Kesko Oyj : Kesko's interim report for the period 1 Jan. to 31 Mar. 2013

   Kesko Oyj : Kesko's interim report for the period 1 Jan. to 31 Mar. 2013

KESKO CORPORATION STOCK EXCHANGE RELEASE 25.04.2013 AT 09.00 1(28)

Financial performance in brief:

*The Group's net sales for January-March decreased by 6.9%.

* The retail and B2B sales (excl. VAT) of the K-Group (i.e. Kesko and chain
stores) for January-March decreased by 7.4%.

*The operating profit excluding non-recurring items was €18.6 million (€22.3
million).

*The Kesko Group's net sales for the next twelve months are expected to match
the level of the preceding twelve months. As a result of measures taken to
enhance business operations and cost savings, the operating profit excluding
non-recurring items for the next twelve months is expected to exceed the
operating profit excluding non-recurring items for the preceding twelve
months, unless the overall consumer demand significantly weakens. Capital
expenditure is expected to be lower compared to the capital expenditure for
the preceding twelve months.

Key performance indicators

                                                        1-3/2013  1-3/2012
Net sales, € million                                       2,159     2,318
Operating profit excl. non- recurring items, € million      18.6      22.3
Operating profit, € million                                 19.2      25.1
Profit before tax, € million                                15.8      25.0
Capital expenditure, € million                              41.5     104.1
Earnings per share, diluted, €                              0.11      0.16
Earnings per share excl. non-recurring items, basic, €      0.11      0.14
                                                       31.3.2013 31.3.2012
Equity ratio, %                                             51.7      52.8
Equity per share, €                                        22.62     22.56

FINANCIAL PERFORMANCE

Net sales and profit for January-March 2013
The Group's net sales in January-March 2013 were €2,159 million, which is 6.9%
down on the corresponding period of the previous year (€2,318 million). In
Finland, net sales decreased by 6.1% and in other countries by 11.0%.
International operations accounted for 14.7% (15.4%) of net sales. Net sales
grew in the food trade and declined in the other divisions.

1-3/2013                     Net sales, € Change, % Operating profit   Change,
                                  million                 excl. non- € million
                                                           recurring
                                                    items, € million
Food trade                          1,045      +3.5             48.2      13.5
Home and speciality goods
trade                                 345      -6.5            -17.8      -4.8
Building and home
improvement trade                     562     -10.7            -16.6      -7.6
Car and machinery trade               249     -29.3              7.8      -7.7
Common operations and
eliminations                          -42      -0.5             -3.0       2.9
Total                               2,159      -6.9             18.6      -3.7

The operating profit excluding non-recurring items for January-March was €18.6
million (€22.3 million), negatively affected by sales decrease in the car
trade, the building and home improvement trade and the department store trade.
Enhancement measures had a significant positive impact on profitability
performance. Operating expenses decreased by €18 million compared to the
previous year.

Operating profit was €19.2 million (€25.1 million). The operating profit
includes non-recurring gains on disposal of real estate in the amount of €0.6
million (€2.8 million). The Group's profit before tax for January-March was
€15.8 million (€25.0 million).

The Group's earnings per share were €0.11 (€0.16). The Group's equity per
share was €22.62 (€22.56).

In January-March, the K-Group's (i.e. Kesko's and the chain stores') retail
and B2B sales (VAT 0%) were €2,573 million, down 7.4% compared to the previous
year. The K-Plussa customer loyalty programme gained 19,906 new households in
January-March. At the end of March, there was 2,228,234 K-Plussa households
and 3.8 million K-Plussa cardholders.

Finance
In January-March, the cash flow from operating activities was €-58.7 million
(€-5.2 million). The cash flow from investing activities was €-41.9 million
(€-91.8 million). It included a €2.5 million (€19.5 million) amount of
proceeds from the sale of fixed assets.

The Group's liquidity remained at an excellent level in January-March. At the
end of the period, liquid assets totalled €411 million (€293 million).
Interest-bearing liabilities were €644 million (€446 million) and
interest-bearing net debt €233 million (€154 million) at the end of March.
Equity ratio was 51.7% (52.8%) at the end of the period.

In January-March, the Group's net finance costs were €3.3 million (€0.1
million). Interest expense was increased by the €250 million bond taken out in
September 2012 adding to the gross debt.

Taxes
The Group's taxes for January-March were €4.8 million (€7.3 million). The
effective tax rate was 30.3% (29.2%), affected by loss-making foreign
operations.

Capital expenditure
In January-March, the Group's capital expenditure totalled €41.5 million
(€104.1 million), or 1.9% (4.5%) of net sales. Capital expenditure in store
sites was €31.7 million (€90.3 million), in IT €5.6 million (€6.6 million) and
other capital expenditure was €4.2 million (€7.2 million). Capital expenditure
in foreign operations represented 36.5% (8.4%) of total capital expenditure.

Kesko's strategic focus areas and profitability programme
The key focus areas in Kesko's business operations are to strengthen sales
growth and the return on capital in all divisions, to exploit business
opportunities in e-commerce and in Russia, and to maintain good solvency and
dividend payment capacity.

As a result of a weakened general economic situation, tightened competition
and an increase in the level of costs, Kesko is implementing the profitability
programme announced previously, which aims to ensure price competitiveness and
to improve profitability. The profitability programme includes significant
measures aimed to increase sales, to enhance purchasing operations and to
adjust costs, working capital and capital expenditure.

The Group level cost saving target is a total of around €100 million. Cost
savings are implemented in all divisions and in all operating countries. Most
of the cost savings are expected to be achieved in 2013. Kesko's operating
expenses for the first quarter of 2013 were €438 million, down €-18 million
(-4.0%) on the previous year regardless of store site network expansion and
cost inflation.

The measures for staff cost enhancement were implemented as announced
previously. In addition to terminations, the reductions included reduced
working hours and retirement arrangements. In the first quarter, the
increasing effect of new store sites on the number of personnel was around 900
person-years compared to the previous year.

Other significant savings are implemented by adjusting especially marketing
and store site expenses and by centralising ICT purchases. In addition,
special enhancement measures are targeted at operations with low
profitability. Anttila's chain concepts are reformed and costs are adjusted,
an e-commerce based operating model is implemented in Musta Pörssi and its
store site network is strongly adjusted. The chain concept of Intersport's
business operations in Russia is reformed and unprofitable store sites are
closed. At the end of the reporting period, the store site network of
Intersport Russia comprised 21 (35) stores.

In the next few years, capital expenditure will be aligned with funds
generated from operations to some €200-300 million per year.

Personnel
In January-March, the average number of employees in the Kesko Group was
19,126 (19,143) converted into full-time employees. In Finland, the average
decrease was 239 people, while outside Finland, there was an increase of 221
people.

At the end of March 2013, the total number of employees was 22,881 (22,909),
of whom 12,298 (12,522) worked in Finland and 10,583 (10,387) outside Finland.
Compared to the end of March 2012, there was a decrease of 224 people in
Finland and an increase of 196 people outside Finland.

In January-March, the Group's staff cost was €153.3 million, an increase of
0.6% compared to the previous year.

SEGMENT INFORMATION

Seasonal nature of operations
The Group's operating activities are affected by seasonal fluctuations. The
net sales and operating profits of the reportable segments are not earned
evenly throughout the year. Instead, they vary by quarter depending on the
characteristics of each segment.

Food trade

                                                       1-3/2013  1-3/2012
Net sales, € million                                      1,045     1,010
Operating profit excl. non- recurring items, € million     48.2      34.7
Operating margin excl. non-recurring items, %               4.6       3.4
Capital expenditure,
€ million                                                  16.5      60.2
Net sales, € million                                   1-3/2013 Change, %
Sales to K-food stores                                      804      +3.1
Kespro                                                      188      +3.9
Others                                                       54      +9.1
Total                                                     1,045      +3.5

January-March 2013

In the food trade, the net sales for January-March were €1,045 million (€1,010
million), up 3.5%. During the same period, the grocery sales of K-food stores
increased by 1.5% (VAT 0%). In the grocery market, retail prices are estimated
to have changed by some 4% compared to the previous year (VAT 0%, Kesko's own
estimate based on the Consumer Price Index of Statistics Finland), and the
total market (VAT 0%) is estimated to have grown by some 3.5% in January-March
compared to the previous year (Kesko's own estimate).

In January-March, the operating profit excluding non-recurring items of the
food trade was €48.2 million (€34.7 million), or €13.5 million up on the
previous year. Profitability was improved by significant savings achieved from
enhanced operations. In addition, operating profit was increased by a €2.3
million (€-1.6 million) gain on measurement of derivatives used for hedging
electricity purchases. Operating profit was €48.2 million (€37.4 million). In
the comparative year, non-recurring income included €2.7 million of gains on
disposals of properties.

The capital expenditure of the food trade was €16.5 million (€60.2 million),
of which €14.6 million (€56.5 million) in stores sites.

In January-March 2013, two new K-supermarkets and one K-market were opened.
Renovations and extensions were carried out in a total of five stores.

The most significant store sites being built are a K-citymarket in the
Puuvilla shopping centre in Pori and a K-supermarket in Espoo, in
Pohjois-Haaga, Helsinki, in Jyväskylä, Säkylä and Ikaalinen. The objective in
Russia is to open three new food stores in 2013.

Numbers of stores as at 31 March        2013 2012
K-citymarket                              80   76
K-supermarket                            215  210
K-market (incl. service station stores)  450  456
K-ruoka, Russia                            1    0
Others                                   181  204

Home and speciality goods trade

                                                      1-3/2013  1-3/2012
Net sales, € million                                       345       369
Operating profit excl. non-recurring items, € million    -17.8     -12.9
Operating margin excl. non-recurring items, %             -5.2      -3.5
Capital expenditure,
€ million                                                  8.0      18.5
Net sales, € million                                  1-3/2013 Change, %
K-citymarket home and speciality goods                     140      -4.6
Anttila                                                     89     -17.4
Intersport, Finland                                         51     +14.1
Intersport, Russia                                           6     -23.6
Indoor                                                      44      -0.1
Musta Pörssi                                                10     -22.8
Kenkäkesko                                                   6      -4.7
Total                                                      345      -6.5

January-March 2013

In the home and speciality goods trade, the net sales for January-March were
€345 million (€369 million), down 6.5%. Consumer demand in the home and
speciality goods trade weakened during the first months of the year and sales
declined especially in the department store trade. The first quarter of the
year had three retail selling days less than in the previous year. Sales
performance was also impacted by the change in Musta Pörssi's business model
and the adjustment of the Intersport store site network in Russia.

The operating profit excluding non-recurring items of the home and speciality
goods trade for January-March was €-17.8 million (€-12.9 million).
Profitability was negatively impacted by a decrease in the sales and gross
margin of Anttila and K-citymarket Oy. During the reporting period,
significant cost savings were implemented. Operating profit was
€-17.7 million (€-12.9 million).

The capital expenditure of the home and speciality goods trade was €8.0
million (€18.5 million) in January-March.

A new Budget Sport opened in Lielahti, Tampere in March.

Numbers of stores as at 31 March                                 2013 2012
K-citymarket, home and speciality goods*                           81   75
Anttila department stores*                                         31   31
Kodin1 department stores for home goods and interior decoration*   13   11
Intersport                                                         62   58
Budget Sport*                                                      11    8
Asko and Sotka                                                     84   82
Musta Pörssi*                                                      25   34
Kookenkä*                                                          48   47
Anttila, Baltics (NetAnttila)*                                      3    3
Intersport, Russia                                                 21   35
Asko and Sotka, Baltics*                                           10    9

* incl. online stores

Building and home improvement trade

                                                    1-3/2013          1-3/2012
Net sales, € million                                     562               629
Operating profit excl. non-recurring items, €
million                                                -16.6              -9.0
Operating margin excl. non-recurring items, %           -3.0              -1.4
Capital expenditure, € million                          12.5              11.7
Net sales,
€ million                                           1-3/2013         Change, %
Rautakesko, Finland                                      281              -6.4
K-rauta, Sweden                                           38             -13.9
Byggmakker, Norway                                       101             -30.3
Rautakesko, Estonia                                       12              +3.9
Rautakesko, Latvia                                        10              +2.5
Senukai, Lithuania                                        48              -4.7
Stroymaster, Russia                                       51              -3.7
OMA, Belarus                                              21             +35.0
Total                                                    562 -10.7

January-March 2013

In the building and home improvement trade, the net sales for January-March
were €562 million (€629 million), down 10.7%. The trend in construction
activity was weak in all of Rautakesko's operating countries. Sales decreased
especially in the B2B trade and in basic building materials.

In Finland, the net sales for January-March were €281 million (€300 million),
a decrease of 6.4%. The building and home improvement product lines
contributed €191 million to the net sales in Finland, a decrease of 10.3%. The
agricultural supplies trade contributed €90 million to net sales, up 3.1%.

The retail sales of the K-rauta and Rautia chains in Finland decreased by 8.8%
to €170 million (VAT 0%). The sales of Rautakesko B2B Service were down 20.8%.
The retail sales of the K-maatalous chain were €93 million (VAT 0%), up 4.3%.

In January-March, the net sales from the foreign operations of the building
and home improvement trade were €281 million (€329 million), a decrease of
14.6%. In Russia, net sales decreased by 2.2% in terms of roubles. In Norway,
net sales decreased by 31.7% in terms of krones, which was partly attributable
to the changes that took place in the Byggmakker chain last year. A decision
has been made to introduce new chain agreements in Norway starting from 1
January 2014. In Sweden, net sales were down 17.3% in terms of kronas. Foreign
operations contributed 50.0% (52.3%) to the net sales of the building and home
improvement trade.

The operating profit excluding non-recurring items of the building and home
improvement trade for January-March was €-16.6 million (€-9.0 million), down
€7.6 million compared to the previous year. The fall is due to weak sales
performance. Operating profit was €-16.1 million (€-9.0 million).

In January-March, the capital expenditure of the building and home improvement
trade totalled €12.5 million (€11.7 million), of which 49.2% (66.0%) abroad.
Capital expenditure in store sites represented 97.0% of total capital
expenditure.

Numbers of stores as at 31 March 2013 2012
K-rauta*                           42   41
Rautia*                            99  103
K-maatalous*                       83   86
K-rauta, Sweden                    21   22
Byggmakker, Norway                 89  107
K-rauta, Estonia                    8    9
K-rauta, Latvia                     8    8
Senukai, Lithuania                 17   17
K-rauta, Russia                    14   14
OMA, Belarus                        9    6

*In 2013, 1 K-rauta store and 48 Rautia stores also operated as K-maatalous
stores,

in 2012, 1 K-rauta store and 49 Rautia stores also operated as K-maatalous
stores.

Car and machinery trade

                                              1-3/2013  1-3/2012
Net sales, € million                               249       353
Operating profit excl.
non-recurring items,
€ million                                          7.8      15.5
Operating margin excl. non-recurring items, %      3.1       4.4
Capital expenditure, € million                     3.9      12.7
Net sales, € million                          1-3/2013 Change, %
VV-Auto                                            193     -33.3
Konekesko                                           57     -11.9
Total                                              249     -29.3

January-March 2013

In January-March, the net sales of the car and machinery trade were €249
million (€353 million), down 29.3%.

VV-Auto's net sales for January-March were €193 million (€289 million), a
decrease of 33.3%. In the previous year, sales were increased by the car tax
change effective 1 April 2012. In January-March, the combined market
performance of first time registered passenger cars and vans was -43.1%.

In January-March, the combined market share of passenger cars and vans
imported by VV-Auto was 19.9% (19.9%).

Konekesko's net sales for January-March were €57 million (€65 million), down
11.9% compared to the previous year. Net sales in Finland were €39 million,
down 22.0%. The net sales from Konekesko's foreign operations were €19
million, up 17.2%.

In January-March, the operating profit excluding non-recurring items of the
car and machinery trade was €7.8 million (€15.5 million), down €7.7 million
compared to the previous year. Regardless of the difficult market situation,
profitability remained at a good level.

The operating profit for January-March was €7.8 million (€15.5 million).

The capital expenditure of the car and machinery trade for January-March was
€3.9 million (€12.7 million).

Numbers of stores as at 31 March 2013 2012
VV-Auto, retail trade              10   10
Konekesko                           1    2

Changes in the Group composition
No significant changes took place in the Group composition during the
reporting period.

Shares, securities market and Board authorisations
At the end of March 2013, the total number of Kesko Corporation shares was
98,786,940, of which 31,737,007, or 32.1%, were A shares and 67,049,933, or
67.9%, were B shares. At 31 March 2013, Kesko Corporation held 608,591 own B
shares as treasury shares. Treasury shares accounted for 0.91% of the number
of B shares and 0.62% of the total number of shares, and 0.16% of votes
carried by all shares of the company. The total number of votes carried by all
shares was 384,420,003. Each A share entitles to ten (10) votes and each B
share to one (1) vote. The company cannot vote with treasury shares and no
dividend is paid on them. At the end of March 2013, Kesko Corporation's share
capital was €197,282,584. During the reporting period, the number of B shares
was increased once to account for the shares subscribed for with the options
based on the 2007 option scheme. The increase was made on 11 February 2013
(74,600 B shares) and announced in a stock exchange notification on the same
day. The shares subscribed for were listed for public trading on NASDAQ OMX
Helsinki (Helsinki Stock Exchange) with the old B shares on 12 February 2013.
The subscription price of €1,046,274 received by the company was recorded in
the reserve of invested non-restricted equity.

The price of a Kesko A share quoted on NASDAQ OMX Helsinki was €24.39 at the
end of 2012, and €25.11 at the end of March 2013, representing an increase of
3.0%. Correspondingly, the price of a B share was €24.77 at the end of 2012,
and €24.37 at the end of March 2013, representing a decrease of 1.6%. In
January-March, the highest A share price was €25.99 and the lowest was €24.35.
For B share, they were €25.87 and €23.35 respectively. In January-March, the
Helsinki stock exchange (OMX Helsinki) All-Share index was up by 5.8% and the
weighted OMX Helsinki CAP index by 5.5%. The Retail Index was down by 2.0%.

At the end of March 2013, the market capitalisation of A shares was €797
million, while that of B shares was €1,619 million, excluding the shares held
by the parent company. The combined market capitalisation of A and B shares
was €2,416 million, a decrease of €2 million from the end of 2012. In
January-March 2013, a total of 0.3 (0.6) million A shares were traded on the
Helsinki stock exchange, down 55%. The exchange value of A shares was €7
million. The total number of B shares traded was 10.1 (20.6) million, down
51%. The exchange value of B shares was €248 million.

The company operates the 2007 option scheme for management and other key
personnel, under which the share subscription period of 2007B share options
runs from 1 April 2011 to 30 April 2013, and that of 2007C share options runs
from 1 April 2012 to 30 April 2014. The share options have been included on
the official list of the Helsinki stock exchange since the beginning of the
share subscription periods. During the reporting period, a total of 294,347
2007B share options were traded at a total value of €749,548, and
correspondingly, a total of 88,901 2007C share options were traded at a total
value of €1,011,589. The share subscription period of 2007A share options
under the option scheme and their trading on the official list ended in 2012.

The Board has the authority, granted by the Annual General Meeting of 16 April
2012 and valid until 30 June 2015, to issue a total maximum of 20,000,000 new
B shares. The shares can be issued against payment for subscription by
shareholders in a directed issue in proportion to their existing shareholdings
regardless of whether they consist of A or B shares, or, deviating from the
shareholder's pre-emptive right, in a directed issue, if there is a weighty
financial reason for the company, such as using the shares to develop the
company's capital structure, and financing possible acquisitions, investments
or other arrangements within the scope of the company's business operations.
The amount paid for the shares is recognised in the reserve of invested
non-restricted equity. The authorisation also includes the Board's authority
to decide on the share subscription price, the right to issue shares against
non-cash consideration and the right to make decisions on other matters
concerning share issuances.

In addition, the Board has the authority, granted by the Annual General
Meeting of 8 April 2013 and valid until 30 September 2014 to decide on the
acquisition of a maximum of 500,000 own B shares, and the authority, valid
until 30 June 2017, to decide on the issuance of a maximum of 1,000,000 own B
shares held as treasury shares by the company.

On 4 February 2013, the Board decided to grant own B shares held as treasury
shares by the company to people included in the target group of the vesting
period, based on the authority to issue own shares, valid prior to the Annual
General Meeting held on 8 April 2013, and the fulfilment of the vesting
criteria of the 2012 vesting period of Kesko's three-year share-based
compensation plan. The issuance of 66,331 own B shares, referred to above, was
announced in a stock exchange release on 5 February 2013 and on 5 April 2013.
The latter release also announced that 866 own B shares had been returned to
the company without consideration. Further information on the Board's
authorisations is available at www.kesko.fi.

At the end of March 2013, the number of shareholders was 44,692, which was 138
more than at the end of 2012. At the end of March, foreign ownership of all
shares was 19%. At the end of March, foreign ownership of B shares was 28%.

Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting
period.

Key events during the reporting period
Changes, effective 5 February 2013, took place in Kesko's Corporate Management
Board. Arja Talma, M.Sc. (Econ.), eMBA, 50, was appointed Senior Vice
President responsible for the Kesko Group's store sites and investments. Terho
Kalliokoski, M.S. (Econ.), 51, was appointed Rautakesko Ltd's President. Jorma
Rauhala, M.Sc. (Econ.), 47, was appointed Kesko Food Ltd's President. Starting
from 5 February 2013, Kesko's Corporate Management Board is composed of Matti
Halmesmäki, Chair; Jorma Rauhala, food trade; Minna Kurunsaari, home and
speciality goods trade and Kesko's customer information and e-commerce
projects; Terho Kalliokoski, building and home improvement trade; Pekka Lahti,
car and machinery trade; Arja Talma, store sites and investments; Jukka
Erlund, CFO, accounting, finance and IT management; and Matti Mettälä, human
resources and stakeholder relations. (Stock exchange release on 5 February
2013)

Events after the reporting period
On 5 April 2013, Kesko transferred a total of 66,331 own B shares (KESBV) held
by the company as treasury shares to the about 150 Kesko management employees
and other named key persons included in the target group of the 2012 vesting
period of Kesko's three-year share-based compensation plan. In the same
context, 866 B shares, originally transferred to a person included in the
target group of the 2011 vesting period of the share-based compensation plan,
were returned to Kesko. After the transfer and return of shares, Kesko holds
543,126 own B shares as treasury shares. (Stock exchange release on 5 April
2013)

With effect from 1 January 2013, the Kesko Group adopted the revised IAS 19
Employee benefits standard. The amendment had an impact on the Kesko Group's
pension costs and profit, as well as the pension assets and equity on the
balance sheet. Resulting from the amendment, the Kesko's consolidated income
statement, consolidated statement of financial position and segment
information for 2012 were updated in compliance with the requirements
prescribed in the revised standard. (Stock exchange release on 11 April 2013)

Resolutions of the 2013 Annual General Meeting and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting, held after the reporting period of
8 April 2013, adopted the financial statements for 2012 and discharged the
Board members and the Managing Director from liability. The General Meeting
also resolved, as proposed by the Board, to distribute €1.20 per share, or a
total of €117,892,576.80 as dividends. The dividend pay date was 18 April
2013. The General Meeting resolved that the number of Board members is
unchanged at seven, elected PricewaterhouseCoopers Oy as the company's
auditor, with APA Johan Kronberg as the auditor with principal responsibility,
and approved the Board's proposals for amending Article 9 of the Articles of
Association concerning the delivery of the notice of a General Meeting, for
authorising the Board to acquire a maximum of 500,000 own B shares and to
issue a maximum of 1,000,000 own B shares held as treasury shares by the
company. The General Meeting also approved the Board's proposal that it be
authorised to decide on the donations in a total maximum of €300,000 for
charitable or corresponding purposes until the Annual General Meeting to be
held in 2014.

The organisational meeting of the company's Board of Directors, held after the
Annual General Meeting, kept the compositions of the Audit Committee and the
Remuneration Committee unchanged. The Board's Audit Committee is composed of
the Board members Maarit Näkyvä (Ch.), Seppo Paatelainen (Deputy Ch., Board
Deputy Ch.) and Virpi Tuunainen elected by Kesko's Annual General Meeting of
16 April 2012, and correspondingly, the Remuneration Committee is composed of
Board members Esa Kiiskinen (Ch., Board Ch.), Seppo Paatelainen (Deputy Ch.,
Board Deputy Ch.) and Ilpo Kokkila. In addition to the above, Board members
elected by the said meeting include Tomi Korpisaari and Toni Pokela. The term
of office of all Board members, provided by Kesko's Articles of Association,
will end at the close of the Annual General Meeting of 2015. The Board elects
the Board Chair and Deputy Chair for the whole three-year term of the Board
members and the Committee Chairs, Deputy Chairs and members for one year at a
time.

The resolutions of the Annual General Meeting and the decisions of the Board's
organisational meeting were announced in more detail in stock exchange
releases on 8 April 2013.

Responsibility
In January, Kesko was included on 'The Global 100 Most Sustainable
Corporations in the World' list for the ninth time. Kesko was classified into
the bronze class in the Food & Drug Retailers sector in RobecoSAM's
Sustainability Yearbook 2013.

Kesko announced its updated responsibility programme, which contains both
short-term objectives and objectives extending to 2020 for the operations of
Kesko and the whole K-Group.

Kesko and K-stores will take active part in the social guarantee for young
people initiative, with a view to promoting employment and preventing social
exclusion among young people. A tailored programme will be built for the
K-Group to employ young people in K-stores and Kesko.

In March, Kesko and K-stores took part in the Earth Hour 2013 event by turning
off the illuminated signs and pylons in their remote controlled properties and
stores across Finland for one hour.

In March, Kesko was awarded by World Finance Magazine for 'the Best Corporate
Governance in Finland' in terms of corporate governance development and
reporting, as in two previous years.

Risk management
The Kesko Group has an established and comprehensive risk management process.
Risks and their management are assessed in the Group regularly and they are
reported to the Group's management. Kesko's risk management and risks
associated with business operations are described in more detail on Kesko's
website in the section Corporate Governance.

The most significant near-future risks in Kesko's business operations are
related to the general economic development, the financial market situation in
the euro zone and low consumer confidence in Kesko's operating area and their
impact on the Kesko Group's sales and profit performance. During the first
months of the year, no material changes are estimated to have taken place in
the risks described in the 2012 report by Kesko's Board of Directors and the
financial statements, or in the risks described on Kesko's website.

The risks and uncertainties related to financial performance are described in
the section future outlook of this release.

Future outlook
Estimates of the future outlook for the Kesko Group's net sales and operating
profit excluding non-recurring items are given for the 12 months following the
reporting period (4/2013-3/2014) in comparison with the 12 months preceding
the reporting period (4/2012-3/2013).

Resulting from the problems of European national economies, the future
prospects for the general economic situation and consumer demand continue to
be characterised by significant uncertainty. In consequence of weakened
employment and consumers' purchasing power, the growth prospects for the
trading sector have deteriorated.

In the Finnish grocery trade, the market is expected to remain stable. As a
result of the weakened economic situation, the markets for the home and
speciality goods trade, the building and home improvement trade and the car
and machinery trade in Finland are expected to fall.

The Kesko Group's net sales for the next twelve months are expected to match
the level of the preceding twelve months. As a result of measures taken to
enhance business operations and cost savings, the operating profit excluding
non-recurring items for the next twelve months is expected to exceed the
operating profit excluding non-recurring items for the preceding twelve
months, unless the overall consumer demand significantly weakens. Capital
expenditure is expected to be lower compared to the capital expenditure for
the preceding twelve months.

Helsinki, 24 April 2013
Kesko Corporation
Board of Directors

The information in the interim report release are unaudited.

Further information is available from Jukka Erlund, Senior Vice President,
Chief Financial Officer, telephone +358 1053 22113, and Eva Kaukinen, Vice
President, Corporate Controller, telephone +358 1053 22338. A Finnish-language
webcast from the media and analyst briefing on the interim report can be
accessed at www.kesko.fi at 11.00. An English-language web conference on the
interim report will be held today at 14.30 (Finnish time). The web conference
login is available on Kesko's website at www.kesko.fi.

Kesko Corporation's interim report for January-June will be released on 24
July 2013. In addition, the Kesko Group's sales figures are published each
month. News releases and other company information are available on Kesko's
website at www.kesko.fi.

KESKO CORPORATION

Merja Haverinen
Vice President, Corporate Communications

ATTACHMENTS: TABLES SECTION
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Group's performance indicators
Net sales by segment
Operating profit by segment
Operating profit excl. non-recurring items by segment
Operating margin excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Change in tangible and intangible assets
Related party transactions
Fair value hierarchy of financial assets and liabilities
Personnel average and at the end of the reporting period
Group's commitments
Calculation of performance indicators
K-Group's retail and B2B sales

DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi

TABLES SECTION:

Accounting policies

This interim report has been prepared in accordance with the IAS 34 standard.
The interim report has been prepared in accordance with the same accounting
principles as the annual financial statements for 2012, with the exception of
the following changes due to the adoption of new and revised IFRS standards
and IFRIC interpretations:

The amendment to the IAS 19 Employee benefits standard changes the
determination of the return on defined benefit pension plan assets. According
to the revised standard, the rate used to discount the retirement benefit
obligation is used as the return on assets in place of the expected long-term
return on the assets used previously. Due to the amendment, the net return on
defined benefit pension plans recognised in the consolidated income statement
decreases. In addition, the amendment to the IAS 19 Employee benefits standard
eliminates the possibility to apply the so-called "corridor approach" to the
calculation of retirement benefits classified as defined benefit pension
plans, which follows that the changes in the calculation assumptions used for
measuring the pension obligation and the covering assets are recognised in
pension assets and equity in the balance sheet. The impact of the amendment
was announced in a separate stock exchange release on 11 April 2013.

In addition, the Group has adopted the following standards and amendments to
standards issued for application:

-IAS 1 Presentation of financial statements (amendment)

-IFRS 13 Fair value measurement

-IFRS 7 Financial instruments: Disclosures (amendment)

Consolidated income statement (€ million),
condensed
                                                 1-3/   1-3/ Change,%  1-12/
                                                 2013   2012            2012
Net sales                                       2,159  2,318     -6.9  9,686
Cost of goods sold                             -1,875 -2,007     -6.6 -8,367
Gross profit                                      284    311     -8.6  1,319
Other operating income                            173    170      1.6    747
Staff cost                                       -153   -152      0.6   -608
Depreciation and impairment charges               -37    -36      3.2   -158
Other operating expenses                         -248   -268     -7.5 -1 088
Operating profit                                   19     25    -23.2    212
Interest income and other finance income            3      5    -37.4     21
Interest expense and other finance costs           -5     -4     39.2    -17
Exchange differences                               -1     -2     -9.9     -5
Income from associates                              0      0     (..)     -1
Profit before tax                                  16     25    -36.8    210
Income tax                                         -5     -7    -34.5    -75
Net profit for the period                          11     18    -37.8    136
Attributable to
 Owners of the parent                             11     16    -29.4    124
 Non-controlling

 interests                                         0      2     (..)     11
Earnings per share (€)
for profit attributable to
equity holders of the parent
Basic                                            0.11   0.16    -29.5   1.27
Diluted                                          0.11   0.16    -29.6   1.26
Consolidated statement
of comprehensive
income (€ million)
                                                 1-3/   1-3/ Change,%  1-12/

                                                 2013   2012            2012
Net profit for the period                          11     18    -37,8    136
Items that will not be reclassified to profit
or loss
Actuarial gains and losses                          -      9        -      1
Actuarial gains and losses,

tax                                                 -     -2        -      0
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating foreign
operations                                          3      4    -20.8      0
Adjustment for hyperinflation                       2      1     (..)      4
Cash flow hedge revaluation                         0     -2     83.5     -3
Revaluation of available-for- sale financial
assets                                              0      0     (..)      9
Other items                                         -      -        -      0
Comprehensive income that may be reclassified
subsequently to profit or loss, tax                 0      0    -91.2      1
Total other comprehensive income for the
period,
net of tax                                          4     10    -55.7     11
Total comprehensive income for the period          15     28    -44.3    147

Attributable to
 Owners of the parent 14 27 -46.6 133
 Non-controlling

 interests             1  1   1.1  14

(..) Change over 100%

Consolidated statement of financial
position (€ million), condensed
                                      31.3.2013 31.3.2012 Change, % 31.12.2012
ASSETS
Non-current assets
Tangible assets                           1,685     1,555       8.4      1,678
Intangible assets                           190       190       0.0        192
Investments in associates and other
financial assets                            106        70      51.8        105
Loans and receivables                        90        78      15.9         91
Pension assets                              154       162      -4.6        154
Total                                     2,225     2,054       8.4      2,220
Current assets
Inventories                                 859       909      -5.4        814
Trade receivables                           805       804       0.1        703
Other receivables                           198       289     -31.6        153
Financial assets at fair value
through profit or loss                       98        75      31.3        137
Available-for-sale financial assets         218       163      33.1        249
Cash and cash equivalents                    95        54      74.7        103
Total                                     2,273     2,294      -0.9      2,160
Non-current assets held for sale              2         1      95.4          2
Total assets                              4,500     4,349       3.5      4,382

                                      31.3.2013 31.3.2012 Change, % 31.12.2012
EQUITY AND LIABILITIES
Equity                                    2,221     2,210       0.5      2,206
Non-controlling interests                    68        59      14.2         67
Total equity                              2,289     2,269       0.8      2,272
Non-current liabilities
Interest-bearing liabilities                438       205      (..)        450
Non-interest-bearing liabilities             10        20     -47.2         10
Deferred tax liabilities                     78        91     -14.0         81
Pension obligations                           2         2      -5.5          2
Provisions                                   20        11      76.0         21
Total                                       547       329      66.4        564
Current liabilities
Interest-bearing liabilities                206       241     -14.3        174
Trade payables                              955     1,001      -4.6        808
Other non-interest-bearing
liabilities                                 463       486      -4.8        524
Provisions                                   41        23      76.9         40
Total                                     1,664     1,751      -5.0      1,546
Total equity and liabilities              4,500     4,349       3.5      4,382

(..) Change over 100%

Consolidated statement of changes in equity (€ million)

                                  Cur- rency                        Re-
                   Share          trans-                            tained Non- cont-
                   capi-          lation       Revaluation Treasury earn-  rolling
                   tal   Reserves differ-ences reserve     shares   ings   inter-ests Total
Balance at
1 Jan. 2012          197      441           -3           3      -22  1,567         58 2,241
Shares
subscribed
with options
Share-based
payments                                                          0      0          0     1
Dividends
Other changes                                                     0      0                0
Net profit for the
period                                                                  16          2    18
Other
comprehen-sive
income
Items not
classified to
profit or loss
Actuarial
gains/losses                                                             9                9
Actuarial gains
and losses,

tax                                                                     -2               -2
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences on
translating
foreign operations              0            5                                     -1     4
Adjustment for
hyperinflation                                                           0          1     1
Cash flow hedge
revaluation                                             -2                               -2
Revaluation of
available-for-sale
financial assets                                         0                                0
Tax relating to
other
comprehen-sive
income                                                   0                                0
Total other
comprehen-sive
income                          0            5          -1        0      7         -1    10
Balance at
31 Mar. 2012         197      441            1           1      -22  1,600         59 2,269
Balance at
1 Jan. 2013          197      442           -2          10      -19  1,578         67 2,272
Shares
subscribed
with options                    1                                                         1
Share-based
payments                                                          0                 0     0
Dividends
Other changes                                                            0                0
Net profit for the
period                                                                  11          0    11
Other
comprehen-sive
income
Items not
classified to
profit or loss
Actuarial
gains/losses
Actuarial gains
and losses,

tax
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences on
translating
foreign operations              0            3                                      0     3
Adjustment for
hyperinflation                                                           0          2     2
Cash flow hedge
revaluation                                              0                                0
Revaluation of
available-for-sale
financial assets                                         0                                0
Tax relating to
other
comprehen-sive
income                                                   0                                0
Total other
comprehen-sive
income                          0            3           0        0      0          2     4
Balance at
31 Mar. 2013         197      443            1          10      -19  1,590         68 2,289

Consolidated statement of cash flows (€ million), condensed

                                               1-3/     1-3/ Change, % 1-12/
                                               2013     2012            2012
Cash flows from operating activities
Profit before tax                                16       25     -36.8   210
Planned depreciation                             37       36       3.2   155
Finance income and costs                          3        0      (..)     1
Other adjustments                                -1        9      (..)   103
Change in working capital
Current non-interest-bearing
operating receivables,
increase (-)/decrease (+)                      -144     -120      20.2     5
Inventories,
increase (-)/decrease (+)                       -43      -37      16.1    57
Current non-interest-bearing
liabilities,
increase (+)/decrease (-)                        87      100     -13.6   -70
Financial items and tax                         -13      -18     -28.0   -79
Net cash from operating activities              -59       -5      (..)   382
Cash flows from investing activities
Investing activities                            -44     -111     -59.8  -411
Sales of fixed assets                             2       20     -87.4    24
Increase in non-current receivables               0       -1      (..)    -4
Net cash used in investing activities           -42      -92     -54.4  -391
Cash flows from financing activities
Interest-bearing liabilities, increase
(+)/decrease (-)                                 22       49     -54.9   230
Current interest-bearing
receivables,
increase (-)/decrease (+)                         1      -21      (..)    37
Dividends paid                                    -        -         -  -123
Equity increase                                   1        -         -     1
Short-term money market investments, increase
(-)/ decrease (+)                                21       32     -34.5    -2
Other items                                      -2       -6     -72.9   -14
Net cash used in financing activities            43       53     -20.3   130
Change in cash and cash equivalents             -58      -44      32.9   121
Cash and cash equivalents and current portion
of available-for-sale financial assets at 1
Jan.                                            352      231      52.5   231
Currency translation difference adjustment and
revaluation                                       0 0     -17.6     0
Cash and cash equivalents and current portion
of available-for-sale financial assets at 31
Mar.                                            294      187      57.0   352

(..) Change over 100%

Group's performance indicators
                                        1-3/2013 1-3/2012 Change, pp 1-12/2012
Return on capital employed, %                3.1      4.1       -1.0       8.3
Return on capital employed, %,
moving 12 mo                                 8.0     12.0       -4.0       8.3
Return on capital employed excl.
non-recurring items, %                       3.0      3.6       -0.7       9.0
Return on capital employed excl.
non-recurring items, %, moving 12 mo         8.8     11.9       -3.1       9.0
Return on equity, %                          1.9      3.1       -1.2       6.0
Return on equity, %, moving 12 mo            5.7      8.4       -2.8       6.0
Return on equity excl. non-recurring
items, %                                     1.8      2.8       -0.9       6.9
Return on equity excl. non-recurring
items, %, moving 12 mo                       6.6      8.3       -1.7       6.9
Equity ratio, %                             51.7     52.8       -1.1      52.5
Gearing, %                                  10.2      6.8        3.4       6.0
                                                           Change, %
Capital expenditure, € million              41.5    104.1      -60.2     378.3
Capital expenditure, % of net sales          1.9      4.5      -57.2       3.9
Earnings per share, basic, €                0.11     0.16      -29.5      1.27
Earnings per share, diluted, €              0.11     0.16      -29.6      1.26
Earnings per share excl. non-recurring
items, basic, €                             0.11     0.14      -23.2      1.47
Cash flow from operating activities,
€ million                                    -59       -5       (..)       382
Cash flow from investing activities,
€ million                                    -42      -92      -54.4      -391
Equity per share, €                        22.62    22.56        0.2     22.48
Interest-bearing net debt                  233.2    153.6       51.8     135.3
Diluted number of
shares, average for
reporting period                          98,724   98,413        0.2    98,472
Personnel, average                        19,126   19,143       -0.1    19,741
(..) Change over 100%

Group's performance indicators by quarter     1-3/  4-6/  7-9/ 10-12/  1-3/
                                              2012  2012  2012   2012  2013
Net sales, € million                         2,318 2,460 2,449  2,459 2,159
Change in net sales, %                        10.2  -0.5   1.9   -0.9  -6.9
Operating profit, € million                   25.1  57.7  77.4   51.8  19.2
Operating margin, %                            1.1   2.3   3.2    2.1   0.9
Operating profit excl. non- recurring items,
€ million                                     22.3  59.4  77.4   70.9  18.6
Operating margin excl.
non-recurring items, %                         1.0   2.4   3.2    2.9   0.9
Finance income/costs,
€ million                                     -0.1  -0.3  -1.3    1.1  -3.3
Profit before tax,
€ million                                     25.0  57.3  76.1   52.1  15.8
Profit before tax, %                           1.1   2.3   3.1    2.1   0.7
Return on capital employed, %                  4.1   8.9  11.9    8.0   3.1
Return on capital employed excl.
non-recurring items, %                         3.6   9.2  11.9   10.9   3.0
Return on equity, %                            3.1   7.0   9.6    4.4   1.9
Return on equity excl.
non-recurring items, %                         2.8   7.3   9.6    8.0   1.8
Equity ratio, %                               52.8  51.2  51.3   52.5  51.7
Capital expenditure, € million               104.1  67.8 102.6  103.8  41.5
Earnings per share, diluted, €                0.16  0.37  0.50   0.23  0.11
Equity per share, €                          22.56 21.72 22.33  22.48 22.62

Segment information

Net sales by segment                                 1-3/  1-3/ Change 1-12/
(€ million)                                          2013  2012      %  2012
Food trade total                                    1,045 1,010    3.5 4,311
- of which intersegment trade                          43    45   -4.9   172
Home and speciality goods trade, Finland              335   356   -6.1 1,557
Home and speciality goods trade, other countries*      10    13  -19.3    45
Home and speciality goods trade total                 345   369   -6.5 1,603
- of which intersegment trade                           3     4   -9.7    18
Building and home improvement trade, Finland          281   300   -6.4 1,229
Building and home improvement trade, other
countries*                                            281   329  -14.6 1,598
Building and home improvement trade total             562   629  -10.7 2,827
- of which intersegment trade                           0     0   37.0     0
Car and machinery trade, Finland                      231   337  -31.5   998
Car and machinery trade, other countries*              19    16   17.8   116
Car and machinery trade
total                                                 249   353  -29.3 1,114
- of which intersegment trade                           0     0  -31.2     1
Common operations and
eliminations                                          -42   -42   -0.5  -169
Finland total                                       1,841 1,961   -6.1 7,924
Other countries total*                                318   357  -11.0 1,762
Group total                                         2,159 2,318   -6.9 9,686

* net sales in countries other than Finland

Operating profit by segment (€ million)  1-3/  1-3/ Change 1-12/
                                         2013  2012         2012
Food trade                               48.2  37.4   10.8 170.2
Home and speciality goods trade         -17.7 -12.9   -4.8   0.0
Building and home improvement trade     -16.1  -9.0   -7.0  11.6
Car and machinery trade                   7.8  15.5   -7.7  41.9
Common operations and eliminations       -3.0  -5.9    2.9 -11.8
Group total                              19.2  25.1   -5.8 212.0

Operating profit excl.               1-3/  1-3/ Change 1-12/
non-recurring items                  2013  2012         2012
by segment (€ million)
Food trade                           48.2  34.7   13.5 167.5
Home and speciality goods trade     -17.8 -12.9   -4.8  19.6
Building and home improvement trade -16.6  -9.0   -7.6  13.3
Car and machinery trade               7.8  15.5   -7.7  41.9
Common operations and eliminations   -3.0  -5.9    2.9 -12.2
Group total                          18.6  22.3   -3.7 230.0

Operating margin                    1-3/ 1-3/            1-12/ Moving 12 mo
excl. non-recurring
items by segment                    2013 2012 Change, pp  2012       3/2013
Food trade                           4.6  3.4        1.2   3.9          4.2
Home and speciality goods trade     -5.2 -3.5       -1.6   1.2          0.9
Building and home improvement trade -3.0 -1.4       -1.5   0.5          0.2
Car and machinery trade              3.1  4.4       -1.3   3.8          3.4
Group total                          0.9  1.0       -0.1   2.4          2.4

Capital employed by                  1-3/  1-3/ Change 1-12/
segment, cumulative                  2013  2012         2012
average (€ million)
Food trade                            854   706    148   763
Home and speciality goods trade       477   479     -3   514
Building and home improvement trade   762   754      8   760
Car and machinery trade               170   199    -29   188
Common operations and eliminations    258   315    -57   327
Group total                         2,520 2,453     67 2,552

Return on capital                                                      Moving
employed excl. non-                  1-3/  1-3/            1-12/
recurring items by segment, %        2013  2012 Change, pp  2012 12 mo 3/2013
Food trade                           22.6  19.6        2.9  21.9         22.7
Home and speciality goods trade     -14.9 -10.8       -4.1   3.8          2.9
Building and home improvement trade  -8.7  -4.8       -3.9   1.7          0.7
Car and machinery trade              18.3  31.2      -12.9  22.3         18.9
Group total                           3.0   3.6       -0.7   9.0          8.8

Capital expenditure by segment (€ million) 1-3/ 1-3/        1-12/
                                           2013 2012 Change  2012
Food trade                                   17   60    -44   200
Home and speciality goods trade               8   18    -10    61
Building and home improvement trade          13   12      1    63
Car and machinery trade                       4   13     -9    27
Common operations and eliminations            1    1      0    28
Group total                                  41  104    -63   378

Segment information by quarter

Net sales by segment                 1-3/  4-6/  7-9/ 10-12/  1-3/
(€ million)                          2012  2012  2012   2012  2013
Food trade                          1,010 1,091 1,078  1,132 1,045
Home and speciality goods trade       369   352   395    487   345
Building and home improvement trade   629   782   759    657   562
Car and machinery trade               353   274   259    227   249
Common operations and eliminations    -42   -41   -41    -45   -42
Group total                         2,318 2,460 2,449  2,459 2,159

Operating profit by segment (€ million)  1-3/ 4-6/ 7-9/ 10-12/  1-3/
                                         2012 2012 2012   2012  2013
Food trade                               37.4 38.6 49.4   44.8  48.2
Home and speciality goods trade         -12.9 -0.7  0.9   12.8 -17.7
Building and home improvement trade      -9.0 13.5 17.9  -10.8 -16.1
Car and machinery trade                  15.5 10.3 11.4    4.7   7.8
Common operations and eliminations       -5.9 -4.0 -2.2    0.3  -3.0
Group total                              25.1 57.7 77.4   51.8  19.2

Operating profit excl. non-recurring items by   1-3/ 4-6/ 7-9/ 10-12/  1-3/
segment (€ million)                             2012 2012 2012   2012  2013
Food trade                                      34.7 38.6 49.4   44.8  48.2
Home and speciality goods trade                -12.9 -0.7  0.9   32.3 -17.8
Building and home improvement trade             -9.0 15.2 17.9  -10.8 -16.6
Car and machinery trade                         15.5 10.3 11.4    4.7   7.8
Common operations and eliminations              -5.9 -4.0 -2.2   -0.1  -3.0
Group total                                     22.3 59.4 77.4   70.9  18.6

Operating margin
excl. non-recurring                 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
items by segment                    2012 2012 2012   2012 2013
Food trade                           3.4  3.5  4.6    4.0  4.6
Home and speciality goods trade     -3.5 -0.2  0.2    6.6 -5.2
Building and home improvement trade -1.4  1.9  2.4   -1.6 -3.0
Car and machinery trade              4.4  3.7  4.4    2.1  3.1
Group total                          1.0  2.4  3.2    2.9  0.9

Change in tangible and intangible assets (€ million)

                                             31.3.2013 31.3.2012
Opening net carrying amount                      1,870     1,680
Depreciation, amortisation and impairment          -37       -36
Investments in tangible and intangibe assets        43       106
Disposals                                           -6       -18
Currency translation differences                     5        13
Closing net carrying amount                      1,875     1,745

Related party transactions

The Group's related parties include its key management (the Board of
Directors, the President and CEO and the Corporate Management Board),
subsidiaries, associates and the Kesko Pension Fund.

The following transactions were carried out with related parties:

                                1-3/2013 1-3/2012
Sales of goods and services           22       18
Purchases of goods and services        7        3
Other operating income                 0        0
Other operating expenses               7        6
Finance costs                          0        0
Receivables                            9       67
Liabilities                           28       38

Fair value hierarchy of financial assets and liabilities (€ million)

                                             Level 1 Level 2 Level 3 31.3.2013
Financial assets at fair value through
profit or loss                                            98                98
Derivative financial instruments at fair
value through profit or loss
 Derivative financial assets                             3                 3
 Derivative financial liabilities                       12                12
Available-for-sale financial assets               18     199       7       225

                                             Level 1 Level 2 Level 3 31.3.2012
Financial assets at fair value through
profit or loss                                            75                75
Derivative financial instruments at fair
value through profit or loss
 Derivative financial assets                             4                 4
 Derivative financial liabilities                       21                21
Available-for-sale financial assets               30     133       7       170

Level 1 instruments are traded in active markets and their fair values are
directly based on quoted market prices. The fair values of level 2 instruments
are derived from market data. The fair values of level 3 instruments are not
based on observable market data.

Personnel, average and at 31 March

Personnel average by                1-3/2013 1-3/2012 Change
segment
Food trade                             2,856    2,652    204
Home and speciality goods trade        5,786    5,983   -197
Building and home improvement trade    8,836    8,869    -33
Car and machinery trade                1,223    1,210     13
Common operations                        425      429     -4
Group total                           19,126   19,143    -18
Personnel at 31 March*                  2013     2012 Change
by segment
Food trade                             3,183    3,007    176
Home and speciality goods trade        8,030    8,128    -98
Building and home improvement trade    9,931   10,008    -77
Car and machinery trade                1,263    1,280    -17
Common operations                        474      486    -12
Group total                           22,881   22,909    -28

* total number incl. part-time employees

Group's commitments (€ million)
                                                31.3.2013 31.3.2012  Change, %
Own commitments                                       181       181       -0.1
For associates                                         65         -          -
For others                                             10         8       33.2
Lease liabilities for machinery and equipment          25        26       -3.9
Lease liabilities for real estate                   2,274     2,265        0.4
Liabilities arising from derivative instruments
Values of underlying instruments at 31 March    31.3.2013 31.3.2012 Fair value

                                                                     31.3.2013
Interest rate derivatives
 Interest rate swaps                                203       205       1.24
Currency derivatives
 Forward and future contracts                       234       334      -1.81
 Option agreements                                   10         7      -0.02
 Currency swaps                                     100       100      -6.71
Commodity derivatives
 Electricity derivatives                             40        30      -2.09

Calculation of performance indicators

                                Operating profit x 100 / (Non-current assets +
Return on capital employed*, %  Inventories + Receivables + Other current
                                assets - Non-interest-bearing liabilities) on
                                average for the reporting period
                                Operating profit for prior 12 months x 100 /
Return on capital employed, %,  (Non-current assets + Inventories +
moving 12 mo                    Receivables + Other current assets -
                                Non-interest-bearing liabilities) on average
                                for 12 months
                                Operating profit excl. non-recurring items x
Return on capital employed      100 / (Non-current assets + Inventories +
excl. non- recurring items*, %  Receivables + Other current assets -
                                Non-interest-bearing liabilities) on average
                                for the reporting period
                                Operating profit excl. non-recurring items for
Return on capital employed      prior 12 months x 100 / (Non-current assets +
excl. non- recurring items, %,  Inventories + Receivables + Other current
moving 12 months                assets - Non-interest-bearing liabilities) on
                                average for 12 months
Return on equity*, %            (Profit/loss before tax - income tax) x 100 /
                                Shareholders' equity
                                (Profit/loss for prior 12 months before tax -
Return on equity, %, moving 12  income tax
months                          for prior 12 months) x100 / Shareholders'
                                equity
                                (Profit/loss adjusted for non-recurring items
Return on equity excl.          before tax - income tax adjusted for the tax
non-recurring items*, %         effect of non-recurring items) x 100 /
                                Shareholders' equity
                                (Profit/loss for prior 12 months adjusted for
Return on equity excl.          non-recurring items before tax - income tax
non-recurring items, %, moving  for prior 12 months adjusted for the tax
12 months                       effect of non-recurring items) x 100 /
                                Shareholders' equity
Equity ratio, %                 Shareholders' equity x 100 /
                                (Balance sheet total - prepayments received)
Earnings/share, diluted         (Profit/loss - non-controlling interests) /
                                Average diluted number of shares
Earnings/share, basic           (Profit/loss - non-controlling interests) /
                                Average number of shares
Earnings/share excl.            (Profit/loss adjusted for non-recurring items
non-recurring items,            - non-controlling interests) / Average number
basic                           of shares
                                Equity attributable to equity holders of the
Equity/share                    parent /
                                Basic number of shares at the balance sheet
                                date
                                Interest-bearing net liabilities x 100 /
Gearing, %
                                Shareholders' equity
Interest-bearing net debt       Interest-bearing liabilities - money market
                                investments - cash and cash equivalents

* Indicators for return on capital have been annualised.

K-Group's retail and B2B sales, VAT 0% (preliminary data):

                                                              1.1.-31.3.2013
K-Group's retail and                                     € million Change, %
B2B sales
K-Group's food trade
K-food stores                                                1,140       2.1
Kespro                                                         186       3.9
Food trade total                                             1,326       2.4
K-Group's home and
speciality goods trade
Home and speciality goods stores, Finland                      366      -8.5
Home and speciality goods stores, other countries               10     -24.0
Home and speciality
goods trade total                                              376      -9.0
K-Group's building and home improvement trade
K-rauta and Rautia                                             170      -8.8
Rautakesko B2B Service                                          38     -20.8
K-maatalous                                                     93       4.3
Finland total                                                  301      -7.0
Building and home improvement stores, other Nordic
countries                                                      174     -28.6
Building and home improvement stores, Baltic countries          70      -2.2
Building and home improvement stores, other countries           72       4.8
Building and home improvement trade total                      616     -12.8
K-Group's car and
machinery trade
VV-Autotalot                                                    90     -35.2
VV-Auto, import                                                107     -32.6
Konekesko, Finland                                              39     -21.7
Finland total                                                  235     -32.1
Konekesko, other countries                                      19      12.8
Car and machinery trade
total                                                          254     -30.0
Finland total                                                2,220      -6.2
Other countries total                                          353     -14.6
Retail and B2B sales
total                                                        2,573      -7.4

Keskos_interim_report_1-3_2013

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Source: Kesko Oyj via Thomson Reuters ONE
HUG#1696146
 
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