Kesko CMD, EVP, CFO Jukka Erlund's presentation

1. Enhancing
Cash Flow Generation
Jukka Erlund

2. 2
Net sales growth
Operating profit*
Operating margin %*
Net debt / EBITDA*
Return on capital employed*
Return on equity*
* comparable
+9.1%
€269m
2.8%
target
0.8 <2.5
12.5% 14%
10.1% 12%
Kesko Key Figures 9/2016
12 month rolling

3. GDP Development in Kesko’s Operating Countries
3
GDP
$ bn
GDP
change at constant prices, %
2015 2015 2016F 2017F 2018F
Finland 232 0.2 0.9 1.1 1.3
Norway 388 1.6 0.8 1.2 1.8
Sweden 493 4.2 3.6 2.6 2.2
Estonia 23 1.1 1.5 2.5 2.9
Latvia 27 2.7 2.5 3.4 3.7
Lithuania 41 1.6 2.6 3.0 3.3
Russia 1,326 -3.7 -0.8 1.1 1.2
Poland 475 3.7 3.1 3.4 3.3
Belarus 55 -3.9 -3.0 -0.5 0.5
Source: International Monetary Fund, World Economic Outlook Database, October 2016

4. Real estate
arrangement
Divestment of
Anttila
Kesko Senukai
arrangement in the
Baltic countries
Acquisition of
Suomen Lähikauppa
Acquisition of
Onninen
Major Progress in Portfolio Strategy
4
One unified
Divestment
of K-ruoka,
Russia

5. Strategy Driven Capital Allocation
5
Megatrends and
retail trends
Macro
environment
Portfolio strategy
Investment
strategy
• Competitive situation
• Scale and capabilities
• Growth potential
• ROCE potential
• Risks

6. 0
2000
4000
6000
8000
10000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Finland Other countries
6
+9.3%
+3.3%
-11.9% +3.9%
+7.8% +2.4%
-3.8%
€m
-2.6%
*2016 rolling 12 mo
-4.3%
+9.1%
Profitable Growth as a Key Shareholder Value Driver
6

7. Operating Margin – Targeting Further Growth
3.4
2.3
1.8
3.1
2.9
2.4
2.6 2.6
2.8 2.8
0
1
2
3
4
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Comparable operating profit Comparable operating margin
7
*2016 rolling 12 mo
€m %

8. Operating Margin in Divisions – Potential for Further Growth
3.5
2.4
3.2
0
1
2
3
4
Grocery trade Building and technical trade Car trade
8
%
rolling 12 mo

9. Successfully Executing €50m Efficiency Program
643
557
86
221
131
Personnel costs
Rents and store site costs
ICT costs
Marketing and loyalty costs
Other costs
9
Total €1,638 million
Rolling 12 mo, € million*
Main sources of the savings
• Personnel efficiency
• ICT costs
• Marketing costs
• Rents and store site costs
Majority of the actions
completed – full impact 2017
Fixed cost base
* comparable

10. Target to Enhance Cash Flow Generation
244
137
379 438
216
382 414
304 276
186
-85 -46
31
-240
-441 -391
-152 -182
217
-648
-700
-500
-300
-100
100
300
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
CF from operating activities CF from investing activities
10
€m
*9/2016 rolling 12 mo
10
Capex and NWC
efficiency to be
executed

11. Enhancing Cash Flow Generation
• Further growth in net sales and operating margin in strategic growth areas
• Synergy benefits
• Suomen Lähikauppa progressed better than expected, full annual impact above €30m from 2018
• Onninen progressed as expected, full annual impact of €30m from 2020
• Executing the €50m cost savings program
• Annual capex level below €200m after 2017 (excl. acquisitions)
• In grocery trade less store site capex needs after 2017
• Reduced capex per store need in building and technical trade
• Target to improve NWC efficiency by €50m
• Potential further business and real estate divestments
11

12. Steady Growth in ROCE
comparable
12
14.7
10.2
7.4
14.0
13.1
9.0
9.8 9.9
11.7
12.5
0
4
8
12
16
2007 2008 2009 2010 2011 2012 2013 2014 2015 9/2016*
%
Target
14%
Improving profitability
Real estate transaction
2015
Anttila & Intersport
Russia divestment
Further improvement
from Kesko Food
Russia divestment
*9/2016 rolling 12 mo

13. Aim to Continue Good Dividend Yield
2.2
1.4
0.7
1.8 1.8
1.5
1.7 1.6
1.7
2.1
1.6
1.0
0.9
1.3
1.2 1.2
1.4
1.5
2.5
0
1
2
3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Comparable EPS DPS
13
€
Kesko Corporation distributes at least 50% of its comparable earnings per share as dividends, taking however the
company's financial position and operating strategy into account.
*9/2016 rolling 12 mo

14. 14