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2010-07-23 08:00:00 CEST 2010-07-23 08:01:16 CEST REGULATED INFORMATION Kesko Oyj - Interim report (Q1 and Q3)Interim report for 1 January - 30 June 2010KESKO CORPORATION STOCK EXCHANGE RELEASE 23.07.2010 AT 09.00 1(27) Financial performance in brief: *In January-June, the Group's net sales increased by 1.8%. The growth rate strengthened to 6.4% in April-June *Operating profit excluding non-recurring items was €99.0 million in January-June, which was clearly better than in the previous year (€39.8 million). In April-June, the operating profit excluding non-recurring items was €78.1 million (€36.4 million), as profitability improved in all divisions *The Kesko Groups' net sales and operating profit excluding non-recurring items are expected to grow during the next twelve months Key performance indicators 1-6/2010 1-6/2009 4-6/2010 4-6/2009 Net sales, € million 4,237 4,160 2,279 2,143 Operating profit excl. non-recurring items, € million 99.0 39.8 78.1 36.4 Profit before tax, € million 100.6 56.5 78.7 38.2 Investments, € million 87.7 107.2 45.7 55.8 Earnings/share, €, diluted 0.67 0.31 0.51 0.19 Earnings/share excl. non-recurring items, €, basic 0.66 0.11 0.51 0.15 30.6.2010 30.6.2009 Equity ratio, % 51.2 51.0 Equity/share, € 20.30 19.36 FINANCIAL PERFORMANCE Net sales and profit in January-June 2010 The Group's net sales in January-June 2010 were €4,237 million, which is 1.8% up on the corresponding period of the previous year (€4,160 million). The positive trend in net sales clearly strengthened toward the end of the reporting period. Net sales increased by 2.7% in Finland and decreased by 2.7% in other countries. International operations accounted for 16.1% (16.8%) of net sales. In the food trade, steady net sales growth continued although food prices slipped. The sales of the building and home improvement trade and the car trade clearly picked up in spring. 1-6/2010 Net sales, M€ Change, % Operating profit excl. Change, M€ non-recurring items, M€ Food trade 1,888 +1.4 73.7 +9.9 Home and speciality goods trade 689 +1.8 7.1 +23.8 Building and home improvement trade 1,207 +2.9 4.2 -1.5 Car and machinery trade 534 +0.9 20.5 +24.6 Common operations and eliminations -81 +1.5 -6.5 +2.4 Total 4,237 +1.8 99.0 +59.2 Kesko's positive profit performance strengthened in the second quarter of the year. Non-recurring items excluded, the operating profit was €99.0 million (€39.8 million), representing 2.3% (1.0%) of net sales. The operating profit was €100.0 million (€65.9 million). The non-recurring income in the comparative period included €27.9 million of gains on the disposals of real estate and €1.9 million of impairment charges on real estate. The Group's profit before tax for January-June was €100.6 million (€56.5 million). Cost reductions, coupled with more efficient inventory process management significantly contributed to the Group's improved profitability performance. The operating profit excluding non-recurring items exceeded the level of the comparative period especially in the home and speciality goods trade and in the car and machinery trade. In addition, the profit of the car and machinery trade in the comparative period was negatively impacted by the €9 million amount of impairments and expense provisions recognised on the Baltic agricultural supplies business. The Group's earnings per share were €0.67 (€0.31). The Group's equity per share was €20.30 (€19.36). In January-June, the K-Group's (i.e. Kesko's and the chain stores') retail and B2B sales, including VAT, were €6,179 million, up 0.8% compared to the previous year. During the same period, K-food stores' grocery sales grew by 3.3% (VAT 0%). The K-Group chains' sales entitling to K-Plussa points were €3,021 million, up 2.3% compared to the previous year. In January-June, the K-Plussa customer loyalty programme gained 44,965 new households. At the end of June, there was 2,065,384 K-Plussa households. Net sales and profit in April-June 2010 The Group's net sales in April-June 2010 were €2,279 million, which is 6.4% up on the corresponding period of the previous year (€2,143 million). Net sales increased by 7.0% in Finland. The growth strengthened especially in the building and home improvement trade and the car and machinery trade. In other countries net sales increased by 3.6%. International operations accounted for 17.9% (18.4%) of net sales. 4-6/2010 Net sales, M€ Change, % Operating profit excl. Change, M€ non-recurring items, M€ Food trade 976 +0.2 42.1 +12.0 Home and speciality goods trade 334 +0.9 7.0 +13.0 Building and home improvement trade 712 +10.6 17.9 +3.1 Car and machinery trade 298 +27.6 14.1 +12.2 Common operations and eliminations -41 +4.6 -3.1 +1.3 Total 2,279 +6.4 78.1 +41.7 Kesko's positive profit performance strengthened in the second quarter of the year. Non-recurring items excluded, the operating profit was €78.1 million (€36.4 million), representing 3.4% (1.7%) of net sales. The operating profit was €79.0 million (€42.7 million). The non-recurring income in April-June in the previous year included €8.1 million of gains on the disposals of real estate and €1.9 million of impairment charges on real estate. The Group's profit before tax for April-June was €78.7 million (€38.2 million). In addition to sales growth, profitability in the second quarter was improved by efficient inventory management and cost adjustments. The operating profit excluding non-recurring items exceeded the level of the comparative period especially in the home and speciality goods trade and in the car and machinery trade. The Group's earnings per share were €0.51 (€0.19). The Group's equity per share was €20.30 (€19.36). In April-June, the K-Group's (i.e. Kesko's and the chain stores') retail and B2B sales, including VAT, were €3,416 million, up 4.7% compared to the previous year. The K-Group chains' sales entitling to K-Plussa points were €1,593 million, up 1.5% compared to the previous year. Finance In January-June, the cash flow from operating activities was €135.4 million (€136.3 million). The net cash from investing activities was €-85.7 million (€-19.5 million). The cash flow from investing activities included €4.6 million (€89.6 million) of proceeds from the sale of fixed assets. In January-June, the Group's liquidity and solvency remained at an excellent level. At the end of the period, liquid assets totalled €713 million (€507 million). Interest-bearing liabilities were €490 million (€526 million) and interest-bearing net liabilities €-223 million (€18 million) at the end of June. Equity ratio was 51.2% (51.0%) at the end of the period. In January-June, the Group's net finance income was €0.6 million (net finance costs €9.5 million). The hedging costs of the Baltic and Russian currency exposures, which had increased the net finance costs in the previous year, normalised and were €0.9 million (€10.9 million). Interest income on liquid assets continued to decrease following a decline in the market interest rate level. In April-June, the cash flow from operating activities was €127.3 million (€143.2 million). The net cash from investing activities was €-44.3 million (€-25.2 million). The cash flow from investing activities included €3.5 million (€26.3 million) of proceeds from the sale of fixed assets. In April-June, the Group's net finance costs were €0.2 million (net finance costs €4.4 million). Taxes The Group's taxes in January-June were €31.7 million (€22.3 million). The effective tax rate was 31.5% (39.5%), affected by loss-making foreign operations. The Group's taxes in April-June were €24.8 million (€15.7 million). The effective tax rate was 31.5% (41.2%). Investments In January-June, the Group's investments totalled €87.7 million (€107.2 million), or 2.1% (2.6%) of net sales. Investments in store sites were €63.5 million (€88.4 million) and other investments €24.2 million (€18.8 million). Investments in foreign operations represented 29.7% (33.8%) of total investments. In April-June, the Group's investments totalled €45.7 million (€55.8 million), or 2.0% (2.6%) of net sales. Investments in store sites were €31.0 million (€46.0 million) and other investments €14.7 million (€9.7 million). Investments in foreign operations represented 20.7% (39.2%) of total investments. Personnel In January-June, the average number of employees in the Kesko Group was 17,913 (19,678) converted into full-time employees. In Finland, the average decrease was 625 people, while outside Finland, it was 1,139. At the end of June 2010, the total number of employees was 22,467 (23,776), of whom 13,099 (13,773) worked in Finland and 9,368 (10,003) outside Finland. Compared to the end of June 2009, there was a decrease of 674 people in Finland and 635 outside Finland. During the reporting period, the Group's staff cost decreased by €12.8 million, or by 4.7%, compared to the previous year. SEGMENTS 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 1-6/2010 1-6/2009 4-6/2010 4-6/2009 Net sales, € million 1,888 1,861 976 974 Operating profit excl. non-recurring items, € million 73.7 63.9 42.1 30.1 Operating profit as % of net sales excl. non-recurring items 3.9 3.4 4.3 3.1 Investments, € million 37.9 40.2 21.4 19.5 Net sales, € million 1-6/2010 Change, % 4-6/2010 Change, % Sales to K-food stores 1,451 +2.7 748 +0.8 Kespro 334 +1.1 177 +1.1 Others 103 -12.6 51 -9.6 Total 1,888 +1.4 976 +0.2 January-June 2010 In the food trade, the net sales in January-June were €1,888 million (€1,861 million), up 1.4%. During the same period, the grocery sales of K-food stores increased by 3.3% (VAT 0%). Good sales performance was achieved especially by K-citymarkets and K-supermarkets. In January-June, the growth rate of the total grocery trade market in Finland is estimated at some 1-2% (VAT 0%) compared to the previous year (Kesko's own estimate). K-food stores' market share strengthened during the first part of the year. In January-June, the operating profit excluding non-recurring items of the food trade was €73.7 million (€63.9 million), or €9.9 million up on the previous year. The operating profit was €73.9 million (€76.1 million). The comparative year's operating profit was increased by €13.0 million of non-recurring gains on real estate disposals. In January-June, investments in the food trade were €37.9 million (€40.2 million), of which investments in store sites were €28.2 million (€34.2 million). April-June 2010 In the food trade, the net sales in April-June were €976 million (€974 million), up 0.2%. During the same period, the grocery sales of K-food stores increased by 2.6% (VAT 0%). In April-June, the operating profit excluding non-recurring items of the food trade was €42.1 million (€30.1 million) In addition to retail sales growth and cost savings, the improved profit is partly attributable to the lower-than-usual campaign volume as the food manufacturing industry cancelled some of the agreed campaigns during the strikes in the spring. In April-June, investments in the food trade were €21.4 million (€19.5 million), of which investments in store sites were €16.7 million (€16.8 million). In April-June 2010, three new K-supermarkets and one new K-market were opened. In addition, renovations and extensions were carried out in 26 stores. The most significant store sites being built are the new K-citymarkets in Hyvinkää, in Palokka, Jyväskylä, in the Karisma shopping centre in Karisto, Lahti, in Päivölä, Seinäjoki and in Iisalmi where also the existing K-citymarket is being converted into a K-supermarket. K-supermarket Kankaanpää is being extended into a K-citymarket. New K-supermarkets are being built in Paloheinä, Helsinki, in Jalasjärvi, Kouvola and Sodankylä. K-supermarkets in Nilsiä and Raisio are being extended, and K-market Suonenjoki and K-market Jokela in Tuusula are being extended into K-supermarkets. Home and speciality goods trade 1-6/2010 1-6/2009 4-6/2010 4-6/2009 Net sales, € million 689 677 334 331 Operating profit excl. non-recurring items, € million 7.1 -16.7 7.0 -6.0 Operating profit as % of net sales excl. non-recurring items 1.0 -2.5 2.1 -1.8 Investments, € million 12.8 16.9 9.3 7.1 Net sales, € million 1-6/2010 Change, % 4-6/2010 Change, % Anttila 215 -1.0 101 -1.2 K-citymarket Home and Speciality Goods 276 +7.2 139 +3.5 Intersport 76 +2.9 33 +3.2 Indoor 71 -2.6 35 -2.2 Musta Pörssi 43 -5.8 23 -3.7 Kenkäkesko 10 -11.8 4 +17.2 Total 689 +1.8 334 +0.9 January-June 2010 In the home and speciality goods trade, the net sales in January-June were €689 million (€677 million), up 1.8%. K-citymarket's net sales performance was good especially in clothes and household goods. The net sales were also increased by the stores opened in the previous year. As the housing market picked up, the home decoration products of the Asko and Kodin Ykkönen stores sold better than in the comparative period. As for Intersport Finland, especially Budget Sport's sales were up on the previous year. Sunday opening had a clearly positive impact on the sales performance in January-April. The operating profit of the home and speciality goods trade excluding non-recurring items in January-June was €7.1 million, a €23.8 million year-on-year increase attributable to increased sales, improved productivity and more efficient purchasing. Investments in the home and speciality goods trade in January-June were €12.8 million (€16.9 million). At the beginning of the year, Kodin Ykkönen in Kaisaniemi, Helsinki was closed down due to the termination of the lease. The K-citymarket in downtown Pori was converted into a K-supermarket early this year. The Anttila department store in Jyväskylä was relocated to a new site in March 2010. Indoor disposed of its operating activities in Latvia in March. A new Kodin Ykkönen was opened in Lappeenranta at the end of May. April-June 2010 In the home and speciality goods trade, the net sales in April-June were €334 million (€331 million), up 0.9%. The best net sales performance was achieved in clothes and sports equipment. The operating profit of the home and speciality goods trade excluding non-recurring items in April-June was €7.0 million, a €13.0 million year-on-year increase. The operating profit excluding non-recurring items was positively impacted by improved productivity, cost savings and more efficient purchasing. Investments in the home and speciality goods trade in April-June were €9.3 million (€7.1 million). Building and home improvement trade 1-6/2010 1-6/2009 4-6/2010 4-6/2009 Net sales, € million 1,207 1,173 712 643 Operating profit excl. non-recurring items, € million 4.2 5.6 17.9 14.8 Operating profit as % of net sales excl. non-recurring items 0.3 0.5 2.5 2.3 Investments, € million 28.4 46.3 10.4 26.8 Net sales, € million 1-6/2010 Change, % 4-6/2010 Change, % Rautakesko Finland 588 +5.1 338 +14.6 K-rauta AB 99 +10.7 63 +20.3 Byggmakker 262 +14.7 154 +15.6 Rautakesko Estonia 24 -24.2 14 -23.9 Rautakesko Latvia 22 -8.9 13 -1.4 Senukai 96 -28.5 59 -20.7 Rautakesko Russia 90 +10.5 55 +25.4 OMA 28 +9.6 18 +23.1 Total 1,207 +2.9 712 +10.6 January-June 2010 In the building and home improvement trade, the net sales in January-June were €1,207 million (€1,173 million), up 2.9%. The building and home improvement market increased in January-June by some 7.4% in Finland, some 1% in Norway and some 4% in Sweden. The market decreased by some 20-30% in the Baltic countries (Rautakesko's estimate). In January-June, the net sales in Finland were €588 million, an increase of 5.1%. The building and home improvement trade contributed €430 million, and the agricultural supplies trade €158 million to the net sales in Finland. The net sales of the building and home improvement trade in Finland were up 11.1%. The net sales of the agricultural supplies trade decreased by 8.5%. The net sales from foreign operations in the building and home improvement trade were €618 million (€613 million), an increase of 0.9%. In addition to the decline in demand in the Baltic countries, the sales performance of foreign operations was affected by the strengthening of the Swedish krona, the Norwegian krone and the Russian ruble, as well as new store openings. The net sales from foreign operations dropped by 6.0% in terms of the local currencies. In Sweden, the net sales of K-rauta AB decreased by 0.2% in terms of kronas. In Norway, Byggmakker's net sales increased by 3.3% in terms of krones. In Russia, the net sales of the building and home improvement trade decreased by 0.1% in terms of rubles, and the net sales of the Belarusian OMA were up by 15.6% in terms of rubles. Foreign operations contributed 51.2% to the net sales of the building and home improvement trade. In January-June, the operating profit excluding non-recurring items of the building and home improvement trade was €4.2 million (€5.6 million). The profit matched the level of the previous year regardless of the contraction in the Baltic building market as well as investments in new store sites in Russia and Sweden. In January-June, investments in the building and home improvement trade were €28.4 million (€46.3 million), of which 91.5% (78.2%) abroad. The retail sales of the K-rauta and Rautia chains in Finland increased by 7.5% to €578 million, including VAT, in January-June. The sales of Rautakesko B2B Service increased by 13.2%. The retail sales of the K-maatalous chain were €217 million, including VAT, down 10.7%. April-June 2010 In the building and home improvement trade, the net sales in April-June were €712 million (€643 million), up 10.6%. In April-June, the net sales in Finland were €338 million, an increase of 14.6%. The building and home improvement trade contributed €250 million, and the agricultural supplies trade €88 million to the net sales in Finland. The net sales of the building and home improvement trade in Finland were up 17.5%. The net sales of the agricultural supplies trade increased by 6.9%. The net sales from foreign operations in the building and home improvement trade were €374 million (€349 million), an increase of 7.3%. The net sales from foreign operations dropped by 0.7% in terms of the local currencies. In Sweden, the net sales of K-rauta AB increased by 8.0% in terms of kronas. In Norway, Byggmakker's net sales increased by 3.6% in terms of krones. In Russia, the net sales of the building and home improvement trade increased by 11.6% in terms of rubles, and the net sales of the Belarusian OMA were up by 24.7% in terms of rubles. Foreign operations contributed 52.6% to the net sales of the building and home improvement trade. In April-June, the operating profit excluding non-recurring items of the building and home improvement trade was €17.9 million, up €3.1 million. The profit performance was especially affected by an increased demand in Finland. In April-June, investments in the building and home improvement trade were €10.4 million (€26.8 million). In April-June, new K-rauta stores were opened in Stockholm, Sweden and in Kaluga, Russia. OMA, a subsidiary of Rautakesko's Lithuanian subsidiary Senukai, opened a new DIY store in Minsk, Belarus. The retail sales of the K-rauta and Rautia chains in Finland increased by 11.4% to €385 million, including VAT, in April-June. The sales of Rautakesko B2B Service increased by 18.0%. The retail sales of the K-maatalous chain were €139 million, including VAT, down 1.8%. Car and machinery trade 1-6/2010 1-6/2009 4-6/2010 4-6/2009 Net sales, € million 534 529 298 233 Operating profit excl. non-recurring items, € million 20.5 -4.1 14.1 1.9 Operating profit as % of net sales excl. non-recurring items 3.8 -0.8 4.7 0.8 Investments, € million 8.1 3.6 4.0 1.8 Net sales, € million 1-6/2010 Change, % 4-6/2010 Change, % VV-Auto 367 +6.3 197 +46.0 Konekesko 168 -9.3 102 +2.6 Total 534 +0.9 298 +27.6 January-June 2010 In January-June, the net sales of the car and machinery trade were €534 million (€529 million), up 0.9%. VV-Auto's net sales in January-June were €367 million (€345 million), an increase of 6.3%. In the first part of the year, the net sales performance was lowered by the car tax change effective 1 April 2009, causing the car tax to be excluded from the net sales. VV-Auto's comparable net sales growth was 17.0%. During the first part of the year in Finland, new registrations of passenger cars and vans increased by 19.9% and 1.7% respectively compared to the previous year. In January-June, the combined market share of passenger cars imported by VV-Auto rose to 19.9% (18.4%) and that of vans to 22.4% (17.9%). Konekesko's net sales in January-June were €168 million (€185 million), down 9.3% compared to the previous year, as a result of the planned discontinuation of the Baltic grain and agricultural inputs trade. The net sales in Finland were €114 million, an increase of 4.3%. The net sales from Konekesko's foreign operations were €55 million, down 28.3%. In line with its strategy, Konekesko concentrates on the machinery trade also in the Baltic countries. The net sales of Konekesko's machinery trade increased by 6.4%. In January-June, the operating profit excluding non-recurring items of the car and machinery trade was €20.5 million, which was €24.6 million higher than in the previous year. The profit performance was affected by VV-Auto's strong sales growth, cost reduction implemented in the division, as well as the €9 million impairment charges and expense provisions recognised by Konekesko on the Baltic agricultural supplies business for the first quarter of 2009. Investments in the car and machinery trade were €8.1 million (€3.6 million) in January-June. April-June 2010 In April-June, the net sales of the car and machinery trade were €298 million (€233 million), up 27.6%. VV-Auto's net sales in April-June were €197 million (€135 million), an increase of 46.0%. In addition to the general market trend, the net sales were increased especially by Volkswagen's good market share performance, coupled with the execution of the exceptionally full order books seen in the first part of the year. Especially in June, sales were boosted by the VAT rate rise on 1 July 2010. At the end of June, order books were still fuller than in the previous year. Konekesko's net sales in April-June were €102 million (€99 million), up 2.6%. The net sales from Konekesko's machinery trade increased by 20.6% owing to boat exports and a slight recovery of the machinery trade market. In April-June, the operating profit excluding non-recurring items of the car and machinery trade was €14.1 million, which was €12.2 million higher than in the previous year. The profit performance was especially affected by a strong sales growth in the car trade coupled with cost adjustments implemented in the machinery trade. Investments in the car and machinery trade were €4.0 million (€1.8 million) in April-June. Changes in the Group composition There were no significant changes in the Group composition during the reporting period. Resolutions of the Annual General Meeting 2010 and decisions of the Board's organisational meeting Kesko Corporation's Annual General Meeting held on 29 March 2010 adopted the financial statements for 2009 and discharged the Board of Directors' members and the Managing Director from liability. The Annual General Meeting also resolved to distribute a dividend of €0.90 per share, or a total amount of €88,547,166.90, as proposed by the Board. The dividend pay date was 12 April 2010. The Annual General Meeting also resolved to leave the number of members of the Board of Directors 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 proposal to amend the Article of Association providing for the convocation period so that the notice of a General Meeting shall be given not later than three weeks before the General Meeting, but in any case at least nine days before the record date of the General Meeting, referred to in Chapter 4, Article 2, Subsection 2 of the Companies Act. The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 29 March 2010. The organisational meeting of Kesko Corporation's Board of Directors, held after the Annual General Meeting, decided to leave the compositions of the Board's Audit Committee and Remuneration Committee unchanged. The decisions of the Board's organisational meeting were announced in a stock exchange release on 29 March 2010. Shares, securities market and Board authorisations At the end of June 2010, Kesko Corporation's share capital totalled €197,282,584. Of all shares 31,737,007, or 32.2%, were A shares and 66,904,285, or 67.8%, were B shares. The aggregate number of shares was 98,641,292. Each A share entitles to ten (10) votes and each B share to one (1) vote. In January-June, the share capital was increased three times as a result of the share subscriptions with the options of the 2003 stock option scheme. The increases were made on 11 February 2010 (€128,424), 3 May 2010 (€422,754) and 3 June 2010 (€88,348) and announced in stock exchange notifications on the same days. The subscribed shares were included on the main list of Nasdaq OMX Helsinki for public trading with the old B shares on 12 February 2010, 4 May 2010 and 4 June 2010. The price of a Kesko A share quoted on Nasdaq OMX Helsinki (the Helsinki stock exchange) was €23.60 at the end of 2009, and €26.60 at the end of June 2010, representing an increase of 12.7%. Correspondingly, the price of a B share was €23.08 at the end of 2009, and €26.63 at the end of June 2010, representing an increase of 15.4%. In January-June, the highest A share quotation was €30.20 and the lowest was €23.16. For B shares, they were €30.75 and €22.40 respectively. In January-June, the Helsinki stock exchange (OMX Helsinki) All-Share index fell by 3.2%, the weighted OMX Helsinki CAP index rose by 1.0%, while the Consumer Staples Index was up 9.0% during the same period. At the end of June 2010, the market capitalisation of A shares was €844 million, while that of B shares was €1,782 million. Their combined market capitalisation was €2,626 million, an increase of €340 million on the end of 2009. In January-June 2010, 752,140 A shares were traded on the Helsinki stock exchange at a total value of €20 million, while 27.9 million B shares were traded at a total value of €748 million. The number of 2003F stock options of the 2003 scheme traded during the reporting period was 273,212 at a total value of about €3.4 million. The 2003 option scheme expired on 30 April 2010. In addition, the company operates the 2007 stock option scheme for management and key personnel which comprises 2007A options, whose exercise period began on 1 April 2010, and 2007B and 2007C options, whose exercise periods will begin at the beginning of April in 2011 and 2012 respectively. The 2007A options were also included on the official list of the Helsinki stock exchange on 1 April 2010. The options of the 2007 option scheme have not been exercised or traded yet. Further information on the Board's authorisations is available at www.kesko.fi. The Board of Directors was authorised by the Annual General Meeting of 30 March 2009 to issue a maximum of 20,000,000 new B shares against payment or other consideration. The authorisation also includes a rights issue. The authorisation has not been used. At the end of June 2010, the number of shareholders was 37,599, which was 1,289 less than at the end of 2009. At the end of June 2010, foreign ownership of all shares was 24%, and foreign ownership of B shares was 36% at the end of June 2010. Flagging notifications Kesko Corporation did not receive flagging notifications during the reporting period. Main events after the reporting period On 1 July 2010, Kesko sold ten properties to Ilmarinen Mutual Pension Insurance Company and Kruunuvuoren Satama Oy, a joint venture established by Ilmarinen, the Kesko Pension Fund and Kesko Corporation. The debt-free selling price of the properties totalled €107.5 million. The €47.4 million gain on the sale of the properties will be treated as a non-recurring item in Kesko's operating profit for the third quarter of the year, with the exception of a non-recurring €2.3 million gain on the sale, which will be recognised for the fourth quarter. In the same connection, the Kesko Pension Fund sold seven retail store properties owned by it to Kruunuvuoren Satama Oy. The Kesko Group companies leased the properties for the Kesko Group companies' use, mainly on 15-year leases with extension options. In consequence, the Kesko Group's lease liabilities rose by about €120 million. Kesko Corporation has made an equity investment of approximately €33 million in the joint venture. Its ownership interest and voting rights in Kruunuvuoren Satama Oy are 49%. The company will be included in the Kesko Group's financial reporting as an associate starting from 1 July 2010 (stock exchange releases on 1 July 2010). Responsibility Kesko's Corporate Responsibility Report 2009 was published in Finnish and English on 5 May. The report has been assured by an independent assurance provider. Kesko has followed the A+ application level of the GRI guidelines in the report. In May, as in the previous year, Kesko was included as a member in the FTSE4Good Global and FTSE4Good Europe indexes focusing on responsible investment. The FTSE4Good indexes include a total of over 800 companies. The assessment for the FTSE Group in London is made by the Ethical Investment Research Service (EIRIS). On Mother's Day, 9 May, Kesko and K-retailers donated the sculpture 'Expectation' by Pekka Jylhä, depicting an expectant mother, to the city of Helsinki. Kesko's Board of Directors supported Finnish institutions of higher education with substantial donations. The donations were granted to Aalto University and the Universities of Helsinki, Tampere, Turku, Eastern Finland, Jyväskylä, Oulu and Vaasa, and to polytechnics to be announced later. The total donation amount was €1,115,000. Kesko's Board of Directors granted scholarships to talented young athletes and art students. The Kesko scholarships were distributed to 24 promising young athletes and 16 art students from different parts of Finland. The total scholarship amount was €40,000 and the recipients were chosen on the recommendation of fine arts universities and sports associations. Kesko sponsored the nationwide polytechnics' Thesis contest which selected the 2009 best theses in April. In addition to categories in separate fields of education, this year's contest also featured a theme category on corporate responsibility. Kesko was the main partner of the ´Your Move On Tour´ series of events organised by the Young Finland Association and the Finnish Sports Federation. The tour, targeted to 13-19-year olds, ran in May-June and Kesko was present in five localities in Finland. Risk management The Kesko Group has established a risk management process according to which divisions regularly assess risks and their management and report on them to the Group's management. Kesko's risk management and risks involved in its operating activities are discussed in more detail in Kesko's Annual Report and the financial statements for 2009, and in the corporate governance section at Kesko's website. During the first months of the year, no material changes have taken place in the risk factors presented in the Annual Report and the financial statements. The most significant risks for Kesko's operating activities in the near future are involved in the general economic development in Kesko's operating area and its impacts on the Kesko Group's sales and profit performance. Country-specific differences in the economic revival will affect the developments in demand especially in the building and home improvement trade and in the machinery trade. In the prevailing market situation, cost reduction, efficient management of inventories, trade receivables and investment assets, as well as risk management responses to the prevention of malpractice are emphasized. The risks and uncertainties related to profit performance have been described in the future outlook section 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 (7/2010-6/2011) in comparison with the 12-month period preceding the reporting period (7/2009-6/2010). The outlook for trends in consumer demand has improved somewhat, especially as a result of higher consumer confidence and continuously low interest rate levels. Nevertheless, the trend in economic development continues to involve significant uncertainties relating to the evolution of total production, tightening taxation and ramifications of possible disturbances in the financial market. Reduced grocery prices continue to dampen market growth in terms of euros, although otherwise the trend in the grocery trade is expected to continue steadily. In the home and speciality goods trade, the market recovery is expected to continue as a result of higher consumer confidence. As house building activity increases, the building and home improvement market is expected to continue strengthening in the Nordic countries and the decline is expected to ease in the other operating countries. In the car and machinery trade, new car sales are expected to increase, and the market situation in the machinery trade is expected to recover slowly. The Kesko Group's net sales and operating profit excluding non-recurring items are expected to grow during the next twelve months. Helsinki, 22 July 2010 Kesko Corporation Board of Directors The information in this interim report is unaudited. Further information is available from Arja Talma, Senior Vice President, CFO, telephone +358 1053 22113, and Jukka Erlund, 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 10.00. An English-language web conference on the interim report will be held today at 14.30 (Finnish time). The web conference login is available at www.kesko.fi. KESKO CORPORATION Paavo Moilanen Senior Vice President, Corporate Communications and Responsibility ATTACHMENTS Accounting policies Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated cash flow statement Group performance indicators Net sales by segment Operating profit by segment Segments' operating profits excl. non-recurring items Segment's operating margins excl. non-recurring items Capital employed by segment Return on capital employed by segment Investments by segment Segment information by quarter Personnel average and at 30 June Group contingent liabilities Calculation of performance indicators K-Group's retail and B2B sales Kesko Corporation's interim report for January-September will be released on 26 October 2010. 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. DISTRIBUTION NASDAQ OMX Helsinki Main news media www.kesko.fi ******** ATTACHMENTS: 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 principles as the annual financial statements for 2009, with the exception of the following changes due to the adoption of new and revised IFRS standards and IFRIC interpretations. -IFRS 3 (revised), Business combinations -IAS 27 (revised), Consolidated and Separate Financial Statements -IAS 39 (amendment) Financial Instruments: Recognition and Measurement - Eligible hedged items -IFRS 5 (amendment) Non-current assets held for sale and discontinued operations -IFRS 2 (amendment) Share-based Payment - Group cash-settled transactions -IFRIC 9 and IAS 39 (Amendments) Reassessment of Embedded Derivatives on Reclassification -IFRIC 17 Distributions of Non-cash Assets to Owners - Annual amendments to the IFRSs (Annual Improvements) The above amendments to standards and interpretations do not have a material impact on the reported income statement, statement of financial position or notes. The net sales from operations in Finland presented in the interim report are inclusive of the export sales of the Finnish companies (previously exports were included in the net sales of other countries). The comparative figures have been restated accordingly. Consolidated income statement (€ million) 1-6/ 1-6/ Change% 4-6/ 4-6/ Change% 1-12/ 2010 2009 2010 2009 2009 Net sales 4,237 4,160 1.8 2,279 2,143 6.4 8,447 Cost of sales -3,648 -3,613 1.0 -1,960 -1,858 5.4 -7,298 Gross profit 589 548 7.5 319 284 12.4 1,149 Other operating income 313 326 -4.2 166 165 0.3 710 Staff cost -260 -273 -4.7 -132 -136 -3.3 -535 Depreciation and impairment charges -57 -58 -2.6 -29 -31 -4.8 -131 Other operating expenses -485 -477 1.6 -245 -240 2.3 -961 Operating profit 100 66 51.7 79 43 85.0 232 Interest income 10 13 -25.1 4 5 -17.6 21 Interest expenses -8 -11 -27.0 -4 -5 -24.8 -20 Exchange differences and other financial items -1 -12 -90.3 -1 -4 -86.2 -17 Income from associates 0 0 (..) 0 0 42.8 0 Profit before tax 101 56 78.1 79 38 (..) 217 Income tax -32 -22 42.0 -25 -16 57.6 -82 Profit for the period 69 34 (..) 54 22 (..) 134 Attributable to Owners of the parent 66 31 (..) 51 19 (..) 125 Non-controlling interests 3 4 -13.9 3 3 -5.4 9 Earnings per share (€) for profit attributable to equity holders of the parent Basic 0.67 0.31 (..) 0.52 0.19 (..) 1.28 Diluted 0.67 0.31 (..) 0.51 0.19 (..) 1.27 Consolidated statement of comprehensive income (€ million) 1-6/ 1-6/ Change% 4-6/ 4-6/ Change% 1-12/ 2010 2009 2010 2009 2009 Net profit for the period 69 34 (..) 54 22 (..) 134 Other comprehensive income Exchange differences on translating foreign operations 7 -3 (..) 4 -1 (..) -3 Cash flow hedge revaluation 7 -7 (..) 8 2 (..) -4 Revaluation of available-for-sale financial assets 1 -1 (..) 1 0 (..) -2 Tax relating to other comprehensive income -2 2 (..) -2 -1 (..) 2 Total other comprehensive income for the period, net of tax 13 -9 (..) 10 0 (..) -7 Total comprehensive income for the period 81 25 (..) 64 23 (..) 127 Attributable to Owners of the parent 77 26 (..) 59 20 (..) 123 Non-controlling interests 5 -1 (..) 5 3 82.7 4 (..) Change over 100% Consolidated statement of financial position (€ million), condensed 30.6.2010 30.6.2009 Change,% 31.12.2009 ASSETS Non-current assets Intangible assets 187 177 5.6 185 Tangible assets 1,101 1,190 -7.5 1,111 Interests in associates and other financial assets 37 36 3.7 36 Loans and receivables 70 62 11.5 71 Pension assets 327 310 5.5 315 Total 1,722 1,776 -3.0 1,717 Current assets Inventories 677 739 -8.4 665 Trade receivables 729 717 1.6 594 Other receivables 138 122 13.1 150 Financial assets at fair value through profit or loss 267 20 (..) 213 Available-for-sale financial assets 372 402 -7.5 428 Cash and cash equivalents 74 85 -13.2 74 Total 2,256 2,085 8.2 2,124 Non-current assets held for sale 51 1 (..) 1 Total assets 4,029 3,862 4.3 3,842 30.6.2010 30.6.2009 Change,% 31.12.2009 EQUITY AND LIABILITIES Equity 2,002 1,901 5.3 2,005 Non-controlling interests 52 60 -14.1 64 Total equity 2,054 1,961 4.7 2,069 Non-current liabilities Pension obligations 2 2 -6.1 2 Interest-bearing liabilities 241 263 -8.5 262 Non-interest-bearing liabilities 4 9 -54.2 6 Deferred tax liabilities 134 128 5.0 128 Provisions 14 18 -26.1 14 Total 394 420 -6.1 412 Current liabilities Interest-bearing liabilities 249 263 -5.1 194 Trade payables 878 809 8.5 704 Other non-interest-bearing liabilities 431 387 11.2 434 Provisions 24 22 7.6 29 Total 1,582 1,481 6.8 1,361 Total equity and liabilities 4,029 3,862 4.3 3,842 (..) Change over 100% Consolidated statement of changes in equity (€ million) Share Issue Share Other Cur- Rev- Re- Non Total capital of premi- reser- rency alu- tained control- share um ves trans ation ear- ling- capital lation sur- nings inte- differ- plus rests ences Balance at 1.1.2009 196 0 191 243 -10 2 1,344 61 2,026 Shares subscribed for with options 1 0 2 3 Option cost 3 0 3 Dividends -98 0 -98 Other changes 1 0 1 Net profit for the period 31 4 34 Other comprehensive income Exchange differences on translating foreign operations 0 1 0 -4 -3 Cash flow hedge revaluation -7 -7 Revaluation of available-for- sale financial assets -1 -1 Tax relating to other comprehensive income 2 2 Total other comprehensive income 0 1 -6 0 -4 -9 Balance at 30.6.2009 196 0 193 243 -9 -4 1,281 60 1,961 Balance at 1.1.2010 197 0 194 243 -7 -3 1,381 64 2,069 Shares subscribed for with options 1 4 4 Option cost 3 0 3 Dividends -89 -18 -106 Other changes 1 0 1 Net profit for the period 66 3 69 Other comprehensive income Exchange differences on translating foreign operations 0 5 0 2 7 Cash flow hedge revaluation 7 7 Revaluation of available-for- sale financial assets 1 1 Tax relating to other comprehensive income -2 -2 Total other comprehensive income 0 5 6 -1 2 13 Balance at 30.6.2010 197 0 198 243 -2 4 1,362 52 2,054 Consolidated cash flow statement (€ million), condensed 1-6/ 1-6/ Change% 4-6/ 4-6/ Change% 1-12/ 2010 2009 2010 2009 2009 Cash flow from operating activities Profit before tax 101 56 78.1 79 38 (..) 217 Planned depreciation 57 56 0.7 29 29 1.6 117 Finance income and costs -1 10 (..) 0 4 -95.0 16 Other adjustments -12 -28 -57.5 -5 -7 -24.1 -74 Working capital Current non-interest-bearing trade and other receivables, increase (-)/ decrease (+) -117 -67 74.9 -55 9 (..) 39 Inventories increase (-)/ decrease (+) -3 130 (..) 11 91 -88.3 207 Current non-interest-bearing liabilities, increase (+)/decrease (-) 174 14 (..) 119 4 (..) -84 Financial items and tax -64 -34 85.0 -50 -25 (..) -59 Net cash from operating activities 135 136 -0.7 127 143 -11.1 379 Cash flow from investing activities Investments -92 -110 -16.4 -48 -51 -5.6 -223 Sales of fixed assets 5 90 -94.8 4 26 -86.5 252 Increase of non-current receivables 0 0 (..) 0 0 (..) 0 Decrease of non-current receivables 1 1 94.0 0 -1 -94.6 2 Net cash used in investing activities -86 -19 (..) -44 -25 75.4 31 Cash flow from financing activities Increase (+)/ decrease (-) in interest-bearing liabilities 45 38 16.4 36 27 34.0 -33 Increase (-)/decrease (+) in current interest-bearing receivables 10 -1 (..) 12 0 (..) -14 Dividends paid -105 -98 6.7 -105 -98 6.7 -98 Equity increase 4 3 36.9 3 3 15.2 5 Short-term money market investments -118 58 (..) 62 4 (..) -98 Other items -7 7 (..) -4 0 (..) 4 Net cash used in financing activities -172 8 (..) 4 -64 (..) -234 Change in cash and cash equivalents -122 124 (..) 87 54 62.8 175 Cash and cash equivalents and current portion of available-for-sale financial assets at 1 Jan. 491 319 53.9 283 387 -26.9 319 Translation difference and revaluation 1 -3 (..) 0 0 (..) -3 Cash and cash equivalents and current portion of available-for-sale financial assets at 30 Jun. 371 440 -15.9 371 440 -15.9 491 (..) Change over 100% Group performance indicators 1-6/2010 1-6/2009 Change, pp Return on capital employed, % 10.2 6.1 4.1 Return on capital employed, %, moving 12 mo 13.2 5.4 7.8 Return on capital employed excl. non-recurring items, % 10.1 3.7 6.4 Return on capital employed excl. non-recurring items, %, moving 12 mo 10.6 6.4 4.2 Return on equity, % 6.7 3.4 3.3 Return on equity, %, moving 12 mo 8.4 2.9 5.5 Return on equity excl. non-recurring items, % 6.6 1.5 5.1 Return on equity excl. non-recurring items, %, moving 12 mo 6.6 4.5 2.1 Equity ratio, % 51.2 51.0 0.3 Gearing, % -10.9 0.9 -11.8 Change, % Investments, € million 87.7 107.2 -18.2 Investments, % of net sales 2.1 2.6 -19.7 Earnings per share, basic, € 0.67 0.31 (..) Earnings per share, diluted, € 0.67 0.31 (..) Earnings per share excl. non-recurring items, basic, € 0.66 0.11 (..) Cash flow from operating activities, € million 135 136 -0.7 Cash flow from investing activities, € million -86 -19 (..) Equity/share, € 20.30 19.36 4.9 Personnel, average 17,913 19,678 -9.0 (..) Change over 100% Group performance indicators 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ by quarter 2009 2009 2009 2009 2010 2010 Net sales, € million 2,018 2,143 2,133 2,153 1,958 2,279 Change in net sales, % -11.4 -15.9 -12.4 -7.7 -3.0 6.4 Operating profit, € million 23.2 42.7 48.3 118.1 20.9 79.0 Operating margin, % 1.1 2.0 2.3 5.5 1.1 3.5 Operating profit excl. non-recurring items, € million 3.4 36.4 47.5 68.0 20.9 78.1 Operating margin excl. non-recurring items, % 0.2 1.7 2.2 3.2 1.1 3.4 Finance income/costs, € million -5.1 -4.4 -4.7 -1.8 0.8 -0.2 Profit before tax, € million 18.2 38.2 43.8 116.3 21.9 78.7 Profit before tax, % 0.9 1.8 2.1 5.4 1.1 3.5 Return on capital employed, % 4.2 8.0 9.4 22.9 4.4 16.0 Return on capital employed excl. non-recurring items, % 0.6 6.8 9.2 13.2 4.3 15.8 Return on equity, % 2.4 4.6 5.2 14.7 2.9 10.6 Return on equity excl. non-recurring items, % -0.6 3.7 5.0 7.7 2.9 10.5 Equity ratio, % 49.8 51.0 52.3 54.1 51.1 51.2 Investments, € million 51.5 55.8 49.2 41.5 42.0 45.7 Earnings per share, diluted, € 0.12 0.19 0.24 0.73 0.15 0.51 Equity per share, € 19.16 19.36 19.60 20.39 19.69 20.30 Segment information Net sales by segment, 1-6/ 1-6/ Change, 4-6/ 4-6/ Change, (€ million) 2010 2009 % 2010 2009 % Food trade, Finland 1,888 1,861 1.4 976 974 0.2 Food trade, other countries* - - - - - - Food trade total 1,888 1,861 1.4 976 974 0.2 - of which intersegment trade 82 79 4.1 40 37 7.3 Home and speciality goods trade, Finland 682 667 2.3 331 327 1.4 Home and speciality goods trade, other countries* 8 11 -30.0 3 5 -31.4 Home and speciality goods trade total 689 677 1.8 334 331 0.9 - of which intersegment trade 11 10 11.9 7 6 6.8 Building and home improvement trade, Finland 588 560 5.1 338 295 14.6 Building and home improvement trade, other countries* 618 613 0.9 374 349 7.3 Building and home improvement trade total 1,207 1,173 2.9 712 643 10.6 - of which intersegment trade 0 1 -67.1 0 1 -54.0 Car and machinery trade, Finland 479 453 5.7 266 192 38.8 Car and machinery trade, other countries* 55 76 -28.1 31 41 -24.1 Car and machinery trade total 534 529 0.9 298 233 27.6 - of which intersegment trade 0 0 (..) 0 0 (..) Common operations and eliminations -81 -80 1.5 -41 -39 4.6 Finland total 3,556 3,461 2.7 1,870 1,748 7.0 Other countries total* 680 699 -2.7 409 395 3.6 Group total 4,237 4,160 1.8 2,279 2,143 6.4 * Net sales in countries other than Finland. Operating profit by 1-6/ 1-6/ 4-6/ 4-6/ segment (€ million) 2010 2009 Change 2010 2009 Change Food trade 73.9 76.1 -2.2 42.2 33.8 8.4 Home and speciality goods trade 7.1 -6.9 14.0 7.0 -3.6 10.6 Building and home improvement trade 4.2 9.6 -5.4 17.9 14.8 3.2 Car and machinery trade 21.4 -4.1 25.5 15.0 1.9 13.1 Common operations and eliminations -6.6 -8.8 2.3 -3.2 -4.3 1.1 Total 100.0 65.9 34.1 79.0 42.7 36.3 Operating profit excl. non-recurring items by 1-6/ 1-6/ 4-6/ 4-6/ segment (€ million) 2010 2009 Change 2010 2009 Change Food trade 73.7 63.9 9.9 42.1 30.1 12.0 Home and speciality goods trade 7.1 -16.7 23.8 7.0 -6.0 13.0 Building and home improvement trade 4.2 5.6 -1.5 17.9 14.8 3.1 Car and machinery trade 20.5 -4.1 24.6 14.1 1.9 12.2 Common operations and eliminations -6.5 -9.0 2.4 -3.1 -4.4 1.3 Group total 99.0 39.8 59.2 78.1 36.4 41.7 Segments' 1-6/ 1-6/ Change, 4-6/2010 4-6/2009 Change, operating 2010 2009 pp % of net % of net pp margins excl. % of net % of net sales sales non-recurring sales sales items Food trade 3.9 3.4 0.5 4.3 3.1 1.2 Home and speciality goods trade 1.0 -2.5 3.5 2.1 -1.8 3.9 Building and home improvement trade 0.3 0.5 -0.1 2.5 2.3 0.2 Car and machinery trade 3.8 -0.8 4.6 4.7 0.8 3.9 Group total 2.3 1.0 1.4 3.4 1.7 1.7 Capital employed by segment, cumulative average (€ million) 1-6/ 1-6/ 4-6/ 4-6/ 2010 2009 Change 2010 2009 Change Food trade 625 635 -10 635 624 11 Home and speciality goods trade 439 523 -84 447 527 -80 Building and home improvement trade 648 661 -13 660 665 -5 Car and machinery trade 187 266 -79 177 247 -70 Common operations and eliminations 59 79 -20 56 67 -10 Group total 1,958 2,164 -206 1,975 2,129 -154 Return on capital Moving employed 1-6/ 1-6/ Change, pp 4-6/ 4-6/ Change, pp 12 mo 6/2010 excl. non-recurring items 2010 2009 2010 2009 by segment, % Food trade 23.6 20.1 3.5 26.5 19.3 7.2 22.6 Home and speciality goods trade 3.2 -6.4 9.6 6.3 -4.5 10.8 11.3 Building and home improvement trade 1.3 1.7 -0.4 10.9 8.9 2.0 1.6 Car and machinery trade 22.0 -3.0 25.0 32.0 3.1 28.9 12.3 Group total 10.1 3.7 6.4 15.8 6.8 9.0 10.6 Investments by segment (€ million) 1-6/ 1-6/ 4-6/ 4-6/ 2010 2009 Change 2010 2009 Change Food trade 38 40 -2 21 19 2 Home and speciality goods trade 13 17 -4 9 7 2 Building and home improvement trade 28 46 -18 10 27 -16 Car and machinery trade 8 4 5 4 2 2 Group total 88 107 -20 46 56 -10 Segment information by quarter Net sales by segment 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ (€ million) 2009 2009 2009 2009 2010 2010 Food trade 888 974 966 970 912 976 Home and speciality goods trade 346 331 381 500 355 334 Building and home improvement trade 529 643 614 525 495 712 Car and machinery trade 296 233 213 205 236 298 Common operations and eliminations -41 -39 -41 -47 -40 -41 Group total 2,018 2,143 2,133 2,153 1,958 2,279 Operating profit by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ segment (€ million) 2009 2009 2009 2009 2010 2010 Food trade 42.3 33.8 35.8 58.7 31.7 42.2 Home and speciality goods trade -3.3 -3.6 7.0 66.5 0.1 7.0 Building and home improvement trade -5.2 14.8 8.5 1.6 -13.8 17.9 Car and machinery trade -6.0 1.9 1.7 -2.7 6.4 15.0 Common operations and eliminations -4.6 -4.3 -4.5 -5.9 -3.4 -3.2 Group total 23.2 42.7 48.3 118.1 20.9 79.0 Operating profit excl. non- recurring items by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ segment (€ million) 2009 2009 2009 2009 2010 2010 Food trade 33.8 30.1 35.5 33.7 31.7 42.1 Home and speciality goods trade -10.7 -6.0 6.5 39.7 0.1 7.0 Building and home improvement trade -9.1 14.8 8.4 -2.1 -13.8 17.9 Car and machinery trade -6.0 1.9 1.7 2.7 6.4 14.1 Common operations and eliminations -4.6 -4.4 -4.5 -6.0 -3.4 -3.1 Group total 3.4 36.4 47.5 68.0 20.9 78.1 Operating margin excl. non-recurring items by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ segment, % 2009 2009 2009 2009 2010 2010 Food trade 3.8 3.1 3.7 3.5 3.5 4.3 Home and speciality goods trade -3.1 -1.8 1.7 7.9 0.0 2.1 Building and home improvement trade -1.7 2.3 1.4 -0.4 -2.8 2.5 Car and machinery trade -2.0 0.8 0.8 1.3 2.7 4.7 Group total 0.2 1.7 2.2 3.2 1.1 3.4 Personnel average and at 30.6. Personnel, average by segment 1-6/2010 1-6/2009 Change Food trade 2,894 3,121 -227 Home and speciality goods trade 5,366 5,703 -337 Building and home improvement trade 8,145 9,073 -928 Car and machinery trade 1,117 1,366 -249 Common operations 391 415 -24 Group total 17,913 19,678 -1,765 Personnel at 30.6.* by segment 2010 2009 Change Food trade 3,485 3,792 -307 Home and speciality goods trade 7,865 8,260 -395 Building and home improvement trade 9,451 9,883 -432 Car and machinery trade 1,208 1,371 -163 Common operations 458 470 -12 Group total 22,467 23,776 -1,309 * total number incl. part-time employees Group contingent liabilities (€ million) 30.6.2010 30.6.2009 Change, % For own commitments 266 215 23.4 For shareholders 0 0 -0.7 For others 6 8 -24.9 Lease liabilities for machinery and fixtures 21 24 -11,7 Lease liabilities for real estate 2,294 2,114 8.5 Contingent liabilities arising from derivative financial instruments Fair value Values of underlying instruments at 30.6. 30.6.2010 30.6.2009 30.6.2010 Interest rate derivatives Forward and future contracts 2 12 2.00 Interest rate swap contracts 206 204 3.82 Currency derivatives Forward and future contracts 480 488 -9.53 Option agreements - 1 - Foreign exchange contracts 100 100 -2.63 Commodity derivatives Electricity derivatives 48 40 -0.36 Grain derivatives - 1 - 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, %, moving Operating profit for prior 12 months x 12 months 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for 12 months Return on capital employed, excl. Operating profit excl. non-recurring items non-recurring items*, % x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for the reporting period Operating profit excl. non-recurring items for prior 12 months x 100 / (Non-current Return on capital employed excl. assets + Inventories + Receivables + Other non-recurring items, %, current assets - Non-interest-bearing moving 12 months liabilities) on average for 12 months (Profit/loss before tax - income tax) x Return on equity*, % 100 / Shareholders' equity Return on equity, %, moving 12 months (Profit/loss for prior 12 months before tax - income tax for prior 12 months) x 100 / Shareholders' equity (Profit/loss adjusted for non-recurring items before tax - income tax adjusted for Return on equity excl. non-recurring the tax effect of non-recurring items) x items*, % 100 / Shareholders' equity (Profit/loss for prior 12 months adjusted for non-recurring items before tax - income tax for prior 12 months adjusted for the tax effect of non-recurring items) Return on equity excl. non-recurring x items, %, moving 12 months 100 / Shareholders' equity Shareholders' equity x 100 / Equity ratio, % (Balance sheet total - prepayments received) (Profit - non-controlling interests) / Earnings/share, diluted Average number of shares adjusted for the dilutive effect of options Earnings/share, basic (Profit - non-controlling interests) / Average number of shares (Profit adjusted for non-recurring items - Earnings/share excl. non-recurring non-controlling interests)/ items, basic Average number of shares Equity attributable to equity holders of Equity/share the parent / Basic number of shares at balance sheet date Gearing, % Interest-bearing net liabilities x 100 / Shareholders' equity *Capital return ratios have been annualised K-Group's retail and B2B sales in euros, incl. VAT (preliminary data): 1.1.-30.6.2010 1.4.-30.6.2010 K-Group retail and B2B € million Change, % € million Change, % sales K-Group food trade K-food stores, Finland 2,389 -0.6 1,248 -1.1 Kespro 381 -4.1 202 -4.2 Food trade total 2,770 -1.1 1,450 -1.5 K-Group home and speciality goods trade Home and speciality goods stores, Finland 921 2.7 445 0.5 Home and speciality goods stores, Baltic countries 9 -29.1 4 -30.6 Home and speciality goods trade total 930 2.2 449 0.1 K-Group building and home improvement trade K-rauta and Rautia 578 7.5 385 11.4 Rautakesko B2B Service 107 13.2 62 18.0 K-maatalous 217 -10.7 139 -1.8 Finland total 902 3.1 586 8.6 Building and home improvement stores, other Nordic countries 608 12.7 372 16.4 Building and home improvement stores, Baltic countries 170 -24.6 104 -18.1 Building and home improvement stores, other countries 140 10.5 86 25.4 Building and home improvement trade total 1,820 3.0 1,148 8.8 K-Group car and machinery trade VV-Autotalot 210 2.1 118 30.6 VV-Auto, import 249 11.2 129 66.3 Konekesko, Finland 136 2.9 85 20.1 Finland total 596 5.9 332 39.1 Konekesko, Baltic countries 63 -26.8 37 -21.2 Car and machinery trade total 659 1.6 369 29.3 Finland total 5,189 1.0 2,814 4.4 Other countries total 990 -0.1 602 6.2 Retail and B2B sales total 6,179 0.8 3,416 4.7 [HUG#1433681] |
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