Roadshow material, Q4/2015

1. KESKO ROADSHOW
CFO JUKKA ERLUND
Q4/2015

2. • Net sales €8,780m
• Operating profit* €247m
• Personnel 21,812
• Shareholders 38,853
• Market capitalisation €3.1bn (Sep 30, 2015)
* excl. non-recurring items
2
KESKO TODAY
ROLLING 12 MO

3. • K-Group’s sales €11.3bn
• Operations is eight countries
• Over 1.3 million customer visits
every day
• Personnel 45,000
FOR SHOPPING TO BE FUN
3
K-GROUP

4. KESKO NET SALES
BY LINE OF BUSINESS
2014
4
Car trade 9%
Agricultural and machinery trade 7%
Sports trade 2%
Furniture trade 2%
Building and home
improvement trade 25%
Kespro 9%
Grocery trade
Russia 1%
Grocery trade
Finland 44%
Grocery trade €4,754m
Home improvement and speciality goods trade €3,568m
Car trade €766m

5. 5
KESKO NET SALES BY
COUNTRY 2014
Russia 4%
Lithuania 4%
Latvia 1%
Finland 82%
Belarus 1%
Estonia 1%
Sweden 2%
Norway 5%
Over 80% of net sales
comes from Finland

6. 0
2000
4000
6000
8000
10000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Finland Other countries
NET SALES
6
+5.8%
+11.1%
+9.3%
+3.3%
-11.9%
+3.9%
+7.8% +2.4%
-3.8%
€m
-2.6%

7. -100
0
100
200
300
400
500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating profit excl. non-recurring items Non-recurring items
OPERATING PROFIT
7
€m

8. YEAR-ON-YEAR CHANGE IN FIXED COSTS
EXCLUDING NON-RECURRING ITEMS
8
10.3%
7.5% 8.0%
1.2%
-4.0% -4.5% -4.0%
-2.0% -1.3%
-1.0% -1.6%
-1.9%
-4.4%
-10.6%
-8,4%
-15%
-10%
-5%
0%
5%
10%
15%

9. RETURN ON CAPITAL EMPLOYED
MOVING 12 MO, EXCL. NON-RECURRING ITEMS
9
Group totalHome improvement
and speciality
goods trade
Grocery trade Car trade
%
19.9
6.9
29.0
11.3
0
5
10
15
20
25
30

10. STRONG FINANCIAL POSITION
10
Liquid assets €858m €503m
Interest bearing net debt €-394m €-3m
Equity ratio 54.2% 54.2%
Q3/2015 Q3/2014
• Cash flow €403 million from real estate arrangement
• Strong cash position enables growth and good dividend yield

11. EARNINGS / SHARE AND DIVIDEND
11
2009 2010 2011 2012 2013 2014
2.0
0.0
1.0
0.5
1.5 1.40
1.65
1.50
1.68
1.20
1.47
1.20
1.84
1.30
1.78
0.90
0.71
Dividend
Earnings / share excl. non-recurring items % Effective dividend yield
3.9% 3.7% 4.6% 4.8% 5.2% 5.0%
€

12. 12
FINANCIAL TARGETS AND
CAPITAL EXPENDITURE
• Return on capital employed 14%
• Return on equity 12%
• Interest bearing net liabilities / EBITDA < 2.5
• Capital expenditure in 2015–2017 approximately €1 billion
• Excluding possible acquisitions
Dividend policy: Kesko Corporation distributes at least 50% of its earnings
per share excluding non-recurring items as dividends, taking however the
company's financial position and operating strategy into account.

13. 13
ROCE AND ROE
EXCL. NON-RECURRING ITEMS, %
9.6
12.4
14.7
10.2
7.4
14.0
13.1
9.0
9.8 9.9
14.0
10.5
10.0
14.6
8.1
3.8
8.7 8.8
6.9
7.7 7.6
12.0
0
2
4
6
8
10
12
14
16
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 target
ROCE ROE
13

14. 14
0
50
100
150
200
250
300
350
400
450
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Capital expenditure in store sites Acquisitions Other capital expenditure
average
CAPITAL EXPENDITURE BACK TO NORMAL
LEVEL
€m

15. MARKET
SITUATION AND
FUTURE OUTLOOK
15

16. RETAIL TRADE TRENDS IN OPERATING COUNTRIES
ROLLING 12 MO
16
Source: Eurostat, excl. motor vehicles and fuels
-2,0
0,0
2,0
4,0
6,0
8,0
10,0 1/2013
2/2013
3/2013
4/2013
5/2013
6/2013
7/2013
8/2013
9/2013
10/2013
11/2013
12/2013
1/2014
2/2014
3/2014
4/2014
5/2014
6/2014
7/2014
8/2014
9/2014
10/2014
11/2014
12/2014
1/2015
2/2015
3/2015
4/2015
5/2015
6/2015
7/2015
8/2015
latestmonth
%(rolling12mo)
Estonia
Lithuania
Sweden
Norway
Latvia
Finland
Latest
month

17. 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
Expectations for own finances
Expectation, 21st century
average
CONSUMER CONFIDENCE IN FINLAND
17
odotukset omasta taloudesta seuraavan 12 kk:n kuluttua
Source: Statistics Finland

18. 18
BUSINESS ENVIRONMENT
Finland
• In Finland, owing to the decline of consumers’ purchasing power, the
trading sector’s performance is expected to remain weak in all
product lines, which may be complicated further by actions taken to
balance the public finances
Skandinavia and the Baltic countries
• The market is expected to grow
Russia
• Economic situation and consumers’ purchasing power, as well as
the outlook have weakened further
Belarus
• Consumers’ purchasing power is expected to strengthen,
hyperinflation is expected to ease

19. FUTURE OUTLOOK 10/2015-9/2016
19
The general economic situation and the expected trend in consumer demand vary in
Kesko’s different operating countries. In Finland, owing to the decline of consumers’
purchasing power, the trading sector’s performance is expected to remain weak in all
product lines, which may be complicated further by actions taken to balance the
public finances. In the Finnish grocery trade, the tough competitive situation is
expected to continue. The market performance of the Finnish building and home
improvement trade is expected to remain weak. The outlook for the car trade is also
uncertain. With respect to foreign countries, the economic situation and consumers’
purchasing power, as well as the outlook in Russia have weakened further. Instead,
in Sweden and Norway and the Baltic countries, the market is expected to grow.
Kesko Group's net sales for the next 12 months are expected to be lower than
the level of the preceding 12 months. The operating profit excluding non-
recurring items for the next 12-month period is expected to equal the operating
profit level of the preceding 12 months.

20. PORTFOLIO
STRATEGY
20

21. INVESTING IN STRATEGIC
GROWTH AREAS
• Grocery trade (Finland, Russia, Kespro)
• Building and home improvement trade (Europe)
• Car trade (Finland, the Baltic countries)
• Good profitability achieved in all strategic growth areas
• Investments in range of €300 million / year, excluding
potential acquisitions
• Also acquisitions are considered in all three strategic
growth areas
21

22. KEY STRATEGIC OBJECTIVES
22
• Turning the market share in the Finnish grocery trade around
• Increasing the building and home improvement trade in Europe
• Strengthening the market leadership in the Finnish car trade
• The best omni-channel customer experience in the trading sector
• One unified Kesko, harvesting synergies

23. 23
MAXIMISING VALUE CREATION ALSO IN OTHER
BUSINESSES
• Important to have the best platform for Kesko’s small and medium
sized businesses to succeed in tight competition
• Furniture trade (Finland and Estonia)
• Agricultural trade (Finland)
• Machinery trade (Finland and the Baltic countries)
• Shoe trade (Finland)
• Sports trade (Finland and Russia)
• All options which improve competitiveness of other businesses and
retailer entrepreneurs are possible
23

24. GROCERY TRADE
24

25. KESKO GROCERY TRADE
KEY FIGURES ROLLING 12 MO
25
Net sales €4,684m
Operating profit* €185m
Operating margin* 4.0%
ROCE* 19.9%
K-Group 33.1%
S-Group 45.7%
Lidl 7.6%
Suomen Lähikauppa 6.8%
Others 6.8%
Total market €16.7 billion
Source: Nielsen
* excl. non-recurring items

26. RETAIL STORES
Sales 2014
€ million, VAT 0%
Number of stores at
30.9.2015
Concept
1,505+581 81 Hypermarket
1,725 220 Supermarket
1,216 459
Neighbourhood
store
103 8
Compact hyper,
Russia
Others 161 136 Incl. online store
Total 5,292 904
26

27. 27
STRATEGIC OBJECTIVES OF THE GROCERY
TRADE
• Turning the market share in the Finnish grocery trade around
• Further improving quality and service level
• Investments to improve the K-supermarket and K-market store network
• Customer focused renewal of the K-citymarket concept
• Improving price competitiveness and price image
• Offering leading digital services in grocery
• Developed retailer business model

28. STRATEGY FOR RUSSIA
• Increasing operations and improving profitability
in the St. Petersburg area
• Active in acquiring store sites
• K-ruoka is the best food store in the St. Petersburg area
• Identifying new growth possibilities in the Moscow area
and possibly in other metropolitan cities in Russia
28

29. HOME
IMPROVEMENT
AND SPECIALITY
GOODS TRADE
29

30. HOME IMPROVEMENT AND
SPECIALITY GOODS TRADE
KEY FIGURES ROLLING 12 MO
30
Net sales €3,351m
Operating profit* €60m
Operating
margin*
1.8%
ROCE* 6.9%
Sports trade
€186m
Shoe trade €20
Furniture trade
€176m
Agricultural trade
€372m
Others
€20m
Building and home improvement
trade Belarus €125m
Building and home
improvement trade
Russia €250m
Building and home
improvement trade
Finland €785m
Building and home
improvement trade
Scandinavia €625m
Building and home
improvement trade
Baltics €443m
Konekesko
Baltics €96m
Konekesko
Finland €161m
* excl. non-recurring items
2014

31. 31
PROFITABLE GROWTH IN BUILDING AND HOME
IMPROVEMENT TRADE
31
0
10
20
30
40
50
60
70
2012 2013 2014
Operating profit, € million
0 10 20 30 40
Belarus
N-w and…
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
N-w and central
Russia
Market shares in 2014

32. 32
300 STORES IN EIGHT
COUNTRIES Finland
€1,190m
138 stores
Sweden
€197m
20 stores
Norway
€671m
82 stores
Russia
€250m
13 stores
Belarus
€125m
11 stores
Lithuania
€317m
19 stores
Latvia
€53m
8 stores
Estonia
78 M€
8 stores
TOTAL RETAIL SALES
€2,881m

33. 33
STRATEGIC OBJECTIVES OF THE BUILDING AND
HOME IMPROVEMENT TRADE
33
• Kesko #5 in Europe – strong potential for further growth organically or
through acquisitions
• Providing excellent services from the same store network to the three
different customer segments
• A common core for all countries to ensure efficient operations
• Offering the best omni-channel digital services

34. CAR TRADE
34

35. CAR TRADE
KEY FIGURES ROLLING 12 MO
35
Net sales €745m
Operating profit* €27m
Operating margin* 3.7%
ROCE* 29.0%
Volkswagen 12.3%
Toyota 11.9%
Skoda 9.2%
Volvo 7.3%
Ford 7.0%
Nissan 6.1%
Audi 6.0%
Kia 5.7%
Seat 1.7%
Others 32.8%* excl. non-recurring items
2014

36. 36
THE CAR TRADE IS ONE OF KESKO’S THREE
STRATEGIC GROWTH AREAS
• VV-Auto’s market share in the Finnish passenger car and van trade
has risen from 15% to 21% within ten years
• Throughout recent years, Volkswagen has been the best selling car
brand in Finland and Audi has been number one in its competitive
segment
• VV-Auto’s retail net sales have quadrupled within ten years from 100
million to 400 million
• VV-Auto’s profitability has remained at a good level despite the
difficult market situation
36

37. 37
THE WORLD’S
MOST
SUSTAINABLE
RETAIL OPERATOR
37

38. KESKO IS THE MOST RESPONSIBLE FOOD AND
STAPLES RETAILER IN THE WORLD
38
In ’The Global 100 Most Sustainable Corporations in the World’ list since 2005
In the Sustainability Yearbook 2015, Kesko was classified into the bronze class
in the Food & Drug Retailers sector
Included in the FTSE4Good index focusing on responsible investment since
2009
Included in the Dow Jones sustainability indexes DJSI World and DJSI Europe
2003-2014
At the top of the Nordic Carbon Disclosure Leadership climate index in 2011-
2014

40. 40
BASIC INFORMATION
40
• Established in 1940
• Listed on the Helsinki Stock Exchange (Nasdaq Helsinki) in 1960
• 39,000 shareholders
– 28% of all shares owned by non-Finnish
– 41% of B-shares owned by non-Finnish
• Market capitalisation €3.1 billion (Sep 30, 2015)
• Share series: A and B – voting rights 10:1
Number of shares
A shares
31.7%
B shares
68.3%
Voting rights
B shares
18%
A shares
82%

41. 41
SHAREHOLDERS
41
The largest registered shareholders
At 9/2015 by number of shares
%
1 K-retailers´ Association 3,816,860 3.82
2 Vähittäiskaupan Takaus Oy 3,491,771 3.49
3 Kruunuvuoren Satama Oy 3,438,885 3.44
4
Ilmarinen Mutual Pension
Insurance Company 2,050,632 2.05
5 Valluga-sijoitus Oy 1,340,439 1.34
6
Varma Mutual Pension Insurance
Company 1,130,986 1.13
7
Foundation for Vocational Training
in the Retail Trade 1,084,431 1.08
8 Oy The English Tearoom Ab 1,000,000 1.00
9 Elo Pension Company 896,968 0.90
10 Kesko Oyj 876,455 0.88
%

42. 42
REAL ESTATE ARRANGEMENT COMPLETED
• The joint real estate investment company established by Kesko, AMF
Pensionsförsäkring and Ilmarinen started operating in June
• The combined fair value was €652 million and the properties owned by
Kesko Group companies accounted for €485 million
• Cash flow to Kesko was €403 million
42

43. 43
REAL ESTATE IN 6/2015
43
Owned properties
Country
Area,
1,000 m2
Finland 550
Other Nordic countries 66
Baltic countries and Belarus 113
Russia 179
Total
Carrying amount
908
€1,070m
Leased properties total
1,000 m2
3,008
Classification
Strategic properties 59%
Standard properties 32%
Development properties 8%
Realisation properties 1%

44. 44
OPERATING MARGIN BY DIVISION
EXCL. NON-RECURRING ITEMS
Q1/
2014
Q2/
2014
Q3/
2014
Q4/
2014
Q1/
2015
Q2/
2015
Q3/
2015
Grocery trade 4.1 4.6 5.1 4.9 3.2 3.8 3.8
Home improvement
and speciality goods
trade
-4.1 1.0 2.2 0.4 -1.8 3.9 4.2
Car trade 4.6 3.7 3.6 3.0 4.7 3.4 3.5
Total 0.9 2.9 3.6 2.7 1.3 3.4 3.7

45. TREND IN FOREIGN OWNERSHIP, % (31.12.)
45
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013 2014Q3/2015
All shares B share
%

46. UNEMPLOYMENT RATE
46
Source: Statistics Finland

47. RETAIL TRADE, TREND DEVELOPMENT
47
60
70
80
90
100
110
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Turnover Volume index
Source: Statistics Finland

48. DAILY CONSUMER GOODS TRADE, TREND
DEVELOPMENT
48
60
70
80
90
100
110
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Turnover Volume indexSource: Statistics Finland

49. GRANTED PERMITS AND STARTED BUILDINGS,
MIL. M3, MOVING ANNUAL TOTAL
49
Source: Statistics Finland
*) The data is based on estimation

50. FIRST REGISTRATIONS OF PASSENGER CARS IN
FINLAND
50
Source: Statistics Finland

51. 51
INTERIM REPORT
JANUARY-SEPTEMBER
2015
PRESIDENT AND CEO MIKKO HELANDER
22 OCTOBER 2015

52. KEY EVENTS IN Q3
• Measures taken to strengthen the competitiveness of the grocery
trade have progressed as planned and the division’s profitability
remained at a good level
• Market share and profitability of the building and home improvement
trade continued to strengthen
• New cars have continued to sell well despite Volkswagen’s emissions
issue
• Balance sheet very strong, liquid assets €858 million
52

53. Q3 NET SALES GROWTH +1.2%
IN LOCAL CURRENCIES EXCL. ANTTILA
53
4,000
5,000
7,000
3,000
6,000
2,000
1,000
0
Q1-Q3/2015
6,513
Q1-Q3/2014
6,804
Q3/2015
2,203
Q3/2014
2,304
€m
Reported net sales, €, incl. Anttila

54. Q3 NET SALES BY DIVISION
€1,171m
€857m
€170m
Grocery trade
-0.6%Home
improvement
and speciality
goods trade
+4.5%
Car trade -2.6%
53%
39%
8%
54
Comparable change

55. OPERATING PROFIT
EXCL. NON-RECURRING ITEMS
55
0
50
100
150
200
Q3/2015
82.5
Q3/2014
84.0
Q1-Q3/2015
185.3
Q1-Q3/2014
170.8
€m

56. STEADY PROFIT PERFORMANCE CONTINUES
OPERATING PROFIT EXCL. NON-RECURRING ITEMS
56
0
20
40
60
80
100
Q3/2014
84.0
Q2/2014
67.6
Q1/2014
19.1
Q4/2013
66.8
Q3/2013
83.6
Q2/2013
69.8
Q1/2013 Q3/2015
82.5
Q2/2015
76.4
Q1/2015
26.5
Q4/2014
61.9
18.6
€m

57. RETURN ON CAPITAL EMPLOYED INCREASES
EXCL. NON-RECURRING ITEMS, ROLLING 12 MO
57
0
2
4
6
8
10
12
Q3/2015
11.3
Q2/2015
10.9
Q1/2015
10.2
Q4/2014
9.9
Q3/2014
10.0
Q2/2014
9.9
Q1/2014
9.9
Q4/2013
9.8
Q3/2013
9.7
Q2/2013
9.3
Q1/2013
8.8
%

58. CASH FLOW AFTER CAPITAL EXPENDITURE
58
600
100
200
0
-100
-200
Q3/2015
39.3
Q2/2015
541.1
Q1/2015
-139.3
Q4/2014
98.6
Q3/2014
82.4
Q2/2014
79.9
Q1/2014
-138.5
Q4/2013
75.8
Q3/2013
80.3
Q2/2013
206.1
Q1/2013
-100.5
€m

59. FINANCIAL POSITION
59
30.9.2015 30.9.2014
Equity ratio, % 54.2 54.2
Liquid assets, €m 858 503
Interest-bearing net liabilities, €m -394 -3
Capital expenditure, €m 152 151
Return on capital employed*, % 11.3 10.0
Return on equity*, % 8.0 8.4
* Excl. non-recurring items, rolling 12 mo

60. GROCERY TRADE
60

61. NET SALES
61
3,500
2,500
3,000
2,000
1,500
1,000
500
0
Q1-Q3/2015
3,424
Q1-Q3/2014
3,494
Q3/2015
1,171
Q3/2014
1,190
€m

62. OPERATING PROFIT EXCL. NON-RECURRING
ITEMS
62
0
20
40
60
80
100
120
140
160
180
Q1-Q3/2015
123.0
Q1-Q3/2014
161.0
Q3/2015
44.8
Q3/2014
60.3
€m

63. GROCERY TRADE IN Q3
• Measures taken to strengthen the competitiveness of the grocery
trade have progressed as planned and the division’s profitability
remained at a good level.
• Price level in Finnish grocery trade has fallen by around 1%
• The K-Group responds to changes in the competitive
environment both by renewing store concepts in line with
strategy and improving its operational efficiency
• Effect of the real estate arrangement completed in June on
the operating profit excluding non-recurring items was €-3.3
million.
• Sales in Russia were down by 2.5% in euros and up by 42% in
roubles
• Kespro’s market share increased and profitability remained at a
good level
63

64. HOME
IMPROVEMENT
AND SPECIALITY
GOODS TRADE
64

65. Q3 NET SALES GROWTH +4.5%
IN LOCAL CURRENCIES EXCL. ANTTILA
65
857942
3,000
2,500
2,000
1,500
1,000
500
0
Q1-Q3/2015
2,514
Q1-Q3/2014
2,731
Q3/2015Q3/2014
€m
Reported net sales, €, incl. Anttila

66. OPERATING PROFIT EXCL. NON-RECURRING
ITEMS CONTINUED TO INCREASE IN Q3
66
-20
0
20
40
60
Q1-Q3/2015
56.1
Q1-Q3/2014
-3.3
Q3/2015
35.8
Q3/2014
20.6
€m

67. HOME IMPROVEMENT AND
SPECIALITY GOODS TRADE IN Q3
• Building and home improvement trade
• Market share is estimated to have grown in Finland, Norway,
the Baltics and Russia
• Operating profit has improved in ten successive quarters
• Net sales and profitability strengthened in the agricultural and machinery
trade
• In the leisure trade, Budget Sport’s sales increased markedly
• Asko’s sales performance +8%
67

68. CAR TRADE
68

69. NET SALES
69
571592
170175
0
200
400
600
Q3/2015Q3/2014 Q1-Q3/2014 Q1-Q3/2015
€m

70. OPERATING PROFIT
EXCL. NON-RECURRING ITEMS
70
0
10
20
30
Q1-Q3/2015
22.3
Q1-Q3/2014
23.8
Q3/2015
6.0
Q3/2014
6.3
€m

71. CAR TRADE IN Q3
• Profitability remained at a good level despite challenging market situation
• Volkswagen Group’s diesel emissions issue
• Vehicles fitted with EU6 diesel engines and vehicles fitted with petrol
engines are not affected
• In Finland, around 50,000 cars imported by VV-Auto Group are affected
• Car repairs in Finland can start as soon as the German Federal Motor
Transport Authority (KBA) and Trafi in Finland have approved related
technical solutions
71

72. ORDER BACKLOG AT END OF SEPTEMBER
HIGHER THAN THE YEAR BEFORE
72
0
1000
2000
3000
4000
5000
6000
7000
0
1000
2000
3000
4000
5000
6000
7000 01/13
02/13
03/13
04/13
05/13
06/13
07/13
08/13
09/13
10/13
11/13
12/13
01/14
02/14
03/14
04/14
05/14
06/14
07/14
08/14
09/14
10/14
11/14
12/14
1/15
2/15
3/15
4/15
5/15
6/15
7/15
8/15
9/15
Backlog of customer orders (pcs) Rolling 12 mo average (pcs)

73. 73
CONTACT INFORMATION
73
IR@kesko.fi
www.kesko.fi/investors
Twitter.com/Kesko_IR