Kesko as an investment

Strong market position in Finland and other countries

  • Market share of the grocery trade is around 37.2% (Kesko's own estimate) in Finland following the acquisition of Suomen Lähikauppa
  • In building and technical trade, the market shares in Finland are 41% in the building and home improvement trade and 37% in technical wholesale; strong market position also in Norway, the Baltics and Belarus
  • In the car trade, K-Auto is the market leader in Finland with a market share of 18.6%

Growth strategy

  • Growth of the grocery trade in Finland
  • Growth and expansion of the building and technical trade in Northern Europe
  • Growth of the car trade, particularly in Finland
  • Strong progress was made in implementing the strategy thanks to the acquisitions completed in 2016 and 2017
  • Best customer experience in the trading sector in all channels

Strong and stable financial performance and financial position

  • Enables investing in growth and long-term business development
  • Return on capital employed 12.2% (2017)
  • Equity ratio of 50.4% and gearing of 6.1% (2017)
  • Significant synergies from acquisitions

 Good dividend payment capacity

  • Kesko distributes at least 50% of its comparable earnings per share as dividends while taking into account the Company’s financial position and operating strategy
  • A dividend of €2.20 per share is proposed to be paid for 2017, which would represent 96.6% of the comparable earnings per share, and the effective dividend yield of a B share would be 4.9%
  • Dividends for the past five years were paid at the average rate of 100.5% on the comparable earnings per share, and the average effective dividend yield of a B share was 5.4%

Recognised responsibility work

  • Kesko is included in several sustainability indices and listings, such as CDP's Climate A- level, Dow Jones Sustainability (DJSI), FTSE4Good, the STOXX Global ESG Leaders indices, and 'The Global 100 Most Sustainable Corporations in the World' list
  • The responsibility programme covers all Kesko's divisions and contains both short-term and long-term objectives

Competitive advantage with retailer enterpreneurship

  • We operate the retailer business model when it provides a competitive advantage
  • We combine systematic chain operations with retailer operations based on entrepreneurship
  • K-retailers tailor their product selections and services to meet the needs of local customers
  • In 2017 Kesko had more than 1,100 K-retailer entrepreneurs as partners
  • In 2017, 43% of Kesko's net sales were generated by the retailer-entrepreneur business model
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