14.1
Intersport, Russia 6 -23.6
Indoor 44 -0.1
Musta Pörssi 10 -22.8
Kenkäkesko 6 -4.7
Total 345 -6.5
January-March 2013
In the home and speciality goods trade, the net sales for January-March were
€345 million (€369 million), down 6.5%. Consumer demand in the home and
speciality goods trade weakened during the first months of the year and sales
declined especially in the department store trade. The first quarter of the year
had three retail selling days less than in the previous year. Sales performance
was also impacted by the change in Musta Pörssi's business model and the
adjustment of the Intersport store site network in Russia.
The operating profit excluding non-recurring items of the home and speciality
goods trade for January-March was €-17.8 million (€-12.9 million). Profitability
was negatively impacted by a decrease in the sales and gross margin of Anttila
and K-citymarket Oy. During the reporting period, significant cost savings were
implemented. Operating profit was
€-17.7 million (€-12.9 million).
The capital expenditure of the home and speciality goods trade was €8.0 million
(€18.5 million) in January-March.
A new Budget Sport opened in Lielahti, Tampere in March.
Numbers of stores as at 31 March 2013 2012
K-citymarket, home and speciality goods* 81 75
Anttila department stores* 31 31
Kodin1 department stores for home goods and interior decoration* 13 11
Intersport 62 58
Budget Sport* 11 8
Asko and Sotka 84 82
Musta Pörssi* 25 34
Kookenkä* 48 47
Anttila, Baltics (NetAnttila)* 3 3
Intersport, Russia 21 35
Asko and Sotka, Baltics* 10 9
* incl. online stores
Building and home improvement trade
1-3/2013 1-3/2012
Net sales, € million 562 629
Operating profit excl. non-recurring items, € million -16.6 -9.0
Operating margin excl. non-recurring items, % -3.0 -1.4
Capital expenditure, € million 12.5 11.7
Net sales,
€ million 1-3/2013 Change, %
Rautakesko, Finland 281 -6.4
K-rauta, Sweden 38 -13.9
Byggmakker, Norway 101 -30.3
Rautakesko, Estonia 12 +3.9
Rautakesko, Latvia 10 +2.5
Senukai, Lithuania 48 -4.7
Stroymaster, Russia 51 -3.7
OMA, Belarus 21 +35.0
Total 562 -10.7
January-March 2013
In the building and home improvement trade, the net sales for January-March were
€562 million (€629 million), down 10.7%. The trend in construction activity was
weak in all of Rautakesko's operating countries. Sales decreased especially in
the B2B trade and in basic building materials.
In Finland, the net sales for January-March were €281 million (€300 million), a
decrease of 6.4%. The building and home improvement product lines contributed
€191 million to the net sales in Finland, a decrease of 10.3%. The agricultural
supplies trade contributed €90 million to net sales, up 3.1%.
The retail sales of the K-rauta and Rautia chains in Finland decreased by 8.8%
to €170 million (VAT 0%). The sales of Rautakesko B2B Service were down 20.8%.
The retail sales of the K-maatalous chain were €93 million (VAT 0%), up 4.3%.
In January-March, the net sales from the foreign operations of the building and
home improvement trade were €281 million (€329 million), a decrease of 14.6%. In
Russia, net sales decreased by 2.2% in terms of roubles. In Norway, net sales
decreased by 31.7% in terms of krones, which was partly attributable to the
changes that took place in the Byggmakker chain last year. A decision has been
made to introduce new chain agreements in Norway starting from 1 January 2014.
In Sweden, net sales were down 17.3% in terms of kronas. Foreign operations
contributed 50.0% (52.3%) to the net sales of the building and home improvement
trade.
The operating profit excluding non-recurring items of the building and home
improvement trade for January-March was €-16.6 million (€-9.0 million), down
€7.6 million compared to the previous year. The fall is due to weak sales
performance. Operating profit was €-16.1 million (€-9.0 million).
In January-March, the capital expenditure of the building and home improvement
trade totalled €12.5 million (€11.7 million), of which 49.2% (66.0%) abroad.
Capital expenditure in store sites represented 97.0% of total capital
expenditure.
Numbers of stores as at 31 March 2013 2012
K-rauta* 42 41
Rautia* 99 103
K-maatalous* 83 86
K-rauta, Sweden 21 22
Byggmakker, Norway 89 107
K-rauta, Estonia 8 9
K-rauta, Latvia 8 8
Senukai, Lithuania 17 17
K-rauta, Russia 14 14
OMA, Belarus 9 6
*In 2013, 1 K-rauta store and 48 Rautia stores also operated as K-maatalous
stores,
in 2012, 1 K-rauta store and 49 Rautia stores also operated as K-maatalous
stores.
Car and machinery trade
1-3/2013 1-3/2012
Net sales, € million 249 353
Operating profit excl.
non-recurring items,
€ million 7.8 15.5
Operating margin excl. non-recurring items, % 3.1 4.4
Capital expenditure, € million 3.9 12.7
Net sales, € million 1-3/2013 Change, %
VV-Auto 193 -33.3
Konekesko 57 -11.9
Total 249 -29.3
January-March 2013
In January-March, the net sales of the car and machinery trade were €249 million
(€353 million), down 29.3%.
VV-Auto's net sales for January-March were €193 million (€289 million), a
decrease of 33.3%. In the previous year, sales were increased by the car tax
change effective 1 April 2012. In January-March, the combined market performance
of first time registered passenger cars and vans was -43.1%.
In January-March, the combined market share of passenger cars and vans imported
by VV-Auto was 19.9% (19.9%).
Konekesko's net sales for January-March were €57 million (€65 million), down
11.9% compared to the previous year. Net sales in Finland were €39 million, down
22.0%. The net sales from Konekesko's foreign operations were €19 million, up
17.2%.
In January-March, the operating profit excluding non-recurring items of the car
and machinery trade was €7.8 million (€15.5 million), down €7.7 million compared
to the previous year. Regardless of the difficult market situation,
profitability remained at a good level.
The operating profit for January-March was €7.8 million (€15.5 million).
The capital expenditure of the car and machinery trade for January-March was
€3.9 million (€12.7 million).
Numbers of stores as at 31 March 2013 2012
VV-Auto, retail trade 10 10
Konekesko 1 2
Changes in the Group composition
No significant changes took place in the Group composition during the reporting
period.
Shares, securities market and Board authorisations
At the end of March 2013, the total number of Kesko Corporation shares was
98,786,940, of which 31,737,007, or 32.1%, were A shares and 67,049,933, or
67.9%, were B shares. At 31 March 2013, Kesko Corporation held 608,591 own B
shares as treasury shares. Treasury shares accounted for 0.91% of the number of
B shares and 0.62% of the total number of shares, and 0.16% of votes carried by
all shares of the company. The total number of votes carried by all shares was
384,420,003. Each A share entitles to ten (10) votes and each B share to one (1)
vote. The company cannot vote with treasury shares and no dividend is paid on
them. At the end of March 2013, Kesko Corporation's share capital was
€197,282,584. During the reporting period, the number of B shares was increased
once to account for the shares subscribed for with the options based on the
2007 option scheme. The increase was made on 11 February 2013 (74,600 B shares)
and announced in a stock exchange notification on the same day. The shares
subscribed for were listed for public trading on NASDAQ OMX Helsinki (Helsinki
Stock Exchange) with the old B shares on 12 February 2013. The subscription
price of €1,046,274 received by the company was recorded in the reserve of
invested non-restricted equity.
The price of a Kesko A share quoted on NASDAQ OMX Helsinki was €24.39 at the end
of 2012, and €25.11 at the end of March 2013, representing an increase of 3.0%.
Correspondingly, the price of a B share was €24.77 at the end of 2012, and
€24.37 at the end of March 2013, representing a decrease of 1.6%. In January-
March, the highest A share price was €25.99 and the lowest was €24.35. For B
share, they were €25.87 and €23.35 respectively. In January-March, the Helsinki
stock exchange (OMX Helsinki) All-Share index was up by 5.8% and the weighted
OMX Helsinki CAP index by 5.5%. The Retail Index was down by 2.0%.
At the end of March 2013, the market capitalisation of A shares was €797
million, while that of B shares was €1,619 million, excluding the shares held by
the parent company. The combined market capitalisation of A and B shares was
€2,416 million, a decrease of €2 million from the end of 2012. In January-March
2013, a total of 0.3 (0.6) million A shares were traded on the Helsinki stock
exchange, down 55%. The exchange value of A shares was €7 million. The total
number of B shares traded was 10.1 (20.6) million, down 51%. The exchange value
of B shares was €248 million.
The company operates the 2007 option scheme for management and other key
personnel, under which the share subscription period of 2007B share options runs
from 1 April 2011 to 30 April 2013, and that of 2007C share options runs from 1
April 2012 to 30 April 2014. The share options have been included on the
official list of the Helsinki stock exchange since the beginning of the share
subscription periods. During the reporting period, a total of 294,347 2007B
share options were traded at a total value of €749,548, and correspondingly, a
total of 88,901 2007C share options were traded at a total value of €1,011,589.
The share subscription period of 2007A share options under the option scheme and
their trading on the official list ended in 2012.
The Board has the authority, granted by the Annual General Meeting of 16 April
2012 and valid until 30 June 2015, to issue a total maximum of 20,000,000 new B
shares. The shares can be issued against payment for subscription by
shareholders in a directed issue in proportion to their existing shareholdings
regardless of whether they consist of 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, investments 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 against non-
cash consideration and the right to make decisions on other matters concerning
share issuances.
In addition, the Board has the authority, granted by the Annual General Meeting
of 8 April 2013 and valid until 30 September 2014 to decide on the acquisition
of a maximum of 500,000 own B shares, and the authority, valid until 30 June
2017, to decide on the issuance of a maximum of 1,000,000 own B shares held as
treasury shares by the company.
On 4 February 2013, the Board decided to grant own B shares held as treasury
shares by the company to people included in the target group of the vesting
period, based on the authority to issue own shares, valid prior to the Annual
General Meeting held on 8 April 2013, and the fulfilment of the vesting criteria
of the 2012 vesting period of Kesko's three-year share-based compensation plan.
The issuance of 66,331 own B shares, referred to above, was announced in a stock
exchange release on 5 February 2013 and on 5 April 2013. The latter release also
announced that 866 own B shares had been returned to the company without
consideration. Further information on the Board's authorisations is available at
www.kesko.fi.
At the end of March 2013, the number of shareholders was 44,692, which was 138
more than at the end of 2012. At the end of March, foreign ownership of all
shares was 19%. At the end of March, foreign ownership of B shares was 28%.
Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting
period.
Key events during the reporting period
Changes, effective 5 February 2013, took place in Kesko's Corporate Management
Board. Arja Talma, M.Sc. (Econ.), eMBA, 50, was appointed Senior Vice President
responsible for the Kesko Group's store sites and investments. Terho
Kalliokoski, M.S. (Econ.), 51, was appointed Rautakesko Ltd's President. Jorma
Rauhala, M.Sc. (Econ.), 47, was appointed Kesko Food Ltd's President. Starting
from 5 February 2013, Kesko's Corporate Management Board is composed of Matti
Halmesmäki, Chair; Jorma Rauhala, food trade; Minna Kurunsaari, home and
speciality goods trade and Kesko's customer information and e-commerce projects;
Terho Kalliokoski, building and home improvement trade; Pekka Lahti, car and
machinery trade; Arja Talma, store sites and investments; Jukka Erlund, CFO,
accounting, finance and IT management; and Matti Mettälä, human resources and
stakeholder relations. (Stock exchange release on 5 February 2013)
Events after the reporting period
On 5 April 2013, Kesko transferred a total of 66,331 own B shares (KESBV) held
by the company as treasury shares to the about 150 Kesko management employees
and other named key persons included in the target group of the 2012 vesting
period of Kesko's three-year share-based compensation plan. In the same context,
866 B shares, originally transferred to a person included in the target group of
the 2011 vesting period of the share-based compensation plan, were returned to
Kesko. After the transfer and return of shares, Kesko holds 543,126 own B shares
as treasury shares. (Stock exchange release on 5 April 2013)
With effect from 1 January 2013, the Kesko Group adopted the revised IAS 19
Employee benefits standard. The amendment had an impact on the Kesko Group's
pension costs and profit, as well as the pension assets and equity on the
balance sheet. Resulting from the amendment, the Kesko's consolidated income
statement, consolidated statement of financial position and segment information
for 2012 were updated in compliance with the requirements prescribed in the
revised standard. (Stock exchange release on 11 April 2013)
Resolutions of the 2013 Annual General Meeting and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting, held after the reporting period of
8 April 2013, adopted the financial statements for 2012 and discharged the Board
members and the Managing Director from liability. The General Meeting also
resolved, as proposed by the Board, to distribute €1.20 per share, or a total of
€117,892,576.80 as dividends. The dividend pay date was 18 April 2013. The
General Meeting resolved that the number of Board members is unchanged at seven,
elected PricewaterhouseCoopers Oy as the company's auditor, with APA Johan
Kronberg as the auditor with principal responsibility, and approved the Board's
proposals for amending Article 9 of the Articles of Association concerning the
delivery of the notice of a General Meeting, for authorising the Board to
acquire a maximum of 500,000 own B shares and to issue a maximum of 1,000,000
own B shares held as treasury shares by the company. The General Meeting also
approved the Board's proposal that it be authorised to decide on the donations
in a total maximum of €300,000 for charitable or corresponding purposes until
the Annual General Meeting to be held in 2014.
The organisational meeting of the company's Board of Directors, held after the
Annual General Meeting, kept the compositions of the Audit Committee and the
Remuneration Committee unchanged. The Board's Audit Committee is composed of the
Board members Maarit Näkyvä (Ch.), Seppo Paatelainen (Deputy Ch., Board Deputy
Ch.) and Virpi Tuunainen elected by Kesko's Annual General Meeting of 16 April
2012, and correspondingly, the Remuneration Committee is composed of Board
members Esa Kiiskinen (Ch., Board Ch.), Seppo Paatelainen (Deputy Ch., Board
Deputy Ch.) and Ilpo Kokkila. In addition to the above, Board members elected by
the said meeting include Tomi Korpisaari and Toni Pokela. The term of office of
all Board members, provided by Kesko's Articles of Association, will end at the
close of the Annual General Meeting of 2015. The Board elects the Board Chair
and Deputy Chair for the whole three-year term of the Board members and the
Committee Chairs, Deputy Chairs and members for one year at a time.
The resolutions of the Annual General Meeting and the decisions of the Board's
organisational meeting were announced in more detail in stock exchange releases
on 8 April 2013.
Responsibility
In January, Kesko was included on 'The Global 100 Most Sustainable Corporations
in the World' list for the ninth time. Kesko was classified into the bronze
class in the Food & Drug Retailers sector in RobecoSAM's Sustainability Yearbook
2013.
Kesko announced its updated responsibility programme, which contains both short-
term objectives and objectives extending to 2020 for the operations of Kesko and
the whole K-Group.
Kesko and K-stores will take active part in the social guarantee for young
people initiative, with a view to promoting employment and preventing social
exclusion among young people. A tailored programme will be built for the K-Group
to employ young people in K-stores and Kesko.
In March, Kesko and K-stores took part in the Earth Hour 2013 event by turning
off the illuminated signs and pylons in their remote controlled properties and
stores across Finland for one hour.
In March, Kesko was awarded by World Finance Magazine for 'the Best Corporate
Governance in Finland' in terms of corporate governance development and
reporting, as in two previous years.
Risk management
The Kesko Group has an established and comprehensive risk management process.
Risks and their management are assessed in the Group regularly and they are
reported to the Group's management. Kesko's risk management and risks associated
with business operations are described in more detail on Kesko's website in the
section Corporate Governance.
The most significant near-future risks in Kesko's business operations are
related to the general economic development, the financial market situation in
the euro zone and low consumer confidence in Kesko's operating area and their
impact on the Kesko Group's sales and profit performance. During the first
months of the year, no material changes are estimated to have taken place in the
risks described in the 2012 report by Kesko's Board of Directors and the
financial statements, or in the risks described on Kesko's website.
The risks and uncertainties related to financial performance are described in
the section future outlook of this release.
Future outlook
Estimates of the future outlook for the Kesko Group's net sales and operating
profit excluding non-recurring items are given for the 12 months following the
reporting period (4/2013-3/2014) in comparison with the 12 months preceding the
reporting period (4/2012-3/2013).
Resulting from the problems of European national economies, the future prospects
for the general economic situation and consumer demand continue to be
characterised by significant uncertainty. In consequence of weakened employment
and consumers' purchasing power, the growth prospects for the trading sector
have deteriorated.
In the Finnish grocery trade, the market is expected to remain stable. As a
result of the weakened economic situation, the markets for the home and
speciality goods trade, the building and home improvement trade and the car and
machinery trade in Finland are expected to fall.
The Kesko Group's net sales for the next twelve months are expected to match the
level of the preceding twelve months. As a result of measures taken to enhance
business operations and cost savings, the operating profit excluding non-
recurring items for the next twelve months is expected to exceed the operating
profit excluding non-recurring items for the preceding twelve months, unless the
overall consumer demand significantly weakens. Capital expenditure is expected
to be lower compared to the capital expenditure for the preceding twelve months.
Helsinki, 24 April 2013
Kesko Corporation
Board of Directors
The information in the interim report release are unaudited.
Further information is available from Jukka Erlund, Senior Vice President, Chief
Financial Officer, telephone +358 1053 22113, and Eva Kaukinen, Vice President,
Corporate Controller, telephone +358 1053 22338. A Finnish-language webcast from
the media and analyst briefing on the interim report can be accessed at
www.kesko.fi at 11.00. An English-language web conference on the interim report
will be held today at 14.30 (Finnish time). The web conference login is
available on Kesko's website at www.kesko.fi.
Kesko Corporation's interim report for January-June will be released on 24 July
2013. In addition, the 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, Corporate 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
Main news media
www.kesko.fi
TABLES SECTION:
Accounting policies
This interim report has been prepared in accordance with the IAS 34 standard.
The interim report has been prepared in accordance with the same accounting
principles as the annual financial statements for 2012, with the exception of
the following changes due to the adoption of new and revised IFRS standards and
IFRIC interpretations:
The amendment to the IAS 19 Employee benefits standard changes the determination
of the return on defined benefit pension plan assets. According to the revised
standard, the rate used to discount the retirement benefit obligation is used as
the return on assets in place of the expected long-term return on the assets
used previously. Due to the amendment, the net return on defined benefit pension
plans recognised in the consolidated income statement decreases. In addition,
the amendment to the IAS 19 Employee benefits standard eliminates the
possibility to apply the so-called "corridor approach" to the calculation of
retirement benefits classified as defined benefit pension plans, which follows
that the changes in the calculation assumptions used for measuring the pension
obligation and the covering assets are recognised in pension assets and equity
in the balance sheet. The impact of the amendment was announced in a separate
stock exchange release on 11 April 2013.
In addition, the Group has adopted the following standards and amendments to
standards issued for application:
-IAS 1 Presentation of financial statements (amendment)
-IFRS 13 Fair value measurement
-IFRS 7 Financial instruments: Disclosures (amendment)
Consolidated income statement (€ million),
condensed
1-3/ 1-3/ Change,% 1-12/
2013 2012 2012
Net sales 2,159 2,318 -6.9 9,686
Cost of goods sold -1,875 -2,007 -6.6 -8,367
Gross profit 284 311 -8.6 1,319
Other operating income 173 170 1.6 747
Staff cost -153 -152 0.6 -608
Depreciation and impairment charges -37 -36 3.2 -158
Other operating expenses -248 -268 -7.5 -1 088
Operating profit 19 25 -23.2 212
Interest income and other finance income 3 5 -37.4 21
Interest expense and other finance costs -5 -4 39.2 -17
Exchange differences -1 -2 -9.9 -5
Income from associates 0 0 (..) -1
Profit before tax 16 25 -36.8 210
Income tax -5 -7 -34.5 -75
Net profit for the period 11 18 -37.8 136
Attributable to
Owners of the parent 11 16 -29.4 124
Non-controlling
interests 0 2 (..) 11
Earnings per share (€)
for profit attributable to
equity holders of the parent
Basic 0.11 0.16 -29.5 1.27
Diluted 0.11 0.16 -29.6 1.26
Consolidated statement
of comprehensive
income (€ million)
1-3/ 1-3/ Change,% 1-12/
2013 2012 2012
Net profit for the period 11 18 -37,8 136
Items that will not be reclassified to
profit or loss
Actuarial gains and losses - 9 - 1
Actuarial gains and losses,
tax - -2 - 0
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translating foreign
operations 3 4 -20.8 0
Adjustment for hyperinflation 2 1 (..) 4
Cash flow hedge revaluation 0 -2 83.5 -3
Revaluation of available-for- sale financial
assets 0 0 (..) 9
Other items - - - 0
Comprehensive income that may be
reclassified subsequently to profit or loss,
tax 0 0 -91.2 1
Total other comprehensive income for the
period,
net of tax 4 10 -55.7 11
Total comprehensive income for the period 15 28 -44.3 147
Attributable to
Owners of the parent 14 27 -46.6 133
Non-controlling
interests 1 1 1.1 14
(..) Change over 100%
Consolidated statement of financial
position (€ million), condensed
31.3.2013 31.3.2012 Change, % 31.12.2012
ASSETS
Non-current assets
Tangible assets 1,685 1,555 8.4 1,678
Intangible assets 190 190 0.0 192
Investments in associates and other
financial assets 106 70 51.8 105
Loans and receivables 90 78 15.9 91
Pension assets 154 162 -4.6 154
Total 2,225 2,054 8.4 2,220
Current assets
Inventories 859 909 -5.4 814
Trade receivables 805 804 0.1 703
Other receivables 198 289 -31.6 153
Financial assets at fair value
through profit or loss 98 75 31.3 137
Available-for-sale financial assets 218 163 33.1 249
Cash and cash equivalents 95 54 74.7 103
Total 2,273 2,294 -0.9 2,160
Non-current assets held for sale 2 1 95.4 2
Total assets 4,500 4,349 3.5 4,382
31.3.2013 31.3.2012 Change, % 31.12.2012
EQUITY AND LIABILITIES
Equity 2,221 2,210 0.5 2,206
Non-controlling interests 68 59 14.2 67
Total equity 2,289 2,269 0.8 2,272
Non-current liabilities
Interest-bearing liabilities 438 205 (..) 450
Non-interest-bearing liabilities 10 20 -47.2 10
Deferred tax liabilities 78 91 -14.0 81
Pension obligations 2 2 -5.5 2
Provisions 20 11 76.0 21
Total 547 329 66.4 564
Current liabilities
Interest-bearing liabilities 206 241 -14.3 174
Trade payables 955 1,001 -4.6 808
Other non-interest-bearing
liabilities 463 486 -4.8 524
Provisions 41 23 76.9 40
Total 1,664 1,751 -5.0 1,546
Total equity and liabilities 4,500 4,349 3.5 4,382
(..) Change over 100%
Consolidated statement of changes in equity (€ million)
Cur-
rency Non-
trans- Re- cont-
Share lation tained rolling
capi- differ- Revaluation Treasury earn- inter-
tal Reserves ences reserve shares ings ests Total
Balance at
1 Jan. 2012 197 441 -3 3 -22 1,567 58 2,241
Shares
subscribed
with options
Share-based
payments 0 0 0 1
Dividends
Other changes 0 0 0
Net profit for
the period 16 2 18
Other
comprehen-sive
income
Items not
classified to
profit or loss
Actuarial
gains/losses 9 9
Actuarial
gains and
losses,
tax -2 -2
Items that may
be
reclassified
subsequently
to profit or
loss
Exchange
differences on
translating
foreign
operations 0 5 -1 4
Adjustment for
hyperinflation 0 1 1
Cash flow
hedge
revaluation -2 -2
Revaluation of
available-for-
sale financial
assets 0 0
Tax relating
to other
comprehen-sive
income 0 0
Total other
comprehen-sive
income 0 5 -1 0 7 -1 10
Balance at
31 Mar. 2012 197 441 1 1 -22 1,600 59 2,269
Balance at
1 Jan. 2013 197 442 -2 10 -19 1,578 67 2,272
Shares
subscribed
with options 1 1
Share-based
payments 0 0 0
Dividends
Other changes 0 0
Net profit for
the period 11 0 11
Other
comprehen-sive
income
Items not
classified to
profit or loss
Actuarial
gains/losses
Actuarial
gains and
losses,
tax
Items that may
be
reclassified
subsequently
to profit or
loss
Exchange
differences on
translating
foreign
operations 0 3 0 3
Adjustment for
hyperinflation 0 2 2
Cash flow
hedge
revaluation 0 0
Revaluation of
available-for-
sale financial
assets 0 0
Tax relating
to other
comprehen-sive
income 0 0
Total other
comprehen-sive
income 0 3 0 0 0 2 4
Balance at
31 Mar. 2013 197 443 1 10 -19 1,590 68 2,289
Consolidated statement of cash flows (€ million), condensed
1-3/ 1-3/ Change, % 1-12/
2013 2012 2012
Cash flows from operating activities
Profit before tax 16 25 -36.8 210
Planned depreciation 37 36 3.2 155
Finance income and costs 3 0 (..) 1
Other adjustments -1 9 (..) 103
Change in working capital
Current non-interest-bearing
operating receivables,
increase (-)/decrease (+) -144 -120 20.2 5
Inventories,
increase (-)/decrease (+) -43 -37 16.1 57
Current non-interest-bearing
liabilities,
increase (+)/decrease (-) 87 100 -13.6 -70
Financial items and tax -13 -18 -28.0 -79
Net cash from operating activities -59 -5 (..) 382
Cash flows from investing activities
Investing activities -44 -111 -59.8 -411
Sales of fixed assets 2 20 -87.4 24
Increase in non-current receivables 0 -1 (..) -4
Net cash used in investing activities -42 -92 -54.4 -391
Cash flows from financing activities
Interest-bearing liabilities, increase
(+)/decrease (-) 22 49 -54.9 230
Current interest-bearing
receivables,
increase (-)/decrease (+) 1 -21 (..) 37
Dividends paid - - - -123
Equity increase 1 - - 1
Short-term money market investments,
increase (-)/ decrease (+) 21 32 -34.5 -2
Other items -2 -6 -72.9 -14
Net cash used in financing activities 43 53 -20.3 130
Change in cash and cash equivalents -58 -44 32.9 121
Cash and cash equivalents and current
portion of available-for-sale financial
assets at 1 Jan. 352 231 52.5 231
Currency translation difference adjustment
and revaluation 0 0 -17.6 0
Cash and cash equivalents and current
portion of available-for-sale financial
assets at 31 Mar. 294 187 57.0 352
(..) Change over 100%
Group's performance indicators
1-3/2013 1-3/2012 Change, pp 1-12/2012
Return on capital employed, % 3.1 4.1 -1.0 8.3
Return on capital employed, %,
moving 12 mo 8.0 12.0 -4.0 8.3
Return on capital employed excl. non-
recurring items, % 3.0 3.6 -0.7 9.0
Return on capital employed excl. non-
recurring items, %, moving 12 mo 8.8 11.9 -3.1 9.0
Return on equity, % 1.9 3.1 -1.2 6.0
Return on equity, %, moving 12 mo 5.7 8.4 -2.8 6.0
Return on equity excl. non-recurring
items, % 1.8 2.8 -0.9 6.9
Return on equity excl. non-recurring
items, %, moving 12 mo 6.6 8.3 -1.7 6.9
Equity ratio, % 51.7 52.8 -1.1 52.5
Gearing, % 10.2 6.8 3.4 6.0
Change, %
Capital expenditure, € million 41.5 104.1 -60.2 378.3
Capital expenditure, % of net sales 1.9 4.5 -57.2 3.9
Earnings per share, basic, € 0.11 0.16 -29.5 1.27
Earnings per share, diluted, € 0.11 0.16 -29.6 1.26
Earnings per share excl. non-recurring
items, basic, € 0.11 0.14 -23.2 1.47
Cash flow from operating activities,
€ million -59 -5 (..) 382
Cash flow from investing activities,
€ million -42 -92 -54.4 -391
Equity per share, € 22.62 22.56 0.2 22.48
Interest-bearing net debt 233.2 153.6 51.8 135.3
Diluted number of
shares, average for
reporting period 98,724 98,413 0.2 98,472
Personnel, average 19,126 19,143 -0.1 19,741
(..) Change over 100%
Group's performance indicators by quarter 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
2012 2012 2012 2012 2013
Net sales, € million 2,318 2,460 2,449 2,459 2,159
Change in net sales, % 10.2 -0.5 1.9 -0.9 -6.9
Operating profit, € million 25.1 57.7 77.4 51.8 19.2
Operating margin, % 1.1 2.3 3.2 2.1 0.9
Operating profit excl. non- recurring
items, € million 22.3 59.4 77.4 70.9 18.6
Operating margin excl.
non-recurring items, % 1.0 2.4 3.2 2.9 0.9
Finance income/costs,
€ million -0.1 -0.3 -1.3 1.1 -3.3
Profit before tax,
€ million 25.0 57.3 76.1 52.1 15.8
Profit before tax, % 1.1 2.3 3.1 2.1 0.7
Return on capital employed, % 4.1 8.9 11.9 8.0 3.1
Return on capital employed excl. non-
recurring items, % 3.6 9.2 11.9 10.9 3.0
Return on equity, % 3.1 7.0 9.6 4.4 1.9
Return on equity excl.
non-recurring items, % 2.8 7.3 9.6 8.0 1.8
Equity ratio, % 52.8 51.2 51.3 52.5 51.7
Capital expenditure, € million 104.1 67.8 102.6 103.8 41.5
Earnings per share, diluted, € 0.16 0.37 0.50 0.23 0.11
Equity per share, € 22.56 21.72 22.33 22.48 22.62
Segment information
Net sales by segment 1-3/ 1-3/ Change 1-12/
(€ million) 2013 2012 % 2012
Food trade total 1,045 1,010 3.5 4,311
- of which intersegment trade 43 45 -4.9 172
Home and speciality goods trade, Finland 335 356 -6.1 1,557
Home and speciality goods trade, other countries* 10 13 -19.3 45
Home and speciality goods trade total 345 369 -6.5 1,603
- of which intersegment trade 3 4 -9.7 18
Building and home improvement trade, Finland 281 300 -6.4 1,229
Building and home improvement trade, other
countries* 281 329 -14.6 1,598
Building and home improvement trade total 562 629 -10.7 2,827
- of which intersegment trade 0 0 37.0 0
Car and machinery trade, Finland 231 337 -31.5 998
Car and machinery trade, other countries* 19 16 17.8 116
Car and machinery trade
total 249 353 -29.3 1,114
- of which intersegment trade 0 0 -31.2 1
Common operations and
eliminations -42 -42 -0.5 -169
Finland total 1,841 1,961 -6.1 7,924
Other countries total* 318 357 -11.0 1,762
Group total 2,159 2,318 -6.9 9,686
* net sales in countries other than Finland
Operating profit by segment (€ million) 1-3/ 1-3/ 1-12/
2013 2012 Change 2012
Food trade 48.2 37.4 10.8 170.2
Home and speciality goods trade -17.7 -12.9 -4.8 0.0
Building and home improvement trade -16.1 -9.0 -7.0 11.6
Car and machinery trade 7.8 15.5 -7.7 41.9
Common operations and eliminations -3.0 -5.9 2.9 -11.8
Group total 19.2 25.1 -5.8 212.0
Operating profit excl.
non-recurring items 1-3/ 1-3/ 1-12/
by segment (€ million) 2013 2012 Change 2012
Food trade 48.2 34.7 13.5 167.5
Home and speciality goods trade -17.8 -12.9 -4.8 19.6
Building and home improvement trade -16.6 -9.0 -7.6 13.3
Car and machinery trade 7.8 15.5 -7.7 41.9
Common operations and eliminations -3.0 -5.9 2.9 -12.2
Group total 18.6 22.3 -3.7 230.0
Operating margin
excl. non-recurring 1-3/ 1-3/ 1-12/ Moving 12 mo
items by segment 2013 2012 Change, pp 2012 3/2013
Food trade 4.6 3.4 1.2 3.9 4.2
Home and speciality goods trade -5.2 -3.5 -1.6 1.2 0.9
Building and home improvement trade -3.0 -1.4 -1.5 0.5 0.2
Car and machinery trade 3.1 4.4 -1.3 3.8 3.4
Group total 0.9 1.0 -0.1 2.4 2.4
Capital employed by
segment, cumulative 1-3/ 1-3/ 1-12/
average (€ million) 2013 2012 Change 2012
Food trade 854 706 148 763
Home and speciality goods trade 477 479 -3 514
Building and home improvement trade 762 754 8 760
Car and machinery trade 170 199 -29 188
Common operations and eliminations 258 315 -57 327
Group total 2,520 2,453 67 2,552
Return on capital
employed excl. non-
recurring items by segment, % 1-3/ 1-3/ 1-12/ Moving
2013 2012 Change, pp 2012 12 mo 3/2013
Food trade 22.6 19.6 2.9 21.9 22.7
Home and speciality goods trade -14.9 -10.8 -4.1 3.8 2.9
Building and home improvement trade -8.7 -4.8 -3.9 1.7 0.7
Car and machinery trade 18.3 31.2 -12.9 22.3 18.9
Group total 3.0 3.6 -0.7 9.0 8.8
Capital expenditure by segment (€ million) 1-3/ 1-3/ 1-12/
2013 2012 Change 2012
Food trade 17 60 -44 200
Home and speciality goods trade 8 18 -10 61
Building and home improvement trade 13 12 1 63
Car and machinery trade 4 13 -9 27
Common operations and eliminations 1 1 0 28
Group total 41 104 -63 378
Segment information by quarter
Net sales by segment 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
(€ million) 2012 2012 2012 2012 2013
Food trade 1,010 1,091 1,078 1,132 1,045
Home and speciality goods trade 369 352 395 487 345
Building and home improvement trade 629 782 759 657 562
Car and machinery trade 353 274 259 227 249
Common operations and eliminations -42 -41 -41 -45 -42
Group total 2,318 2,460 2,449 2,459 2,159
Operating profit by segment (€ million) 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
2012 2012 2012 2012 2013
Food trade 37.4 38.6 49.4 44.8 48.2
Home and speciality goods trade -12.9 -0.7 0.9 12.8 -17.7
Building and home improvement trade -9.0 13.5 17.9 -10.8 -16.1
Car and machinery trade 15.5 10.3 11.4 4.7 7.8
Common operations and eliminations -5.9 -4.0 -2.2 0.3 -3.0
Group total 25.1 57.7 77.4 51.8 19.2
Operating profit excl. non-recurring items 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
by segment (€ million) 2012 2012 2012 2012 2013
Food trade 34.7 38.6 49.4 44.8 48.2
Home and speciality goods trade -12.9 -0.7 0.9 32.3 -17.8
Building and home improvement trade -9.0 15.2 17.9 -10.8 -16.6
Car and machinery trade 15.5 10.3 11.4 4.7 7.8
Common operations and eliminations -5.9 -4.0 -2.2 -0.1 -3.0
Group total 22.3 59.4 77.4 70.9 18.6
Operating margin
excl. non-recurring 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
items by segment 2012 2012 2012 2012 2013
Food trade 3.4 3.5 4.6 4.0 4.6
Home and speciality goods trade -3.5 -0.2 0.2 6.6 -5.2
Building and home improvement trade -1.4 1.9 2.4 -1.6 -3.0
Car and machinery trade 4.4 3.7 4.4 2.1 3.1
Group total 1.0 2.4 3.2 2.9 0.9
Change in tangible and intangible assets (€ million)
31.3.2013 31.3.2012
Opening net carrying amount 1,870 1,680
Depreciation, amortisation and impairment -37 -36
Investments in tangible and intangibe assets 43 106
Disposals -6 -18
Currency translation differences 5 13
Closing net carrying amount 1,875 1,745
Related party transactions
The Group's related parties include its key management (the Board of Directors,
the President and CEO and the Corporate Management Board), subsidiaries,
associates and the Kesko Pension Fund.
The following transactions were carried out with related parties:
1-3/2013 1-3/2012
Sales of goods and services 22 18
Purchases of goods and services 7 3
Other operating income 0 0
Other operating expenses 7 6
Finance costs 0 0
Receivables 9 67
Liabilities 28 38
Fair value hierarchy of financial assets and liabilities (€ million)
Level 1 Level 2 Level 3 31.3.2013
Financial assets at fair value through
profit or loss 98 98
Derivative financial instruments at fair
value through profit or loss
Derivative financial assets 3 3
Derivative financial liabilities 12 12
Available-for-sale financial assets 18 199 7 225
Level 1 Level 2 Level 3 31.3.2012
Financial assets at fair value through
profit or loss 75 75
Derivative financial instruments at fair
value through profit or loss
Derivative financial assets 4 4
Derivative financial liabilities 21 21
Available-for-sale financial assets 30 133 7 170
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 at 31 March
Personnel average by
segment 1-3/2013 1-3/2012 Change
Food trade 2,856 2,652 204
Home and speciality goods trade 5,786 5,983 -197
Building and home improvement trade 8,836 8,869 -33
Car and machinery trade 1,223 1,210 13
Common operations 425 429 -4
Group total 19,126 19,143 -18
Personnel at 31 March*
by segment 2013 2012 Change
Food trade 3,183 3,007 176
Home and speciality goods trade 8,030 8,128 -98
Building and home improvement trade 9,931 10,008 -77
Car and machinery trade 1,263 1,280 -17
Common operations 474 486 -12
Group total 22,881 22,909 -28
* total number incl. part-time employees
Group's commitments (€ million)
31.3.2013 31.3.2012 Change, %
Own commitments 181 181 -0.1
For associates 65 - -
For others 10 8 33.2
Lease liabilities for machinery and equipment 25 26 -3.9
Lease liabilities for real estate 2,274 2,265 0.4
Liabilities arising from derivative instruments
Values of underlying instruments at 31 March Fair value
31.3.2013 31.3.2012 31.3.2013
Interest rate derivatives
Interest rate swaps 203 205 1.24
Currency derivatives
Forward and future contracts 234 334 -1.81
Option agreements 10 7 -0.02
Currency swaps 100 100 -6.71
Commodity derivatives
Electricity derivatives 40 30 -2.09
Calculation of performance indicators
Operating profit x 100 / (Non-current
assets + Inventories + Receivables +
Return on capital employed*, % Other current assets - Non-interest-
bearing liabilities) on average for
the reporting period
Operating profit for prior 12 months
Return on capital employed, %, moving x 100 / (Non-current assets +
12 mo Inventories + Receivables + Other
current assets - Non-interest-bearing
liabilities) on average for 12 months
Operating profit excl. non-recurring
items x 100 / (Non-current assets +
Return on capital employed excl. non- Inventories + Receivables + Other
recurring items*, % current assets - Non-interest-bearing
liabilities) on average for the
reporting period
Operating profit excl. non-recurring
items for prior 12 months x 100 /
Return on capital employed excl. non- (Non-current assets + Inventories +
recurring items, %, moving 12 months Receivables + Other current assets -
Non-interest-bearing liabilities) on
average for 12 months
(Profit/loss before tax - income tax)
Return on equity*, % x 100 /
Shareholders' equity
(Profit/loss for prior 12 months
Return on equity, %, moving 12 months before tax - income tax
for prior 12 months) x100 / Shareholders' equity
(Profit/loss adjusted for non-
Return on equity excl. non-recurring recurring items before tax - income
items*, % tax adjusted for the tax effect of
non-recurring items) x 100 /
Shareholders' equity
(Profit/loss for prior 12 months
adjusted for non-recurring items
Return on equity excl. non-recurring before tax - income tax for prior 12
items, %, moving 12 months months adjusted for the tax effect of
non-recurring items) x 100 /
Shareholders' equity
Shareholders' equity x 100 /
Equity ratio, % (Balance sheet total - prepayments
received)
(Profit/loss - non-controlling
Earnings/share, diluted interests) /
Average diluted number of shares
(Profit/loss - non-controlling
Earnings/share, basic interests) /
Average number of shares
Earnings/share excl. (Profit/loss adjusted for non-
non-recurring items, recurring items - non-controlling
basic interests) / Average number of shares
Equity attributable to equity holders
Equity/share of the parent /
Basic number of shares at the balance
sheet date
Interest-bearing net liabilities x
Gearing, % 100 /
Shareholders' equity
Interest-bearing liabilities - money
Interest-bearing net debt 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.-31.3.2013
K-Group's retail and € million Change, %
B2B sales
K-Group's food trade
K-food stores 1,140 2.1
Kespro 186 3.9
Food trade total 1,326 2.4
K-Group's home and
speciality goods trade
Home and speciality goods stores, Finland 366 -8.5
Home and speciality goods stores, other countries 10 -24.0
Home and speciality
goods trade total 376 -9.0
K-Group's building and home improvement trade
K-rauta and Rautia 170 -8.8
Rautakesko B2B Service 38 -20.8
K-maatalous 93 4.3
Finland total 301 -7.0
Building and home improvement stores, other Nordic
countries 174 -28.6
Building and home improvement stores, Baltic countries 70 -2.2
Building and home improvement stores, other countries 72 4.8
Building and home improvement trade total 616 -12.8
K-Group's car and
machinery trade
VV-Autotalot 90 -35.2
VV-Auto, import 107 -32.6
Konekesko, Finland 39 -21.7
Finland total 235 -32.1
Konekesko, other countries 19 12.8
Car and machinery trade
total 254 -30.0
Finland total 2,220 -6.2
Other countries total 353 -14.6
Retail and B2B sales
total 2,573 -7.4
[HUG#1696146]
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