Roadshow presentation

1. Kesko Presentation
November 2016
Jukka Erlund

2. Kesko Q3/2016
rolling 12 mo
• Net sales €9,582m
• Operating profit* €269m
• ROCE* 12.5%
• Personnel 30,000
• Shareholders 40,000
• Market capitalisation €4.4bn (Oct 31, 2016)
* comparable
2

3. K-Group Today
• K-Group’s pro forma sales €13.4bn
• Operations in nine countries
• Number of personnel around 45,000
• Third largest retailer in northern Europe
3
After the acquisition of Suomen Lähikauppa and Onninen

4. Kesko Operates in Three Divisions
4
Grocery trade Building and technical
trade
Car trade
• Net sales €5.1bn
• Some 1,500 stores
in Finland
• #2 in the Finnish
retail market
• #1 in Finnish food
service business
• Net sales €3.7bn
• Some 700 stores in 9
countries
• #1 in northern Europe
• Net sales €0.8bn
• Sole importer of VW,
Audi, Seat and MAN
trucks
• #1 in Finland

5. Q3/2016 Net Sales by Division
49%44%
7%
5
Grocery trade -0.5%*
total change +16.7%
Building and technical trade +2.0%*
total change +44.4%
Car trade +11.2%
* in local currencies excl. acquisitions

6. Operations in Nine Countries
Retail sales 2015,
€ million, (excl.
Suomen Lähikauppa
and Onninen)
GDP growth,
2016e, %
(Source: IMF)
Finland 8,927 0.9
Sweden 209 3.6
Norway 664 0.8
Estonia 136 1.5
Latvia 90 2.5
Lithuania 366 2.6
Russia 311 -0.8
Poland 3.1
Belarus 116 -3.0
6

7. Growth Strategy
• Growth of the grocery trade particularly in Finland
• Growth of the building and technical trade in Europe
• Growth of the car trade particularly in Finland
7
7

8. Maximising Value Creation Also in Other Businesses
• Furniture trade (Finland and Estonia)
• Agricultural trade (Finland)
• Machinery trade (Finland and the Baltic countries)
• Sports trade (Finland)
• Shoe trade (Finland)
• Total revenue some €1bn
• Strong market shares and ROCE
8

9. Real estate
arrangementDivestment
of Anttila
Kesko Senukai
arrangement in
the Baltic
countries
Acquisition of
Suomen
Lähikauppa
Acquisition of
Onninen
Strategy Implementation is Progressing
9
One unified
Divestment
of K-ruoka,
Russia
Acquisition of
AutoCarrera

10. Net Sales on Strong Growth
Net sales performance, Q/Q
-10
-5
0
5
10
15
20
25
30
2012 2013 2014 2015 2016
10
%

11. Grocery trade

12. Kesko’s Grocery Trade
12
77 %
7 %
14 %
2 %
Finland SLK Kespro Russia
* comparable
Total market €16.6bn in 2015
Net sales €5,063m
Operating profit* €178m
Operating margin* 3.5%
ROCE* 21.9%
Q4/2015-Q3/2016
Net sales Q4/15-Q3/16

13. Retail Stores
Sales 2015
€ million, VAT 0%
Number of stores at
31.12.2015 Concept
1,505+575 81 Hypermarket
1,716 219 Supermarket
1,189 476 Neighbourhood store
Siwa and Valintatalo stores 936 600 Neighbourhood store
Others 122 108 Incl. online store
13

14. Strong Position in the Finnish Grocery Trade Market
14
• The leading quality actor in the Finnish grocery trade and food
service wholesale market
• Acquisition of Suomen Lähikauppa has significantly increased
net sales and strengthened market share, which is expected to
settle down to a range of 37-38%
• Good profitability due to strong market position, enhancement
actions taken and synergies resulting from the acquisition of
Suomen Lähikauppa
• Divestment of Russian operations will further improve
profitability and cash flow
K-Group 32.7%
S-Group 45.9%
Lidl 8.3%
Suomen Lähikauppa 6.4%
Others 6.7%
Total market €16.6 billion in 2015
Source: Nielsen

15. Megatrends Affecting Grocery Trade
15
Ageing
population
Urbanisation and
increase of single
households
Individuality High quality
expectations
and price
awareness
Responsibility,
ethicality and
environmental
aspects
Digitalisation

16. Direction in Grocery Trade
• Most customer driven and inspirational food retailer
• Renewing concepts, brand and marketing
• Best digital services
• Staying as one of the most profitable retailers in Europe
• Maintaining profitable growth
16

17. Good Progress in Integration of Suomen Lähikauppa
• Conversion of Siwa and Valintatalo stores into K-Markets is progressing rapidly
• Customer visits and sales have increased markedly
• The stores’ price level is much more competitive and selections more attractive
• Purchasing and logistical operations fully integrated by spring 2017
• Transferring the stores to retailers is progressing
• Due to good progress, we are targeting annual synergies above €30m at 2018
17

18. Kesko to Dispose of Its Russian Grocery Trade to Lenta
• On 26.10.2016, Kesko Food Russia Holding Oy signed an agreement to dispose of its grocery trade business in
Russia to Lenta Ltd
• Lenta is the largest hypermarket chain in Russia in terms of selling space and the country’s fifth largest retail chain
in terms of 2015 sales
• Aggregate consideration for the disposal is approximately RUB 11 billion (approximately €158m)
• Kesko Corporation will record a non-recurring expense of approximately €69 million on the disposal
• Growth of grocery trade in Russia would have required significant capital expenditures
• The disposal includes 11 food stores operating in the St. Petersburg and Leningradskiy regions, three land plots in
the Moscow and Leningradskiy regions, as well as administrative and support functions
• The disposal is yet subject to the approval of the Russian competition authority, FAS
• The disposal is estimated to be completed on November 30, 2016
18

19. Building and
technical trade

20. Building and Technical Trade Division
20
Sports trade
Furniture trade
Building and technical
trade business
Agricultural and
machinery trade
* comparable
Q4/15 - Q3/16
Net sales €3,715m
Operating profit* €91m
Operating margin* 2.4%
ROCE* 10.0%
Q4/2015-Q3/2016
Retail sales (pro forma)
20

21. B2B
60%
retail sales (pro forma),
excl. speciality goods trade
Building and Technical Trade
21
Belarus 2%
Russia 4%
Finland 45%
Sweden 10%
Baltics 12%
21
Norway 22%
Poland 5%
€4,436m
B2C
40%
Sales by customer segments
retail sales (pro forma),
excl. speciality goods trade
Sales by country
21

22. • Largest customer groups are contractors and
construction companies, 80% of sales
• Building materials, HEPAC* and electricals account
for 75% of sales
* HEPAC=heating, plumming and air conditioning
• Renovators or builders with a DIY project
• Consumers with a need for a special DIY product
• Main product lines are building materials, home
furnishing, decoration and tools
22
B2B Customers B2C Customers

23. Megatrends Drive B2B Growth
Building and renovation increasingly technical, regulation increases
Consumers increasingly often outsource building to professionals
Growing need for renovation building
Rising standard of living and ageing of population increase the use of services
23

24. Direction in Building and Technical Trade
• A unified building and technical trade – harvesting synergies
• Better services and synergies from sourcing, logistics, store
site network and ICT
• Full annual impact of synergies from Onninen acquisition
€30m from 2020
• Best digital services for all customer segments
• Profitability towards the level of the best European performers
• Prioritising profitability and organic growth
• The most natural growth areas are Nordic and Baltic countries
24

25. Operations in 9 Countries
• K-rauta and Onninen clear #1 in Finland
• Sweden as the biggest market in Nordics offers promising
growth opportunities
• Byggmakker #2 in Norway and Onninen strong in electricals
• Kesko Senukai #1 in Baltics and Belarus
• K-rauta has strong presence in St. Petersburg and Moscow
• Onninen well positioned in Poland
25
0 10 20 30 40
Belarus
Russia
Poland
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
Market share 2015
%

26. Car trade

27. Car Trade
27
Net sales €805m
Operating profit* €26m
Operating margin* 3.2%
Return on capital
employed*
22.0%
* comparable
Q4/2015-Q3/2016
29 %
14 %
9 %
48 %
New car retailing Used car retailing
After sales retailing Importing / sales to dealers

28. Car Trade and Finnish Car Market
• The fast changes in car industry offer new
business opportunities
• Deepening cooperation with VW AG
• Kesko car trade market share app. 20%
• High market share ensures well-
performing after sales
• Profitable growth from used car sales,
including e-commerce
28
Volkswagen 11.1%
Toyota 10.7%
Skoda 9.5%
Ford 8.3%
Nissan 6.4%
Kia 6.3%
Opel 6.2%
Audi 5.1%
Seat 1.9%
Others 34.5%
1-10/
2016
First registrations, passenger cars
1-10/16, market growth 10.8%

29. Kesko to acquire AutoCarrera - Porsche representation
transfers to VV-Auto
• On 14.11.2016 VV-Auto Group Oy signed an agreement to acquire Oy Autocarrera Ab, the company
being responsible for importing and retailing Porsche in Finland
• 2015 net sales of the business being acquired were €49 million and the operating profit was €3.3
million
• The acquisition expands VV-Auto's cooperation with Volkswagen AG
• The addition of Porsche to the selection will increase sales and improve car trade profitability
• Acquisition price, structured as a share purchase, is app. €27 million
• The completion of the acquisition is subject to the approval of the competition authorities and the
fulfilment of the other terms and conditions of the transaction. The acquisition is estimated to be
completed within the year 2016
29

30. Financials

31. 31
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

32. Net Sales by Quarter
Q3 growth 26.7%, in local currencies excl. acquisitions 1.1%
32
3,000
2,000
500
2,500
1,500
0
1,000
Q2Q1
2,013
2,371
2,227
2,610
2,304
Q4
2,203
Q3
2,792
2,267
2,1662,129 2,082
20162014 2015
€m

33. 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
33
* 2016 rolling 12 mo
€m %

34. Operating Profit
comparable, by quarter
34
19
68
84
62
27
76
82
59
32
79
98
0
20
40
60
80
100
Q4Q3Q2Q1
20162014 2015
€m

35. 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
35
%
rolling 12 mo

36. 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
36
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

37. 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
37

38. Annual Capex Level Below €200m After 2017
(Excl. Acquisitions)
38
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital expenditure in store sites Acquisitions Other capital expenditure
€m

39. Steady Growth in ROCE
comparable
39
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

40. 21.9
10.0
22.0
12.5
0
10
20
30
40
Group totalBuilding and
technical trade
Grocery trade Car trade
%
ROCE by Division
comparable, rolling 12 mo
40

41. Strong Financial Position
41
30.9.2016 30.9.2015
Equity ratio, % 47.9 54.2
Liquid assets, €m 245 858
Interest-bearing net debt, €m 299 -394
Cash flow from operating activities, Q3, €m 80 86
Cash flow from investing activities, Q3, €m -48 -46

42. 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
42
€
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

43. Real Estate in 2015
Owned properties by
country
Area, 1,000 m2
Finland 540
Other Nordic countries 66
Baltic countries and Belarus 109
Russia 191
Total
Carrying amount
906
€1,107m
Leased properties total
1,000 m2
2,951
43
43
Classification
Strategic properties 64%
Standard properties 26%
Development properties 9%
Realisation properties 1%

44. Shareholders 9/2016
The largest registered shareholders by number of shares
Number of
shares %
1 K-retailers´ Association 3,981,644 3.98
2 Vähittäiskaupan Takaus Oy 3,491,771 3.49
3 Kruunuvuoren Satama Oy 3,438,885 3.44
4 Ilmarinen Mutual Pension Insurance Company 1,990,632 1.99
5 Valluga-sijoitus Oy 1,340,439 1.34
6 Foundation for Vocational Training in the Retail Trade 1,144,158 1.14
7 Varma Mutual Pension Insurance Company 1,130,986 1.13
8 Oy The English Tearoom Ab 1,000,000 1.00
9 The State Pension Fund 950,000 0.95
10 Elo Pension Company 896,968 0.90
44
Foreign ownership of
B shares 45%

45. Market situation and
outlook

46. 0
2
4
6
8
10
12
14
16
1/00
7/00
1/01
7/01
1/02
7/02
1/03
7/03
1/04
7/04
1/05
7/05
1/06
7/06
1/07
7/07
1/08
7/08
1/09
7/09
1/10
7/10
1/11
7/11
1/12
7/12
1/13
7/13
1/14
7/14
1/15
7/15
1/16
7/16
Expectations for own finances
Expectation, 21st century average
Consumer Confidence in Finland
46
Source: Statistics Finland

47. Retail trade trends in operating countries
rolling 3 mo
47
Source: Eurostat, excl. motor vehicles and fuels
%(rolling3mo)
- 4,0
- 2,0
0,0
2,0
4,0
6,0
8,0
10,0
1/2015 2/2015 3/2015 4/2015 5/2015 6/2015 7/2015 8/2015 9/2015 10/2015 11/2015 12/2015 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/2016 latest
month
Estonia
Lithuania
Norway
Finland
Latvia
Sweden

48. Outlook
Estimates for the outlook of Kesko Group's net sales and comparable operating profit are given for the 12-month
period following the reporting period (10/2016-9/2017) in comparison with the 12 months preceding the end of the
reporting period (10/2015-9/2016).
The general economic situation and the expected trend in consumer demand vary in Kesko’s different operating
countries. In Finland, owing to the weak trend in consumers’ purchasing power, the trading sector’s growth is
expected to remain slow. In the Finnish grocery trade, intense competition is expected to continue. The market for
the Finnish building and technical trade is expected to improve slightly. In Sweden and Norway, the market is
expected to grow but at a somewhat slower rate. The trend in the Russian market is expected to remain modest. In
the Baltic countries, the market is expected to grow.
Kesko Group's net sales for the next 12 months are expected to exceed the level of the preceding 12 months. The
comparable operating profit for the next 12-month period is expected to exceed the level of the preceding 12
months.
48

49. The World’s Most
Sustainable
Retail Operator
Davos, January 2015 and 2016:
’The Global 100 Most Sustainable
Corporations in the World’ list.

50. 50
Kesko Is the Most Responsible Food and Staples Retailer in
the World
• In 2015, Kesko was in CDP’s Climate A List for the first time
• At the top of the Nordic Climate Disclosure Leadership climate index since 2011. In 2015, Kesko was
awarded the full 100 points
• In ’The Global 100 Most Sustainable Corporations in the World’ list since 2005
• Included in the FTSE4Good index since 2009
• Included in the STOXX Global ESG Leaders index family since 2011
• Included in the Dow Jones sustainability indexes DJSI World and DJSI Europe 2003-2014
50

51. Interim report
Q3 2016
26 October 2016
Mikko Helander

52. Q3 Highlights
• Kesko’s net sales increased by 27%, comparable growth 1.1%
• Comparable operating profit increased to €98.2 million (€82.5 million)
• Return on capital employed 12.5% (11.3%)
• In the grocery trade, good profitability, integration of Suomen Lähikauppa has progressed well
• In the building and technical trade, market share continued to strengthen. Onninen increased the
operating profit of the building and technical trade
• In the car trade, sales increased markedly and profitability improved
52

53. Key performance indicators
53
Q3/2016 Q3/2015 Q1-Q3/2016 Q1-Q3/2015
Net sales, €m 2,792 2,203 7,415 6,513
Operating profit*, €m 98.2 82.5 209.6 185.3
Operating margin*, % 3.5 3.7 2.8 2.8
Profit before tax*, €m 97.5 78.2 211.2 177.3
Earnings per share*, € 0.73 0.53 1.59 1.24
Return on capital employed*, %,
rolling 12 mo
12.5 11.3
Return on equity*, %, rolling 12 mo 10.1 8.0
* comparable

54. Q3 grocery trade
• K-Group’s grocery sales +17.3%,
Suomen Lähikauppa excluded, +0.7%
• Profitability is good and operating profit
strengthened due to synergies and
enhancement actions taken
• Change in grocery market prices around -0.5%
• 130 Siwa and Valintatalo stores already converted
into K-Markets. Their sales have changed by +9%
compared to pre-conversion sales
54

55. Net sales, grocery trade
Q3 growth 16.7%
55
2,500
2,000
500
0
1,500
1,000
4,000
3,500
3,000
3,424
Q3/2016
1,367
Q3/2015
1,171
Q1-Q3/2016
3,814
Q1-Q3/2015
€m

56. Operating profit, grocery trade
comparable
56
0
20
40
60
80
100
120
140
Q1-Q3/2016
124.0
Q1-Q3/2015
123.0
Q3/2016
49.2
Q3/2015
44.8
€m

57. Q3 building and technical trade
• Net sales growth 44.4%, in local currencies, excluding
Onninen, 2.0%
• Market share of Kesko’s building and technical trade
strengthened further
• Strong growth in B2B trade continued
• Operating profit of the building and home
improvement stores in Sweden turned positive
• Positive profit performance in the agricultural and
machinery trade, the sports trade and the furniture
trade
57

58. Net sales, building and technical trade
Q3 growth 44.4%, in local currencies excl. acquisitions 2.0%
58
857
1,000
2,500
2,000
1,500
3,000
500
0
Q1-Q3/2016
2,979
Q1-Q3/2015
2,514
Q3/2016
1,238
Q3/2015
M€

59. Operating profit, building and technical trade
comparable
59
0
20
40
60
80
100
Q1-Q3/2016
83.5
Q1-Q3/2015
56.1
Q3/2016
45.3
Q3/2015
35.8
€m

60. Q3 car trade
• Car trade net sales growth 11.2%. Total car trade
market increased markedly
• Profitability remained at a good level,
operating profit €6.8 million
• First registrations of Volkswagen passenger cars
increased by 1.5%, those of Seat by 32.7% and those
of Audi by 8.2% in January-September
• Trade-in car trade increased by 20%. Strong start for
the new Caara.fi online store
• Order book growth 11%
60

61. Net sales, car trade
Q3 growth +11.2%
61
628
571
190170
0
250
500
750
Q3/2015 Q1-Q3/2016Q1-Q3/2015Q3/2016
€m

62. Operating profit, car trade
comparable
62
0
10
20
30
Q1-Q3/2016
22.0
Q1-Q3/2015
22.3
Q3/2016
6.8
Q3/2015
6.0
€m

63. Special focus areas
• The most inspiring food stores in the market
• Extensive neighbourhood market renewal and renewal of the K-citymarket chain
• Integration of Suomen Lähikauppa and achievement of synergies
• Fast digitalisation of customer experience: food online store and other digital services
• Increasing building and technical B2C and B2B trade in all markets
• Combining K-rauta and Rautia into a new K-rauta in Finland
• Further improve financial performance in Sweden, Poland and Norway
• Continue profitable growth in Baltics and Belarus
• Creation of new building and technical trade entity and achievement of synergies
• New generation online stores for B2B and B2C customers
63

64. Special focus areas
• Fast expansion of Caara online dealership service in the car trade
• Reduction of unit costs and further improvement of efficiency
• Total reform of marketing
• Improving marketing effectiveness
• Management by data and increasing targeted marketing
• Building a single unified K-brand and identity
64

65. 65
Main changes:
• Separate guides for personnel
and business partners
• K Code of Conduct
ambassadors in all operating
countries
• SpeakUp reporting channel

66. IR@kesko.fi
www.kesko.fi/investor
Twitter.com/Kesko_IR
Contact information

67. 67