23 July 2010 CFO Arja Talma - Kesko · Page 20 Q2 2010 Media and analyst briefing 23.7.2010 ATa...
Transcript of 23 July 2010 CFO Arja Talma - Kesko · Page 20 Q2 2010 Media and analyst briefing 23.7.2010 ATa...
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 2
Increasing customer satisfaction
and efficiency generate results
• Positive trend in Kesko’s net sales strengthened and profit improved
clearly compared to the previous year
• K-citymarket, Anttila, Asko, Sotka and Intersport clearly improved their
profitability
• Volkswagen, Audi and Seat achieved record market share at 19.9%
• K-food stores’ market share increased. K-food stores’ grocery sales
grew by 3.3%
• Sales in the building and home improvement trade are growing in
Finland, Sweden and Norway
• Solvency and liquidity at excellent level, lower hedging costs and tax
rate
• Net sales and operating profit excluding non-recurring items are
expected to grow during the next twelve months
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 3
Net sales by division
1.4.-30.6. (M€)
2010 2009 Change,%
Food trade 976 974 0.2
Home and speciality goods trade 334 331 0.9
Building and home improvement trade 712 643 10.6
Car and machinery trade 298 233 27.6
Common operations and eliminations -41 -39 4.6
Total 2,279 2,143 6.4
1 713 1 748 1 741 1 807 1 686 1 870
304395 392 346
272
409
0
500
1 000
1 500
2 000
2 500
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 4
+3.6%
+7.0%
Group’s net sales by quarter(M€)
-11.4%
Q1
2009
Finland Other countries
-15.9%
Q2 Q3
-12.4% -7.7%
Q4 Q1
2010
Q2
+6.4%
-3.0%
1,713 1,748 1,741 1,807 1,686 1,870
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 5
Net sales by division
1.1.-30.6. (M€)
2010 2009 Change,%
Food trade 1,888 1,861 1.4
Home and speciality goods trade 689 677 1.8
Building and home improvement trade 1,207 1,173 2.9
Car and machinery trade 534 529 0.9
Common operations and eliminations -81 -80 1.5
Total 4,237 4,160 1.8
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 6
Operating profit excl. non-recurring items
by division 1.4.-30.6. (M€)
2010 2009 Change
Food trade 42.1 30.1 12.0
Home and speciality goods trade 7.0 -6.0 13.0
Building and home improvement trade 17.9 14.8 3.1
Car and machinery trade 14.1 1.9 12.2
Common operations and eliminations -3.1 -4.4 1.3
Total 78.1 36.4 41.7
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 7
Operating profit by quarter(M€)
3,4
36,4 47,5 68,0
20,9
78,1
19,8
6,3
0,8
50,1
0,1
1,0
0
30
60
90
120
Q1 Q2 Q3 Q4 Q1 Q2
Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät
20102009
19.8
50.1
0.1
1.0
0.8
78.1
20.9
68.047.536.4
Operating profit excl. non-recurring items Non-recurring items
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 8
Operating profit excl. non-recurring items
by division 1.1.-30.6. (M€)
2010 2009 Change
Food trade 73.7 63.9 9.9
Home and speciality goods trade 7.1 -16.7 23.8
Building and home improvement trade 4.2 5.6 -1.5
Car and machinery trade 20.5 -4.1 24.6
Common operations and eliminations -6.5 -9.0 2.4
Total 99.0 39.8 59.2
39,8
99,026,1
1,0
-9,5
0,6
-10
10
30
50
70
90
110
1-6/2009 1-6/2010
Rahoitusnetto ja osakkuusyhtiötulos ilman kertaluonteisia eriä
Kertaluonteiset erät
Liikevoitto ilman kertaluonteisia eriä
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 9
Group’s profit before tax1-6/2010 (M€)
56.5
100.6
39.8
26.1 99.0
1.0
-9.5
0.6
Operating profit excl. non-recurring items
Non-recurring items
Net financial items and income from associates excl. non-recurring items
0
50
100
2009 2010
Operating profit excl. non-recurring items Non-recurring items
0
500
1 000
1 500
2 000
2009 2010
Finland Other countries
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 10
Food trade 1-6/2010
Operating profit 1-6, M€
Net sales 1-6, M€
76.1 73.9
1,861 1,888 +1.4%
12.2 0.1
63.9 73.7
• K-food stores’ grocery sales grew by
3.3% (VAT 0%)
• Growing customer satisfaction and
efficiency reflected in sales and profit
growth
• Four new K-supermarkets and six K-
markets were opened during the first
part of the year
• Stores opened during the last few
years have rapidly achieved
targeted sales levels
• Investments in store site network were
€28.2 million (€34.2 million)
0
200
400
600
800
2009 2010
Finland Other countries
-16,7
7,19,8
0,0
-20,0
-15,0
-10,0
-5,0
0,0
5,0
10,0
2009 2010
Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 11
Home and speciality goods trade
1-6/2010
Operating profit 1-6, M€
Net sales 1-6, M€
• K-citymarket’s sales clearly increased and
new hypermarkets have performed better
than expected
• Asko’s and Kodin Ykkönens’ sales grew
especially in interior decoration products
• Budget Sport achieved excellent sales
performance
• Sunday opening increased sales
especially in the first part of the year
• Profitability improved significantly resulting
from sales growth, higher productivity and
more efficient purchasing
• Investments in the home and speciality
goods trade were €12.8 million (€16.9
million)
677 689 +1.8%
-30.0%
+2.3%
-6,9 7,1-6.9 7.1
7.1
-16.7
9.8
Operating profit excl. non-recurring items Non-recurring items
10.0
5.0
0.0
-5.0
-10.0
-15.0
-20.0
5,64,2
3,9
0,0
0,0
5,0
10,0
2009 2010
Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät
0
500
1 000
1 500
2009 2010
Suomi Muut maat
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 12
Building and home improvement trade
1-6/2010
• Building and home improvement trade
market returned to growth in Finland,
Sweden and Norway. Weak market
situation continues in the Baltic
countries
• Profit for the first part of the year
matched the previous year’s level.
Profit improved over the spring
• Investments were €28.4 million (€46.3
million)
• New building and home improvement
stores were opened in Jyväskylä,
Stockholm, Tula, Kaluga and Minsk
Operating profit 1-6, M€
Net sales 1-6, M€
1,173 1,207 +2.9 %
+0.9 %
+5.1 %
4,2
9,6
Finland
Operating profit excl. non-recurring items Non-recurring items
9.6
4.2
4.25.6
3.9
Other countries
10.0
5.0
0.0
-4,1
20,5
0,9
-10,0
0,0
10,0
20,0
30,0
2009 2010
Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät
0
200
400
600
2009 2010
Suomi Muut maat
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 13
Car and machinery trade 1-6/2010
• VV-Auto’s comparable net sales grew by 17%
• Record level market share of Audi, Volkswagen and Seat at 19.9% (18.4%)
• Konekesko’s net sales growth was dampened by the disposal of agricultural supplies trade in the Baltic countries
• Operating profit was improved by car sales growth and cost reductions
• Previous year’s profit included €9 million in expense provisions on the Baltic agricultural supplies trade
• Investments in the car and machinery trade were €8.1 million (€3.6 million)
Operating profit 1-6, M€
Net sales 1-6, M€
-28.1%
+5.7%
-4,1
21,4
+0.9%529 534
Finland Other countries
Operating profit excl. non-recurring items Non-recurring items
21.4
-4.1
0.9
20.5
-4.1
30.0
20.0
10.0
0.0
-10.0
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 14
88.4
.63,5
18.8
24.2
0
20
40
60
80
100
120
1-6/2009 1-6/2010
Others Store sites
Group’s investments (M€)
87.7
107.2
63.5
Interest-bearing net liabilities(M€)
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 16
06/2009 06/2010
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 17
Performance indicators
1-6/2010 1-6/2009
Net sales, € million 4,237 4,160
Operating profit, € million 100.0 65.9
Operating profit excl. non-recurring items, € million 99.0 39.8
Group’s profit before tax, € million 100.6 56.5
Investments, € million 87.7 107.2
Earnings/share, €, diluted 0.67 0.31
Earnings/share excl. non-recurring items, €,
basic 0.66 0.11
Equity/share, € 20.30 19.36
Equity ratio, % 51.2 51.0
Cash flow from operating activities, € million 135.4 136.3
Cash flow from investing activities, € million -85.7 -19.5
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 18
Share price trend 12 mo
KESKO B
OMX Helsinki
CAP
07/09 01/10 21.7.2010
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 19
A share
B share
26.60/share
26.63/share
Market capitalisation 30.6. (M€)
1,904
2,626
Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 20
Future outlookEstimates 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.