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KESKO SEEKS GROWTH IN ALL ITS THREE BUSINESS DIVISIONS KESKO INVESTOR PRESENTATION 2026
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KESKO TODAY 2 #1 Leading trading sector company in Northern Europe with retail and B2B sales of €15bn Sustainability at the core of the strategy Market cap €8.5bn with ~125,000 shareholders ~39,000 employees in the whole K Group,1,800 stores, 3 divisions, comprehensive digital services in 8 countries 2025 2024 Net sales, € million 12,474.7 11,920.1 Operating profit, € million* 654.9 650.1 Operating margin, %* 5.3 5.5 Profit before tax, € million* 533.8 543.0 Cash flow from operating activities, € million 879.7 1,008.2 Return on capital employed, %* 10.4 11.3 Capital expenditure, € million 735.7 675.9 *comparable KEY FINANCIALS Retails sales and number of employees excl. Kesko Senukai joint venture
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3 KESKO SEGMENT KEY FIGURES Grocery trade €6,447m Car trade €1,365m Building and technical trade €4,686m Car trade €83.1m 6.1% €654.9m 5.3% NET SALES OPERATING PROFIT 2025, division figures include common functions and eliminations Grocery trade €418.1m 6.5% B2C-sales ~16% B2B-sales ~41% Sales to K-retailers ~43% €12,475m€12,475m Building and technical trade €178.6m 3.8% Comparable figures
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VISION BUSINESSES COMPETITIVE ADVANTAGES STRATEGIC TARGETS PURPOSE THE LEADING AND MOST ATTRACTIVE TRADING SECTOR GROWTH COMPANY IN NORTHERN EUROPE GROCERY TRADE BUILDING AND TECHNICAL TRADE CAR TRADE TOWARDS BETTER TRADE EVERY DAY – CUSTOMER AND QUALITY IN EVERYTHING WE DO 4 DELIVERING PROFITABLE GROWTH STRENGTHENING MARKET POSITION INCREASING CUSTOMER VALUE BUILDING A FOCUSED B2C AND B2B BUSINESS PORTFOLIO K-RETAILERS & COMMERCIAL SPIRIT FORERUNNER IN SUSTAINABILITY TRUSTED K BRAND OMNICHANNEL CUSTOMER EXPERIENCE OPERATIONAL EXCELLENCE KESKO GROWTH STRATEGY PRINCIPLES I OPERATE DIRECTLY, OPENLY AND HONESTLY I SHOW THE PATH I’M ALL IN I CREATE TRUST
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STRONG POSITION IN FINNISH FOOD TRADE YIELDING GOOD RESULTS GROCERY TRADE 5
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GROCERY TRADE DIVISION IN BRIEF 2025 2024 2023 2022 Net sales, € million 6,447 6,381 6,352 6,125 Operating profit*, € million 418.1 438.0 444.8 460.4 Operating margin* 6.5% 6.9% 7.0% 7.5% Capital expenditure, € million 309.2 276.0 303.7 257.6 NET SALES MARKET SHARE IN 2024 (NIELSEN) 1,100 stores Almost 800 K Group grocery stores offer online grocery services 6,300 employees 860 K-retailers The leading foodservice provider in Finland 49.2% market share GROCERY TRADE 6 GROCERY STORE CHAINS FOODSERVICE *Comparable Grocery stores 73% Kespro 18% KCM non-food 9%
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7 GROCERY TRADE: TARGET TO MAINTAIN GOOD PROFITABILITY AND GAIN MARKET SHARE KEY ACTIONS: • STRENGTHENING STORE SPECIFIC BUSINESS IDEAS: Focusing on strengthening chosen competitive advantages and raising the level of stores. • DEVELOPING STORE SITE NETWORK: Targeted investments in the store site network focusing on growth centres. • IMPROVING PRICE COMPETITIVENESS: Strengthening price competitiveness with a systematic price program and improving price image. • CONTINUING GOOD DEVELOPMENT IN KESPRO: Further strengthening Kespro’s market-leading position. INVESTMENTS WILL HAVE A SLIGHT EFFECT ON PROFITABILITY . HOWEVER, EBIT DEVELOPMENT WILL BE STABLE AND PROFITABILITY CLEARLY ABOVE 6% DESPITE INVESTMENTS. GROCERY TRADE
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Figures for 2025 In brief: Operates in Finland, business comprises three grocery store chains with some 1,100 stores across the country operated by some 860 K-retailer entrepreneurs. Three different store formats. Also, online grocery services and popular private label products. Accounts for 82% of the division’s net sales. Private labels ~20% of total sales. Key figures: Net sales €5,280.8 million; operating profit €346.0 million; operating margin 6.6% Customers: B2C trade: some 1.6 million daily customer encounters and 4.5 million weekly visits to digital channels. Over 3.4 million members of the K-Plussa customer loyalty programme. K-ruoka app weekly users some 800,000 Growth drivers: GDP, purchasing power, consumer confidence, price competition, urbanisation and changes in population structure, customer data and insight. Market and market shares: Total Finnish grocery trade market €21–22 billion; Kesko the second biggest operator with a market share 33.7% (NielsenIQ 2025). Over 40 % market share in online grocery. Competitors and peers: Grocery store operators in Finland: S Group, Lidl International peers: Ahold Delhaize, Axfood, Coop Group, Tesco, Kroger, Carrefour 8 GROCERY TRADE DIVISION GROCERY STORE BUSINESS GROCERY TRADE
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KESKO AND K-RETAILERS Wholesale profit for Kesko Chain fees based on net sales Store site fees based on sales margin Other cost-based fees Wholesale, product strategy Chain agreement, chain steering Services and business supportKESKO Store concepts Chain selections, wholesale Steering retail prices and campaigns Responsible purchasing channels, purchasing alliances, logistics Own brands Data-driven management, customer data Marketing services Online stores Store chains Store sites Centralised services (IT, financial administration, other support processes) Retailer reserves K-RETAILERS Ensure customer satisfaction, results and profitability in their stores Store-specific business ideas based on customer data Synergies from the multi-store model Significant employers Purchases from local businesses Members of K-Retailers’ Association 9 GROCERY TRADE
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Figures for 2025 In brief: Operates in Finland, business comprises Kespro’s foodservice wholesale with 13 cash-and-carry outlets and online sales representing 70% of total sales, a wide range of services and digital tools e.g. training, menu development, reporting and forecasting, and Kespro’s own brand products: 50% of total sales. Key figures: Net sales €1,166.6 million; operating profit €72.1 million; operating margin 6.2% Customers: B2B trade: restaurants, cafés, workplace cafeterias, hotels and public operators such as municipalities and hospitals. Lunch and cafeteria type of sales account for ~ 70% of Kespro’s sales. Growth drivers: The growing popularity of eating out, GDP, purchasing power, consumer confidence, price competition, urbanisation and changes in population structure. Market and market share: Total Finnish foodservice market €2.5 billion; Kespro the market leader with a market share of 49.2% Competitors and peers: Foodservice in Finland: Valio Aimo, Meira Nova, Metro-tukku International peers: Marr, Snabbgross, Sysco 10 GROCERY TRADE DIVISION FOODSERVICE BUSINESS GROCERY TRADE
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• Urbanisation is expected to accelerate in Finland • Long-term store site investment programme to ensure Kesko’s competitiveness and market share development • Focus on: • the store site network in growth areas and larger units • To open new urban hypermarkets especially in Helsinki Metropolitan Area • To improve customer experience, sales efficiency and profitability in the stores • To improve the online shopping experience • Annual investment going forward: €200 – 250 million per year • By 2030, the store site network will be updated, in the right locations and meets upcoming legislative requirements related to energy efficiency and greenhouse gases GROCERY TRADE STORE SITE INVESTMENTS FOCUS ON GROWTH CENTRES Emphasising hypermarkets and other larger units GROCERY TRADE 11
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• New K-Citymarket in a shopping centre in Lempäälä near Tampere in 2025 • New K-Citymarket in Lahti city centre in autumn 2025, replacing K-Citymarket Paavola • New K-Citymarket in middle of Kivistö residential area, Vantaa, Helsinki metropolitan area in Jan. 2026 • New K-Citymarket in Haapaniemi in the city of Kuopio, in summer 2026 • New K-Citymarket in Ylivieska in autumn 2026, replacing an outdated hypermarket • New K-Citymarket in Porvoo city centre area in spring 2027, replacing an outdated hypermarket • Under planning: New K-Citymarket in Ritaportti in the city of Oulu, in spring 2027, new • Under planning: New K-Citymarket in Espoon keskus shopping centre in Finland’s second biggest city Espoo in autumn 2028 • In 2025, 48 remodelled stores and 15 new stores • In 2026, 64 remodelled stores and 20 new stores NEW URBAN HYPERMARKETS TO BE OPENED IN FINNISH GROWTH CENTRES Several new growth centre hypermarkets in pipeline GROCERY TRADE Espoontori, Espoon keskus, Espoo
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13 A GOOD RESULT IN A CHALLENGING ECONOMIC CYCLE BUILDING AND TECHNICAL TRADE
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2025 2024 2023 2022 Net sales, € million 4,686 4,352 4,193 4,591 Operating profit*, € million 178.6 169.1 212.5 323.8 Operating margin* 3.8% 3.9% 5.1% 7.1% Capital expenditure, € million 279.7 293.7 273.0 108.2 BUILDING AND TECHNICAL TRADE IN BRIEF 14 Leading operator in building and technical trade in Northern Europe B2B trade accounts for more than 80% of net sales 80% Customer segments: Technical professionals, professional builders and consumers Division’s number of employees: some 6,500 NET SALES * comparable BUILDING AND TECHNICAL TRADE TECHNICAL TRADE BUILDING AND HOME IMPROVEMENT TRADE K-rauta Finland 19% Onninen Finland 24% K-Bygg 7%Onninen Sweden 3% Byggmakker Norway 11% Onninen Norway 11% Davidsen Denmark 15% Onninen Poland 8% Onninen Baltic contries 3%
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15 BUILDING AND TECHNICAL TRADE: FOCUSING ON SECURING PROFITABILITY AND GENERATING CASH FLOW KEY ACTIONS: • FINLAND: Continuing growth and winning market share. • SWEDEN AND NORWAY: Stabilising and improving business performance. Integration of acquired companies. • DENMARK: Finalising the integration of Davidsen and improving performance through growth. • GROWTH THROUGH ACQUISITIONS: M&A to boost profitable growth in Northern Europe. THE LONG-TERM STRATEGIC TARGET OF 6-8 % EBIT MARGIN IS STILL VALID. BUILDING AND TECHNICAL TRADE
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BUILDING AND TECHNICAL TRADE TECHNICAL TRADE Figures for 2025 In brief: Operates in 8 countries. Kesko subsidiary Onninen offers technical wholesale products and services (offering varies between countries) in stores, online and via on-site solutions. Finland accounts for 49% of net sales Key figures: Net sales €2,285.4 million; operating profit €89.4 million; operating margin 3.9% Growth drivers: Urbanisation, green transition, building and construction work becoming more technical and being outsourced to professionals, growing renovation need and infrastructure investment debt, digitalisation, market consolidation Market and market shares: Total market (est.) for 8 countries (incl. Denmark) €22 bn; Kesko’s market shares Finland 44% (market leader), Sweden 11% (infra-structure), Norway 39% (electricals)*, Poland 6% , Estonia 14%, Latvia 5%, Lithuania 4% Competitors and peers: Dahl, Ahlsell, Rexel, Grainger, Wurth, Sanistål, Elektroskandia, Solar, Sonepar 16 BUILDING AND TECHNICAL TRADE Customers: 100% B2B trade – customers include technical contractors like plumbers and electricians, industry, infrastructure builders, and retailers
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Market data 2024 *Norway: Currently Kesko operates only in electrical market (Virke) **Sweden: Currently Kesko operates only in water & sewage and infra markets (SEG+RGF) Total market size ~€22 billion Technical trade Market size (€bn) 2.9 Market share 19% Market share of current operating market (2025) 39%* Technical trade Market size(€bn) 6.3 Market share 2% Market share of current operating market (2025) 11%** Technical trade Retail market (€bn) 3.1 Technical trade Market size (€bn) 2.4 Market share (2025) 44% Technical trade Market size (€bn) 2.2 Market share (2025) 14%, 5%, 4% Technical trade Market size (€bn) 6.1 Market share (2025) 6% TECHNICAL TRADE – OPPORTUNITIES FOR FURTHER GROWTH OUTSIDE FINLAND 17 BUILDING AND TECHNICAL TRADE
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BUILDING AND TECHNICAL TRADE BUILDING AND HOME IMPROVEMENT Figures for 2025 In brief: Operates in 8 countries; offers products and services for building, renovation, garden, interior decoration and home furnishing through various store chains, including K-Rauta (FI), K-Bygg (SE), Byggmakker (NO), Kesko Senukai (Baltics), Davidsen (DK). Finland 36% of net sales Key figures: Net sales €2,471.9 million; operating profit €75.3 million; operating margin 3.0% Customers: 68% building professionals, 32% consumers (DIY) Growth drivers: Urbanisation, green transition, building and construction work becoming more technical and being outsourced to professionals, growing renovation need and infrastructure investment debt, digitalisation, market consolidation Market and market shares: Total market (est.) for 8 countries€25 bn; Kesko’s market shares Finland 51% (market leader), Sweden 6%, Norway 12%, Denmark 17% Competitors and peers: Stark, Beijer, Optimera, Mestergruppen, Bygma, Travis Perkins, Ferguson 18 BUILDING AND TECHNICAL TRADE
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Professiona lbuilders Consumers Retail market (€bn) 3.1 1.7 Market share (2025) 12% Professiona l builders Consumers Retail market (€bn) 3.4 2.3 Market share (2025) 6% Professiona l builders Consumers Retail market (€bn) 1.6 0.9 Market share (2025) 51% Total market size ~€18 billion BUILDING AND HOME IMPROVEMENT – STILL FURTHER POSSIBILITIES ESPECIALLY OUTSIDE FINLAND Professiona l builders Consumers Retail market (€bn) 3.4 1.3 Market share (2025)* 17% 19 BUILDING AND TECHNICAL TRADE Market data 2024 *Denmark incl. Roslev Trælasthandel A/S, Tømmergaarden A/S and CF Petersen & Søn A/S
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ACQUISITIONS HAVE PLAYED A SIGNIFICANT ROLE IN INTERNATIONAL GROWTH 21 4/2016 Suomen Lähikauppa €936 million 6/2016 Onninen €1,465 million 12/2016 AutoCarrera €49 million 6-7/2018 Reinin Liha and Kalatukku E. Eriksson €31 million 7/2018 Skattum & Gipling €245 million 10/2018 1A Group e-commerce €41 million 3/2020 MIAB €18 million 9/2020 Carlsen Fritzøe €201 million 9/2020 Bygg&Interiör €14 million 1/2019 Sørbø Trelast and Tau & Jørpel and Bygg €24 million 3/2019 Audi and SEAT businesses from Länsiauto and Huittisen Laatuauto €96 million 5/2019 Fresks Group €205 million 7/2019 VW, Audi, SEAT businesses from Laakkonen €259 million 08/2021 Kungälvs Trä €33 million 09/2021 Byggarnas Partner €18 million 4/2022 Djurbergs Järnhandel €11 million 5/2022 Föllinge såg €6 million 7/2022 XL-BYGG Bergslagen €10 million 3/2023 Zenitec Sweden €13 million 3/2023 Elektroskandia Norge €250 million 1/2024 Davidsen A/S €427 million 2016 2018 2019 2020 2021 2022 2023 2024 Figures either net sales or sales figures published in connection with the acquisition 1/2025 Roslev Trælasthandel A/S €104 million 4/2025 CF Petersen & Søn A/S €113 million 5/2025 Tømmergaarden A/S €185 million 2025 BUILDING AND TECHNICAL TRADE
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MARKET SHARE IN DANISH BUILDERS’ MERCHANT ~17% VIA ACQUISITIONS 22 DAVIDSEN KESKO SUBSIDIARY AS OF 1 FEB. 2024 • Financials: 2023 net sales €427 million, operating profit €7 million • Market share: ~30% in Southern Denmark, ~10% in the whole country; 23 stores of which 19 owned by Davidsen • The debt-free enterprise value for 100% of the company was approximately €190 million (DKK 1,417.15 million), of which Kesko’s share approximately €170 million Tømmergaarden A/S PART OF DAVIDSEN AS OF 1 JUNE 2025 • Financials: 2024 net sales €191 million, operating profit €5.5 million • Market share: ~11% in Northern and Central Jutland, 17 fully-owned stores Roslev Trælasthandel A/S PART OF DAVIDSEN AS OF 1 FEBRUARY 2025 • Financials: 2024 net sales €103million, operating profit €2.8 million • Market share: ~9% in Central Jutland, 4 fully-owned stores CF Petersen & Søn A/S PART OF DAVIDSEN AS OF 1 MAY 2025 • Financials: 2024 net sales €109 million, operating profit €3.4 million • Market share: ~8% in Zealand, 5 fully-owned stores a Operating profit excluding the impact of IFRS 16 The combined debt-free enterprise value of the three companies approx. €222 million, of which Kesko’s share approx. €200 million KESKO IN DENMARK • Kesko expanded its operations to Denmark by acquiring the builders' merchant chain Davidsen in 2024, Kesko holds 90% of shares in Davidsen • Following the acquisitions, Davidsen has a nationwide network of building and home improvement stores, with focus on B2B customers • Post-acquisitions, Davidsen’s sales amount to some €800 million, with a total market share of 17% BUILDING AND TECHNICAL TRADE
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23 BUILDING AND TECHNICAL TRADE LONG-TERM EBIT-% TARGET INTACT Time EBIT-% 2018 2025 Kesko 2.4% Target 6-8% 8 6 4 2 0 Kesko 3.8% Kesko 7 . 1% 2021, 2022 BUILDING AND TECHNICAL TRADE
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24 GOOD RESULT IN CAR TRADE CAR TRADE
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25 Market share in new cars in 2025 (incl. passenger cars and vans) 17.3% K-Auto is the leading and most interesting automotive company in Finland Importing and sales of attractive and high-quality new cars. Significant multi-brand used car sales in Finland. Comprehensive offering of car maintenance and repair services including nationwide K-Lataus EV charging network. CAR TRADE NET SALES €1,196m 2025 CAR TRADE IN BRIEF 2025 2024 2023 2022 Net sales, € million 1,365 1,209 1,262 1,125 Operating profit*, € million 83.1 69.3 82.6 64.3 Operating margin* 6.1% 5.7% 6.5% 5.7% Capital expenditure, € million 125.0 89.0 80.3 44.7' One unified brand for over million customers * Comparable CAR TRADE Number of employees: Approx. 1,500 ‘Excluding sports trade ‘Other’ consist primarily of car leasing services
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26 CAR TRADE: FOCUSING ON PERFORMING BETTER THAN THE MARKET IN ALL BUSINESSES KEY ACTIONS: • CONTINUING WITH GROWTH STRATEGY: Major turnaround and continuous development establish a robust foundation for the next strategy period. • MAINTAINING THE BALANCED BUSINESS PORTFOLIO: New cars, used cars and services. • COOPERATION WITH THE VOLKSWAGEN GROUP: Continuing the good cooperation with Volkswagen Group and Porsche AG. • Continuing as a strong market leader in sports trade. SOLID EBIT DEVELOPMENT #1 IN BRAND AWARENESS AND PREFERENCE CAR TRADE
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27 CAR TRADE Figures for 2025 In brief: Operates in Finland. The whole value chain - imports and sells Volkswagen Group car brands, sells used cars, and offers car- related services e.g. servicing, leasing, EV charging. Division also includes two sports trade chains. Key figures: Net sales €1,364.8 million; operating profit €83.1 million; operating margin 6.1% Of which sports trade net sales €168.8 million, operating profit €8.3 million, operating margin 4.9% Customers: Primarily Finnish consumers, also companies when leasing cars or commercial vehicles Growth drivers: E-mobility, updating Finland’s outdated vehicle stock, digitalisation changing customer behaviour and helping to improve operational efficiency, new competitors entering European markets Market and market shares: Total first registrations of new cars incl. vans in Finland approx. 70,600 in 2025, of which Kesko’s K-Auto accounted for some 17.3% In Sports trade: 24 %, market leader in Finland Competitors and peers: Car trade: Veho, Kamux, Saka, Hedin, Rinta-Jouppi, Wetteri Sports trade: XXL, Stadium CAR TRADE
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28 OTHER STRATEGIC THEMES
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GROCE RY TRADE BUILDING AND TECHNICAL TRADE CAR TRADE ONE UNIFIED FOCUS : OPERATING ENVIRONMENT AND MEGATRENDS AFFECTING KESKO 29 BUSINESS & CONSUMER CONFIDENCE URBANISATION & DEMOGRAPHIC CHANGES CLIMATE CHANGE & GREEN TRANSITION INDIVIDUALITY & EFFORTLESSNESS DIGITALISATION & AI GLOBAL POLITICAL & ECONOMICAL UNCERTAINTY
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KESKO STRATEGY SUMMARY 2024-2026 # The portfolio will most likely stay as is during 2024-2026. The focus is on maintaining and further developing current businesses. # Targeting growth and profitability improvement as outlook strengthens in construction in 2025-2026. # In grocery trade, focusing on maintaining profitability and gaining market share. Raising the level of store-specific business ideas, developing store site network and improving price competitiveness as main focus areas. Further strengthening Kespro’s market-leading position. # In building and technical trade, focusing on securing profitability and generating cash flow. Finland continues winning market share, Sweden and Norway will focus on integrating past acquisitions and driving profitability. Organic and M&A growth in Denmark. # In car trade, continuing with growth strategy in new cars, used cars and services. Winning market in all businesses. # Highlighting the importance of people and culture. # Balance sheet moderately leveraged. 30
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31 KESKO’S FINANCIAL TARGETS INTACT TARGET 2025 OPERATING MARGIN, COMPARABLE OVER 6% 5.3% RETURN ON CAPITAL EMPLOYED, COMPARABLE, % OVER 14.5% 10.4% INTEREST-BEARING NET DEBT/EBITDA, EXCLUDING IFRS 16 IMPACT AT MAXIMUM 2.5 1.6
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SUSTAINABILITY IS INTEGRATED INTO OUR BUSINESS 32 We enable sustainable choices for our customers and drive change throughout the value chain SUSTAINABILITY STRATEGY VISION EXECUTION BY THE BUSINESS DIVISIONS FOCUS AREAS Climate and nature Value chain Our people Good governance Grocery trade Building and technical trade Car trade PROGRESS MEASURED USING INDICES AND ASSESSMENTS Dow Jones Sustainability Indices, MSCI ESG, Sustainalytics, and CDP
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FOCUS AREAS AND KEY ACTIONS GOOD GOVERNANCEVALUE CHAIN OUR PEOPLECLIMATE AND NATURE Reduce emissions in the value chain • Near-term scope 1 and 2 reductions by 2034 • Net zero emissions by 2050 • Challenge suppliers to set science-based climate target Promote biodiversity • Prevent biodiversity losses throughout the value chain by following the biodiversity roadmap • Set goals for our biodiversity impacts Take care of the water sufficiency • Mitigate water scarcity risks in the value chain through responsible water management and by encouraging suppliers to adopt water efficiency targets Enhance circular economy • Create new circularity business models • Enhance waste management and recycling Ensure sustainability in the value chain • Require all our suppliers from risk countries to be audited for social responsibility • Broaden the scope of supplier social responsibility audits by moving from a risk- country approach to a risk-based approach • Ensure suppliers' adherence to the K Code of Conduct, sustainability policies, and other relevant standards Enable sustainable choices for our customers • Increase the share of sustainable products of net sales • Make sustainable choices attractive through selections, data-based tools and communications Create sustainable value for entire society Increase the safety and wellbeing of our people • Support our people’s health, wellbeing and capabilities Foster diversity, equity and inclusion for our employees • Diverse and inclusive workplace • Equal pay • Gender balance on all levels of the organisation Commit to the K Code of Conduct Strengthen sustainability competencies Automate ESG data processes WE ENABLE SUSTAINABLE CHOICES FOR OUR CUSTOMERS AND DRIVE CHANGE THROUGHOUT THE VALUE CHAIN
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v KESKO LISTED IN SUSTAINABILITY INDICES 34 Sustainability indices are key tools for investors to assess the ESG level of corporations. Kesko is the only company in the world to have been on the Global 100 list every year since it was launched in 2005. Dow Jones Best-in-Class Indices (World and Europe)
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FORERUNNER IN TRADING SECTOR DIGITALISATION Using digitalisation to improve customer experience and make operations more efficient 35 Online and digital sales growing forcefully Digital sales over €2.2 billion Growth in online sales continues Continuously improving online efficiency and customer experience Data and analytics at the core of business operations K Group’s customer loyalty scheme in Finland has 3.4 million customers Data-based store-specific business ideas and services Extensive utilisation of data in everyday decision-making Versatile data services to partners Digitalisation of stores and processes proceeding at a fast pace Easy-to-use tools to make store processes more efficient Electronic shelf labels help improve customer satisfaction and make operations more efficient Electronic in-store displays make stores even more effective marketing channels Automation of supply chain and background processes Digitalisation increases customer loyalty Targeted marketing Personal benefits and offers Digital Plussa money Personal purchase trackers, e.g. carbon footprint calculator Seamless customer experience irrespective of channel
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SALES VIA DIGITAL CHANNELS OVER €2.2 BILLION 2025,, excl. VAT36
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37 BOARD'S DIVIDEND PROPOSAL TO KESKO’S ANNUAL GENERAL MEETING Strong investments in growth continue, proposal in line with dividend policy 96% 85% 77% 74% 70% 80% 81% 84% Accounting for share split Comparable EPS, Group 2017-2019 comparable EPS, continuing operations 96%100%
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~125,000 REGISTERED SHAREHOLDERS NUMBER OF SHAREHOLDERS HAS GROWN 35 000 45 000 55 000 65 000 75 000 85 000 95 000 105 000 115 000 125 000 01/19 04 07 10 01/20 04 07 10 01/21 04 07 10 01/22 04 07 10 01/23 04 07 10 01/24 04 07 10 01/2025 04 07 10 01/2026 BALANCED OWNERSHIP STRUCTURE 33.2 % 33.3 % 7.5 % 26.0 % Nominee-registered, foreign ownership Finnish institutions K-Retailers' Association and related parties (20,1% of votes) Households 38
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KESKO’S RESULT IMPROVED, NET SALES GREW IN ALL DIVISIONS KESKO FINANCIAL STATEMENTS RELEASE 2025 Jorma Rauhala President and CEO 5 February 2026
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40 SUMMARY OF 2025 * Comparable 2025 2024 Net sales, € million 12,474.7 11,920.1 Change in net sales, %* 2.3 -2.3 Operating profit, € million* 654.9 650.1 Operating margin, %* 5.3 5.5 Profit before tax, € million* 533.8 543.0 Earnings per share, basic, €* 1.07 1.11 Cash flow from operating activities, € million 879.7 1,008.2 • Kesko’s comparable operating profit improved, net sales grew in all divisions • Grocery trade: upturn in market share, profitability strong despite investments • Building and technical trade: comparable operating profit grew despite the challenging market; strong market position achieved in Denmark through acquisitions • Car trade: market position grew stronger, comparable operating profit increased significantly • Kesko estimates that its 2026 comparable operating profit will amount to €650–750 million • Operating environment and profit are estimated to improve in 2026 in all divisions and all operating countries • Strong growth investments continue, dividend proposal to the Annual General Meeting in line with dividend policy: €0.90 / share, payout ratio 84%
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41 NET SALES 2025 2.3% GROUP € million 1.0% 1.4% 12.0% DIVISIONS € million Change, comparable
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42 Comparable figures GROUP € million OPERATING PROFIT 2025 5.5% 5.7%6.9% 6.5%5.3% 3.9% 3.8% 6.1% DIVISIONS € million Operating margin
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43 RETURN ON CAPITAL EMPLOYED Comparable figures rolling 12 months %
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44 2025 2024 Cash flow from operating activities, € million 879.7 1,008.2 Liquid assets, € million 166.2 488.1 Capital expenditure, € million 735.7 675.9 Interest-bearing net debt excl. lease liabilities, € million 1,308.9 857.2 Interest-bearing net debt / EBITDA (excl. IFRS 16 impact, rolling) 1.6 1.1 Lease liabilities, € million 2,097.5 2,051.0 FINANCIAL POSITION Amount of net debt impacted by investments in store sites and acquisitions
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45 2025 2024 Store sites, € million 334.4 289.2 Acquisitions, € million 185.8 172.9 IT, € million 22.8 18.0 Other investments, € million 192.8 195.8 Total, € million 735.7 675.9 CAPITAL EXPENDITURE Main CAPEX: acquisitions in Denmark, investments in store sites and the Onnela logistics centre
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46 2025 2024 Fixed costs, € million 2,158.3 2,076.4 - Employee benefit expenses, € million 908.0 838.1 - Other expenses, € million 676.3 673.1 - Depreciation, € million 574.0 565.2 Cost ratio, % 17.3 17.4 EXPENSES Expenses have increased mainly due to acquisitions – without new acquisitions, expenses up by just 1.6% Figures excluding items affecting comparability
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47 Q4/2025 GOOD NET SALES DEVELOPMENT IN ALL DIVISIONS
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48 NET SALES Q4 3.1% GROUP € million 3.0% 2.9% 4.4% DIVISIONS € million Change, comparable
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49 Comparable figures GROUP € million OPERATING PROFIT Q4 5.6% 6.1%7.4% 6.8%5.4% 3.4% 3.7% 6.0% DIVISIONS € million Operating margin
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UPTURN IN MARKET SHARE, PROFIT AT A GOOD LEVEL GROCERY TRADE Q4 50
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51 GROCERY TRADE HIGHLIGHTS IN Q4 • Division net sales increased, comparable operating profit slightly down • Total grocery market grew by approximately 2.7% • K Group grocery sales up by 4.2% • K Group grocery store chains gained market share notably in Q4 and in H2/2025 • All our grocery chains won over market share in Q4 in their segments • K-Citymarket won over market share in the hypermarket segment in 2025 • Customer flows continued to grow thanks to the price programme and campaigns • Customer satisfaction clearly up for all our grocery chains • Kespro’s net sales up by 0.4% – gained market share • K-Citymarket non-food sales down by 0.4% • Online grocery sales up by 6.6% • Grocery price inflation in Finland approx. 1.8%*, price development in K Group stores 1.1% • Demand for quality products and services increased in our grocery stores * Statistics Finland, including VAT
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QUALITY x PRICE x NETWORK: STRATEGY WORKING QUALITY • Significant joint efforts with the retailers to raise quality levels • Store-specific business ideas at the core, special focus on fruit and vegetables, bread, and non-food • Digital reach risen to a new level: nearly 2 million customers, up by 365,000 PRICE • Long-term price programme launched in January 2025 • Customer flows up thanks to active campaigns and personalisedoffers NETWORK • 60 new or remodelledstores in 2025, incl. 2 new K-Citymarketstores • Network net impact on market share still negative in 2025 • Impact in 2026 expected to be neutral, network investments set to support market share development gradually in upcoming years • Annual investments in the store network around €200 – 250 million UPTURN IN MARKET SHARE IN JULY 2025 Based on market data by the Finnish Grocery Trade Association (PTY)
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CYCLE GRADUALLY RECOVERING, SALES AND PROFIT GREW STRONGER BUILDING AND TECHNICAL TRADE Q4 53
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54 • Division net sales increased and profit improved • Market demand continued weak especially in new housing construction • Net sales grew and profit improved clearly in both technical trade and building and home improvement trade. Signs of sales margins returning to normal levels throughout the division. • Finland, K-Rauta building and home improvement trade: result strong compared to the market • Finland, Onninen technical trade: the Q3 growth trend in sales continued, profit close to comparison period level • Norway: sales for Byggmakker and Onninen close to comparison period level, profit improved for both • Denmark: good sales development for Davidsen, integration of acquired firms completed • Sweden: K-Bygg store conversion completed • Credit risk well under control, €0.1 million written down for trade receivables past due date (€2.4 million) • Share of result from Kesko Senukai €12.1 million (Q4/2024: €10.1 million). Share of result in 2025 €19.5 million, slightly below the 2024 figure (€20.9 million) BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q4 Q4/2025 Q4/2024 Net sales, € million 1,182.3 1,056.3 Technical trade 595.3 570.6 Building & home improvement trade 604.9 502.2 Operating profit*, € million 44.3 36.1 Technical trade 22.7 20.0 Building & home improvement trade 11.4 7.8 Operating margin, %* 3.7 3.4 Technical trade 3.8 3.5 Building & home improvement trade 1.9 1.6 *Comparable
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55 PROFIT IMPROVEMENT IN 2025 CAME FROM COUNTRIES OUTSIDE FINLAND 2020 2021 2022 2023 2024 2025 Comparable operating profit FINLAND POLAND AND THE BALTICS DENMARKNORWAYSWEDEN € million Both K-Rauta and Onninen strong market leaders Closure of K-Rauta stores and/or their conversion into K-Bygg stores has impacted profit negatively Significant profit improvement for both Byggmakker and Onninen, Onninen’s market share increased Strong market position for Davidsen, integration-related costs impacted result (€5.7m expense recorded in the allocation of fair value) Good market position and stable profitability for Onninen 20 21 22 23 24 25 20 21 22 23 24 25 20 21 22 23 24 25 24 25 20 21 22 23 24 25
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56 SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales
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STRONG PERFORMANCE CONTINUED IN A CHALLENGING MARKET CAR TRADE Q4
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58 CAR TRADE HIGHLIGHTS IN Q4 • Net sales and comparable operating profit increased even though the market remained challenging • Market demand for new cars still muted, Q4 first registrations of passenger cars and vans -2.0%; first registrations of brands represented by Kesko +3.5% in Q4 • Good development attributable to extensive product and service portfolio and constant improvement of operational excellence • Market trend in sales of used cars from dealerships (in units) up by 1.8%, used car sales (in units) for K-Auto up by 13.3% • Service sales increased, growth sought especially in damage repairs and the servicing of cars five years or older • In sports trade, net sales and comparable operating profit decreased, but market share grew Net sales for the division's car trade businesses in 2025 K-AUTO, NET SALES ‘Other’ consists primarily of car leasing services
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59 PROFIT GUIDANCE AND OUTLOOK
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60 PROFIT GUIDANCE FOR 2026 Kesko Group’s profit guidance is given for the year 2026, in comparison with the year 2025. Kesko’s operating environment is estimated to improve in 2026, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2026. Kesko estimates that its 2026 comparable operating profit will amount to €650–750 million. Key uncertainties impacting Kesko’s outlook are developments in consumer confidence and investment appetites, as well as geopolitical crises and tensions.
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61 The operating environment for Kesko is estimated to improve in 2026 in all divisions and all operating countries. Kesko’s comparable operating profit is also estimated to improve in 2026 in all divisions and all operating countries. In grocery trade, B2C trade is estimated to pick up and the foodservice business to remain stable. In 2026, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network. The comparable operating profit for the grocery trade division is estimated to improve in 2026 compared to 2025. In building and technical trade, the cycle is expected to improve moderately in 2026 from an exceptionally low level. The comparable operating result for the building and technical trade division is estimated to improve in 2026 compared to 2025 in all Kesko operating countries. In the car trade market, new car sales are expected to remain muted compared to long-term levels, but to nonetheless grow compared to 2025. The net sales and comparable operating profit for Kesko’s car trade division are estimated to improve in 2026 compared to 2025. OUTLOOK FOR 2026
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62 DIVIDEND PROPOSAL
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63 BOARD'S DIVIDEND PROPOSAL TO KESKO’S ANNUAL GENERAL MEETING Strong investments in growth continue, proposal in line with dividend policy 96% 85% 77% 74% 70% 80% 81% 84% Accounting for share split Comparable EPS, Group 2017-2019 comparable EPS, continuing operations 96%100%
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64 SUMMARY
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65 # Nearly all businesses gained market share. # In grocery trade, market share turned around in H2/2025. Increase in customer visits, significant improvement in customer satisfaction. Strategy execution continues: quality, price and the store network. # In building and technical trade, clear increase in sales. Onnela logistics centre now in use. Construction cycle strengthening moderately. # In car trade, good sales development in new and used cars and services. Sports trade outperforming the market. # All divisions well-positioned for further market strengthening.
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MANAGEMENT AND IR CONTACT 67
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KESKO GROUP MANAGEMENT BOARD 68 Grocery trade President Ari Akseli Car trade President Johanna Ali Building and technical trade President Sami Kiiski President and CEO Jorma Rauhala EVP, Chief Financial Officer Anu Hämäläinen EVP, Human Resources Matti Mettälä EVP, Brand and Communications Karoliina Partanen EVP, Legal and Sustainability Lasse Luukkainen
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69 Hanna Jaakkola Vice President, Investor Relations tel.+358 40 5666 070 hanna.jaakkola@kesko.fi IR CONTACT
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