SEGMENT DATA COMPARISON FIGURES FOR 2017 FOR KESKO GROUP’S CONTINUING OPERATIONS
On 16 February 2018, Kesko announced it will discontinue its building and home improvement trade operations in Russia and sell 12 building and home improvement store properties in Russia to Leroy Merlin Vostok LLC, a Russian division of the French Leroy Merlin. In the first interim report for 2018, the discontinuation of the building and home improvement trade operations in Russia will be presented as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The standard requires comparison data to be adjusted, thus prompting changes in the presentation of data for 2017.
In 2017, Kesko’s building and home improvement trade operations in Russia recorded net sales of €184 million and a comparable operating profit of €0.6 million. The tables below depict comparison figures for 2017 for key continuing operations segment data.
Segment data for continuing operations
| Net sales by segment, € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Grocery trade | 1,243 | 1,327 | 1,313 | 1,399 | 5,282 |
| Building and technical trade | 1,073 | 1,202 | 1,070 | 957 | 4,302 |
| Car trade | 245 | 234 | 212 | 218 | 909 |
| Common functions and eliminations | -2 | 0 | 0 | 1 | -1 |
| Continuing operations, total | 2,558 | 2,763 | 2,596 | 2,575 | 10,492 |
| Operating profit by segment, continuing operations, € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Grocery trade | 16.7 | 39.9 | 59.3 | 65.4 | 181.3 |
| Building and technical trade | 4.0 | 114.6 | 38.0 | 12.1 | 168.7 |
| Car trade | 10.0 | 7.6 | 8.8 | 6.7 | 33.1 |
| Common functions and eliminations | -11.4 | -10.3 | -9.4 | -13.4 | -44.5 |
| Continuing operations, total | 19.4 | 151.8 | 96.7 | 70.8 | 338.6 |
| Items in operating profit affecting comparability, continuing operations, € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Grocery trade | -9.7 | -10.6 | -0.2 | -1.7 | -22.1 |
| Building and technical trade | -1.8 | 79.8 | -2.7 | -1.8 | 73.5 |
| Car trade | - | - | - | - | - |
| Common functions and eliminations | -0.6 | -1.3 | -1.0 | -6.0 | -8.9 |
| Continuing operations, total | -12.1 | 67.9 | -3.8 | -9.5 | 42.5 |
| Operating profit by segment, comparable, continuing operations, € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Grocery trade | 26.4 | 50.5 | 59.4 | 67.0 | 203.4 |
| Building and technical trade | 5.8 | 34.8 | 40.7 | 14.0 | 95.2 |
| Car trade | 10.0 | 7.6 | 8.8 | 6.7 | 33.1 |
| Common functions and eliminations | -10.8 | -9.0 | -8.5 | -7.4 | -35.6 |
| Continuing operations, total | 31.5 | 83.8 | 100.5 | 80.4 | 296.2 |
The table below depicts figures for the speciality goods trade, which is included in the net sales and comparable operating profit for the building and technical trade division.
| Speciality goods trade, € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Net sales | |||||
| K-maatalous, Indoor Group Ltd, and Yamaha and Yamarin | 148 | 131 | 0 | - | 279 |
| Machinery trade and leisure trade | 85 | 103 | 117 | 80 | 384 |
| Speciality goods trade, total | 232 | 234 | 117 | 80 | 663 |
| Comparable operating profit | |||||
| K-maatalous, Indoor Group Ltd, and Yamaha and Yamarin | 3.6 | 5.2 | - | - | 8.7 |
| Machinery trade and leisure trade | -0.5 | 1.6 | 6.1 | 0.3 | 7.5 |
| Speciality goods trade, total | 3.0 | 6.8 | 6.1 | 0.3 | 16.2 |
Calculation of performance indicators
Kesko uses alternative performance measures to reflect business performance and profitability. These indicators should be examined together with the IFRS-compliant performance indicators.
Performance indicators reflecting comparable profit and profitability are used to improve the comparability of operational performance between periods. Gains and losses on disposal of real estate, shares and business operations, impairment charges and significant restructuring costs are identified as items affecting comparability. Gains on disposal have been presented within other operating income, and losses on disposal within other operating expenses in the income statement.
| Operating profit, comparable | Operating profit +/– items affecting comparability |
| Items affecting comparability | – gains on disposal + losses on disposal + impairment charges +/- structural arrangements |
Reconciliation of performance indicators to IFRS financial statements
| € million | 1-3/2017 | 4-6/2017 | 7-9/2017 | 10-12/2017 | 1-12/ 2017 |
| Items in operating profit affecting comparability, continuing operations | |||||
| Gains on disposal | 0.3 | 81.8 | 0.6 | 0.6 | 83.4 |
| Losses on disposal | -0.4 | -1.2 | -0.1 | -0.1 | -1.8 |
| Impairment charges | - | - | -0.5 | - | -0.5 |
| Structural arrangements | -12.1 | -12.6 | -3.9 | -10.1 | -38.6 |
| Items in operating profit affecting comparability, continuing operations, total | -12.1 | 67.9 | -3.8 | -9.5 | 42.5 |
| Operating profit, comparable, continuing operations | |||||
| Operating profit | 19.4 | 151.8 | 96.7 | 70.8 | 338.6 |
| Net of | |||||
| Items in operating profit affecting comparability | -12.1 | 67.9 | -3.8 | -9.5 | 42.5 |
| Operating profit, comparable, continuing operations, total | 31.5 | 83.8 | 100.5 | 80.4 | 296.2 |
Further information is available from Jukka Erlund, Executive Vice President, Chief Financial Officer, telephone +358 105 322 113, Kia Aejmelaeus, Vice President, Investor Relations, telephone +358 105 322 533, and Eva Kaukinen, Vice President, Group Controller, telephone +358 105 322 338.
Kesko Corporation
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