Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Shareholder Meeting (April 2020)
20 slides from Kesko Oyj Class A's shareholder meeting presentation, Apr 28, 2020
Slide 1: 2019 Review by the President and CEO
KESKO CORPORATION ANNUAL GENERAL MEETING 28 APRIL 2020 2019 Review by the President and CEO Growth Strategy Yielded Record Result MIKKO HELANDER, PRESIDENT AND CEO
Slide 2: Key Events in 2019
Key Events in 2019 • All-time record result • Strong financial position and cash flow • Excellent performance in the grocery trade • World’s most sustainable grocery trade company • Strong growth continued in the building and technical trade • Profit generation continued good in the car trade despit
Slide 3: 2019 Was a Strong Year
2019 Was a Strong Year Kesko recorded its best-ever result 1-12/2019 1-12/2018 Net sales, € million 10,720.3 10,382.8 Change in net sales, % +3.3 -1.0 Operating profit, € million 447.8 404.3 Operating profit, comparable, € million 461.6 428.5 Operating margin, comparable, % 4.3 4.1 Profit for the re
Slide 4: Strong Cash Flow and Financial Position
Strong Cash Flow and Financial Position Cash flow from operating activities €893.1 million 31.12.2019 31.12.2018 Cash flow from operating activities, continuing operations, € million 893.1 748.4 Cash flow from investing activities, € million -616.8 -209.0 Liquid assets, € million 169.0 249.6 Interes
Slide 5: Net Sales by Division
Net Sales by Division Net sales grew by 3.3% € million % Comparable growth 1.4% 11 000 3.2% € million 10,720.3 10 500 2.1% 5,000 5,531.2 5,385.7 10,382.8 10 000 4,000 4,331.1 4,102.6 9 500 3,000 9 000 2,000 -11.6% 1,000 8 500 893.1 863.9 0 8 000 Grocery trade Building and technical trade Car trade G
Slide 6: Operating Profit by Division
Operating Profit by Division All-time record result + €33.1m €m + €33.4m 350 461.6 450 300 327.9 294.5 250 425 428.5 200 + €16.0m 150 400 142.8 126.8 100 - €8.5m 375 50 35.2 26.8 0 Grocery trade Building and technical trade Car trade 350 Group, continuing operations 2018 2019 2018 2019 6 Comparable
Slide 7: Total Capital Expenditure €686 Million
Total Capital Expenditure €686 Million € million All capital expenditure in store sites 227.7 Acquisitions 290.5 IT 33.9 Other investments 134.0 Total 686.1 7
Slide 8: Impacts of the COVID-19 epidemic and measures taken
Impacts of the COVID-19 epidemic and measures taken
Slide 9: The COVID-19 epidemic began to affect our operations significantly from mid-March onwards
The COVID-19 epidemic began to affect our operations significantly from mid-March onwards Despite ongoing worldwide efforts to stop the epidemic, we must prepare for the possibility that exceptional circumstances will last for some time In response, we have adjusted our management practices and oper
Slide 10: Impacts of the Pandemic on the Economy Depend on Containment Measures
Impacts of the Pandemic on the Economy Depend on the Duration and Success of Containment Measures Finland: Sweden: Norway: The Baltic Countries: Poland: COVID-19 strategy: COVID-19 strategy: COVID-19 strategy: COVID-19 strategy: COVID-19 strategy: Emergency Powers Act, tight No tight restrictions, T
Slide 11: Key Measures
Key Measures # Ensuring the safety of customers and personnel # Ensuring functioning purchasing and supply chains under all circumstances # Growing online sales services fast # Postponing development projects, focus on dealing with the situation # Securing cash flow: - Savings in personnel costs, ov
Slide 12: Epidemic well under control in K Group
Epidemic well under control in K Group Significant investments made in protection, constant efforts to improve safety Testing has begun and will be expanded Some 30 confirmed cases at the moment Preparations to safely return back to normal have begun
Slide 13: Impacts Vary within Grocery Trade
Impacts Vary within Grocery Trade Impact on K Group Impact on market • Strong food sales growth in K-food stores and online • Significant growth in food retail • Kespro’s sales down by approx. 50% due to restrictions • Hoarding seen in individual product categories on restaurants and cafeterias • Fe
Slide 14: Strong Growth in Online Grocery Sales
Strong Growth in Online Grocery Sales K-ruoka.fi has become the biggest online grocery service in Finland, highest growth rate over 800% a week Online sales weeks 1-16/2020 • We have been able to successfully respond to 7000 000,0 strong growth in online demand 6000 000,0 • Our K-ruoka.fi network is
Slide 15: Moderate Impact So Far on Building and Technical Trade Sales
Moderate Impact So Far on Building and Technical Trade Sales Impact on K Group Impact on market • Sales development in building and home improvement • Activity on construction sites has continued without B2C trade has been good in Finland and Sweden major disruptions • Sales levels have also stayed
Slide 16: Significant Decrease in Demand in Car Trade
Significant Decrease in Demand in Car Trade Impact on K Group Impact on market • New car sales and orders significantly below • Overall, orders for new passenger cars down by normal levels approx. 60%, orders for vans down by 40% • Used car sales also clearly down • Demand has weakened significantly
Slide 17: Growth Strategy Execution Continues, but Right Now Our Focus Is on Crisis Management
Growth Strategy Execution Continues, but Right Now Our Focus Is on Crisis Management 17
Slide 18: Dividend €2.52 per share
Dividend €2.52 per share in line with the original Board proposal, to be paid in two instalments Share split 1:4 Three new shares issued for each current one in line with the original Board proposal
Slide 19: Outlook and Guidance for 2020
Outlook and Guidance for 2020 Outlook for Kesko Group's continuing operations is given for year 2020, in comparison with year 2019. Due to the COVID-19 pandemic and global economic uncertainty, the company estimates that its comparable operating profit for continuing operations will amount to €400–4
Slide 20: AI
AI