This document provides an overview of Kesko's performance and strategic plans presented by Jukka Erlund at an analyst meeting on December 18, 2015. Key points include: Kesko's sales and profitability figures have remained stable over the past year. The grocery trade division aims to gain market share in Finland by acquiring Suomen Lähikauppa. The home improvement trade is focusing on growth in Europe through both organic expansion and acquisitions. The car trade continues to be impacted by the Volkswagen emissions scandal but maintains a strong order backlog. Overall, Kesko is well positioned financially and pursuing growth across its strategic business areas.

1. ANALYST
MEETING
JUKKA ERLUND
18 DEC. 2015
1

2. -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
9/2015
10/2015
Latestmonth
Estonia
Sweden
Lithuania
Norway
Latvia
Finland
2
RETAIL TRADE TRENDS IN OPERATING COUNTRIES
ROLLING 12 MO
Source: Eurostat, excl. motor vehicles and fuels
%(rolling12mo)
Latest
month

3. 3
Net sales, €m 9,285 9,235 9,166 9,071 9,024 8,881 8,780
Gross margin, % 13.7 13.8 13.8 13.7 13.6 13.5 13.3
Operating profit*, €m 239.3 237.2 237.6 232.6 240.0 248.8 247.2
EPS*, basic, € 1.71 1.75 1.82 1.65 1.69 1.72 1.66
Liquid assets, €m 532 461 503 598 506 843 858
Return on capital
employed*, %
9.9 9.9 10.0 9.9 10.2 10.9 11.3
Equity ratio, % 53.2 52.3 54.2 54.5 51.5 52.2 54.2
Capital expenditure, €m 173 181 197 194 202 205 195
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
*Excl. non.recurring items
KESKO’S KEY FIGURES, ROLLING 12 MONTHS

4. 4
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

5. KESKO GROUP’S SALES 1–11/2015
5
1.1. - 30.11.2015 Change, %
€ million Change,
%
in local
currencies
excl. Anttila
Grocery trade, total 4,250.8 -1.7 -0.9
Home improvement and speciality goods trade,
Finland 1,639.3 -12.5 -1.2
Home improvement and speciality goods trade,
other countries 1,448.8 -3.5 +5.6
Home improvement and speciality goods
trade, total
3,088.1 -8.5 +2.1
Car trade, total 707.7 -3.5 -3.5
Grand total 8,054.2 -4.3 0.0
Finland, total 6,512.2 -4.5 -1.8
Other countries, total 1,542.0 -3.4 +7.4
Grand total 8,054.2 -4.3 0.0

6. STRONG FINANCIAL POSITION
6
Liquid assets €858m €503m
Interest bearing net
liabilities
€-394m €-3m
Equity ratio 54.2% 54.2%
Q3/2015 Q3/2014

7. 7
ROCE AND ROE
EXCL. NON-RECURRING ITEMS, %
12.4
14.7
10.2
7.4
14.0
13.1
9.0
9.8 9.9
11.3
14.0
10.0
14.6
8.1
3.8
8.7 8.8
6.9
7.7 7.6 8.0
12.0
0
2
4
6
8
10
12
14
16
2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3/2015 target
ROCE ROE
7

8. CAPITAL EXPENDITURE IN STRATEGIC
GROWTH AREAS
• Grocery trade
• Building and home improvement trade
• Car trade
• Capital expenditure in range of €250 million / year,
excluding possible acquisitions
• Also acquisitions are considered in all three strategic
growth areas
8

9. KEY STRATEGIC OBJECTIVES
9
• 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

10. KESKO TO INVEST IN FINLAND BY ACQUIRING
SUOMEN LÄHIKAUPPA
• Kesko has made an agreement to acquire the whole share capital of Suomen
Lähikauppa Oy from the private equity investment firm Triton
• Net sales of Suomen Lähikauppa in 2014 were €999.2 million
• Suomen Lähikauppa has 643 neighbourhood stores and 4,100 employees
• Transaction price of the debt-free acquisition, structured as a share purchase,
is approximately €60 million
• Kesko estimates that its capital expenditure in 2015-2017 will decrease from
the approximately €1 billion announced in the strategy to €750 million,
excluding possible acquisitions
10

11. GROCERY TRADE
11
• Net sales €4,684m, change in local
currencies -1.5%
• Operating profit* €185m (4.0%)
• ROCE* 20%
*excl. non-rec. items
Q4/2014-Q3/2015 (12 months)
11
• Strengthening of competitiveness is
progressing as planned
• Price trend in Finnish grocery trade
continues to decline (-1%)
• Sales in Russia in 1-9/2015, change
in local currency +34.5%, in euros
-2.4%

12. 0
10
20
30
40
50
60
70
12
SALES, CHANGE %,
IN LOCAL CURRENCIES
1-11/2015
OPERATING PROFIT
EXCL. NON-REC. ITEMS
-4.5
0.6
7.6
-6.0
-3.3
-0.9
-1.1
0.5
-0.4
-2.2
0.5
-8
-6
-4
-2
0
2
4
6
8
% €m

13. PROGRESS OF GROCERY TRADE STRATEGY
• Expansion and renewal of store site network and renewal of concepts
• Acquisition of Suomen Lähikauppa
• Improving price competitiveness
• Some 300 K-Menu private label products
• K-Myllypuro boldly tests different food store concepts and models
• Kantar: Store of the Week in the World
• Digital services, such as K-ruoka app
13

14. GROCERY TRADE PERFORMANCE, TREND
14
60
70
80
90
100
110
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net sales Volume index

15. • Market share of the K-Group’s
building and home improvement
stores has strengthened in Finland,
Norway, the Baltic countries and
Russia
• In Finland, market share has
strengthened by some +1 pp
• Profitablity has improved in 10
consecutive quarters
HOME IMPROVEMENT AND SPECIALITY GOODS
TRADE
15
• Net sales €3,351m, comparable
change +1.6%
• Operating profit* €60m (1.8%)
• ROCE* 7%
*excl. non-rec. items
Q4/2014-Q3/2015
15

16. -40
-30
-20
-10
0
10
20
30
40
16
SALES, CHANGE %,
IN LOCAL CURRENCIES
1-11/2015*
OPERATING PROFIT
EXCL. NON-REC. ITEMS
%
€m
*excl. Anttila
-0.8
3.1
1.8
-1.4
-1.2
3.9
8.7
1.8
2.8
-0.9
6.1
-2
0
2
4
6
8
10

17. STRATEGIC OBJECTIVES OF BUILDING AND HOME
IMPROVEMENT TRADE
• Kesko #5 Europe – strong potential to grow organically or through
acquisitions
• We offer excellent services from a single store network to three different
customer segments
• Business customers
• Project customers
• Consumer customers
• Common core for all operating countries to ensure operating efficiency
• We offer the best digital services on all channels
17

18. • In November, VW #2 in new
registrations of passenger cars
• Remedial solution proposals of NOx
vehicles have been presented to
and approved by the authorities
• Repair campaign will start in
Finland next spring, mainly as
software updates
CAR TRADE
18
• Net sales €745m, -3.0%
• Operating profit* €27m (3.7%)
• ROCE* 29%
*excl. non-rec. items
Q4/2014-Q3/2015
18

19. 19
SALES, CHANGE %,
1-11/2015
OPERATING PROFIT
EXCL. NON-REC. ITEMS
-11.4
-5.3
4.6
-2.5
-9.0
1.3
-2.1
-4.8
-0.1
0.2
-7.3
-12
-10
-8
-6
-4
-2
0
2
4
6
%
0
2
4
6
8
10
12
€m

20. NEW REGISTRATIONS OF PASSENGER CARS
IN FINLAND
20
Soure: Statistics Finland

21. NEW REGISTRATIONS OF PASSENGER CARS
14.12.2015
Brand December
December
mo % Prev. Prev. mo %
Change in
month, % Cum Cum. mo % Cum prev. Prev. mo %
K
u
VOLKSWAGEN 435 13,2 827 11,7 10,5 12 209 11,7 12 988 12,2
TOYOTA 404 12,2 836 11,8 1,5 11 738 11,3 12 558 11,8
FORD 308 9,3 436 6,1 48,4 8 309 8,0 7 424 7,0
SKODA 283 8,6 589 8,3 0,9 9 528 9,1 9 649 9,1
VOLVO 263 8,0 575 8,1 -3,9 7 036 6,8 7 695 7,2
OPEL 155 4,7 193 2,7 68,7 5 252 5,0 4 507 4,2
RENAULT 151 4,6 297 4,2 6,8 2 414 2,3 1 737 1,6
KIA 138 4,2 268 3,8 8,2 6 337 6,1 6 028 5,7
AUDI 137 4,1 496 7,0 -42,0 5 122 4,9 6 285 5,9
NISSAN 132 4,0 342 4,8 -18,9 7 102 6,8 6 437 6,1
HYUNDAI 129 3,9 107 1,5 153,2 2 593 2,5 2 158 2,0
BMW 121 3,7 465 6,6 -45,3 4 547 4,4 5 025 4,7
MERCEDES-BENZ 119 3,6 525 7,4 -52,4 4 882 4,7 5 631 5,3
DACIA 80 2,4 127 1,8 32,3 1 174 1,1 1 358 1,3
PEUGEOT 78 2,4 225 3,2 -27,2 2 652 2,5 2 591 2,4
HONDA 69 2,1 161 2,3 -10,0 2 437 2,3 2 934 2,8
SEAT 57 1,7 159 2,2 -24,7 1 598 1,5 1 801 1,7
CITROEN 54 1,6 152 2,1 -25,4 1 964 1,9 2 257 2,1
MAZDA 41 1,2 54 0,8 59,5 1 596 1,5 1 727 1,6
SUBARU 33 1,0 48 0,7 44,4 1 161 1,1 1 003 0,9
SUZUKI 24 0,7 14 0,2 260,1 642 0,6 648 0,6
MITSUBISHI 23 0,7 82 1,2 -41,1 1 664 1,6 1 578 1,5
FIAT 13 0,4 9 0,1 203,4 178 0,2 195 0,2
LEXUS 11 0,3 20 0,3 15,5 207 0,2 196 0,2
Total 3 307 100,0 7 091 100,0 -2,0 104 231 100,0 106 281 100,0
VV-AUTO TOTAL 629 19,0 1 482 20,9 -15,1 18 929 18,1 21 074 19,8

22. CUSTOMER ORDER BACKLOG
22
4 561
5 146
5 4055 353
4 956
4 5704 4814 572
5 168
5 6035 5425 405
4 615
5 018
5 3655 313
4 827
4 598
4 0144 015
4 655
5 208
4 8545 014
4 666
5 188
5 7835 639
4 893
4 353
3 7903 946
4 934
5 669
5 380
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
01/13
03/13
05/13
07/13
09/13
11/13
01/14
03/14
05/14
07/14
09/14
11/14
1/15
3/15
5/15
7/15
9/15
11/15
Customer order backlog (pcs) Rolling average 12 mth (pcs)