Kesko Oyj - Company Announcement

Kesko to acquire AutoCarrera - Porsche representation transfers to VV-Auto

KESKO CORPORATION STOCK EXCHANGE RELEASE 14.11.2016 AT 09.15 1(3)



Kesko to acquire AutoCarrera - Porsche representation transfers to VV-Auto



Kesko Corporation's subsidiary VV-Auto Group Oy has signed an agreement to
acquire the whole share capital of Oy AutoCarrera Ab. The company being acquired
is responsible for importing and retailing Porsche in Finland. In 2015, the net
sales of Oy AutoCarrera Ab being acquired were €49 million and the operating
profit was €3.3 million. The price of the acquisition, structured as a share
purchase, is approximately €27 million.



The car trade is one of Kesko's strategic growth areas. The acquisition expands
VV-Auto's cooperation with Volkswagen AG. Currently VV-Auto is responsible for
the import of Volkswagen, Audi, SEAT and MAN and it operates as a significant
car retailer at its own outlets in the Greater Helsinki area and Turku. The
addition of Porsche to the selection will increase sales and improve the
profitability of the car trade.



"The acquisition of Porsche brings one of the world's most highly valued car
brands to the K-Group and our offering expands to include new models and new
customer groups. Porsche sales have experienced strong global growth as its
range of models has widened. Porsche is intensively investing also in its hybrid
and electric models. Therefore we see that Porsche's position in the car market
will strengthen significantly in the coming years," says Kesko's President and
CEO Mikko Helander.



"Porsche's good market share performance and investment in customer service are
secured long into the future in Kesko, one of whose strategic growth areas is
the car trade. AutoCarrera has operated in Finland for 18 years already and we
are pleased that the operations will continue and will be developed with the
resources of the new owner," says Pekka Pättiniemi, the Chair of the AutoCarrera
Board.



AutoCarrera is a family business whose owners include private persons, Four P&P
Consulting Oy and Oy Olisystems Ab. Porsche's retail and service operations in
Finland are located in Helsinki, Turku and Tampere. The company employs 36
people.



Financial impacts of the acquisition



In 2015, Oy AutoCarrera Ab's net sales were €49 million and the operating profit
was €3.3 million. At the closing of the transaction, approximately €25 million
will be paid in cash and a possible credit facility. In addition, as the terms
and conditions of the acquisition agreed by the parties are fulfilled,
approximately €2 million will be paid at a later date.



The acquisition to be paid in cash will be funded by Kesko's liquid assets and
available debt financing reserves.



The acquisition does not have an impact on Kesko Group's outlook.



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 within the year 2016.



Oy AutoCarrera Ab's profit performance and financial position





INCOME STATEMENT                          1.1. - 31.12.2015 1.1. - 31.12.2014



Net sales                                              48.7              37.5

Other operating income                                  0.1               0.0

Cost of goods sold                                    -41.1             -32.4

Gross profit                                            7.7               5.1

Employee benefit expenses                              -2.3              -2.0

Other operating expenses                               -1.9              -1.8

EBITDA                                                  3.5               1.3

Depreciation, amortisation and impairment              -0.2              -0.2

Operating profit                                        3.3               1.1

Finance income and expenses                            -0.4              -0.1

Profit before tax                                       2.9               1.0

Income tax                                             -0.6              -0.2

Profit for the period                                   2.3               0.8



BALANCE SHEET                                    31.12.2015        31.12.2014



ASSETS

Non-current assets

Intangible assets                                       0.4               0.3

Tangible assets                                         0.3               0.3

Investments                                             0.0               0.2

Total non-current assets                                0.7               0.9

Current assets

Inventories                                             6.2               5.9

Trade receivables                                       1.7               2.2

Other receivables                                       0.2               0.6

Cash and cash equivalents                               0.0               0.1

Total current assets                                    8.2               8.8

TOTAL ASSETS                                            8.9               9.6



EQUITY AND LIABILITIES

Total equity                                            3.8               1.7

Non-current liabilities

Interest-bearing liabilities                            1.9               3.6

Advances received                                       0.9               0.5

Trade payables                                          0.4               0.8

Other non-interest-bearing liabilities                  1.8               2.9

Total current liabilities                               5.0               8.0

TOTAL EQUITY AND LIABILITIES                            8.9               9.6




Kesko will hold a briefing on the acquisition today at 11.00 at Tapahtumatalo
Bank, Unioninkatu 20, Helsinki.

Further information:
Pekka Lahti, EVP, car trade division, tel. +358 50 383 7663, pekka.lahti@vv-
auto.fi
Lauri Peltola, EVP, communications, corporate responsibility and stakeholder
relations, tel. +358 105 322 400, +358 505 705 606, lauri.peltola@kesko.fi
Jukka Erlund, EVP, Chief Financial Officer, tel. +358 105 322 113,
jukka.erlund@kesko.fi


Kesko Corporation



DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main news media
www.kesko.fi



Kesko is a Finnish listed trading sector company. Kesko operates in the grocery
trade, the building and technical trade and the car trade. Its divisions and
chains act in close cooperation with retailer entrepreneurs and other partners.
Kesko's net sales were €9 billion (rolling 12 months, 1 July 2015 - 30 June
2016) and as at 30 June 2016, it employed around 30,000 people. Kesko has over
1,500 stores engaged in chain operations in Finland, Sweden, Norway, Estonia,
Latvia, Lithuania, Russia, Belarus and Poland. Kesko's shares are listed on
Nasdaq Helsinki. The company's domicile and main premises are in Helsinki. Kesko
is the world's most sustainable trading sector company (The Global 100 Most
Sustainable Corporations in the World). www.kesko.fi



VV-Auto imports and markets Volkswagen, Audi and SEAT passenger cars, Volkswagen
commercial vehicles and MAN trucks and buses in Finland and it also imports and
markets SEAT cars in Estonia and Latvia. VV-Auto is also a major car retailer at
its own outlets in the Greater Helsinki area and Turku. A comprehensive dealer
and service network that covers all of Finland serves VV-Auto's passenger car
and commercial vehicle customers. At the end of 2015, VV-Auto employed 783
people.



AutoCarrera

AutoCarrera imports and markets Porsche sports cars in Finland. AutoCarrera
operates with three exclusive outlets in Helsinki, Tampere and Turku, providing
car sales, service and spare parts.




[]