Strategic objectives

 
3/29/2011

Kesko is a highly valued listed trading sector company. It manages retail store chains that are valued by customers, and efficiently produces services for retail store chains' purchasing, logistics, network development and data management.

Kesko's operations include the food, home and speciality goods, building and home improvement, and car and machinery trades. Its division parent companies and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia, and Belarus.

profitable growth»

  • Our objective is to grow faster than market
  • We seek growth in nearby areas, particularly in Russia
  • We invest in our store network
  • We develop e-commerce solutions
  • We increase our shareholder value 
     

Sales and services for consumer-customers»

  • We increase the value of our brands
  • Our customer satisfaction exceeds that of our competitors
  • Our competitive asset is the K-retailers who know the local customers and their needs
  • We use loyal customer information efficiently and commit our customers

 

Responsible and efficient operating practises»

  • Our operating practices are responsible
  • We efficiently combine retailer entrepreneurship and chain operations
  • We leverage our economies of scale and competence for the benefit of customers
  • We automate our routines and processes

 

Financial objectives and their realisation

The objective
 		 Target level Realised in 2010 Realised in 2009
Net sales growth Growth faster than market

Realised*:
Food trade,
K-citymarket's home and
speciality goods trade,
car and
machinery trade

 Realised*:
Food trade,
sports trade,
building and
home improvement
trade (Finland),
car and
machinery trade
Return on equity 12% 10.1%, excl.
non-recurring
items 8.7%		 6.6%, excl.
non-recurring
items 3.8%
Return on
capital employed		 14% 15.9%, excl.
non-recurring
items 13.9%		 11.0%, excl.
non-recurring
items 7.3%
Interest-bearing
net debt/EBITDA		 < 3 -0.9 -0.7
Equity ratio 40–50% 53% 54%
Economic value
added
 		 Growing positive
EVA as
internal indicator		 Realised in all divisions,
except for building and
home improvement trade		 Not realised

 * Kesko's own estimate