Presentaatio: Danske Road Show Chicago, Boston, New York

KESKO INVESTOR PRESENTATION

GROWTH STRATEGY EXECUTION DRIVING GROWTH

November 2024

KESKO TODAY

KEY FINANCIALS

Net sales, € million

Operating profit, € million*

Operating margin, %*

Profit before tax, € million*

Cash flow from operating activities, € million

Return on capital employed, %*

Q2/2024	2023	#1	Leading trading sector	~ 45 000 employees in the
company in Northern	whole K Group,1,800 stores,
		Europe with retail and B2B	3 divisions, comprehensive
11,781.4	11,783.8
	sales of nearly €16bn	digital services in 8 countries

649.7 712.0

5.5 6.0

544.8 630.4

1,049.6	1,049.5	Sustainability at the	Market cap ~€8bn
		core of the strategy	with ~115,000 shareholders

11.5 13.4

Capital expenditure, € million	725.3	678.9
*comparable	rolling 12 months

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KESKO SEGMENT KEY FIGURES

NET SALES

OPERATING PROFIT

Car trade	Grocery trade	B2C-sales
€1,178m		Sales to
€6,360m	~15%
		K-retailers
			~46%

Car trade

€63.5m

5.4%	Grocery trade

€440.0m

Building and

technical

Building and

6.9%

trade	€11,781m	€11,781m
€4,266m
		B2B-sales

technical

trade

€649.7m

5.5%

~39%

€173.6m

4.1%

3	Q3 2024 rolling 12 months, division figures include common functions and eliminations

GROCERY TRADE

STRONG POSITION IN FINNISH FOOD TRADE YIELDING GOOD RESULTS

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GROCERY TRADE

GROCERY TRADE DIVISION IN BRIEF

34.3%	MARKET		1,200 stores		6,300
SHARE IN				The leading foodservice
	More than 700 K Group		employees
	2023				provider in Finland
		grocery stores offer online		900
	(NIELSEN)
		grocery services			47.9% market share
				K-retailers
NET SALES
			2023		2022	2021
KCM
		Net sales, € million		6,351.6		6,124.7	5,909.0
non-food
10%
		Operating profit*, € million		444.8		460.4	442.9
Kespro
		Operating margin*		7.0%		7.5%	7.5%
18%
		Capital expenditure, € million		304		258	123
	Grocery
	72%		Cash flow from operating		494.2		436.8	493.4
			activities, € million

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STRONG POSITION IN ALL AREAS OF

FINNISH FOOD TRADE

• Strong No. 2 in Finnish grocery trade, with a market share of over 34%
• Finland's most extensive network of grocery stores, some 1,200 stores run by K-retailers
• Leading online grocery operator
• Some 1.6 million daily store visits by customers

• No. 1 in Finnish foodservice trade, with a market share of approx. 48%
• Finland's biggest online store for food, some 70% sales via digital channels
• Strong private labels, which account for over 50% of sales

• Advanced common operations: sourcing, logistics and IT

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GROCERY TRADE DIVISION

GROCERY STORE BUSINESS

In brief:

Operates in Finland, business comprises three grocery store chains with some 1,200 stores across the country operated by nearly 900 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.

Customers:

B2C trade: some 1.8 million daily customer encounters and 4.5 million weekly visits to digital channels.

Over 3.3 million members of the K-Plussa customer

loyalty programme.

Key figures:

Net sales €5,196.7 million; operating profit €369.8 million; operating margin 7.1%

Market and market shares:

Total Finnish grocery trade market €21-22 billion; Kesko the second biggest operator with a market share 34.3% (Nielsen). Market leader in Finnish online grocery.

Growth drivers:

GDP, purchasing power, price competition, urbanisation and changes in population structure, customer data and insight.

Competitors and peers:

Grocery store operators in Finland: S Group, Lidl

International peers: Ahold Delhaize, Axfood, Coop Group,

Tesco, Kroger, Carrefour

7 Figures for 2023

KESKO AND K-RETAILERS

KESKO

Store concepts

Chain selections, wholesale

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

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Wholesale,

product strategy

Chain agreement,

chain steering

Services and business

support

Wholesale profit

for Kesko

Chain fees based

on net sales

Store site fees based

on sales margin

Other cost-based

fees

K-RETAILERS

Responsible for ensuring 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

GROCERY TRADE DIVISION

FOODSERVICE BUSINESS

In brief:

Operates in Finland, business comprises Kespro's foodservice wholesale with 13 cash-and-carry outlets and online sales (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).

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.

Key figures:

Net sales €1,154.9 million; operating profit €75.0 million; operating margin 6.5%

Market and market share:

Total Finnish foodservice market €2.5 billion; Kespro the market leader with a market share of ~ 48%.

Growth drivers:

The growing popularity of eating out, GDP, purchasing power, price competition, urbanisation and changes in population structure.

Competitors and peers:

Foodservice in Finland: Valio Aimo, Meira Nova, Metro-tukku

International peers: Marr, Snabbgross, Sysco

9 Figures for 2023

BUILDING AND TECHNICAL TRADE

A GOOD RESULT IN

A CHALLENGING ECONOMIC CYCLE

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