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Summary

Kesko’s Annual Report 2015 describes how people and society benefit from the operations of the K-Group. In addition to the progress of Kesko’s strategy and corporate responsibility work, the report presents a comprehensive package of many interesting stories.

Report Highlights

Kesko’s Annual Report 2015 describes how people and society benefit from the operations of the K-Group. In addition to the progress of Kesko’s strategy and corporate responsibility work, the report presents a comprehensive package of many interesting stories.

Kesko’s Annual Report 2015 was published on 11 March at http://annualreport2015.kesko.fi . The Annual Report 2015 consists of the strategy report, the GRI report, financial statements for 2015, Kesko’s Corporate Governance Statement, and the Remuneration Statement.

The strategy sets guidelines for the coming years

In May 2015, Kesko published the new strategy, which relies on the value that guide all operations: ”The customer and quality – in everything we do.”

One of the focus areas in Kesko’s growth is expanding and renewing the network of neighbourhood stores. Key measures in the implementation of the strategy include the agreement to acquire Suomen Lähikauppa in November 2015.

In the building and home improvement trade, Kesko’s objective is to further strengthen its position in Europe. Major support to the growth strategy is provided by the acquisition published in January 2016 by which Kesko agreed to acquire Onninen that specialises in the HEPAC and electrical products trade, and the centralisation of the Baltic building and home improvement trade in Senukai, Kesko’s Lithuania-based subsidiary.

The objective of Kesko’s digital strategy is that the K-Group will provide that best digital services in 2017. New services include the K-food mobile application that offers personal and store specific benefits and the click and collect services offered by both food stores and building and home improvement stores.

Performance highlights

• In 2015, Kesko paid a total of over €92 million in taxes to its operating countries.

• Finnish products account for over 80% of the K-food stores’ selections. In 2015, K-retailers’ direct purchases from Finnish regions totalled €610 million, representing an increase of €43 million from the previous year.

• The assessment of the origins of the ingredients of own-brand groceries was carried out over the course of 2015.

• Kesko and Plan International Finland, an organisation that promotes children’s rights, continue cooperation to improve the responsibility of the fish industry of Thailand and the position of migrant workers there.

• As part of the human rights assessment we listened to our stakeholders’ views on how they feel about human rights in customer situations, for example.

• As part of the climate work, Pirkka, Gasum, Myllyn Paras and Wursti started cooperation in autumn 2015 to reduce carbon dioxide emissions by using biogas made of inedible organic waste as energy in the manufacture of Pirkka products.