KESKO CORPORATION STOCK EXCHANGE RELEASE 11.04.2013 AT 12.00 1(5) With effect from 1 January 2013, the Kesko Group adopted the revised IAS 19 Employee benefits standard. The amendment has 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 Group's consolidated income statement, consolidated statement of financial position and segment information for 2012 have been updated in compliance with the requirements prescribed in the revised standard. Starting from the interim period 1 January-31 March 2013, the Kesko Group's financial reporting will be prepared in compliance with the revised IFRS standard (IAS 19) on employee benefits. The Group's consolidated income statement, consolidated statement of financial position and segment information for 2012 have been updated in compliance with the requirements prescribed in the revised standard and they are presented in the tables attached to this release. 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. The amendment to the IAS 19 Employee benefits standard also 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. In consequence of the adoption of the revised IAS 19 Employee benefits standard, the Kesko Group's operating profit, operating profit excluding non-recurring items and the profit for the financial year 2012 are lower, and the pension assets and equity recognised in the balance sheet are higher than the amounts calculated in compliance with the standard valid until 31 December 2012. The Group's operating profit and operating profit excluding non-recurring items for 2012 decrease by €4.7 million. The Group's equity in the 2012 opening balance increases by €8 million and in the balance sheet of 31 December 2012 by €5 million due to actuarial gains recognised in equity in the consolidated statement of financial position. Further information is available from Vice President, Corporate Controller Eva Kaukinen, telephone +358 1053 22338. KESKO CORPORATION Merja Haverinen Vice President, Corporate Communications ATTACHMENTS: Consolidated income statement Consolidated statement of financial position Group's performance indicators Operating profit by segment Operating profit excl. non-recurring items by segment Capital employed by segment Return on capital employed excl. non-recurring items by segment DISTRIBUTION NASDAQ OMX Helsinki Main news media www.kesko.fi ATTACHMENTS Consolidated income statement (€ million), condensed 1-12/2012 1-9/2012 1-6/2012 1-3/2012 Net sales 9,686 7,227 4,778 2,318 Cost of goods sold -8,367 -6,259 -4,138 -2,007 Gross profit 1,319 968 640 311 Other operating income 747 551 368 170 Staff cost -608 -452 -310 -152 Depreciation and impairment charges -158 -113 -76 -36 Other operating expenses -1,088 -793 -538 -268 Operating profit 212 160 83 25 Interest income and other finance income 21 13 10 5 Interest expense and other finance costs -17 -12 -8 -4 Exchange differences -5 -3 -2 -2 Income from associates -1 0 0 0 Profit before tax 210 158 82 25 Income tax -75 -48 -25 -7 Net profit for the period 136 111 57 18 Attributable to Owners of the parent 124 101 52 16 Non-controlling interests 11 9 5 2 Earnings per share (€) for profit attributable to equity holders of the parent Basic 1.27 1.03 0.53 0.16 Diluted 1.26 1.03 0.53 0.16 Consolidated statement of financial position (€ million), condensed 31.12.2012 30.9.2012 30.6.2012 31.3.2012 1.1.2012 ASSETS Non-current assets Tangible assets 1,678 1,647 1,579 1,555 1,490 Intangible assets 192 193 190 190 189 Investments in associates and other financial assets 105 86 72 70 69 Loans and receivables 91 85 82 78 80 Pension assets 154 165 163 162 210 Total 2,220 2,174 2,086 2,054 2,039 Current assets Inventories 814 838 869 909 868 Trade receivables 703 763 803 804 700 Other receivables 153 309 322 289 218 Financial assets at fair value through profit or loss 137 98 51 75 98 Available-for-sale financial assets 249 176 141 163 186 Cash and cash equivalents 103 82 61 54 84 Total 2,160 2,266 2,248 2,294 2,153 Non-current assets held for sale 2 1 1 1 8 Total assets 4,382 4,441 4,335 4,349 4,200 31.12.2012 30.9.2012 30.6.2012 31.3.2012 1.1.2012 EQUITY AND LIABILITIES Equity 2,205 2,189 2,130 2,210 2,183 Non-controlling interests 67 65 65 60 58 Total equity 2,272 2,255 2,195 2,269 2,241 Non-current liabilities Interest-bearing liabilities 450 457 210 205 210 Non-interest-bearing liabilities 10 10 10 20 18 Deferred tax liabilities 81 95 92 91 94 Pension obligations 2 2 2 2 2 Provisions 21 10 11 11 10 Total 564 574 325 329 335 Current liabilities Interest-bearing liabilities 174 183 353 241 190 Trade payables 808 956 993 1,001 886 Other non-interest-bearing liabilities 524 448 445 486 526 Provisions 40 26 24 23 24 Total 1,546 1,612 1,815 1,751 1,625 Total equity and liabilities 4,382 4,441 4,335 4,349 4,200 Group's performance 1-3/ 4-6/ 7-9/ 10-12/ 1-12/ indicators 2012 2012 2012 2012 2012 Operating profit, € million 25.1 57.7 77.4 51.8 212.0 Operating margin, % 1.1 2.3 3.2 2.1 2.2 Operating profit excl. non- recurring items, € million 22.3 59.4 77.4 70.9 230.0 Operating margin excl. non-recurring items, % 1.0 2.4 3.2 2.9 2.4 Return on capital employed, % 4.1 8.9 11.9 8.0 8.3 Return on capital employed excl. non-recurring items, % 3.6 9.2 11.9 10.9 9.0 Return on equity, % 3.1 7.0 9.6 4.4 6.0 Return on equity excl. non-recurring items, % 2.8 7.3 9.6 8.0 6.9 Equity ratio, % 52.8 51.2 51.3 52.5 52.5 Earnings per share, diluted, € 0.16 0.37 0.50 0.23 1.26 Earnings per share excl. non recurring items, basic, € 0.14 0.38 0.51 0.44 1.47 Equity/share, € 22.56 21.72 22.33 22.48 22.48 Segment information Operating profit by 1-3/ 4-6/ 7-9/ 10-12/ 1-12/ segment (€ million) 2012 2012 2012 2012 2012 Food trade 37.4 38.6 49.4 44.8 170.2 Home and speciality goods trade -12.9 -0.7 0.9 12.8 0.0 Building and home improvement trade -9.0 13.5 17.9 -10.8 11.6 Car and machinery trade 15.5 10.3 11.4 4.7 41.9 Common operations and -5.9 -4.0 -2.2 0.3 -11.8 eliminations Group's operating profit 25.1 57.7 77.4 51.8 212.0 Operating profit excl. non 1-3/ 4-6/ 7-9/ 10-12/ 1-12/ recurring items by segment (€ million) 2012 2012 2012 2012 2012 Food trade 34.7 38.6 49.4 44.8 167.5 Home and speciality goods trade -12.9 -0.7 0.9 32.3 19.6 Building and home improvement trade -9.0 15.2 17.9 -10.8 13.3 Car and machinery trade 15.5 10.3 11.4 4.7 41.9 Common operations and eliminations -5.9 -4.0 -2.2 -0.1 -12.2 Group's operating profit excl. non-recurring items 22.3 59.4 77.4 70.9 230.0 Capital employed by 1-3/ 1-6/ 1-9/ 1-12/ segment, cumulative 2012 2012 2012 2012 average (€ million) Food trade 706 729 745 763 Home and speciality goods trade 479 504 510 514 Building and home improvement trade 754 769 764 760 Car and machinery trade 199 196 190 188 Common operations and 315 321 330 327 eliminations Group total 2,453 2,518 2,540 2,552 Return on capital employed 1-3/ 1-6/ 1-9/ 1-12/ excl. non-recurring items by 2012 2012 2012 2012 segment, % Food trade 19.6 20.1 21.9 21.9 Home and speciality goods trade -10.8 -5.4 -3.3 3.8 Building and home improvement trade -4.8 1.6 4.2 1.7 Car and machinery trade 31.2 26.3 26.2 22.3 Group total 3.6 6.5 8.4 9.0 [HUG#1692239]