Kesko.fi Stock exchange releases

Kesko's sales in April 2012

Tue, 15 May 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 15.05.2012 AT 09.00 1(2)

The Kesko Group's sales in April 2012, excluding VAT, totalled €799.3 million, showing a decrease of 1.4%.

In Kesko's food trade, sales in April were €363.0 million, an increase of 1.9% compared to the previous year. Sales to the K-food store chains were up by 2.0%. The sales of Pirkka products to K-food stores increased by 11.6%. The sales of Kespro Ltd grew by 1.0%.

In the home and speciality goods trade, sales in April were €114.5 million, an increase of 2.8%. The sales of Anttila, Asko and Sotka grew compared to the previous year. K-citymarket's sales of home and speciality goods decreased.

In the building and home improvement trade, sales in April were €253.3 million, an increase of 4.8%. Sales in Finland were up by 8.1%. Sales abroad increased by 1.7% in terms of euros. Sales grew particularly in Russia. Sales in Sweden decreased.

In the car and machinery trade, sales in April were €81.2 million, a decrease of 29.3%. VV-Auto's sales in April were €47.0 million, down 40.1%, which was attributable to the car tax change effective from 1 April 2012. Konekesko's sales in April were €34.2 million, a decrease of 5.9% compared to the previous year.

Kesko Group sales in euros, excluding VAT, in April 2012:

	April	2012	1.1. -	30.4.2012
	€ million	Change, %	€ million	Change, %
Food trade, total	363.0	1.9	1,382.8	5.4
Home and speciality goods trade, total	114.5	2.8	487.3	5.2
Building and home improvement trade, Finland	126.0	8.1	431.8	7.7
Building and home improvement trade, other countries	127.3	1.7	461.0	9.5
Building and home improvement trade, total	253.3	4.8	892.8	8.6
Car and machinery trade, total	81.2	-29.3	443.0	10.6
Common operations and eliminations	-12.6		-54.6
Grand total	799.3	-1.4	3,151.3	7.1

Finland, total	656.7	-2.5	2,646.1	6.1
Other countries, total	142.6	4.2	505.1	12.4
Grand total	799.3	-1.4	3,151.3	7.1

Change, % indicates the change over the corresponding period of the previous year.

In April 2012, the number of selling days in Kesko's wholesale in Finland was 19, which was the same as in the previous year. The total number of selling days in January-April was one more than in the previous year. The number of retail selling days in April was 27, which was the same as in the previous year. The total number of retail selling days in January-April was one more than in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko's interim report 1 Jan.-31 Mar. 2012

Thu, 26 Apr 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 26.04.2012 AT 09.00 1(24)

Financial performance in brief:

*The Group's net sales for January-March increased by 10.2%.

*The operating profit excluding non-recurring items was €23.6 million (€34.9 million). The operating profit excluding non-recurring items was negatively impacted by the expansion of the store site network and the expansion of Russian operations, and exceptional write-offs of approximately €8 million.

* The Kesko Group's net sales are expected to grow during the next twelve months. Owing to the costs involved in the expansion of the store site network and Russian business operations, as well as a sales decrease in the car trade, we are prepared for the operating profit excluding non-recurring items for the next twelve months to be lower than the operating profit excluding non-recurring items for the preceding twelve months.

Key performance indicators

	1-3/2012	1-3/2011
Net sales, € million	2,318	2,103
Operating profit excl. non- recurring items, € million	23.6	34.9
Operating profit, € million	26.3	35.7
Profit before tax, € million	26.3	36.1
Capital expenditure, € million	104.1	64.1
Earnings/share, €, diluted	0.17	0.25
Earnings/share excl. non- recurring items, €, basic	0.15	0.24

	31.3.2012	31.3.2011
Equity ratio, %	52.7	54.4
Equity/share, €	22.42	22.04

FINANCIAL PERFORMANCE

Net sales and profit for January-March 2012

The Group's net sales in January-March 2012 were €2,318 million, which is 10.2% up on the corresponding period of the previous year (€2,103 million). In Finland, net sales increased by 9.1% and in other countries by 16.5%. International operations accounted for 15.4% (14.6%) of the net sales. Net sales grew in all divisions.

1-3/2012	Net sales, M€	Change, %	Operating profit excl. non- recurring items, M€	Change,M€
Food trade	1,010	+6.5	34.9	-6.4
Home and speciality goods trade	369	+6.1	-12.9	-5.4
Building and home improvement trade	629	+10.3	-9.0	+0.1
Car and machinery trade	353	+26.4	15.6	+3.3
Common operations and eliminations	-42	+0.9	-5.1	-2.9
Total	2,318	+10.2	23.6	-11.3

In January-March, the operating profit excluding non-recurring items was €23.6 million (€34.9 million), representing 1.0% (1.7%) of the net sales. The operating profit excluding non-recurring items was negatively impacted by the expansion of the store site network and the expansion of Russian operations, as well as write-offs totalling approximately €8 million, the most significant of which related to the obsolescence of inventories and credit losses on trade receivables of the building and home improvement trade, as well as to an unrealised valuation loss on derivatives hedging electricity purchases of the food trade.

Operating profit was €26.3 million (€35.7 million), including a €2.8 million amount of non-recurring gains on disposals of properties. The Group's profit before tax for January-March was €26.3 million (€36.1 million).

The Group's earnings per share were €0.17 (€0.25). The Group's equity per share was €22.42 (€22.04).

In January-March, the K-Group's (i.e. Kesko's and the chain stores') retail and B2B sales (VAT 0%) were €2,779 million, up 10.4% compared to the previous year. In January-March, the K-Group chains' sales entitling to K-Plussa points were €1,354 million excluding tax, up 6.7% compared to the previous year. The K-Plussa customer loyalty programme gained 22,780 new households in January-March. At the end of March, the number of K-Plussa households was 2,168,933 and the number of K-Plussa card holders was 3.7 million.

Finance
In January-March, the cash flow from operating activities was €-5.2 million (€-25.3 million). The cash flow from investing activities was €-91.8 million (€-67.7 million), including €19.5 million (€1.7 million) of proceeds from the sale of fixed assets.

Throughout January-March, the Group's solvency remained at an excellent level despite the ongoing capital expenditure programme. At the end of the period, liquid assets totalled €293 million (€724 million). Interest-bearing liabilities were €446 million (€444 million) and interest-bearing net debt €154 million (€-279 million) at the end of March. Equity ratio was 52.7% (54.4%) at the end of the period.

In January-March, the Group's net finance costs were €0.1 million (€0.6 million).

Taxes
The Group's taxes in January-March were €7.6 million (€11.2 million). The effective tax rate was 29.0% (31.0%), affected by loss-making foreign operations.

Capital expenditure
In January-March, the Group's capital expenditure totalled €104.1 million (€64.1 million), or 4.5% (3.0%) of the net sales. Capital expenditure in store sites was €90.8 million (€52.7 million) and other capital expenditure was €13.3 million (€11.4 million). Capital expenditure in foreign operations represented 8.4% (19.6%) of total capital expenditure.

Personnel

In January-March, the average number of employees in the Kesko Group was 19,113 (18,158) converted into full-time employees. In Finland, the average increase was 233 people, while outside Finland, it was 722.

At the end of March 2012, the total number of employees was 22,873 (21,670), of whom 12,522 (12,140) worked in Finland and 10,351 (9,530) outside Finland. Compared to the end of March 2011, there was an increase of 382 people in Finland and 821 people outside Finland.

In January-March, the Group's staff cost was €151.1 million, an increase of 9.7% compared to the previous year.

SEGMENT INFORMATION

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

	1-3/2012	1-3/2011
Net sales, € million	1,010	948
Operating profit excl. non- recurring items, € million	34.9	41.4
Operating profit as % of net sales excl. non- recurring items	3.5	4.4
Capital expenditure, € million	60.2	30.9

Net sales, € million	1-3/2012	Change, %
Sales to K-food stores	780	+6.3
Kespro	181	+10.1
Others	49	-3.0
Total	1,010	+6.5

January-March 2012

In the food trade, the net sales for January-March were €1,010 million (€948 million), up 6.5%. The sales of Pirkka products to K-food stores grew by 16.0% (VAT 0%). During the same period, the grocery sales of K-food stores increased by 6.8% (VAT 0%). In the grocery market, retail prices are estimated to have changed by some 4-5% compared to the previous year (VAT 0%; Kesko's own estimate based on the Consumer Price Index of Statistics Finland) and the total grocery trade market (VAT 0%) is estimated to have grown by some 7.5% in January-March compared to the previous year (Kesko's own estimate).

In January-March, the operating profit excluding non-recurring items of the food trade was €34.9 million (€41.4 million), or €6.4 million down on the previous year. The operating profit was impacted by costs related to launching business operations in Russia and the expansion of the store site network. Further, operating profit was weakened by a €1.8 million unrealised valuation loss on derivatives hedging electricity purchasing. The operating profit was €37.6 million (€42.1 million). Non-recurring income included €2.7 million of gains on disposals of properties.

Capital expenditure of the food trade was €60.2 million (€30.9 million), of which capital expenditure in store sites was €56.5 million (€29.0 million).

In January-March 2012, one new K-citymarket, two new K-supermarkets and one new K-market were opened. A total of 20 stores were renovated and extended.

The most significant store sites being built are K-citymarkets in Kauhajoki, Kokkola, Kouvola and Valkeakoski. K-supermarkets in Lieksa, Loimaa and Mäntsälä are being extended into K-citymarkets and K-citymarket Imatra is being extended. New K-supermarkets are being built in Lähdekeskus and Suomenoja, Espoo, in Kaisaniemi, Helsinki, in Joutsa, Kouvola, Lohja, Nurmijärvi, Pihtipudas, Pori and in Hämeenkylä, Louhela and Nikinmäki, Vantaa. K-market Parila in Pälkäne is being extended into a K-supermarket.

Home and speciality goods trade

	1-3/2012	1-3/2011
Net sales, € million	369	348
Operating profit excl. non-recurring items, € million	-12.9	-7.4
Operating profit as % of net sales excl. non-recurring items	-3.5	-2.1
Capital expenditure, € million	18.5	8.1

Net sales, € million	1-3/2012	Change, %
K-citymarket home and speciality goods	147	+8.5
Anttila	107	-1.6
Intersport Finland	44	+7.3
Intersport Russia	8	-
Indoor	44	+6.5
Musta Pörssi	13	-20.0
Kenkäkesko	7	+21.9
Total	369	+6.1

January-March 2012

In the home and speciality goods trade, the net sales for January-March were €369 million (€348 million), up 6.1%. K-citymarket home and speciality goods, Asko and Sotka, Intersport and Budget Sport, as well as Kenkäkesko markedly increased their sales from the previous year. A K-citymarket, an Anttila and an Intersport store were opened in Willa, Hyvinkää. In addition, an Asko store was opened in Ylivieska and a new Konebox store in Raisio. As a result of network restructuring, there were 29 (35) Musta Pörssi stores at the end of March. A new concept Musta Pörssi store was opened in the Sello shopping centre in early March. The reform of the Kookenkä chain was completed at the end of March.

The operating profit excluding non-recurring items of the home and speciality goods trade in January-March was €-12.9 million (€-7.4 million). Profitability was weakened by costs arising from the integration and development of the operations of K-citymarket and Anttila, the expansion of the store site network and the loss from Russian Intersport operations. Operating profit was €-12.9 million (€-7.4 million).

Capital expenditure in the home and speciality goods trade in January-March was €18.5 million (€8.1 million).

Building and home improvement trade

	1-3/2012	1-3/2011
Net sales, € million	629	570
Operating profit excl. non-recurring items, € million	-9.0	-9.1
Operating profit as % of net sales excl. non-recurring items	-1.4	-1.6
Capital expenditure, € million	11.8	18.7

Net sales, € million	1-3/2012	Change, %
Rautakesko Finland	300	+7.1
K-rauta Sweden	44	+1.7
Byggmakker Norway	145	+18.5
Rautakesko Estonia	12	+19.5
Rautakesko Latvia	10	+13.4
Senukai Lithuania	50	+13.2
Stroymaster Russia	53	+22.7
OMA Belarus	15	-17.9
Total	629	+10.3

January-March 2012

In the building and home improvement trade, the net sales for January-March were €629 million (€570 million), up 10.3%. In most countries, sales to professional customers increased faster than sales to private customers, which boosted especially the sales of basic building materials.

In Finland, the net sales for January-March were €300 million (€280 million), an increase of 7.1%. The building and home improvement product lines contributed €212 million to the net sales in Finland, an increase of 5.8%. The agricultural supplies trade contributed €88 million to the net sales, up 10.6%.

The retail sales of the K-rauta and Rautia chains in Finland grew by 7.1% to €187 million (VAT 0%). The sales of Rautakesko B2B Service increased by 15.5%. As a whole, Rautakesko chains' retail and B2B sales are estimated to have continued exceeding the growth rate of the market in Finland. The retail sales of the K-maatalous chain were €89 million (VAT 0%), up 11.9%.

In January-March, the net sales from foreign operations in the building and home improvement trade were €329 million (€290 million), an increase of 13.5%. In Russia, net sales increased by 21.3% in terms of roubles. In Norway, net sales increased by 14.9% in terms of krones. In Sweden, net sales were up by 1.6% in terms of kronas. Foreign operations contributed 52.3% (50.8%) to the net sales of the building and home improvement trade.

In January-March, the operating profit excluding non-recurring items of the building and home improvement trade was €-9.0 million (€-9.1 million), representing the level of the previous year. The profit performance was impacted by new store openings in Russia and Sweden and significant introduction and development costs of the international enterprise resource planning system. In addition, the profitability of Swedish operations was negatively impacted by obsolete inventories written off at €3 million higher than for the comparative period. In Finland, a credit loss amounting to €1 million was recorded on trade receivables. Operating profit was €-9.0 million (€-9.1 million).

In January-March, capital expenditure in the building and home improvement trade totalled €11.8 million (€18.7 million), of which 66.2% (67.3%) abroad. Capital expenditure in store sites was 85.6% of the total capital expenditure.

During the reporting period, a new Rautia-K-maatalous store was opened in Turku and former Rautia stores were replaced in Muhos and Sastamala. In April, a K-rauta was opened in Ylivieska. A K-rauta is being built in Kouvola and a significant extension of a K-rauta is underway in Mikkeli. In Sweden, a K-rauta was opened in Uppsala and a K-rauta replacing the former store is being built in Linköping. In Russia, a new K-rauta was opened in Moscow, where two sites have been acquired for new K-rauta stores.

Car and machinery trade

	1-3/2012	1-3/2011
Net sales, € million	353	279
Operating profit excl. non-recurring items, € million	15.6	12.2
Operating profit as % of net sales excl. non-recurring items	4.4	4.4
Capital expenditure, € million	12.7	6.0

Net sales, € million	1-3/2012	Change, %
VV-Auto	289	+32.4
Konekesko	65	+5.6
Total	353	+26.4

January-March 2012

In January-March, the net sales of the car and machinery trade were €353 million (€279 million), up 26.4%.

VV-Auto's net sales for January-March were €289 million (€218 million), an increase of 32.4%. Sales were increased by the car tax change effective 1 April 2012, as well as market share growth. In Finland, new registrations of passenger cars increased by 34.0% and those of vans by 47.7% compared to the previous year. In January-March, the combined market share of passenger cars and vans imported by VV-Auto was 19.9% (18.8%).

Konekesko's net sales for January-March were €65 million (€61 million), up 5.6% compared to the previous year. Net sales in Finland were €50 million, up 0.7%. The net sales from Konekesko's foreign operations were €16 million, up 21.9%.

In January-March, the operating profit excluding non-recurring items of the car and machinery trade was €15.6 million (€12.2 million), up €3.3 million compared to the previous year. The strong profit was attributable to excellent sales performance. The operating profit for January-March was €15.6 million (€12.2 million).

Capital expenditure in the car and machinery trade was €12.7 million (€6.0 million) in January-March.

Changes in the Group composition

No significant changes took place in the Group composition during the reporting period.

Shares, securities market and Board authorisations
At the end of March 2012, the total number of Kesko Corporation shares was €98,645,042, of which 31,737,007, or 32.2%, were A shares and 66,908,035, or 67.8%, were B shares. At 31 March 2012, Kesko Corporation held 700,000 own B shares. Each A share entitles to ten (10) votes and each B share to one (1) vote. The company cannot vote with own shares held by it and no dividend is paid on them. At the end of March 2012, Kesko Corporation's share capital was €197,282,584. During the reporting period, there were no changes in the share capital or the number of shares.

The price of a Kesko A share quoted on NASDAQ OMX Helsinki was €24.82 at the end of 2011, and €25.35 at the end of March 2012, representing an increase of 2.1%. Correspondingly, the price of a B share was €25.96 at the end of 2011, and €24.33 at the end of March 2012, representing a decrease of 6.3%. In January-March, the highest A share price was €27.65 and the lowest was €24.10. For B share, they were €27.81 and €23.59 respectively. In January-March, the Helsinki stock exchange (OMX Helsinki) All-Share index rose by 12.7%, the weighted OMX Helsinki CAP index by 13.1%, while the Retail Index was up by 5.0%.

At the end of March 2012, the market capitalisation of A shares was €805 million, while that of B shares was €1,611 million, excluding the shares held by the parent company. The combined market capitalisation of A and B shares was €2,415 million, a decrease of €91 million from the end of 2011. In January-March 2012, a total of 0.6 (0.5) million A shares were traded on the Helsinki stock exchange, up 22.5%, at a total value of €16 million. A total of 20.6 (17.8) million B shares were traded on the Helsinki stock exchange, up 15.7%, at a total value of €517 million.

The company operates the 2007 stock option scheme for management and other key personnel, under which the share subscription period of 2007A option rights runs from 1 April 2010 to 30 April 2012, that of 2007B option rights from 1 April 2011 to 30 April 2013, and that of 2007C option rights began on 1 April 2012 and it will end on 30 April 2014. All option rights have also been included on the official list of the Helsinki stock exchange since the beginning of the share subscription periods. No 2007A option rights were traded during the reporting period. A total of 18,246 2007B option rights were traded during the reporting period at a total value of €87,023.

The Board has the authority, granted by the Annual General Meeting of 16 April 2012 and valid until 30 June 2015, to issue a total maximum of 20,000,000 new B shares. The shares can be issued against payment for subscription by shareholders in a directed issue in proportion to their existing shareholdings regardless of whether they consist of A or B shares, or, deviating from the shareholder's pre-emptive right, in a directed issue, if there is a weighty financial reason for the company, such as using the shares to develop the company's capital structure, and financing possible acquisitions, investments or other arrangements within the scope of the company's business operations. The amount paid for the shares is recognised in the reserve of invested non-restricted equity. The authorisation also includes the Board's authority to decide on the share subscription price, the right to issue shares against non-cash consideration and the right to make decisions on other matters concerning share issuances. The corresponding authority, granted by the Annual General Meeting of 30 March 2009, to issue a total maximum of 20,000,000 new B shares against payment or other consideration expired on 30 March 2012. The authority expired at the end of March had not been used. In addition, the Board has the authority, granted by the Annual General Meeting of 4 April 2011 and valid until 30 September 2012, to decide on the acquisition of a total maximum of 1,000,000 own B shares, and the authority, valid until 30 June 2014, to decide on the issuance of a total maximum of 1,000,000 own B shares held by the company itself. On 1 February 2012, based on the authority to issue own shares and the fulfilment of the vesting criteria of the 2011 vesting period of Kesko's three-year share-based compensation plan, the Board decided to grant a total maximum of 93,875 company shares held by itself to the persons included in the target group. The decision was announced in a stock exchange release on 2 February 2012. Further information on the Board's authorities is available at www.kesko.fi.

At the end of March 2012, the number of shareholders was 43,456, which is 2,241 more than at the end of 2011. Foreign ownership of all shares was 18%, and foreign ownership of B shares was 26% at the end of March.

Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting period.

Main events during the reporting period

The second phase of the transfer of the Kesko Group companies' statutory pension insurance liability portfolio, agreed between the Kesko Pension Fund and Ilmarinen Mutual Pension Insurance Company, was carried out with effect from 1 January 2012. (Stock exchange release on 15 February 2012)

Main events after the reporting period

Kesko transferred a total of 90,889 own B shares held by the company itself to the about 150 Kesko management employees and other named key persons included in the target group of the 2011 vesting period of Kesko's three-year share-based compensation plan. After the transfers, the company itself holds at least 607,249 own B shares. (Stock exchange release on 12 April 2012)

Resolutions of the 2012 Annual General Meeting and decisions of the Board's organisational meeting

Kesko Corporation's Annual General Meeting, held on 16 April 2012, adopted the financial statements for 2011 and discharged the Board members and the Managing Director from liability. The General Meeting also resolved to distribute €1.20 per share as dividends on 98,035,931 shares held outside the company at the date of dividend distribution, or a total amount of €117,643,117.20. The dividend pay date is 26 April 2012. The General Meeting also resolved to leave the number of Board members unchanged at seven and elected Esa Kiiskinen, Ilpo Kokkila, Tomi Korpisaari (new member), Maarit Näkyvä, Seppo Paatelainen, Toni Pokela (new member) and Virpi Tuunainen (new member) as Board members for a three-year term of office as stated in the Articles of Association. The General Meeting elected PricewaterhouseCoopers Oy as the company's auditor, with Johan Kronberg, APA, as the company's auditor with principal responsibility. The General Meeting also approved the Board's proposal to issue a total maximum of 20,000,000 new B shares until 30 June 2015, and the Board's proposal that it be authorised until the 2013 Annual General Meeting to decide on the donation of a total maximum of €300,000 for charitable or corresponding purposes.

The organisational meeting of Kesko Corporation's Board of Directors, held after the Annual General Meeting, elected Esa Kiiskinen as its Chair and Seppo Paatelainen as its Deputy Chair. The Board elected Maarit Näkyvä as the Chair, Seppo Paatelainen as the Deputy Chair and Virpi Tuunainen as a member of the Audit Committee, and Esa Kiiskinen as the Chair, Seppo Paatelainen as the Deputy Chair and Ilpo Kokkila as a member of the Remuneration Committee. The Board elects the Board Chair and Deputy Chair for the whole three-year term of a Board member, and the Committee Chairs, Deputy Chairs and members for one year at a time.

The resolutions of the Annual General Meeting and the decisions of the Board's organisational meeting were announced in more detail in stock exchange releases on 16 April 2012.

Responsibility

In January, Kesko was included on 'The Global 100 Most Sustainable Corporations in the World' list for the eighth time.

In February, Kesko was awarded by World Finance Magazine for 'the Best Corporate Governance in Finland' in terms of corporate governance development and reporting for the second time in succession.

In March, the US Ethisphere Institute listed Kesko as one of the World's Most Ethical Companies for 2012.

In March, the K-Retailers' Association and the Finnish Association on Intellectual and Developmental Disabilities (FAIDD) started a cooperation project to support the employment of people with intellectual and developmental disabilities in the K-Group stores.

Risk management

The Kesko Group has an established and comprehensive risk management process. Risks and their management responses are regularly assessed within the Group and reported to the Group management. Kesko's risk management and risks associated with business operations are described in more detail on Kesko's website in the Corporate Governance section.

The most significant near-future risks in Kesko's business operations are associated with the general economic development, the euro zone financial market and consumer confidence in Kesko's operating area, as well as their impact on the Kesko Group's sales and profit performance. It is estimated that in other respects, no material changes have taken place in the risks described in the report by the Board of Directors and financial statements for 2011 and the risks described on Kesko's website.

Risks and uncertainties associated with economic development are 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 (4/2012-3/2013) in comparison with the 12 months preceding the reporting period (4/2011-3/2012).

Resulting from the problems of European national economies, the outlook for the general economic situation continues to be characterised by significant uncertainty. In addition, cuts in public finances and tightening taxation increase the uncertainty about the development of consumer demand. However, the outlook for consumer demand as a whole has improved during the first months of 2012.

The steady growth in the grocery trade and home and speciality goods trade is expected to continue. Growth in the building and home improvement trade in Finland is expected to even out as the growth of building construction slows down. In the car and machinery trade, the market is expected to turn down as a result of the car tax change effective 1 April 2012.

The Kesko Group's net sales are expected to grow during the next twelve months. Owing to the costs involved in the expansion of the store site network and Russian business operations, as well as a sales decrease in the car trade, we are prepared for the operating profit excluding non-recurring items for the next twelve months to be lower than the operating profit excluding non-recurring items for the preceding twelve months.

Helsinki, 25 April 2012
Kesko Corporation
Board of Directors

The information in the interim report release is unaudited.

Further information is available from Jukka Erlund, Senior Vice President, CFO, telephone +358 1053 22113, and Eva Kaukinen, 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 11.00. 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's interim report for January-June will be released on 25 July 2012. 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.

KESKO CORPORATION

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

ATTACHMENTS: TABLES
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated cash flow statement
Group's performance indicators
Net sales by segment
Operating profit by segment
Operating profit excl. non-recurring items by segment
Operating margin excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Personnel average and at the end of the reporting period
Group's contingent liabilities
Calculation of performance indicators
K-Group's retail and B2B sales

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

TABLES:

Accounting policies

This interim report has been prepared in accordance with the IAS 34 standard, applying the same accounting policies as to the annual financial statements for 2011, with the exception of the following changes due to the adoption of new and revised IFRS standards and IFRIC interpretations:

IFRS 7 (amendment), Financial instruments: Disclosures - Derecognition

IAS 12 (amendment), Income taxes - Deferred tax

Annual amendments to the IFRS (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.

Consolidated income statement (€ million), condensed
	1-3/ 2012	1-3/ 2011	Change,%	1-12/ 2011
Net sales	2,318	2,103	10.2	9,460
Cost of goods sold	-2,007	-1,814	10.6	-8,163
Gross profit	311	289	7.6	1,297
Other operating income	170	160	6.2	705
Staff cost	-151	-138	9.7	-571
Depreciation and impairment charges	-36	-29	22.6	-125
Other operating expenses	-268	-247	8.7	-1,026
Operating profit	26	36	-26.2	281
Interest income and other finance income	5	5	3.8	22
Interest expense and other finance costs	-4	-4	-16.9	-18
Exchange differences	-2	-1	34.5	-3
Income from associates	0	1	-98.6	1
Profit before tax	26	36	-27.2	282
Income tax	-8	-11	-31.9	-85
Profit for the period	19	25	-25.1	197

Attributable to
Owners of the parent	17	25	-31.7	182
Non-controlling interests	2	0	(..)	15

Earnings per share (€) for profit attributable to equity holders of the parent

Basic	0.17	0.25	-31.2	1.85
Diluted	0.17	0.25	-31.1	1.84

Consolidated statement of comprehensive income (€ million)
	1-3/ 2012	1-3/ 2011	Change,%	1-12/ 2011
Net profit for the period	19	25	-25.1	197
Other comprehensive income
Exchange differences on translating foreign operations	4	-1	(..)	-17
Adjustment for hyperinflation	1	-	(..)	6
Cash flow hedge revaluation	-2	-5	-65.6	-15
Revaluation of available-for- sale financial assets	0	-1	(..)	0
Other items	-	-	-	0
Tax relating to other comprehensive income	0	1	-72.5	4
Total other comprehensive income for the period, net of tax	3	-5	(..)	-22
Total comprehensive income for the period	22	19	11.6	175

Attributable to
Owners of the parent	20	22	-5.9	170
Non-controlling interests	1	-2	(..)	4

(..) Change over 100%

Consolidated statement of financial position (€ million), condensed
	31.3.2012	31.3.2011	Change,%	31.12.2011
ASSETS
Non-current assets
Tangible assets	1,555	1,295	20.0	1,490
Intangible assets	190	178	7.1	189
Investments in associates and other financial assets	70	63	10.5	69
Loans and receivables	78	71	9.8	80
Pension assets	143	183	-21.5	200
Total	2,035	1,789	13.8	2,029

Current assets
Inventories	909	796	14.2	868
Trade receivables	804	681	18.1	700
Other receivables	289	151	91.9	218
Financial assets at fair value through profit or loss	75	164	-54.5	98
Available-for-sale financial assets	163	512	-68.1	186
Cash and cash equivalents	54	47	15.9	84
Total	2,294	2,351	-2.4	2,153
Non-current assets held for sale	1	1	-17.9	8

Total assets	4,331	4,141	4.6	4,190

	31.3.2012	31.3.2011	Change,%	31.12.2011
EQUITY AND LIABILITIES
Equity	2,196	2,174	1.0	2,175
Non-controlling interests	60	56	6.0	58
Total equity	2,256	2,231	1.1	2,233

Non-current liabilities
Interest-bearing liabilities	205	229	-10.1	210
Non-interest-bearing liabilities	20	6	(..)	18
Deferred tax liabilities	86	84	2.6	91
Pension obligations	2	2	4.5	2
Provisions	11	12	-6.0	10
Total	324	332	-2.2	332

Current liabilities
Interest-bearing liabilities	241	216	11.6	190
Trade payables	1,001	878	14.0	886
Other non-interest-bearing liabilities	486	459	5.9	526
Provisions	23	26	-10.3	24
Total	1,751	1,579	10.9	1,625

Total equity and liabilities	4,331	4,141	4.6	4,190

(..) Change over 100%

Consolidated statement of changes in equity (€ million)

	Share capital	Issue of share capital	Share premi- um	Other reser- ves	Cur- rency trans- lation differ- ences	Revalu- ation sur- plus	Re- tained earn- ings	Non- cont- rol- ling inte- rests	Total
Balance at 1.1.2011	197	0	198	243	-3	14	1,503	59	2,210
Shares subscribed with options
Option cost							1	0	1
Dividends
Other changes							0	0	0
Net profit for the period							25	0	25
Other comprehensive income
Exchange differences on translating foreign operations				0	1		0	-3	-1
Cash flow hedge revaluation						-5			-5
Revaluation of available- for-sale financial assets						-1			-1
Other items
Tax relating to other comprehensive income						1			1
Total other comprehensive income				0	1	-4	0	-3	-5
Balance at 31.3.2011	197	0	198	243	-1	9	1,529	56	2,231

Balance at 1.1.2012	197	0	198	243	-3	3	1,537	58	2,233
Shares subscribed with options
Option cost							1	0	1
Own shares
Dividends
Other changes							0	0	0
Net profit for the period							17	2	19
Other comprehensive income
Exchange differences on translating foreign operations				0	5		0	-1	4
Adjustment for hyperinflation							0	1	1
Cash flow hedge revaluation						-2			-2
Revaluation of available- for-sale financial assets						0			0
Other items
Tax relating to other comprehensive income						0			0
Total other comprehensive income				0	5	-1	0	-1	3
Balance at 31.3.2012	197	0	198	243	1	1	1,555	60	2,256

Consolidated cash flow statement (€ million), condensed

	1-3/ 2012	1-3/ 2011	Change,%	1-12/ 2011
Cash flow from operating activities
Profit before tax	26	36	-27.2	282
Planned depreciation	36	29	22.3	125
Finance income and costs	0	1	-31.4	-1
Other adjustments	7	8	-5.9	-6

Change in working capital
Current non-interest-bearing trade and other receivables, increase (-)/ decrease (+)	-120	-61	95.7	-89
Inventories increase (-)/ decrease (+)	-37	-40	-7.1	-119
Current non-interest-bearing liabilities, increase (+)/decrease (-)	100	-13	(..)	127

Financial items and tax	-18	15	(..)	-103
Net cash generated from operating activities	-5	-25	-79.5	216

Cash flow from investing activities
Capital expenditure	-111	-69	59.9	-449
Sales of fixed assets	20	2	(..)	8
Increase of non-current receivables	-1	0	(..)	0
Net cash used in investing activities	-92	-68	35.7	-441

Cash flow from financing activities
Increase (+)/ decrease (-) in interest-bearing liabilities	49	-29	(..)	-58
Increase (-)/decrease (+) in current interest-bearing receivables	-21	0	(..)	-37
Dividends paid	-	-	-	-133
Equity increase	-	-	-	0
Acquisition of own shares	-	-	-	-23
Increase (-)/ decrease (+) in short-term money market investments	32	86	-63.5	199
Other items	-6	0	(..)	1
Net cash used in financing activities	53	57	-5.9	-51

Change in cash and cash equivalents	-44	-36	20.5	-277

Cash and cash equivalents and current portion of available-for-sale financial assets at 1 Jan.	231	509	-54.7	509
Currency translation difference adjustment and revaluation	0	0	(..)	-2
Cash and cash equivalents and current portion of available-for-sale financial assets at 31 Mar.	187	473	-60.4	231

(..) Change over 100%

Group's performance indicators
	1-3/2012	1-3/2011	Change, pp	1-12/2011
Return on capital employed, %	4.3	7.2	-2.9	13.2
Return on capital employed, %, moving 12 mo	12.1	16.6	-4.5	13.2
Return on capital employed excl. non- recurring items, %	3.9	7.0	-3.2	13.1
Return on capital employed excl. non- recurring items, %, moving 12 mo	11.9	14.6	-2.6	13.1
Return on equity, %	3.3	4.5	-1.2	8.9
Return on equity, %, moving 12 mo	8.5	10.7	-2.2	8.9
Return on equity excl. non-recurring items, %	3.0	4.4	-1.4	8.8
Return on equity excl. non-recurring items, %, moving 12 mo	8.4	9.3	-0.9	8.8
Equity ratio, %	52.7	54.4	-1.7	53.9
Gearing, %	6.8	-12.5	19.3	1.5
			Change,%
Capital expenditure, € million	104.1	64.1	62.4	425.4
Capital expenditure, % of net sales	4.5	3.0	47.4	4.5
Earnings per share, basic, €	0.17	0.25	-31.2	1.85
Earnings per share, diluted, €	0.17	0.25	-31.1	1.84
Earnings per share excl. non-recurring items, basic, €	0.15	0.24	-38.3	1.84
Cash flow from operating activities, € million	-5	-25	-79.5	216
Cash flow from investing activities, € million	-92	-68	35.7	-441
Equity/share, €	22.42	22.04	1.7	22.20
Interest-bearing net debt	153.6	-279.3	(..)	32.8
Diluted number of shares at end of reporting period	98,413	99,332	-0.9	98,631
Personnel, average	19,113	18,158	5.3	18,960
(..) Change over 100%

Group's performance indicators by quarter	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011	1-3/ 2012
Net sales, € million	2,103	2,472	2,404	2,481	2,318
Change in net sales, %	7.4	8.5	7.8	7.4	10.2
Operating profit, € million	35.7	83.9	88.2	72.8	26.3
Operating margin, %	1.7	3.4	3.7	2.9	1.1
Operating profit excl. non- recurring items, € million	34.9	83.3	89.2	71.5	23.6
Operating margin excl. non- recurring items, %	1.7	3.4	3.7	2.9	1.1
Finance income/costs, € million	-0.6	0.3	0.3	0.8	-0.1
Profit before tax, € million	36.1	84.0	88.0	74.0	26.3
Profit before tax, %	1.7	3.4	3.7	3.0	1.0
Return on capital employed, %	7.2	16.0	16.4	12.8	4.3
Return on capital employed excl. non-recurring items, %	7.0	15.9	16.6	12.5	3.9
Return on equity, %	4.5	10.6	10.9	10.0	3.3
Return on equity excl. non- recurring items, %	4.4	10.6	11.1	9.8	3.0
Equity ratio, %	54.4	52.1	54.0	53.9	52.7
Capital expenditure, € million	64.1	130.5	126.3	104.5	104.1
Earnings per share, diluted, €	0.25	0.55	0.53	0.51	0.17
Equity per share, €	22.04	21.21	21.66	22.20	22.42

Segment information

Net sales by segment (€ million)	1-3/ 2012	1-3/ 2011	Change, %	1-12/ 2011

Food trade, Finland	1,010	948	6.5	4,182
Food trade, other countries*	-	-		-
Food trade total	1,010	948	6.5	4,182
- of which intersegment trade	45	43	4.0	168

Home and speciality goods trade, Finland	356	344	3.6	1,541
Home and speciality goods trade, other countries*	13	4	(..)	23
Home and speciality goods trade total	369	348	6.1	1,564
- of which intersegment trade	4	3	9.8	20

Building and home improvement trade, Finland	300	280	7.1	1,233
Building and home improvement trade, other countries*	329	290	13.5	1,483
Building and home improvement trade total	629	570	10.3	2,716
- of which intersegment trade	0	1	(..)	12

Car and machinery trade, Finland	337	266	26.7	1,064
Car and machinery trade, other countries*	16	13	21.9	110
Car and machinery trade total	353	279	26.4	1,174
- of which intersegment trade	0	0	-49.7	1

Common operations and eliminations	-42	-42	0.9	-176
Finland total	1,961	1,797	9.1	7,844
Other countries total*	357	306	16.5	1,616
Group total	2,318	2,103	10.2	9,460

* Net sales in countries other than Finland.

(..) Change over 100%

Operating profit by segment (€ million)	1-3/ 2012	1-3/ 2011	Change	1-12/ 2011

Food trade	37.6	42.1	-4.5	173.7
Home and speciality goods trade	-12.9	-7.4	-5.4	37.0
Building and home improvement trade	-9.0	-9.1	0.1	26.3
Car and machinery trade	15.6	12.2	3.3	51.9
Common operations and eliminations	-5.1	-2.2	-2.9	-8.3
Group total	26.3	35.7	-9.3	280.6

Operating profit excl. non-recurring items by segment (€ million)	1-3/ 2012	1-3/ 2011	Change	1-12/ 2011

Food trade	34.9	41.4	-6.4	172.2
Home and speciality goods trade	-12.9	-7.4	-5.4	36.6
Building and home improvement trade	-9.0	-9.1	0.1	26.6
Car and machinery trade	15.6	12.2	3.3	51.8
Common operations and eliminations	-5.1	-2.2	-2.9	-8.3
Group total	23.6	34.9	-11.3	278.9

Operating margin excl. non-recurring items by segment	1-3/ 2012	1-3/ 2011	Change,pp	1-12/ 2011	Moving 12 mo 3/2012

Food trade	3.5	4.4	-0.9	4.1	3.9
Home and speciality goods trade	-3.5	-2.1	-1.3	2.3	2.0
Building and home improvement trade	-1.4	-1.6	0.2	1.0	1.0
Car and machinery trade	4.4	4.4	0.0	4.4	4.4
Group total	1.0	1.7	-0.6	2.9	2.8

Capital employed by segment, cumulative average (€ million)	1-3/ 2012	1-3/ 2011	Change	1-12/ 2011

Food trade	701	556	145	601
Home and speciality goods trade	478	409	69	437
Building and home improvement trade	752	658	94	696
Car and machinery trade	198	149	49	158
Common operations and eliminations	311	218	94	236
Group total	2,439	1,990	449	2,129

Return on capital employed excl. non- recurring items by segment, %	1-3/ 2012	1-3/ 2011	Change,pp	1-12/ 2011	Moving 12 mo 3/2012

Food trade	19.9	29.8	-9.8	28.6	25.9
Home and speciality goods trade	-10.8	-7.3	-3.5	8.4	6.9
Building and home improvement trade	-4.8	-5.5	0.7	3.8	3.7
Car and machinery trade	31.5	32.8	-1.3	32.8	32.7
Group total	3.9	7.0	-3.2	13.1	11.9

Capital expenditure by segment (€ million)	1-3/ 2012	1-3/ 2011	Change	1-12/ 2011

Food trade	60	31	29	221
Home and speciality goods trade	18	8	10	62
Building and home improvement trade	12	19	-7	110
Car and machinery trade	13	6	7	30
Common operations and eliminations	1	0	1	2
Group total	104	64	40	425

Segment information by quarter

Net sales by segment (€ million)	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011	1-3/ 2012
Food trade	948	1,077	1,049	1,108	1,010
Home and speciality goods trade	348	339	376	501	369
Building and home improvement trade	570	757	731	657	629
Car and machinery trade	279	342	290	263	353
Common operations and eliminations	-42	-43	-42	-48	-42
Group total	2,103	2,472	2 ,404	2,481	2,318

Operating profit by segment (€ million)	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011	1-3/ 2012
Food trade	42.1	45.9	45.7	40.0	37.6
Home and speciality goods trade	-7.4	2.8	8.7	32.9	-12.9
Building and home improvement trade	-9.1	18.8	21.0	-4.5	-9.0
Car and machinery trade	12.2	19.7	13.0	7.0	15.6
Common operations and eliminations	-2.2	-3.3	-0.2	-2.6	-5.1
Group total	35.7	83.9	88.2	72.8	26.3

Operating profit excl. non-recurring items by segment (€ million)	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011	1-3/ 2012
Food trade	41.4	45.8	46.4	38.6	34.9
Home and speciality goods trade	-7.4	2.4	8.7	32.9	-12.9
Building and home improvement trade	-9.1	18.8	21.3	-4.4	-9.0
Car and machinery trade	12.2	19.6	13.0	7.0	15.6
Common operations and eliminations	-2.2	-3.3	-0.2	-2.6	-5.1
Group total	34.9	83.3	89.2	71.5	23.6

Operating margin excl. non-recurring items by segment	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011	1-3/ 2012
Food trade	4.4	4.3	4.4	3.5	3.5
Home and speciality goods trade	-2.1	0.7	2.3	6.6	-3.5
Building and home improvement trade	-1.6	2.5	2.9	-0.7	-1.4
Car and machinery trade	4.4	5.7	4.5	2.6	4.4
Group total	1.7	3.4	3.7	2.9	1.0

Personnel, average and at 31 March

Personnel average by segment	1-3/2012	1-3/2011	Change
Food trade	2,642	2,646	-3
Home and speciality goods trade	5,983	5,363	620
Building and home improvement trade	8,848	8,587	262
Car and machinery trade	1,210	1,162	48
Common operations	429	401	28
Group total	19,113	18,158	955

Personnel at 31 Mar.* by segment	2012	2011	Change
Food trade	2,993	2,912	81
Home and speciality goods trade	8,128	7,468	660
Building and home improvement trade	9,986	9,622	364
Car and machinery trade	1,280	1,230	50
Common operations	486	438	48
Group total	22,873	21,670	1,203

* total number incl. part-time employees

Group's commitments (€ million)
	31.3.2012	31.3.2011	Change,%

Own commitments	181	211	-14.0
For shareholders	-	-	-
For others	8	7	9.5
Lease liabilities for machinery and equipment	26	23	12.4
Lease liabilities for real estate	2,265	2,306	-1.8

Own commitments do not include lease liabilities.


Liabilities arising from
derivative instruments
			Fair value
Values of underlying instruments at 31 March	31.3.2012	31.3.2011	31.3.2012
Interest rate derivatives
Interest rate swaps	205	201	2.55
Currency derivatives
Forward and future contracts	334	210	-4.53
Option agreements	7	-	-0.00
Currency swaps	100	100	-10.57
Commodity derivatives
Electricity derivatives	30	52	-5.20

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 12 months	Operating profit for prior 12 months x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non- interest-bearing liabilities) on average for 12 months

Return on capital employed excl. non-recurring items*, %	Operating profit excl. non-recurring items x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for the reporting period

Return on capital employed, excl. non-recurring items, %, moving 12 mo	Operating profit excl. non-recurring items for prior 12 months x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for 12 months

Return on equity*, %	(Profit/loss before tax - income tax) x 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

Return on equity excl. non- recurring items*, %	(Profit/loss adjusted for non-recurring items before tax - income tax adjusted for the tax effect of non-recurring items) x 100 / Shareholders' equity

Return on equity excl. non- recurring items, %, moving 12 months	(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) x100 / Shareholders' equity

Equity ratio, %	Shareholders' equity x 100 / (Balance sheet total - prepayments received)

Earnings/share, diluted	(Profit/loss - non-controlling interests) / Average number of shares adjusted for the dilutive effect of options

Earnings/share, basic	(Profit/loss - non-controlling interests) / Average number of shares

Earnings/share excl. non- recurring items, basic	(Profit/loss adjusted for non-recurring items - non-controlling interests)/Average number of shares

Equity/share	Equity attributable to equity holders of the parent / Basic number of shares at the end of the reporting period

Gearing, %	Interest-bearing net liabilities x 100 / Shareholders' equity
Interest-bearing net debt		Interest-bearing liabilities - money market investments - cash and cash equivalents

* Indicators for return on capital have been annualised.

K-Group's retail and B2B sales, VAT 0% (preliminary data):

	1.1.-31.3.2012
K-Group's retail and B2B sales	€ million	Change, %

K-Group's food trade
K-food stores, Finland	1,117	6.5
Kespro	179	10.5
Food trade total	1,296	7.0

K-Group's home and speciality goods trade
Home and speciality goods stores, Finland	400	4.3
Home and speciality goods stores, other countries	13	(..)
Home and speciality goods trade total	413	6.6

K-Group's building and home improvement trade
K-rauta and Rautia	187	7.1
Rautakesko B2B Service	48	15.5
K-maatalous	89	11.9
Finland total	324	9.6
Building and home improvement stores, other Nordic countries	244	14.3
Building and home improvement stores, Baltic countries	71	13.9
Building and home improvement stores, other countries	69	11.4
Building and home improvement trade total	707	11.8

K-Group's car and machinery trade
VV-Autotalot	138	41.1
VV-Auto, import	159	25.9
Konekesko, Finland	49	1.4
Finland total	346	27.0
Konekesko, Baltic countries	17	30.7
Car and machinery trade total	363	27.1

Finland total	2,366	9.4
Other countries total	413	16.7
Retail and B2B sales total	2,779	10.4

(..) Change over 100%

Decisions of the organisational meeting of Kesko Corporation's Board of Directors

Mon, 16 Apr 2012 17:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 16.04.2012 AT 17.00 1(1)

After the Annual General Meeting, Kesko Corporation's Board of Directors held an organisational meeting in which it appointed Esa Kiiskinen as its Chair and Seppo Paatelainen as its Deputy Chair. Maarit Näkyvä (Ch.), Seppo Paatelainen (Dep. Ch.) and Virpi Tuunainen were elected onto the Board's Audit Committee. Esa Kiiskinen (Ch.), Seppo Paatelainen (Dep.Ch.) and Ilpo Kokkila were elected onto the Board's Remuneration Committee.

Based on the Board's independence evaluation, all Board members are independent of the company's significant shareholders and, with the exception of Esa Kiiskinen, Tomi Korpisaari and Toni Pokela, also independent of the Company. The companies controlled by Kiiskinen, Korpisaari and Pokela have chain agreements with a Kesko Group company. The Committees fulfil the independence requirements of the Finnish Corporate Governance Code for Listed Companies.

The Board elects the Board Chair and Deputy Chair for the whole three-year term of a Board member, and the Committee Chairs, Deputy Chairs and members for one year at a time.

Further information is available from Corporate Secretary, Director Mika Majoinen, telephone +358 1053 22206.

Kesko Corporation

Harri Utoslahti
Communications Manager

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

Resolutions of Kesko Corporation's General Meeting

Mon, 16 Apr 2012 16:30:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 16.04.2012 AT 16.30 1(3)

Kesko Corporation's Annual General Meeting today adopted the financial statements for 2011 and discharged the Board members and the Managing Director from liability. The General Meeting resolved to distribute €1.20 per share as dividends. The General Meeting resolved that the number of Board members is seven and elected Esa Kiiskinen, Ilpo Kokkila, Tomi Korpisaari (new member), Maarit Näkyvä, Seppo Paatelainen, Toni Pokela (new member) and Virpi Tuunainen (new member) as Board members. The General Meeting elected PricewaterhouseCoopers Oy as the company's auditor. In addition, the General Meeting approved the Board's proposals for share issue and donation authorisations.

A total of 1,358 shareholders participated in the General Meeting.

The General Meeting handled the business specified for the Annual General Meeting in the Articles of Association, and the other matters listed below.

Resolutions of the General Meeting

Adoption of the financial statements
The General Meeting adopted Kesko Corporation's financial statements and the consolidated financial statements for 2011.

Use of profit
The General Meeting resolved to distribute a dividend of €1.20 per share on 98,035,931 shares held outside the company at the date of dividend distribution, or a total amount of €117,643,117.20. No dividend is paid on own shares held by the Company at the record date of dividend distribution. The record date for dividend distribution is 19 April 2012 and the General Meeting resolved that the dividend pay date is 26 April 2012.

Discharge from liability
The General Meeting discharged the Board members and the Managing Director from liability for the financial year 2011.

Board of Directors
The General Meeting resolved that the number of Board members is seven (7). In addition, the General Meeting resolved to leave the Board members' fees and the basis for reimbursement of expenses unchanged as follows:

The Chair of the Board is paid an annual fee of €80,000, the Deputy Chair of the Board €50,000, and a member of the Board €37,000. A meeting fee of €500 per meeting is paid for a Board meeting and its Committee's meeting, with the exception that the Chair of a Committee who is not the Chair or the Deputy Chair of the Board is paid a fee of €1,000 per Committee meeting. Daily allowances and compensation for travelling expenses are paid to the Board members in accordance with the general travel rules of Kesko.

The General Meeting resolved to elect Esa Kiiskinen, Ilpo Kokkila, Tomi Korpisaari (new member), Maarit Näkyvä, Seppo Paatelainen, Toni Pokela (new member) and Virpi Tuunainen (new member) as Board members for a three-year term of office, expiring at the close of the 2015 Annual General Meeting, stated in the Articles of Association.

Auditor
The General Meeting resolved that the auditor's fee is paid and expenses are reimbursed according to invoice approved by the company. The General Meeting elected the firm of auditors PricewaterhouseCoopers Oy, Authorised Public Accountants, with Johan Kronberg, APA, as the company's auditor with principal responsibility.

Share issue authorisation
The General Meeting approved the Board's proposal that it be authorised to decide on the issuance of a total maximum of 20,000,000 new B shares. The shares can be issued against payment for subscription by shareholders in a directed issue in proportion to their existing shareholdings regardless of whether they consist of A or B shares, or, deviating from the shareholder's pre-emptive right, in a directed issue, if there is a weighty financial reason for the company, such as using the shares to develop the company's capital structure, and financing possible acquisitions, investments or other arrangements within the scope of the company's business operations. The amount paid for the shares is recognised in the reserve of invested non-restricted equity.

The authorisation also includes the Board's authority to decide on the share subscription price, the right to issue shares against non-cash consideration and the right to make decisions on other matters concerning share issuances. The authorisation will be valid until 30 June 2015 and it does not cancel the Board's authorisation by the Annual General Meeting of 4 April 2011 to issue a total maximum of 1,000,000 own B shares held by the company valid until 30 June 2014.

Donations for charitable purposes
The General Meeting approved the Board's proposal that it be authorised until the 2013 Annual General Meeting to decide on the donation of a total maximum of €300,000 for charitable or corresponding purposes, and to decide on the donation recipients, purposes of use and other terms of the donations.

Effects of the dividend on Kesko Corporation's option schemes
The €1.20 dividend per share resolved by the General Meeting reduces the subscription prices of shares subscribed for with the 2007A, 2007B and 2007C stock options of the 2007 stock option scheme in accordance with the terms and conditions of the scheme.

As from 19 April 2012, the record date for the payment of dividends, the subscription prices of new B shares subscribed for with the above stock options are as follows:

Option right	ISIN code	B share subscription price	Subscription period	Short name
2007A	FI0009637201	€39.82	1 Apr. 2010-30 Apr. 2012	KESBVEW107
2007B	FI0009637219	€22.17	1 Apr. 2011-30 Apr. 2013	KESBVEW207
2007C	FI0009637227	€13.44	1 Apr. 2012-30 Apr. 2014	KESBVEW307

The proposals to the General Meeting were published in a stock exchange release on 2 February 2012. The notice of General Meeting was also published in a stock exchange release on 27 February 2012.

Further information is available from Vice President, General Counsel Anne Leppälä-Nilsson, telephone +358 1053 22347.

Kesko Corporation

Harri Utoslahti
Communications Manager

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

Kesko's sales in March increased by 12.2%

Mon, 16 Apr 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 16.04.2012 AT 09.00 1(2)

The Kesko Group's sales in March 2012, excluding VAT, totalled €901.7 million, showing an increase of 12.2%.

In Kesko's food trade, sales in March were €375.7 million, an increase of 4.2% compared to the previous year. Sales to the K-food store chains were up by 4.8%. The sales of Pirkka products to K-food stores increased by 16.0%. The sales of Kespro Ltd grew by 5.7%.

In the home and speciality goods trade, sales in March were €138.3 million, an increase of 8.7%. The best sales growth was achieved by K-citymarket's home and speciality goods and Kenkäkesko.

In the building and home improvement trade, sales in March were €255.6 million, an increase of 9.2%. Sales in Finland were up by 4.8%. Sales abroad increased by 13.7% in terms of euros. Sales growth in Russia, in terms of euros, stood at 23.3%.

In the car and machinery trade, sales in March were €147.9 million, an increase of 47.5%. VV-Auto's sales in March were €121.3 million, up 63.6%. The sales performance is partly attributable to the car tax change effective from 1 April 2012. Konekesko's sales in March were €26.9 million, showing a 2.6% increase.

Kesko Group sales in euros, excluding VAT, in March 2012:

	March	2012	1.1. -	31.3.2012
	€ million	Change, %	€ million	Change, %
Food trade, total	375.7	4.2	1,019.8	6.7
Home and speciality goods trade, total	138.3	8.7	372.8	6.0
Building and home improvement trade, Finland	125.0	4.8	305.8	7.6
Building and home improvement trade, other countries	130.7	13.7	333.7	12.8
Building and home improvement trade, total	255.6	9.2	639.5	10.2
Car and machinery trade, total	147.9	47.5	361.8	26.6
Common operations and eliminations	-15.8		-42.0
Grand total	901.7	12.2	2,351.9	10.3

Finland, total	759.7	11.5	1,989.4	9.3
Other countries, total	142.1	16.0	362.5	15.9
Grand total	901.7	12.2	2,351.9	10.3

Change, % indicates the change over the corresponding period of the previous year.

In March 2012, the number of selling days in Kesko's wholesale in Finland was 22, which was one less than in the previous year. The total number of wholesale selling days in January-March was one more than in the previous year. The number of retail selling days in March was 31, which was the same as in the previous year. The total number of retail selling days in January-March was one more than in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Change in the ownership of Kesko Corporation's own shares

Thu, 12 Apr 2012 12:15:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 12.04.2012 AT 12.15 1(1)

Kesko has today transferred a total of 90,889 own B shares (KESBV) held by the company to the about 150 Kesko management employees and other named key persons included in the target group of the 2011 vesting period of the three-year share-based compensation plan. Furthermore, on the same basis Kesko will also transfer not more than a total of 1,862 own B shares held by the company by the end of May 2012.

The transfer of the shares is based on the decision of Kesko's Board or Directors, announced in a stock exchange release on 2 February 2012, to grant own B shares held by the company based on the fulfilment of the vesting criteria of the 2011 vesting period of Kesko's three-year share-based compensation plan.

Before the transfers, Kesko held 700,000 own B shares. After the transfers, the company will hold not less than 607,249 own B shares.

Further information is available from Riitta Laitasalo, Senior Vice President, Human Resources, telephone +358 1053 22060.

Kesko Corporation

Merja Haverinen

Senior Vice President, Corporate Communications and Responsibility

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

Kesko's Annual Report, Corporate Governance Statement and Remuneration Statement for 2011

Fri, 23 Mar 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 23.03.2012 AT 09.00 1(1)

Kesko's Annual Report, a separate Corporate Governance Statement and a Remuneration Statement for 2011, referred to in the Finnish Corporate Governance Code, have today been published in Finnish and English. The Annual Report includes the financial statements, the consolidated financial statements, the Report by the Board of Directors and the Auditors' Report.

The Annual Report, the Corporate Governance Statement and the Remuneration Statement can be read and downloaded from www.kesko.fi/investors. Printed Annual Reports can be ordered from the same web address.

Further information is available from Investor Relations Manager Riikka Toivonen, telephone +358 1053 23495.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Listing of Kesko's 2007C stock options

Thu, 15 Mar 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE NOTIFICATION 15.03.2012 AT 09.00 1(2)

Kesko Corporation has applied for listing of the 2007C stock options under the 2007 stock option scheme, approved by the Annual General Meeting of 26 March 2007, on the official list of NASDAQ OMX Helsinki for public trading. NASDAQ OMX Helsinki has decided that the trading of these stock options will commence on 2 April 2012.

On 1 February 2012, Kesko Corporations' Board of Directors decided to apply for listing of the 2007C stock options (short name KESBVEW307) under the 2007 stock option scheme on the official list of NASDAQ OMX Helsinki on 2 April 2012, the first trading day from the beginning of their exercise period. The total number of the 2007C stock options is 1,000,000. Each stock option entitles its holder to subscribe for one (1) new Kesko Corporation B share (short name KESBV) during 1 April 2012 to 30 April 2014 at a subscription price that corresponds to the trade volume weighted average price of a B share on NASDAQ OMX Helsinki during the period 1 to 30 April 2009 (€16.84), with a deduction of the amount of dividends or other distributions of funds decided after the period for the determination of the subscription price has begun but before share subscription, on the record date of each dividend distribution or other distribution of funds.

Currently the subscription price of a share subscribed for with a 2007C stock option is €14.64.

The dividend rights of the shares and other shareholder rights commence after the shares have been entered in the Trade Register.

The trading of the 2007C stock options on the official list of NASDAQ OMX Helsinki will commence on 2 April 2012.

The basic information of Kesko's 2007C stock options is as follows:

Short name:	KESBVEW307
ISIN code:	FI0009637227
Share subscription ratio	1 (KESBVEW307) : 1 (KESBV)
Share subscription price on 1 April 2012:	€14.64 per share
Exercise period:	1 April 2012 - 30 April 2014
Number of stock options:	1,000,000

On 16 February 2010, the Financial Supervisory Authority granted the company a permission to be exempted from the obligation to publish a prospectus in connection with applying for listing the stock options and new Kesko B shares subscribed for with the stock options for public trading.

The terms and conditions of the 2007 stock option scheme are available at www.kesko.fi/investors.

Further information is available from Corporate Counsel Jarkko Karjalainen, telephone +358 10 53 22602.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko's sales in February increased by 11.2%

Wed, 14 Mar 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 14.03.2012 AT 09.00 1(2)

The Kesko Group's sales in February 2012, excluding VAT, totalled €729.9 million, showing an increase of 11.2%.

In Kesko's food trade, sales in February were €332.7 million, an increase of 9.7% compared to the previous year. Sales to the K-food store chains were up by 9.3%. The sales of Pirkka products to K-food stores increased by 25.3%. The sales of Kespro Ltd grew by 12.4%.

In the home and speciality goods trade, sales in February were €108.4 million, an increase of 8.0%. The best sales growth was achieved by K-citymarket's home and speciality goods and Intersport.

In the building and home improvement trade, sales in February were €203.2 million, an increase of 13.3%. Sales in Finland were up by 15.4%. Sales abroad increased by 11.4% in terms of euros, in Russia by 21.1%.

In the car and machinery trade, sales in February were €98.6 million, an increase of 16.8%. VV-Auto's sales in February were €78.4 million, up 21.4%. Konekesko's sales in February were €20.4 million, showing a 2.2% year-on-year increase.

Kesko Group sales in euros, excluding VAT, in February 2012:

	February	2012	1.1. -	29.2.2012
	€ million	Change, %	€ million	Change, %
Food trade, total	332.7	9.7	644.1	8.2
Home and speciality goods trade, total	108.4	8.0	234.5	4.5
Building and home improvement trade, Finland	101.0	15.4	180.9	9.6
Building and home improvement trade, other countries	102.3	11.4	203.1	12.2
Building and home improvement trade, total	203.2	13.3	383.9	10.9
Car and machinery trade, total	98.6	16.8	213.9	15.3
Common operations and eliminations	-13.1		-26.2
Grand total	729.9	11.2	1,450.2	9.2

Finland, total	619.4	10.7	1,229.7	8.0
Other countries, total	110.5	14.0	220.5	15.9
Grand total	729.9	11.2	1,450.2	9.2

Change, % indicates the change over the corresponding period of the previous year.

In February 2012, the number of selling days in Kesko's wholesale in Finland was 21, which was one more than in the previous year. The total number of selling days in January-February was two more than in the previous year. The number of retail selling days in February was 29, which was one more than in the previous year. The total number of retail selling days in January-February was one more than in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Notice of Annual General Meeting

Mon, 27 Feb 2012 08:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 27.02.2012 AT 08.00 1(5)

Notice is given to Kesko Corporation's shareholders of the Annual General Meeting which will be held in the Helsinki Fair Centre's congress wing, Messuaukio 1 (congress wing entrance), Helsinki, on Monday, 16 April 2012 at 13.00 EET. The reception desks for those registered for the meeting are open, voting tickets are provided and coffee is served from 12.00 EET.

A. Items on the agenda of the General Meeting

1. Opening of the meeting

2. Calling the meeting to order

3. Election of persons to scrutinize the minutes and to supervise the counting of votes

4. Recording the legality of the meeting

5. Recording the attendance at the meeting and adoption of the list of votes

6. Review by the President and CEO

7. Presentation of the 2011 financial statements, the report of the Board and the auditor's report

8. Adoption of the financial statements

9. Distribution of the profits shown on the balance sheet and resolution on the payment of dividend

The Board proposes that a dividend of €1.20 per share be paid for the year 2011 on the basis of the adopted balance sheet. The dividend is paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the record date for the payment of dividend, 19 April 2012. No dividend is paid on own shares held by the company at the record date for the payment of dividend. The Board proposes that the dividend pay date be 26 April 2012.

10. Resolution on discharging the Board members and the Managing Director from liability

11. Resolution on the Board members' fees and the basis for reimbursement of their expenses

Shareholders who jointly represent over 10% of the votes carried by the Kesko Corporation shares have informed the company that they will propose to the Annual General Meeting that the Board members' fees and the basis for reimbursement of their expenses be unchanged. The fees and the basis for reimbursement of expenses are as follows:

The Chair of the Board is paid an annual fee of €80,000, the Deputy Chair of the Board €50,000, and a member of the Board €37,000. A meeting fee of €500 per meeting is paid for a Board meeting and its Committee's meeting, with the exception that the Chair of a Committee who is not the Chair or the Deputy Chair of the Board is paid €1,000 per Committee meeting. Daily allowances and compensation for travelling expenses are paid to the members of the Board in accordance with the general travel rules of Kesko.

12. Resolution on the number of Board members

Shareholders jointly holding over 10% of the votes carried by the Kesko Corporation shares have informed the company that they will propose to the Annual General Meeting that the number of members of the Board be seven (7).

13. Election of the Board members

Shareholders jointly holding over 10% of the votes carried by the Kesko Corporation shares have informed the company that they will propose to the Annual General Meeting that Mr Esa Kiiskinen, Mr Ilpo Kokkila, Mr Tomi Korpisaari (new member), Ms Maarit Näkyvä, Mr Seppo Paatelainen, Mr Toni Pokela (new member) and Ms Virpi Tuunainen (new member) be elected as Board members.

The essential biographical details of all candidates proposed for Board members are available on the company's website at www.kesko.fi/Investors.

14. Resolution on the auditor's fee and the basis for reimbursement of expenses

The Board's Audit Committee proposes to the General Meeting that the auditor's fee and expenses be reimbursed according to invoice approved by the company.

15. Election of the auditor

The Board's Audit Committee proposes to the General Meeting that the firm of auditors PricewaterhouseCoopers Oy, Authorised Public Accountants, who have announced Johan Kronberg, APA, to be their auditor with principal responsibility, be elected as the company's auditor.

16. The Board's proposal for share issue authorisation

The Board proposes that it be authorised to decide on the issuance of a total maximum of 20,000,000 new B shares. The shares can be issued against payment for subscription by shareholders in a directed issue in proportion to their existing shareholdings regardless of whether they consist of A or B shares, or, deviating from the shareholder's pre-emptive right, in a directed issue, if there is a weighty financial reason for the company, such as using the shares to develop the company's capital structure, and financing possible acquisitions, capital expenditures or other arrangements within the scope of the company's business operations. The amount paid for the shares is recognised in the reserve of invested non-restricted equity.

The Board's authorisation also includes the authority to decide on the share subscription price, the right to issue shares against non-cash consideration and the right to make decisions on other matters concerning share issuances. The authorisation is valid until 30 June 2015 and does not cancel the Board's authorisation by the Annual General Meeting of 4 April 2011 to issue a total maximum of 1,000,000 own B shares held by the company valid until 30 June 2014. The Board's authorisation by the Annual General Meeting of 30 March 2009 to issue a total maximum of 20,000,000 new B shares will expire on 30 March 2012. The Board has not used the expiring authorisation.

17. Donations for charitable purposes

The Board proposes that the General Meeting resolve to authorise the Board to decide on the donations in a total maximum of €300,000 for charitable or corresponding purposes until the Annual General Meeting to be held in 2013, and to authorise the Board to decide on the donation recipients, purposes of use and other terms of the donations.

18. Closing of the meeting

B. General Meeting documents

The above resolution proposals on the agenda of the General Meeting, as well as this notice of the meeting are available on Kesko Corporation's website at www.kesko.fi/Investors. Kesko Corporation's Annual Report, including the company's financial statements, the report by the Board and the auditor's report, will be available on the company's website on 23 March 2012. The resolution proposals and the other documents mentioned above will also be available at the General Meeting, and copies of the documents and of this notice of the meeting will be sent to shareholders on request. The minutes of the General Meeting will be made available to shareholders on the company's website from 30 April 2012.

C. Instructions for meeting participants

1. Right to participate and registration

Shareholders have the right to participate in the General Meeting if they are registered as shareholders in the company's register of shareholders kept by Euroclear Finland Ltd on 2 April 2012. Shareholders whose shares are registered on their personal Finnish book-entry accounts are registered in the company's register of shareholders.

A shareholder registered in the company's register of shareholders wishing to participate in the General Meeting shall notify it to the company no later than 11 April 2012 at 16.00 EET, by which time the notice of participation must be received by the company. The notification can be made either

a) through the website at www.kesko.fi/Investors following the instructions therein,
b) by e-mail to taina.hohtari @ kesko.fi,
c) by telephone +358 1053 23211 (from Monday to Friday between 9.00 and 16.00 EET),
d) by fax +358 1053 23421, or
e) by letter to Kesko Corporation, Legal Affairs, Satamakatu 3, FI-00016 Kesko.

The registration information shall include the shareholder's name, personal ID/business ID, address, telephone number and possible assistant's or proxy representative's name and personal ID. The personal information will only be used in connection with the General Meeting and when handling related necessary registrations.

2. Holder of a nominee registered share

A holder of a nominee registered share has the right to participate in the General Meeting by virtue of the shares which would entitle him/her to be registered in the shareholder register kept by Euroclear Finland Ltd on 2 April 2012. In addition, the participation requires that the shareholder is registered in the temporary register of the company's shareholders by virtue of this shareholding no later than 11 April 2012 at 10.00 EET. With respect to nominee registered shares, this constitutes the registration for the General Meeting.

Holders of nominee registered shares are advised to request instructions for registering in the shareholder register, submitting their proxy documents and participating in the General Meeting from their custodian banks well in advance. The account management organisation of the custodian bank shall request a holder of a nominee registered share wishing to participate in the Annual General Meeting to be temporarily registered in the company's shareholder register no later than the above date and hour.

3. Proxy representative and proxy documents

A shareholder may participate in the General Meeting and exercise his/her rights at the meeting by way of proxy representation. The proxy representative shall produce a dated proxy document, or otherwise in a reliable manner demonstrate his/her right to represent the shareholder. When a shareholder participates in the General Meeting by means of several proxy representatives representing the shareholder with shares at different securities accounts, the shares by which each proxy representative represents the shareholder shall be identified in connection with the registration.

Possible proxy documents shall be delivered in originals to the above address before the last date for registration.

4. Other information

Pursuant to Chapter 5, Section 25 of the Limited Liability Companies' Act, a shareholder who is present at the General Meeting has the right to request information with respect to the matters to be dealt with at the Meeting.

At the date of the notice of the General Meeting, Kesko Corporation has 31,737,007 A shares and 66,908,035 B shares, or 98,645,042 shares in aggregate. The A shares carry a total of 317,370,070 votes, and the B shares carry 66,908,035 votes, or the aggregate number of votes carried by the shares is 384,278,105.

Helsinki, 1 February 2012

KESKO CORPORATION

BOARD OF DIRECTORS

Further information is available from Vice President, General Counsel Anne Leppälä-Nilsson, tel. +358 1053 22347.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Transfer of Kesko's employee pension insurances to Ilmarinen completed

Wed, 15 Feb 2012 13:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 15.02.2012 AT 13.00 1(1)

The Financial Supervisory Authority has today given its permission to carry out the second phase of the transfer of the Kesko Group companies' statutory pension insurance liability portfolio, agreed between the Kesko Pension Fund and Ilmarinen Mutual Pension Insurance Company in December 2009, with effect from 1 January 2012. The second phase of the transfer of the insurance portfolio and pension liability now carried out concerns some 5,600 employees of the Kesko Group.

The second transfer of the insurance liability portfolio now carried out is part of the plan announced on 30 December 2009 to transfer the management of Kesko's statutory pension provision and insurance portfolio in two phases from the Kesko Pension Fund to Ilmarinen.

The transfer now carried out will not have a significant impact on Kesko's profit for the first quarter.

The Kesko Pension Fund has had surplus assets with respect to the pension liabilities now transferred. The surplus assets planned to be returned later this year by the Kesko Pension Fund to employers with an insurance policy with it are expected to generate a positive cash flow to Kesko. The surplus to be returned has been included in Kesko's consolidated statement of financial position as a pension asset.

Returning the surplus is conditional on the approval of the Financial Supervisory Authority.

The transfer of Kesko's statutory pension insurance provision and insurance portfolio has been previously announced in a stock exchange release on 30 December 2009 and 1 September 2010.

Further information:
Riitta Laitasalo, Senior Vice President, Human Resources, Kesko Corporation, tel. +358 10 53 22060
Jukka Erlund, Senior Vice President, CFO, Kesko Corporation, tel. +358 10 53 22113

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko's sales increased in January by 7.2%

Tue, 14 Feb 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 14.02.2012 AT 09.00 1(2)

The Kesko Group's sales in January 2012, excluding VAT, totalled €720.3 million, showing an increase of 7.2%.

In Kesko's food trade, sales in January were €311.4 million, an increase of 6.6% compared to the previous year. Sales to the K-food store chains were up by 5.4%. The sales of Pirkka products to K-food stores increased by 11.1%. The sales of Kespro Ltd grew by 14.7%.

In the home and speciality goods trade, sales in January were €126.1 million, an increase of 1.6%. The sales of K-citymarket's home and speciality goods and the sales of Asko and Sotka increased. The sales of Anttila decreased.

In the building and home improvement trade, sales in January were €180.7 million, an increase of 8.4%. Sales in Finland were up by 3.0%. Sales abroad increased by 13.0% in terms of euros, in Russia by 23.7%.

In the car and machinery trade, sales in January were €115.3 million, an increase of 14.1%. VV-Auto's sales in January were €96.9 million, up 13.9%. Konekesko's sales in January were €18.6 million, showing a 15.2% year-on-year increase.

Kesko Group sales in euros, excluding VAT, in January 2012:

	January	2012
	€ million	Change, %
Food trade, total	311.4	6.6
Home and speciality goods trade, total	126.1	1.6
Building and home improvement trade, Finland	79.9	3.0
Building and home improvement trade, other countries	100.8	13.0
Building and home improvement trade, total	180.7	8.4
Car and machinery trade, total	115.3	14.1
Common operations and eliminations	-13.2
Grand total	720.3	7.2

Finland, total	610.3	5.5
Other countries, total	110.0	17.8
Grand total	720.3	7.2

Change, % indicates the change over the corresponding period of the previous year.

In January 2012, the number of selling days in Kesko's wholesale in Finland was 21, which was one more than in the previous year. The number of retail selling days in January was 29, which was the same as in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

DISTRIBUTION
NASDAQ OMX Helsinki
Main news media

www.kesko.fi

Kesko's Annual Summary 2011

Fri, 03 Feb 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE NOTIFICATION 03.02.2012 AT 09.00 1(3)

Annual summary of Kesko's stock exchange releases and notifications in 2011 is available on the company's website at the address www.kesko.fi/Investors.

Some of the information in the releases might be out of date.

Further information is available from Corporate Counsel Jarkko Karjalainen, tel. +358 1053 22602.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications

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

APPENDIX 1

STOCK EXCHANGE RELEASES AND NOTIFICATIONS 2011
(ANNUAL SUMMARY 2011)

17.01.2011	Kesko's sales in December 2010 »
03.02.2011	Financial statements for the period 1 Jan.-31 Dec. 2010 »
03.02.2011	Proposals to Kesko Corporation's Annual General Meeting »
04.02.2011	Merja Haverinen appointed the Kesko Group's Senior Vice President for Corporate Communications and Responsibility »
09.02.2011	Shareholders' Proposals to the Annual General Meeting »
14.02.2011	Kesko's sales in January 2011 »
24.02.2011	Kesko's Annual Summary 2010 »
07.03.2011	Notice of Annual General Meeting »
11.03.2011	Kesko's Annual Report, Corporate Governance Statement and Remuneration Statement for 2010 »
14.03.2011	Kesko's February sales growth 9.7% »
24.03.2011	Listing of Kesko's 2007B stock options »
01.04.2011	Kesko Food and Rautakesko Boards of Directors »
04.04.2011	Kesko Corporation's Annual General Meeting on 4 April 2011: President and CEO Matti Halmesmäki announces Kesko's plan for major expansion of operations in Russia »
04.04.2011	Resolutions of Kesko Corporation's General Meeting »
04.04.2011	Compositions of Kesko Corporation's Board Committees »
04.04.2011	Kesko introduces a new share-based compensation plan »
14.04.2011	Kesko's sales increased in March by 4.9% »
28.04.2011	Interim report for 1 January - 31 March 2011 »
28.04.2011	Kesko to begin acquisition of own B shares »
09.05.2011	Kesko Changes in company's own shares »
10.05.2011	Kesko Changes in company's own shares »
11.05.2011	Kesko Changes in company's own shares »
12.05.2011	Changes in company's own shares »
13.05.2011	Kesko's sales increased in April by 8.1% »
16.05.2011	Changes in company's own shares »
17.05.2011	Changes in company's own shares »
18.05.2011	Changes in company's own shares »
19.05.2011	Changes in company's own shares »
23.05.2011	Changes in company's own shares »
24.05.2011	Changes in company's own shares »
25.05.2011	Retirement age of Kesko Corporation's Managing Director to rise »
25.05.2011	Changes in company's own shares »
26.05.2011	Changes in company's own shares »
31.05.2011	Share subscriptions with Kesko's 2007B options »
31.05.2011	Changes in company's own shares »
01.06.2011	Changes in company's own shares »
03.06.2011	Changes in company's own shares »
03.06.2011	Intersport operations in Russia to be transferred to Kesko »
06.06.2011	Changes in company's own shares »
07.06.2011	Changes in company's own shares »
08.06.2011	Changes in company's own shares »
09.06.2011	Rautakesko's President to be replaced »
09.06.2011	Changes in company's own shares »
13.06.2011	Changes in company's own shares »
14.06.2011	Changes in company's own shares »
15.06.2011	Kesko's sales increased in May by 12% »
15.06.2011	Changes in company's own shares »
16.06.2011	Changes in company's own shares »
20.06.2011	Changes in company's own shares »
21.06.2011	Changes in company's own shares »
22.06.2011	Changes in company's own shares »
27.06.2011	Changes in company's own shares »
28.06.2011	Changes in company's own shares »
14.07.2011	Kesko's sales increased in June by 4.9% »
26.07.2011	Interim report for 1 January - 30 June 2011 »
01.08.2011	Share subscriptions with Kesko's 2007B options »
12.08.2011	Kesko's sales increased in July by 5.8% »
24.08.2011	Acquisition of Intersport operations in Russia concluded »
14.09.2011	Kesko's sales increased in August by 11.4 % »
14.10.2011	Kesko's sales increased in September by 6.3 % »
18.10.2011	Kesko's financial reporting in 2012 »
26.10.2011	Kesko's interim report for 1 January - 30 September 2011 »
26.10.2011	Kesko's Corporate Management Board to be revised »
14.11.2011	Kesko's sales increased in October by 7.9% »
15.12.2011	Kesko's sales increased in November by 7.4% »

Kesko's share-based compensation plan in 2012 and compensation in 2011

Thu, 02 Feb 2012 09:45:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 02.02.2012 AT 09.45 1(2)

Kesko Corporation's Board has decided the target group for the 2012 vesting period under Kesko's three-year share-based compensation plan to consist of some 150 Kesko management employees and other named key persons, the vesting criteria for the vesting period, and the maximum share award of each target group member. At the same time, the Board decided to grant a total of 93,875 company B shares based on the fulfilment of the vesting criteria of the 2011 vesting period of the share-based compensation plan.

The purpose of the share-based compensation plan is to promote Kesko's business and to increase the company's value by combining the objectives of the shareholders and the management employees. The plan commits the grantees to the Kesko Group and gives them the opportunity to receive company shares upon fulfilment of the objectives set in the share-based compensation plan.

In the share-based payment plan, the award for each vesting period of a calendar year is based on the fulfilment of the vesting criteria determined by the Board separately for each vesting period. Like the 2011 vesting criteria, the 2012 vesting criteria are the Kesko Group's sales growth percentage exclusive of tax, Kesko's basic earnings per share (EPS) excluding non-recurring items and the percentage by which the total earnings of a Kesko B share exceeds the OMX Helsinki Benchmark Cap index. The award for the 2012 vesting period will be paid by the end of April 2013.

Following a vesting period, the shares granted as a share award carry a commitment period of three calendar years, during which the shares are not allowed to be assigned. If a person's employment or service relationship ends prior to the expiry of a commitment period, he/she must return the shares under the assignment restriction to Kesko without consideration.

Based on the fulfilment of the vesting criteria of the 2011 vesting period of the share-based payment plan, a total of 93,875 own B shares held by the company are granted to the about 150 Kesko management employees and other named key persons included in the target group of the 2011 vesting period. The shares will be assigned to the grantees by the end of April 2012 in accordance with the terms and conditions of the plan. The grantees cannot assign or pledge these shares prior to the expiry of the related commitment period on 31 December 2014.

Under the plan, a total maximum of 600,000 own B shares held by the company may be granted within three years. In addition to shares granted based on the fulfilment of the vesting criteria of each vesting period, a cash component is paid to cover the taxes and tax-like charges resulting from the award.

The granting of shares is based on the Board's authorisation by the Annual General Meeting of 4 April 2011.

Kesko's share-based compensation plan was announced on a stock exchange release on 4 April 2011.

Further information is available from Riitta Laitasalo, Senior Vice President, Human Resources, tel. +358 1053 22060.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Shareholders' proposal to the Annual General Meeting for the Kesko Board's composition and remuneration

Thu, 02 Feb 2012 09:30:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 02.02.2012 AT 09.30 1(2)

Kesko Corporation's shareholders jointly holding over 10% of the votes carried by the company shares have made a proposal to the Annual General Meeting to be held on 16 April 2012 for the number of Board members, the Board members, their remuneration and the reimbursement of their expenses.

Proposal for the number of Board members and the Board members

Kesko Corporation's shareholders jointly holding over 10% of the votes carried by the company shares have proposed that the company's Annual General Meeting resolve that the number of Board members be seven (7) and that Mr Esa Kiiskinen, Mr Ilpo Kokkila, Mr Tomi Korpisaari (new member), Ms Maarit Näkyvä, Mr Seppo Paatelainen, Mr Toni Pokela (new member) and Ms Virpi Tuunainen (new member) be elected as Board members for a term of three years provided in the Articles of Association.

New Board member candidate Tomi Korpisaari, b. 1968, acts as the retailer of a combined building and home improvement and agricultural store on five localities. Korpisaari has acted as a K-retailer since 1995. Korpisaari's positions of trust include Board Deputy Chair of the K-Retailers' Association, Board member of Vähittäiskaupan Takaus Oy, Board member of Vähittäiskaupan Tilipalvelu VTP Oy, Board member of K-instituutti Oy, Board Deputy Chair of the Foundation for Vocational Training in the Retail Trade, Supervisory Board member of OP-Pohjola Group Central Cooperative, Supervisory Board Chair of Riihimäen Seudun Osuuspankki, member of the Delegation for Entrepreneurs of the Confederation of Finnish Industries EK, member of the delegation of family enterprises of Perheyritysten Liitto, and Board member and Managing Director of Olavi Korpisaari Oy. Olavi Korpisaari Oy, the company controlled by Korpisaari, has a chain agreement with Rautakesko Ltd. At 31 January 2012, Korpisaari and Olavi Korpisaari Oy held a total of 82,373 Kesko Corporation A shares and 500 Kesko Corporation B shares. By education, Korpisaari is a Master of Science in Economics.

New Board member candidate Toni Pokela, b. 1973, acts as the retailer of K-citymarket Iso Omena in Espoo. Pokela has acted as a K-retailer since 1997. Pokela's positions of trust include Board member of the K-Retailers' Association, Board Chair of the K-Food Retailers' Club, Board member of Vähittäiskaupan Takaus Oy, Board member of K-instituutti Oy, Board member of the Finnish Grocery Trade Association and Board member and Managing Director of Pokela Oy Iso Omena. Pokela Oy Iso Omena, the company controlled by Pokela, has a chain agreement with Kesko Food Ltd. At 31 January 2012, Pokela Oy Iso Omena held a total of 109,400 Kesko Corporation A shares. By education, Pokela is a secondary school graduate.

New Board member candidate Virpi Tuunainen, b. 1967, acts as the Professor of Information Systems Science (information and service management) at Aalto University School of Economics and Director of Aalto Service Factory. Tuunainen's positions of trust include Board member of KP-Media Oy, Advisory Board member of SFR-Scandinavian Financial Research Ltd, Academic Advisory Board member of Cambridge Service Alliance and Chair of Real-Time Economy Competence Center at Aalto University. Since 1995, she has held various positions, which include Visiting Researcher, Visiting Professor and Professor at Finnish and foreign universities and higher education institutions. At 31 January 2012, Tuunainen held no Kesko Corporation shares. By education, Tuunainen is a Doctor of Science in Economics.

All of the proposed candidates have given their consent to the election. The biographical details of all candidates proposed for Board members are available on the company's website at www.kesko.fi/Investors.

Proposal for the remuneration of Board members and the reimbursement of their expenses

In addition, the said shareholders propose that the remuneration of the Board members and the Board Committees' members, and the reimbursement of their expenses remain unchanged as follows:

- the Board Chair, an annual remuneration of €80,000,
- the Board Deputy Chair, an annual remuneration of €50,000,
- a Board member, an annual remuneration of €37,000,
- a meeting fee of €500/meeting for a Board meeting and its Committee's meeting, and a meeting fee of €1,000/meeting to a Committee Chair who is not the Chair or the Deputy Chair of the Board,
- daily allowances and compensation for travelling expenses are paid to the Board members in accordance with the general travel rules of Kesko.

The above proposals will be included in the notice of the General Meeting which will be published separately.

Further information is available from Vice President, General Counsel Anne Leppälä-Nilsson, tel. +358 1053 22347.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko Board's proposals to the Annual General Meeting

Thu, 02 Feb 2012 09:15:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 02.02.2012 AT 09.15 1(2)

Kesko Corporation's Board has decided to propose to the Annual General Meeting to be convened for 16 April 2012 that the dividend payable for the year 2011 be €1.20 per share and that the Board be authorised to issue 20,000,000 new B shares. The Board's Audit Committee proposes that the firm of auditors PricewaterhouseCoopers Oy, Authorised Public Accountants, be elected as the auditor of the company.

Kesko Corporation's shareholders will be invited to the Annual General Meeting to be held in the Helsinki Fair Centre's congress wing, Messuaukio 1 (congress wing entrance), Helsinki, on Monday, 16 April 2012, starting at 13.00. In addition to the business specified for the Annual General Meeting in Article 10 of the Articles of Association, the following proposals of the Board and its Audit Committee will be handled by the Meeting:

Distributions of profits

The Board proposes that a dividend of €1.20 per share be paid for the year 2011 on the basis of the adopted balance sheet. The dividend would be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the record date for the payment of dividend, 19 April 2012. No dividend is paid on own shares held by the company at the record date for the payment of dividend. The Board of Directors proposes that the dividend pay date be 26 April 2012.

Auditor, auditor's fee and basis for reimbursement of expenses

The Board's Audit Committee proposes that the firm of auditors PricewaterhouseCoopers Oy, Authorised Public Accountants, who have announced Johan Kronberg, APA, to be their auditor with principal responsibility, be elected as the company's auditor. The Board's Audit Committee proposes that the auditor's fee and expenses be reimbursed according to invoice approved by the company.

Share issue authorisation

The Board proposes that it be authorised to decide on the issuance of a total maximum of 20,000,000 new B shares. The shares could be issued against payment for subscription by shareholders in a directed issue in proportion to their existing shareholdings regardless of whether they consist of A or B shares, or, deviating from the shareholder's pre-emptive right, in a directed issue, if there is a weighty financial reason for the company, such as using the shares to develop the company's capital structure, and financing possible acquisitions, investments or other arrangements within the scope of the company's business operations. The amount paid for the shares would be recognised in the reserve of invested non-restricted equity.

The Board's authorisation also includes the authority to decide on the share subscription price, the right to issue shares against non-cash consideration and the right to make decisions on other matters concerning share issuances. The authorisation would be valid until 30 June 2015 and would not cancel the Board's authorisation by the Annual General Meeting of 4 April 2011 to issue a total maximum of 1,000,000 own B shares held by the company valid until 30 June 2014. The Board's authorisation by the Annual General Meeting of 30 March 2009 to issue a total maximum of 20,000,000 new B shares will expire on 30 March 2012. The Board has not used the expiring authorisation.

Donations for charitable purposes

The Board proposes that the General Meeting resolve to authorise the Board to decide on the donations in a total maximum of €300.000 for charitable or corresponding purposes until the Annual General Meeting to be held in 2013, and to authorise the Board to decide on the donation recipients, purposes of use and other terms of the donations.

Available documents

The proposals of the Board and its Audit Committee are available on the company's website at www.kesko.fi/Investors. Financial statements documents will be made available for shareholders on the company's website on week 12. Copies of the documents will be sent to shareholders on request. They will also be available at the General Meeting.

Notice of the General Meeting

The notice of the General Meeting will be published separately at a later date in Helsingin Sanomat and Kauppalehti, and as a stock exchange release.

Further information is available from Vice President, General Counsel Anne Leppälä-Nilsson, tel. +358 1053 22347.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko's 2011 financial statements release

Thu, 02 Feb 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 02.02.2012 AT 09.00 1(31)

Financial performance in brief:

*The Group's net sales for January-December increased by 7.8%.

*The operating profit excluding non-recurring items for January-December was €278.9 million, up €10.8 million on the previous year (€268.1 million).

*The Board proposes a dividend of €1.20 per share.

*The Kesko Group's net sales are expected to grow during the next twelve months. Owing to the uncertainty about economic development and consumer demand, and the costs involved in the expansion of the store site network as well as expansion of business operations in Russia, we are prepared for the 2012 operating profit excluding non-recurring items to be lower than the 2011 operating profit excluding non-recurring items. The Group has amended its future outlook with regard to profitability performance. Previously, the operating profit excluding non-recurring items was expected to remain at the achieved good level during the next twelve months.

Key performance indicators

	1-12/2011	1-12/2010	10-12/2011	10-12/2010
Net sales, € million	9,460	8,777	2,481	2,310
Operating profit excl. non-recurring items, € million	278.9	268.1	71.5	80.5
Operating profit, € million	280.6	306.7	72.8	82.8
Profit before tax, € million	282.1	312.4	74.0	87.3
Capital expenditure, € million	425.4	325.3	104.5	201.6
Earnings/share, €, diluted	1.84	2.06	0.51	0.59
Earnings/share excl. non-recurring items, €, basic	1.84	1.78	0.50	0.58

	31.12.2011	31.12.2010
Equity ratio, %	53.9	53.5
Equity/share, €	22.20	21.81

FINANCIAL PERFORMANCE

Net sales and profit for January-December 2011
The Group's net sales in January-December 2011 were €9,460 million, which is 7.8% up on the corresponding period of the previous year (€8,777 million). In Finland, net sales increased by 7.3% and in other countries by 10.1%. International operations accounted for 17.1% (16.7%) of the net sales. Net sales continued to grow steadily in the food trade, the building and home improvement trade and the car and machinery trade.

1-12/2011	Net sales, M€	Change, %	Operating profit excl. non-recurring items, M€	Change, M€
Food trade	4,182	+7.3	172.2	+12.1
Home and speciality goods trade	1,564	-0.3	36.6	-29.4
Building and home improvement trade	2,716	+7.8	26.6	+2.6
Car and machinery trade	1,174	+23.0	51.8	+18.7
Common operations and eliminations	-176	+8.2	-8.3	+6.7
Total	9,460	+7.8	278.9	+10.8

The operating profit excluding non-recurring items for January-December was €278.9 million (€268.1 million), representing 2.9% (3.1%) of the net sales. Profitability improved in the car and machinery trade, the food trade and the building and home improvement trade. The operating profit excluding non-recurring items for January-December 2010 was improved by an €8 million amount recognised as revenue in connection with the transfer of the pension insurance portfolio. At the beginning of the year, the principle for allocating surplus amounts related to the additional defined benefit obligation of the Kesko Pension Fund to divisions was changed to correspond to the breakdown of pension liabilities. For January-December 2011, the change contributed €-1.7 million to the operating profit excluding non-recurring items in the food trade, and €-4.0 million in the home and speciality goods trade.

Operating profit was €280.6 million (€306.7 million). The operating profit includes a €1.7 million amount of non-recurring items. The comparative period included a net total of €38.6 million of non-recurring gains on real estate disposals, and provisions related to the reorganisation of the service station grocery store business of Pikoil Oy, a Kesko Food subsidiary. The Group's profit before tax for January-December was €282.1 million (€312.4 million).

The Group's earnings per share were €1.84 (€2.06). The Group's equity per share was €22.20 (€21.81).

In January-December, the K-Group's (i.e. Kesko's and the chain stores') retail and B2B sales (VAT 0%) were €11,767 million, up 7.2% compared to the previous year. In January-December, K-food stores' grocery sales grew by 5.9% (VAT 0%). In January-December, the K-Group chains' sales entitling to K-Plussa points were €5,699 million excluding tax, up 4.5% compared to the previous year. The K-Plussa customer loyalty programme gained 88,736 new households in January-December. At the end of December, there was 2,154,717 K-Plussa households and 3.7 million K-Plussa cardholders.

Net sales and profit for October-December 2011
The Group's net sales in October-December 2011 were €2,481 million, which is 7.4% up on the corresponding period of the previous year (€2,310 million). Net sales increased by 7.4% in Finland and by 7.5% in other countries. International operations accounted for 15.6% (15.6%) of the net sales. In the food trade, the increase in net sales is attributable to the good grocery sales performance of the K-food stores. Growth in the car and machinery trade was boosted by the growth of the market and the market share.

10-12/2011	Net sales, M€	Change, %	Operating profit excl. non-recurring items, M€	Change, M€
Food trade	1,108	+8.4	38.6	+1.8
Home and speciality goods trade	501	0.0	32.9	-12.7
Building and home improvement trade	657	+5.1	-4.4	-4.2
Car and machinery trade	263	+29.7	7.0	+3.1
Common operations and eliminations	-48	+14.9	-2.6	+3.1
Total	2,481	+7.4	71.5	-9.0

In October-December, the operating profit excluding non-recurring items was €71.5 million (€80.5 million), representing 2.9% (3.5%) of the net sales. Profitability improved in the car and machinery trade and in the food trade. The operating profit excluding non-recurring items of the home and speciality goods trade and the building and home improvement trade weakened from the comparative period.

Operating profit was €72.8 million (€82.8 million), including a €1.3 million amount of non-recurring items. The Group's profit before tax for October-December was €74.0 million (€87.3 million).

The Group's earnings per share were €0.51 (€0.59).

In October-December, the K-Group's (i.e. Kesko's and the chain stores') retail and B2B sales (VAT 0%) were €3,092 million, up 6.0% compared to the previous year. In October-December, K-food stores' grocery sales grew by 5.0% (VAT 0%). In October-December, the K-Group chains' sales entitling to K-Plussa points were €1,541 million excluding tax, up 3.0% compared to the previous year.

Finance
In January-December, the cash flow from operating activities was €215.7 million (€438.2 million). The cash flow of the comparative period included a €151.6 million amount of returned pension assets. The cash flow from investing activities was €-441.1 million
(€-239.6 million). It included a €8.2 million (€123.6 million) amount of proceeds from the sale of fixed assets.

Throughout January-December, the Group's liquidity and solvency remained at an excellent level despite a heavy capital expenditure programme. At the end of the period, liquid assets totalled €367 million (€847 million). Interest-bearing liabilities were €400 million (€477 million) and interest-bearing net debt €33 million (€-370 million) at the end of December. Equity ratio was 53.9% (53.5%) at the end of the period. Kesko Corporation increased the Group's financial resources by signing two €50 million five-year loan facilities.

In January-December, the Group's net finance income was €0.8 million (€6.0 million).

In October-December, the cash flow from operating activities was €46.6 million (€169.4 million). The cash flow from operating activities in the comparative period included a €125.1 million amount of returned pension assets. The cash flow from investing activities was €-110.1 million (€-192.8 million). It included a €2.0 million (€8.1 million) amount of proceeds from the sale of fixed assets.

In October-December, the Group's net finance income was €0.8 million (€4.6 million).

Taxes
The Group's taxes in January-December were €85.2 million (€96.7 million). The effective tax rate was 30.2% (31.0%), affected by loss-making foreign operations.

The Group's taxes in October-December were €18.7 million (€24.7 million). The effective tax rate was 25.3% (28.3%).

Capital expenditure
In January-December, the Group's capital expenditure totalled €425.4 million (€325.3 million), or 4.5% (3.7%) of the net sales. Capital expenditure in store sites was €361.8 million (€209.2 million), in acquisitions €21.8 million and other capital expenditure was €41.8 million (€116.0 million). Capital expenditure in foreign operations represented 31.7% (13.1%) of total capital expenditure.

In October-December, the Group's capital expenditure totalled €104.5 million (€201.6 million), or 4.2% (8.7%) of the net sales. Capital expenditure in store sites was €89.1 million (€117.0 million), in acquisitions €0.7 million and other capital expenditure was €14.8 million (€84.6 million). Capital expenditure in foreign operations represented 18.5% (6.5%) of total capital expenditure.

Personnel
In January-December, the average number of employees in the Kesko Group was 18,960 (18,215) converted into full-time employees. In Finland, the average increase was 141 people, while outside Finland, it was 604.

At the end of December 2011, the total number of employees was 23,375 (22,124), of whom 13,124 (12,720) worked in Finland and 10,251 (9,404) outside Finland. Compared to the end of December 2010, there was an increase of 404 people in Finland and 847 people outside Finland.

In January-December, the Group's staff cost was €570.5 million, an increase of 9.6% compared to the previous year. The staff cost for the comparative period was decreased by the €8.0 million amount recognised as revenue in connection with the transfer of the pension insurance portfolio. In October-December, the staff cost increased by 7.8% compared to the previous year and was €156.3 million.

SEGMENTS

Food trade

	1-12/2011	1-12/2010	10-12/2011	10-12/2010
Net sales, € million	4,182	3,896	1,108	1,022
Operating profit excl. non-recurring items, € million	172.2	160.1	38.6	36.8
Operating profit as % of net sales excl. non-recurring items	4.1	4.1	3.5	3.6
Capital expenditure, € million	221.5	117.2	62.3	57.4

Net sales, € million	1-12/2011	Change, %	10-12/2011	Change, %
Sales to K-food stores	3,251	+8.4	871	+9.1
Kespro	740	+7.5	188	+9.4
Others	191	-8.6	49	-5.9
Total	4,182	+7.3	1,108	+8.4

January-December 2011

In the food trade, the net sales for January-December were €4,182 million (€3,896 million), up 7.3%. The sales of Pirkka products to K-food stores were excellent, with sales growth standing at 32.3% (VAT 0%). During the same period, the grocery sales of K-food stores increased by 5.9% (VAT 0%). Good sales performance was achieved especially by the K-citymarket and K-supermarket chains. In January-December, the growth rate of the total grocery trade market in Finland is estimated at some 5.5% (VAT 0%) compared to the previous year (Kesko's own estimate). The price change in the grocery market is estimated to have stood at some +4% compared to the previous year (VAT 0%, Kesko's own estimate).

In January-December, the operating profit excluding non-recurring items of the food trade was €172.2 million (€160.1 million), or €12.1 million up on the previous year. The profitability improvement is attributable to K-food stores' and Kespro's good sales performance and cost management. Operating profit was €173.7 million (€158.4 million). The non-recurring items of the comparative period totalled €-1.7 million including gains on real estate disposals and provisions for the reorganisation of the service station grocery store business of Pikoil Oy, a Kesko Food subsidiary, as the most significant items.

Capital expenditure in the food trade was €221.5 million (€117.2 million), of which capital expenditure in store sites was €211.3 million (€102.4 million).

October-December 2011

In the food trade, the net sales for October-December were €1,108 million (€1,022 million), up 8.4%. During the same period, the grocery sales of K-food stores increased by 5.0% (VAT 0%).

In October-December, the operating profit excluding non-recurring items of the food trade was €38.6 million (€36.8 million), or €1.8 million up on the previous year. Operating profit was €40.0 million (€37.2 million).

In October-December, capital expenditure in the food trade was €62.3 million (€57.4 million), of which capital expenditure in store sites was €57.5 million (€53.8 million).

In October-December 2011, two new K-citymarkets and six new K-supermarkets were opened. Renovations and extensions were made in a total of 15 stores.

The most significant store sites being built are K-citymarkets in Hyvinkää, Kauhajoki, Kokkola, Kouvola and Valkeakoski. K-supermarkets in Lieksa, Loimaa and Mäntsälä are being extended into K-citymarkets and K-citymarket Imatra is being extended. New K-supermarkets are being built in Kaisaniemi, Helsinki, in Lahti, Kiiminki, Nurmijärvi, Pihtipudas, Pori, Sotkamo and in Hämeenkylä, Louhela and Nikinmäki, Vantaa. K-market in Pälkäne is being extended into a K-supermarket.

Home and speciality goods trade

	1-12/2011	1-12/2010	10-12/2011	10-12/2010
Net sales, € million	1,564	1,569	501	501
Operating profit excl. non-recurring items, € million	36.6	66.0	32.9	45.7
Operating profit as % of net sales excl. non-recurring items	2.3	4.2	6.6	9.1
Capital expenditure, € million	61.8	45.3	11.3	28.4

Net sales, € million	1-12/2011	Change, %	10-12/2011	Change, %
K-citymarket home and speciality goods	642	+3.5	207	+4.3
Anttila	474	-6.0	163	-6.3
Intersport, Finland	170	-2.0	53	-3.9
Intersport, Russia	7	-	6	-
Indoor	178	+15.3	46	+15.0
Musta Pörssi	74	-23.2	22	-21.6
Kenkäkesko	23	-0.1	4	-18.5
Total	1,564	-0.3	501	0.0

January-December 2011

In the home and speciality goods trade, the net sales for January-December were €1,564 million (€1,569 million), down 0.3%. K-citymarket home and speciality goods, as well as Asko and Sotka increased their sales. The sales of Anttila decreased. At the beginning of February, the Anttila department store in Tikkurila was closed because its lease term expired. The Anttila department store in Hämeenlinna was converted into a K-citymarket, which was opened in September 2011. In April, a K-citymarket was opened in Tammisto, Vantaa and in Palokka, Jyväskylä. In May, a K-citymarket was opened in Päivölä, Seinäjoki. In November, a K-citymarket was opened in Karisma, Lahti and in Äänekoski. In October, a Kodin Ykkönen was opened in Kuopio. Asko and Sotka opened new stores in Porvoo in November. As a result of network restructuring, there were 14 less Musta Pörssi stores at the end of the year compared to the previous year.

The operating profit excluding non-recurring items of the home and speciality goods trade in January-December was €36.6 million (€66.0 million), showing a €29.4 million year-on-year decrease. In addition to a decrease in Anttila's sales, profitability was weakened by the launch of Anttila's new logistics centre, the reform of K-citymarket's and Anttila's purchasing operations and the expansion of store network. The operating loss from Russian Intersport operations for August-December was €6 million, partly attributable to launching costs. Operating profit was €37.0 million (€103.4 million). The operating profit for the comparative period included €37.4 million of gains on the disposal of real estate.

Capital expenditure in the home and speciality goods trade in January-December was €61.8 million (€45.3 million).

October-December 2011

In the home and speciality goods trade, the net sales for October-December were €501 million (€501 million), representing the level of the comparative year. K-citymarket home and speciality goods, as well as Asko and Sotka increased their sales. Anttila's sales decreased from the comparative period.

The operating profit excluding non-recurring items of the home and speciality goods trade for October-December was €32.9 million (€45.7 million), showing a €12.7 million year-on-year decrease. Profitability performance was impacted by the reform of K-citymarket's and Anttila's purchasing operations and the expansion of store network, decreased clothes and sports goods sales due to the mild early winter months, and the costs arising from the launch of Intersport operations in Russia. Operating profit was €32.9 million (€45.6 million).

Capital expenditure in the home and speciality goods trade was €11.3 million (€28.4 million).

The acquisition of Intersport operations in Russia progressed according to plan. By 31 December 2011, 36 stores had transferred to the Kesko subsidiary. In the future, the objective is to double the Intersport store site network in Russia by the end of 2015.

Building and home improvement trade

	1-12/2011	1-12/2010	10-12/2011	10-12/2010
Net sales, € million	2,716	2,519	657	625
Operating profit excl. non-recurring items, € million	26.6	24.0	-4.4	-0.2
Operating profit as % of net sales excl. non-recurring items	1.0	1.0	-0.7	0.0
Capital expenditure, € million	109.8	78.2	20.6	44.9

Net sales, € million	1-12/2011	Change, %	10-12/2011	Change, %
Rautakesko Finland	1,233	+6.0	297	+5.4
K-rauta Sweden	215	+3.3	49	-0.2
Byggmakker Norway	592	+8.2	143	+7.0
Rautakesko Estonia	59	+13.6	15	+14.6
Rautakesko Latvia	53	+11.1	13	+16.5
Senukai Lithuania	249	+9.8	68	+8.8
Stroymaster Russia	237	+16.4	61	+15.2
OMA Belarus	80	+9.2	12	-46.9
Total	2,716	+7.8	657	+5.1

January-December 2011

In the building and home improvement trade, the net sales for January-December were €2,716 million (€2,519 million), up 7.8%. Sales performance and structure vary between countries and customer groups. There is also material variation between the sales performances of product lines, with strongest growth in building materials.

In January-December, net sales in Finland were €1,233 million (€1,163 million), an increase of 6.0%. The building and home improvement product lines contributed €892 million to the net sales in Finland, an increase of 5.9%. The agricultural supplies trade contributed €341 million to the net sales, up 6.4%.

In January-December, the net sales from foreign operations in the building and home improvement trade were €1,483 million (€1,357 million), an increase of 9.3%. The net sales from foreign operations increased by 12.6% in terms of local currencies. In Sweden, net sales were down by 2.2% in terms of kronas. In Norway, net sales increased by 5.3% in terms of krones. In Russia, net sales increased by 18.2% in terms of roubles. In Belarus, net sales were up by 101.6% in terms of roubles due to high inflation. Foreign operations contributed 54.6% to the net sales of the building and home improvement trade.

In January-December, the operating profit excluding non-recurring items of the building and home improvement trade was €26.6 million (€24.0 million), up €2.6 million compared to the previous year. The profit performance was impacted by the sales growth mainly deriving from basic building materials with low margins, the expansion of store network and by the costs related to the introduction and development of the international enterprise resource planning system. Operating profit was €26.3 million (€23.9 million).

In January-December, capital expenditure in the building and home improvement trade totalled €109.8 million (€78.2 million), of which 85.8% (54.4%) abroad. Capital expenditure in store sites was 89.3%.

During the year in Finland, a new K-rauta was opened in Kuopio and a K-rauta is being built in Kouvola and Ylivieska. A new Rautia was opened in Oulu and a new Rautia-K-maatalous in Turku and Suonenjoki. In Sweden, a K-rauta was opened in Haaparanta and a K-rauta is being built in Uppsala and Linköping. In Russia, a new K-rauta was opened in St. Petersburg and Moscow. One K-rauta is being built and two sites were acquired for new K-rauta stores in Moscow. In addition, several concept reforms and extensions were carried out in different countries.

The retail sales of the K-rauta and Rautia chains in Finland grew by 6.6% to €1,075 million (VAT 0%). The sales of Rautakesko B2B Service increased by 13.9%. As a whole, the growth rate of Rautakesko's building materials sales is estimated to have continued exceeding that of the market in Finland. The retail sales of the K-maatalous chain were €417 million (VAT 0%), up 10.2%.

October-December 2011

In the building and home improvement trade, the net sales for October-December were €657 million (€625 million), up 5.1%.

Net sales in Finland were €297 million (€281 million), an increase of 5.4%. The building and home improvement product lines contributed €203 million to the net sales in Finland, an increase of 6.8%. The agricultural supplies trade contributed €94 million to the net sales, up 2.4%.

The net sales from foreign operations in the building and home improvement trade were €360 million (€344 million), an increase of 4.8%. The net sales from foreign operations increased by 12.9% in terms of local currencies. In Sweden, net sales decreased by 1.0% in terms of kronas. In Norway, net sales increased by 3.1% in terms of krones. In Russia, net sales increased by 16.1% in terms of roubles, and in Belarus, by 105.5% in terms of roubles as a result of high inflation. Foreign operations contributed 54.9% to the net sales of the building and home improvement trade.

In October-December, the operating profit excluding non-recurring items of the building and home improvement trade was €-4.4 million (€-0.2 million), down €4.2 million. The decrease in the operating profit excluding non-recurring items from the comparative period is attributable to the expansion of store network and the costs related to the introduction and development of the international enterprise resource planning system. Operating profit was €-4.5 million (€-0.2 million).

Capital expenditure in the building and home improvement trade was €20.6 million (€44.9 million), of which 85.8% (28.9%) abroad. Capital expenditure in store sites represented 74.7% of the total capital expenditure.

The retail sales of the K-rauta and Rautia chains in Finland grew by 6.5% to €257 million (VAT 0%) in October-December. The sales of Rautakesko B2B Service increased by 12.9%. The retail sales of the K-maatalous chain were €116 million (VAT 0%), up 3.7%.

Car and machinery trade

	1-12/2011	1-12/2010	10-12/2011	10-12/2010
Net sales, € million	1,174	955	263	203
Operating profit excl. non-recurring items, € million	51.8	33.1	7.0	3.9
Operating profit as % of net sales excl. non-recurring items	4.4	3.5	2.6	1.9
Capital expenditure, € million	29.9	17.8	9.4	4.7

Net sales, € million	1-12/2011	Change, %	10-12/2011	Change, %
VV-Auto	849	+27.0	203	+34.2
Konekesko	326	+13.6	61	+16.9
Total	1,174	+23.0	263	+29.7

January-December 2011

In January-December, the net sales of the car and machinery trade were €1,174 million (€955 million), up 23.0%. The comparable net sales of the car and machinery trade grew by 26.0%. The discontinued Baltic grain and agricultural inputs trade has been eliminated from the comparable net sales.

VV-Auto's net sales for January-December were €849 million (€668 million), an increase of 27.0%. In Finland, new registrations of passenger cars increased by 12.6% and those of vans by 31.2% compared to the previous year. In January-December, the combined market share of passenger cars and vans imported by VV-Auto was 20.7% (19.3%). Volkswagen was the best selling passenger car and van brand in Finland.

Konekesko's net sales for January-December were €326 million (€287 million), up 13.6% compared to the previous year. Konekesko's comparable net sales, from which the discontinued Baltic grain and agricultural inputs trade has been eliminated, grew by 23.5%. Net sales in Finland were €219 million, up 13.3%. The net sales from Konekesko's foreign operations were €111 million, up 14.7%. Konekesko's comparable net sales growth was attributable to the good performance of the agricultural machinery trade in the Baltic countries.

In January-December, the operating profit excluding non-recurring items of the car and machinery trade was €51.8 million (€33.1 million), up €18.7 million compared to the previous year. The strong profit was attributable to excellent sales performance. The operating profit for January-December was €51.9 million (€33.9 million).

Capital expenditure in the car and machinery trade was €29.9 million (€17.8 million) in January-December.

October-December 2011

In October-December, the net sales of the car and machinery trade were €263 million (€203 million), up 29.7%.

VV-Auto's net sales for October-December were €203 million (€151 million), an increase of 34.2%. The net sales growth is attributable to market growth and an increase in the market share of passenger cars imported by VV-Auto. The combined market share of passenger cars and vans imported by VV-Auto was 21.6% (18.0%) in October-December.

Konekesko's net sales for October-December were €61 million (€52 million), up 16.9% compared to the previous year.

In October-December, the operating profit excluding non-recurring items of the car and machinery trade was €7.0 million (€3.9 million), up €3.1 million compared to the previous year. The strong profit was attributable to excellent sales performance. The operating profit for October-December was €7.0 million (€3.9 million).

Capital expenditure in the car and machinery trade was €9.4 million (€4.7 million) in October-December.

Changes in the Group composition
Kesko established a new subsidiary in Russia for Russian Intersport operations, in which Kesko Corporation's and Melovest Ltd's ownership interests are 80% and 20% respectively. The acquisition of Intersport operations in Russia was concluded on 24 August, 2011. By 31 December 2011, 36 stores had been transferred to the Kesko subsidiary.

Shares, securities market and Board authorisations
At the end of December 2011, the total number of Kesko Corporation shares was €98,645,042, of which 31,737,007, or 32.2%, were A shares and 66,908,035, or 67.8%, were B shares. At 31 December 2011, Kesko Corporation held 700,000 own B shares. Each A share entitles to ten (10) votes and each B share to one (1) vote. The company cannot vote with own shares held by it. At the end of December 2011, Kesko Corporation's share capital was €197,282,584. During the reporting period, the number of B shares was increased twice to correspond to share subscriptions with the option rights of the 2007 option scheme. The increases were made on 31 May 2011 (2,750 B shares) and on 1 August 2011 (1,000 B shares) and announced in a stock exchange notification on the same days. The subscribed shares were listed for public trading on NASDAQ OMX Helsinki (the Helsinki stock exchange) with the old B shares on 1 June 2011 and 2 August 2011. The combined share subscription price of €87,637.50 received by the company was recorded in the reserve of invested non-restricted equity.

The price of a Kesko A share quoted on NASDAQ OMX Helsinki was €34.70 at the end of 2010, and €24.82 at the end of December 2011, representing a decrease of 28.5%. Correspondingly, the price of a B share was €34.93 at the end of 2010, and €25.96 at the end of December 2011, representing a decrease of 25.7%. In January-December, the highest A share price was €36.00 and the lowest was €22.35. For B share, they were €35.97 and €22.21 respectively. In January-December, the Helsinki stock exchange (OMX Helsinki) All-Share index fell by 30.1%, the weighted OMX Helsinki CAP index by 28.0%, while the Consumer Staples Index was down by 24.3%.

At the end of 2011, the market capitalisation of A shares was €788 million, while that of B shares was €1,719 million, excluding the shares held by the parent company. The combined market capitalisation of A and B shares was €2,506 million, a decrease of €932 million from the end of 2010. In 2011, a total of 2.1 million A shares were traded on the Helsinki stock exchange at a total value of €62 million, while 63.3 million B shares were traded at a total value of €1,856 million. The Helsinki stock exchange performed 79% of all Kesko share trades in 2011. In addition, Kesko shares were traded on multilateral trading facilities, the most significant of which were Chi-X, BATS and Turquoise, performing 12%, 5% and 3% of all Kesko share trades respectively (source: NASDAQ OMX).

The company operates the 2007 stock option scheme for management and other key personnel, under which the share subscription period of 2007A option rights runs from 1 April 2010 to 30 April 2012, that of 2007B option rights from 1 April 2011 to 30 April 2013, and that of 2007C option rights will begin on 1 April 2012 and end on 30 April 2014. The 2007A and 2007B option rights have also been included on the official list of the Helsinki stock exchange since the beginning of the share subscription periods. A total of 221,662 2007A option rights were traded during the reporting period at a total value of €184,113. A total of 102,410 2007B option rights were traded during the reporting period at a total value of €1,081,731.

The Board of Directors was authorised by the Annual General Meeting of 4 April 2011 to acquire a total maximum of 1,000,000 own B shares. The authorisation is valid until 30 September 2012. The Annual General Meeting also authorised the Board to decide on the issuance of a maximum of 1,000,000 own B shares held by the company itself. The authorisation is valid until 30 June 2014. The prior authorisation 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 until 30 March 2012 is still valid. Authorisation has not been used. By virtue of the share acquisition authorisation, a total of 700,000 own B shares were acquired from the Helsinki stock exchange during the reporting period. The beginning of acquisition was announced on a stock exchange release on 28 April 2011. Each subsequent acquisition was announced in a stock exchange notification on the same day. No company shares have been issued by virtue of the share issue authorisations during the reporting period. Further information on the Board's authorisations is available at www.kesko.fi.

At the end of 2011, the number of shareholders was 41,215, which is 2,957 more than at the end of 2010. At the end of 2011, foreign ownership of all shares was 20%, and foreign ownership of B shares was 29%.

Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting period.

Main events during the reporting period

Merja Haverinen, M.Soc.Sc., was appointed Kesko Corporation's Senior Vice President for Corporate Communications and Responsibility starting from 1 April 2011. Paavo Moilanen, Senior Vice President for Corporate Communications and Responsibility, retired on 1 April 2011 in accordance with his service contract. (Stock exchange release on 4 February 2011)

Kesko's Annual General Meeting was held on 4 April 2011. President and CEO Matti Halmesmäki announced in his review that Kesko Food will open four large-scale grocery stores in Russia in 2012-2013. Kesko Food's objective is to achieve €500 million in net sales and a positive operating result in Russia by 2015. The capital expenditure is estimated at €300 million in 2011-2015. At the same time with new construction, Kesko Food will continue to explore business acquisition opportunities in both St. Petersburg and Moscow. (Stock exchange release on 4 April 2011)

On 4 April 2011, Kesko's Board of Directors decided to introduce a new share-based compensation plan for some 150 Kesko management personnel and other named key personnel, in which a maximum of 600,000 own B shares held by the company can be granted to people in the target group within a period of three years. The purpose of the plan is to promote Kesko's business operations and to increase the company's value by combining the objectives of the shareholders and the management personnel. The plan encourages its participants to commit to the Kesko Group and provides them with the opportunity to receive company shares, if the targets set in the share-based compensation plan are achieved. The share-based compensation plan includes three vesting periods, namely the calendar years 2011, 2012 and 2013. A commitment period of three calendar years following each vesting period is attached to the shares issued in compensation, during which shares must not be transferred. (Stock exchange release on 4 April 2011)

Kesko Corporation's Board of Directors agreed to extend the term of Kesko Corporation's Managing Director and Kesko Group's President and CEO Matti Halmesmäki until the end of May 2015, when Mr. Halmesmäki will be 63. According to the previous agreement, Mr. Halmesmäki's term would have expired in May 2012. (Stock exchange release on 25 May 2011)

Kesko signed agreements on the transfer of the Intersport licence in Russia to Kesko with Intersport International and Intersport CIS. According to the letter of intent signed on the same occasion, Kesko established a new company for Intersport operations in Russia together with Melovest, the owner of Intersport CIS. Melovest holds a 20% ownership interest in the new company. The acquisition of Intersport operations in Russia was concluded and the subsidiary established for the purpose started operating in August 2011. (Stock exchange releases on 3 June 2011 and 24 August 2011).

Jari Lind, Rautakesko Ltd's President and a member of Kesko's Corporate Management Board, resigned on 9 June 2011. During the recruitment process of a new president, Antti Ollila, Vice President for Rautakesko Commerce, was in charge ad interim of the duties of the Rautakesko President. In consequence of Lind's resignation, his membership of Kesko's Corporate Management Board ended. (Stock exchange release on 9 June 2011)

Kesko's Corporate Management Board was revised. Arja Talma, 49, M.Sc. (Econ.), eMBA, was appointed President of Rautakesko Ltd and Corporate Management Board member responsible for Kesko's building and home improvement trade with effect from 1 November 2011. Minna Kurunsaari, 46, LL.M., was appointed Kesko's Corporate Management Board member responsible for the home and speciality goods trade with effect from 1 December 2011. Minna Kurunsaari's responsibility area will also include Kesko's electronic marketing and services projects. Jukka Erlund, 37, M.Sc. (Econ.), eMBA, was appointed Kesko Corporation's Chief Financial Officer (CFO) and Kesko's Corporate Management Board member with effect from 1 November 2011. (Stock exchange release on 26 October 2011)

Resolutions of the 2011 Annual General Meeting and decisions of the Board's organisational meeting

Kesko Corporation's Annual General Meeting, held on 4 April 2011, adopted the financial statements for 2010 and discharged the Board members and the Managing Director from liability. The General Meeting also resolved to distribute €1.30 per share as dividends, or a total of €128,233,679.60, as proposed by the Board of Directors. The dividend pay date was 14 April 2011. The General Meeting also resolved to leave the number of Board members 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 proposals to authorise the Board to acquire a total maximum of 1,000,000 own B shares, and to issue a total maximum of 1,000,000 own B shares held by the company itself. The General Meeting also approved the Board's proposal to decide in 2011 on the donation of a total maximum of €300,000 for charitable or corresponding purposes.

The organisational meeting of Kesko Corporation's Board of Directors, held after the Annual General Meeting, decided to maintain the compositions of the Board's Audit Committee and Remuneration Committee unchanged.

More detailed information on the resolutions of the 2011 Annual General Meeting and on the decisions of the Board's organisational meeting was given in stock exchange releases on 4 April 2011.

Responsibility

Kesko was awarded the highest score in the 'Consumer Staples' sector in the Nordic Carbon Disclosure Climate Leadership Index in October.

In October, Kesko was included in the STOXX Global ESG Leaders index family, which represents the leading global companies in terms of environmental, social and governance criteria.

Anttila's new logistics centre gained ISO 14001 environmental certification in November.

Kesko's 2010 Corporate Responsibility Report was chosen Finland's best and was ranked the best also by students in the Corporate Responsibility Reporting Competition in November.

Kesko participated in the Good Christmas Spirit collection to raise funds for vouchers for low-income families with children in Finland. The Board donated €35,000 to the collection.

Risk management

Kesko's risk management is proactive and an integral part of management and day-to-day activities. The objective of risk management is to ensure the delivery of customer promises in the Kesko Group, profit performance, dividend payment capacity, shareholder value, the implementation of responsible operating practices and the continuity of operations.

Risk management in the Kesko Group is guided by the risk management policy confirmed by the Board of Directors. The policy defines the objectives and principles, organisation, responsibilities and practices of risk management in the Kesko Group. The management of financial risks is based on the Group's finance policy, confirmed by Kesko's Board of Directors. The business division and Group managements are responsible for the execution of risk management.

The Kesko Group applies a business-oriented and comprehensive approach to risk assessment and management. This means that key risks are systematically identified, assessed, managed, monitored and reported at the Group, division, company and unit levels in all operating countries.

Kesko has a uniform risk assessment and reporting system. Risk identification is based on business objectives and opportunities and the defined risk appetite. Risks are prioritised on the basis of their significance by assessing the impact and probability of their materialisation and the level of risk management. When assessing the impact of materialisation, the impacts on reputation, employees' wellbeing and the environment are considered in addition to financial impacts.

In connection with the strategy process, the divisions assess the risks and opportunities concerning each strategic period. Near-future risks are identified and assessed in accordance with the rolling planning framework. Risk assessment also covers the risks concerning each division's subsidiaries and significant projects.

A division's risk assessment, which includes risk management responses, responsible persons and schedules, is considered by the division's management team or the division Board quarterly prior to the disclosure of the interim report. The Group functions assess the risks concerning their responsibility areas at least once a year.

Risks and management responses are reported in accordance with Kesko's reporting responsibilities. The divisions report on risks and changes in risks to the Group's risk management function on a quarterly basis. Risks are discussed by the risk reporting team including representatives of the divisions and the Group functions. On that basis, the Group's risk management function prepares the Group's risk map presenting the most significant risks and uncertainties and their management.

The Group's risk map is reported to the Kesko Board's Audit Committee in connection with considering the interim reports and the financial statements. The Chair of the Audit Committee reports on risk management to the Board as part of the Audit Committee's report. The Kesko Board considers the Kesko Group's most significant risks and uncertainties and their management responses, and assesses the efficiency and performance of risk management at least once a year. The most significant risks and uncertainties are reported to the market by the Board in the financial statements, and any material changes in them in the interim reports.

The following describes the risks and uncertainties assessed as significant.

Significant risks and uncertainties

The financial market falling into crisis and the uncertainty prevailing in the euro zone, increased taxes and public payments resulting from the indebtedness of the public sector, coupled with increasing unemployment are weakening the purchasing power and appetite for capital expenditure, as well as negatively impacting consumer confidence and demand especially in the home and speciality goods trade, the building and home improvement trade and the car and machinery trade.

In Russia, Kesko is strongly expanding its business operations in the building and home improvement trade and the sports trade and will open its first food stores. With regard to expansion, it is critical to succeed in the acquisition and building of good store sites, in the development of store concepts, in purchasing and logistics, and in the recruitment of key personnel. The country risks in Russia, such as corruption, the unpredictability of officials and rapid changes in legislation and the application of laws, as well as sudden changes in the operating environment can delay the expansion and complicate operating activities.

E-commerce is becoming increasingly popular, international e-commerce increases consumers' alternatives and buying decisions are increasingly often made based on online information. The achievement of objectives requires both traditional and online concepts attractive to customers, a multi-channel approach and customer communications to support it.

The execution of changes in business operations requires increasingly sophisticated resource planning and information systems. Failure in the definition of changes, technology selection, change project management and implementation would delay the execution of changes in business operations.

The trading sector is characterised by increasingly complicated and long supply chains and a dependency on information systems, data communications and external service providers. Failures in information and payment systems or in other parts of the supply chain can cause significant losses in sales and weaken customer satisfaction.

For the purpose of increasing market share, good store sites are a key competitive factor. The acquisition of store sites can be delayed by zoning and permit procedures and the availability and pricing of sites. Considerable amounts of capital or lease liabilities are tied up in store properties for years. Resulting from changes in the market situation, there is a risk that a store site becomes unprofitable and that operations are discontinued while long-term liabilities remain.

Increasing regulations restricting competitive trading conditions are being imposed also by the European Union. Such a development would weaken the trading sector's possibilities to serve customers and operate efficiently.

A failure in product safety control or in the quality assurance of the supply chain can result in financial losses, the loss of customer confidence or, in the worst case, a health hazard to customers.

In divisions strongly dependent on individual principals and suppliers, such as the car and machinery trade, ownership arrangements and changes in a principal's or supplier's strategy concerning product selections, pricing and distribution channel solutions can mean weakened competitiveness, decreased sales, or loss of business.

Crimes are increasingly committed through data networks and crime is becoming more professional. Failure especially in the protection of payment transactions and personal information can cause losses, claims for damages and endanger reputation. There is a risk that controls against such crime are not sufficient.

Different aspects of responsibility are increasingly important for customers. Possible failures of responsibility would weaken Kesko's reputation. Kesko's challenges in responsibility work include communicating its responsibility policies to suppliers, retailers and customers, and ensuring responsibility in the supply chain.

Non-compliance with legislation and agreements can result in fines, compensation for damages and other financial losses, and a loss of confidence and reputation.

Kesko's objective is to produce and publish reliable and timely information. If some information published by Kesko proved to be incorrect or communications failed to meet regulations, it can result in losing investor and other stakeholder confidence and in possible sanctions.

Accidents, natural phenomena and epidemics can cause damages or business interruptions which cannot be prevented.

Other risks and uncertainties relating to profit performance are described in the Group's future outlook.

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 accounting period (1/2012-12/2012) in comparison with the 12 months preceding the accounting period (1/2011-12/2011).

Resulting from the problems of European economies and financial markets, the total production performance and consumer confidence have weakened, which is why significant uncertainties are associated with the outlook for consumer demand. In addition, cuts in public finances and tightening taxation may have a negative impact on the development of purchasing power and consumer demand.

The steady growth in the grocery trade is expected to continue. Growth in the home and speciality goods trade and the building and home improvement trade is expected to even out in line with the overall consumer demand. In the car and machinery trade, the market is expected to turn down, which is partly attributable to the Finnish car tax increase effective 1 April 2012.

The Kesko Group's net sales are expected to grow during the next twelve months. Owing to the uncertainty about economic development and consumer demand, and the costs involved in the expansion of the store site network as well as expansion of business operations in Russia, we are prepared for the 2012 operating profit excluding non-recurring items to be lower than the 2011 operating profit excluding non-recurring items.

Proposal for profit distribution
The parent's distributable profits are €1,101,552,277.88, of which the profit for the financial year is €100,553,189.98.

The Board of Directors proposes to the Annual General Meeting to be held on 16 April 2012 that the distributable profits be used as follows:

A dividend of €1.20 per share is paid on shares held outside the company at the date of dividend distribution. No dividend is paid on own shares held by the Company at the record date of dividend distribution.

At the date of the proposal for distributions of profits, 1 February 2012, a total of 97,945,042 shares were held outside the Company, amounting to a total dividend of €117,534,050.40.

Annual General Meeting
The Board of Directors decided to convene the Annual General Meeting at the Helsinki Fair Centre on 16 April 2012 at 13.00. Kesko Corporation will publish a notice of the Annual General Meeting at a later date.

Annual Report 2011 and Corporate Governance Statement
Kesko will publish the 2011 Annual Report, which contains the report by Kesko's Board of Directors and the financial statements for 2011, and a separate Corporate Governance Statement on week 12 on its website at www.kesko.fi.

Helsinki, 1 February 2012
Kesko Corporation
Board of Directors

The information in the financial statements release is unaudited.

Further information is available from Jukka Erlund, Senior Vice President, CFO, telephone +358 1053 22113, and Eva Kaukinen, Vice President, Corporate Controller, telephone +358 1053 22338. A Finnish-language webcast from the media and analyst briefing on the financial statements can be accessed at www.kesko.fi at 11.00. An English-language web conference on the financial statements will be held today at 14.30 (Finnish time). The web conference login is available at www.kesko.fi.

Kesko Corporation's interim report for January-March will be released on 26 April 2012. 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.

KESKO CORPORATION

Merja Haverinen
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's performance indicators
Net sales by segment
Operating profit by segment
Operating profit excl. non-recurring items by segment
Operating margin excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Personnel average and at 31 December
Acquisitions
Group's contingent liabilities
Calculation of performance indicators
K-Group's retail and B2B sales

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

ATTACHMENTS:

Accounting policies

This financial statements release 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 2010, with the exception of the following changes due to the adoption of new and revised IFRS standards and IFRIC interpretations.

IAS 24 (revised), Related Party Disclosures

IAS 32 (amendment), Financial Instruments: Presentation - Classification of Rights Issues

IFRIC 14 (amendment), Prepayments of a Minimum Funding Requirement

IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments

Annual amendments to the IFRS (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.

Excise taxes have been transferred from other operating expenses to the cost of goods sold. The change has been applied retrospectively.

The Group accounts for real estate company acquisitions as acquisitions of tangible assets. Previously, real estate company acquisitions were accounted for as business combinations in accordance with IFRS 3. Adjustments related to acquisitions have been recognised retrospectively.

Consolidated income statement (€ million), condensed
	1-12/ 2011	1-12/ 2010	Change%	10-12/ 2011	10-12/ 2010	Change%
Net sales	9,460	8,777	7.8	2,481	2,310	7.4
Cost of goods sold	-8,163	-7,547	8.2	-2,126	-1,964	8.2
Gross profit	1,297	1,230	5.5	356	346	2.9
Other operating income	705	699	0.9	188	179	4.9
Staff cost	-571	-521	9.6	-156	-145	7.8
Depreciation and impairment charges	-125	-121	3.2	-35	-32	7.3
Other operating expenses	-1,026	-981	4.6	-280	-265	5.7
Operating profit	281	307	-8.5	73	83	-12.1
Interest income and other finance income	22	23	-2.3	6	7	-17.2
Interest expense and other finance costs	-18	-15	16.9	-5	-3	33.3
Exchange differences	-3	-1	(..)	-1	1	(..)
Income from associates	1	0	(..)	0	0	(..)
Profit before tax	282	312	-9.7	74	87	-15.2
Income tax	-85	-97	-11.9	-19	-25	-24.1
Profit for the period	197	216	-8.7	55	63	-11.7

Attributable to
Owners of the parent	182	205	-11.2	50	59	-14.5
Non-controlling interests	15	11	37.4	5	4	30.2

Earnings per share (€) for profit attributable to equity holders of the parent

Basic	1.85	2.08	-11.0	0.51	0.60	-14.3
Diluted	1.84	2.06	-11.1	0.51	0.59	-14.4

Consolidated statement of comprehensive income (€ million)
	1-12/ 2011	1-12/ 2010	Change%	10-12/ 2011	10-12/ 2010	Change%
Net profit for the period	197	216	-8.7	55	63	-11.7
Other comprehensive income
Exchange differences on translating foreign operations	-17	5	(..)	2	2	-8.0
Adjustment for hyperinflation	6	-	(..)	6	-	(..)
Cash flow hedge revaluation	-15	21	(..)	-3	13	(..)
Revaluation of available-for-sale financial assets	0	1	-88.3	0	0	(..)
Other items	0	-1	-83.5	-	-	-
Tax relating to other comprehensive income	4	-6	(..)	1	-3	(..)
Total other comprehensive income for the period, net of tax	-22	20	(..)	6	11	-46.4
Total comprehensive income for the period	175	236	-26.0	61	74	-16.9

Attributable to
Owners of the parent	170	224	-24.1	52	69	-25.1
Non-controlling interests	4	12	-62.5	9	5	(..)

(..) Change over 100%

Consolidated statement of financial position (€ million), condensed
	31.12.2011	31.12.2010	Change, %
ASSETS
Non-current assets
Tangible assets	1,490	1,261	18.2
Intangible assets	189	180	5.4
Investments in associates and other financial assets	69	61	12.4
Loans and receivables	80	72	11.6
Pension assets	200	186	7.7
Total	2,029	1,759	15.3

Current assets
Inventories	868	757	14.6
Trade receivables	700	620	13.0
Other receivables	218	183	19.6
Financial assets at fair value through profit or loss	98	242	-59.6
Available-for-sale financial assets	186	549	-66.2
Cash and cash equivalents	84	56	49.8
Total	2,153	2,406	-10.5
Non-current assets held for sale	8	1	(..)

Total assets	4,190	4,167	0.5

	31.12.2011	31.12.2010	Change, %
EQUITY AND LIABILITIES
Equity	2,175	2,152	1.1
Non-controlling interests	58	59	-0.3
Total equity	2,233	2,210	1.0

Non-current liabilities
Interest-bearing liabilities	210	235	-10.6
Non-interest-bearing liabilities	18	5	(..)
Deferred tax liabilities	91	87	4.5
Pension obligations	2	2	3.9
Provisions	10	12	-11.1
Total	332	340	-2.4

Current liabilities
Interest-bearing liabilities	190	242	-21.5
Trade payables	886	838	5.7
Other non-interest-bearing liabilities	526	507	3.6
Provisions	24	29	-18.6
Total	1,625	1,616	0.5

Total equity and liabilities	4,190	4,167	0.5

(..) Change over 100%

Consolidated statement of changes in equity (€ million)

	Share capital	Issue of share capital	Share premi- um	Other reser- ves	Cur- rency trans- lation differ- ences	Revalu- ation sur- plus	Re- tained earn- ings	Non- cont- rol- ling inte- rests	Total
Balance at 1.1.2010	197	0	194	243	-7	-3	1,381	64	2,070
Shares subscribed with options	1		4						4
Option cost							5	0	5
Dividends							-89	-18	-106
Other changes							1	0	1
Net profit for the period							205	11	216
Other comprehensive income
Exchange differences on translating foreign operations				0	4		0	1	5
Cash flow hedge revaluation						21			21
Revaluation of available-for-sale financial assets						1			1
Other items							-1		-1
Tax relating to other comprehensive income						-6			-6
Total other comprehensive income				0	4	16	-1	1	20
Balance at 31.12.2010	197	0	198	243	-3	14	1,503	59	2,210

Balance at 1.1.2011	197	0	198	243	-3	14	1,503	59	2,210
Shares subscribed with options				0					0
Option cost							3	0	3
Own shares							-23	0	-23
Dividends							-128	-4	-133
Other changes				0	0		0	0	0
Net profit for the period							182	15	197
Other comprehensive income
Exchange differences on translating foreign operations				0	-1			-17	-17
Adjustment for hyperinflation							1	6	6
Cash flow hedge revaluation						-15			-15
Revaluation of available-for-sale financial assets						0			0
Other items							0		0
Tax relating to other comprehensive income						4			4
Total other comprehensive income				0	-1	-11	0	-11	-22
Balance at 31.12.2011	197	0	198	243	-3	3	1,537	58	2,233

Consolidated cash flow statement (€ million), condensed

	1-12/ 2011	1-12/ 2010	Change%	10-12/ 2011	10-12/ 2010	Change%
Cash flow from operating activities
Profit before tax	282	312	-9.7	74	87	-15.2
Planned depreciation	125	116	7.3	35	31	13.3
Finance income and costs	-1	-6	-88.2	-1	-5	-83.7
Other adjustments	-6	97	(..)	-28	116	(..)

Change in working capital
Current non-interest-bearing trade and other receivables, increase (-)/ decrease (+)	-89	-15	(..)	-42	17	(..)
Inventories increase (-)/ decrease (+)	-119	-82	44.2	-72	-66	8.5
Current non-interest-bearing liabilities, increase (+)/decrease (-)	127	153	-17.1	109	51	(..)

Financial items and tax	-103	-136	-24.4	-29	-63	-53.5
Net cash generated from operating activities	216	438	-50.8	47	169	-72.5

Cash flow from investing activities
Capital expenditure	-449	-367	22.3	-112	-203	-44.7
Sales of fixed assets	8	124	-93.4	2	8	-75.0
Increase of non-current receivables	0	-	(..)	0	-	(..)
Decrease of non-current receivables	-	4	(..)	-	2	(..)
Net cash used in investing activities	-441	-240	84.1	-110	-193	-42.9

Cash flow from financing activities
Increase (+)/ decrease (-) in interest-bearing liabilities	-58	39	(..)	-20	24	(..)
Increase (-)/decrease (+) in current interest-bearing receivables	-37	11	(..)	-39	1	(..)
Dividends paid	-133	-106	25.1	-1	-	(..)
Equity increase	0	4	-97.9	0	-	(..)
Acquisition of own shares	-23	-	(..)	1	-	(..)
Increase (-)/ decrease (+) in short-term money market investments	199	-114	(..)	36	-16	(..)
Other items	1	-15	(..)	0	-3	(..)
Net cash used in financing activities	-51	-181	-71.7	-22	6	(..)

Change in cash and cash equivalents	-277	18	(..)	-86	-18	(..)

Cash and cash equivalents and current portion of available-for-sale financial assets at 1 Jan.	509	491	3.7	315	527	-40.2
Currency translation difference adjustment and revaluation	-2	0	(..)	1	0	(..)
Cash and cash equivalents and current portion of available-for-sale financial assets at 31 Dec.	231	509	-54.7	231	509	-54.7

(..) Change over 100%

Group's performance indicators
	1-12/2011	1-12/2010	Change, pp
Return on capital employed, %	13.2	16.0	-2.8
Return on capital employed excl. non-recurring items, %	13.1	14.0	-0.9
Return on equity, %	8.9	10.1	-1.2
Return on equity excl. non-recurring items, %	8.8	8.7	0.1
Equity ratio, %	53.9	53.5	0.4
Gearing, %	1.5	-16.8	18.2
			Change, %
Capital expenditure, € million	425.4	325.3	30.8
Capital expenditure, % of net sales	4.5	3.7	21.3
Earnings per share, basic, €	1.85	2.08	-11.0
Earnings per share, diluted, €	1.84	2.06	-11.1
Earnings per share excl. non-recurring items, basic, €	1.84	1.78	3.1
Cash flow from operating activities, € million	216	438	-50.8
Cash flow from investing activities, € million	-441	-240	84.1
Equity/share, €	22.20	21.81	1.8
Personnel, average	18,960	18,215	4.1
(..) Change over 100%

Group's performance indicators by quarter	1-3/ 2010	4-6/ 2010	7-9/ 2010	10-12/ 2010	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011
Net sales, € million	1,958	2,279	2,231	2,310	2,103	2,472	2,404	2,481
Change in net sales, %	-3.0	6.4	4.6	7.3	7.4	8.5	7.8	7.4
Operating profit, € million	20.9	79.0	123.9	82.8	35.7	83.9	88.2	72.8
Operating margin, %	1.1	3.5	5.6	3.6	1.7	3.4	3.7	2.9
Operating profit excl. non-recurring items, € million	20.9	78.1	88.7	80.5	34.9	83.3	89.2	71.5
Operating margin excl. non-recurring items, %	1.1	3.4	4.0	3.5	1.7	3.4	3.7	2.9
Finance income/costs, € million	0.8	-0.2	0.8	4.6	-0.6	0.3	0.3	0.8
Profit before tax, € million	21.9	78.7	124.5	87.3	36.1	84.0	88.0	74.0
Profit before tax, %	1.1	3.5	5.6	3.8	1.7	3.4	3.7	3.0
Return on capital employed, %	4.4	16.1	26.4	17.5	7.2	16.0	16.4	12.8
Return on capital employed excl. non-recurring items, %	4.4	15.9	18.9	17.0	7.0	15.9	16.6	12.5
Return on equity, %	2.9	10.6	16.1	11.5	4.5	10.6	10.9	10.0
Return on equity excl. non-recurring items, %	2.9	10.5	11.1	11.2	4.4	10.6	11.1	9.8
Equity ratio, %	51.3	51.4	53.4	53.5	54.4	52.1	54.0	53.9
Capital expenditure, € million	42.0	45.7	35.9	201.6	64.1	130.5	126.3	104.5
Earnings per share, diluted, €	0.15	0.51	0.81	0.59	0.25	0.55	0.53	0.51
Equity per share, €	19.69	20.30	21.11	21.81	22.04	21.21	21.66	22.20

Segment information

Net sales by segment (€ million)	1-12/ 2011	1-12/ 2010	Change %	10-12/ 2011	10-12/ 2010	Change %

Food trade, Finland	4,182	3,896	7.3	1,108	1,022	8.4
Food trade, other countries*	-	-	-	-	-	-
Food trade total	4,182	3,896	7.3	1,108	1,022	8.4
- of which intersegment trade	168	162	4.1	44	40	10.4

Home and speciality goods trade, Finland	1,541	1,553	-0.8	490	497	-1.4
Home and speciality goods trade, other countries*	23	15	50.3	11	4	(..)
Home and speciality goods trade total	1,564	1,569	-0.3	501	501	0.0
- of which intersegment trade	20	23	-15.8	7	7	-6.4

Building and home improvement trade, Finland	1,233	1,163	6.0	297	281	5.4
Building and home improvement trade, other countries*	1,483	1,357	9.3	360	344	4.8
Building and home improvement trade total	2,716	2,519	7.8	657	625	5.1
- of which intersegment trade	12	0	(..)	3	0	(..)

Car and machinery trade, Finland	1,064	859	23.8	247	190	29.9
Car and machinery trade, other countries*	110	96	15.4	16	13	26.4
Car and machinery trade total	1,174	955	23.0	263	203	29.7
- of which intersegment trade	1	0	(..)	0	0	-67.4

Common operations and eliminations	-176	-162	8.2	-48	-42	14.9
Finland total	7,844	7,309	7.3	2,094	1,949	7.4
Other countries total*	1,616	1,468	10.1	388	361	7.5
Group total	9,460	8,777	7.8	2,481	2,310	7.4

* Net sales in countries other than Finland.

(..) Change over 100%

Operating profit by segment (€ million)	1-12/ 2011	1-12/ 2010	Change	10-12/ 2011	10-12/ 2010	Change

Food trade	173.7	158.4	15.4	40.0	37.2	2.8
Home and speciality goods trade	37.0	103.4	-66.4	32.9	45.6	-12.7
Building and home improvement trade	26.3	23.9	2.4	-4.5	-0.2	-4.3
Car and machinery trade	51.9	33.9	18.0	7.0	3.9	3.1
Common operations and eliminations	-8.3	-12.8	4.4	-2.6	-3.7	1.1
Group total	280.6	306.7	-26.1	72.8	82.8	-10.0

Operating profit excl. non-recurring items by segment (€ million)	1-12/ 2011	1-12/ 2010	Change	10-12/ 2011	10-12/ 2010	Change

Food trade	172.2	160.1	12.1	38.6	36.8	1.8
Home and speciality goods trade	36.6	66.0	-29.4	32.9	45.7	-12.7
Building and home improvement trade	26.6	24.0	2.6	-4.4	-0.2	-4.2
Car and machinery trade	51.8	33.1	18.7	7.0	3.9	3.1
Common operations and eliminations	-8.3	-15.0	6.7	-2.6	-5.7	3.1
Group total	278.9	268.1	10.8	71.5	80.5	-9.0

Operating margin excl. non-recurring items by segment	1-12/ 2011	1-12/ 2010	Changepp	10-12/ 2011	10-12/ 2010	Changepp

Food trade	4.1	4.1	0.0	3.5	3.6	-0.1
Home and speciality goods trade	2.3	4.2	-1.9	6.6	9.1	-2.5
Building and home improvement trade	1.0	1.0	0.0	-0.7	0.0	-0.6
Car and machinery trade	4.4	3.5	0.9	2.6	1.9	0.7
Group total	2.9	3.1	-0.1	2.9	3.5	-0.6

Capital employed by segment, cumulative average (€ million)	1-12/ 2011	1-12/ 2010	Change	10-12/ 2011	10-12/ 2010	Change

Food trade	601	590	11	661	543	118
Home and speciality goods trade	437	431	6	472	424	48
Building and home improvement trade	696	627	69	709	609	100
Car and machinery trade	158	168	-11	184	154	30
Common operations and eliminations	236	101	135	256	167	90
Group total	2,129	1,918	211	2,282	1,897	385

Return on capital employed excl. non- recurring items by segment, %	1-12/ 2011	1-12/ 2010	Changepp	10-12/ 2011	10-12/ 2010	Changepp

Food trade	28.6	27.1	1.5	23.4	27.1	-3.7
Home and speciality goods trade	8.4	15.3	-6.9	27.9	43.0	-15.1
Building and home improvement trade	3.8	3.8	0.0	-2.5	-0.1	-2.4
Car and machinery trade	32.8	19.6	13.2	15.2	10.0	5.1
Group total	13.1	14.0	-0.9	12.5	17.0	-4.4

Capital expenditure by segment (€ million)	1-12/ 2011	1-12/ 2010	Change	10-12/ 2011	10-12/ 2010	Change

Food trade	221	117	104	62	57	5
Home and speciality goods trade	62	45	17	11	28	-17
Building and home improvement trade	110	78	32	21	45	-24
Car and machinery trade	30	18	12	9	5	5
Common operations and eliminations	2	67	-64	1	66	-65
Group total	425	325	100	105	202	-97

Segment information by quarter

Net sales by segment (€ million)	1-3/ 2010	4-6/ 2010	7-9/ 2010	10-12/ 2010	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011
Food trade	912	976	986	1,022	948	1,077	1,049	1,108
Home and speciality goods trade	355	334	378	501	348	339	376	501
Building and home improvement trade	495	712	687	625	570	757	731	657
Car and machinery trade	236	298	218	203	279	342	290	263
Common operations and eliminations	-40	-41	-39	-42	-42	-43	-42	-48
Group total	1,958	2,279	2,231	2,310	2,103	2,472	2,404	2,481

Operating profit by segment (€ million)	1-3/ 2010	4-6/ 2010	7-9/ 2010	10-12/ 2010	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011
Food trade	31.7	42.2	47.3	37.2	42.1	45.9	45.7	40.0
Home and speciality goods trade	0.1	7.0	50.6	45.6	-7.4	2.8	8.7	32.9
Building and home improvement trade	-13.8	17.9	19.9	-0.2	-9.1	18.8	21.0	-4.5
Car and machinery trade	6.4	15.0	8.6	3.9	12.2	19.7	13.0	7.0
Common operations and eliminations	-3.4	-3.2	-2.5	-3.7	-2.2	-3.3	-0.2	-2.6
Group total	20.9	79.0	123.9	82.8	35.7	83.9	88.2	72.8

Operating profit excl. non-recurring items by segment (€ million)	1-3/ 2010	4-6/ 2010	7-9/ 2010	10-12/ 2010	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011
Food trade	31.7	42.1	49.5	36.8	41.4	45.8	46.4	38.6
Home and speciality goods trade	0.1	7.0	13.2	45.7	-7.4	2.4	8.7	32.9
Building and home improvement trade	-13.8	17.9	20.0	-0.2	-9.1	18.8	21.3	-4.4
Car and machinery trade	6.4	14.1	8.7	3.9	12.2	19.6	13.0	7.0
Common operations and eliminations	-3.4	-3.1	-2.8	-5.7	-2.2	-3.3	-0.2	-2.6
Group total	20.9	78.1	88.7	80.5	34.9	83.3	89.2	71.5

Operating margin excl. non-recurring items by segment	1-3/ 2010	4-6/ 2010	7-9/ 2010	10-12/ 2010	1-3/ 2011	4-6/ 2011	7-9/ 2011	10-12/ 2011
Food trade	3.5	4.3	5.0	3.6	4.4	4.3	4.4	3.5
Home and speciality goods trade	0.0	2.1	3.5	9.1	-2.1	0.7	2.3	6.6
Building and home improvement trade	-2.8	2.5	2.9	0.0	-1.6	2.5	2.9	-0.7
Car and machinery trade	2.7	4.7	4.0	1.9	4.4	5.7	4.5	2.6
Group total	1.1	3.4	4.0	3.5	1.7	3.4	3.7	2.9

Personnel average and at 31 Dec.

Personnel average by segment	1-12/2011	1-12/2010	Change
Food trade	2,706	2,881	-175
Home and speciality goods trade	5,754	5,418	336
Building and home improvement trade	8,874	8,379	495
Car and machinery trade	1,206	1,138	67
Common operations	420	399	21
Group total	18,960	18,215	745

Personnel at 31.12.* by segment	2011	2010	Change
Food trade	2,984	3,106	-122
Home and speciality goods trade	8,765	7,887	878
Building and home improvement trade	9,895	9,493	402
Car and machinery trade	1,250	1,205	45
Common operations	481	433	48
Group total	23,375	22,124	1,251

* total number incl. part-time employees

Acquisitions

On 3 June 2011, Kesko Corporation signed an agreement on the transfer of the Intersport licence in Russia to Kesko with Intersport International Corporation and OOO Intersport CIS. Kesko established a new subsidiary in Russia for Intersport operations in Russia, in which Kesko Corporation's and Melovest Ltd's ownership interests are 80% and 20% respectively. On 24 August, 2011, the acquisition of Intersport operations in Russia was concluded and by 31 December 2011, 36 sports stores had been transferred to OOO Johaston. The aggregate cost of acquisition was €21.8 million.

Over a four month period, OOO Johaston contributed net sales of €7 million and an operating loss of €6 million to the Kesko Group. The impact of OOO Johaston on the Group's net sales and operating profit for the whole period cannot be reliably estimated, because OOO Johaston's business component was composed only as a result of an acquisition.

The acquisition has been accounted for in accordance with the revised IFRS 3 standard effective 1 July 2009.

€ million
Cash consideration	21.8
Fair value of net assets acquired	21.8

Analysis of net assets acquired

€ million	Fair value
Intangible rights	7.2
Property, plant and equipment	11.4
Inventories	4.5
Deferred tax	-1.4
Net assets acquired	21.8


Cash consideration	21.8
Remaining consideration	1.2
Cash outflow from acquisition	20.6

Group's commitments (€ million)
	31.12.2011	31.12.2010	Change,%

Own commitments	182	276	-34.0
For shareholders	0	0	0.0
For others	8	6	23.4
Lease liabilities for machinery and equipment	26	22	18.2
Lease liabilities for real estate	2,303	2,322	-0.8

Own commitments do not include lease liabilities.

Liabilities arising from
derivative instruments
			Fair value
Values of underlying instruments at 31 December	31.12.2011	31.12.2010	31.12.2011
Interest rate derivatives
Interest rate swaps	208	205	4.05
Currency derivatives
Forward and future contracts	358	224	-3.39
Currency swaps	100	100	-7.68
Commodity derivatives
Electricity derivatives	32	63	-3.38

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 excl. non-recurring items, %	Operating profit excl. non-recurring items x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for the reporting period

Return on equity, %	(Profit/loss before tax - income tax) x 100 / Shareholders' equity

Return on equity excl. non-recurring items, %	(Profit/loss adjusted for non-recurring items before tax - income tax adjusted for the tax effect of non-recurring items) x 100 / Shareholders' equity

Equity ratio, %	Shareholders' equity x 100 / (Balance sheet total - prepayments received)

Earnings/share, diluted	(Profit/loss - non-controlling interests) / Average number of shares adjusted for the dilutive effect of options

Earnings/share, basic	(Profit/loss - non-controlling interests) / Average number of shares

Earnings/share excl. non-recurring items, basic	(Profit/loss adjusted for non-recurring items - non-controlling interests)/Average number of shares

Equity/share	Equity attributable to equity holders of the parent / Basic number of shares at balance sheet date

Gearing, %	Interest-bearing net liabilities x 100 / Shareholders' equity

K-Group's retail and B2B sales, VAT 0% (preliminary data):

	1.1.-31.12.2011		1.10.-31.12.2011
K-Group's retail and B2B sales	€ million	Change, %	€ million	Change, %

K-Group's food trade
K-food stores, Finland	4,581	5.5	1,207	4.6
Kespro	732	7.4	186	9.4
Food trade total	5,314	5.7	1,393	5.2

K-Group's home and speciality goods trade
Home and speciality goods stores, Finland	1,673	-1.4	515	-3.9
Home and speciality goods stores, other countries	23	51.5	11	(..)
Home and speciality goods trade total	1,697	-0.9	525	-2.6

K-Group's building and home improvement trade
K-rauta and Rautia	1,075	6.6	257	6.5
Rautakesko B2B Service	226	13.9	63	12.9
K-maatalous	417	10.2	116	3.7
Finland total	1,718	8.4	435	6.6
Building and home improvement stores, other Nordic countries	1,159	8.0	299	8.9
Building and home improvement stores, Baltic countries	363	10.8	97	10.6
Building and home improvement stores, other countries	317	14.7	73	-2.7
Building and home improvement trade total	3,557	9.0	904	6.9

K-Group's car and machinery trade
VV-Autotalot	422	24.6	108	29.4
VV-Auto, import	447	28.1	101	36.4
Konekesko, Finland	217	12.4	44	14.8
Finland total	1,086	23.3	253	29.1
Konekesko, Baltic countries	114	17.6	17	28.3
Car and machinery trade total	1,200	22.7	270	29.1

Finland total	9,791	6.6	2,596	5.4
Other countries total	1,976	10.4	496	9.3
Retail and B2B sales total	11,767	7.2	3,092	6.0

(..) Change over 100%

Kesko's sales increased in December by 7.0%

Mon, 16 Jan 2012 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 16.01.2012 AT 09.00 1(2)

The Kesko Group's sales in December 2011, excluding VAT, totalled €892.9 million, showing an increase of 7.0%.

In Kesko's food trade, sales in December were €413.2 million, an increase of 7.5% compared to the previous year. Sales to the K-food store chains were up by 8.8%. The sales of Pirkka products to K-food stores increased by 16.2%.

In the home and speciality goods trade, sales in December were €222.7 million, an increase of 0.3%. The sales of K-citymarket's home and speciality goods, as well as Asko and Sotka increased. The sales of Anttila and Intersport in Finland decreased.

In the building and home improvement trade, sales in December were €196.4 million, an increase of 6.6%. Sales in Finland were up by 3.0%. Sales abroad increased by 9.7% in terms of euros and by 20.3% in terms of local currencies. In Russia, sales increased by 17.3% in terms of euros and by 19.4% in terms of the local currency.

In the car and machinery trade, sales in December were €76.8 million, an increase of 29.8%. VV-Auto's sales in December were €54.9 million, up 32.5%. Konekesko's sales in December were €21.9 million, a 23.3 % year-on-year increase.

Kesko Group sales in euros, excluding VAT, in December 2011:

	December	2011	1.1. -	31.12.2011
	€ million	Change, %	€ million	Change, %
Food trade, total	413.2	7.5	4,223.4	7.3
Home and speciality goods trade, total	222.7	0.3	1,583.6	-0.3
Building and home improvement trade, Finland	87.4	3.0	1,266.4	5.9
Building and home improvement trade, other countries	109.0	9.7	1,526.3	9.6
Building and home improvement trade, total	196.4	6.6	2,792.8	7.9
Car and machinery trade, total	76.8	29.8	1,197.6	22.9
Common operations and eliminations	-16.2		-176.0
Grand total	892.9	7.0	9,621.4	7.8

Finland, total	773.2	6.0	7,960.3	7.3
Other countries, total	119.7	13.7	1,661.1	10.4
Grand total	892.9	7.0	9,621.4	7.8

Change, % indicates the change over the corresponding period of the previous year.

The reporting of the sales and sales adjustments of the foreign operations of the building and home improvement trade has been harmonised, and sales performance has been calculated based on comparable sales figures.

In December 2011, the number of selling days in Kesko's wholesale in Finland was 20, which was one less than in the previous year. The total number of selling days in January-December was the same as in the previous year. The number of retail selling days in December was 28, which was the same as in the previous year. The total number of retail selling days in January-December was the same as in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

DISTRIBUTION
NASDAQ OMX Helsinki
Main news media

www.kesko.fi

Kesko's sales increased in November by 7.4%

Thu, 15 Dec 2011 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 15.12.2011 AT 09.00 1(2)

The Kesko Group's sales in November 2011, excluding VAT, totalled €822.4 million, showing an increase of 7.4%.

In Kesko's food trade, sales in November were €363.3 million, an increase of 9.2% compared to the previous year. Sales to the K-food store chains were up by 9.4%. The sales of Pirkka products to K-food stores increased by 18.3%.

In the home and speciality goods trade, sales in November were €143.9 million, a decrease of 3.1% compared to the previous year. The sales of K-citymarket's home and speciality goods, as well as Asko and Sotka increased. Anttila's sales decreased from the previous year.

In the building and home improvement trade, sales in November were €230.8 million, an increase of 3.7%. Sales in Finland were up by 1.1%. Sales abroad increased by 5.8% in terms of euros and by 12.2% in terms of local currencies. In Russia, sales increased by 17.4% in terms of euros and by 15.8% in terms of the local currency.

In the car and machinery trade, sales in November were €98.4 million, an increase of 32.3%. VV-Auto's sales in November were €77.5 million, up 38.3%. Konekesko's sales in November were €21.1 million, a 15.1% year-on-year increase.

Kesko Group sales in euros, excluding VAT, in November 2011:

	November	2011	1.1. -	30.11.2011
	€ million	Change, %	€ million	Change, %
Food trade, total	363.3	9.2	3,810.3	7.2
Home and speciality goods trade, total	143.9	-3.1	1,360.8	-0.4
Building and home improvement trade, Finland	101.4	1.1	1,179.0	6.1
Building and home improvement trade, other countries	129.4	5.8	1,417.3	9.6
Building and home improvement trade, total	230.8	3.7	2,596.3	8.0
Car and machinery trade, total	98.4	32.3	1,120.9	22.4
Common operations and eliminations	-14.0		-159.8
Grand total	822.4	7.4	8,728.5	7.9

Finland, total	683.2	7.2	7,187.1	7.4
Other countries, total	139.2	8.4	1,541.4	10.1
Grand total	822.4	7.4	8,728.5	7.9

Change, % indicates the change over the corresponding period of the previous year.

In November 2011, the number of selling days in Kesko's wholesale in Finland was 22, which was the same as in the previous year. The total number of selling days in January-November was one more than in the previous year. The number of retail selling days in November was 28, which was the same as in the previous year. The total number of retail selling days in January-November was the same as in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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

Kesko's sales increased in October by 7.9%

Mon, 14 Nov 2011 09:00:00 GMT

KESKO CORPORATION STOCK EXCHANGE RELEASE 14.11.2011 AT 09.00 1(2)

The Kesko Group's sales in October 2011, excluding VAT, totalled €812.6 million, showing an increase of 7.9%.

In Kesko's food trade, sales in October were €344.7 million, an increase of 7.7% compared to the previous year. Sales to the K-food store chains were up by 7.9%. The sales of Pirkka products to K-food stores increased by 27.5%.

In the home and speciality goods trade, sales in October were €140.7 million, an increase of 2.7% compared to the previous year. The sales of K-citymarket's home and speciality goods, Intersport Finland as well as Asko and Sotka increased.

In the building and home improvement trade, sales in October were €251.0 million, an increase of 6.3%. Sales in Finland were up by 11.0%. Sales abroad increased by 2.6% in terms of euros and by 9.5% in terms of local currencies. In Russia, sales increased by 11.0% in terms of euros and by 13.1% in terms of the local currency.

In the car and machinery trade, sales in October were €94.3 million, an increase of 26.8%. VV-Auto's sales in October were €76.2 million, up 30.8%. Konekesko's sales in October were €18.3 million, a 12.8% year-on-year increase.

Kesko Group sales in euros, excluding VAT, in October 2011:

	October	2011	1.1. -	31.10.2011
	€ million	Change, %	€ million	Change, %
Food trade, total	344.7	7.7	3,447.0	7.0
Home and speciality goods trade, total	140.7	2.7	1,216.9	0.0
Building and home improvement trade, Finland	116.0	11.0	1,077.6	6.6
Building and home improvement trade, other countries	135.0	2.6	1,287.9	10.0
Building and home improvement trade, total	251.0	6.3	2,365.5	8.4
Car and machinery trade, total	94.3	26.8	1,022.4	21.5
Common operations and eliminations	-18.1		-145.7
Grand total	812.6	7.9	7,906.1	7.9

Finland, total	670.6	8.7	6,503.9	7.4
Other countries, total	142.0	3.9	1,402.2	10.3
Grand total	812.6	7.9	7,906.1	7.9

Change, % indicates the change over the corresponding period of the previous year.

In October 2011, the number of selling days in Kesko's wholesale in Finland was 21, which was the same as in the previous year. The total number of selling days in January-October was one more than in the previous year. The number of retail selling days in October was 31, which was the same as in the previous year. The total number of retail selling days in January-October was the same as in the previous year.

Kesko releases advance information on the K-Group's retail sales quarterly, in connection with the interim reports.

Further information is available from Vice President, Corporate Controller Eva Kaukinen, tel. +358 1053 22338.

Kesko Corporation

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

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