Kesko’s new financial targets

The Board of Directors of Kesko Corporation has approved new medium-term financial targets for the Group.

The new medium-term financial targets for profitability, as approved by the Board of Directors of Kesko Corporation, are a comparable operating margin of 5.0% and a comparable return on capital employed of 11.0%. The profitability targets take into account the impacts of IFRS 16 Leases. In terms of financial position, as before the Group uses interest-bearing net debt/EBITDA and targets a maximum level of 2.5, excluding the impact of IFRS 16.

At the start of the year, Kesko Group adopted the new standard IFRS 16 Leases, which took effect on 1 January 2019. The change increases the Group’s comparable operating profit and capital employed, and decreases return on capital employed. The impacts of the adoption of IFRS 16 Leases on Kesko’s figures for 2018 were communicated in detail in a stock exchange release issued on 25 March 2019.

The financial targets set in 2015 were based on International Financial Reporting Standards in effect at the time. Kesko Group’s previous financial targets were a comparable return on equity of 12%, a comparable return on capital employed of 14%, and interest-bearing net debt/EBITDA of less than 2.5. Thanks to the successful execution of our growth strategy, Kesko achieved the target level of 14% for return on capital employed in 2018.

Further information:

Jukka Erlund, Chief Financial Officer, tel. +358 105 322 113

Kia Aejmelaeus, Vice President, Investor Relations, tel. +358 105 322 533

Kesko Corporation

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