Kesko's Financial targets and achievements

08.03.2019

We are moving strongly towards our financial targets and better returns on capital employed and equity through growth, increased profitability, synergies and working capital efficiency. Alongside growth, we continue to focus on higher cost-efficiency in all our operations to ensure competitiveness.

Our strong balance sheet enables both investments in strategic growth endeavours as well as good dividend payments. Between 2015 and 2018, we invested more than €1.7 billion in our business operations, financing the investments with €1.0 billion divestments of non-strategic business operations and real estate.

Organic investments were at their highest in 2017, and are planned to come down to an annual level of €200-250 million. Investments in store sites will decrease, while investments in digitalisation will increase. In future acquisitions, we will aim for economies of scale and improved competitiveness, especially in the building and technical trade division.

	2017	2018	Target level
Return on capital employed, %	13.3	14.0	14 %
Return on equity, %	10.9	11.7	12 %
Interest-bearing net debt/EBITDA	0.3	0.4	<2.5

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