Kesko as an investment

1. Strong market position in Finland and other countries

  • Market share of the grocery trade estimated at 37–38% in Finland following the acquisition of Suomen Lähikauppa
  • Market share of the building and technical trade around 40% in Finland, strong market position in Norway, the Baltic countries and Belarus
  • Kesko operates in the building and technical trade in nine countries and is the fifth largest operator in the European building and home improvement trade market

2. Growth strategy

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

3. Strong and stable financial performance and financial position

  • Enables investing in growth and long-term business development
  • Equity ratio of 48.6% and gearing of 5.8% (2016)
  • The acquisitions are expected to generate significant synergies in the near future

4. 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 €2.0 per share is proposed to be paid for 2016, which would represent an average rate of 99.5% on the comparable earnings per share, and the effective dividend yield of B share would be 4.2%
  • Dividends for the last five years were paid at the average rate of 93.6% on the comparable earnings per share, and the average effective dividend yield of B share was 5.5%

5. Recognised responsibility work

  • Kesko is included in several sustainability indices and listings, such as CDP's Climate A- level, 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

6. Competitive advantage with retailer enterpreneurship

  • 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 while listening to their wishes
  • In 2016 Kesko had 1,088 K-retailer entrepreneurs as partners
  • In 2016 approximately half of Kesko's net sales were generated by the retailer-entrepreneur business model
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