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|  | 1

2024
REPORT BY THE
BOARD OF
DIRECTORS AND
F I N AN CIAL
STAT EMENTS

|  | 2

REPORT BY THE BOARD
OF DIRECTORS

Report by the Board of Directors ............................... | 3
Operating environment ................................................. | 3
Outlook and guidance 2025 .......................................... | 3
Financial performance ................................................... | 4
Segments ......................................................................... | 7
Changes in Group composition .................................... | 10
Key events during the financial year ............................. | 10
Events after the financial year ....................................... | 11
Resolutions of the 2024 Annual General meeting ...... | 11
Information contained in the notes to the financial statements ...................................................................... | 11
Corporate governance statement ................................. | 11
Risk management ........................................................... | 11
Significant risks and uncertainties ................................ | 12
Proposal for profit distribution ...................................... | 13
Annual General Meeting ............................................... | 13
Shares and securities markets ....................................... | 14
Analysis of shareholding ................................................ | 15
Board authorities ........................................................... | 17
Group’s key performance indicators ............................ | 18
Calculation of performance indicators ......................... | 19
Sustainability statement ................................................ | 23

This report is a translation of the Finnish original.

|  | 3

REPORT BY THE BOARD OF DIRECTORS
Kesko is a Finnish listed trading sector company. Kesko has
approximately 1,700 stores engaged in chain operations in
Finland, Sweden, Norway, Denmark, Estonia, Latvia,
Lithuania and Poland.
Kesko Group's reportable segments consist of its business
divisions, namely the grocery trade, the building and
technical trade, and the car trade.
The Group's parent company, Kesko Corporation, is a
Finnish public limited company constituted in accordance
with the laws of Finland. The Company's business ID is
0109862-8, it is domiciled in Helsinki, Finland and it's
registered address is PO Box 1, 00016 KESKO, Finland.
Together, Kesko and K-retailers form K Group, whose retail
sales (preliminary) totalled some €15.9 billion (0% VAT)
in 2024.
Operating environment
Identified trends impacting the operations of K Group
include the impacts of interest rates and inflation on
consumer and business confidence and customer
behaviour, the impact of urbanisation on living,
consumption habits and mobility, as well as population
change. Convenience is emphasised in consumer behaviour,
and habits are changing quickly. In addition, climate change
and the green transition, digitalisation and the possibilities
of artificial intelligence all impact the operating
environment. Globalisation impacts supply chains, and the
importance of risk management grows.
Key opportunities and risks in our operating environment
are related to developments in our economic operating
environment, digital services and data-driven management,
the geopolitical situation, sustainable purchasing and
human rights, and climate change. Emerging risks include
the loss of biodiversity and extreme weather phenomena.
Risks are described in more detail in the ‘Significant risks
and uncertainties’ section of this Report by the Board of
Directors.
Outlook and guidance 2025
Kesko Group’s profit guidance is given for the year 2025, in
comparison with the year 2024.
Kesko’s operating environment is estimated to improve in
2025, but to still remain somewhat challenging. Kesko’s
comparable operating profit is estimated to improve in
2025. Kesko estimates that its comparable operating profit
in 2025 will amount to €640-740 million. The profit
guidance is based on an estimate of a gradually improving
economic cycle in all Kesko operating countries. Key
uncertainties impacting Kesko’s outlook are developments
in consumer confidence, investment appetites, as well as
geopolitical crises and tensions.
In grocery trade, B2C trade and the foodservice market are
estimated to remain stable. In 2025, the comparable
operating margin for the grocery trade division is estimated
to stay clearly above 6% despite the investments in price
and the store site network in accordance with Kesko’s
strategy for 2024-2026.
In building and technical trade, the cycle is expected to
improve in 2025 from the historically low levels. Profitability
in the building and technical trade division is estimated to
improve on 2024.
In car trade, the market for new cars is expected to stay at a
low level. Demand for used cars and services is estimated to
remain good. Profitability for the car trade division is
estimated to remain at a good level in 2025 despite weak
demand for new cars.

|  | 4

Financial performance
Net sales and profit in 2024

1-12/2024 | Net sales, € million | Change, % | Change, comparable, % | Operating profit, comparable, € million | Change, € million
Grocery trade | 6,381.4 | +0.5 | +0.4 | 438.0 | -6.8
Building and home improvement trade | 2,160.7 | +13.0 | -6.9 | 57.9 | -7.1
Technical trade | 2,255.0 | -3.8 | -5.2 | 90.5 | -38.1
Kesko Senukai | - | - | - | 20.9 | +1.9
Building and technical trade, total | 4,351.6 | +3.8 | -6.0 | 169.1 | -43.3
Car trade | 1,209.4 | -4.2 | -4.0 | 69.3 | -13.3
Common functions and eliminations | -22.4 | - | - | -26.4 | +1.4
Total | 11,920.1 | +1.2 | -2.3 | 650.1 | -62.0

Group net sales grew by 1.2%. In comparable terms, net
sales decreased by 2.3%. Net sales decreased in
comparable terms by 1.8% in Finland, while in other
operating countries, they decreased by 5.1%. The
comparable change % has been calculated in local
currencies and excluding the impact of acquisitions and
divestments completed.
Net sales for the grocery trade division increased by 0.5%.
Sales to K Group grocery store chains grew by 1.0%. Net
sales for Kespro’s foodservice business increased by 1.3%.
Net sales for the building and technical trade division
increased by 3.8%, while in comparable terms, net sales
decreased by 6.0%, impacted by the weak construction
cycle. Net sales for technical trade decreased by 3.8%,
while in comparable terms, net sales decreased by 5.2%. In
building and home improvement trade, net sales increased
by 13.0% thanks to acquisitions completed, while in
comparable terms, net sales decreased by 6.9%. The Danish
building and home improvement trade chain Davidsen has
been consolidated into the building and technical trade
division’s figures as of 1 February 2024.
Net sales for the car trade division decreased by 4.2%, while
in comparable terms net sales decreased by 4.0%. Of the
car trade businesses, net sales decreased in new cars, and
increased in used cars and services. In the comparison
period, net sales for new cars were increased by the
clearing of order books as the availability of cars improved.
Net sales for sports trade decreased.
The Group’s comparable operating profit totalled
€650.1 million (€712.0 million), representing a decrease of
€62.0 million. The comparable operating profit for the
grocery trade division decreased by €6.8 million. The
comparable operating profit for the building and technical
trade division decreased by €43.3 million. The decrease was
due to a decline in net sales, which was mainly impacted by
the weak construction cycle. In the first year-half, net sales
and gross margin for solar power products in particular fell
short of the comparison period. Comparable operating
profit decreased in all operating countries. Onninen’s
comparable operating profit in Finland totalled
€69.0 million (€90.8 million). In Finland, profitability in
building and home improvement trade remained good.
Building and home improvement trade profitability was
burdened by a €2.5 million expense related to the Davidsen
acquisition, recorded in the allocation of fair value. The
share of result from Kesko Senukai was up by €1.9 million
year-on-year. The comparable operating profit for the car
trade division decreased by €13.3 million. The comparable
operating profit for the car trade businesses decreased by
€11.4 million due to a decline in net sales. In sports trade,
the comparable operating profit decreased by €1.9 million
on the comparison period.

|  | 5

Items affecting comparability, € million | 1-12/2024 | 1-12/2023
Operating profit, comparable | 650.1 | 712.0
Items affecting comparability |  |
+gains on disposal | +11.4 | +0.4
-losses on disposal | -1.6 | -1.0
-Impairment charges | -40.0 | -
+/- structural arrangements | -40.4 | -16.1
Items affecting comparability, total | -70.6 | -16.7
Operating profit | 579.5 | 695.4

The most significant items affecting comparability were
related to a €40.0 million write-down of goodwill for the
Byggmakker building and home improvement chain in
Norway, to the reorganisation of the K-Rauta chain in
Sweden, in which the Swedish building and home
improvement trade operations were concentrated in the K-
Bygg chain, the discontinuation of the Neste K chain, and to
acquisitions. The goodwill write-down for Byggmakker was
impacted by weaker-than-anticipated profit development, a
weak cycle in Norwegian construction, and high interest
rates.
K Group's (Kesko and the chain stores) retail and B2B sales
(0% VAT) totalled €15,853.0 million, representing a
decrease of 2.2%. During the 12-month period that ended in
December 2024, the number of Finnish households
belonging to the K-Plussa loyalty scheme and using the K-
Plussa network totalled 2.6 million, with 3.4 million K-
Plussa loyalty card users.
Net finance costs, income tax and earnings per
share

| 1-12/2024 | 1-12/2023
Net finance costs, € million | -111.7 | -83.9
Interests on lease liabilities, € million | -78.6 | -73.4
Profit before tax, comparable, € million | 543.0 | 630.4
Profit before tax, € million | 471.5 | 613.5
Income tax, € million | -92.0 | -118.0
Earnings per share, comparable, € | 1.11 | 1.28
Earnings per share, € | 0.95 | 1.25
Equity per share, € | 6.84 | 6.93

The increase in Group net finance costs was impacted by
the increase in interest-bearing debt and the rise in interest
rate levels. Net finance costs were reduced by a positive
change in the fair value of interest rate derivatives. The
share of result of associates totalled €3.8 million
(€2.1 million).
The Group’s effective tax rate was 19.5% (19.2%).
The Group’s earnings per share and comparable earnings
per share decreased compared to the year before.
Cash flow and financial position

€ million | 1-12/2024 | 1-12/2023
Cash flow from operating activities | 1,008.2 | 1,049.5
Cash flow from investing activities | -597.5 | -590.2
Cash flow from financing activities | -149.8 | -492.2

€ million | 31.12.2024 | 31.12.2023
Liquid assets | 488.1 | 227.3
Interest-bearing liabilities | 3,396.3 | 2,787.0
Lease liabilities | 2,051.0 | 1,997.9
Interest-bearing net debt excl. lease liabilities | 857.2 | 561.9
Interest-bearing net debt/ EBITDA, excl. IFRS 16 impact | 1.1 | 0.7
Gearing, % | 106.3 | 92.8
Equity ratio, % | 32.5 | 35.8

The Group’s cash flow from operating activities totalled
€1,008.2 million (€1,049.5 million), impacted by a profit
performance that fell short of the comparison period and
growth in net interests paid.
The Group’s cash flow from investing activities totalled
€-597.5 million (€-590.2 million). Cash flow from investing
activities included a positive item of €0.5 million
(€54.3 million) from the redemption of money market
funds, included in the Group’s liquid assets.
The Group’s net debt excluding lease liabilities increased
due to acquisitions completed and investments made in the
store site network for grocery trade and Onninen’s logistics
centre in Finland.

|  | 6

Capital expenditure

€ million | 1-12/2024 | 1-12/2023
Capital expenditure | 675.9 | 678.9
Store sites | 289.2 | 300.3
Acquisitions | 172.9 | 141.1
IT | 18.0 | 25.0
Other investments | 195.8 | 212.5
As of 1 January 2024, investments in Kespro’s cash-and-carry outlets are reported under capital expenditure in store sites, while before they were reported under other investments. Figures for the comparison periods have been adjusted accordingly.

Capital expenditure in store sites decreased by €11.1 million
year-on-year. Capital expenditure included the March
acquisition of store sites in Espoo and Salo, where Kesko’s
grocery trade has long been the primary tenant.
Other investments included an investment of €82.8 million
(€90.1 million) in the construction of Onninen and K-Auto’s
shared logistics centre in Hyvinkää, Finland. The
construction project is expected to be completed in 2025.
Capital expenditure included the acquisition of the Danish
building and home improvement trade company Davidsen
Koncernen A/S, completed on 31 January 2024, and the
acquisition of Autotalo Lohja, completed on 1 September
2024. Capital expenditure in the comparison period
included the acquisitions of Elektroskandia Norge AS in
Norway, completed on 1 March 2023, and Zenitec Sweden
AB, completed on 5 April 2023.

|  | 7

Segments
New segment structure
Kesko changed its division structure and segment reporting
from 1 April 2023 onwards. Sports trade became part of the
car trade division, while it previously had been part of the
building and technical trade division. Data concerning the
comparison periods have been adjusted to correspond to
the new segment structure. Kesko published comparison
figures for the new segment structure for 2022 and for the
first quarter of 2023 on 25 May 2023.
Grocery trade

| 1-12/2024 | 1-12/2023
Net sales, € million | 6,381.4 | 6,351.6
Operating profit, comparable, € million | 438.0 | 444.8
Operating margin, comparable, % | 6.9 | 7.0
Return on capital employed, comparable, % | 16.0 | 17.4
Capital expenditure, € million | 276.0 | 303.7
Average number of personnel converted into full-time employees | 6,346 | 6,257

Net sales for the grocery trade division totalled

Net sales, € million | 1-12/2024 | 1-12/2023 | Change, % | Change, comparable, %
Sales to K Group grocery stores | 4,529.3 | 4,484.0 | +1.0 | +1.0
K-Citymarket, non-food | 602.6 | 615.5 | -2.1 | -2.1
Kespro | 1,169.6 | 1,154.9 | +1.3 | +1.3
Others | 79.8 | 97.3 | -18.0 | -21.8
Total | 6,381.4 | 6,351.6 | +0.5 | +0.4

€6,381.4 million (€6,351.6 million), an increase of 0.5%.
Sales to K Group grocery store chains grew by 1.0%. Net
sales for Kespro’s foodservice business increased by 1.3% .
The total grocery retail market in Finland (incl. VAT) is
estimated to have grown by approximately 2.0% (Finnish
Grocery Trade Association PTY), and retail prices are
estimated to have risen by some 0.5% (incl. VAT, Statistics
Finland). K Group's grocery sales grew by 0.9% (incl. VAT).
Online grocery sales grew by 13.5%, and accounted for
approximately 3.7% of K Group’s grocery sales (incl. VAT).
All K Group grocery store chains offer online grocery
services. The number of K Group stores offering online
grocery services was 776 , up by 47 from the previous year.
The total market for the foodservice business is estimated
to have decreased by 1.1% (PTY). Kespro’s market share is
estimated to have continued to grow.
The comparable operating profit for the grocery trade
division totalled €438.0 million (€444.8 million), down by
€6.8 million. The development of comparable operating
profit was impacted by an increase in store site costs and a
decline in the net sales for K-Citymarket’s home and
speciality goods (non-food). Kespro’s comparable operating
profit totalled €77.8 million (€75.0 million). Operating profit
for the grocery trade division totalled €420.9 million
(€443.6 million). Items affecting comparability totalled
€-17.2 million (€-1.3 million), and were mainly related to the
discontinuation of the Neste K chain.
Capital expenditure for the grocery trade division totalled
€276.0 million (€303.7 million). Capital expenditure in store
sites totalled €255.2 million (€265.0 million). Capital
expenditure in stores sites included the March acquisition of
store sites in Espoo and Salo, where Kesko’s grocery trade
has long been the primary tenant.

|  | 8

Building and technical trade

Net sales, € million | 1-12/2024 | 1-12/2023 | Change, % | Change, comparable, %
Building and home improvement trade, Finland | 888.4 | 937.6 | -5.3 | -5.3
K-Rauta, Sweden | 101.6 | 149.8 | -32.2 | -
K-Bygg, Sweden | 277.0 | 280.0 | -1.1 | -5.1
Byggmakker, Norway | 517.9 | 547.6 | -5.4 | -5.2
Davidsen, Denmark | 379.8 | - | - | -
Building and home improvement trade, total | 2,160.7 | 1,912.1 | +13.0 | -6.9
Technical trade, Finland | 1,132.1 | 1,234.0 | -8.3 | -8.3
Technical trade, Sweden | 130.6 | 132.8 | -1.7 | -3.2
Technical trade, Norway | 501.7 | 517.5 | -3.0 | -5.0
Technical trade, Baltics | 127.4 | 129.1 | -1.3 | -1.3
Technical trade, Poland | 368.1 | 336.9 | +9.3 | +3.6
Technical trade, total | 2,255.0 | 2,344.7 | -3.8 | -5.2
Total | 4,351.6 | 4,193.2 | +3.8 | -6.0
The reorganisation of the K-Rauta chain in Sweden was completed in December 2024. In October-November 2024, a total of 8 K-Rauta stores were transferred under the K-Bygg chain. The comparable change in K-Bygg net sales has been calculated in local currencies by adding the net sales of the transferred K-Rauta stores to the comparison period figures at dates corresponding to the change in store chains.

| 1-12/2024 | 1-12/2023
Net sales, € million | 4,351.6 | 4,193.2
Building and home improvement trade | 2,160.7 | 1,912.1
Technical trade | 2,255.0 | 2,344.7
Operating profit, comparable, € million | 169.1 | 212.5
Building and home improvement trade | 57.9 | 65.0
Technical trade | 90.5 | 128.5
Kesko Senukai | 20.9 | 19.0
Operating margin, comparable, % | 3.9 | 5.1
Building and home improvement trade | 2.7 | 3.4
Technical trade | 4.0 | 5.5
Return on capital employed, comparable, % | 7.8 | 11.4
Capital expenditure, € million | 293.7 | 273.0
Average number of personnel converted into full-time employees | 6,538 | 6,073

Net sales for the building and technical trade division
increased by 3.8%. In comparable terms, net sales
decreased by 6.0%. Net sales development was impacted
by the weak construction cycle. Net sales for technical
trade decreased by 3.8%, while in comparable terms, net
sales decreased by 5.2%. In building and home
improvement trade, net sales increased by 13.0% thanks to
acquisitions carried out, while in comparable terms, net
sales decreased by 6.9%. The Danish building and home
improvement trade chain Davidsen has been consolidated
into the division’s figures as of 1 February 2024. Net sales
development in euro terms was increased by the
strengthening of the Polish zloty and Swedish krona, and
decreased by the weakening of the Norwegian krone
against the euro.
In Finland, net sales for the building and technical trade
division totalled €1,967.9 million (€2,115.0 million), a
decrease of 7.0%. Net sales from international operations
totalled €2,383.7 million (€2,078.2 million), an increase of
14.7% thanks to the acquisitions carried out. In comparable
terms, net sales from international operations decreased
by 5.1%.
The comparable operating profit for the building and
technical trade division totalled €169.1 million
(€212.5 million), and it decreased by €43.3 million, due to a
decline in net sales, which was mainly impacted by the weak
construction cycle. In the first year-half, net sales and gross
margin for solar power products in particular fell short of
the comparison period. Comparable operating profit
decreased in all operating countries. Onninen’s comparable
operating profit in Finl and totalled €69.0 million
(€90.8 million). In Finland, profitability in building and home
improvement trade remained good. Profitability in building
and home improvement trade was burdened by a €2.5
million expense related to the Davidsen acquisition,
recorded for the allocation of fair value. The share of result
from Kesko Senukai was up by €1.9 million year-on-year.
Operating profit for the building and technical trade division
totalled €116.3 million (€201.9 million). Items affecting
comparability totalled €-52.8 million (€-10.5 million). The
most significant items affecting comparability were related
to a €40.0 million write-down of goodwill for the
Byggmakker building and home improvement chain in
Norway, to the reorganisation of the K-Rauta chain in
Sweden, in which the Swedish building and home
improvement trade operations were concentrated in the K-
Bygg chain, and to acquisitions. The goodwill write-down
for Byggmakker was impacted by weaker-than-anticipated
profit development, a weak cycle in Norwegian
construction, and high interest rates.

|  | 9

Capital expenditure for the building and technical trade
division totalled €293.7 million (€273.0 million). Capital
expenditure included an investment of €82.8 million in the
construction of Onninen and K-Auto’s shared logistics
centre in Hyvinkää, Finland. Construction on the centre is
expected to be completed in 2025. Capital expenditure also
included the acquisition of the Danish building and home
improvement trade company Davidsen Koncernen A/S,
completed on 31 January 2024. Capital expenditure in the
comparison period included the acquisitions of
Elektroskandia Norge AS in Norway, completed on 1 March
2023, and Zenitec Sweden AB, completed on 5 April 2023.
Car trade

| 1-12/2024 | 1-12/2023
Net sales, € million | 1,209.4 | 1,262.3
Car trade | 1,040.9 | 1,078.6
Sports trade | 168.7 | 183.9
Operating profit, comparable, € million | 69.3 | 82.6
Car trade | 61.7 | 73.1
Sports trade | 7.6 | 9.5
Operating margin, comparable, % | 5.7 | 6.5
Car trade | 5.9 | 6.8
Sports trade | 4.5 | 5.1
Return on capital employed, comparable, % | 13.8 | 15.8
Capital expenditure, € million | 89.0 | 80.3
Average number of personnel converted into full-time employees | 1,556 | 1,531

Net sales, € million | 1-12/2024 | 1-12/2023 | Change, % | Change, comparable, %
Car trade | 1,040.9 | 1,078.6 | -3.5 | -3.3
Sports trade | 168.7 | 183.9 | -8.3 | -8.3
Total | 1,209.4 | 1,262.3 | -4.2 | -4.0

Net sales for the car trade division decreased by 4.2%, while
in comparable terms, net sales decreased by 4.0%. Of the
car trade businesses, net sales decreased in new cars, and
increased in used cars and services. In the comparison
period, net sales for new cars were increased by the
clearing of order books as the availability of cars improved.
Net sales for sports trade decreased.
The combined market performance of first registrations of
passenger cars and vans was -15.2%. The combined market
share of the Volkswagen, Audi, SEAT, CUPRA, Porsche and
Bentley passenger cars and Volkswagen vans imported by
Kesko’s car trade division was 14.5% (15.1%).
The comparable operating profit for the car trade division
totalled €69.3 million (€82.6 million). The comparable
operating profit for the car trade businesses decreased by
€11.4 million, as net sales declined. In sports trade, the
comparable operating profit decreased by €1.9 million year-
on-year.
Operating profit for the car trade division totalled €69.3
million (€82.4 million). Items affecting comparability
totalled €0.0 million (€-0.1 million).
Capital expenditure for the car trade division totalled
€89.0 million (€80.3 million). Capital expenditure included
the acquisition of Autotalo Lohja, completed on
1 September 2024.

|  | 10

Changes in Group composition
Kesko acquired 90% of the share capital of the Danish
building and home improvement trade company Davidsen
Koncernen A/S on 31 January 2024. The acquisition of
Autotalo Lohja was completed on 1 September 2024.
Key events during the financial year
Kesko’s Board of Directors appointed Jorma Rauhala as the
managing director of Kesko Corporation and President and
CEO of Kesko Group as of 1 February 2024, as Mikko
Helander announced on 8 December 2023 his intentions to
retire. (Stock exchange release 19.12.2023)
Kesko announced in August 2023 it would expand its
operations to Denmark by acquiring 90% of the shares in
Davidsen Koncernen A/S. On 5 January 2024, the EU
Commission approved the acquisition without conditions.
The transaction was completed on 31 January 2024.
(Investor news releases 23.8.2023 and 31.1.2024)
Kesko withdrew from operating the Neste K service
stations, where it had been responsible for the grocery
trade operations and additional services. During the year,
Kesko withdrew from operating 64 Neste K service stations.
The stations will continue as a service offered by Neste. The
motive behind the decision is the diminished role of grocery
sales at service stations. (Investor news release 23.1.2024)
Kesko Corporation’s Chief Financial Officer Jukka Erlund
announced that he will be leaving Kesko and joining Fazer
Group as Chief Financial Officer. Erlund acted as Kesko’s
CFO and a member of the Group Management Board since
November 2011. (Stock exchange release 13.2.2024)
Sami Kiiski was appointed as President of Kesko’s building
and technical trade division and a member of Group
Management Board, and Johanna Ali was appointed as
acting President of the car trade division and a member of
Group Management Board, both as of 1 April 2024. (Stock
exchange release 20.3.2024)
Anu Hämäläinen (M.Sc. Econ.) was appointed as Kesko’s
Chief Financial Officer and a member of Group
Management Board, and Lasse Luukkainen (Master of
Laws) was appointed as Kesko’s Executive Vice President,
Legal and Sustainability, and a member of Group
Management Board, both effective as of 1 June 2024.
(Stock exchange release 14.5.2024)
The Board of Directors of Kesko Corporation confirmed an
updated strategy for the company. The main pillars of the
strategy remain intact, while each division’s competitive
advantages and objectives were refined. Central to Kesko’s
growth strategy continues to be profitable growth in three
selected divisions, namely grocery trade, building and
technical trade, and car trade. (Investor news release
4.6.2024)
Johanna Ali (M.Sc. Econ.) was appointed as President of
Kesko’s car trade division and a member of Group
Management Board as of 4 June 2024. (Stock exchange
release 4.6.2024)
Kesko established a Green Finance Framework applicable
for the issuance of green debt instruments. (Investor news
release 4.6.2024)
The two largest shareholders in Kesko on 1 September 2024
by votes were K-Retailers' Association and Ilmarinen Mutual
Pension Insurance Company. Both used their right of
nomination for Kesko's Shareholders' Nomination
Committee. The members of Kesko’s Shareholders’
Nomination Committee are Pauli Jaakola, retailer,
appointed by K-Retailers' Association, Jouko Pölönen,
President and CEO, appointed by Ilmarinen Mutual Pension
Insurance Company, and Esa Kiiskinen, Chair of Kesko’s
Board of Directors. At its organisational meeting on 23
September 2024, the Committee elected Pauli Jaakola to
continue as Committee Chair. (Stock exchange releases
7.6.2024 and 23.9.2024)
Kesko agreed to acquire three builders’ merchants in
Denmark: Roslev Trælasthandel A/S, Tømmergaarden A/S,
and CF Petersen & Søn A/S. The combined net sales of the
three operators total some €400 million. The acquisitions
are part of the execution of Kesko’s growth strategy in
Northern Europe, and once completed, will make Kesko’s
subsidiary Davidsen a significant nationwide operator in the
Danish builders’ merchant market. The completion of all
three acquisitions is subject to the approval of the
competition authorities and the fulfilment of certain other
conditions. The transactions are expected to be completed
in the first half of 2025 at the latest. (Investor news release
14.8.2024)
The Finnish Competition and Consumer Authority (FCCA)
investigated actions by Kesko Group company Onninen as
well as several other companies in the HPAC infra plastic
pipe product market for nearly a decade. The investigation
concerned events between 2009 and 2016. Kesko was
aware of the ongoing investigation when it acquired
Onninen in 2016. Kesko was not at any point of the
investigation suspected of violations. In 2022, the FCCA
decided to take the matter to the Market Court, and

|  | 11

proposed that a penalty payment be imposed on Onninen
and the other companies. In its decision on 28 August 2024,
the Market Court dismissed all FCCA demands. The Market
Court furthermore ordered the FCCA to reimburse Onninen
for litigation costs. Apart from the issue of reimbursement
of litigation costs, the Market Court decision has gained
legal force. (Investor news release 28.8.2024)
Kesko signed a €150 million 7-year sustainability-linked loan
with the Nordic Investment Bank (NIB), where the interest
rate margin is tied to Kesko’s attainment of certain
sustainability targets set for greenhouse gas emissions and
food waste. (Investor news release 13.9.2024)
Kesko announced it would be issuing senior unsecured
green notes of €300 million, with a maturity of
approximately five years and four months. The notes
mature on 2 February 2030. The notes carry a fixed annual
interest of 3.500 percent. The issue price of the notes was
99.317 percent. The issue date of the notes was 2 October
2024, and trading began on 4 October 2024 on the list of
sustainable bonds of Nasdaq Helsinki Ltd. The net proceeds
from the notes issue will be used for financing or
refinancing eligible green projects or assets or otherwise in
accordance with the Green Finance Framework established
by Kesko in May 2024. (Stock exchange releases on
20.9.2024, 25.9.2024 and 2.10.2024)
Events after the financial year
Kesko announced on 14 August 2024 that it would acquire
Roslev Trælasthandel A/S and two other Danish builders'
merchant companies. The acquisition of Roslev
Trælasthandel received all necessary approvals and was
completed on 31 January 2025. (Investor news release
31.1.2025)
Resolutions of the 2024 Annual
General meeting
The Annual General Meeting of Kesko Corporation held on
26 March 2024 adopted the company’s financial statements
for 2023. The Annual General Meeting resolved to
distribute a dividend of €1.02 per share – based on the
adopted balance sheet for 2023 – on shares held outside
the company at the time of distribution. The remaining
distributable assets remain in equity. The dividend was paid
in four instalments: the record date of the first dividend
instalment of €0.26/share was 28 March 2024 and the pay
date 9 April 2024; the record date of the second dividend
instalment of €0.25/share was 16 July 2024 and the pay
date 23 July 2024; the record date of the third dividend
instalment of €0.26/share was 15 October 2024 and the
pay date 22 October 2024; and the record date of the
fourth dividend instalment of €0.25/share was 14 January
2025 and the pay date 21 January 2025. The Board was
authorised to decide, if necessary, on new dividend
payment record dates and pay dates for the second, third
and/or fourth instalments, if the rules and statutes of the
Finnish book-entry system change or otherwise so require.
The resolutions of the Annual General Meeting were
communicated in more detail in a stock exchange release
issued on 26 March 2024.
Information contained in the notes to
the financial statements
Information on the Group’s personnel is disclosed in Note
2.5.
Financial risks are presented in Note 4.3 and information on
financial instruments measured at fair value is disclosed in
Note 4.5.
Related party transactions are disclosed in Note 5.2 .
Information on disputes and legal and authority proceedings
is disclosed in Note 5.4.
Corporate governance statement
Kesko Corporation issues the Corporate Governance
Statement in compliance with the reporting requirements of
the Finnish Corporate Governance Code 2025 issued by the
Finnish Securities Market Association and effective as of 1
January 2025. Kesko Corporation issues the statement
separately from the Report by the Board of Directors.
Risk management
Risk management at Kesko is proactive and an integral part
of day-to-day management to assess and manage business-
related opportunities and risks.
Kesko’s divisions and common operations are responsible
for identifying, assessing, handling and managing risks
related to their operations, and they report on risks, risk
management responses and the results of those responses
to the Group risk management function. Members of the

|  | 12

Group Management Board are responsible for the effective
and efficient implementation of internal control and risk
management in their respective areas of responsibility.
A risk management function independent of businesses is
responsible for providing a framework and guidance for
internal control and risk management, and it supports,
coordinates and supervises risk management
implementation in Kesko Group. The Chief Audit and Risk
Officer reports functionally to the Chair of the Audit
Committee and administratively to Kesko’s President and
CEO on matters related to internal audit, and to the
Group’s Chief Financial Officer on matters related to risk
management. The Risk Management Steering Group
headed by the Chief Financial Officer is responsible for
establishing the Group’s overview of the risk situation. The
President and CEO is responsible for the effectiveness and
efficiency of the Group’s risk management, and approves
Group risk reports before they are reviewed by the Board of
Directors. Kesko’s Board of Directors monitors and
assesses the effectiveness of risk management and
supervises the assessment of risks related to the company’s
strategy and operations and their management, aided by
the Audit Committee.
The Group's most significant risks and uncertainties, as well
as material changes in and management responses to them,
including indicators, are reported to Kesko Board's Audit
Committee quarterly in connection with the review of
interim reports, the half-year financial report, and the
financial statements. The Audit Committee Chair reports on
risk management to the Board as part of Audit Committee
reporting. The most significant risks and uncertainties and
emerging risks are reported to the market by the Board in
the Report by the Board of Directors, and any material
changes in them in the interim reports and the half-year
financial report.
Significant risks and uncertainties
Slower-than-anticipated economic
recovery and recovery in demand
High interest rates, weakened employment, and economic
uncertainty have an impact on consumer purchasing power
and companies’ willingness to invest. In grocery trade,
product price has an emphasised impact on consumer
purchase decisions, while customers in car trade may
postpone their purchases. In building and technical trade,
construction and renovation projects may continue to be
postponed, which would impact sales and inventory
management.
Geopolitical risks
Growing tensions in security policy as a result of the war in
Ukraine and other military conflicts, as well as the potential
expansion of the conflicts and tightened military and
economic competition between superpowers could have a
significant impact on Kesko’s operating environment,
supply chain continuity, and product availability.
Cybercrime
Growing, professional cybercrime has resulted in higher risk
on business continuity and loss of critical information.
Targets of cyber-attacks may include, for example, data
systems critical for business continuity or personal data.
Cyber-attacks may result in business disruptions, loss of
customer trust, or fines imposed by authorities.
Compliance with laws and agreements
Changes in legislation and authority regulations could
necessitate significant changes and result in additional
costs. Compliance with laws and agreements is an
important part of Kesko's corporate responsibility. Non-
compliance can result in fines, claims for damages and
other financial losses, as well as loss of trust and reputation.
Climate change
Delays in actions aimed at mitigating climate change and an
increase in extreme weather phenomena can impact
product availability and cause disturbances in logistics and
the store site network. The impacts of Kesko’s operations
on the climate, in turn, are related to Kesko’s energy
solutions and emissions, and the lifecycle impact of
products and services sold in the whole supply chain.
Product safety
A failure in product safety control or in the quality
assurance of the supply chain could result in financial
losses, the loss of reputation and customer trust, or, in the
worst case, a health hazard to customers.
Store sites and properties
Good store sites are a key competitive factor for business
growth and profitability. The acquisition of store sites can
be delayed by town planning and permit procedures and the
availability and pricing of sites. Considerable amounts of
capital or lease liabilities are tied up in properties for years.
As a result of urbanisation, changes in the market situation,
growing significance of e-commerce, or a chain concept
proving inefficient, there is a risk that a store site or a
property becomes unprofitable, and operations are
discontinued while long-term liabilities remain.

|  | 13

Responsible operating practices and
reputation management
Various aspects of corporate responsibility, such as
ensuring responsibility in the purchasing chain of products,
fair and equal treatment of employees, the prevention of
corruption, and environmental protection, are increasingly
important to customers. Any failures in corporate
responsibility and sustainability could result in negative
publicity for Kesko and cause operational and financial
damage.
Reporting to the market
In its investor communication and financial reporting, Kesko
follows the disclosure policy approved by Kesko’s Board of
Directors. Kesko's objective is to produce and publish
reliable and timely information. Disclosure follows the
principle of providing all market participants information in
a timely manner and non-selectively to form the basis for
the price formation of Kesko’s financial instruments such as
shares. Should the information published by Kesko prove
incorrect, or should communications fail to meet
regulations in other respects, it could result in losing
investor and other stakeholder trust and in possible
sanctions. Significant business arrangements, tight
disclosure schedules and the dependency on information
systems create challenges for the accuracy of financial
information.
Risks of damage
Accidents, natural phenomena and epidemics can cause
significant damage to people, property or business. In
addition, risks of damage may cause business disruptions
that cannot be prevented.
Proposal for profit distribution
The Board of Directors of Kesko Corporation proposes to
the Annual General Meeting to be held on 24 March 2025
that a dividend of €0.90 per share be paid for the year 2024
based on the adopted balance sheet on shares held outside
the company at the date of dividend distribution. The
remaining distributable assets will remain in equity. The
Board proposes that the dividend be paid in four
instalments.
The first instalment of €0.23 per share is to be paid to
shareholders registered in the company's register of
shareholders kept by Euroclear Finland Ltd on the
instalment’s record date 26 March 2025. The Board
proposes that the dividend instalment pay date be
2 April 2025.
The second instalment of €0.22 per share is to be paid to
shareholders registered in the company's register of
shareholders kept by Euroclear Finland Ltd on the
instalment’s record date 15 July 2025. The Board proposes
that the dividend instalment pay date be 22 July 2025.
The third instalment of €0.23 per share is to be paid to
shareholders registered in the company's register of
shareholders kept by Euroclear Finland Ltd on the
instalment’s record date 14 October 2025. The Board
proposes that the dividend instalment pay date be
21 October 2025.
The fourth instalment of €0.22 per share is to be paid to
shareholders registered in the company's register of
shareholders kept by Euroclear Finland Ltd on the
instalment’s record date 13 January 2026. The Board
proposes that the dividend instalment pay date be
20 January 2026.
The Board proposes that it be authorised to decide, if
necessary, on new dividend payment record dates and pay
dates for the second, third and/or fourth instalments, if the
rules and statutes of the Finnish book-entry system change
or otherwise so require, or if the payment of dividends is
prevented by laws or regulations applied.
As at the date of the proposal for the distribution of profit,
4 February 2025, a total of 397,956,408 shares were held
outside the company, and the corresponding total amount
of dividends is €358,160,767.20.
The distributable assets of Kesko Corporation total
€1,539,047,794.71, of which profit for the financial year is
€357,128,787.22.
Annual General Meeting
The Board of Directors has decided that Kesko’s Annual
General Meeting will be held on 24 March 2025 at 1.00 pm
(EET). Kesko Corporation will publish a notice of the
General Meeting on the its website and as a stock exchange
release on 5 February 2025.

|  | 14

Shares and securities markets
At the end of 2024, the total number of shares in Kesko Corporation was 400,079,008, of
which 126,948,028 or 31.7%, were A shares, and 273,130,980 or 68.3%, were B shares. On 31
December 2024, Kesko Corporation held 2,122,600 of its own B shares as treasury shares.
These treasury shares accounted for 0.78% of the total number of B shares, 0.53% of the
total number of shares, and 0.14% of the votes attached to all shares in the company. The
total number of votes attached to all shares was 1,542,611,260. Each A share carries ten (10)
votes and each B share one (1) vote. The company cannot vote with own shares held by it as
treasury shares and no dividend is paid on such shares. At the end of 2024 , Kesko
Corporation's share capital was €197,282,584.
The price of a Kesko A share quoted on Nasdaq Helsinki was €18.02 at the end of 2023 and
€18.06 at the end of 2024 , representing an increase of 0.2%. Meanwhile, the price of a
Kesko B share was €17.93 at the end of 2023 and €18.18 at the end of 2024, representing an
increase of 1.4%. In 2024, the highest price for an A share was €20.05 and the lowest €16.06,
while the highest price for a B share was €20.49 and the lowest €15.63. The Nasdaq Helsinki
All-Share index (OMX Helsinki) was down by 6.2% and the weighted OMX Helsinki Cap
index down by 4.5% in 2024. The Retail Sector Index was down by 13.8% .
The market capitalisation of Kesko’s A shares was €2,293 million at the end of 2024, while
the market capitalisation of Kesko’s B shares was €4,927 million, excluding the shares held
by the parent company as treasury shares. The combined market capitalisation of the A and
B shares was €7,220 million, up by €76 million compared to the end of 2023.
In 2024, a total of 5.2 million Kesko A shares were traded on Nasdaq Helsinki. The exchange
value of the A shares was €93.4 million. Meanwhile, 139.1 million B shares were traded, for an
exchange value of €2,442.2 million. Nasdaq Helsinki accounted for over 95% of the trading
on Kesko’s A and B shares. Kesko shares were also traded on multilateral trading facilities,
the most significant of which were Turquoise and BATS (source: Euroland).
At the end of 2024, the number of registered shareholders was 113,700. At the end of 2024,
foreign ownership of all shares was 33.2%, and foreign ownership of B shares 47.7%.
Share performance turnover

|  | 2022 | 2023 | 2024
Share price as at 31 Dec. |  |  |  |
A share | € | 20.35 | 18.02 | 18.06
B share | € | 20.62 | 17.93 | 18.18
Average share price |  |  |  |
A share | € | 21.89 | 18.47 | 17.80
B share | € | 23.11 | 18.49 | 17.56
Market capitalisation as at 31 Dec., A share | € million | 2,583.4 | 2,287.6 | 2,292.7
Market capitalisation as at 31 Dec., B share | € million | 5,577.9 | 4,855.8 | 4,926.9
Turnover |  |  |  |
A share | Million pcs | 7 | 6 | 5
B share | Million pcs | 144 | 143 | 139
Relative turnover rate |  |  |  |
A share | % | 5.8 | 4.4 | 4.1
B share | % | 52.2 | 52.3 | 50.5
Diluted average number of shares | Thousand pcs | 397,383 | 397,706 | 397,922

|  | 15

Analysis of shareholding
Analysis of shareholding by shareholder type as at 31 Dec. 2024

All shares | Number of shares, pcs | Percentage of all shares, %
Nominee-registered and non-Finnish holders | 132,739,287 | 33.18
Households | 103,856,060 | 25.96
Non-financial corporations and housing corporations | 95,387,211 | 23.84
General government* | 31,805,411 | 7.95
Non-profit institutions serving households** | 21,743,369 | 5.43
Financial and insurance corporations | 14,547,670 | 3.64
Total | 400,079,008 | 100.00

A shares | Number of shares, pcs | Percentage of A shares, % | Percentage of all shares, %
Non-financial corporations and housing corporations | 74,953,400 | 59.04 | 18.73
Households | 23,839,798 | 18.78 | 5.96
General government* | 14,169,777 | 11.16 | 3.54
Non-profit institutions serving households** | 11,260,708 | 8.87 | 2.81
Nominee-registered and non-Finnish holders | 2,437,873 | 1.92 | 0.61
Financial and insurance corporations | 286,472 | 0.23 | 0.07
Total | 126,948,028 | 100.00 | 31.73

B shares | Number of shares, pcs | Percentage of B shares, % | Percentage of all shares, %
Nominee-registered and non-Finnish holders | 130,301,414 | 47.71 | 32.57
Households | 80,016,262 | 29.30 | 20.00
Non-financial corporations and housing corporations | 20,433,811 | 7.48 | 5.11
General government* | 17,635,634 | 6.46 | 4.41
Financial and insurance corporations | 14,261,198 | 5.22 | 3.56
Non-profit institutions serving households** | 10,482,661 | 3.84 | 2.62
Total | 273,130,980 | 100.00 | 68.27
* General government, for example, municipalities, the provincial administration of Åland, authorised pension providers and social security funds ** Non-profit institutions, for example, foundations awarding scholarships, organisations safeguarding certain interests and various charitable associations

Analysis of shareholding by number of shares as at 31 Dec. 2024

All shares Number of shares | Number of shareholders, pcs | Percentage of share- holders, % | Share total, pcs | Percentage of shares, %
1−100 | 49,558 | 43.59 | 1,983,218 | 0.50
101−500 | 33,394 | 29.37 | 8,562,712 | 2.14
501−1,000 | 10,876 | 9.57 | 8,141,322 | 2.03
1,001−5,000 | 14,549 | 12.80 | 33,265,124 | 8.31
5,001−10,000 | 2,632 | 2.31 | 18,626,702 | 4.66
10,001−50,000 | 2,236 | 1.97 | 45,354,794 | 11.34
50,001−100,000 | 233 | 0.20 | 16,168,338 | 4.04
100,001−500,000 | 181 | 0.16 | 36,411,360 | 9.10
500,001− | 41 | 0.04 | 231,565,438 | 57.88
Total | 113,700 | 100.00 | 400,079,008 | 100.00

|  | 16

A shares Number of shares | Number of shareholders, pcs | Percentage of A share- holders, % | A share total, pcs | Percentage of A shares, %
1−100 | 16,170 | 55.58 | 560,115 | 0.44
101−500 | 6,753 | 23.21 | 1,651,190 | 1.30
501−1,000 | 1,674 | 5.75 | 1,248,899 | 0.98
1,001−5,000 | 2,638 | 9.07 | 6,787,641 | 5.35
5,001−10,000 | 762 | 2.62 | 5,478,926 | 4.32
10,001−50,000 | 863 | 2.97 | 17,973,813 | 14.16
50,001−100,000 | 123 | 0.42 | 8,850,369 | 6.97
100,001−500,000 | 97 | 0.33 | 19,090,388 | 15.04
500,001− | 12 | 0.04 | 65,306,687 | 51.44
Total | 29,092 | 100.00 | 126,948,028 | 100.00

B shares Number of shares | Number of shareholders, pcs | Percentage of B share- holders, % | B share total, pcs | Percentage of B shares, %
1−100 | 36,868 | 40.44 | 1,545,267 | 0.57
101−500 | 28,286 | 31.03 | 7,362,421 | 2.70
501−1,000 | 9,772 | 10.72 | 7,326,793 | 2.68
1,001−5,000 | 12,570 | 13.79 | 28,112,051 | 10.29
5,001−10,000 | 2,035 | 2.23 | 14,339,116 | 5.25
10,001−50,000 | 1,405 | 1.54 | 27,307,774 | 10.00
50,001−100,000 | 111 | 0.12 | 7,493,863 | 2.74
100,001−500,000 | 86 | 0.09 | 17,241,669 | 6.31
500,001− | 26 | 0.03 | 162,402,026 | 59.46
Total | 91,159 | 100.00 | 273,130,980 | 100.00

10 largest shareholders by number of shares held
as at 31 Dec. 2024

|  | Number of shares, pcs | Percentage of shares, % | Number of votes | Percentage of votes, %
1. | K-Retailers' Association | 21,858,292 | 5.46 | 218,582,920 | 14.17
2. | Ilmarinen Mutual Pension Insurance Company | 13,760,000 | 3.44 | 137,600,000 | 8.92
3. | Vähittäiskaupan Takaus Oy | 13,195,008 | 3.30 | 131,950,080 | 8.55
4. | Elo Mutual Pension Insurance company | 6,073,725 | 1.52 | 9,725,250 | 0.63
5. | Varma Mutual Pension Insurance Company | 5,978,944 | 1.49 | 5,978,944 | 0.39
6. | Foundation for Vocational Training in the Retail Trade | 5,709,109 | 1.43 | 57,091,090 | 3.70
7. | The State Pension Fund | 3,500,000 | 0.87 | 3,500,000 | 0.23
8. | K-Food Retailers' Club | 2,605,792 | 0.65 | 26,057,920 | 1.69
9. | Heimo Välinen Oy | 2,280,000 | 0.57 | 22,800,000 | 1.48
10. | OP-Finland Fund | 2,183,510 | 0.55 | 2,183,510 | 0.14

Table above includes registered shareholders.The table does not contain shares held by
Kesko Corporation, amounting to 2,122,600 on 31 December 2024.
Nominee-registered shareholder BlackRock, Inc held 4.91% of shares and 1.27% of votes in
Kesko Corporation on 31 December 2024 (stock exchange release 2 January 2025).

|  | 17

10 largest shareholders by number of votes as at 31.12.2024

|  | Number of shares, pcs | Percentage of shares, % | Number of votes | Percentage of votes, %
1. | K-Retailers' Association | 21,858,292 | 5.46 | 218,582,920 | 14.17
2. | Ilmarinen Mutual Pension Insurance Company | 13,760,000 | 3.44 | 137,600,000 | 8.92
3. | Vähittäiskaupan Takaus Oy | 13,195,008 | 3.30 | 131,950,080 | 8.55
4. | Foundation for Vocational Training in the Retail Trade | 5,709,109 | 1.43 | 57,091,090 | 3.70
5. | K-Food Retailers' Club | 2,605,792 | 0.65 | 26,057,920 | 1.69
6. | Heimo Välinen Oy | 2,280,000 | 0.57 | 22,800,000 | 1.48
7. | Food Paradise Oy | 1,564,164 | 0.39 | 15,641,640 | 1.01
8. | Elo Mutual Pension Insurance company | 6,073,725 | 1.52 | 9,725,250 | 0.63
9. | Pokela Oy Iso Omena | 792,600 | 0.20 | 7,926,000 | 0.51
10. | T.A.T. Invest Oy | 792,080 | 0.20 | 7,726,400 | 0.50

Management's shareholdings
At the end of December 2024, Kesko Corporation's Board members, the President and CEO
and the corporations controlled by them held 778,910 Kesko Corporation A shares and
399,125 Kesko Corporation B shares, i.e. a total of 1,178,035 shares, which represents 0.29%
of the total number of shares and 0.53% of votes carried by all shares of the Company.
At 31 December 2024 the President and CEO held 238,029 Kesko Corporation B shares,
which represented 0.06% of the total number of shares and 0.02% of votes carried by all
shares of the Company. At 31 December 2024, the Group Management Board including the
President and CEO held 2,824 Kesko Corporation A shares and 581,181 Kesko Corporation B
shares, which represented 0.15% of the total number of shares and 0.04% of votes carried by
all shares of the Company.
Board authorities
Kesko has a share-based commitment and incentive scheme. To implement the scheme,
Kesko’s Board of Directors may decide, within the share issue authorisations granted by the
company’s General Meeting, to transfer Kesko B shares held by the company as treasury
shares. In 2024, Kesko Corporation transferred 196,208 Kesko B shares held as treasury
shares to members of management and other key persons in the company, while a total of
17,100 B shares were returned to Kesko in accordance with the terms and conditions of
Kesko's share-based commitment and incentive plan. Kesko issued related stock exchange
releases 15 March 2024, 20 March 2024, 18 June 2024 and 8 July 2024. Kesko issued a stock
exchange release on 30 January 2024 regarding the most recent share-based commitment
and incentive plans. In addition, Kesko transferred 7,789 B shares held by the company as
treasury shares to members of Kesko’s Board of Directors as part of their annual fees, and
issued a related stock exchange release on 26 April 2024.
Kesko’s Annual General Meeting of 26 March 2024 authorised the Board to decide on the
issuance of a maximum of 33,000,000 new B series shares or B shares held by the company
as treasury shares, and on the repurchase of a maximum of 16,000,000 of the company’s
own B shares. The authorisations are valid until 30 June 2025, and were communicated in a
stock exchange release issued on 26 March 2024.

|  | 18

Group’s key performance indicators

|  | 2022 | 2023 | 2024
Income statement |  |  |  |
Net sales | € million | 11,809.0 | 11,783.8 | 11,920.1
Change in net sales | % | 4.5 | -0.2 | 1.2
Change in net sales, comparable | % | 4.4 | -0.8 | -2.3
Operating profit, comparable | € million | 815.1 | 712.0 | 650.1
Operating margin, comparable | % | 6.9 | 6.0 | 5.5
Operating profit | € million | 816.5 | 695.4 | 579.5
Operating margin | % | 6.9 | 5.9 | 4.9
Profit for the year | € million | 609.9 | 495.6 | 379.1
Profit for the year as percentage of net sales | % | 5.2 | 4.2 | 3.2
Profitability |  |  |  |
Return on equity | % | 23.1 | 18.0 | 13.8
Return on equity, comparable | % | 23.2 | 18.5 | 16.1
Return on capital employed | % | 17.0 | 13.1 | 10.1
Return on capital employed, comparable | % | 16.9 | 13.4 | 11.3
Funding and financial position |  |  |  |
Interest-bearing net debt | € million | 2,104.2 | 2,559.8 | 2,908.2
Interest-bearing net debt excluding lease liabilities | € million | 184.1 | 561.9 | 857.2
Gearing | % | 76.7 | 92.8 | 106.3
Equity ratio | % | 36.9 | 35.8 | 32.5
Interest-bearing net debt/EBITDA excluding the impact of IFRS 16 |  | 0.2 | 0.7 | 1.1
Interest-bearing net debt/EBITDA, IFRS |  | 1.6 | 2.1 | 2.4

|  | 2022 | 2023 | 2024
Other performance indicators |  |  |  |
Capital expenditure | € million | 449.2 | 678.9 | 675.9
Capital expenditure as percentage of net sales | % | 3.8 | 5.8 | 5.7
Cash flow from operating activities | € million | 915.2 | 1,049.5 | 1,008.2
Cash flow from investing activities | € million | -344.3 | -590.2 | -597.5
Average number of personnel converted into full-time employees |  | 14,633 | 14,766 | 15,347
Personnel as at 31 Dec. |  | 17,841 | 17,702 | 18,309
|  | 2022 | 2023 | 2024
Share performance indicators |  |  |  |
Earnings/share, basic and diluted | € | 1.53 | 1.25 | 0.95
Earnings/share, comparable, basic | € | 1.54 | 1.28 | 1.11
Equity/share | € | 6.90 | 6.93 | 6.84
Dividend/share* | € | 1.08 | 1.02 | 0.90
Payout ratio | % | 70.4 | 81.9 | 94.5
Payout ratio, comparable | % | 70.1 | 79.7 | 80.9
Cash flow from operating activities/share | € | 2.30 | 2.64 | 2.53
Price/earnings ratio (P/E), A share |  | 13.26 | 14.46 | 18.95
Price/earnings ratio (P/E), B share |  | 13.44 | 14.39 | 19.08
Effective dividend yield, A share | % | 5.3 | 5.7 | 5.0
Effective dividend yield, B share | % | 5.2 | 5.7 | 5.0
* Proposal to the General Meeting |  |  |  |

|  | 19

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.
Change in comparable net sales is used to reflect changes in the Group’s business volume
between periods. The indicator reflects the change in net sales excluding the impact of
acquisitions and divestments, in local currencies. The comparable net sales have been
calculated by including in the net sales the business operations that have been part of Kesko
Group in both the reporting period as well as the comparison period. Other structural
arrangements related to acquisitions and divestments have been adjusted in the same
manner as acquisitions.
Exceptional transactions outside the ordinary course of business are treated as items
affecting comparability. 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. Impairment charges and significant profit
and loss items related to changes in lease agreements are presented in the income statement
under depreciation, amortisation and impairment charges.
Alternative performance measures that have been adjusted for the impact of IFRS 16 are
used to monitor the achievement of certain financial targets. The EBITDA excluding the
impact of IFRS 16 corresponds to EBITDA before the adoption of IFRS 16, and the interest-
bearing net debt excluding lease liabilities correspond to interest-bearing net debt before the
adoption of the standard. These restated indicators are included as components in the
Group’s financial target “interest-bearing net debt excluding lease liabilities divided by
EBITDA excluding the impact of IFRS 16”.
In addition, financial performance indicators for the Group have been presented as
alternative performance measures. The management uses these indicators to monitor and
analyse business performance, profitability and financial position.
Profitability

Operating profit, comparable |  | Operating profit +/– items affecting comparability
Items affecting comparability |  | – gains on disposal + losses on disposal + impairment charges +/- structural arrangements
Return on equity, % |  | (Profit/loss before tax - Income tax) x 100 / Shareholders' equity, average of the beginning and end of the reporting period
Return on equity, %, comparable |  | (Profit/loss for the preceding 12 months before tax - Income tax for the preceding 12 months) x 100 / Shareholders' equity on average for 12 months
Return on capital employed, % |  | Operating profit x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for the reporting period
Return on capital employed, %, comparable |  | Comparable operating profit x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non- interest-bearing liabilities) on average for 12 months
EBITDA |  | Operating profit + Depreciation and amortisation + Impairments
EBITDA excluding the impact of IFRS 16 |  | EBITDA – Rents from lease agreements

|  | 20

Funding, capital expenditure and financial position

Equity ratio, % |  | Shareholders’ equity x 100 / (Total assets – Advances received)
Gearing, % |  | Interest-bearing net debt x 100 / Shareholders' equity
Interest-bearing net debt |  | Interest-bearing liabilities + Lease liabilities – Current other financial assets – Cash and cash equivalents
Interest-bearing net debt excluding lease liabilities |  | Interest-bearing net debt – Lease liabilities
Interest-bearing net debt excluding lease liabilities / EBITDA excluding the impact of IFRS 16 |  | Interest-bearing net debt excluding lease liabilities / EBITDA excluding the impact of IFRS 16
Interest-bearing net debt / EBITDA, including the impact of IFRS 16 |  | Interest-bearing net debt / EBITDA, including the impact of IFRS 16
Capital expenditure |  | Performance indicator includes investments in tangible and intangible assets, subsidiary shares, shares in associates and joint ventures and other shares. Additions of right-of-use assets for leases in the consolidated statement of financial position are not capital expenditure. Redemption of a leased property (right- of-use asset) is reported as capital expenditure.

Share performance indicators

Earnings/share, basic |  | (Profit/loss - Non-controlling interests) / Average number of shares
Earnings/share, diluted |  | (Profit – Non-controlling interest) / Average diluted number of shares
Earnings/share, basic, comparable |  | (Profit/loss adjusted for items affecting comparability - Non- controlling interests adjusted for items affecting comparability) / Average number of shares
Equity/share |  | Equity attributable to owners of the parent / Basic number of shares at the balance sheet date
Payout ratio, % |  | (Dividend/share) x 100 / (Earnings/share)
Price/earnings ratio (P/E) |  | Share price at balance sheet date / (Earnings/share)
Effective dividend yield, % |  | (Dividend/share) x 100 / Share price at balance sheet date
Market capitalisation |  | Share price at balance sheet date x Number of shares
Cash flow from operating activities/share |  | Cash flow from operating activities / Average number of shares
Yield of A share and B share |  | Change in share price + Annual dividend yield

|  | 21

Reconciliation of alternative performance measures to IFRS financial statements

€ million | 2024 | 2023
Items affecting comparability |  |
Gains on disposal | 11.4 | 0.4
Losses on disposal | -1.6 | -1.0
Impairment charges | -40.0 | -
Structural arrangements | -40.4 | -16.1
Items in operating profit affecting comparability | -70.6 | -16.7
Items in financial items affecting comparability | -0.8 | -0.2
Items in income taxes affecting comparability | 7.7 | 3.1
Total items affecting comparability | -63.7 | -13.7
Items in EBITDA affecting comparability | -12.3 | -12.8
Operating profit, comparable |  |
Operating profit | 579.5 | 695.4
Net of |  |
Items in operating profit affecting comparability | -70.6 | -16.7
Operating profit, comparable | 650.1 | 712.0
EBITDA |  |
Operating profit | 579.5 | 695.4
Plus |  |
Depreciation and impairment charges | 247.9 | 184.0
Depreciation and impairment charges for right-of-use assets | 375.5 | 353.2
EBITDA | 1,202.9 | 1,232.5
EBITDA, comparable |  |
EBITDA | 1,202.9 | 1,232.5
Net of |  |
Items in EBITDA affecting comparability | -12.3 | -12.8
EBITDA, comparable | 1,215.2 | 1,245.3

€ million | 2024 | 2023
Profit before tax, comparable |  |
Profit before tax | 471.5 | 613.5
Net of |  |
Items in operating profit affecting comparability | -70.6 | -16.7
Items in financial items affecting comparability | -0.8 | -0.2
Profit before tax, comparable | 543.0 | 630.4
Net profit, comparable |  |
Profit before tax, comparable | 543.0 | 630.4
Net of |  |
Income tax | 92.0 | 118.0
Items in income taxes affecting comparability | 7.7 | 3.1
Net profit, comparable | 443.3 | 509.3
Net profit attributable to owners of the parent, comparable |  |
Net profit, comparable | 443.3 | 509.3
Net of |  |
Net profit attributable to non-controlling interests | -0.4 | -
Net profit attributable to owners of the parent, comparable | 442.9 | 509.3
Earnings per share, comparable, € |  |
Net profit attributable to the owners of the parent, comparable | 442.9 | 509.3
Average number of shares, basic, 1,000 pcs | 397,922 | 397,706
Earnings per share, comparable, € | 1.11 | 1.28
Return on capital employed, % |  |
Operating profit | 579.5 | 695.4
Capital employed, average | 5,758.7 | 5,313.3
Return on capital employed, % | 10.1 | 13.1
Return on capital employed, comparable, % |  |
Operating profit, comparable | 650.1 | 712.0
Capital employed, average | 5,758.7 | 5,313.3
Return on capital employed, comparable, % | 11.3 | 13.4

|  | 22

€ million | 2024 | 2023
Return on equity, % |  |
Net profit | 379.1 | 495.6
Equity, average | 2,746.7 | 2,750.3
Return on equity, % | 13.8 | 18.0
Return on equity, comparable, % |  |
Net profit, comparable | 443.3 | 509.3
Equity, average | 2,746.7 | 2,750.3
Return on equity, comparable, % | 16.1 | 18.5
Equity ratio, % |  |
Shareholders’ equity | 2,734.9 | 2,758.4
Total assets | 8,471.2 | 7,754.3
Advances received | 43.4 | 56.7
Equity ratio, % | 32.5 | 35.8

|  | 23

SUSTAINABILITY
STATEMENT

General information ..................................................... | 24
Kesko in brief .................................................................. | 24
General basis of preparation ......................................... | 24
Material sustainability topics and sustainability targets ............................................................................. | 25
Identification and assessment of material impacts, risks and opportunities .................................................. | 27
Strategy, business model and value chain ................... | 30
Interests and views of stakeholders .............................. | 32
Sustainability governance .............................................. | 33
Environment ................................................................... | 36
EU Taxonomy .................................................................. | 36
E1 Climate change .......................................................... | 46
E5 Resource use and circular economy ........................ | 56
Social ............................................................................... | 61
S1 Own workforce .......................................................... | 61
S2 Workers in the value chain ....................................... | 73
S4 Consumers and end-users ....................................... | 77
Governance .................................................................... | 83
G1 Business conduct ...................................................... | 83
Appendices to sustainability statement .................... | 87

This report is a translation of the Finnish original.
Sustainability statement is part of the Report by the Board of
Directors.

|  | 24

GENERAL INFORMATION
Kesko in brief
Kesko is a Finnish listed trading sector company. Kesko has approximately 1,700 stores
engaged in chain operations in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania
and Poland.
Kesko Group's reportable segments consist of its business divisions, namely the grocery
trade, the building and technical trade, and the car trade.
The Group's parent company, Kesko Corporation, is a Finnish public limited company
constituted in accordance with the laws of Finland. The Company's business ID is 0109862-8,
it is domiciled in Helsinki, Finland and it's registered address is PO Box 1, 00016 KESKO,
Finland.
General basis of preparation
Kesko prepares Kesko Group’s sustainability statement annually. The scope of the
sustainability statement is the same as that of the consolidated financial statements, and the
sustainability statement reports on the Group as a whole. Sustainability reporting covers the
subsidiaries included in Kesko’s consolidated financial statements. Associates and joint
ventures included in the consolidated financial statements using the equity method are not
included in the Group‘s sustainability reporting, as they are reported as part of Kesko’s value
chain through a potential business relationship. Information on acquired subsidiaries is
included in the sustainability statement from the date on which control of the company
transfers to Kesko Group. The sustainability statement covers Kesko’s upstream and
downstream value chains. The sustainability statement has the same reporting period as the
consolidated financial statements.
Kesko’s sustainability statement has been prepared for the first time in accordance with the
principles of the European Sustainability Reporting Standards (ESRS) as defined in the EU’s
Corporate Sustainability Reporting Directive (CSRD). Kesko is using the transitional
provision enabled by the ESRS 1 General Requirements Standard, in which the undertaking is
not required to disclose the comparative information in the first year of preparation of the
sustainability statement under the ESRS. The Standard also contains a list of disclosure
requirements that are phased in. These simplifications are applied in particular to the
disclosure requirements for financial effects.
Comparative information for the year 2023 is included in the tables of performance
indicators for turnover, capital expenditures, and operating expenses in accordance with the
Taxonomy Regulation. This comparative information has not been subject to assurance
procedures by the sustainability reporting auditor.
A separate statement on due diligence and a statement on risk management and internal
controls over sustainability reporting have not been included as part of the first sustainability
statement. The definition and implementation of processes will be continued during 2025.
The Sustainability Audit Firm Deloitte Oy has issued the company with a third-party
sustainability reporting auditor’s limited assurance engagement on Kesko’s sustainability
statement in accordance with ISAE 3000 (revised).
Kesko Group’s sustainability statement does not cover the tagging of the Group
sustainability statement with digital XBRL sustainability tags in accordance with Chapter 7,
Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting
companies have not had the possibility to comply with that provision in the absence of the
ESEF regulation or other European Union legislation.
Kesko’s Board of Directors approved the publication of this sustainability statement on
4 February 2025.

|  | 25

Material sustainability topics and sustainability targets
Material sustainability topics
As a result of the double materiality assessment, Kesko identified material impacts related to
six ESRS standards and their sub-topics. The identified material impacts are either actual
impacts or potential impacts with a time horizon that has been estimated to be short term.
Risks were identified for a total of four standards. Identified risks are either short- or
medium-term risks. No material opportunities were identified in the assessment.
Based on the double materiality assessment process, no material impacts, risks or
opportunities were identified for a total of four standards, E2 Pollution, E3 Water and marine
resources, E4 Biodiversity and ecosystems and S3 Affected communities.
The material impacts and risks are described in more detail in connection with the
information on each topical standard.

ESRS standards | Material sustainability topics
Environment
| Climate change | Climate change mitigation Energy
| Resource use and circular economy | Resource outflows related to products and services: Packaging Waste Food waste
Social
| Own workforce | Working conditions Equal treatment and opportunities for all
| Workers in the value chain | Working conditions Child labour and forced labour
| Consumers and end- users | Health and safety Privacy
Governance
| Business conduct | Corporate culture Protection of whistleblowers Management of relationships with suppliers Corruption and bribery
Non-material ESRS standards
| Pollution |
| Water and marine resources |
| Biodiversity and ecosystems |
| Affected communities |

|  | 26

Sustainability targets
Kesko has set sustainability targets and more details on the setting and progress of these is
provided in the information on each topic-specific standard. The targets have been set as
part of the update of Kesko’s sustainability strategy in 2024. The target related to improving
energy efficiency is part of Kesko’s energy strategy. The energy strategy was approved by
the Group Management Board in 2024. The sustainability statement includes the targets set
out in the sustainability strategy that will contribute to addressing the material impacts and
risks identified in the double mater iality assessment.
In 2024, the Board of Directors approved the Group's sustainability strategy for the strategy
period 2024-2026 and the strategic targets. The President and CEO is responsible for the
implementation of the strategic targets set out in the sustainability strategy and for reporting
progress to the Board of Directors. Key stakeholders have not been significantly involved in
the process of setting the targets.

|  |  | Target
Target | Unit | 2024 | 2025 | 2026 | 2030
Environment |  |  |  |  |
E1 Climate change |  |  |  |  |
Greenhouse gas emissions (Scope 1 + Scope 2 market-based) | tCO2eq | 84,576 |  |  | ~59,000
Greenhouse gas emissions (Scope 3 Purchased goods and services), emissions reductions targets of suppliers | % | 48% |  | 67% |
Energy efficiency measures | GWh | 20.9 |  |  | 95.0
E5 Resource use and circular economy |  |  |  |  |
Waste recycling rate | % | 67% |  |  | 73%
Food waste in Kesko’s warehousing and logistics operations | % | 0.45% |  |  | 0.22%
Food waste in K-food retailers’ store operations | % | 1.68% |  |  | 1.10%
Social |  |  |  |  |
S1 Own workforce |  |  |  |  |
Workplace injuries, own workforce | Total Recordable Injury Frequency (TRIF) | 25.9 |  |  | 22.0
Employee wellbeing | Wellbeing index | 83 |  |  | 86
Diversity and inclusion | D&I index | 87 |  |  | 89
Gender balance in top management | % of underrepresented gender | 27.7% |  |  | 40.0%
Gender balance in middle management | % of underrepresented gender | 32.8% |  |  | 45.0%
S4 Consumers and end-users |  |  |  |  |
Decrease the amount of salt in private label products | kg | 15,353 | 50,000 |  |
Decrease the amount of sugar in private label products | kg | 97,171 | 200,000 |  |
Decrease the amount of saturated fat in private label products | kg | 32,347 | 50,000 |  |
Governance |  |  |  |  |
G1 Business Conduct |  |  |  |  |
Employee commitment to K Code of Conduct | % | 85% |  |  | 100%

|  | 27

Identification and assessment of material impacts, risks
and opportunities
Kesko's double materiality assessment was conducted in two parts during 2023-2024. In the
first phase of the assessment in 2023, sustainability impacts, risks, and opportunities were
identified within Kesko's own operations and value chain, and a preliminary view of their
materiality was established.
Building on the results of the first phase, the second phase of the materiality assessment
included a more detailed identification of impacts and strengthened their connection to the
topics, sub-topics, and sub-sub-topics of the ESRS standards. The impacts were identified in
topic-specific workshops and scored to achieve preliminary prioritization. In the next phase,
the impact scores were reviewed to ensure they were consistent and that no impact was
over- or underestimated. The impacts were assessed based on their severity and likelihood.
The severity of an impact is based on its scale, scope, and, in the case of negative impacts, its
remediability.
The identification and assessment of risks and opportunities were conducted as part of
Kesko's risk management process. Kesko's risk management process follows the
methodology of the COSO Enterprise Risk Management model. The assessment of risks and
opportunities was carried out by division, after which a Group-level assessment was formed.
The sustainability risk assessment was also reviewed alongside other risks identified in the
Group's risk assessments. Risks and opportunities were evaluated based on their financial
impact and likelihood. The assessment examined potential risks or opportunities arising from
identified impacts. Potential negative impacts related to value chain employees, product
safety, and data protection also carry the risk of negative financial impacts for Kesko. The
same scale, commonly used in Kesko's risk management process, was applied in the risk
assessment. No material opportunities were identified in the assessment.
The impacts and risks that exceeded the defined materiality threshold were classified as
material. Based on the scoring, the impacts and risks identified as material were reviewed by
management, where the final determination of material sustainability topics was made.
The majority of the assessment of impacts, risks, and opportunities was conducted internally
within the Group. Experts from all three of Kesko's divisions and common functions
participated in this work. The double materiality assessment covers not only Kesko's own
operations but also the identification and assessment of impacts, risks, and opportunities in
the upstream and downstream value chain. Stakeholder consultations were conducted
through separate interviews, with a focus on financial market participants, suppliers, and B2B
customers. In this process, we gathered information on how stakeholders perceive the key
impacts, risks, and opportunities of Kesko’s operations across various sustainability topics.
The interviews also validated the existing view of material sustainability topics for Kesko. The
results of the internally conducted double materiality assessment and the stakeholder
interviews supported each other.
The results of the double materiality assessment were first presented to the Group
Management Board and the Audit Committee in September 2024. The double materiality
assessment and the significant changes made to it after September 2024 were reviewed by
the Audit Committee and approved by the Board of Directors on February 4, 2025, as part
of the final sustainability statement.
Kesko updated its strategy in May 2024 for the strategy period 2024-2026. In connection
with the update, Kesko emphasises being a forerunner in sustainability as a competitive
advantage. During the strategy work, Kesko's divisions identified impacts and business
opportunities related to sustainability topics. Since the double materiality assessment was
still ongoing at the time of the strategy update, the material impacts and risks identified
could not be fully incorporated into the strategy work. In the future, the connection between
the outcome of the double materiality assessment and Kesko's strategy and business models
will be assessed in more detail as part of both the annual strategy process and normal
business and sustainability management.
Kesko updated its sustainability strategy at the end of October 2024. In the new
sustainability strategy, sustainability matters were taken into account and concrete targets
were set to contribute to or otherwise positively influence the material impacts and risks that
had been identified so far in the double materiality assessment.

|  | 28

E1 Climate change
Kesko's impacts on climate change arise from greenhouse gas emissions generated both in
its own operations and in the value chain. Kesko has identified the key sources of emissions
in its own operations. The largest source of Scope 1 emissions is the emissions from fuel
usage in transportation, logistics operations, and company cars. The largest source of Scope
2 emissions is emissions from district heating consumption. Most of the value chain’s Scope 3
emissions are generated during the life cycle of purchased and sold products, from their
production, use and end-of-life treatment. In addition, emissions are generated from the
manufacture of fixed assets and logistics transport.
No significant climate-related risks have been identified for the Group’s risk map, which has
a 12-month review period. In the medium term, climate-related risks have been identified,
particularly in relation to real estate. The risk in question is a physical climate-related risk.
Kesko owns and manages under lease agreements a significant number of properties in all its
operating countries. Extreme weather conditions that are becoming more common in the
future will increase the burden on real estate. Individual assets may be exposed to damage
risks or investment needs due to extreme weather conditions.
The main extreme weather conditions in Kesko’s operating countries are related to chronic
climate risks such as heat stress and changes in precipitation patterns and types. Acute risks
are related to heatwaves, storms, heavy rainfall and floods. Conditions are simulated, for
example, by using future weather data, and weather conditions are anticipated by
considering the risks in the planning guidelines of real estate projects.
Kesko has not conducted a resilience analysis on the climate resilience of the company’s
strategy and business model as required in the E1 Climate Change standard.
E5 Resource use and circular economy
Material impacts on the environment arise from the waste generated by Kesko’s operations,
particularly as part of warehousing and logistics operations and retail trade operations. The
largest waste fraction in Kesko’s operations is cardboard, which is generated from packaging
used during the transportation and storage of products. The waste generated by Kesko’s
operations is mainly non-hazardous waste. The amount of hazardous waste in Kesko’s
operations is low.
In terms of resource use, resource outflows are generated particularly from packaging. The
product’s logistical chain includes several packages, from logistics packaging to the sales
packaging of a single product.
As a food industry operator, preventing food waste also plays a key role in Kesko’s
operations. Food waste is generated as part of warehousing and logistics operations, as well
as in cash-and-carry outlets. However, the most significant aspect in the prevention of food
waste is the prevention of food waste in K-food retailers’ store operations, where most of the
food waste is generated.
The impacts related to resource use and the circular economy are such that it has not been
considered necessary to arrange consultations with the affected communities.
G1 Business conduct
Ensuring ethical and transparent business conduct and compliance with laws and regulations
has been identified as a material sustainability topic. Ethical business conduct influence
corporate culture and employee behaviour within the work community and in cooperation
with stakeholders. The principles for preventing corruption and bribery, as well as the
SpeakUp channel and whistleblower protection, are a key part of implementing an ethical
corporate culture throughout the value chain.
Kesko has a large number of suppliers and service providers. Kesko’s partners, especially
suppliers and service providers, have their own K Code of Conduct for business partners,
which contributes to the implementation of ethical operating culture in the procurement of
goods and services. In Kesko’s business model, the implementation of ethical business
practices in the supply chain promotes the responsibility of the entire value chain.
The increasing legislation related to sustainability and the potential changes in the business
model that it may require, as well as potential future investment needs to comply with the
legislation, were identified as risks that, if realised, may direct the use of Kesko’s resources.

|  | 29

Non-material ESRS standards
E2 Pollution
Potential impacts were identified in Kesko’s own operations related to pollution of soil in
properties owned and leased by Kesko. However, the nature of Kesko’s operations does not
pose a significant risk of pollution of soil and the potential impacts are limited to a small
geographical area. Based on historical data, there may have been a few isolated cases each
year where soil has been decontaminated at Kesko sites.
In addition to pollution of soil, impacts were identified in relation to microplastics. In Kesko’s
operations, microplastics are generated in particular by vehicle tyres and products sold. Own
brand cosmetics and detergents no longer contain microplastics. Kesko’s product range
includes products classified as substances of concern. However, they make up a small share
of the product range.
In the product value chain, impacts were identified in particular in primary food production
and the manufacturing industry. Impacts related to pollution in Kesko’s own operations and
in the product value chain did not emerge as material impacts in the double materiality
assessment.
Impacts related to pollution are not material in Kesko’s operations at the time of the
assessment and therefore no consultations with affected communities have been arranged
regarding these impacts.
E3 Water and marine resources
In Kesko’s own operations, water consumption is not significant. The municipal water supply
is mainly used for water consumption in operations and the municipal sewer system for
wastewater treatment. Kesko’s operations do not involve water withdrawal from ground or
surface water.
Impacts related to water were identified in the upstream value chain of products in the
primary production of products, particularly through products originating in areas suffering
from water scarcity. Issues related to water use are continuously considered when making
selection and sourcing decisions on products and product categories with identified impacts
and risks related to water. In terms of Kesko’s extensive product range, impacts in the
product value chain or impacts on product availability did not, however, emerge as a material
sustainability topic as part of the double materiality assessment.
Kesko product selection includes fish and shellfish. The fish and shellfish selection is
managed to ensure it does not include endangered species. The range of seafood products
makes up a small share of Kesko’s operations.
Impacts related to water and marine resources are not material in Kesko’s operations at the
time of the assessment and therefore no consultations with affected communities have been
arranged regarding these impacts.
E4 Biodiversity and ecosystems
The double materiality assessment identified impacts on biodiversity and ecosystems in
Kesko’s own operations related to land-use changes in Kesko’s real estate operations.
During 2024, Kesko analysed the scope and significance of land-use change related to its
construction management and property portfolio based on the LEAP (Locate, Evaluate,
Assess and Prepare) approach. As part of the LEAP analysis work, the land-use categories of
Kesko’s owned and leased properties were determined with geospatial analysis using land-
use data. The significance of the change was assessed by calculating the proportion of areas
covered by vegetation in the immediate vicinity of the coordinate points of the properties
and by using the results of the WWF Risk Filter tool to estimate the risks associated with
land-use change.
In Finland, 80% of the sites surveyed were located in areas where they are not expected to
have negative impacts on protected areas. Of the sites, 19% were located in the vicinity of
protected area under Finland’s Nature Conservation Act and 1% in the immediate vicinity.
The distances of the sites from habitats of special importance under the Forest Act were also
examined. Based on this, 97% of the sites were located in areas where they are not expected
to have impacts on important habitats. Of the sites, 3% were located in the vicinity of
important habitats. No Kesko sites were located in the immediate vicinity of important
habitats.
For sites in the other operating countries, the distance to the areas in the World Database on
Protected Areas (WDPA), and to the areas in the database of European protected sites

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maintained by the EU’s Environmental Environment Agency (EEA), was determined. Of all
the operating countries’ sites 11% were located in the vicinity of a protected area. Of the
sites, 89% were located at a distance from the protected area where they are not expected to
have negative impacts on the protected area.
Of the Finnish sites examined, 17 are under construction, which means that the impacts on
the surrounding nature and sensitive areas may be greater. One of the sites under
construction is located in a protected area. Four of the sites are located in the vicinity of
protected areas and 12 sites are located at a distance from the protected area where they are
not expected to have negative impacts on the protected areas.
Construction is highly regulated and store sites and other properties are only constructed on
sites planned by municipalities for business properties. A large proportion of the construction
projects are taking place in a built environment. We estimate that land-use changes related
to ownership and construction, as well as their extent and significance, are not material
impacts in Kesko’s operations.
In Kesko’s supply chains, land-use change is taking place especially in primary production,
such as agriculture, forestry, mining and fishing. Kesko has analysed the risks and
geographical scope of its supply chains’ land-use change as part of the LEAP study. Risks
were mapped by product category by identifying the key product categories with biodiversity
impacts, as well as their nature-related risks and dependencies using the ENCORE tool. The
supply chains of the identified key product categories were studied at country level, for the
largest supply countries in each of the supply chains examined. The method enabled us to
identify the key countries in Kesko’s global supply chains, and in those countries the key
biomes for which the land-use change risk was assessed using the WWF Risk Filter tool.
The study of the value chain was not completed during 2024 and will be completed in early
2025. In the assessments carried out for the double materiality assessment, we did not,
however, identify any material impacts in the value chain of products or product categories
that would be considered material impacts at the time of the analysis.
S3 Affected communities
Affected communities was identified as a non-material topic for Kesko in the first phase of
the double materiality assessment.
The nature of Kesko’s business, with numerous sites in the operating area and operations
concentrated in Northern Europe, does not lead to such impacts on communities that would
be considered material impacts on the communities in question from the perspective of the
standard's sub-topics.
The affected communities standard and sub-topics were found to be non-material and the
assessment was not continued in the next phase of the double materiality assessment.
Strategy, business model and value chain
In May 2024, Kesko updated its strategy for the strategy period 2024-2026. Our vision is to
be the leading and most attractive trading sector company in Northern Europe. Our targets
are delivering profitable growth, increasing customer value and strengthening market
position in all three divisions: grocery trade, building and technical trade and car trade. The
strategic work is based on quality and efficiency, continuous improvement of the
omnichannel customer experience, K-retailers and sustainability in all operations.
Kesko has operations in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and
Poland. Kesko‘s business models are the chain business model, own retail trade and B2B
trade. In the chain business model, Kesko acts as a wholesaler for the retailers and
independent retailer entrepreneurs are responsible for resale to end customers. In own retail
trade, consumer and corporate customers are Kesko’s customers. Kesko’s wholesale to
retailers accounted for 45% (46%) of the Group’s net sales in 2024. B2B trade accounted for
37% (39%) of the Group’s net sales in 2024. Kesko’s BtoC trade accounted for 18% (15%) of
the Group’s net sales.
Kesko has three divisions, which are reportable segments in the consolidated financial
statements: grocery trade, building and technical trade, including the building and home
improvement operations and the technical trade operations, and car trade, including the car
trade operations and the sports trade operations. For more information on the operating
activities of the different divisions, their financial information and the geographical

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breakdown of net sales, see note 2.2 Segment information in the consolidated financial
statements. Head count in Kesko’s operating countries can be found in the section S1 Own
workforce of the sustainability statement.
In the retail sector value chain, Kesko’s role is to make products manufactured by suppliers
available to customers in physical stores or through digital channels. Key areas include
efficient sourcing, selection management and logistics processes.
Material sustainability impacts relate to the products sold by Kesko in all business areas.
Most of the impacts occur in the upstream value chain from the manufacture of products or
in the downstream value chain from the use of products. The range of products sold changes
as manufacturers develop new products and remove obsolete products from their ranges.
Sustainability considerations are a factor in product development and the launch of new
products. As a retail sector operator, Kesko’s role is to actively make new products available
to customers and produce comprehensive product information, including information on the
sustainability of the products.
Changes in the product selections, availability, and pricing due to sustainability matters
affect market participants in general. Sustainability requirements are constantly guiding the
development of new and substitute products. At the Group level, Kesko's sensitivity in the
value chain to market-wide sustainability-driven changes in the selections, availability, or
pricing of individual products is considered to be low. This is due to the diversity of Kesko's
business operations and the products sold.
In contrast, the ethics, compliance, and sustainability factors of Kesko's own operations, such
as achieving climate and environmental targets and minimising negative impacts on its own
personnel, value chain workers, consumers, and end-users, are crucial for Kesko's business.
These factors directly influence Kesko's attractiveness as a partner from the perspective of
suppliers and customers. Additionally, achieving sustainability-related targets can directly
affect the cost of the Group’s debt financing, highlighting the financial significance of
sustainability in Kesko's operations. The negative sustainability impacts of an individual
goods or service provider's operations reflect on Kesko’s business and can affect the
achievement of Kesko's sustainability targets.
Kesko’s strategy implementation and business model, with its three divisions, is not critically
dependent on individual customers, supply chains or product categories. Overall, Kesko’s
business model is expected to adapt in relation to the individual sustainability topics
identified. For the aforementioned reasons, Kesko has not conducted an analysis in 2024 on
the resilience of its strategy and business model in addressing material sustainability topics.
At the end of the reporting period, Kesko has not identified any material sustainability risks
related to its financial position, performance, and cash flow.

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Interests and views of stakeholders
Dialogue with stakeholders is vital for the development of operations. Effective and active
dialogue enables us to understand stakeholders‘ perspectives, concerns and ideas for
improving our operations. Our communication with stakeholders is active and transparent.
The table below contains descriptions of Kesko’s main stakeholders, forms of cooperation,
the most important sustainability topics for stakeholders and their impact on our operations.
During 2025, the aim is to further develop our stakeholder engagement activities.

Stakeholder | Forms of cooperation | Key sustainability topics | Impacts on Kesko‘s operations
Consumers and end- users | • Daily customer encounters • Customer service channels and applications • Customer surveys • K-Kylä customer community • Social media | • Healthiness of products • Product safety • Origin of products and sustainable supply chains • Circular economy solutions and waste reductions • Promoting sustainability at local level | • Increasing transparency on origin and production • Returning purchase data to the customer • Innovative foods using food waste • K-retailers’ sustainability actions
B2B customers | • Customer meetings • Supplier trainings and trade fairs | • Origin of products and sustainable supply chains • Products’ carbon footprint data | • Increasing transparency on origin and production • Carbon footprint data and calculators
Own workforce | • Personnel surveys and performance and development reviews • Personnel events • Cooperation with personnel representatives • SpeakUp reporting channel | • Employee wellbeing • Occupational health and safety • Diversity, equity and inclusion • Good leadership and opportunities for personal development | • Wellbeing solutions for employees • Occupational health services and measures to reduce work-related accidents • DEI action plan, target setting and developing diversity-supporting recruitment • Measures and coaching to support development and leadership
K-retailers and store staff | • Retailer events and meetings • Electronic communication channels and trade magazines • SpeakUp reporting channel | • Employee wellbeing • Occupational health and safety • Diversity, equity and inclusion • Good leadership and opportunities for personal development | • Wellbeing solutions for employees • Occupational health services and measures to reduce work-related accidents • Recruitment to support diversity • Measures and coaching to support development and leadership
Investors, shareholders, analysts and other representatives of capital markets | • General Meeting • Financial reporting and press conferences • Investor websites and social media channels • Investor and analyst meetings • Surveys and assessments | • Greenhouse gas emissions and transition plan for reducing emissions • Biodiversity and water • Sustainable supply chains • Employee-related social responsibility • Governance and remuneration | • Transition plan and emission reduction measures • Assessments on biodiversity loss and water use and measures in the value chain • Verification of sustainable procurement through due diligence processes • Measures to improve wellbeing, safety at work and diversity • Verification of good governance and linking sustainability to remuneration
Suppliers, service providers and supply chain workers | • Meetings with suppliers and business partners • Business partner events • Organisations and purchasing alliances | • Human rights in the supply chain • Measures for reducing emissions • Sustainable products and services | • Human rights commitments, assessments and audits • Challenging partners to set climate targets (CDP) • Cooperation to introduce sustainable products into the selection
NGOs and corporate advocacy activities in organisations | • Dialogue with NGOs • Corporate advocacy - activities in organisations | • Origin of products and supply chain working conditions • Value chain’s environmental impacts • Development of regulation on sustainability | • Increasing transparency on origin and production • Cooperation with NGOs on key sustainability issues • Anticipation of and preparation for regulatory changes

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Sustainability governance
The sustainability statement provides information on the sustainability governance model.
Sustainability management and steering model
Board of Directors and Board Committees
Kesko’s Board of Directors is responsible for the Company’s corporate governance and the
proper organisation of its operations, which also includes responsibility for sustainability
topics. The Board has confirmed a written charter of the Board’s duties and principles of its
operations. According to its charter, the Board reviews and makes decisions on matters that
are financially, operationally or fundamentally significant to the Group. The Board
Committees support the Board’s work and prepare matters for which the Board is
responsible. The charters of the Board and its Audit Committee include tasks related to
monitoring and evaluating sustainability reporting and its assurance.
The Board of Directors decides on the Group’s strategy, including sustainability topics and
strategic targets related to sustainability. The progress made in the strategy and targets is
reported regularly to the Board, for example as part of the review by the President and CEO.
The Board approves all Group-level policies. The Board of Directors has approved and
adopted the Group’s ethical business practices, the K Code of Conduct. In addition to these,
other policies approved by the Board of Directors that address various sustainability topics
include the sustainability policy, the HR policy, the risk management policy, the governance
policy, the data protection policy and the tax policy.
During 2024, the Board has addressed the following sustainability-related topics:
• Approved the update of the sustainability strategy and targets
• Approved the updated climate targets (Scope 1 and 2) and the associated transition plan
• Decided to issue a green bond
• Decided on a sustainability-linked loan agreement between Kesko and the Nordic
Investment Bank (NIB)
• Approved the updated K Code of Conduct
The chair of the Board of Director’s Audit Committee reports on the Committee’s work at the
Board meeting following a Committee meeting. At each regular meeting of the Audit
Committee, the Group’s risk map and any changes to it are discussed. Twice a year, the
Audit Committee reviews the Compliance & Ethics report, which includes information on the
status of K Compliance programmes and reports received through the SpeakUp reporting
channel. One of the focus areas of the Compliance function is the prevention of corruption
and bribery, which has its own K Compliance programme. In 2024, the Audit Committee
regularly reviewed the measures related to the implementation of sustainability reporting,
the progress made in relation to them and the risks related to the implementation in five of
the six Audit Committee meetings. The Audit Committee reviewed the preliminary results of
Kesko's double materiality assessment in a meeting solely dedicated to the topic.
The Board of Directors has the power to take the necessary measures to perform its duties.
Thus, the Board may use external legal, financial or other advisors at its discretion in matters
also related to sustainability topics.

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Diversity of the Board of Directors and independence of Board members
According to the Articles of Association, Kesko’s Board of Directors is composed of a
minimum of five (5) and a maximum of eight (8) members. The General Meeting decides on
the number of Board members, elects all the Board members, and decides on their
remuneration.
The principles regarding Board diversity are included in the diversity policy approved by
Kesko’s Board of Directors. The policy describes the objectives in the achievement of
diversity in the operations and composition of the Board of Directors.
The experience, educational backgrounds and professional competencies of the Board
members represent multiple disciplines and diversity. Several Board members have
experience in the trading sector and the principal occupation of two of the seven Board
members is acting as a K Group grocery retailer, while one is a K Group building and home
improvement retailer. Several Board members also have experience in international business
operations. Approximately 71% of the Board members are men and approximately 29% are
women. The age of the Board members varies from 48 to 72.
The Board carried out its annual independence evaluation at its meeting in March 2024.
Based on the independence evaluations, the Board considers the majority of the Board
members (approximately 57%) to be independent of the Company. The Board members
(86%), apart from one member, were deemed independent of the Company‘s significant
shareholders. The Board and Committee compositions meet the independence requirements
of the Finnish Corporate Governance Code issued by the Finnish Securities Market
Associations and effective as of 1 January 2020. All members of Kesko’s Board or Directors
are non-executive directors. There are no personnel representatives on the Board.
The Group’s President and CEO and the Group Management Board
The Board of Directors appoints the Company’s Managing Director, who at Kesko is referred
to as the President and CEO. The work of Kesko’s President and CEO is supported by
Kesko’s Group Management Board.
Kesko’s President and CEO has overall responsibility for the implementation of the
sustainability strategy and for achieving the common objectives. The Group Management
Board supports the President and CEO in this role and regularly discusses in its meetings the
most material sustainability impacts, risks, opportunities and progress towards the targets.
At the end of 2024, 62.5% of the members of the Group Management Board were men and
37.5% were women.
In 2024, the sustainability matters addressed by the Group Management Board included the
following:
• The updated of sustainability strategy 2024-2026
• The updated climate targets (Scope 1 and 2) and the associated transition plan
• The update and approval of energy strategy
• Corporate Sustainability Reporting Directive (CSRD), including the results of the double
materiality assessment and the roll-out of other legislative projects related to
sustainability
• K Code of Conduct
• Compliance & Ethics report
• Diversity, equity and inclusion (DEI)
• Results of the personnel survey
• Occupational health strategy
• Occupational safety plan.
The President and CEO has the legal power to take the necessary measures to perform their
duties. The Board has authorised the President and CEO to seek external advice at the
President and CEO’s discretion, also in matters related to sustainability.

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Group sustainability management team and divisions
The task of the Group sustainability management team is to promote any matters included in
the sustainability strategy, monitor the progress of the strategy, coordinate Group-level
initiatives and to share best practices at Kesko. The management team is chaired by the
Executive Vice President of Legal and Sustainability who is a member of the Group
Management Board and reports directly to the President and CEO. He is responsible for the
content of the sustainability strategy and for monitoring its progress, and he supports the
implementation of division-specific sustainability strategies. The other members of the
Group sustainability management team represent the divisions and Kesko’s common
functions.
Division Presidents are responsible for achieving Group-level and division-specific
sustainability targets in their own divisions, for monitoring the progress of measures,
allocating resources and making the necessary investments. The Group’s common functions
support progress in sustainability work.
Sustainability-related targets in incentive schemes
Kesko has two share-based commitment and incentive plans: Performance Share Plan (PSP)
and Key Personnel Share Plan (KPSP). The share-based commitment and incentive schemes
are described in Note 5.3 Share-based compensation of the consolidated financial
statements.
One of the performance criteria in the PSP is Kesko’s sustainability target with a weight of
10%. The most significant sustainability targets are emission reductions targets and targets
linked to international sustainability indices and assessments. The terms of the PSP share
program are approved by the board of directors. In the KPSP, sustainability metrics are
linked to the individual’s job description and responsibilities, and they are approved by the
individual’s manager.
In 2024, in addition to the share-based plans, one of the performance bonus criteria for the
members of the management teams of Kesko’s divisions and common functions and the
persons reporting to them has been the sustainability target in accordance with the
sustainability strategy. Sustainability targets have also been set for a large number of key
personnel covered by the performance bonus scheme, according to their role. The
performance bonus criteria are approved by the individual’s manager.
Statement of due diligence
The Group’s statement on sustainability due diligence processes is described in the sections
of the sustainability statement mentioned below:
• S2 Workers in the value chain – Policies related to value chain workers
• S4 Consumers and end-users – Policies related to product safety
• S4 Consumers and end-users – Policies related to data protection
• G1 Business conduct – Policies related to corporate culture and business conduct

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ENVIRONMENT
EU TAXONOMY
Kesko’s reporting on EU Taxonomy complies with Regulation (EU) 2020/852 of the European
Parliament and of the Council (18 June 2020). The EU Taxonomy is a classification system for
sustainable financing, designed to help companies and investors assess whether an economic
activity can be considered environmentally sustainable. The Taxonomy defines a set of
criteria for a business activity that enables companies to assess to what extent the company’s
activities support the attainment of environmental and climate objectives.
Companies shall disclose information on how and to what extent their activities can be
deemed environmentally sustainable in the manner referred to in the EU Taxonomy based on
six climate and environmental objectives:
• Climate change mitigation
• Climate change adaptation
• The sustainable use and protection of water and marine resources
• The transition to a circular economy
• Pollution prevention and control
• The protection and restoration of biodiversity and ecosystems
Key performance indicators are presented for Taxonomy-eligible activities and Taxonomy-
aligned activities. These indicators are the proportion of the company’s net sales (turnover),
capital expenditure (CapEx), and operating expenditure (OpEx) as defined in the Taxonomy.
Currently, the Taxonomy does not specifically mention activities that are typical of the
trading sector, meaning that trading sector companies report on Taxonomy-eligible activities
if they engage in them. It is likely that the Taxonomy will include an expanding number of
activities, and that assessment criteria will be established consequently also for the trading
sector and possibly for its different product segments.
Taxonomy-eligible activities and assessing Taxonomy
alignment
Kesko has identified the car leasing operations and sales of used cars in its car trade division
and the owning, leasing and construction of properties for own business needs as Taxonomy-
eligible activities in its operations. In addition, logistics operations in Denmark are identified
as a Taxonomy-eligible activity.
With each Taxonomy-eligible activity, Kesko has assessed its Taxonomy alignment.
Taxonomy alignment has been determined by assessing whether an activity significantly
contributes to at least one of the climate and environmental objectives. The assessment of
Taxonomy alignment is made based on the technical screening criteria applied for each
activity. In addition to meeting said criteria, Kesko has confirmed that the activity does not
cause significant harm to the other climate and environmental objectives referred to in the
Taxonomy Regulation, using the separate DNSH (‘Does Not Significantly Harm’) criteria, and
that minimum safeguards under the Taxonomy Regulation are met.
Kesko has examined the implementation of minimum safeguards in relation to human rights,
corruption and bribery, fair competition, and taxation. The aforementioned areas of minimum
safeguards and related Kesko operating instructions and measures are described in more
detail in this report in the sections S2 Workers in the value chain, G1 Business Conduct. As a
result of the review, Kesko concludes that the minimum safeguards are being met in all of the
four areas in Kesko’s operations.
The following table presents the activities identified by Kesko as Taxonomy-eligible, and
Kesko’s assessments of their Taxonomy alignment.

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|  |  |  | Performance indicators
Taxonomy activity | Activity description | Assessment of Taxonomy alignment | Turnover | CapEx | Opex
CCM 6.5 | Transport by motorbikes, passenger cars and light commercial vehicles | Purchase, financing, renting, leasing and operation of vehicles designated as category M1, N1 or L. The activity includes leasing operations in the car trade division. | The significant contribution criterion is met if the vehicle’s emissions are below 50 g CO 2/km. This criterion is met by fully electric vehicles and hybrids. As part of the 'do no significant harm' criteria, tyres’ external rolling noise requirements must belong to the best available class. Information on tyre rolling noise is not available, making it not possible to determine the Taxonomy alignment of the vehicles. Vehicles in the leasing business are classified as eligible but not Taxonomy-aligned. | √ | √ | √
CCM 6.6 | Freight transport services by road | Purchase, financing, renting, leasing and operation of vehicles designated as category N1, N2 or N3 for freight transport serivces by road. Activity includes vehicles used in logistics operations of in Davidsen Koncernen A/S in Denmark. | To meet the Taxonomy criteria, the vehicles must be low-emission or zero-emission vehicles. The vehicles are also not dedicated for the transportation of fossil fuels. Additionally, the vehicles must comply with the 'do no significant harm' criteria set for the activity. The logistics vehicles are classified as eligible but not Taxonomy- aligned. |  | √ | √
CCM 7.1 | Construction of new buildings | The construction of buildings for residential and non-residential use. The activity includes building projects developed by Kesko for its own use. These are mainly new store and logistics properties. | For new buildings, an energy efficiency rating (E-value) is defined during the planning phase, which must beat least ten percent lower than the nationally set threshold. An assessment of the building’s Taxonomy alignment is made during the planning phase. The realisation of the E-rating is verified upon the building’s completion. Energy efficiency must be certified with an Energy Performance Certificate. Additionally, the activity sets criteria for buildings over 5,000 m² regarding air-tightness and thermal integrity of the building. The operation also includes detailed 'do no significant harm' criteria. The criteria for Taxonomy alignment are considered already during the planning phase of the building, when the decision to construct the building in accordance with the criteria is made. |  | √ |
CCM 7.2 | Renovation of existing buildings | Extensive repairs to existing buildings. Extensive repairs in properties owned by Kesko and in leased properties where Kesko is responsible for basic repairs. | Building renovations comply with the requirements applied to major renovations. Alternatively, the renovations lead to a reduction of primary energy demand of at least 30 %. The operation also includes detailed 'do no significant harm' criteria. Large renovations have not been deemed Taxonomy-aligned, as the ‘do no significant harm’ criteria for Taxonomy alignment related to activity 7.2 have not been met. |  | √ |
CCM 7.3 | Installation, maintenance and repair of energy efficiency equipment | Individual renovation measures related to energy efficiency equipment, such as adding insulation to parts of existing buildings, energy efficient replacements for external doors and windows, installing energy efficient light sources, and the installation, maintenance, repair and replacement of ventilation equipment with efficient technologies. The activity mainly includes the above-mentioned renovation measures in Kesko store sites where Kesko is the lessee. | Capital expenditure in energy efficiency mainly includes capital expenditure in LED lighting in properties where Kesko is a lessee. In order to meet the substantial contribution criteria for activity 7.3, a light source must be in the top two energy categories. The LED lighting used in Kesko’s projects does not meet the Taxonomy alignment criteria. |  | √ |

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|  |  |  | Performance indicators
Taxonomy activity | Activity description | Assessment of Taxonomy alignment | Turnover | CapEx | Opex
CCM 7.4 | Installation, maintenance and repair of charging stations for electric vehicles in buildings | The installation, maintenance and repair of charging stations for electric vehicles in buildings and parking spaces attached to buildings. The activity covers Kesko’s K-Lataus stations in Finland and charging stations installed at store sites in Kesko’s other operating countries. | All investments related to the activity have been classified as Taxonomy-aligned. The 'do no significant harm' criterion related to climate change adaptation is not considered to significantly affect the assessment of Taxonomy alignment for investments related to charging stations. |  | √ |
CCM 7.5 | Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings | The installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings. The activity covers the aforementioned capital expenditures in properties where Kesko is a lessee. | When the activity consists of individual measures listed in the Taxonomy regulation, all investments related to the activity have been classified as Taxonomy-aligned investments. The criterion of 'do no significant harm' related to climate change adaptation is not considered to significantly affect the assessment of Taxonomy alignment of these investments. |  | √ |
CCM 7.6 | Installation, maintenance and repair of renewable energy technologies | Individual measures related to renewable energy sources, where the technology is installed on-site as part of the building's technical systems. The activity covers the aforementioned capital expenditures in properties where Kesko is a lessee. | When the activity consists of individual measures listed in the Taxonomy Regulation, all investments related to the activity have been classified as Taxonomy-aligned investments. The criterion of 'do no significant harm' related to climate change adaptation is not considered to significantly affect the assessment of Taxonomy alignment of these investments. |  | √ |
CCM 7.7 | Acquisition and ownership of buildings | Buying real estate and exercising ownership of that real estate. The activity includes properties acquired during the reporting period, and the amounts of right-of-use assets recognised in the balance sheet based on lease agreements for properties. Moreover, capital expenditure in properties owned by Kesko in line with the above-mentioned activities 7.3 and 7.5 and activity 7.6 ‘Installation, maintenance and repair of renewable energy technologies’ have been included in activity 7.7 ‘Acquisition and ownership of buildings’. | For buildings built after 2020, the assessment of Taxonomy alignment has been made based on the climate change mitigation substantial contribution criteria of activity 7.1. ‘Construction of new buildings’. A building built during or before 2020 must have at least a category A energy certificate, or the building must be in the top 15% in the region in terms of primary energy demand. The assessment method is mainly applied to leased properties. A climate risk assessment is also conducted for the buildings. |  | √ | √
CE 5.4 | Sale of second-hand goods | The sale of second-hand goods that have been used for their intended purpose before by a customer. In Kesko, the sale of second-hand goods includes the used car business in the car trade division. | The sale of second-hand goods is one of the Taxonomy activities for circular economy. Comprehensive data on used cars is not available, making it difficult to reliably assess their Taxonomy alignment. Used cars are classified as eligible but not Taxonomy-aligned. | √ |  |

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Kesko’s Taxonomy-eligible turnover comprises the car leasing business and sales of used
cars to customers in the car trade division.
Kesko owns and leases properties in all operating countries for business purposes. The
Group uses some 1,600 owned or leased retail, logistics and office properties. The Group’s
Taxonomy-eligible capital expenditure includes investments in new store sites and logistics
properties, investments in building improvement measures, and investments in lighting,
machinery and equipment to improve the energy efficiency of buildings, and automation for
measuring and monitoring energy efficiency. In addition, Taxonomy-eligible CapEx includes
charging equipment for electric vehicles and investments in vehicles for the leasing
operations of the car trade division. Land areas are not classified as Taxonomy-eligible
CapEx.
In addition, Taxonomy-eligible CapEx includes charging equipment for electric vehicles,
investments in vehicles for the leasing operations of the car trade division, and investments
in logistics vehicles for the building and home improvement trade business in Denmark.
Operating expenditure under the Taxonomy Regulation in Kesko Group is in particular
related to expenses for the use, maintenance and repair of properties. Taxonomy-eligible
expenses include expenses for servicing of the leasing car fleet and the logistics vehicles fleet
in Denmark.
Kesko does not have Taxonomy activities related to gas or nuclear power.
Activities related to nuclear power and fossil gas

| Nuclear energy related activities |
1. | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | NO
2. | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | NO
3. | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | NO

| Fossil gas related activities |
4. | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | NO
5. | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | NO
6. | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | NO

EU Taxonomy performance indicators
Kesko presents the performance indicators for turnover, capital expenditure (CapEx) and
operating expenditure (OpEx) in accordance with the tables determined for non-financial
undertakings in the Taxonomy Regulation. The tables for the performance indicators show
the proportion of turnover, capital expenditure and operating expenditure derived from
economic activities in line with the Taxonomy.
Comparative information for the year 2023 is included in the tables of performance
indicators for turnover, capital expenditures, and operating expenses in accordance with the
Taxonomy Regulation. This comparative information has not been subject to assurance
procedures by the sustainability reporting auditor.
Accounting policies
Turnover
When calculating the performance indicator for turnover, Kesko applies the same IFRS
accounting principles as it does in the consolidated financial statements. The accounting
principles for revenue recognition are presented in Note 2.1 of the consolidated financial
statements. The net sales figure used in calculating the turnover performance indicator is
the Kesko Group net sales presented in the income statement. The Taxonomy-eligible
turnover is the share of total Group net sales that comes from Taxonomy-eligible activities.
In Kesko’s business operations, car leasing operations and used car sales in the car trade
division have been identified as Taxonomy-eligible activities that generate net sales.
Kesko’s primary operations which generate net sales are the sales of products and services

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to customers and retailers. Product sales are currently not a Taxonomy-eligible activity, with
the exception of used car sales.
Capital expenditure (CapEx)
Capital expenditure (CapEx) as defined in the Taxonomy Regulation includes additions to
tangible and intangible assets during the financial year, before depreciation, amortisation
and any re-measurements. Capital expenditure also includes additions to tangible and
intangible assets resulting from business combinations. In accordance with the Taxonomy
Regulation, Kesko includes in its CapEx calculation investments in tangible and intangible
assets and the aggregate sum of additions to the right-of-use assets recognised in the
balance sheet based on lease agreements. Goodwill recorded in acquisitions is not included
in the Taxonomy CapEx definition. Additions to property, plant and equipment are
presented in Note 3.2, additions to intangible assets in Note 3.3, and additions to right-of-
use assets related to leases in Note 3.4 of the consolidated financial statements.
The Taxonomy definition of CapEx differs from the definition of the ‘capital expenditure’
performance indicator reported by Kesko. In Kesko’s definition, the performance indicator
includes investments in tangible and intangible assets and subsidiary shares. The indicator
does not include additions to right-of-use assets related to leases recognised in the balance
sheet. Group capital expenditure in 2024 totalled €675.9 million (€678.9 million).
The following table details the capital expenditure items used to calculate the Taxonomy
CapEx indicator.
Capital expenditure (CapEx) under EU Taxonomy

€ million | 2024 | 2023
Property, plant and equipment - Additions (Note 3.2) | 494,9 | 511,2
Property, plant and equipment - Acquisitions (Note 3.2) | 94,4 | 3,7
Intangible assets - Additions (Note 3.3) | 16,2 | 21,9
Intangible assets - Acquisitions excluding goodwill (Note 3.3) | 39,7 | 16,4
Right-of-use assets - Additions (Note 3.4) | 457,5 | 437,3
Right-of-use assets - Acquisitions (Note 3.4) | 12,3 | 15,7
Total | 1 115,1 | 1 006,1

Operating expenses (OpEx)
Operating expenditure (OpEx) as defined in the Taxonomy Regulation includes direct non-
capitalised costs that relate to research and development, building renovation measures,
maintenance and repair, and any other direct expenditure relating to the servicing of assets
of property, plant and equipment by the undertaking or a third party to whom activities are
outsourced that are necessary to ensure the continued and effective functioning of such
assets.
In Kesko Group’s income statement, operating expenditure as defined in the Taxonomy
Regulation is included under ’Other operating expenses’, which are presented in Note 2.5 of
the consolidated financial statements.
Operating expenditure under the Taxonomy Regulation in Kesko Group is in particular
related to expenses for the use, maintenance and repair of properties – which in the
financial statements are included in ‘Property and store site maintenance expenses’ – the
total sum of which was €198.5 million (€185.1 million) in 2024. In addition to property
maintenance and repair costs, the figure includes expenses related to e.g. heating,
electricity and water consumption, and waste management, which are not included in the
Taxonomy definition of operating expenditure. In addition, Taxonomy-eligible expenses
include expenses for servicing of the leasing car fleet and the logistics vehicles fleet in
Denmark.
In Kesko’s business model, operating expenditure is not material in the transition to more
sustainable activities, but instead, building renovation measures, such as those related to
improving energy efficiency, are capital expenditure by nature.

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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities 2024

Financial year 2024 | 2024 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activites | Code | Turnover | Proportion of turnover, year 2024 | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned (A1) or eligible (A2) turnover, year 2023 | Category enabling activity) | Category transitional activity
|  | € million | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy- aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  | Y | 0.0% |  |
Of which Enabling |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  | Y | 0.0% | E |
Of which Transitional |  | 0.0 | 0.0% | 0.0% |  |  |  |  |  |  |  |  |  |  |  | Y | 0.0% |  | T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL |  |  |  |  |  |  |  |  |  |
Transportation by motorbikes, passenger cars and light commercial vehicles | CCM 6.5 CCA 6.5 | 26.5 | 0.2% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.2% |  |
Sale of second-hand goods | CE 5.4 | 321.3 | 2.7% | N/EL | N/EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 2.4% |  |
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 347.7 | 2.9% | 0.2% | 0.0% | 0.0% | 0.0% | 2.7% | 0.0% |  |  |  |  |  |  |  | 2.6% |  |
A. Turnover of Taxonomy eligible activities (A.1+A.2) |  | 347.7 | 2.9% | 0.2% | 0.0% | 0.0% | 0.0% | 2.7% | 0.0% |  |  |  |  |  |  |  | 2.6% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities |  | 11,572.3 | 97.1% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | 11,920.1 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Codes:
Climate change mitigation: CCM
Climate change adaptation: CCA
Circular economy: CE
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant
environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective

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Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities 2024

Financial year 2024 | 2024 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activites | Code | CapEx | Proportion of CapEx, year 2024 | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned (A1) or eligible (A2) CapEx, year 2023 | Category enabling activity) | Category transitional activity
|  | € million | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy- aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction of new buildings | CCM 7.1 CCA 7.1 CE 3.1 | 101.4 | 9.1% | Y | N | N/EL | N/EL | N | N/EL |  | Y | Y | Y | Y | Y | Y | 8.6% |  |
Installation, maintenance and repair of charging stations for electric vehicles in buildings | CCM 7.4 CCA 7.4 | 8.7 | 0.8% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 0.5% | E |
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings | CCM 7.5 CCA 7.5 | 0.2 | 0.0% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 0.1% | E |
Installation, maintenance and repair of renewable energy technologies | CCM 7.6 CCA 7.6 | 0.0 | 0.0% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y |  | E |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 63.3 | 5.7% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 1.9% |  |
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 173.6 | 15.6% | 15.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  | Y | Y | Y | Y | Y | Y | 11.0% |  |
Of which Enabling |  | 8.9 | 0.8% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.6% | E |
Of which Transitional |  | 0.0 | 0.0% | 0.0% |  |  |  |  |  |  |  |  |  |  |  |  | 0.0% |  | T

Codes:
Climate change mitigation: CCM
Climate change adaptation: CCA
Circular economy: CE
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant
environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective

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Financial year 2024 | 2024 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activites | Code | CapEx | Proportion of CapEx, year 2024 | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned (A1) or eligible (A2) CapEx, year 2023 | Category enabling activity) | Category transitional activity
|  | € million | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL |  |  |  |  |  |  |  |  |  |
Transportation by motorbikes, passenger cars and light commercial vehicles | CCM 6.5 CCA 6.5 | 52.7 | 4.7% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 4.5% |  |
Freight transport services by road | CCM 6.6 CCA 6.6 | 4.9 | 0.4% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  |  |  |
Construction of new buildings | CCM 7.1 CCA 7.1 CE 3.1 | 27.0 | 2.4% | EL | EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 4.6% |  |
Renovation of existing buildings | CCM 7.2 CCA 7.2 CE 3.2 | 102.9 | 9.2% | EL | EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 10.2% |  |
Installation, maintenance and repair of energy efficiency equipment | CCM 7.3 CCA 7.3 | 3.3 | 0.3% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.6% |  |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 481.7 | 43.2% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 48.2% |  |
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 672.4 | 60.3% | 60.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 68.2% |  |
A. CapEx of Taxonomy eligible activities (A.1+A.2) |  | 846.0 | 75.9% | 75.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 79.2% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities |  | 269.1 | 24.1% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | 1,115.1 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Codes:
Climate change mitigation: CCM
Climate change adaptation: CCA
Circular economy: CE
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant
environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective

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Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities 2024

Financial year 2024 | 2024 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activites | Code | OpEx | Proportion of OpEx, year 2024 | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Climate change mitigation | Climate change adaption | Water | Pollution | Circular economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned (A1) or eligible (A2) OpEx, year 2023 | Category enabling activity) | Category transitional activity
|  | € million | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy- aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  | Y | 0.0% |  |
Of which Enabling |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  | Y | 0.0% | E |
Of which Transitional |  | 0.0 | 0.0% | 0.0% |  |  |  |  |  |  |  |  |  |  |  | Y | 0.0% |  | T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL | EL; N/EL |  |  |  |  |  |  |  |  |  |
Transportation by motorbikes, passenger cars and light commercial vehicles | CCM 6.5 CCA 6.5 | 1.8 | 2.8% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 3.2% |  |
Freight transport services by road | CCM 6.6 CCA 6.6 | 0.9 | 1.4% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  |  |  |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 61.9 | 95.8% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 96.8% |  |
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 64.6 | 100.0% | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 100.0% |  |
A. OpEx of Taxonomy eligible activities (A.1+A.2) |  | 64.6 | 100.0% | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 100.0% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities |  | 0.0 | 0.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | 64.6 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Codes:
Climate change mitigation: CCM
Climate change adaptation: CCA
Circular economy: CE
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant
environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective

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Taxonomy eligibility and alignment per environmental objective

| Proportion of turnover / Total turnover
| Taxonomy-aligned per objective | Taxonomy-eligible per objective
CCM | 0.0% | 0.2%
CCA | 0.0% | 0.0%
WTR | 0.0% | 0.0%
CE | 0.0% | 2.7%
PPC | 0.0% | 0.0%
BIO | 0.0% | 0.0%

CCM: Climate change mitigation
CCA: Climate change adaptation
WTR: Water and marine resources
CE: Circular economy
PPC: Pollution prevention and control
BIO: Biodiversity and ecosystems

| Proportion of CapEx / Total CapEx
| Taxonomy-aligned per objective | Taxonomy-eligible per objective
CCM | 15.6% | 60.3%
CCA | 0.0% | 0.0%
WTR | 0.0% | 0.0%
CE | 0.0% | 0.0%
PPC | 0.0% | 0.0%
BIO | 0.0% | 0.0%

| Proportion of OpEx / Total OpEx
| Taxonomy-aligned per objective | Taxonomy-eligible per objective
CCM | 0.0% | 100.0%
CCA | 0.0% | 0.0%
WTR | 0.0% | 0.0%
CE | 0.0% | 0.0%
PPC | 0.0% | 0.0%
BIO | 0.0% | 0.0%

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E1 CLIMATE CHANGE
Material impacts, risks and opportunities
Impacts related to climate change

Nature of impact | Value chain | Description | Management
Climate change mitigation
Actual negative | Own operations | Kesko‘s own operations generate greenhouse gas (GHG) emissions (Scope 1 and Scope 2). The most significant source of Scope 1 emissions is from the fuel emissions of transportation and logistics. The most significant source of Scope 2 emissions is from district heating consumption emissions. | • Kesko has set Scope 1 and Scope 2 climate targets to reduce GH G emissions. We are pursuing validation of our emissions targets through the Science Based Targets initiative (SBTi). • The most significant investments in emissions reductions are related to the electrification of the logistics fleet and improving energy efficiency by installing energy recycling systems.
Actual negative | Value chain | Kesko‘s value chain generates GHG emissions (Scope 3). Most of the value chain emissions arise during the life cycle of purchased and sold products, from their production, use, and end-of-life treatment. Additionally, emissions are generated from the manufacturing and transportation of capital goods. | • Kesko is committed to setting net-zero targets and reduce emissions in the entire value chain to net zero by 2050. We are pursuing validation for these targets through SBTi. • Suppliers are encouraged to set their own science-based emissions targets.
Energy
Actual negative | Own operations | The consumption of fossil energy sources in properties owned and managed by Kesko and in transport and logistics generates GHG emissions. | • The transition to fossil-free energy sources and the electrification of logistics transport. • Consumption of renewable and non-fossil purchased electricity and heat.

Risks related to climate change

Time horizon | Nature of risk | Description | Management
Medium-term | Physical risk | Kesko owns and manages a significant number of properties through leases in all its operating countries. In the future, increasing extreme weather events will put additional strain on these properties. Individual assets may face risks of damage or investment needs due to extreme weather phenomena. | • Construction projects take into account common climate risks observed in Finland, such as heat stress, heavy rainfall, and snow loads on roofs. • A risk assessment is conducted for properties to identify climate risks. Preparing for future climate risks is integrated into property planning guidelines.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.

|  | 47

Climate targets

|  |  | Target
Target | Unit | 2024 | 2026 | 2030
Greenhouse gas emissions (Scope 1 + Scope 2 market-based) | tCO 2 eq | 84,576 |  | ~59,000
Greenhouse gas emissions (Scope 3 Purchased goods and services), emissions reductions targets of suppliers | % | 48% | 67% |
Energy efficiency measures | GWh | 20.9 |  | 95.0

During 2024, Kesko updated its climate targets and set emissions reductions targets for its
own operations extending to 2034. The target is to halve emissions from own operations
(Scope 1 and Scope 2) by the end of 2034 from the 2024 baseline. Using the 2034 target, a
target level has been calculated for 2030, which is about 30% reduction in emissions from
the 2024 baseline. The emission baseline and target have been calculated on a market-based
approach.
Most of the greenhouse gas emissions in Kesko’s value chain (Scope 3) arise during the life
cycle of purchased and sold products, from their production, use, and end-of-life treatment.
Our target is that 67% of suppliers and service providers, measured by spend, will set
science-based emission reduction targets by the end of 2026. In 2024, 48% of suppliers had
set science-based, short-term emission targets. The achievement is calculated based on
2023 spend.
Our energy strategy aims to improve energy efficiency by 10% between 2024 and 2030. To
achieve this goal, we need to implement energy efficiency measures totalling 95 GWh.
In setting the new emissions reductions targets for Kesko’s own operations (Scope 1 and
Scope 2), we identified the sources of emissions and assessed their development on the basis
of the available technical options, taking into account both financial and other constraints,
and calculated the annual development of emission impacts from different emission sources.
The most significant emission sources of Kesko’s own operations (Scope 1 and Scope 2) are
the use of district heating and fuels in transportation, logistic operations, and company cars.
In the emission scenario work, the impact of the Onninen logistics centre, which is under
construction, and the planned renovation projects for store sites and new store sites to be
opened were also taken into account regarding district heating emissions. The district heat
emission scenario also considers the emission reduction plans published by district heating
companies to the extent that the information has been available. We have assumed that
these plans will be realised and that the emission factor will decrease as planned. A reduction
plan is in place for around 80% of the total volume of Kesko’s district heat. If a district
heating company had not announced any emission reduction plans, the emission factor was
estimated to remain unchanged.
The majority of emission in transportation, logistic operations, and company cars are
generated in Finland by the grocery trade division’s transportations. The development of
logistics emissions has taken into account the estimated progress of electrification.
Potential future corporate and property acquisitions and their impact on energy consumption
and emissions have not been assessed. Stakeholders have not been involved in setting
climate targets.
In addition to the updated Scope 1 and Scope 2 emission targets for our own operations,
Kesko is committed to setting net-zero targets and reduce emissions in the entire value chain
(Scope 3) to net zero by 2050. We are pursuing validation of our emissions targets through
the Science Based Targets initiative (SBTi) during 2025. SBTi approval of the emission targets
means they are aligned with the goals of the Paris Agreement. Kesko has not been excluded
from the EU’s Paris Agreement benchmarks.
In September 2024, Kesko‘s Board of Directors approved new climate targets extending to
2034 and the related transition plan.
The achievement of climate targets is one of the indicators in the performance-based share
plan for senior management. For more information on sustainability targets as part of
remuneration schemes, see the section Sustainability governance, Sustainability-related
targets in incentive schemes of the sustainability statement.

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Policies related to climate change mitigation and
adaptation
Kesko’s sustainability policy steers Kesko’s climate work. In our sustainability policy, we are
committed to the goals of international climate summits for the mitigation of global warming
and to reduce emissions in our own operations and in the value chain. The sustainability
policy has been approved by Kesko’s Board of Directors. The implementation of the
principles of the policy is the responsibility of the Executive Vice President, Legal and
Sustainability of Kesko Group, who is a member of the Group Management Board.
Additionally, Kesko has an energy strategy that guides energy procurement and sets
principles for improving energy efficiency. The energy strategy was approved by Kesko’s
Group Management Board in February 2024, and its implementation is overseen by Kesko
Group’s Energy Director. Our energy strategy aims to improve energy efficiency by 10%
between 2024 and 2030. Furthermore, starting from the beginning of 2025, we will transition
to using renewable purchased electricity, ensuring that at least 80% of Kesko’s total
electricity consumption is renewable.
Transition plan and actions related to climate change
mitigation
Our target is to reduce our own operational emissions (Scope 1 and Scope 2) around 30%
from the 2024 baseline by the end of 2030.
Use of district heat
A significant portion of Kesko’s emissions (Scope 1 and Scope 2) from its own operations is
generated from the consumption of district heating.
Approximately 67% of the district heating emission reduction target is estimated to be
achieved through the greening of district heating production and the reduction of emissions.
The share of emission reductions from our own energy efficiency measures is estimated to be
around 33%.
A key energy efficiency measure is the installation of energy recycling system, which uses
waste heat from store refrigeration systems, as part of our project to upgrade store site
refrigeration systems. This will reduce the consumption of the district heat purchased for the
site. Kesko has been conducting similar projects for several years, so there is a good basis of
data about the impact on energy consumption. Projects conducted in previous years have
reduced district heat consumption by an average of around 50% compared to the level
before the upgrade.
We also conduct annual maintenance projects for the renovation or improvement of
properties and setpoint optimisations, based on energy audits conducted at the sites or
observations arising from energy data analysis.
Kesko has around 600 properties that use district heating where the maintenance of a
certain minimum emission level continues to be identified after all possible energy efficiency
measures have been implemented. So far, we have estimated that emissions could potentially
continue to decrease beyond 2030, but we have not been able to estimate an exact residual
level of emissions, as it depends on the actions of district heating producers.
Transition plan to reduce Scope 1 and Scope 2 emissions

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Transport and logistics
For Kesko’s emissions (Scope 1 and Scope 2) from its own operations, the most significant
source is the fuel consumption in transportation, logistics operations, and company cars.
Emissions from the consumption of fossil fuels are estimated to decrease with the increase in
electrification and the use of biofuels. We estimate that around 20% of logistics transport will
be electric by 2030, provided that suitable equipment is sufficiently available.
Fossil fuel consumption may still cause emissions beyond 2030, but it is not possible to
estimate the residual amount with the existing information.
Electricity consumption
Kesko primarily uses renewable or emission-free electricity in its operations. Emissions from
electricity consumption mainly arise from the electricity used in properties in the Baltics and
Poland. Over the coming years, we will gradually transition to using renewable electricity in
these locations as well.
Refrigerant emissions
Kesko’s refrigerant emissions include leaks from refrigeration equipment in Kespro’s cash-
and-carry outlets and grocery trade logistics sites, as well as leaks from property
refrigeration equipment. To reduce emissions, refrigeration systems will be upgraded to
systems using natural refrigerants by 2030.
Refrigerant emissions from K-stores’ refrigeration systems are included in Kesko’s value
chain (Scope 3) emissions.
Self-produced heat
Kesko has approximately 85 sites using oil or gas heating, most of which are leased for
Kesko’s use. Our goal is to upgrade the heating solutions in these sites to emission-free
alternatives or district heating by 2029.
Investments and financing related to the transition plan
The transition plan investments relate to investments in the electrification of logistics fleet, in
improving energy efficiency in properties and in replacing oil and gas heating with other
forms of heating.
Energy efficiency investments are made as part of the maintenance of properties, and the
investment relates both to the maintenance needs of the property and to the reduction of
emissions in the properties. The investment needs anticipated for the electrification of the
logistics fleet relate in particular to investments in the charging infrastructure for heavy
vehicles.
The transition plan has been prepared by estimating the amount of investment needed for
the target years. Investment decisions and their implementation are part of the annual
strategy work and annual planning. The investments needed to implement Kesko's transition
plan do not make up a significant share of the Group’s total investments. The annual
investment requirement is estimated to be around 2–4% of Kesko's estimated total
investments.
In 2024, Kesko issued a green notes of €300 million under the Green Finance Framework to
finance investments that meet the criteria of the Framework.
Taxonomy-aligned investments
Kesko does not have CapEx plans as defined by the Taxonomy Regulation, based on which
Kesko’s owned properties or logistics vehicles would become Taxonomy-aligned. For existing
properties, this means that improvements to properties would lead to a reduction in primary
energy demand of at least 30%. Regarding the logistics fleet, vehicles should have zero
emissions. Plans for Taxonomy-aligned investments have not yet during 2024 been directly
linked to the Group’s new emission reduction targets and to the investments required by the
transition plan.
Kesko’s principle is to build new properties based on the technical screening criteria as
Taxonomy-aligned. In 2024, Kesko had nine construction projects underway in Finland,
where the properties are being built in accordance with the technical screening criteria of the
Taxonomy. The largest of these projects is the logistics centre in Hyvinkää that is intended
for Onninen and K-Auto. Not all new construction projects in progress during 2024 meet the
Taxonomy criteria, as the planning and construction decisions have been made before the
publication of the technical screening criteria and its adoption by Kesko.

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Energy consumption
Energy consumption and energy mix

MWh | 2024
Energy consumption from non-renewable sources |
Fuel consumption from coal and coal products | -
Fuel consumption from crude oil and petroleum products | 184,372
Fuel consumption from natural gas | 6,211
Fuel consumption from other fossil sources | 2,326
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources | 120,811
Total fossil energy consumption | 313,720
Share of fossil sources in total energy consumption, % | 42%
Consumption from nuclear sources | 302,436
Share of consumption from nuclear sources in total energy consumption, % | 40%
Energy consumption from renewable sources |
Fuel consumption for renewable sources | 655
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources | 126,856
The consumption of self-generated non-fuel renewable energy | 9,027
Total renewable energy consumption | 136,538
Share of renewable sources in total energy consumption, % | 18%
Total energy consumption | 752,695

Energy intensity

MWh / Net sales, € million | 2024
Energy intensity from activities in high climate impact sectors based on net sales | 63

In 2024, we implemented energy efficiency measures totalling approximately 20.9 GWh. The
most significant measures included the installation of an energy recycling system using waste
heat in 20 sites, which is estimated to reduce district heat consumption by around 10 GWh.
Additionally, we converted the heating systems in two oil- or gas-heated properties to
district heating or heat pump solutions and permanently closed one oil-heated property. In
total, we carried out 288 energy efficiency improvement measures recorded in our
information system. As a result of these measures, emissions from heat consumption
decreased by approximately 1,580 tCO 2 eq.
The energy efficiency measures carried out during 2024 cannot be directly included Kesko’s
reporting aligned with the Taxonomy Regulation, as the measures are spread across several
classification system functions and cannot be directly included in the energy efficiency
measures described above.
Accounting policies
Energy consumption includes properties owned and managed by Kesko, covering all Kesko
divisions and operating countries to the extent that consumption data are available or can
be estimated. The evaluation is based on a coverage figure, which is calculated using data
on floor area. Kesko’s joint venture Kesko Senukai is not included in the energy
consumption figures.
The consumption figures are based on the consumption of purchased electricity and district
heating by energy source, as well as the calculated energy consumption of self-generated
heat and fuel for transport, logistics operations and company cars. Consumption data is
obtained from Kesko’s various information systems and invoices.
In Finland, Sweden, Norway and Denmark, electricity and heating consumption data are
obtained from the operational information system. Energy managers monitor consumption
and make corrections to metered figures if necessary, based on error reports. For district
heating and cooling, only measured consumption is reported. The reporting of district heat
consumption uses the district heat production breakdown into fossil and renewable sources
maintained by the Local Power organisation, by locality for the sites for which data is
available in the service.
The consumption of oil and gas includes buildings that have been heated wholly or partly by
oil or gas during the reporting period.
The calculated energy consumption of transportation and logistics operations is based on
fuel consumption. The calculated energy consumption of fuel for company cars is also
largely based on fuel consumption, except for benefit cars, where the calculated energy
consumption is based on kilometres driven and average consumption.

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Energy intensity is calculated by dividing total energy consumption by the amount of net
sales reported in the consolidated financial statements.
Kesko’s business operations can mainly be classified as a high climate impact sector.
Among the products and services offered by Kesko, only the car leasing business is not
classified as having a high climate impact. The net sales from the leasing business is not
significant in relation to the total net sales reported by the Group. The energy consumption
of the leasing business cannot be separated from other energy consumption.
The metrics presented in this section have not been validated by an external third party
other than the sustainability reporting auditor.
Greenhouse gas emissions
Scope 1, Scope 2 and Scope 3 GHG e missions

| Base year | Target
tCO 2 eq | 2024 | 2030 | Average annual emission reduction (%)
Scope 1 GHG Emissions |  |  |
Gross Scope 1 GHG emissions | 56,637 | ~43,000 | 3.9%
Percentage of Scope 1 GHG emissions from regulated emission trading scheme, % |  |  |
Scope 2 GHG Emissions |  |  |
Gross location-based Scope 2 GHG emissions | 42,950 | ~42,000 | 0.4%
Gross market-based Scope 2 GHG emissions | 27,939 | ~16,000 | 7.3%
Significant Scope 3 GHG emissions |  |  |
Total gross indirect Scope 3 GHG emissions | 7,122,142 |  |
1 Purchased goods and services | 6,108,778 |  |
2 Capital goods | 144,096 |  |
3 Fuel and energy-related Activities (not included in Scope 1 or Scope 2) | 8,372 |  |
4 Upstream transportation and distribution | 90,076 |  |
5 Waste generated in operations | 9,488 |  |
6 Business travelling | 1,774 |  |
7 Employee commuting | 9,140 |  |
8 Upstream leased assets (Kesko as a lessee) |  |  |
9 Downstream transportation | 87,713 |  |
10 Processing of sold products |  |  |
11 Use of sold products | 505,950 |  |
12 End-of-life treatment of sold products | 126,873 |  |
13 Downstream leased asset (Kesko as a lessor) |  |  |
14 K-retailers (Franchising) | 29,881 |  |
15 Investments |  |  |
Total GHG emissions |  |  |
Total GHG emissions, location-based | 7,221,729 |  |
Total GHG emissions, market-based | 7,206,718 |  |

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Scope 1 and Scope 2 GHG emissions by emissions sources

tCO 2 eq | 2024
Direct GHG emissions (Scope 1) |
Transportation, logistics and company cars | 48,954
Self-produced heat | 3,296
Refrigerant leakages | 4,386
Total (Scope 1) | 56,637
Indirect GHG emissions (Scope 2) |
Location-based | 42,950
Purchased electricity | 12,871
District heat | 30,078
District cooling | -
Market-based | 27,939
Purchased electricity | 4,538
District heat | 23,401

GHG intensity

tCO 2 eq / Net sales, € million | 2024
Total GHG emissions (location-based) per net sales | 606
Total GHG emissions (market-based) per net sales | 605

Accounting policies
Kesko reports direct and indirect greenhouse gas (GHG) emissions (Scope 1, Scope 2, and
Scope 3) in accordance with the GHG Protocol Corporate Accounting and Reporting
Standard and the Corporate Value Chain Accounting and Reporting Standard. The principle
of financial control is applied to emissions reporting, whereby emissions are reported for
the companies in which Kesko has control (subsidiary) or joint control (joint venture).
Associates are not included in the emissions calculation. The emissions of Kesko Senukai,
Kesko’s joint venture, have not been included in the emissions calculation or the emission
reduction targets. Under the GHG Protocol, the share of the joint venture’s emissions
would be calculated in accordance with the share of ownership.
Kesko has set 2024 as the new base year for emissions calculations. In line with the
Corporate Susta inability Reporting Directive’s transitional provisions to ease first-time
application, comparative data for previous years are not presented. Kesko completed an
emissions inventory and reviewed and revised its emissions calculation in 2024.
The emission factors used in the calculation are largely from local Finnish databases or
global databases. The databases used include Ecoinvent 3.10, DEFRA GHG conversion
factors (2023), IEA energy statistics (2023), GLEC Framework V3.1, Statistics Finland's Fuel
classification (2024) and the Emissions database for construction (2024). Individual factors
and emission data have been obtained directly from suppliers and service providers and
other business partners.
I some cases it has not been possible to calculate all the emission data for the sustainability
statement’s entire reporting period. In these cases, emissions have been estimated to cover
the whole reporting period based on the averages from the reported months.
The calculation includes the most material greenhouse gases for each emission source, as
they are included in the emission factors used. Emissions have been converted and
expressed as carbon dioxide equivalents (tCO 2 eq). The material GHG emissions are CO 2,
NO x and SO 2. Kesko does not report the biogenic emissions of CO 2 emissions because
Kesko does not have its own production that would generate biogenic emissions.
The greenhouse gas intensity is calculated by dividing the total greenhouse gas emissions
by the net sales reported in the consolidated financial statements.
The metrics presented in this section have not been validated by an external third party
other than the sustainability reporting auditor.
Scope 1 – Direct GHG emissions
Scope 1 emissions from own operations include emissions arising from the consumption of
fuels for self-generated heat, emissions from fuels consumed by transportation, logistics
and company cars, and emissions from refrigerant leakages.
Emissions from self-generated heat have been calculated mainly based on fuel
consumption.

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Transportation emissions in Finland are calculated on the basis of tonne-kilometres based
on the mode of transport and accurate route information. The calculation is based on the
ISO 14083:2023 standard and the GLEC Framework V3.1. For logistics operations in Finland
and transportation in other operating countries, emissions are calculated based on fuel
consumption.
Emissions from company cars are calculated mainly on the basis of actual fuel consumption.
For benefit cars, the calculation is based on kilometres driven and the cars’ average
emissions per kilometre driven. Emissions from company cars include company cars in
Finland, Denmark and Latvia.
Emissions from refrigerant leakages include refrigeration equipment and leakages from
refrigeration systems in properties. Emissions from refrigerant leakages are calculated
based on the refrigerant capacity and the GWP (global warming potential) values of the
different refrigerants. The refrigerant emissions also include an estimate of the leakage
rates of the refrigeration systems in properties. The leakage rates of the refrigeration
systems in properties are based on the available data for individual properties, from which
the average leakage rates for all properties are calculated based on the floor area of the
property.
Scope 2 – Indirect GHG emissions from energy consumption
Scope 2 emissions from own operations include emissions from purchased energy. This
includes purchased electricity, and district heat and cooling.
Both location-based and market-based emissions are calculated for purchased electricity.
Location-based emissions are calculated using national average emission factors. The
market-based figure is calculated on the basis of the energy contracts used by Kesko and
guarantee of origin certifications. Purchased electricity covered by guarantees of origin is
counted as zero-emission. Other market-based purchased electricity is calculated with
national emission factors according to the residual mix.
Of Kesko’s purchased energy, i.e. purchased electricity, district heat and district cooling, a
total of 60%, approximately 331 GWh, is covered by guarantees of origin or renewable
energy certificates. The electricity covered by guarantees of origin and renewable energy
certificates is generated by nuclear and wind power.
Consumption data for purchased electricity covers 97% of the properties and the remainder
is estimated on the basis of existing data. In Finland, the district heat consumption data
covers 98% of properties. In some of the operating countries, there is incomplete data on
district heat. However, the proportion of missing data is not significant.
Scope 3 – Indirect GHG emissions from the value chain
Kesko reports Scope 3 value chain emissions in categories 1, 2, 3, 4, 5, 6, 7, 9, 11, 12 and 14.
The omitted categories have been identified as non-material in relation to Kesko’s Scope 3
emissions, or Kesko does not have the activity described by the category. In some of the
Scope 3 categories there are shortcomings in the data for the operating countries. The most
significant shortcomings are indicated for the category in question in the text describing the
calculation methodology. The calculation of the indirect emissions from the value chain is
largely based on estimates and therefore the calculation methods and sources used contain
a considerable degree of uncertainties and can only be used as a very high-level estimate of
the actual climate impacts.
The basic data for the calculation have been collected from Kesko’s systems, external
service providers or directly from business partners. The emission factors used are largely
from local Finnish databases or global databases. The databases used include DEFRA GHG
conversion factors (2023), GLEC Framework V3.1, Statistics Finland's Fuel classification
(2024) and the Emissions database for construction (2024). Individual emission factors and
emission calculations have been obtained directly from suppliers and service providers and
other business partners.
Kesko’s largest value chain emissions are generated in category 1 Purchased goods and
services. In the following, we explain in more detail the calculation methods for the main
emission categories.
Category 1 – Purchased goods and services, category 11 – Use of sold products
and category 12 – End-of-life treatment of sold products
Emissions from purchased goods and services are calculated based on the weights of the
purchased goods. If purchase data are not available, sales data are used. If data on the
weight of the goods is not available, emissions are calculated based on euros. The
calculation of vehicle emissions utilises a commonly used tool within the automotive
industry.

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In the building and technical trade division, the share of emissions generated during the use
of the product is assumed to be 30% of emissions from the entire life cycle of relevant
product categories, e.g. electrical appliances. Emissions generated during end-of-life
treatment in the car trade are assumed to be 5% of emissions generated during the entire
life cycle.
The emission calculation for services includes emissions from the car trade division’s
demonstration and servicing activities, as well as emissions from cleaning, property
maintenance and technical services, and IT services purchased by Kesko. For services, the
emission factors are based on the factors reported by the service providers. The calculated
average of these factors is then used to estimate emissions for all similar services.
The emissions from the use of leased vehicles are included in the categories Use of sold
products (11) and End-of-life treatment of sold products (12), as the vehicles are generally
sold after the lease period. Therefore, the emissions during the lease period are not
included in category 13 Leased assets.
Category 2 – Capital goods
The calculation includes emissions from new buildings under construction or completed
during 2024 that are owned by Kesko. Only emissions during the construction phase are
included, as it is assumed that emissions during use or at the end of the building's life cycle
are included in Kesko’s own Scope 1 and Scope 2 emissions. Emissions generated during
construction are allocated across the entire construction period.
Additionally, the category includes vehicle investments in K-Auto leasing.
Category 4 – Upstream transportation and distribution
Emissions from upstream transportation and distribution are mainly calculated on the basis
of tonne-kilometres based on transportation mode and route data. International route data
are based on averages. Accurate route data is used for transportation and distribution in
Finland. The data used for calculating emissions are obtained from Kesko’s ERP systems.
The calculation is based on the ISO 14083:2023 standard and the GLEC Framework V3.1.
In addition, emissions from the direct deliveries of Kesko’s largest suppliers in its grocery
trade and car trade and emissions from postal services in Finland are included in the
emissions in this category.
The transportation emissions of K-Bygg and Byggmakker are calculated on the basis of
actual fuel consumption. The data includes estimates due to incomplete information.
Category 14 – K-retailer operations (Franchising)
The emission calculation for K-retailer activities includes the emissions from energy
consumption in properties owned or rented by the retailers and the emissions from
refrigerant leakages from retailers’ refrigeration equipment.
The energy consumption emissions of stores owned or rented by K-retailers are calculated
on the basis of the floor area of the store and the specific consumption of electricity and
heat. Specific consumption is assumed to be in line with the sites used in Kesko’s own retail
trade operations.
Emissions from refrigerant leakages are calculated based on the refrigerant capacity and
the GWP (global warming potential) values of the different refrigerants.
Targets
For Scope 1 and Scope 2 emissions, our goal is to achieve a total reduction of approximately
30% compared to the 2024 base year. The base year and target level for emissions have
been calculated market-based basis. The target levels for emissions reductions by 2030
have also been defined separately for Scope 1 and Scope 2 emissions, based on an
assessment of the development of different emission sources. The Scope 2 emission target,
calculated on a location-based basis, is based on an estimate of electricity and heat
consumption in 2030. Since there is no outlook available for the development of national
average emission factors for purchased electricity and heat, the calculation has been carried
out using the national emission factors for 2024.
The target for Kesko’s value chain is that 67% of suppliers and service providers, measured
by spend, will set science-based emissions reductions targets by the end of 2026. In 2024,
48% of suppliers had set science-based, short-term emission targets. The achievement is
calculated by dividing the purchase euros of suppliers who have set science-based emission

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targets by Kesko’s total purchase euros. The monitoring of science-based emission targets
is based on the databases of SBTi and CDP. The spend euros for 2023 are used, as the 2023
spend euros are the selection criterion for suppliers invited by Kesko to respond to the CDP
climate questionnaire.
Our energy strategy aims to improve energy efficiency by 10% between 2024 and 2030. To
achieve this goal, we need to implement energy efficiency measures totalling at least 95
GWh. The implemented energy efficiency measures and their impacts are monitored based
on the actions recorded in Kesko’s information system and the recorded electricity and heat
savings data.

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E5 RESOURCE USE AND CIRCULAR ECONOMY
Material impacts, risks and opportunities
Impacts related to resource use and circular economy

Nature of impact | Value chain | Description | Management
Resource outflows related to packaging
Actual negative | Own operations | The logistics chain of products includes several packages, from logistics packaging to the sales packaging of a single product. | • Reducing the use of plastic in packaging. • Participation in R&D projects on packaging materials.
Waste and food waste
Actual negative | Own operations | Waste is generated in Kesko’s operations, especially in warehousing and stores. | • Increasing the waste recycling rate by ensuring proper collection facilities at each site and personnel competence. • Reducing amount of energy waste for incineration.
Actual negative | Own operations | Kesko’s warehousing and wholesalers generate food waste. | • Food waste hierarchy measures to prevent waste through order and selection management and an efficient logistics process.
Actual negative | Downstream | K-food retailers’ store operations generate food waste. | • Food waste hierarchy measures to prevent waste through order and selection management, and discounted prices as the best-before date or expiry date approaches.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.
Targets related to circular economy

|  |  | Target
Target | Unit | 2024 | 2030
Waste recycling rate | % | 67% | 73%
Food waste in Kesko’s warehousing and logistics operations | % | 0.45% | 0.22%
Food waste in K-food retailers’ store operations | % | 1.68% | 1.10%

In 2024, Kesko set a target to improve its waste recycling rate by six percentage points by
the end of 2030 compared to the 2024 baseline. This target relates to the recycling level of
waste hierarchy.
Kesko’s grocery trade division is committed to halving its food waste percentage from the
2019 baseline by 2030. The target to halve the percentage covers Kesko’s warehousing and
logistics operations as well as K-food retailers’ store operations. The target relates to the
reduction of waste level of the waste hierarchy. Food industry operators are required by law
to report their food waste to the Natural resources institute in Finland. The food waste target
is also one of the indicators of Kesko’s sustainability-linked loans.
The targets have been set voluntarily and they are not science based.

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Policies related to resource use and circular economy
In its sustainability policy, Kesko is committed to reducing food waste in its own operations
as well as in collaboration with stakeholders such as K-food retailers who operate
downstream in Kesko’s value chain. In the sustainability policy, Kesko also commits to
reducing the use of packaging materials, especially plastic, and promoting recyclable
packaging material in its private label products’ packaging. The policies for Kesko’s private
label products’ packaging and logistics packaging are described in the packaging policy. The
sustainability policy does not include the waste hierarchy or prioritise minimising waste over
recycling. The s ustainability policy covers the Kesko Group operations.
The Executive Vice President, Legal and Sustainability at Kesko Group is responsible for
implementing the principles of Kesko’s sustainability policy.
Resource outflows related to packaging
Kesko has a packaging policy for its private label products and logistics packaging. In its
packaging policy, Kesko is committed to avoiding the use of excess packaging material and
reducing the use of plastic in its packaging.
Several different packages are included in the logistical chain of a product. The packaging
hierarchy levels are transport package, multipack and sales package. These packaging
hierarchy levels cover packaging ranging from transport packages containing hundreds of
products to sales packages for a single product.
Kesko is committed to several national Green Deals related to the circular economy. The
grocery trade is committed to the food industry’s material efficiency commitment and the
SUP (Single Use Plastic) Green Deal. These include targets and actions on food waste,
increasing waste recycling rates and reducing single-use plastics. The commitments cover
both Kesko’s own operations and the operations of downstream retailer entrepreneurs. The
building and technical trade in Finland has joined the Construction Plastics Green Deal,
which aims to accelerate the circular economy of plastics by reducing the use of single-use
plastics, to increase the use of recycled plastics and promote the recycling of plastics in the
construction sector.
Kesko is also involved in several research and development projects in which, in cooperation
with partners, the aim is to find new solutions that support the circular economy and
solutions for example reducing the amount of plastic throughout the value chain.
Recyclability of packaging
The materials used in the packaging of Kesko's private lablel products are 97% recyclable.
The figure is calculated on the basis of the materials used for the product’s sales packaging.
The figure indicates the recyclability of the material, but does not indicate whether the
packaging is actually ultimately recycled. The figure covers packaging of private label
products in Finland. The recyclable materials are materials that can be sorted for recycling by
consumers in Finland. Non-recyclable packaging materials include rubber, wood in consumer
packaging, ceramics and porcelain. Private label products are products where trademark is
owned by Kesko or where Kesko is mentioned in the contact details on the product’s product
labelling.
Food waste
Kesko is committed to halving its food waste percentage by 2030 from the 2019 baseline.
The commitment covers Kesko’s warehousing and logistics operations, as well as K-food
retailers’ store operations.
Kesko has developed a food waste roadmap and a food waste hierarchy to reduce the
amount of food waste. In line with the target to halve food waste, the food waste hierarchy
also takes into account the food waste generated by both Kesko’s and K-food retailers’
operations and the measures to reduce it.
The primary means of preventing food waste include selection management at K-food stores
and Kespro’s cash-and-carry outlets, as well as forecasting and demand planning. In practice,
this means having the right amount of products that customers want in the right place at the
right time. The most important decisions in terms of preventing food waste are made at the
selection planning stage.
In addition to preventing food waste, a key means to reduce waste at K-food stores is to sell
products at a discount as the products’ ‘best before’ or ‘use by’ date approaches.

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Edible but unsellable fruit and vegetable waste generated in Kesko's warehouse and logistics
operations is used to produce waste-based products. An example of this is soups made from
tomato and pepper waste generated during storage.
Food waste covers the two lowest levels of the food waste hierarchy, the donation of edible
food to food aid and non-edible organic waste. K-food stores and Kespro cash-and-carry
outlets donate edible products removed from sale for distribution as food aid. Biogas is
produced from non-edible food waste and used as energy.
Kesko food waste hierarchy
The food waste management steering group monitors food waste reduction targets in
Kesko’s grocery trade. The steering group’s role is to ensure that the annual targets of the
food waste roadmap are met. Reducing food waste is an ongoing effort, involving a wide
range of grocery trade personnel in different roles, as well as K-food retailers and their
employees.
During 2024, K-food stores have taken measures such as reducing minimum stock levels and
reducing and refining pre-ordering. Additionally, new basic and advanced level online
training courses on the reduction of food waste have been launched for the grocery store
employees.
Progress towards the targ et in 202 4

|  |  |  | Target
Target | Unit | 2019 | 2024 | 2030
Food waste in Kesko’s warehousing and logistics operations | % | 0.44% | 0.45% | 0.22%
Food waste in K-food retailers’ store operations | % | 2.12% | 1.68% | 1.10%

The base year for the target to halve food waste is 2019. The food waste percentage in
Kesko’s warehousing and logistics operations was 0.44%. The food waste percentage in K-
food retailers’ store operations was 2.12%.
Kesko’s grocery trade warehousing and logistics operations include warehousing and
logistics operations serving K-food stores and Kespro’s foodservice customers. The relative
food waste level of Kesko’s warehousing and logistics operations has remained at the same
as the 2019 baseline. In the warehousing and logistics operations serving only K-food stores,
the relative food waste percentage has decreased from the 2019 level, from 0.36% in 2019 to
0.29% in 2024.
The combined food waste percentage from logistics operations serving K-food retailers and
K-food stores was 2.32% in 2019. The food waste percentage has decreased to 1.84% by
2024. The percentage is calculated by comparing the total amount of food waste generated
in logistics operations serving the stores and in the K-food stores to the amount of food sold
in kilograms by the stores.

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Food waste includes food that ends up as waste or animal feed and food aid donations. The
food waste percentage is calculated by comparing the kilograms of food waste to the
kilograms of food sold during the reporting period.
Actions on waste management and circular economy
Kesko is committed to reducing the amount of waste directed to disposal and increasing the
amount of waste directed to recycling in its operations.
Kesko has a centralised waste management agreement, a circular economy agreement,
which largely covers Kesko’s operations in Finland. Independent grocery and building and
home improvement stores can also enter the agreement. The aim of the agreement is to
prevent waste, enhance recycling and promote the circular economy.
Key measures to improve the efficiency of waste management and increase recycling rates
are ensuring proper collection facilities at each site, ensuring personnel competence and
recycling concepts. Key measures to increase the waste recycling rate are improving the
separate collection of plastic packaging fractions and reducing the amount of energy waste
going to incineration.
The key actions to promote the circular economy and increase the recycling rate of waste
start from formatting the Group’s waste hierarchy and division-specific action plans. Many
circular economy measures are already part of everyday operations at Kesko’s sites, but new
circular economy operating models are being explored and efforts are being made to
continuously improve the efficiency of operations.
Progress towards the target
The target for increasing the recycling rate was set in 2024. Progress towards the target will
be monitored at the division level. In the divisions, progress towards the target is monitored
by their sustainability steering groups. The role of the steering groups is to monitor and steer
the recycling rate and set the necessary division-specific measures through action plans. At
Group level, progress towards the target is reported to the Group sustainability management
team.
Amount and type of waste
Total waste

Tonnes | 2024
Non-hazardous waste | 27,177
Hazardous waste | 782
Total waste | 27,959
Total recycled waste | 18,854
Total non-recyclable waste | 9,105
Percentage of non-recyclable waste from total waste, % | 33%

Non-hazardous waste

Tonnes | 2024
Waste diverted from disposal |
Preparation for reuse | -
Recycling | 18,470
Other recovery operations | 7,959
Total waste diverted from disposal | 26,430
Waste directed to disposal |
Incineration | 210
Landfill | 531
Other disposal operations | 6
Total waste directed to disposal | 747
Total non-hazardous waste | 27,177

Hazardous waste

Tonnes | 2024
Waste diverted from disposal |
Preparation for reuse | 2
Recycling | 384
Other recovery operations | 376
Total waste diverted from disposal | 762
Waste directed to disposal |
Incineration | 9
Landfill | 2
Other disposal operations | 9
Total waste directed to disposal | 21
Total hazardous waste | 782

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Most of the waste is generated in Kesko’s own retail store operations, warehousing and
logistics operations. The largest waste fraction in Kesko’s operations is cardboard, which is
generated from packaging used during the transportation and storage of products. The
second largest is energy waste, which is incinerated to produce heat and electricity.
In the grocery trade division a significant waste stream is biowaste, which includes former
food products of animal origin (category 3 by-product), such as meat and fish products,
which are no longer fit for human consumption and by-products from food storage, handling
and manufacturing. Waste streams in the building and technical trade include, in particular,
wood waste, mixed waste and various construction product waste. In addition to cardboard,
the car trade division generates metal and steel waste and hazardous waste from, for
example, car batteries, paints and oils used in servicing and damage repair work.
The nuclear energy purchased by Kesko in Finland and Sweden produced 141 kg of
radioactive waste. In Finland and Sweden the management and disposal of nuclear waste is
strictly regulated and controlled.
Accounting policies
The amount of waste covers the amount of waste generated at Kesko’s own sites and the
amount of waste generated by outsourced storage services.
Data on the amount of waste generated is obtained from the databases of waste
management partners and from invoices or lessors of properties. Data on individual sites
have been estimated on the basis of existing data if the amount of waste generated by
Kesko’s operations is not directly available. Such sites include, for example, locations in
shopping centres where Kesko does not have its own waste management contract. The
amount of waste in outsourced storage services and in some department stores in the K-
Citymarket chain includes estimates of the amount of waste generated by Kesko.
Incineration with energy recovery has been classified as other recovery operation in all
operating countries, in accordance with Annexes 1 and 2 of the European Parliament
Directive 2008/98. Incineration without energy recovery is classified as incineration.
Hazardous Waste is classified according to Annex 3 of the European Parliament Directive
2008/98. All other waste is classified as non-hazardous. Waste disposal is classified
according to the waste treatment methods of each operating country, which may result in
differences between countries.
The recycling percentage includes recycled waste, which is calculated as a proportion of the
total amount of waste generated during the reporting period.
The metrics presented in this section have not been validated by an external third party,
other than the sustainability reporting auditor.

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SOCIAL
S1 OWN WORKFORCE
Material impacts, risks and op portunities
Impacts related to own workforce

Sub-topics | Nature of impact | Value chain | Description | Management
Working conditions
Employment and cooperation between the parties • Secure employment • Adequate wage • Collective bargaining • Social dialogue | Potential positive | Own operations | Ongoing cooperation with employees and employee representatives on secure employment, adequate wages, employment terms and dialogue ensure fair employment terms and working conditions for employees. | Kesko has agreed cooperation concepts in place that allow employees to influence matters that concern them and that describe the way in which ongoing dialogue can be used to influence the culture of cooperation.
Ways of working, work-life balance • Working time • Work-life balance | Potential positive | Own operations | Improving the ways of working and work-life balance provide the opportunity for meaningful and flexible working throughout the life cycle of an employment relationship. The entitlement and opportunity for employees to take family leave are essential. We offer various options to ensure employees achieve balance between work and private life. | We are enhancing workplace flexibility and streamlining processes, and offer a range of flexibilities, such as flexible working hours, adaptable working time, part-time work and, for specialists, hybrid work. These possibilities have an impact on job satisfaction, a good employee experience and commitment to the job.
Health, safety and wellbeing | Actual negative | Own operations | We offer a wide range of jobs, and the health and safety challenges of these jobs also vary. These may affect employees’ work capacity in the short or long term. | We respond to the identified impacts with an occupational safety management model and systematic planning to anticipate and mitigate various occupational health and safety challenges. The weighting of impacts and their management vary in different units and age groups.
Equal treatment and opportunities for all
Equal treatment and inclusion • Gender equality and equal pay • Diversity • Measures against harassment in the workplace | Potential positive | Own operations | Equal treatment, diversity and inclusion have a major impact on the attractiveness of a workplace and employee retention. Kesko has a zero-tolerance policy on violence and harassment to ensure employees’ health and safety. | We manage impacts related to equal treatment through the DEI (diversity, equity, inclusion) programme. Non-discriminatory recruitment, good management, functional HR practices, anti- harassment policies and training promote positive impacts. We ensure gender equality and equal remuneration through our remuneration principles and practices.
Training and skills development | Potential positive | Own operations | Employees have the opportunity for continuous learning, skills development and career advancement. | Competence development is based on business targets. In accordance with the management model’s annual cycle, a development discussion is held between managers and employees to agree on the competence development actions. Kesko has a range of classroom and online training courses for employees, and information on available trainings is provided on the intranet.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.

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Material impacts, risks and opportunities and their interaction with
strategy and business model
Material impacts, risks and opportunities relating to own workforce have been assessed by
Kesko’s HR management, and material impacts have been discussed by the Group’s
employee representative team. Own workforce includes all Kesko employees who are in an
employment relationship with Kesko. The types of employment relationships are described in
more detail in S1 Key figures for personnel. Personnel recruited through employment
agencies work in some of Kesko’s business areas. To ease the first-time application, w e
utilise the phased-in provisions and we do not include information on non-employees in the
first year of preparing the sustainability statement.
Kesko has identified positive impacts on its own workforce in the following areas:
e mployment and cooperation between parties, ways of working and work-life balance, equal
treatment and inclusion, and training and skills development. These are described in more
detail under the different sub-topics. We have identified an actual negative impact in the
area of occupational safety in relation to work-related accidents. Work-related accidents are
usually individual accidents, and mainly minor. The highest number of work-related accidents
take place among logistics workers, car mechanics and store employees. In Finland, the
proportion of people under 35 years of age was higher in work-related accidents than in
other age groups.
The rate of sickness absences has begun to decline. The primary cause of diagnosed sickness
absence was mental health disorders, which were particularly prevalent among young people
under 35 and among store employees. Absences due to musculoskeletal disorders were
notably prevalent among workers aged over 50.
Kesko does not have any particularly high-risk operations in operating countries or
geographical areas, for example, which would be associated with a significant risk of forced
labour or child labour among its own workforce. The S2 Workers in the value chain section
also covers the risk of forced labour and child labour. Kesko has not identified any material
impact on its own workforce in relation to the green transition plan.
Management of impacts
Kesko’s HR management conducts an HR risk analysis quarterly. Risk assessments and the
necessary mitigation measures are an integral part of all operations and decision-making
related to Kesko’s own workforce. Separate systematic monitoring of occupational safety,
health and wellbeing is carried out using data and planning of further measures in
cooperation by the Group and the business areas. We work closely with insurance
companies and occupational health service providers to manage and reduce negative
impacts. The responsible persons in the Group’s and divisions’ HR, Legal Affairs and
Sustainability units and the responsible persons and managers in the business areas are the
key parties responsible for managing the identified material impacts. Within the various sub-
topics, extensive cooperation is carried out with employees and employee representatives,
and this is described in more detail in the Engagement with own workforce section.
Material identified impacts from the perspective of Kesko’s own workforce have been taken
into account in Kesko’s sustainability strategy and HR strategy and the related objectives.
Targets related to own workforce

|  |  | Target
Target | Unit | 2024 | 2030
Workplace injuries, own workforce | Total Recordable Injury Frequency (TRIF) | 25.9 | 22.0
Employee wellbeing | Wellbeing index | 83 | 86
Diversity and inclusion | D&I index | 87 | 89
Gender balance in top management | % of underrepresented gender | 27.7% | 40.0%
Gender balance in middle management | % of underrepresented gender | 32.8% | 45.0%

Kesko’s sustainability targets and metrics for the sub-topics of wellbeing and occupational
safety and diversity, equity and inclusion are set out in the table above. The sustainability
targets have also been discussed in the Group’s team of employee representatives.
The Group Management Board regularly follows the targets related to own employees as
part of the progress of the sustainability strategy. HR management and sustainability
management, responsible persons at HR, steering and working groups and employee

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representatives monitor achievement of the targets. Key monitoring tools include employee
engagement survey results, continuous performance management and performance reviews
and development discussions. Targeted surveys and interviews are also conducted to identify
needs by business area or country.
We monitor our gender balanced representation using data from Kesko’s HR system. The
workforce-related targets are based on our personnel policies. The year 2024 is the base
year for the human resources metrics and the target level is set for 2030.
Policies related to own workforce
The Group‘s HR policy and the K Code of Conduct, as well as the sustainability and HR
strategies, steer and support goal-driven actions related to employees. The HR policy
includes guidelines and principles of the following topics: leadership cornerstones,
performance management, compensation, competence development, equality, non-
discrimination and diversity, safety and wellbeing, and recruitment. These are complemented
by health and occupational safety principles, competence development principles and
remuneration principles. In line with the K Code of Conduct, we do not accept the use of
child labour, any form of forced labour, or human trafficking or any other forms of modern
slavery. All these policies mentioned cover the entire own workforce in all operating
countries and they are available for the personnel on Kesko’s intranet. The policies do not
include employment and cooperation between parties, or work-life balance. The HR policy, K
Code of Conduct and the occupational health and safety principles are available on Kesko’s
external website.
The HR policy has been approved by Kesko’s Board of Directors and the occupational health
and safety principles by Kesko’s labour protection steering group. The most senior role that
has responsibility for implementation of the policies concerning personnel mentioned above
is the Executive Vice President, HR, who is a member of the Group Management Board. The
policies are also addressed in each separate topic.
Section G1 Business Conduct lists Kesko‘s own guidelines and operating models relating to
corporate culture, business conduct and respect of human rights are listed, as well as the
international guidelines and principles to which Kesko is committed in all its operations. In
addition to these, Kesko complies with the ILO Declaration on Fundamental Principles and
Rights at Work and is committed to the UN’s Women‘s Empowerment Principles to promote
gender equality and professional development for women.
Our operations are based on non-discrimination and equal opportunities. We do not accept
any forms of forced labour or child labour. We ensure safe and healthy working conditions in
accordance with local laws, international occupational safety standards and best practices.
Kesko’s engagement with employees is based on openness, inclusion and continuous
dialogue.
Kesko protects the personal data and privacy of employees both during and after the
employment relationship. Employee data is processed securely and responsibly. In addition
to internal control, external parties regularly conduct audits on operations.
Key figures for own workforce
Employee head count by gender

Gender | Number of employees
Male | 10,853
Female | 7,444
Other | 12
Not reported | -
Total employees | 18,309

The average number of Group personnel converted to full-time equivalent employees by
segment is presented in the Note 2.5 Operating expenses and geographical breakdown in
the Note 2.2 Segment information of the consolidated financial statements.
Employee head count in countries where there are at least 50 employees
representing at least 10% of the total number of employees

Country | Number of employees
Finland | 12,555
Norway | 2,091

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Employee head count by contract type and gender

| 2024
| Male | Female | Other | Not reported | Total
Employees | 7,444 | 10,853 | 12 | - | 18,309
Permanent | 6,528 | 9,183 | 10 | - | 15,721
Temporary | 659 | 896 | 1 | - | 1,556
Non-guaranteed hours | 257 | 774 | 1 | - | 1,032
Full-time | 3,845 | 8,533 | 4 | - | 12,382
Part-time | 3,599 | 2,320 | 8 | - | 5,927

Employee turnover

| 2024
Number of employees who have left undertaking | 4,161
Employee turnover, % | 18.5%

Employee head count by contract type and operating country

| 2024
| Finland | Norway | Sweden | Denmark | Estonia | Latvia | Lithuania | Poland | China* | Total
Number of employees | 12,555 | 2,091 | 1,458 | 893 | 181 | 93 | 88 | 935 | 15 | 18,309
Permanent | 10,862 | 1,711 | 1,224 | 825 | 172 | 93 | 87 | 732 | 15 | 15,721
Temporary | 794 | 380 | 101 | 68 | 9 | - | 1 | 203 | - | 1,556
Non-guaranteed hours | 899 | - | 133 | - | - | - | - | - | - | 1,032
Full-time | 7,746 | 1,554 | 1,084 | 699 | 179 | 88 | 87 | 930 | 15 | 12,382
Part-time | 4,809 | 537 | 374 | 194 | 2 | 5 | 1 | 5 | - | 5,927

*Kesko’s building and technical trade has a purchasing office in Shanghai, serving all operating countries in purchasing.
Accounting policies
Key figures related to own workforce cover Kesko Group employees in all operating
countries. The own workforce figure used in the calculations is expressed as the number of
employees as at the last day of the year. This figure also includes people who are not
actively working, such as those on family leave.
The gender distribution of the workforce by number of employees is as follows: male,
female, other or not reported by the employee.
Employee turnover includes all employees who left the Group during the year divided by the
average number of employees during the year. The average number of employees for the
year is calculated as the average of the average number of employees over the reporting
months.
The metrics presented in this section have not been validated by an external third party,
other than the sustainability reporting auditor.

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Engagement with own workforce
Processes for engaging with own workforce and their
representatives
Actual and potential impacts on own workforce are discussed in close cooperation between
the employer and employee representatives in those Kesko operating countries where there
are employee representatives. Kesko takes the views of its employees into account in its
decision-making, which helps the company to better understand the potential risks and
impacts related to its workforce.
Kesko has multible employee forums where there is regular dialogue between employees and
the employer. The dialogue is conducted directly with employees, their representatives and
managers. Cooperation models vary by country, depending on the local legislation. Kesko
Group has the following employee forums to develop and follow the impacts on our
employees: Kesko’s cooperation group meets twice a year, employee representative team
meets monthly, the HR management groups for each business area meet monthly or at least
quarterly, and the equality and non-discrimination group meets twice a year. The person with
the most senior role that has operational responsibility for ensuring engagement of and
cooperation with employee representatives is the Executive Vice President, HR, who is a
member of the Group Management Board.
In Finland, there is an agreement on the organisation of employee representation. At Kesko,
we have also made a European Works Council (EWC) statement to deepen our cooperation
and dialogue. The effectiveness of inclusion of the employees is measured by the amount of
dialogue, the topics discussed, the continuous feedback from employee representatives and
the questions presented to senior level management at the Group cooperation meeting.
At Kesko, a K Voices employee engagement survey has been conducted on the entire
workforce to gather views and experiences on a broad scale. Based on the employee survey,
teams and units drew up development plans in 2024. For example, in Finland, there have
been discussions with individuals representing language minorities on how to better include
them in the working community, and communication in English has been increased.
Kesko respects employees’ freedom of association and collective bargaining in accordance
with local legislation. Regarding issues related to working conditions, wages and collective
agreements, we provide employees with channels to influence the decisions that affect them.
Processes to remediate negative impacts and channels for own
employees to raise concerns
We organise employee forums and consultations where employees can raise their views on
any problems they may have regarding working conditions, occupational health and safety or
discrimination. The challenges raised by employees can lead to concrete changes in
practices, which can help to manage potential negative impacts.
Kesko is committed to ensuring a fair and safe working environment for all its employees.
Kesko involves employees and labour protection representatives in the assessment of
working environment risks. Inclusion of employees helps to identify both current and
potential risks more effectively.
We address employee concerns appropriately and effectively through the following topics:
clear communication, prompt and systematic investigation, and a fair handling process that
protects the employee when necessary. We actively monitor the effectiveness of remedies
and implement new measures, as necessary.
Kesko collaborates closely with employee representatives, such as employee representatives
and trade unions. We organise regular discussion events where employees can raise their
concerns and discuss them directly with management. At these events, we discuss topical
issues and seek solutions together. Dialogue has focused on issues such as workload, the
working capacity of senior employees, hybrid working models, i.e. combining on-site and
remote work, and remuneration practices.
Employees are informed about the available reporting channels and how to use them, for
example via intranets and screens at sites. Employees and consultants should report
suspected misconduct primarily to their manager or responsible person at K Group. When
for some reason the the information can not be delivered to the persons in charge, the
SpeakUp whistleblowing channel, where all reports are handled confidentially, can be used.
The employees of the company maintaining the SpeakUp channel are bound by strict
confidentiality obligations. The reports to be investigated by Kesko are handled by Kesko´s

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Governance, Compliance & Ethics Group function. Other experts or authorities may be
needed in investigations on a case-by-case basis. The SpeakUp channel is described in more
detail in section G1 Business Conduct, Whistleblower protection.
In addition to the SpeakUp channel, representatives of Kesko‘s employees, occupational
health and safety representatives or employee representatives, are available to the workforce
locally. In Finland, the Task Force approach can be used to investigate more extensive or
serious reports from employees. There are also various surveys through which employees
can express their views and wishes anonymously. Cases and internal investigations other
than those submitted through the SpeakUp channel are part of the normal HR work and
employment law and are not included in the statistics. The business areas’ HR and employee
representatives address the challenges and concerns of employees and monitor the
effectiveness of implemented measures.
Employment and cooperation between the parties
Employment and cooperation between the parties covers following sub-sub-topics of the
Own workforce standard relating to working conditions: coverage of collective agreements
and social dialogue, adequate pay and social protection.
Policies related to employment and cooperation between the
parties
We promote continuous dialogue with employees and employee representatives to ensure
fair employment terms and working conditions.
Actions related to employment and cooperation between the
parties
A good employer brand is a key factor in ensuring the recruitment of skilled employees and
commitment to the job. Equal treatment, diversity, inclusion, opportunities for personal
development and related measures have a major impact on the attractiveness of the
workplace and employee retention.
Trade union representation at the workplace is widespread in the Nordic countries. Social
partners engage in intensive and ongoing dialogue to consult employees on their
expectations. W e participate in dialogue, for example, in Finland as a member of the Finnish
Commerce Federation, an association for employers in negotiating collective agreements,
and as members of its various decision-making bodies. At the local level, we engage in
dialogue with elected employee group representatives in many of the negotiation forums
mentioned above. There are no collective agreements in Estonia, Lithuania, Latvia or Poland.
Kesko is committed to paying all its employees competitive wages that meet or exceed the
minimum legal requirements and are sufficient to cover basic living costs. Wages are based
on the level defined in the collective agreement. In countries where there is no collective
agreement practice, employees are entitled to at least a minimum wage.
At Kesko, all employees are covered by social protection in accordance with collective
agreements, legislation or insurance. Social protection covers the following situations against
possible loss of income: sickness, unemployment, employment injuries and disability,
parental leave and retirement.
C overage of collective bargaining a nd social dialogue

| Collective Bargaining Coverage | Social Dialogue
Coverage Rate | Employees – EEA | Employees – Non- EEA | Workplace representation (EEA only)
0-19% |  |  |
20-39% |  |  |
40-59% |  |  |
60-79% | Finland |  |
80-100% | Norway |  | Finland, Norway
for countries with >50 employees representing >10% total employees

Employees covered by collective bargaining agreements

| 2024
Percentage of total employees covered by collective bargaining agreements | 75.6%

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Accounting policies
The number of employees who are covered by collective agreements and in an employment
relationships is set in proportion to the number of employees with an employment
relationship. In Finland, Norway and Denmark, blue-collar and white-collar workers are
covered by collective agreements, excluding senior salaried employees in Finland. In
Sweden, all employees, excluding the country director, are covered by collective
agreements.
An employee’s base salary is compared to the applicable base salary, which, depending on
the country’s practice, is either the salary according to the collective agreement or the
minimum wage. In the Nordic countries, an employee’s base salary is compared to the
salary according to the collective agreement. In Estonia, Latvia, Lithuania and Poland, an
employee’s base salary is compared to the minimum wage. The metrics presented in this
section have not been validated by an external third party, other than the sustainability
reporting auditor.
Ways of working, work-life balance
The ways of working, work-life balance section covers the following sub-sub-topics of the
Own workforce standard related to working conditions: working time and work-life balance.
Policies related to work-life balance and ways of working
We are committed to supporting work-life balance with flexible working conditions and
respecting family rights such as parental leave and the right to care for dependants. At
Kesko, all employees are entitled to family leave in all operating countries in accordance with
local legislation. Separate principles on ways of working, such as hybrid work, have been
drawn up and may vary from country to country.
Actions related to work-life balance and ways of working
At Kesko, we offer various opportunities for a good work-life balance, such as flexible
working time, part-time work during different life situations and the opportunity for
specialists to do hybrid work. Various flexibilities and family leave policies contribute to
employee wellbeing and retention at different stages of the career.
Distribution of emplo yees entitled to take family-related leave and employees
who have taken family-related leave

| 2024
Employees that are entitled to take family-related leave, % | 100%
Male employees that have taken family-related leave, % | 3.2%
Female employees that have taken family-related leave, % | 5.5%
Other or unknown that have taken family-related leave, % | -

During 2024, a total of 4.2% of Kesko´s employees have been on a family-leave.
Accounting policies
The metric is based on the legislation on family leave in different operating countries.
Eligibility for family leave is defined in the legislation of each country. All employees are
entitled to family leave. The distribution of employees on family leave is presented by
gender (male, female, other or not known) as a percentage of the group entitled to family
leave. The metrics presented in this section have not been validated by an external third
party, other than the sustainability reporting auditor.
Health, safety and wellbeing
Policies related to health, occupational safety and wellbeing
Our operations are guided by Kesko‘s HR policy that covers all operating countries, separate
health and occupational safety principles and the K Code of Conduct.
Occupational health and safety management is based on legal requirements, the
identification of material risks and the implementation of good practices. Our occupational
safety management model defines responsibilities at different levels of the organisation.
Occupational safety risks are assessed and analysed within the Group in accordance with its
approved risk assessment system. Managers are responsible for the induction of
occupational health and safety topics to new employees, and employees are also provided
with occupational safety training. The manager, together with occupational health and HR
specialists, also assesses the employee’s work capacity and wellbeing. At Group level, we
measure wellbeing and psychosocial load regularly as part of the K Voices employee
engagement survey.

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Kesko’s occupational safety steering group is responsible for the defining strategic targets,
specifying the division of responsibilities at different organisational levels, coordinating
measures and monitoring their effectiveness. Measures include occupational safety induction
and job training, opportunity to make safety observations and a comprehensive risk
assessment process, as well as guidance on how to investigate work-related accidents that
result in absence from work. Management models vary according to the countries of
operation and local legislation.
Kesko’s employees can share their observations and views on occupational safety as agreed
within the work community. The managers have operational responsibility for occupational
safety in their units and the labour protection managers coordinate cooperation in their area
of responsibility. The Group’s occupational safety unit reports on key occupational safety
indicators and measures to the division and Group management every six months.
It is important for everyone to identify the resources that support wellbeing and to address
factors and situations that threaten health and work capacity. Services that support
employees’ occupational health are organised in accordance with the practices and
legislation of each country. Support for mental health is also available in some operating
countries. Kesko’s HR policy includes principles for supporting work capacity throughout the
career. The means vary according to the legislation and practices of the operating countries.
We are also committed to helping persons with partial work capacity to continue in working
life through various means. The priorities for supporting groups in vulnerable situations vary
by country.
Actions related to health, occupational safety and wellbeing
The occupational health and safety management system covers 100% of the entire
workforce. Occupational safety systems and measures vary from country to country. At
Kesko, we prevent potential negative impacts on occupational health, safety and wellbeing
by fulfilling legal requirements, identifying, preventing and mitigating material risks and
implementing good occupational health and safety practices. The business areas are mainly
responsible for occupational safety, employees’ wellbeing at work, and related measures.
Occupational safety managers and representatives play a key role in planning and
developing. We develop cooperation with employees and employee representatives in
accordance with national laws and practices. We ensure the management of impacts through
concrete action plans and the monitoring of their implementation, and through effective
processes and human resources planning.
Occupational health and safety issues are discussed at Group level three times a year in the
Occupational Safety Group Personnel Committee. In addition, in Finland, business area
managers and HR review occupational health and safety issues every six months, monitor the
development of indicators and decide on the necessary measures for occupational safety and
wellbeing at work. The Group sustainability management team reviewed the execution of the
occupational safety and wellbeing objectives during 2024.
In 2024, communication guidelines were compiled at Kesko, according to which all operating
countries are obliged to inform Kesko Group’s communications about, for example, fatal
accidents at work that have occurred at a Kesko workplace. In Finland, for example, labour
protection officers received training on more preventive labour protection work, and new
thematic labour protection training and online training for labour protection delegates were
implemented. A safety campaign for commuting was also launched. Surveys, risk
assessments and statistical data have been used to assess the risks and hazards of work.
Specific support has been provided to managers whose teams have experienced harmful
psychosocial loading. Work-related accidents are recorded in work-related accident systems
to facilitate their investigation.
Kesko’s units create an annual action plan outlining topics for development, and HR monitors
its implementation. Division and Group management also carry out occupational safety
management measures on the basis of semi-annual reporting. Occupational safety is
promoted both through internal audits and external ISO 45001 certification in the building
and technical trade in all operating countries. The principles of the certification are also
applied elsewhere at Kesko.
Absences, accidents and occupational diseases are prevented at Kesko through systematic
operating models and close cooperation between the Group, the business areas and
employee representatives. Examples of this include the sickness absence and occupational
safety management model and, in Finland, developing the competence of HR employees and
managers in work capacity management. At Kesko, we actively support employees in
individual situations where their work capacity is reduced, for example by modifying their

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work. Different countries have different priorities for supporting groups in vulnerable
situations.
Work-related accidents, cases of work-related ill health and fatalities

| 2024
Number of recordable work-related accidents | 714
Rate of recordable work-related accidents (TRIF) | 25.9
The number of cases of work-related ill health | 4
The number of fatalities as a result of work-related injuries and work-related ill health | -
The number of days lost to work-related injuries and fatalities | 2,147

Accounting policies
Work-related accidents, occupational diseases, fatalities due to work-related accidents and
occupational diseases, number of days lost due to work-related accidents and fatalities are
reported for own workforce. The number of work-related accidents is the number of work-
related accidents that have been reported to the employer from all countries. The work-
related accident frequency is calculated by multiplying the number of work-related
accidents by one million hours worked and dividing by the number of hours actually worked
(TRIF). The figure includes all work-related accidents and work-related pain cases reported.
Occupational diseases include confirmed cases of occupational diseases according to the
ILO List of Occupational Diseases.
The days lost due to work-related diseases and fatalities are calculated in calendar days,
including the whole absence period from the first full day of absence. The number includes
days lost due to work-related accidents. The number of fatalities due to work-related
accidents and occupational diseases are added together. The figures for work-related
accidents, occupational diseases and fatalities do not include data on non-employees, such
as recruitment agency employees. The metrics presented in this section have not been
validated by an external third party, other than the sustainability reporting auditor.
Equal treatment and inclusion
The Equal treatment and inclusion section comprises the following sub-sub-topics related to
the equal treatment and equal opportunities sub-topic of the Own workforce standard:
Gender equality and equal pay, diversity, and measures against violence and harassment in
the workplace.
Policies related to equal treatment
In accordance with Kesko’s HR policy and the K Code of Conduct, we are committed to
promoting non-discrimination, equality and fairness in all our operations. We are committed
to ensuring there is no discrimination based on gender, ethnicity, nationality, skin colour,
religion, political views, marital status, sexual orientation, gender identity, age, disability, or
any other personal characteristic at the workplace. Competence, education, and motivation
are emphasised in our recruitment process. Equality is promoted by means of a participatory
approach, and is coordinated by Kesko’s employee equality and non-discrimination group.
We promote equality and non-discrimination across all our operating countries, though the
organisation and processes vary by country.
A diverse working community and a culture of inclusion are shaped through the behaviour,
attitude and choices of each employee. This is the foundation for preventing discrimination at
the workplace. Kesko is committed to the UN‘s Women’s Empowerment Principles to
strengthen the position and career development of women.
We promote equal treatment and prevent discrimination through Kesko’s common operating
principles, the K Code of Conduct and by following operating models to prevent harassment
and inappropriate behaviour and, where necessary, systematic resolution processes.
Diversity and inclusion is promoted through a programme that supports the DEI targets, with
a focus on promoting a diverse and inclusive workplace, equal remuneration and gender
equality at all levels of the organisation. At Kesko, we have prepared statutory equality and
non-discrimination plans, and we have an operating model to prevent harassment and
inappropriate behaviour and guidelines on how to act in possible discrimination situations.
Kesko’s core principles of remuneration are competitive total remuneration based on
performance and the transparent and equitable treatment of employees. The purpose of
remuneration is to encourage good performance and to commit employees to the company

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and its key targets. Kesko uses a job evaluation system which enables the comparison of
salaries in comparable jobs.
Actions related to equal treatment
Kesko is committed to the targets, measures and indicators determined in its diversity, equity
and inclusion (DEI) programme. In all operating countries, we regularly monitor employee
experience of equity and inclusion through the D&I Index. In the employee engagement
survey, the index score for 2024 was 87 on a scale of 0-100. We scored highly regarding our
employees’ perceptions that they feel accepted in the work community as individuals and
that managers treat them fairly and with respect. There was room for improvement in how
different opinions are valued in the work community.
Kesko has reviewed its recruitment process from a diversity perspective and practical
changes will be made in 2025. Awareness of diversity and equity is promoted through a
range of online training courses. Diversity and equity matters are also part of the Leader@K
training for new managers at Kesko.
At Kesko, we want to promote the career development of women. In 2024 in Finland, we
launched a leadership programme for women in partnership with Mothers in Business (MiB),
to empower women with encouragement and coaching to advance in their careers. Thirty
women are participating in the programme, which runs from 2024 to 2025.
During 2024, the English language was taken into use more extensively in Finland, which
enables more diverse employment in the future. In Finland, the grocery trade’s programme
for people with an immigrant background combines on-the-job training with training and,
where possible, employment in a store after the on-the-job training period.
The Group HR management team and the Group sustainability management team regularly
monitor the progress of the DEI programme targets.
Age distribution of employees

Age | Number | Percentage
Under 30 years | 4,763 | 26.0%
30-50 years | 8,547 | 46.7%
over 50 years | 4,999 | 27.3%

Gender distributi on of top management

Gender | Number | Percentage
Female | 26 | 27.7%
Male | 68 | 72.3%
Other or unknown | - | -

Gender pay gap by employee group

| 2024
Management | 2%
Managers and specialists | 3%
White collar | 3%
Blue collar | 1%

At Kesko in 2024, the remuneration ratio between genders is 2%. The ratio between the
annual total remuneration of the highest paid individual and the median annual total
remuneration (excluding the highest paid person) was 33.
Cases that come through other channels than through SpeakUp channel are routine
investigations related to regular HR and employment lawyers´ duties and are not registered
on a case-by-case basis. In 2024, it is estimated that Kesko received around 10–15
notifications of discrimination and harassment concerning its own workforce. This estimate
includes uncertainties, as it excludes reports that do not align with the situations defined in
the policy on inappropriate treatment or according to investigation results are other disputes
related to employment. Through the SpeakUp channel, 15 reports were received concerning
the working conditions or terms of employment of Kesko’s own workforce and other
employment-related rights, excluding notifications related to discrimination or harassment.
In 2024, no serious human rights violations were found at Kesko. Kesko has not been fined or
faced any other consequences in the cases mentioned above.

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Accounting policies
The age distribution of employees is reported as a number and percentage of employees in
three age groups.
The gender distribution of the top management is reported as a number and percentage. At
Kesko, the top management level consists of directors with a director agreement.
The remuneration figures are based on employees in active employment on the last day of
the year. The average pay gap between the total remuneration of women and men is
calculated as the weighted average of the number of people working in the same operating
country and between women and men in comparable jobs. The difference in total
remuneration is defined by employee group in the table.
The ratio of the highest-paid individual’s annual total remuneration has been calculated by
comparing it to the median of annual total remuneration. The median is calculated
excluding individuals who started after the beginning of the reporting year, who have been
absent for more than 3 months during the reporting year, and the remuneration of the
highest paid individual.
The total number of notifications on discrimination and harassment concerning the own
workforce is reported as an estimate. The main uncertainties in the assessment are
described in the measures. The number of notifications received through the SpeakUp
channel includes reports relating to own workforce and possible inappropriate behaviour,
excluding notifications of harassment and discrimination, taking place at the workplace.
The metrics presented in this section have not been validated by an external third party,
other than the sustainability reporting auditor.
Training and skills development
Policies related to competence development
In accordance with Kesko’s HR policy, competence development is based on strategy and
business objectives. As a part of annual planning process, Kesko has developed a
comprehensive plan outlining priorities and measures for competence development at both
at a Group level and within individual business units. The training plan includes competence
development actions in the following areas: leadership and management, interaction and
work life skills, and various areas of professional expertise. Group HR and responsible
persons in business areas work closely on competence development and systematically
monitor the implementation of the plans.
Sufficient level of competence ensures success at work, wellbeing at work and offers
opportunities for professional development and career advancement. We promote
competence development through training and on-the-job learning. Progress is discussed
and actions are agreed as part of the performance management process and in other
discussions with individuals.
Actions related to competence development
In 2024, the focus areas in competence development were influencing and self-leadership,
leadership and management, diversity at work, and fluent usage of IT and digital tools. In the
stores, the focus was on strengthening sales and customer interaction as well as service and
product competence. For example, store employees in Finland are provided with a broad
selection of professional training courses in a virtual learning environment, including chain-
specific training, eLearning courses and opportunities to complete vocational degrees.
Workplace instructors work in stores extensively to support employees with their learning. In
Sweden, there is also a learning platform providing extensive selection of both vocational and
general training that can be utilised by all employees.
Performance management and competence development
Performance and development discussions and performance review discussions are a
systematic part of Kesko’s performance management model. 63.5% of the own workforce
participated in performance management discussions and reviews in accordance with the
common operating approach. In addition, Kesko´s business areas have separate performance
management practices.

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Performance management and competence development

| 2024
% of employees that participated in regular performance and development discussions | 92.7%
Male | 88.1%
Female | 97.4%
Other or unknown | 100%
The average number of training hours per employee | 4.4
Male | 5.5
Female | 3.2
Other or unknown | 1.6

Accounting policies
The percentages of performance management discussions displayed in the table represent
the performance management discussions (target setting and development discussions and
performance review discussions) conducted in accordance with Kesko’s common operating
approach. The ratio of performance management discussions is calculated on the basis of
the number of people with the opportunity to have performance and development
discussions in accordance with Kesko’s common operating approach (target setting and
development discussions and performance evaluation review). These discussions are
documented in the personnel data system. In situations such as long absences or when an
employment relationship starts near the end of the year, the development discussion is not
conducted during the same calendar year. For individuals working in certain jobs, such as in
logistics and grocery store operations, team-, department- or store-level targets are set and
discussions are held regularly, but these discussions are not reported according to Kesko’s
common model.
The number of training hours, for both internal and external training, is calculated by the
reported training hours. For online training, the duration of one training session is estimated
to be 15 minutes.
The metrics presented in this section have not been validated by an external third party,
other than the sustainability reporting auditor.

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S2 WORKERS IN THE VALUE CHAIN
Material impacts, risks and opportunities
Impacts related to workers in the value chain

Nature of impact | Value chain | Description | Management
Working conditions
Potential negative | Upstream | Inadequate working conditions weaken value chain workers’ wellbeing and quality of life. | • The K Code of Conduct for business partners and the amfori BSCI Code of Conduct as part of the contracts with suppliers and service providers include requirements on respecting working conditions and human rights. • We require social responsibility audits and corrective actions where necessary from our direct suppliers in risk countries.
Child labour and forced labour
Potential negative | Upstream | Infringements of labour rights affecting value chain workers cause suffering for the affected workers and their families. | • The K Code of Conduct for business partners and the amfori BSCI Code of Conduct as part of the contracts with suppliers and service providers include a ban on child labour and forced labour. • We require social responsibility audits and corrective actions where necessary from our direct suppliers in risk countries.

Material risks

Time horizon | Description | Management
Short-term | A breach of the supplier agreement between the supplier and Kesko and conduct that violates the K Code of Conduct may affect Kesko’s reputation and lead to disruptions in business operations if the business relationship with the supplier has to be terminated. | • We require social responsibility audits and corrective actions where necessary from our direct suppliers in risk countries.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.
Material impacts, risks and opportunities and their interaction with
strategy and business model
Ensuring the sustainability of the value chain is a key part of Kesko’s strategy, where
sustainability is identified as a material competitive advantage. Kesko’s value chains are
extensive, and sustainable sourcing processes are an integral part of Kesko’s sustainability
work.
Kesko has identified potential negative impacts especially in the upstream value chain, i.e.
the workers of suppliers and service providers. Due to Kesko’s business model and extensive
product range, products sold by Kesko are supplied from countries where value chain
workers may face negative impacts. The potential negative impacts particularly affect the
workers of suppliers in countries where the risks for human rights violations are the highest.
We apply the amfori risk country classification for evaluating the risks in countries of origin,
which is based on the Worldwide Governance Indicators provided by the World Bank. The

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risk of inadequate working conditions is particularly related to the workers of Kesko’s
suppliers who participate in the manufacture or primary production of goods in these
countries. The workers of Kesko’s risk country suppliers are also face the highest risk of child
labour or forced labour.
In Kesko’s downstream value chain, a key group of workers is the K-retailers’ personnel, but
no material risks related to working conditions were identified for this group.
Policies related to value chain workers
Kesko’s principles on human rights issues and working conditions in supply chains are
defined in Kesko’s sustainability policy. Kesko pays special attention to human rights issues
and working conditions in supply chains in countries where the risks of human rights
violations are the highest. In assessing our suppliers located in risk countries, we use
international social responsibility assessment systems. Our policy is to collaborate only with
risk country suppliers that are included in the scope of social responsibility audits. Division
Presidents are responsible for the execution of the policy and supplier selections. The
implementation of the principles of the sustainability policy is the responsibility of the
Executive Vice President, Legal and Sustainability of Kesko Group.
Kesko has published a statement of commitment on human rights and an impact assessment
in compliance with the UN Guiding Principles on Business and Human Rights. Kesko respects
all internationally recognised human rights and is committed to several international
declarations and conventions.
Kesko requires its suppliers and service providers to commit to the requirements outlined in
the K Code of Conduct for business partners. Suppliers and service providers must respect
all internationally recognised human rights principles, including the UN Universal Declaration
of Human Rights and the UN Convention on the Rights of the Child, the OECD Guidelines
for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible
Business Conduct, the ILO Declaration on Fundamental Principles and Rights at Work, and
the UN Guiding Principles on Business and Human Rights.
The K Code of Conduct for business partners commits business partners to comply with
requirements related to working conditions, such as responsible recruitment, proper working
conditions, decent working hours, fair remuneration, freedom of association and collective
bargaining, and occupational health and safety. Business partners must not use forced labour
in any form, including all types of involuntary work and human trafficking. Business partners
must abstain from directly or indirectly employing children below the legal minimum age for
employment.
Our business partners must ensure that their subcontractors, suppliers and service providers
follow principles and standards similar to those set out in the K Code of Conduct for business
partners.
Kesko is a member of amfori, an association promoting sustainable trade, and takes part in
amfori BSCI (Business Social Compliance Initiative). In addition to Kesko’s own K Code of
Conduct for business partners, contracts with suppliers and service providers contain
contractual clauses concerning the amfori BSCI Code of Conduct. Through the amfori BSCI
Code of Conduct, suppliers and service providers commit to ensuring respect for human
rights in their supply chains in accordance with internationally recognised principles. The
Code of Conduct includes requirements relating to working conditions and the prohibition of
child labour, forced labour and human trafficking.
Kesko guides the procurement of products containing raw materials identified as critical from
a social responsibility perspective with sustainability guidelines. We have identified human
rights challenges particularly related to the production of cocoa, coffee, tea, palm oil, soy,
and cotton. These guidelines direct the procurement of raw materials for Kesko’s private
label products, mainly produced in accordance with internationally recognised certification
systems. The certification standards include criteria for respecting workers’ working
conditions and human rights.
Engagement with value chain workers
Processes for engaging with value chain workers about impacts
Kesko recognises that, especially in global value chains, cooperation between different
operators is needed to prevent material negative impacts. We engage about the impacts on
value chain workers primarily through multi-stakeholder initiatives. Currently, there is no
engagement with value chain workers that would allow their perspectives to be taken into
account in decisions or activities aimed at managing the impacts on value chain workers. Due

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to the large number of workers in Kesko’s value chain, enabling such engagement is for now
not considered realistic.
We engage indirectly with the workers of our direct suppliers in risk countries through social
responsibility audits conducted by third parties. A direct supplier in a risk country refers to a
supplier whose products manufactured in a risk country are imported directly by Kesko from
those risk countries. In the assessment of social responsibility of our direct risk country
suppliers, we favour primarily amfori BSCI audits, which are based on the amfori BSCI Code
of Conduct. We accept other social responsibility assessment systems if their criteria
correspond to those of amfori BSCI auditing and if the audit is conducted by an independent
party. Audits provide us with information on workers’ working conditions, including the
safety of working conditions in production, the wages and working hours of workers and their
rights of freedom of association and collective bargaining. Interviews with workers are a key
part of amfori BSCI, SMETA and Fairtrade audits, for example.
Processes to remediate negative impacts and channels for value
chain workers to raise concerns
Corrective actions and follow-up for identified issues are determined on a case-by-case basis
based on the audit report. When issues related to value chain workers arise, the
sustainability unit and purchasing personnel of the responsible division address the issues
and corrective actions as needed in cooperation. Situations are discussed with the supplier,
and the aim is to get the supplier to commit to corrective actions.
Serious violations of value chain workers’ human rights and working conditions are handled
in collaboration with Kesko Group’s sustainability unit. Kesko does not terminate
cooperation with a supplier that undertakes to resolve the identified issues. The effectiveness
of corrective actions is assessed through follow-up audits, for example. The final decision on
whether to continue the cooperation lies with the management of the purchasing unit.
Kesko is a member of the Centre for Child Rights and Business, an organisation promoting
children’s rights. Kesko receives up-to-date information on child labour and its prevention at
the organisation’s regular working group meetings. If the use of child labour is detected in
Kesko’s value chain, the organisation’s remediation model is available.
In accordance with the K Code of Conduct for business partners, Kesko’s partners must
implement mechanisms to receive, address and respond to complaints or concerns that
relate to potential non-compliance with the K Code of Conduct for business partners. The K
Code of Conduct for business partners provides information about K Group’s SpeakUp
reporting channel that is open to all and allows workers in the value chain to report any
concerns. The SpeakUp channel is described in more detail in section G1 Business Conduct,
Protection of whistleblowers.
Actions related to value chain workers
In accordance with Kesko's policy, 100% of the factories of direct suppliers in risk countries
must undergo a social responsibility audit. These purchases from direct suppliers in risk
countries accounted for 0.9% of Kesko’s purchases of goods in 2024.
In 2024, a total of 705 factories of direct suppliers in risk countries had a valid social
responsibility audit, resulting in an audit coverage of 90.7% of all factories of direct risk
country suppliers. The most common audit systems were amfori BSCI and SMETA. Missing
audits include situations where an audit was not valid or the audit process was incomplete or
delayed at the time of purchasing, or necessary information regarding the audit was not
received. In some cases, it has been possible to continue purchasing on the basis of an
exemption or while the audit process has been ongoing.
Kesko is taking part in the International Accord for Health and Safety in the Textile and
Garment Industry, which promotes occupational health and safety at garment and textile
factories in Bangladesh. We require the factories in Bangladesh that manufacture clothing
and home textiles for the grocery trade division’s own brands to be included in the
International Accord process.
The majority of the deficiencies in amfori BSCI audits were related to compliance with
working time regulations and to social management systems at factories. The amfori BSCI
audit process includes a Zero Tolerance Protocol, which is followed when an auditor observes
a particularly critical issue during the audit. In 2024, Kesko supported one of its suppliers in
the remediation of an incident related to occupational safety measures that was detected at a
production facility in autumn 2023. Corrective actions are assessed through audits. The
production facility was last audited in spring 2024 and will be audited again in spring 2025.

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In 2024, we terminated cooperation with two factories because consensus could not be
reached with the factories regarding necessary corrective actions.
Kesko participated in a pilot project initiated in 2024 by Fairtrade Finland, aimed at
addressing human rights challenges in the wild berry picking industry in Finland, together
with companies representing the entire supply chain. The core focus of the project was on
the concerns related to the working conditions, earnings and recruitment costs of the foreign
wild berry pickers who came to Finland. In the pilot, a new operating model and Fairtrade
certification criteria were created for the wild berry industry in Finland. Kesko also organised
training sessions on the requirements of the K Code of Conduct for companies in the wild
berry industry.
The material negative impacts on workers in Kesko’s value chain are related to individual
incidents. During the reporting period, no verified severe human rights incidents were
reported to Kesko from the upstream or downstream value chain, but Kesko is aware of one
ongoing legal case within its value chain.
Kesko’s suppliers in risk countries have the opportunity to participate in training sessions on
working conditions and human rights organised by Kesko’s partners. During 2024, 62 of
Kesko’s suppliers participated in training provided by amfori on topics such as fair
remuneration and working hours, zero tolerance for violence and harassment, and
remediation.
Kesko regularly organises responsible purchasing training for its purchasing organisations. In
2024, human rights in global supply chains and social responsibility audits were covered in
training for Kespro’s purchasing organisation and in the building and technical trade as part
of the training in commerce.

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S4 CONSUMERS AND END-USERS
Material impacts, risks and opportunities
Impacts related to consumers and end-users

Sub-topics | Nature of impact | Value chain | Description | Management
Health and safety
Enabling healthy choices | Potential positive | Downstream | Kesko has the opportunity to influence the health of consumers and end-users by offering healthier products that contain less salt, sugar or saturated fat. | • Reducing the amount of salt, sugar and fat in private label food products by reformulating the nutritional content of products.
Product safety | Potential negative | Downstream | Deficiencies in the safety of the products sold by Kesko can have significant negative impacts on the health and safety of consumers and end-users. | • Documented own-control plans for food safety management. • Safety and quality systems.
Privacy
Data protection | Potential negative | Downstream | Kesko processes large amounts of data related to consumers’ personal data in its operations. Deficiencies in Kesko’s data protection principles and personal data processing procedures can expose consumers to misuse of their personal data. | • The data protection compliance programme ensures that competence and awareness of data protection guidelines in relation to protection of personal data remain at a high level.

Material risks

Sub-topics | Time horizon | Description | Management
Health and safety
Product safety | Short-term | The realisation of product safety risk may cause reputational damage and may result in liability for damages for Kesko. | • Documented own-control plans for food safety management. • Safety and quality systems. • Risk assessments and continuous improvement of processes.
Privacy
Data protection | Short-term | The realisation of data protection risk may cause reputational damage and may result in liability for damages for Kesko. | • Risk assessments are conducted at the planning stage of personal data processing. • Data protection risk management conducted as part of the annual risk assessment process.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.

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Material impacts, risks and opportunities and their interaction with
strategy and business model
The quality and safety of the products offered to consumers and end-users are a key part of
Kesko’s strategy, where the trusted K-brand and quality in all operations are material
competitive advantages. Product safety, correct product labelling and instructions for use,
and the protection of the privacy of consumers shopping at K Group (Kesko and chain
stores) retail stores or online stores are a material part of the implementation of these
strategic priorities and cornerstones of day-to-day operations.
Kesko sells products either directly to consumers or to retailers who sell the products to
consumers. Kesko’s broad product range includes products that may have negative impacts
on the health of consumers and end-users. The sale of these products is strictly regulated
and subject to the laws governing their sale. Products that are harmful to health display
labelling with health warnings and special care is taken in the sale of these products,
according to the principles of sales restrictions and own control.
Accurate product information is an essential part of a product. In food products, labelling on
the allergens contained in the products, is essential for consumers or end-users when they
are considering the suitability of the product. Instructions for the use of products such as
chemicals and electrical appliances, and information on the suitability of the product for use
in different conditions, are also essential information for consumers and end-users in relation
to the use of products.
Consumers belonging to the K Group’s (Kesko and the chain stores) K-Plussa customer
loyalty programme have been identified as a significant group of persons whose data are
collected and used primarily for the provision of services.
Kesko protects the data of its customers, personnel and stakeholders and ensures that the
data protection rights of individuals are fulfilled when data is processed. Kesko’s data
protection instructions and methods are based on the company’s data protection policy
approved by the Kesko Board of Directors. Personal data processing is planned in advance,
ensuring that the processing is lawful. Kesko processes the personal data only to the extent
that it is necessary for the purpose of use, and only for as long as it is necessary and justified
for the purpose of use.
Due to Kesko’s business model, the group of consumers and end-users involved in Kesko’s
operations is extensive. Kesko has not identified specific groups of consumers and end-users
who would be particularly affected by negative impacts. The potential impacts would equally
affect the entire group of consumers and end-users.
Potential negative impacts on consumers and end-users were identified in relation to product
safety and data protection. In each case, the potential negative impacts are individual
incidents in nature.
The potential positive impacts on consumers and end-users relate to Kesko’s private label
food products and the healthiness of these products’ nutritional content. Kesko operates in
the grocery trade in Finland, so the impact is limited to Kesko’s grocery trade customers in
Finland.
Channels for engaging with consumers and end-users
Kesko has numerous channels for engaging with consumers. In Finland, Kesko’s key channel
for engaging with consumers is the K-Kylä customer community, which is used by all three
divisions. The aim of the K-Kylä customer community is to increase customer understanding
and develop business in a customer-oriented way. Through the K-Kylä customer community,
Kesko can communicate with members of the customer community through surveys or
recruit members to participate in interviews or user testing. Feedback is also actively
collected from consumers through several other channels.
Kesko has communication channels through which consumers or end-users can
communicate with Kesko. All Kesko’s business areas have websites through which consumer
customers can give feedback, report problems or submit a product complaint. Customers
can also contact Kesko’s customer service by telephone. Feedback received by customer
service is recorded in the customer service system, and the progress made in and resolution
of the feedback is recorded in the system. Feedback and product complaints are monitored,
and multiple instances of feedback received on the same issue within a short period of time
lead to further investigation and possibly corrective measures. The president of each division
holds senior operational responsibility for the communication channels and the functioning
of these channels.

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In 2024, the grocery trade’s Consumer Service Unit received a total of some 25,600
instances of consumer feedback, of which a total of some 18,500 were product complaints.
In the building and technical trade in K-Rauta, the total number of complaints was some
39,400, of which a total of some 11,200 were product complaints.
Consumers and end-users can report suspected malpractice through the SpeakUp channel.
The SpeakUp channel is described in more detail in section G1 Business Conduct of the
sustainability statement. However, SpeakUp is not a communication channel specifically
targeted at consumers and end-users, although it is open to consumers. We do not
separately assess consumers’ and end-users’ trust in the SpeakUp channel.
Making healthy choices easier for consumers and end-
users

|  |  | Target
Target | Unit | 2024 | 2025
Decrease the amount of salt in private label products | kg | 15,353 | 50,000
Decrease the amount of sugar in private label products | kg | 97,171 | 200,000
Decrease the amount of saturated fat in private label products | kg | 32,347 | 50,000

As a retail sector operator, Kesko has opportunities to make it easier for consumer to make
food choices that promote their wellbeing. To support consumers in making healthier
choices, Kesko is committed to reformulating the nutritional content of its private label
products by reducing the amount of salt, sugar and saturated fat. The reformulation of
nutritional content, especially in everyday staples, reduces consumers’ intake of salt, sugar
and saturated fat. Kesko has set a target of reducing the amount of added salt by 50,000 kg,
the amount of added sugar by 200,000 kg and the amount of saturated fat by 50,000 kg by
the end of 2025 from the 2021 baseline by reformulating the nutritional content its products.
The nutritional content of a total of 89 private label products was reformulated by the end of
2024 from the 2021 baseline. The reformulation of nutritional contents has achieved a total
reduction of 15,353 kg in salt, 97,171 kg in sugar and 32,347 kg in saturated fat compared to
the 2021 baseline. These amounts represent 31% of the target to reduce salt, 49% of the
target to reduce sugar and 65% of the target to reduce saturated fat by the end of 2025.
During 2024, the nutritional content of a total of 42 products was reformulated, which
resulted in a total reduction of 7,535 kg in salt, 19,833 kg in sugar and 4,174 kg in
saturated fat.
The realisation of the target is monitored by comparing the changed nutrient contents with
the baseline, i.e. how much the amounts of salt, sugar and saturated fat have been reduced in
the nutritional contents of the products relative to the baseline volume.
Product safety
Policies related to product safety
At Kesko, each division is responsible for monitoring product safety and product quality and
taking the necessary measures.
Grocery trade
In the grocery trade, quality assurance is based on own control throughout the chain. Each
stage, such as purchasing, storage, transport, grocery stores and cash-and-carry outlets, has
its own documented own control plan. The own control plans contain descriptions of the
measures to manage food safety at different stages of the food chain. In production, the own
control plans are based on HACCP (Hazard Analysis and Critical Control Points) and on the
identification of food safety hazards. The own control plan for purchasing covers all food
products in Kesko’s range. Kesko requires the manufacturing plants of suppliers of private
label products to have a valid certified product safety system approved by Kesko or that
Kesko has conducted an audit of the manufacturing plant.
K-Logistics, which is responsible for transportation and warehousing for K-food stores and
Kespro, and of Kesko’s subsidiaries Reinin Liha and Kalatukku E. Eriksson, have a certified
food safety system (FSSC 22000). The food safety system focuses on the assessment of food
safety hazards and on ensuring practices to prevent these hazards. The system is based on
the idea of continuous improvement. The systems also require the ability to respond to
various types of exceptional situations.
The product quality managers of the grocery trade’s Quality and Product Development Unit
monitor the product safety and quality of private label products and own imports. Product
quality managers take samples of products during the product development phase before

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they are launched on the market. Samples of products on the market are taken according to
an annual plan based on a product-specific risk assessment and, if necessary, based on
customer feedback. Samples are tested in the Quality and Product Development Unit’s own
ISO 17025 accredited laboratory (T251) and product development kitchen and, if necessary,
in an accredited outsourced laboratory.
Building and technical trade
The quality assurance of the building and technical trade’s private label and own import
products is conducted by the building and technical trade’s quality manager in cooperation
with the product managers, the purchasing department and the logistics centres. There are
product standards for most of the products that set the required level of quality assurance
for the product and any testing and approval requirements. The requirements for private
label products are specified separately in the purchasing contract.
Onninen’s units and the B2B sales unit in building and home improvement trade in Finland, as
well as Kesko AB in Sweden, have a certified quality management system (ISO 9001) in use.
The system requires the existence of quality assurance measures, response to various
anomalies and continuous improvement of performance.
Car trade
In the car trade, Kesko is an importer of Volkswagen, Audi, SEAT, CUPRA, Porsche and
Bentley passenger cars and Volkswagen commercial vehicles. It is Kesko’s responsibility to
document any safety concerns raised by consumers and report them to the manufacturer.
Recall campaigns are the responsibility of the manufacturer, who will provide information on
the content of the campaign and the cars targeted by the campaign. Kesko is responsible for
implementing the campaign in its own market area.
There is an evaluation process for receiving used cars and inspecting the condition of the
cars, where the condition of the car is inspected and necessary repairs are identified before
the car is resold. In addition, comprehensive data on the car is collected for resale purposes.
Actions related to product safety
The grocery trade’s Quality and Product Development Unit decides on the recall of private
label and is responsible for providing information on the matter internally at Kesko, to K-food
stores, Kespro’s B2B customers, consumers and the authorities. In the case of products other
than private label products, the supplier or importer of the product is responsible for the
product safety of its own products and makes the decision on whether to recall products.
Kesko’s Quality and Product Development Unit is responsible for communicating recalls
based on information received from the supplier.
In 2024, 170 product recalls were made in the grocery trade. Of these, 34 were private label
or own import products. In other cases, we assisted the product manufacturers in the
product recall. If a defect or error in a product could have health impacts, a public recall is
carried out. In 2024, this happened three times for our private label products.
In the building and technical trade, quality managers are responsible, together with the
product manager, for the recall of private label products and related measures. Information is
provided internally at Kesko, to K-Rauta stores, to Onninen, and to customers and
authorities.
In the building and technical trade in Finland, there were no public product recalls of private
label or own import products that would have required a product recall from the customer in
2024. During 2024, one product withdrawal was made, where a product is withdrawn from
sales channels.
In 2024, a total of 22 recall campaigns were initiated for the brands represented by K-Auto.
During 2024, we also increased our used car dealers’ competence in assessing the condition
of used cars.
Data protection
Policies related to data protection
Kesko protects the data of its customers, personnel and stakeholders and ensures that the
data protection rights of individuals are fulfilled. The data protection and information security
policies have been approved by Kesko’s Board of Directors and cover the Group’s operations
in all operating countries. The data protection policy determines principles, procedures and
responsibilities to ensure the lawful processing of personal data and a high level of data
protection. Ensuring data protection is part of Kesko’s compliance function, risk
management and the K Code of Conduct.

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The management of data protection risks is part of Kesko’s risk management process. Risk
assessments are conducted at the planning stage of personal data processing and as part of
the annual risk assessment. Data Protection Impact Assessments (DPIAs) are carried out in
situations where this is required by regulation and guidance from the authorities. The
specification of technical and organisational management tools for data protection is based
on the results of risk assessments.
The processing of personal data is lawful, reasonable and transparent, and personal data is
processed for a specific purpose in accordance with a legal basis laid down by law. Kesko
processes data only to the extent that it is necessary for the purpose of use, and only for as
long as it is necessary for the purpose of use.
The implementation of data protection is ensured by documenting personal data processing
practices and by issuing the related guidelines. Sufficient data protection competence is
ensured through training and communication.
Kesko selects as its contractual partners only those personal data processors who adhere to
good personal data processing practices through appropriate technical and organisational
measures, comply with the requirements of the GDPR, and are able to ensure the realisation
of the data subject's rights. Kesko prepares written agreements with personal data
processing partners in accordance with the law.
Processes for engaging with consumers and end-users on data
protection topics
Kesko has processes and channels in place that enable communication with customers on
issues related to data protection. In Finland, Kesko has a public data protection portal on its
website, which contains information and guidelines on data protection. Individuals can make
data protection requests regarding their personal data through the data protection portal or
by contacting register-specific contact points or customer service channels. Questions and
requests raised will be answered without undue delay.
Kesko ensures that the data subjects’ rights are implemented in accordance with the GDPR
by informing data subjects about the processing of data and by determining procedures and
guidelines for situations where data subjects wish to exercise their rights to familiarise
themselves with the information collected, or request the rectification or erasure of their
personal data. Kesko aims to ensure the accuracy of the data used, and the data is updated
from the person themselves or from reliable sources.
Data subjects can contact the Data Protection Officer regarding any matters related to the
processing of their personal data and the exercise of their rights under the data protection
regulation. The Data Protection Officer ensures that the data subject receives a response to
their inquiry.
Kesko documents all information security breaches and reports them to the data protection
authorities if the controller believes that the incident poses a risk to the data subject. If the
risk of malpractice or damage is deemed to be high, Kesko also informs without undue delay
the person whose personal data protection has been jeopardised about the information
security breach and provides instructions on what to do in the situation.
Actions related to data protection
Kesko Corporation and its subsidiaries as data controllers ensure and monitor the
implementation of data protection in their own operations. Data protection requests
submitted by data subjects are processed by the business unit that owns the respective
register. The Group-level data protection organisation provides support, as necessary. In
addition, Kesko’s Legal Affairs unit has persons focusing on data protection matters as part
of the Governance, Compliance & Ethics function.
Ensuring data protection in operations
Kesko’s data protection compliance programme ensures that competence and awareness of
data protection guidelines remain at a high level.
The guidelines consist of a Group data protection manual and supplementary country-
specific instructions. Kesko’s data protection guidelines concern all employees and include
key rules, operating instructions and processes for implementing data protection and
identifying and processing incidents and risks.
Regular data protection risk assessment provides guidelines for the annual data protection
plan and data protection programme. Kesko also carries out internal and commissions
external data protection audits, when there are changes in business operations and, on a
case-by-case basis, in connection with business acquisitions.

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In 2024, Kesko processed in Finland 875 data protection requests submitted through its data
protection portal. Requests were also processed in other channels.
Kesko Group detected and investigated a total of 347 information security breaches in its
operations in Finland in 2024. Of these, 63 were also reported to the office of the Data
Protection Ombudsman. A total of 6 information security breaches were detected in other
operating countries. Of these, 3 were reported to the local competent supervisory
authorities. In individual cases, the affected data subject was also notified of the information
security breach.
Training and communication
The onboarding programme and continuous training for each employee handling personal
data include achieving and maintaining the level of data protection expertise required for
their role.
Up-to-date instructions concerning data protection are easily available to all employees.
Active communications, information bulletins and continuous training ensure a high level of
data protection competence.
Targeted training events complement the regular training activities. During the year, a total
of 24 Data Protection Interest Group events were organised for six target groups. The events
covered the latest data protection application practices, instructions issued by the
authorities, amendments to legislation and best practices.

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GOVERNANCE
G1 BUSINESS CONDUCT
Material impacts, risks and opportunities
I mpacts on business conduct

Nature of impact | Value chain | Description | Management
Corporate culture
Potential positive | Own operations, value chain | The K Code of Conduct supports the principles of ethical corporate culture. Kesko has two versions of the K Code of Conduct: a K Code of Conduct that covers the entire K Group and a separate K Code of Conduct for business partners. Both support the principles of an ethical corporate culture throughout the value chain. | Corporate culture is strengthened by training and communication, and effective investigation of potential cases. Tone from the top – corporate culture is strongly shaped by participation of management and leading by example.
Whistleblower protection
Potential positive | Own operations, value chain | Kesko has a confidential SpeakUp channel that is open to personnel, customers, suppliers and other stakeholders. Kesko has anti-harassment and non-discrimination policies in place which, in line with the absolute prohibition of retaliation, ensure that the reporting of incidents or suspected incidents does not adversely affect the reporter or their employment relationship. | Kesko communicates on the SpeakUp channel to ensure people are aware of the channel and the principles of whistleblower protection, thus encouraging people to report concerns. Reports are investigated promptly and impartially, and it is ensured that the prohibition of retaliation is upheld in practice.
Corruption and bribery
Potential negative | Own operations, upstream | Potential cases of corruption and bribery have a negative impact on society and undermine trust throughout the value chain. Kesko has a zero-tolerance approach to corruption and bribery. Prevention of corruption and bribery is an integral part of the K Code of Conduct and contributes to creating a more ethical value chain. | Communication and training is provided to ensure that personnel know what to do and how to identify cases of corruption and bribery and report them to the right parties.
Relationships with suppliers and service providers
Potential positive | Upstream | Kesko‘s requirements for suppliers and service providers, such as commitment to the K Code of Conduct for business partners, promote an ethical and sustainable value chain. | The K Code of Conduct for business partners and other Kesko requirements are incorporated into suppliers’ and service providers' contracts. Trainings and information events are organised for suppliers and service providers.

Material risks

Time horizon | Description | Management
Short-term | Increasing sustainability regulation may lead to changes in the business model and require investments only to meet legislative requirements. | Changes in regulation are monitored actively and the impact of changes on business is assessed proactively.

The process for identifying and assessing impacts, risks, and opportunities is described in the section of the sustainability statement titled General disclosures, Identification and assessment of
material impacts, risks and opportunities.

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Targets related to corporate culture

|  |  | Target
Target | Unit | 2024 | 2030
Employee commitment to K Code of Conduct | % | 85% | 100%

Kesko has set target to strengthen employee commitment to the K Code of Conduct and
increase awareness of it. The target is to achieve a 100% annual confirmation rate by 2030.
Corporate culture and business conduct policies
Ethical business conduct and compliance in Kesko Group is ensured by complying with
legislation and with the K Compliance operating model and the K Code of Conduct both of
which approved by Kesko’s Board of Directors. In addition, Kesko is committed to complying
with the amfori BSCI Code of Conduct, the OECD Guidelines for Multinational Enterprises
and the OECD Due Diligence Guidance for Responsible Business. Kesko‘s operations are
also guided by the UN’s Guiding Principles on Business and Human Rights, Global Compact
initiative and Sustainable Development Goals (SDGs).
Putting the K Compliance operating model into practice is supported by the K Compliance
programmes approved by Kesko’s President and CEO. In 2024, Kesko’s K Compliance
programmes covered data protection, competition law, trade sanctions and export control,
as well as prevention of corruption and briber y. The Governance, Compliance & Ethics
function at Kesko leads actions in accordance with the K Compliance operating model and
reports on its activities to Kesko’s President and CEO and the Audit Committee of the Board
of Directors.
The K Code of Conduct that covers the entire personnel and Kesko’s business partners
serves as a basis for the K Compliance operating model. The updated K Code of Conduct
entered into force on 1 March 2024. The updated K Code of Conduct meets better the
requirements of increasing sustainability legislation and stricter interpretations on bribery
and hospitality, and takes into account the conditions set by Kesko‘s business. T he Board of
Directors of Kesko approves the K Code of Conduct and any material changes to it. The
President and CEO is responsible for the implementation of the K Code of Conduct
throughout the organisation, ensuring that it is integrated into all areas of operation.
All members of Kesko’s personnel confirm their commitment to compliance with the K Code
of Conduct annually. The annual confirmation process also includes a discussion between
each employee and their manager on the application of the K Code of Conduct in practice.
The proportion of Kesko’s personnel who submitted the annual confirmation in 2024
was 85%.
The focus areas of ensuring compliant and ethical business conduct were the training of
personnel and performance of compliance audits in accordance with to the annual plan. In
2024, personnel completed training on the updated K Code of Conduct either online or as
classroom training. During 2024, 88% of the Group‘s employees completed the training.
Depending on their role, personnel are also required to complete other compliance-related
online training, such as competition law and data protection training.
The role of managers is emphasised in ensuring the compliance and ethics of Kesko’s
business operations in daily work. According to the K Code of Conduct, activities must be
transparent, and a culture of doing the right thing is emphasised. Suspected misconduct or
unethical behaviour should always be reported, primarily to one’s own manager or the
responsible unit. If this is not possible for some reason, any suspected misconduct can be
reported to K Group’s SpeakUp channel, which is a confidential reporting channel open to
everyone and which can be found through the Kesko.fi website. The channel also allows
anonymous reporting.
Protection of whistleblowers
SpeakUp is a confidential reporting channel for the whole K Group. The whistleblowing
channel helps to maintain the trust of employees, customers and stakeholders in Kesko‘s and
K Group‘s business operations. Through the channel, K Group’s employees and suppliers,
customers and other stakeholders can report their observations concerning Kesko Group, K
Group or Kesko Pension Fund regarding suspected misconduct or criminal offences or
activities that breach the K Group‘s K Code of Conduct.
Kesko surveys its employees‘ confidence in the SpeakUp channel an d its operations, as well
as in the reporting of grievances in general, with the K Voices personnel survey conducted
every other year. Maintaining the channel is an essential part of Kesko’s K Compliance
operating model and is the responsibility of the Governance, Compliance & Ethics function.
Kesko strictly complies with all applicable legislation, including in the investigation of reports

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and the protection of whistleblowers. Both national and European Union legislation on
whistleblower protection imposes an obligation on Kesko to protect persons who report
violations of European Union law and certain fields of national law to Kesko. As a general
rule, personal data related to individuals involved in SpeakUp investigations is processed only
when it is absolutely necessary for the investigation. In accordance with its Anti-
Discrimination and Anti-Harassment Principles Kesko is committed to protecting its
employees and other stakeholders who report suspected discrimination, harassment, abuse
or other prohibited conduct to Kesko, and to preventing any retaliation in relation to such
reports. Kesko prohibits any attempt to sanction or in any way disadvantage or harass
persons who express an intention to report or who have already reported suspected
misconduct. Kesko's principle of protecting whistleblowers applies to anyone who reports a
suspicion of wrongdoing in good faith, even if the concern later proves to be unfounded. All
employees who experience or witness retaliation or otherwise observe behaviour that
appears to be retaliatory should immediately report it to either the supervisor, the
Occupational Health and Safety Department, Human Resources or Kesko's Governance,
Compliance & Ethics function. They may also report their concerns through Kesko's
confidential SpeakUp channel. Kesko's Anti-Harassment and Anti-Discrimination Principles
also protect persons who participate in the investigation of reports, act as witnesses or
otherwise assist in the investigation, or make decisions or recommendations in connection
with investigations. A finding of retaliation or harassment may lead to disciplinary action,
such as termination of employment, liability for damages or legal sanctions. Kesko's anti-
discrimination principle also applies when the report does not fall within the scope of national
or European Union whistleblower protection legislation.
Kesko Group‘s Governance, Compliance & Ethics function is responsible for investigating
reports received through the channel. Other experts or authorities may be needed in the
investigation on a case-by-case basis. Those who regularly take part in investigating reports
receive training on how to perform the investigations. Information about the channel, its
functioning and reporters‘ rights can be found on the Group‘s internal intranet pages and on
Kesko.fi. The K Code of Conduct eLearning also includes a section on SpeakUp. An external
service provider is responsible for the technical implementation of the channel.
A total of 53 reports concerning Kesko were submitted through the SpeakUp channel in
2024. No incidents of serious misconduct were identified. Reports were submitted on
unethical behaviour, conflict of interest and harassment, for example. No misuse of the
reporting channel was observed.
Prevention of corruption and bribery
The prevention of corruption and bribery is one of the focus areas of Kesko’s compliance
operations. Kesko manages this work through the K Compliance programme, which also
includes regular risk assessments conducted throughout Kesko. The programme has
identified as specific risk areas in Kesko‘s operations property and store site operations,
procurement of goods and services, participation in public procurement, operations in new
geographical and business areas, relations with government officials, and mergers and
acquisitions. All those working with high-risk areas are required to complete the K Code of
Conduct eLearning, including the section on corruption and bribery. In 2024, 94% of Kesko's
white collar employees completed the K Code of Conduct eLearning, and this figure can be
considered comparable to the completion rate of employees in risk areas. Kesko’s K Code of
Conduct includes anti-corruption and anti-bribery guidelines, which were complemented by
more detailed anti-corruption and anti-bribery principles that entered into force in 2024.
Every new employee must also complete the K Code of Conduct eLearning, which includes a
comprehensive section on combatting corruption and bribery. In addition to the eLearning,
new employees receive training on the K Code of Conduct at Welcome to K Group events,
for example, where rules on gifts and hospitality, among other things, are covered. Members
of the Board of Directors of Kesko Corporation also complete this training.
The unified guidelines and training help to ensure that everyone at Kesko has the same
understanding of the anti-corruption and anti-bribery principles and practices that guide
daily work. The training also includes a section on Kesko‘s SpeakUp channel, with
information such as where to find the channel and how to use it.
Compliance with the anti-corruption and anti-bribery guidelines throughout Kesko‘s entire
operation chain requires knowing the partners and their commitment to the contract terms.
Kesko‘s business partners are expected to have an operating model that prevents corruption
and bribery. This is ensured in contracts with partners by requiring them to commit to the K
Code of Conduct for business partners or equivalent instructions, and by requiring suppliers
to commit to the amfori BSCI Code of Conduct. A violation of these may even lead to

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termination of the contractual relationship. Kesko may seek compensation from a business
partner for damages caused by the violation.
In 2024, Kesko did not become aware of any confirmed cases of corruption or bribery. As
with all SpeakUp cases, reports related to corruption and bribery are investigated
independently by Kesko‘s Governance, Compliance & Ethics function. SpeakUp cases are
reported regularly to Kesko‘s Audit Committee and, if required by the investigation, other
management. Kesko works with the authorities as required by law.
Management of relationships with suppliers
Kesko expects its business partners to act responsibly and commit to sustainable business
practices. Business partners must compl y with all applicable laws, regulations and
international standards relevant to their operations, as well as Kesko‘s K Code of Conduct for
business partners or their own corresponding principles. The K Code of Conduct is an
integral part of our contracts with suppliers and service providers. The K Code of Conduct
for business partners requires business partners to respect human rights, to provide a safe
and healthy working environment and working conditions, to commit to minimising negative
and maximising positive impacts on climate and nature, and to carry out ethical business
conduct. Ethical business practices cover the prevention of corruption and bribery,
guidelines on hospitality and gifts, the requirement to engage in fair, honest and transparent
competition, the respect of intellectual property rights and confidential information,
compliance with trade sanctions and export controls, and the management of personal data
legally and responsibly.
In 2024, a sustainability attachment was added to Kesko‘s supplier agreements in the
building and technical trade. The attachment contains Kesko‘s key objectives and measures
to promote sustainability in the value chain, as well as the related guidelines and
requirements for suppliers. The sustainability attachment includes topics related to climate,
biodiversity, environmental protection, social responsibility and conflict minerals, as well as
guidelines on chemicals. The attachment covers an increasing number of supplier
agreements as they are updated.
With the principles of the K Code of Conduct for business partners, we also bring similar
principles of our B2B customers into our supply chain. In turn, our business partners must
promote responsible business practices throughout their supply and value chains. Our
business partners must ensure that their subcontractors and suppliers and service providers
comply with principles and standards that are similar to those set out in the K Code of
Conduct for business partners. We expect our business partners to implement appropriate
due diligence processes to monitor and manage their subcontracting relationships.
When selecting its suppliers and service providers, Kesko takes into account criteria related
to social responsibility and the environment, for example by requiring suppliers and service
providers to commit to the K Code of Conduct or its own principles of a similar level and the
aforementioned sustainability attachment. Social responsibility in the value chain is central to
Kesko‘s relationships with suppliers and services providers, and our principle is to cooperate
only with suppliers from high-risk countries that are subject to social responsibility audits.
Social responsibility is described in more detail in S2 Workers in the value chain.
Kesko annually organises sustainability trainings and information events for its business
partners, both independently and in cooperation with its partners. Business partners are also
actively encouraged to provide training, workshops or resources to their subcontractors and
their suppliers and service providers, and to ensure that they understand and maintain these
principles.

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APPENDICES TO SUSTAINABILITY STATEMENT
Appendix A: ESRS Disclosure Requirements

ESRS 2 General disclosures | Page
BP-1 General basis for preparation of sustainability statements | 24
GOV-1 Disclosures in relation to specific circumstances | 33, 34
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | 33, 34
GOV-3 Integration of sustainability-related performance in incentive schemes | 35
GOV-4 Statement of due diligence | 35
GOV-5 Risk management and internal controls over sustainability reporting | 24
SBM-1 Strategy, business model and value chain | 30, 31
SBM-2 Interests and views of stakeholders | 32
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model | 27, 62, 73, 74, 78
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities | 27, 28, 29, 30
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement | 27, 87, 88
Environment | Page
E1 Climate change |
E1-1 Transition plan for climate change mitigation | 48, 49
E1-2 Policies related to climate change mitigation and adaptation | 48
E1-3 Actions and resources in relation to climate change policies | 48, 49, 50
E1-4 Targets related to climate change mitigation and adaptation | 47
E1-5 Energy consumption and mix | 50, 51
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions | 51, 52, 53, 54, 55
E5 Resource use and circular economy |
E5-1 Policies related to resource use and circular economy | 57
E5-2 Actions and resources related to resource use and circular economy | 57, 58, 59
E5-3 Targets related to resource use and circular economy | 56
E5-5 Resource outflows | 57, 58, 59, 60

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Social | Page
S1 Own workforce |
S1-1 Policies related to own workforce | 63, 66, 67, 69, 71
S1-2 Processes for engaging with own workers and workers’ representatives about impacts | 65
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns | 65, 66
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | 66, 67, 68, 69, 70, 71
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 62, 63
S1-6 Characteristics of the undertaking’s employees | 63, 64
S1-8 Collective bargaining coverage and social dialogue | 66, 67
S1-9 Diversity metrics | 70
S1-10 Adequate wages | 66
S1-11 Social protection | 66
S1-13 Training and skills development metrics | 71, 72
S1-14 Health and safety metrics | 69
S1-15 Work-life balance metrics | 67
S1-16 Compensation metrics (pay gap and total compensation) | 70
S1-17 Incidents, complaints and severe human rights impacts | 70
S2 Workers in the value chain |
S2-1 Policies related to value chain workers | 74
S2-2 Processes for engaging with value chain workers about impacts | 75
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns | 75
S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action | 75, 76
S4 Consumers and end-users |
S4-1 Policies related to consumers and end-users | 79, 80, 81
S4-2 Processes for engaging with consumers and end-users about impacts | 78, 79, 81
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | 78, 79, 81
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions | 80, 81, 82
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 79
Governance | Page
G1 Business conduct |
G1-1 Corporate culture and business conduct policies and corporate culture | 84
G1-2 Management of relationships with suppliers | 86
G1-3 Prevention and detection of corruption and bribery | 85, 86
G1-4 Confirmed incidents of corruption or bribery | 86

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Appendix B: List of datapoints in cross-cutting and topical standards that derive from other EU legislation

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) | Indicator number 13of Table #1 of Annex 1 |  | Commission Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 34
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 34
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 |  |  |  | Material | 35
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicators number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/245328Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II |  | Non-material |
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Non-material |
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Non-material |
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv |  |  | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Non-material |
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Material | 47
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book- Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 |  | Material | 47
ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 |  | Material | 47
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 |  |  |  | Material | 50
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 |  |  |  | Material | 50
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 |  |  |  | Material | 50

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Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1:Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) |  | Material | 51
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicators number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) |  | Material | 52
ESRS E1-7 GHG removals and carbon credits paragraph 56 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Non-material |
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 |  |  | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II |  | Phased-in |
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a), ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. |  |  | Phased-in |
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral |  |  | Phased-in |
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 |  |  | Delegated Regulation (EU) 2020/1818, Annex II |  | Phased-in |
ESRS E2-4 Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table 2 of Annex 1 |  |  |  | Non-material |

|  | 91

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS 2- IRO 1 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 |  |  |  | Non-material |
ESRS 2- IRO 1 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS 2- IRO 1 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 |  |  |  | Non-material |
ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 |  |  |  | Material | 59
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 |  |  |  | Material | 59, 60
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 of Table #1of Annex 1 |  |  |  | Material | 62
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex I |  |  |  | Material | 62
ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I |  |  |  | Material | 63, 84
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 63
ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I |  |  |  | Material | 63
ESRS S1-1 workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I |  |  |  | Material | 67, 68
ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I |  |  |  | Material | 65, 66
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 69
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I |  |  |  | Material | 69

|  | 92

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 70
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I |  |  |  | Material | 70
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I |  |  |  | Material | 70
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) |  | Non-material |
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex I |  |  |  | Material | 73, 74
ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 |  |  |  | Material | 74
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 |  |  |  | Material | 74
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Non-material |
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 74, 75, 76
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Material | 76
ESRS S3-1 Human rights policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Non-material |
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Non-material |
ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Non-material |
ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Material | 79, 80, 81

|  | 93

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Non-material |
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Non-material |
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 |  |  |  | Non-material |
ESRS G1-1 Protection of whistleblowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 |  |  |  | Material | 84, 85
ESRS G1-4 Fines for violation of anti-corruption and anti- bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II) |  | Material | 86
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 |  |  |  | Non-material |

|  | 94

FINANCIAL REVIEW

Consolidated financial statements (IFRS) ................. | 95
Consolidated income statement ................................... | 95
Consolidated statement of comprehensive income | 95
Consolidated statement of financial position .............. | 96
Consolidated statement of cash flows ......................... | 97
Consolidated statement of changes in equity ............. | 98
Notes to the consolidated financial statements .......... | 99
1. Accounting policies for the consolidated financial statements ................................................. | 99
1.1 Basic information about the Company ............... | 99
1.2 Basis of preparation ............................................. | 99
1.3 Critical accounting estimates and assumptions | 99
1.4 Critical judgements in applying accounting policies ........................................................................ | 100
1.5 Consolidation principles ..................................... | 100
1.6 Discontinued operations and non-current assets classified as held for sale and related liabilities ..................................................................... | 101
1.7 New IFRS standards and IFRIC interpretations and the impact of new and updated standards ...... | 102
2. Financial results .................................................... | 103
2.1 Revenue recognition ........................................... | 103
2.2 Segment information .......................................... | 103
2.3 Material and services .......................................... | 112
2.4 Other operating income ..................................... | 112
2.5 Operating expenses ............................................ | 112
2.6 Foreign exchange differences recognised in operating profit .......................................................... | 113

This report is a translation of the Finnish original.

2.7 Income tax ............................................................ | 113
2.8 Earnings per share .............................................. | 116
2.9 Additional details related to the statement of cash flows ................................................................... | 116
3. Capital employed ................................................. | 117
3.1 Acquisitions .......................................................... | 117
3.2 Property, plant and equipment .......................... | 120
3.3 Intangible assets .................................................. | 121
3.4 Leases .................................................................. | 125
3.5 Inventories ........................................................... | 127
3.6 Trade and other current receivables ................. | 128
3.7 Pension assets ..................................................... | 129
3.8 Shares in associates and joint ventures ............ | 133
3.9 Provisions ............................................................. | 134
4. Capital structure and financial risks ................. | 135
4.1 Capital management ........................................... | 135
4.2 Shareholders' equity ........................................... | 138
4.3 Financial risks ...................................................... | 139
4.4 Finance income and costs .................................. | 146
4.5 Financial assets and liabilities by category ....... | 147
4.6 Commitments and contingencies ...................... | 151
5. Other ..................................................................... | 152
5.1 Subsidiaries, associates, joint ventures and proportionately consolidated mutual real estate companies .................................................................. | 152
5.2 Related party transactions ................................. | 154

5.3 Share-based compensation ................................ | 156
5.4 Legal disputes and possible legal proceedings ............................................................... | 158
5.5 Events after the balance sheet date .................. | 158
Parent company's financial statements (FAS) .......... | 159
Signatures ....................................................................... | 175
Auditor's report ............................................................. | 176
Assurance report on the sustainability statement ... | 180
Auditor's ESEF assurance report ................................ | 183

|  | 95

CONSOLIDATED FINANCIAL STATEMENTS (IFRS)
Consolidated income statement

€ million | Note | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Net sales | 2.1 | 11,920.1 | 11,783.8
Materials and services | 2.3 | -10,184.1 | -10,035.0
Change in inventory |  | -21.6 | -72.0
Other operating income | 2.4 | 994.6 | 975.2
Employee benefit expense | 2.5 | -842.5 | -786.6
Depreciation, amortisation and impairment charges | 3.2 3.3 | -247.9 | -184.0
Depreciation and impairment charges for right-of-use assets | 3.4 | -375.5 | -353.2
Other operating expenses | 2.5 | -684.5 | -651.8
Share of result of joint ventures |  | 20.9 | 19.0
Operating profit |  | 579.5 | 695.4
Interest income and other finance income | 4.4 | 17.7 | 16.9
Interest expense and other finance costs | 4.4 | -49.5 | -26.3
Interest expense for lease liabilities | 4.4 | -78.6 | -73.4
Foreign exchange differences | 4.4 | -1.3 | -1.1
Total finance income and costs | 4.4 | -111.7 | -83.9
Share of result of associates |  | 3.8 | 2.1
Profit before tax |  | 471.5 | 613.5
Income tax | 2.7 | -92.0 | -118.0
Profit for the year |  | 379.6 | 495.6
Profit for the year attributable to |  |  |
Owners of the parent |  | 379.1 | 495.6
Non-controlling interests |  | 0.4 | -
Earnings per share for profit attributable to owners of the parent |  |  |
Basic and diluted, Group total, € | 2.8 | 0.95 | 1.25

Consolidated statement of comprehensive income

€ million | Note | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Profit for the year |  | 379.6 | 495.6
Items that will not be reclassified subsequently to profit or loss |  |  |
Actuarial gains and losses | 2.7 3.7 | 37.6 | -5.5
Items that may be reclassified subsequently to profit or loss |  |  |
Currency translation differences on foreign operations | 2.7 | -31.6 | -19.5
Share of other comprehensive income of associates and joint ventures | 2.7 | 0.5 | -1.8
Cash flow hedge revaluation | 2.7 | -7.7 | -31.0
Total comprehensive income for the year, net of tax |  | -1.2 | -57.9
Total comprehensive income for the year |  | 378.3 | 437.7
Comprehensive income for the year attributable to |  |  |
Owners of the parent |  | 377.9 | 437.7
Non-controlling interests |  | 0.4 | -

|  | 96

Consolidated statement of financial position

€ million | Note | 31 Dec. 2024 | 31 Dec. 2023
ASSETS |  |  |
Non-current assets |  |  |
Property, plant and equipment | 3.2 | 2,403.3 | 2,055.6
Goodwill | 3.3 | 643.0 | 663.7
Intangible assets | 3.3 | 234.2 | 211.4
Right-of-use assets | 3.4 | 1,867.7 | 1,816.9
Shares in associates and joint ventures | 3.8 5.1 | 239.7 | 232.8
Other investments | 4.3 4.5 | 14.8 | 14.0
Non-current receivables | 4.3 4.5 | 65.9 | 71.4
Deferred tax assets | 2.7 | 16.9 | 13.7
Pension assets | 3.7 | 127.5 | 79.6
Total non-current assets |  | 5,612.9 | 5,159.1
Current assets |  |  |
Inventories | 3.5 | 1,101.5 | 1,083.9
Interest-bearing receivables | 3.6 4.5 | 4.2 | 4.3
Trade receivables | 3.6 4.3 4.5 | 957.9 | 970.5
Income tax assets | 3.6 | 12.9 | 6.6
Other non-interest-bearing receivables | 3.6 4.5 | 287.1 | 302.6
Other financial assets | 4.3 4.5 | 15.0 | 15.4
Cash and cash equivalents | 4.5 | 473.1 | 211.9
Total current assets |  | 2,851.7 | 2,595.2
Non-current assets classified as held for sale |  | 6.6 | -
Total assets |  | 8,471.2 | 7,754.3

€ million | Note | 31 Dec. 2024 | 31 Dec. 2023
EQUITY AND LIABILITIES |  |  |
Share capital | 4.2 | 197.3 | 197.3
Share premium | 4.2 | 197.8 | 197.8
Other reserves | 4.2 | 266.8 | 266.9
Currency translation differences | 4.2 | -103.3 | -71.7
Revaluation reserve | 4.2 | -3.4 | 4.3
Treasury shares |  | -22.8 | -26.7
Retained earnings |  | 2,189.7 | 2,190.6
Equity |  | 2,722.1 | 2,758.4
Non-controlling interests |  | 12.9 | -
Total equity |  | 2,734.9 | 2,758.4
Non-current liabilities |  |  |
Interest-bearing non-current liabilities | 4.3 4.5 4.6 | 1,054.0 | 690.7
Lease liabilities | 4.5 4.6 | 1,628.8 | 1,647.2
Non-interest-bearing non-current liabilities | 4.3 4.5 | 42.8 | 24.5
Deferred tax liabilities | 2.7 | 76.3 | 70.9
Provisions | 3.9 | 6.3 | 6.9
Total non-current liabilities |  | 2,808.1 | 2,440.2
Current liabilities |  |  |
Current interest-bearing liabilities | 4.3 4.5 4.6 | 291.3 | 98.5
Lease liabilities | 4.5 4.6 | 422.2 | 350.6
Trade payables | 4.3 4.5 | 1,404.4 | 1,418.3
Other non-interest-bearing liabilities | 4.3 4.5 | 342.4 | 250.0
Income tax liabilities |  | 12.2 | 11.2
Accrued liabilities | 4.3 4.5 | 442.4 | 415.1
Provisions | 3.9 | 13.2 | 12.0
Total current liabilities |  | 2,928.1 | 2,555.7
Liabilities related to non-current assets classified as held for sale |  | 0.1 | -
Total liabilities |  | 5,736.3 | 4,995.9
Total equity and liabilities |  | 8,471.2 | 7,754.3

|  | 97

Consolidated statement of cash flows

€ million | Note | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Cash flows from operating activities |  |  |
Profit before tax |  | 471.5 | 613.5
Adjustments |  |  |
Depreciation according to plan |  | 207.4 | 184.0
Depreciation and impairment for right-of-use assets |  | 375.5 | 353.2
Finance income and costs |  | 33.1 | 10.5
Interest expense for lease liabilities |  | 78.6 | 73.4
Other adjustments | 2.9 | 22.2 | -10.8
|  | 716.9 | 610.3
Change in working capital |  |  |
Current non-interest-bearing receivables, increase (-)/decrease (+) |  | 43.8 | 69.3
Inventories, increase (-)/decrease (+) |  | 25.5 | 58.3
Current non-interest-bearing liabilities, increase (+)/ decrease (-) |  | -44.8 | -137.1
|  | 24.5 | -9.5
Interest paid and other finance costs |  | -45.6 | -24.9
Interest paid on lease liabilities |  | -78.6 | -73.4
Interest received |  | 16.9 | 15.0
Dividends and capital repayments received from associated companies and joint ventures |  | 22.3 | 24.4
Dividends received from others |  | 0.5 | 2.4
Income taxes paid |  | -120.2 | -108.3
Net cash flows from operating activities, total |  | 1,008.2 | 1,049.5

€ million | Note | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Cash flows from investing activities |  |  |
Payments for acquisition of subsidiary shares, net of cash acquired | 3.1 | -151.6 | -140.1
Payments for investments consolidated using the equity method |  | -0.1 | -
Payments for property, plant, equipment and intangible assets | 2.9 | -491.4 | -539.2
Proceeds from sale of subsidiaries and businesses, net cash deducted |  | - | 9.9
Proceeds from sale of property, plant, equipment and intangible assets |  | 45.0 | 24.8
Proceeds from sale of other investments |  | 0.0 | 0.1
Loan receivables and other financial assets, increase (-)/decrease (+) |  | 0.5 | 54.3
Net cash flows from investing activities, total |  | -597.5 | -590.2
Cash flows from financing activities |  |  |
Interest-bearing liabilities, increase (+)/decrease (-) | 4.1 | 534.0 | 283.4
Repayments for lease liabilities | 3.4 4.1 | -370.9 | -354.3
Interest-bearing receivables, increase (-)/ decrease (+) | 4.1 | 3.9 | 2.2
Dividends paid |  | -320.3 | -430.3
Other items |  | 3.5 | 6.8
Net cash flows from financing activities, total |  | -149.8 | -492.2
Change in cash and cash equivalents |  | 260.9 | -32.9
Cash and cash equivalents as at 1 January | 4.5 | 211.9 | 245.5
Currency translation difference adjustment and change in value |  | 0.3 | -0.7
Cash and cash equivalents as at 31 December | 4.5 | 473.1 | 211.9

|  | 98

Consolidated statement of changes in equity

€ million | Share capital | Reserves | Currency translation differences | Revaluation reserve | Treasury shares | Retained earnings | Non-controlling interests | Total
Balance as at 1 January 2024 | 197.3 | 464.7 | -71.7 | 4.3 | -26.7 | 2,190.6 | - | 2,758.4
Share-based payments |  |  |  |  | 3.9 |  |  | 3.9
Dividends |  |  |  |  |  | -405.9 |  | -405.9
Increase of non-controlling interests |  |  |  |  |  | -17.0 | 12.4 | -4.5
Other changes |  | -0.0 | - |  |  | 4.8 |  | 4.8
Transactions with owners, total |  | -0.0 | - |  | 3.9 | -418.1 | 12.4 | -401.8
Comprehensive income |  |  |  |  |  |  |  |
Profit for the period |  |  |  |  |  | 379.1 | 0.4 | 379.6
Actuarial gains and losses |  |  |  |  |  | 37.6 |  | 37.6
Currency translation differences on foreign operations |  |  | -31.6 |  |  | - | 0.0 | -31.6
Share of other comprehensive income of associates and joint ventures |  |  |  | - |  | 0.5 |  | 0.5
Cash flow hedge revaluation |  |  |  | -7.7 |  | - |  | -7.7
Total other comprehensive income for the period, net of tax |  |  | -31.6 | -7.7 |  | 38.1 | 0.0 | -1.2
Total comprehensive income for the period |  |  | -31.6 | -7.7 |  | 417.2 | 0.4 | 378.3
Balance as at 31 December 2024 | 197.3 | 464.7 | -103.3 | -3.4 | -22.8 | 2,189.7 | 12.9 | 2,734.9
Balance as at 1 January 2023 | 197.3 | 464.7 | -52.2 | 35.3 | -28.1 | 2,125.2 | - | 2,742.2
Share-based payments |  |  |  |  | 1.4 |  |  | 1.4
Dividends |  |  |  |  |  | -429.6 |  | -429.6
Other changes |  | -0.0 | -0.0 |  |  | 6.7 |  | 6.7
Transactions with owners, total |  | -0.0 | -0.0 |  | 1.4 | -422.8 | - | -421.5
Comprehensive income |  |  |  |  |  |  |  |
Profit for the period |  |  |  |  |  | 495.6 | - | 495.6
Actuarial gains and losses |  |  |  |  |  | -5.5 |  | -5.5
Currency translation differences on foreign operations |  |  | -19.5 |  |  | - | - | -19.5
Share of other comprehensive income of associates and joint ventures |  |  |  | - |  | -1.8 |  | -1.8
Cash flow hedge revaluation |  |  |  | -31.0 |  | - |  | -31.0
Total other comprehensive income for the period, net of tax |  |  | -19.5 | -31.0 |  | -7.3 | - | -57.9
Total comprehensive income for the period |  |  | -19.5 | -31.0 |  | 488.2 | - | 437.7
Balance as at 31 December 2023 | 197.3 | 464.7 | -71.7 | 4.3 | -26.7 | 2,190.6 | - | 2,758.4

Further information on share capital and reserves is disclosed in Note 4.2 and on share-award plans in Note 5.3. Deferred tax related to components of other comprehensive income is
presented in Note 2.7.

|  | 99

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES FOR THE CONSOLIDATED
FINANCIAL STATEMENTS
The notes to the consolidated financial statements have
been grouped into sections based on their subject. The
basis of preparation is described as part of this note, while
the accounting policies directly related to a specific note are
presented as part of the note in question. The notes contain
the relevant financial information as well as a description of
the accounting policies and key estimates and judgements
applied for the topics of the individual note.
1.1 Basic information about the Company
Kesko is a Finnish listed trading sector company. Kesko has
approximately 1,700 stores engaged in chain operations in
Finland, Sweden, Norway, Denmark, Estonia, Latvia,
Lithuania and Poland.
Kesko Group's reportable segments consist of its business
divisions, namely the grocery trade, the building and
technical trade, and the car trade.
The Group's parent company, Kesko Corporation, is a
Finnish public limited company constituted in accordance
with the laws of Finland. The Company's business ID is
0109862-8, it is domiciled in Helsinki, Finland and it's
registered address is PO Box 1, 00016 KESKO, Finland.
Copies of Kesko Corporation's financial statements and the
consolidated financial statements are available from Kesko
Corporation, visiting address Työpajankatu 12, Helsinki,
Finland and from the internet at www.kesko.fi/en.
These consolidated financial statements were authorised for
issue by the Board of Directors on 4 February 2025.
Kesko has issued an XHTML financial review complying
with the ESEF requirements on Kesko’s website. The Audit
firm Deloitte Oy has provided to company an independent
auditor’s reasonable assurance report in accordance with
ISAE 3000 (Revised) on Kesko’s ESEF Financial Statements.
1.2 Basis of preparation
Kesko's consolidated financial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS) approved for adoption by the
European Union, and they comply with the IAS and IFRS
standards and respective SIC and IFRIC Interpretations
effective on 31 December 2024. The International Reporting
Standards refer to standards and their interpretations
approved for adoption within the EU in accordance with the
procedure enacted in EU regulation (EC) 1606/2002,
included in the Finnish Accounting Act and regulations
based on it. The Group has applied new and amended
standards that became effective in the financial year that
began on 1 January 2024. The improvements and
amendments to existing standards did not have an impact
on the consolidated financial statements. Accounting
standards not yet effective have not been adopted
voluntarily for the consolidated financial statements. The
notes to the consolidated financial statements also include
compliance with Finnish accounting and corporate
legislation.
All amounts in the consolidated financial statements are in
millions of euros and based on original cost, with the
exception of items specified below, which have been
measured at fair value in compliance with the standards.
1.3 Critical accounting estimates and
assumptions
The preparation of consolidated financial statements in
conformity with international accounting standards requires
the use of certain estimates and assumptions about the
future that affect the reported amounts of assets and
liabilities, contingent liabilities, and income and expense.
The actual results may differ from these estimates and
assumptions.
The impact of climate risks has been assessed on the
Group’s business operations and the consolidated financial
statements. Climate change related risks on Kesko are
assessed based on selected climate scenarios. Kesko Group
has not identified any business operations subject to
material climate risks in terms of business continuity or
valuation of asset items. Kesko owns and manages via
leases a substantial number of properties in all its operating
countries. Individual asset items may be subject to risks of

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damage or investment needs due to, for example, extreme
weather phenomena.
The estimates and judgements made are continuously
evaluated, and they are based on historical experience and
other factors, including expectations of future events that
are believed to be reasonable under the circumstances.
The critical accounting estimates and assumptions used in
the preparation of consolidated financial statements are
further described in the corresponding notes.
• Income tax (Note 2.7)
• Acquisitions (Note 3.1)
• Intangible assets (Note 3.3)
• Leases (Note 3.4)
• Inventories (Note 3.5)
• Trade and other current receivables (Note 3.6)
• Pension assets (Note 3.7)
• Provisions (Note 3.9)
1.4 Critical judgements in applying
accounting policies
The Group's management uses its judgement in the
adoption and application of accounting policies in the
financial statements. The management has exercised its
judgement in the application of accounting policies in the
income statement with regard to the presentation of income
(Note 2.1), the existence of control over subsidiaries (Note
1.5), measuring receivables, determining provisions for
restructuring, and measuring assets and liabilities
recognised in the balance sheet based on lease agreements
(Note 3.4).
1.5 Consolidation principles
Subsidiaries
The consolidated financial statements combine the financial
statements of Kesko Corporation and subsidiaries
controlled by the Group. Control exists when the Group has
more than half of the voting rights of a subsidiary or
otherwise exercises control. An investor controls an
investee when it is exposed, or has rights, to variable
returns from its involvement with the investee and has the
ability to affect those returns through its power over the
investee. Acquired subsidiaries are consolidated from the
date on which the Group gains control until the date on
which control ceases. The existence of potential voting
rights has been considered when assessing the existence of
control in the case that the instruments entitling to potential
control are currently exercisable. Subsidiaries are listed in
Note 5.1.
Mutual shareholding is eliminated by using the acquisition
cost method. The cost of assets acquired is determined on
the basis of the fair value of the acquired assets as at the
acquisition date, the issued equity instruments and liabilities
resulting from or assumed on the date of the exchange
transaction. The identifiable assets, liabilities and
contingent liabilities acquired are measured at the fair value
at the acquisition date, gross of non-controlling interest.
Intragroup transactions, receivables and payables,
unrealised profits and internal distributions of profits are
eliminated when preparing the consolidated financial
statements. Unrealised losses are not eliminated if the loss
is due to the impairment of an asset. Non-controlling
interest in the profit for the period is disclosed in the
income statement and the amount of equity attributable to
the non-controlling interests is disclosed separately in
equity.
The Group accounts for its real estate company acquisitions
as acquisitions of assets.
Associates
Associates are companies over which the Group has
significant influence but not control. In Kesko Group,
significant influence accompanies a shareholding or
agreement of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the
equity method and are initially recognised at cost.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement. The cumulative post-
acquisition movements are adjusted against the carrying
amount of the investment. If the Group’s share of losses in
an associate equals or exceeds its interest in the associate,
the Group does not recognise further losses.
Unrealised gains on transactions between the Group and
the associates are eliminated to the extent of the Group’s
interest in the associates. Unrealised losses are also
eliminated, unless the transaction provides evidence of an
impairment of the asset transferred. Dividends received
from associates are deducted from the Group's result and
the cost of the shares. An investment in an associate
includes the goodwill generated by the acquisition.
Goodwill is not amortised.

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Joint agreements
Joint agreements are arrangements in which the sharing of
joint control has been contractually agreed between two or
more parties. Joint control exists only when decisions about
the relevant activities require the unanimous consent of the
parties sharing control. A joint venture is a joint agreement
whereby the parties that have joint control of the
agreement have rights to the net assets of the agreement.
Investments in joint ventures are accounted for using the
equity method, and on initial recognition, they are
recognised at cost.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement. The cumulative post-
acquisition movements are adjusted against the carrying
amount of the investment. If the Group’s share of losses in
a joint venture equals or exceeds its interest in the joint
venture, the Group does not recognise further losses.
Unrealised gains on transactions between the Group and
the joint ventures are eliminated to the extent of the
Group’s interests in the joint ventures. Unrealised losses are
also eliminated, unless the transaction provides evidence of
an impairment of the asset transferred. Dividends received
from joint ventures are deducted from the Group's result
and the cost of the shares. An investment in a joint venture
includes the goodwill generated by the acquisition.
Goodwill is not amortised.
Mutual real estate companies are consolidated as joint
operations on a line-by-line basis in proportion to
ownership. The Group's share of mutual real estate
companies' loans and reserves is accounted for separately
in the consolidation.
Associates and joint ventures and proportionately
consolidated mutual real estate companies are listed in
Note 5.1.
Foreign currency items
The consolidated financial statements are presented in
euros, which is both the functional currency of the
environment in which the Group’s parent operates and the
presentation currency. On initial recognition, the amounts
with respect to the result and financial position of the
Group companies located outside the euro zone are
recorded in the functional currency of each of their
operating environments.
Foreign currency transactions are recorded in euros by
applying the exchange rate at the date of the transaction.
Receivables and liabilities denominated in foreign currency
are translated into euros using the closing rate. Exchange
rate gains and losses on foreign currency transactions as
well as receivables and liabilities denominated in foreign
currency are recognised in the income statement, with the
exception of monetary items that form a part of a net
investment in a foreign operation and loans designated as
hedges for foreign net investments and regarded as
effective. These exchange differences are recognised in
equity and their changes are presented in other
comprehensive income. The exchange differences are
presented in the income statement on disposal of the
foreign operation or settlement of the hedges. The Group
has currently no loans designated as hedges for foreign net
investments. Foreign exchange gains and losses resulting
from operating activities are included in the respective
items above operating profit. Foreign exchange gains and
losses from foreign exchange forward contracts and options
used for hedging financial transactions, and from foreign
currency borrowings are included in finance income and
costs.
The income statements of the Group companies operating
outside the euro zone have been translated into euros at the
average rate of the financial year, and their balance sheets
at the closing rate. The foreign exchange difference
resulting from the use of different rates, the translation
differences arising from the elimination of the acquisition
cost of subsidiaries outside the euro zone, exchange
differences arising from monetary items that form a part of
a net investment in a foreign operation and the hedging
results of net investments are recognised in equity, and the
changes are presented in other comprehensive income. In
connection with the disposal of a subsidiary, translation
differences are recognised in the income statement as part
of the gains or losses on the disposal.
Goodwill arising on the acquisition of foreign operations
and the fair value adjustments of assets and liabilities made
upon their acquisition are treated as assets and liabilities of
these foreign operations and translated into euros at the
closing rate.
1.6 Discontinued operations and non-
current assets classified as held for sale and
related liabilities
Non-current assets (or a disposal group) are classified as
held for sale if their carrying amount will be recovered
principally through the disposal of the assets and the sale is
highly probable. If their carrying amount will be recovered
principally through their disposal rather than through their
continuing use, they are measured at the lower rate of the
carrying amount and fair value net of costs to sell.

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The comparative information in the income statement is
adjusted for operations classified as discontinued during the
latest financial period being reported. Consequently, the
result of discontinued operations is presented as a separate
line items also for the comparatives. The Group did not
have any discontinued operations in 2024 and 2023.
1.7 New IFRS standards and IFRIC
interpretations and the impact of new and
updated standards
New ‘IFRS 18 Presentation and Disclosure in
Financial Statements’
The new standard ‘IFRS 18 Presentation and Disclosure in
Financial Statements’ was published on 9 April 2024, and it
will be effective for financial reporting periods beginning on
or after 1 January 2027. Comparison period shall be
restated accordingly. The new standard includes
instructions especially in relation to the presentation of the
statement of profit or loss. The standard includes two
defined subtotals and one total which shall be presented in
the statement of profit or loss: the subtotals are ‘operating
profit’ and ‘profit before financing and income taxes’ and
the total is ‘profit for the year’. According to the standard,
income and expenses included in the statement of profit or
loss shall be classified under five categories: operating,
investing, financing, income tax and discontinued
operations. The standard also requires the presentation of
Management-defined Performance Measures in the
financial statements. The Group estimates that the new
standard will impact the presentation of the statement of
profit or loss and the information presented in the financial
statements. The Group will analyse the need for changes in
accordance with the requirements of the standard.
Other annual improvements or amendments to existing
standards that become effective on or after 1 January 2025
are not estimated to have a material impact on the
consolidated financial statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. FINANCIAL RESULTS
2.1 Revenue recognition
Accounting policies
In the consolidated income statement, net sales comprise the sales of goods, services and
energy based on customer agreements. The share of sales of services and energy of total
net sales is not significant. The Group sells products to retailers and other business
customers and engages in own retailing. Income from sales of goods and services is
recognised when the customer obtains control of the goods or services. Customers obtain
control when they have the ability to direct the use of and obtain the benefits from the
goods or services. As a rule, income from sales of goods can be recognised at the time of
transfer. Income from services is recognised as the service is being performed. Sales to
retailers and business customers are based on invoicing. Sales to consumers are mainly in
cash or by credit card.
When calculating net sales, sales revenue is adjusted for indirect taxes, sales adjustment
items and the exchange differences of foreign-currency-denominated sales. In businesses in
Finland that are part of the K-Plussa customer loyalty scheme, sales adjustment items
include loyalty award credits, recognised as part of sales transactions. Income from
corresponding sales is recognised when the award credits are redeemed or expire. Contract
liability is recognised in the balance sheet. Loyalty award credits affect the net sales of
those businesses that grant K-Plussa customer loyalty award credits in Finland and engage
in retailing.
Other operating income includes income other than that associated with the sale of goods
or services based on customer agreements, such as lease income, store site and chain fees
charged from retailers, and various other service fees and commissions. Fees charged from
retailer entrepreneurs are based on a partnership agreement (chain agreement) based on
which the retailers engage in business in line with the chain’s operating models and
objectives. Store site fees and chain fees vary depending on the growth and profitability of
the retailer’s business operations under the chain agreement. Chain marketing fees and
data system fees are cost-based charges. More detailed information on other operating
income is presented in Note 2.4.
Other operating income also includes gains on the disposal of property, plant and
equipment and intangible assets as well as gains on disposal of businesses and realised and
unrealised gains on derivatives used for hedging foreign currency risks associated with
commercial transactions.
Interest income is recognised on a time apportionment basis using the effective interest
method. Dividend income is recognised when the right to receive payment is established.
2.2 Segment information
Accounting policies
The Group's reportable segments are composed of the Group's divisions, namely the
grocery trade, the building and technical trade, and the car trade.
Segment information is reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. The chief operating decision maker, responsible for
allocating resources to the divisions, has been identified as the Group Management Board.
The reportable operating segments derive their net sales from the grocery trade, the
building and technical trade, and the car trade. Sales between divisions are charged at
prevailing market rates.
The Group Management Board uses alternative performance measures alongside the IFRS
financial statements indicators in the Group’s results reporting. The Group Management
Board assesses the divisions' performances based on operating profit, comparable

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operating profit, and comparable return on capital employed. Results reporting to
management corresponds to the accounting policies of the consolidated financial
statements apart from items affecting comparability. Finance income and costs are not
allocated to the divisions as the Group’s cash and cash equivalents and financial liabilities
are managed by the Group Treasury. Changes in the fair values of intra-Group foreign
exchange forward contracts entered into and realised gains and losses are reported as part
of other operating income and expenses to the extent that they hedge the divisions’ foreign
exchange risk.
The assets and liabilities of a division's capital employed consist of operating items that can
be justifiably allocated to the divisions. The assets of capital employed comprise property,
plant and equipment and intangible assets, right-of-use assets related to leases, interests in
associates and joint ventures and other investments, pension assets, inventories, trade
receivables and other non-interest-bearing receivables, interest-bearing receivables, and
assets held for sale. The liabilities of capital employed consist of trade payables, the share of
other non-interest-bearing liabilities and provisions. The Group’s real estate assets and the
revenue and costs generated from them have been allocated to the divisions. Capital
employed does not include deferred tax assets and liabilities, financial assets at fair value
through profit or loss with the exception of fair value of foreign exchange forward contracts
recognised in the balance sheet, cash and cash equivalents, or interest-bearing liabilities.
The same revenue recognition policies apply to segment information as to the consolidated
financial statements and consolidated statement of financial position. The revenue
recognition policies are presented in Note 2.1.
Kesko’s business models
Kesko’s principal business model in the Finnish market is the chain business model, in which
independent K-retailers run retail stores in Kesko's chains, and B2B trade. Kesko manages
the operations of the chains made up of the stores. Chain operations ensure higher
competitiveness and a strong operational basis for K-retailers in terms of purchasing goods,
building selections, marketing and price competition. Outside Finland, Kesko mainly engages
in own retailing and B2B trade. Kesko’s wholesale to retailers accounted for 45% (46%) of the
Group’s net sales in 2024. B2B trade accounted for 37% (39%) of the Group’s net sales in
2024. Kesko’s BtoC trade accounted for 18% (15%) of the Group’s net sales. The
management views that these categories depict how the nature, amount, timing and
uncertainty of revenue and cash flows are affected by economic factors.
New segments structure
Kesko changed its division structure and segment reporting from 1 April 2023 onwards.
Sports trade became part of the car trade division, while it previously had been part of the
building and technical trade division. Data concerning the comparison periods have been
adjusted to correspond to the new segment structure.
Grocery trade
The grocery trade division comprises the wholesale and B2B trade of groceries and the
retailing of home and speciality goods in Finland. There are approximately 1,100 grocery
stores operated by K-retailers in Finland. These stores form the K-Citymarket, K-
Supermarket and K-Market grocery retail chains. The Neste K chain was discontinued during
the year 2024. Kespro is a foodservice provider and wholesaler in Finland. For the part of K-
Citymarket's home and speciality goods trade, Kesko operates as a retailer in Finland.
Building and technical trade
The building and technical trade division operates in the wholesale, retail and B2B trade in
Finland, Sweden, Norway, Denmark, the Baltic countries and Poland. On 31 January 2024
Kesko expanded its operations to Denmark by acquiring 90% of the shares in Davidsen
Koncernen A/S. In building and home improvement trade, Kesko operates with the K-retailer
business model in Finland, and as a retail operator in Sweden, Norway and Denmark. The
retail store chains are K-Rauta (Finland), K-Bygg (Sweden), Byggmakker (Norway) and
Davidsen (Denmark). The reorganisation of the K-Rauta chain in Sweden was completed in
December 2024. In October-November 2024, a total of 8 K-Rauta stores were transferred
under the K-Bygg chain. The building and home improvement stores serve both consumers
and business customers. Technical trade provides HEPAC and electrical products and
services to business customers. Technical trade has around 140 places of business in Finland,
Sweden, Norway, Poland and the Baltic countries.

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Car trade
The car trade division comprises the business operations of new cars, used cars, services and
leasing. The new cars business includes the import, marketing and retail of Volkswagen,
Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and of Volkswagen commercial
vehicles in Finland, and the import of SEAT and CUPRA passenger cars in the Baltics. The
used car business includes the purchase of used cars from Finland and elsewhere and the
retail of the cars in Finland. The service business includes repair and maintenance services,
spare parts sales and accessories services in Finland. The leasing business provides car
leasing services for both private and corporate customers. Services provided by the car trade
division also include the K-Lataus charging network for electric vehicles. The business
acquisition of Autotalo Lohja was completed on 1 September 2024. In the comparison period
Kesko completed the divestment of its MAN business (trucks and buses).
Sports trade is included in the car trade division, and comprises in Finland the Intersport and
Budget Sport chains.
Common functions
Common functions comprise Group support functions.
Segment information 2024
Profit

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Total
Division net sales | 6,381.4 | 4,351.6 | 1,209.4 | 1.5 | 11,943.9
of which intersegment sales | -16.1 | 0.2 | -7.3 | -0.7 | -23.9
Net sales from external customers | 6,365.3 | 4,351.8 | 1,202.1 | 0.8 | 11,920.1
Change in net sales in local currency excluding acquisitions and disposals, % | 0.4 | -6.0 | -4.0 | - | -2.3
Change in net sales, % | 0.5 | 3.8 | -4.2 | - | 1.2
Other division income | 813.0 | 144.1 | 29.0 | 12.7 | 998.7
of which intersegment income | -0.9 | -2.0 | 0.1 | -1.3 | -4.1
Other operating income from external customers | 812.0 | 142.1 | 29.1 | 11.3 | 994.6
Depreciation and amortisation | -108.6 | -76.9 | -31.4 | -31.0 | -247.9
Depreciation and impairment charges for right-of-use assets | -243.9 | -100.8 | -24.2 | -6.6 | -375.5
Share of result of joint ventures | - | 20.9 | - | - | 20.9
Operating profit | 420.9 | 116.3 | 69.3 | -26.9 | 579.5
Items affecting comparability | -17.2 | -52.8 | -0.0 | -0.5 | -70.6
Comparable operating profit | 438.0 | 169.1 | 69.3 | -26.4 | 650.1
Finance income and costs |  |  |  |  | -111.7
Share of result of associates |  |  |  |  | 3.8
Profit before tax |  |  |  |  | 471.5

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Assets and liabilities

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Eliminations | Total
Property, plant, equipment and intangible assets | 1,697.0 | 1,215.9 | 286.5 | 82.4 | -1.3 | 3,280.5
Right-of-use assets | 1,258.9 | 472.3 | 78.6 | 57.9 | - | 1,867.7
Interests in associates and joint ventures and other investments | 6.2 | 160.8 | 0.1 | 88.1 | -0.6 | 254.5
Pension assets | 18.6 | 5.0 | - | 103.8 | - | 127.5
Inventories | 285.8 | 586.0 | 229.7 | - | - | 1,101.5
Trade receivables | 363.5 | 524.1 | 71.1 | 2.1 | -2.9 | 957.9
Other non-interest-bearing receivables | 71.5 | 197.5 | 24.2 | 45.5 | -31.5 | 307.2
Interest-bearing receivables | 1.1 | - | - | 61.9 | - | 63.0
Non-current assets classified as held for sale | - | 6.6 | - | - | - | 6.6
Assets included in capital employed | 3,702.7 | 3,168.1 | 690.1 | 441.7 | -36.3 | 7,966.3
Unallocated items |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  | 16.9
Other financial assets |  |  |  |  |  | 15.0
Cash and cash equivalents |  |  |  |  |  | 473.1
Total assets | 3,702.7 | 3,168.1 | 690.1 | 441.7 | -36.3 | 8,471.2
Trade payables | 603.4 | 736.3 | 52.3 | 14.6 | -2.2 | 1,404.4
Other non-interest-bearing liabilities | 312.6 | 269.7 | 113.4 | 45.5 | -22.7 | 718.5
Provisions | 1.1 | 5.2 | 12.6 | 0.5 | - | 19.5
Liabilities related to non-current assets classified as held for sale | - | 0.1 | - | - | - | 0.1
Liabilities included in capital employed | 917.1 | 1,011.4 | 178.3 | 60.6 | -24.9 | 2,142.4
Unallocated items |  |  |  |  |  |
Interest-bearing liabilities |  |  |  |  |  | 1,345.3
Lease liabilities |  |  |  |  |  | 2,051.0
Other non-interest-bearing liabilities |  |  |  |  |  | 121.3
Deferred tax liabilities |  |  |  |  |  | 76.3
Total liabilities | 917.1 | 1,011.4 | 178.3 | 60.6 | -24.9 | 5,736.3
Total capital employed as at 31 December | 2,785.6 | 2,156.7 | 511.8 | 381.1 | -11.4 | 5,823.8
Average capital employed | 2,734.9 | 2,172.8 | 503.0 | 350.7 | -2.7 | 5,758.7
Return on capital employed, %, comparable | 16.0 | 7.8 | 13.8 | - | - | 11.3
Number of personnel as at 31 December | 8,257 | 7,341 | 1,752 | 959 |  | 18,309
Average number of personnel converted into full-time employees | 6,346 | 6,538 | 1,556 | 908 |  | 15,347

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Segment information 2023
Profit

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Total
Division net sales | 6,351.6 | 4,193.2 | 1,262.3 | -0.0 | 11,807.1
of which intersegment sales | -16.5 | 0.9 | -7.4 | -0.3 | -23.3
Net sales from external customers | 6,335.1 | 4,194.1 | 1,254.9 | -0.3 | 11,783.8
Change in net sales in local currency excluding acquisitions and disposals, % | 3.7 | -10.5 | 13.9 | - | -0.8
Change in net sales, % | 3.7 | -8.7 | 12.2 | - | -0.2
Other division income | 803.6 | 135.8 | 29.3 | 10.6 | 979.3
of which intersegment income | -0.4 | -1.8 | 0.1 | -2.0 | -4.1
Other operating income from external customers | 803.2 | 133.9 | 29.4 | 8.7 | 975.2
Depreciation and amortisation | -93.6 | -30.8 | -28.6 | -31.0 | -184.0
Depreciation and impairment charges for right-of-use assets | -232.0 | -91.9 | -22.8 | -6.4 | -353.2
Share of result of joint ventures | - | 19.0 | - | - | 19.0
Operating profit | 443.6 | 201.9 | 82.4 | -32.6 | 695.4
Items affecting comparability | -1.3 | -10.5 | -0.1 | -4.8 | -16.7
Comparable operating profit | 444.8 | 212.5 | 82.6 | -27.8 | 712.0
Finance income and costs |  |  |  |  | -83.9
Share of result of associates |  |  |  |  | 2.1
Profit before tax |  |  |  |  | 613.5

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Assets and liabilities

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Eliminations | Total
Property, plant, equipment and intangible assets | 1,534.9 | 1,035.5 | 265.7 | 96.4 | -1.8 | 2,930.7
Right-of-use assets | 1,233.1 | 441.4 | 81.1 | 61.2 | - | 1,816.9
Interests in associates and joint ventures and other investments | 5.5 | 155.7 | 0.1 | 86.2 | -0.6 | 246.8
Pension assets | 18.6 | 4.9 | - | 56.0 | - | 79.6
Inventories | 271.9 | 578.2 | 233.8 | - | - | 1,083.9
Trade receivables | 389.8 | 509.9 | 71.2 | 2.1 | -2.5 | 970.5
Other non-interest-bearing receivables | 80.3 | 189.2 | 28.1 | 35.9 | -15.6 | 318.0
Interest-bearing receivables | 1.7 | 0.0 | - | 65.3 | - | 66.9
Assets included in capital employed | 3,535.9 | 2,914.9 | 680.0 | 403.1 | -20.6 | 7,513.3
Unallocated items |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  | 13.7
Other financial assets |  |  |  |  |  | 15.4
Cash and cash equivalents |  |  |  |  |  | 211.9
Total assets | 3,535.9 | 2,914.9 | 680.0 | 403.1 | -20.6 | 7,754.3
Trade payables | 620.4 | 717.7 | 55.4 | 26.5 | -1.7 | 1,418.3
Other non-interest-bearing liabilities | 295.0 | 242.2 | 96.6 | 47.3 | -16.6 | 664.5
Provisions | 0.2 | 5.2 | 13.2 | 0.4 | - | 18.9
Liabilities included in capital employed | 915.5 | 965.0 | 165.2 | 74.2 | -18.3 | 2,101.7
Unallocated items |  |  |  |  |  |
Interest-bearing liabilities |  |  |  |  |  | 789.2
Lease liabilities |  |  |  |  |  | 1,997.9
Other non-interest-bearing liabilities |  |  |  |  |  | 36.3
Deferred tax liabilities |  |  |  |  |  | 70.9
Total liabilities | 915.5 | 965.0 | 165.2 | 74.2 | -18.3 | 4,995.9
Total capital employed as at 31 December | 2,620.4 | 1,949.8 | 514.7 | 329.0 | -2.3 | 5,411.6
Average capital employed | 2,555.4 | 1,865.1 | 523.6 | 371.5 | -2.3 | 5,313.3
Return on capital employed, %, comparable | 17.4 | 11.4 | 15.8 | - | - | 13.4
Number of personnel as at 31 December | 8,184 | 6,934 | 1,641 | 943 |  | 17,702
Average number of personnel converted into full-time employees | 6,257 | 6,073 | 1,531 | 905 |  | 14,766

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Alternative performance measures in segment reporting
Kesko uses alternative performance measures to reflect business performance and
profitability. These indicators should be examined together with the IFRS-compliant
performance indicators.
Change in comparable net sales is used to reflect changes in the Group’s business volume
between periods. The indicator reflects the change in net sales excluding the impact of
acquisitions and divestments, in local currencies. The comparable net sales have been
calculated by including in the net sales the business operations that have been part of Kesko
Group in both the reporting period as well as the comparison period. Other structural
arrangements related to acquisitions and divestments have been adjusted in the same
manner as acquisitions.
Exceptional transactions outside the ordinary course of business are treated as items
affecting comparability. 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. Impairment charges and significant profit
and loss items related to changes in lease agreements are presented in the income statement
under depreciation, amortisation and impairment charges.
Alternative performance measures that have been adjusted for the impact of IFRS 16 are
used to monitor the achievement of certain financial targets. The EBITDA excluding the
impact of IFRS 16 corresponds to EBITDA before the adoption of IFRS 16, and the interest-
bearing net debt excluding lease liabilities correspond to interest-bearing net debt before the
adoption of the standard. These restated indicators are included as components in the
Group’s financial target “interest-bearing net debt excluding lease liabilities divided by
EBITDA excluding the impact of IFRS 16”.
In addition, financial performance indicators for the Group have been presented as
alternative performance measures. The management uses these indicators to monitor and
analyse business performance, profitability and financial position.
Items affecting comparability

€ million | 2024 | 2023
Gains on disposal | +11.4 | +0.4
Losses on disposal | -1.6 | -1.0
Impairment charges | -40.0 | -
Structural arrangements | -40.4 | -16.1
Items in operating profit affecting comparability, total | -70.6 | -16.7

Items related to structural arrangements are presented on the following lines in the
consolidated income statement: other operating income (€+11.7 million), materials and
services (€-0.1 million), change in inventory (€-8.2 million), employee benefit expenses
(€-4.4 million), amortisation and impairment charges (€-44.8 million), amortisation and
impairment charges for right-of-use assets (€-13.5 million) and other operating expenses
(€-11.4 million).
In 2023 items related to structural arrangements are presented on the following lines in the
consolidated income statement: other operating income (€+0.8 million), change in inventory
(€-1.0 million), employee benefit expenses (€-7.5 million), amortisation and impairment
charges (€-0.5 million), amortisation and impairment charges for right-of-use assets
(€-3.4 million) and other operating expenses (€-5.1 million).

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Reconciliation of alternative performance measures to IFRS financial statements

€ million | 2024 | 2023
Operating profit, comparable |  |
Operating profit | 579.5 | 695.4
Net of |  |
Items in operating profit affecting comparability | -70.6 | -16.7
Operating profit, comparable | 650.1 | 712.0
Return on capital employed, comparable, % |  |
Operating profit, comparable | 650.1 | 712.0
Capital employed, average | 5,758.7 | 5,313.3
Return on capital employed, comparable, % | 11.3 | 13.4
Comparable change in net sales |  |
Net sales, grocery trade | 6,381.4 | 6,351.6
Effect of acquisitions and divestments | -3.7 |
Change in net sales, comparable, % | 0.4 |
Net sales, building and technical trade | 4,351.6 | 4,193.2
Foreign exchange effects | -2.8 |
Effect of acquisitions and divestments | -407.9 |
Change in net sales, comparable, % | -6.0 | -10.5
Net sales, car trade | 1,209.4 | 1,262.3
Effect of acquisitions and divestments | 2.5 |
Change in net sales, comparable, % | -4.0 |
Net sales, Group | 11,920.1 | 11,783.8
Foreign exchange effects | -2.8 |
Effect of acquisitions and divestments | -409.1 | -258.5
Change in net sales, comparable, % | -2.3 | -0.8

Calculation of performance indicators

Operating profit, comparable
Operating profit +/– items affecting comparability
Return on capital employed, %, comparable
Comparable operating profit x 100 / (Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for 12 months

|  | 111

Geographical information
The Group operates in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and
Poland. The grocery trade operates in Finland. The building and technical trade operates in
Finland, Sweden, Norway, Denmark, the Baltic countries and Poland, and the car trade
operates in Finland. Net sales, assets, capital expenditure and personnel are presented by
location.
Net sales are mostly derived from sales of goods. The amount derived from sales of services
is minor.
Kesko Group does not have net sales derived from a single customer, which exceeds 10% of
Kesko Group’s total net sales.

2024 € million | Finland | Other Nordic countries | Baltic countries | Others | Eliminations | Total
Net sales | 9,542.7 | 1,889.3 | 127.4 | 368.1 | -7.4 | 11,920.1
Assets included in capital employed | 6,019.5 | 1,546.6 | 232.1 | 168.1 |  | 7,966.3
Average number of personnel converted into full-time employees | 10,345 | 3,687 | 359 | 957 |  | 15,347

2023 € million | Finland | Other Nordic countries | Baltic countries | Others | Eliminations | Total
Net sales | 9,714.0 | 1,612.5 | 129.1 | 336.9 | -8.7 | 11,783.8
Assets included in capital employed | 5,733.1 | 1,417.5 | 211.3 | 151.4 |  | 7,513.3
Average number of personnel converted into full-time employees | 10,314 | 3,167 | 357 | 927 |  | 14,766

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2.3 Material and services

€ million | 2024 | 2023
Materials and services | -9,959.5 | -9,814.8
External services | -224.6 | -220.2
Total | -10,184.1 | -10,035.0

2.4 Other operating income
Revenue recognition, including the definition of income reported under other operating
income, is presented in Note 2.1.

€ million | 2024 | 2023
Service fees | 779.2 | 780.3
Lease income | 50.6 | 46.1
Gains on disposal of property, plant, equipment and intangible assets | 12.6 | 1.6
Realised gains on derivative contracts and changes in fair value | 3.6 | 1.4
Others | 148.6 | 145.9
Total | 994.6 | 975.2

Service fees mainly comprises chain and store site fees paid by the independent retailers.
More information on lease income is provided in Note 3.4 .
2.5 Operating expenses
Accounting policies
Other operating expenses include expenses other than the cost of goods sold, such as
employee benefit expenses, marketing costs, property and store site maintenance costs,
information system expenses, and lease payments recognised in the income statement on
leases classified as short-term leases or leased assets classified as of low value. Other
operating expenses also include losses on the disposal of property, plant and equipment
and intangible assets, losses on disposal of business operations as well as realised and
unrealised losses on derivatives used for hedging foreign currency risks associated with
commercial transactions.
Employee benefit expenses

€ million | 2024 | 2023
Salaries and fees | -686.2 | -629.8
Social security costs | -54.8 | -58.4
Pension costs |  |
Defined benefit plans | 0.2 | -1.2
Defined contribution plans | -94.7 | -89.2
Share based payments | -7.0 | -8.1
Total | -842.5 | -786.6

Information on the defined benefit plans is presented in Note 3.7. Information on the
employee benefits of the Group’s management personnel and other related party
transactions are presented in Note 5.2, and information on share-based compensation in
Note 5.3.
Average number of the Group personnel

| 2024 | 2023
Grocery trade | 6,346 | 6,257
Building and technical trade | 6,538 | 6,073
Car trade | 1,556 | 1,531
Common operations | 908 | 905
Total | 15,347 | 14,766

Average number of the Group personnel by segment is calculated as full-time equivalent
employees.

|  | 113

Other operating expenses

€ million | 2024 | 2023
Marketing costs | -201.0 | -208.5
Property and store site maintenance expenses | -198.5 | -185.1
ICT expenses | -123.4 | -111.9
Lease payments in the income statement | -8.5 | -7.7
Losses on disposal of property, plant, equioment and intangible assets | -2.1 | -1.1
Realized losses on derivative contracts and changes in fair value | -1.5 | -1.7
Other operating expenses | -149.6 | -135.8
Total | -684.5 | -651.8

Lease payments in the income statement consist of payments for short-term leases and
payments for leases of low-value assets as well as variable lease payments. Property and
store site maintenance expenses also include maintenance expenses for leased properties.
More information on lease expenditure is provided in Note 3.4.
Auditors' fees

€ million | 2024 | 2023
Audit | -1.4 | -1.2
Tax consultation | - | -0.0
Other services | -0.1 | -0.2
Total | -1.5 | -1.4

Kesko Corporation’s Auditor is Deloitte Oy. A statutory audit fee of €0.0 million (€0.1
million) was paid to an audit firm outside of Deloitte chain.
2.6 Foreign exchange differences recognised in operating profit

€ million | 2024 | 2023
Net sales | -0.1 | -0.2
Other operating incom | 3.6 | 1.4
Materials and services | -0.5 | -1.0
Other operating expenses | -1.5 | -1.7
Total | 1.5 | -1.4

2.7 Income tax
Accounting policies
The taxes recognised in the consolidated income statement include the Group companies'
taxes on current net profits on an accrual basis, prior period tax adjustments and changes in
deferred taxes. The Group companies' taxes have been calculated from the taxable income
of each company determined by local jurisdiction. The tax impact of items recognised in
other comprehensive income has been recognised correspondingly in other comprehensive
income.
Deferred tax assets and liabilities are recognised on temporary differences arising between
the tax bases and carrying amounts of assets and liabilities and for unused tax losses.
Deferred tax liability has not been calculated on goodwill insofar as goodwill is not tax
deductible. Deferred tax on subsidiaries' undistributed earnings is not recognised unless a
distribution of earnings is probable, causing tax implications.
Deferred tax has been determined using the tax rates enacted at the balance sheet date,
and as the rates changed, at the known new rate. Kesko applies the mandatory exception
under IAS 12 from deferred tax accounting in relation to Pillar Two income taxes. A deferred
income tax asset is recognised to the extent that it is probable that it can be utilised against
future taxable income. The Group's deferred income tax assets and liabilities are offset
when they relate to income taxes levied by the same taxation authority.
The most significant temporary differences arise from leases, defined benefit pension plans,
tangible and intangible assets and tax losses.

|  | 114

Group's tax positions are assessed regularly to identify situations requiring interpretation. If
an interpretation taken by the Group is deemed unlikely to be approved, a provision is made
in accounting of income taxes. An uncertain tax position may affect taxes for the financial
year or deferred taxes or both.

€ million | 2024 | 2023
Current tax | -114.8 | -113.9
Tax for prior years | -0.3 | -0.5
Change in deferred taxes | 23.1 | -3.6
Total | -92.0 | -118.0

Pillar Two minimum tax legislation is applied for the first time to the financial year beginning
on 1 January 2024. Group’s current tax expense in 2024 does not include top-up taxes
arising under the Pillar Two rules.
Reconciliation between tax expense shown in the income statement
and tax calculated at parent's tax rate

€ million | 2024 | 2023
Profit before tax | 471.5 | 613.5
Tax at parent's tax rate 20.0% | -94.3 | -122.7
Effect of foreign subsidiaries' different tax rates | 0.1 | -3.5
Effect of tax-free income | 2.4 | 0.4
Effect of expenses not deductible for tax purposes | -11.6 | -2.0
Effect of unrecognised deferred tax assets | 0.1 | -0.6
Effect of consolidation of share of result of associates and joint ventures | 4.9 | 4.2
Tax for prior years | -0.3 | -0.5
Adjustment and revaluation of deferred tax for previous years | 6.7 | 7.0
Effect of changes in tax rates | -0.0 | -
Others | 0.0 | -0.3
Tax charge | -92.0 | -118.0
Effective tax rate % | -19.5 | -19.2

Balance sheet division of net deferred tax assets (liabilities)

€ million | 2024 | 2023
Deferred tax assets | 16.9 | 13.7
Deferred tax liabilities | 76.3 | 70.9
Total | -59.4 | -57.2

Movements in deferred ta x in 2024

€ million | 1 Jan. 2024 | Income statement charge | Tax charged/ credited to equity | Exchange differ- ences | Other changes | 31 Dec. 2024
Deferred tax assets |  |  |  |  |  |
Tangible and intangible assets | 7.1 | 1.5 | - | -0.1 | -0.3 | 8.2
Inventory | 7.0 | 0.4 | - | -0.2 | - | 7.2
Leases | 36.6 | 0.9 | - | -0.2 | - | 37.3
Provisions | 4.8 | -0.3 | - | 0.0 | 0.0 | 4.5
Tax loss carry-forwards | 10.5 | 5.2 | - | -0.3 | -0.0 | 15.4
Other temporary differences | 7.2 | 0.8 | 0.9 | -0.0 | 0.2 | 8.9
Total | 73.1 | 8.5 | 0.9 | -0.8 | -0.1 | 81.5
Deferred tax liabilities |  |  |  |  |  |
Tangible and intangible assets | 97.6 | -8.8 | - | -0.6 | 17.1 | 105.3
Derivative contracts | 1.6 | 0.0 | -1.0 | - | - | 0.6
Pensions | 15.9 | 0.1 | 9.5 | -0.0 | - | 25.5
Untaxed earnings | 10.4 | -5.2 | - | -0.2 | - | 5.1
Other temporary differences | 4.8 | -0.8 | - | 0.0 | 0.5 | 4.5
Total | 130.2 | -14.7 | 8.5 | -0.8 | 17.6 | 140.9
Net deferred tax asset (+)/liability (-) | -57.2 |  |  |  |  | -59.4

|  | 115

Movements in deferred tax in 2023

€ million | 1 Jan. 2023 | Income statement charge | Tax charged/ credited to equity | Exchange differ- ences | Other changes | 31 Dec. 2023
Deferred tax assets |  |  |  |  |  |
Tangible and intangible assets | 7.5 | -0.5 | - | -0.0 | 0.0 | 7.1
Inventory | 4.2 | 2.6 | - | -0.0 | 0.2 | 7.0
Leases | 37.1 | -0.4 | - | -0.1 | - | 36.6
Provisions | 5.8 | -1.1 | - | 0.1 | - | 4.8
Tax loss carry-forwards | 0.1 | 9.9 | - | 0.3 | 0.1 | 10.5
Other temporary differences | 6.7 | 0.0 | 0.3 | 0.1 | 0.0 | 7.2
Total | 61.4 | 10.5 | 0.3 | 0.4 | 0.4 | 73.1
Deferred tax liabilities |  |  |  |  |  |
Tangible and intangible assets | 85.5 | 9.4 | - | -0.7 | 3.4 | 97.6
Derivative contracts | 9.0 | 0.1 | -7.5 | - | - | 1.6
Pensions | 17.2 | 0.1 | -1.4 | 0.0 | -0.1 | 15.9
Untaxed earnings | 6.3 | 4.1 | - | -0.0 | - | 10.4
Other temporary differences | 4.5 | 0.5 | - | 0.2 | -0.4 | 4.8
Total | 122.5 | 14.2 | -8.8 | -0.5 | 2.9 | 130.2
Net deferred tax asset (+)/liability (-) | -61.0 |  |  |  |  | -57.2

Deferred tax related to components of other comprehensive income

€ million | 2024 Before tax | Tax charge/ credit | After tax | 2023 Before tax | Tax charge/ credit | After tax
Items that will not be reclassified subsequently to profit or loss |  |  |  |  |  |
Actuarial gains and losses | 47.0 | -9.4 | 37.6 | -6.9 | 1.4 | -5.5
Items that may be reclassified subsequently to profit or loss |  |  |  |  |  |
Currency translation differences relating on foreign operations | -31.6 |  | -31.6 | -19.5 |  | -19.5
Share of other comprehensive income of associates and joint ventures | 0.5 |  | 0.5 | -1.8 |  | -1.8
Cash flow hedge revaluation | -9.5 | 1.8 | -7.7 | -38.8 | 7.8 | -31.0
Total | 6.3 | -7.6 | -1.2 | -67.0 | 9.1 | -57.9

Tax loss carry-forwards
In the 31 December 2024 consolidated financial statements, the Group has recognised €15.3
million (€10.2 million) deferred tax asset on tax losses carried forward by the Swedish Group
companies. The reorganisation of unprofitable operations in Sweden has been completed,
and following the previously conducted acquisitions, utilization of historical tax losses has
become possible. Considering the uncertainties related to the overall economy, the
recognised tax asset is based on estimated utilisation of the tax losses over a limited time
period. In Sweden tax losses may be carried forward indefinitely. As at 31 December 2024,
the Group still had €128.3 million of unused tax losses for which deferred tax assets have not
been recognised.
Tax losses carried forward for which tax assets have not been recognised expire
as follows:

€ million | 2025 | 2026 | 2027 | 2028 | 2029 | 2030- | Total
| - | - | - | - | 0.1 | 128.2 | 128.3

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2.8 Earnings per share
Accounting policies
Basic earnings per share are calculated by dividing the net profit for the period attributable
to the parent’s equity holders by the weighted average number of shares outstanding
during the period. Diluted earnings per share are calculated by adjusting the weighted
average number of all shares to assume conversion of all potentially dilutive shares.

| 2024 | 2023
Profit for the period attributable to equity holders of the parent, €million | 379.1 | 495.6
Number of shares |  |
Weighted average number of shares outstanding | 397,921,553 | 397,705,620
Diluted weighted average number of shares outstanding | 397,921,553 | 397,705,620
Earnings per share from profit attributable to equity holders of the parent |  |
Basic and diluted, Group total, € | 0.95 | 1.25

2.9 Additional details related to the statement of cash flows
Adjustments to cash flows from operating activities

€ million | 2024 | 2023
Adjustment of non-cash transactions in the income statement and items presented elsewhere in the statement of cash flows: |  |
Change in provisions | 0.7 | -2.4
Share of results of associates and joint ventures | -24.7 | -21.0
Impairments | 40.5 | -
Credit losses | 7.1 | 5.1
Gains on disposal of property,plant, equipment and intangible assets and business operations | -12.7 | -1.6
Losses on disposal of property, plant, equipment and intangible assets and business operations | 4.8 | 5.5
Share-based compensation | 2.6 | -2.3
Defined benefit pensions | -0.3 | 0.5
Others | 4.2 | 5.5
Total | 22.2 | -10.8

The group ‘Others’ within the adjustments to cash flows from operating activities includes
the adjustment of unrealised foreign exchange gains and losses on purchases and sales, and
the adjustment of other transactions of a non-cash nature.
Capital expenditure and non-cash financing activities

€ million | 2024 | 2023
Total acquisition of property, plant, equipment and intangible assets | 527.6 | 550.0
Total acquisition of subsidiaries and investments in associates and other investments | 148.3 | 129.0
Total capital expenditure | 675.9 | 678.9
of which cash payments | 614.7 | 643.5
Loans relating to acquired companies and cash and cash equivalents | 49.9 | 40.3
Payments arising from prior period investing activities | -30.2 | -39.0
Capital expenditure financed with liabilities | 41.5 | 34.2
Total | 675.9 | 678.9

|  | 117

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. CAPITAL EMPLOYED
3.1 Acquisitions
Accounting policies
Assets acquired and liabilities assumed in business combinations are measured at their fair
values at the date of acquisition. The fair values on which the allocation of assets and
liabilities is based are determined by reference to market values to the extent they are
available. If market values are not available, the measurement is based on the estimated
earnings-generating capacity of the asset and its future use in Kesko's operating activities.
Critical accounting estimates and assumptions
The measurement of intangible assets is based on the present values of future cash flows
and requires management estimates regarding future cash flows and the use of assets.
Acquisitions in 2024
Kesko expanded its operations to the Danish building and home improvement trade market
by acquiring 90% of the shares in Davidsen Koncernen A/S on 31 January 2024. The
Davidsen family will remain as a 10% minority shareholder in the company. Kesko acquired
the shares in the company for a consideration of €147.9 million. The acquisition strengthens
Kesko’s market position in Northern Europe. The figures for Davidsen have been
consolidated into Kesko Group’s financial reporting from 1 February 2024 onwards.
Based on the purchase price allocation, the fair value of the assets acquired for Kesko Group
amounted to €267.9 million and the fair value of the liabilities assumed amounted to €142.9
million. The fair value of intangible assets acquired at the date of acquisition totalled €39.3
million. The goodwill arising from the acquisition, €35.4 million reflects the strengthening of
Kesko's market position in Northern European building and home improvement trade both
with Davidsen's business operations and the synergies to be obtained. The goodwill arising
from the acquisition is not tax deductible. The non-controlling interest is reported as
proportionate share of net assets of the acquired company. Based on the agreement
between Kesko and the minority shareholder, Kesko has recorded a financial liability related
to the redemption of the non-controlling interest in its consolidated statement of financial
position, which reduces the amount of equity attributable to owners of the parent company.
The consolidated income statement includes minor acquisition-related costs under “Other
operating expenses”, presented as items affecting comparability.
On 1 September 2024, Kesko acquired Autotalo Lohja, thus expanding its car trade
dealership network by two locations. Autotalo Lohja recorded net sales of €43.3 million in
2023. Based on the preliminary purchase price allocation, the fair value of the assets
acquired for Kesko Group amounted to €2.4 million and the fair value of the liabilities
assumed amounted to €0.5 million. The preliminary fair value of the intangible assets
acquired (including customer relationships) at the date of acquisition totals €0.6 million. The
€3.0 million goodwill arising from the acquisitions reflects the synergies expected to be
achieved in efficiency in retail and other operations. The consolidated income statement
includes minor acquisition-related costs, which are presented as items affecting
comparability. The impact of the acquired business on the Group’s net sales and operating
profit in September-December was minor.

|  | 118

The following table provides a summary of the consideration paid, the values of assets
acquired and liabilities assumed by Kesko Group at the date of acquisition, and the cash flow
impact of the acquisitions.

| 2024
€ million | Davidsen Koncernen A/S
Acquisition price | 147.9
Fair values of assets acquired and liabilities assumed at the date of acquisition |
Intangible assets | 39.3
Property, plant, equipment, right-of-use assets and investments | 106.7
Inventories | 52.8
Receivables | 47.3
Deferred tax asset | 0.0
Cash and cash equivalents | 21.7
Total assets | 267.9
Trade payables, other payables and provisions | 71.5
Interest-bearing liabilities including lease liabilities | 54.2
Deferred tax liability | 17.2
Total liabilities | 142.9
Net assets acquired, total | 125.0
Non-controlling interests | -12.5
Goodwill | 35.4
Acquisition price of the shares | 147.9
Cash flow impact of acquisition |
Consideration paid | -168.0
Cash and cash equivalents acquired | 21.7
Cash flow impact of acquisition | -146.3

Acquisitions in 2023
Acquisitions in Sweden
Zenitec Sweden AB
Kesko's Swedish subsidiary Kesko AB acquired Zenitec Sweden AB, a solar power system
wholesaler, on 5 April 2023. The consideration paid for the acquisitions totalled €4.9 million.
The acquisition expands the selection, expertise and customer base in technical trade in
Sweden's fast growing renewable energy market.
The fair value of the assets acquired for Kesko Group amounted to €6.0 million and the fair
value of the liabilities assumed to €4.6 million. The fair value of the intangible assets acquired
at the date of acquisitions totalled €0.6 million.
Acquisitions in Norway
Elektroskandia Norge AS
Kesko's subsidiary Onninen acquired Elektroskandia Norge AS, a Norwegian technical trade
operator, on 1 March 2023. The consideration paid was €120.8 million. The acquisition
strengthens Kesko's position in Norwegian technical trade, and further increases its growing
role in advancing the green transition.
The fair value of the assets acquired for Kesko Group amounted to €121.6 million and the fair
value of the liabilities assumed to €85.4 million. The fair value of intangible assets acquired at
the date of acquisition totalled €15.6 million.
Geitanger Bygg AS
Kesko's Norwegian subsidiary Byggmakker Handel AS acquired Norwegian building and
home improvement trade operator Geitanger Bygg AS on 2 October 2023. The consideration
paid was €8.0 million.
The fair value of the assets acquired for Kesko Group amounted to €9.6 million and the fair
value of the liabilities assumed to €3.1 million. The fair value of the intangible assets acquired
at the date of acquisition totalled €0.6.

|  | 119

| 2023
€ million | Zenitec Sweden AB | Elektroskandia Norge AS | Geitanger Bygg AS
Acquisition price | 4.9 | 120.8 | 8.0
Fair values of assets acquired and liabilities assumed at the date of acquisition |  |  |
Intangible assets | 0.6 | 15.6 | 0.6
Property, plant, equipment, right-of- use assets and investments | 0.3 | 15.1 | 1.8
Inventories | 2.8 | 38.6 | 3.0
Receivables | 2.3 | 45.8 | 1.9
Deferred tax asset | - | 1.3 | -
Cash and cash equivalents | -0.0 | 5.3 | 2.4
Total assets | 6.0 | 121.6 | 9.6
Trade payables, other payables, provisions, lease liabilities | 4.5 | 81.6 | 2.9
Deferred tax liability | 0.1 | 3.8 | 0.2
Total liabilities | 4.6 | 85.4 | 3.1
Net assets acquired, total | 1.4 | 36.2 | 6.5
Goodwill | 3.5 | 84.7 | 1.5
Acquisition price of the shares | 4.9 | 120.8 | 8.0
Cash flow impact of acquisition |  |  |
Consideration paid | -4.9 | -120.8 | -8.0
Cash and cash equivalents acquired | -0.0 | 5.3 | 2.4
Cash flow impact of acquisition | -5.0 | -115.5 | -5.6

|  | 120

3.2 Property, plant and equipment
Accounting policies
Property, plant and equipment mainly comprise land, buildings, machinery and equipment.
Property, plant and equipment are carried at cost less any accumulated depreciation and
possible impairment charges. The property, plant and equipment of acquired subsidiaries
are measured at fair value at the date of acquisition.
Subsequent costs relating to items of property, plant and equipment are included in the
asset’s carrying amount or recognised as a separate asset only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. The machinery and equipment of buildings
are treated as separate assets and any significant expenditure related to their replacement
is capitalised. All other repair, service and maintenance expenditures of items of property,
plant and equipment are charged to the income statement during the financial period in
which they are incurred.
Depreciation on property, plant and equipment is calculated using the straight-line method
over their estimated useful lives. Land is not depreciated.
The most common estimated useful lives are:
- Buildings 10−33 years
- Components of buildings 8−10 years
- Machinery and equipment 3−8 years
- Cars and transport equipment 5 years
The residual values and useful lives of property, plant and equipment are reviewed at least
at the end of each financial year. If the estimates of useful life and the expected pattern of
economic benefits are different from previous estimates, the change in the estimate is
accounted for.
Gains and losses on disposals of property, plant and equipment are recognised in the
income statement and stated as other operating income and expenses.
The Group has not capitalised interest costs incurred as part of the acquisition of assets,
because the Group does not have qualifying assets.

2024 € million | Land and waters | Buildings | Machinery and equipment | Other tangible assets | Prepay- ments and construc- tion in progress | Total 2024
Cost |  |  |  |  |  |
Cost as at 1 January | 391.2 | 1,866.2 | 700.6 | 37.4 | 232.3 | 3,227.7
Exchange differences | -0.9 | -1.8 | -2.5 | -0.2 | 0.0 | -5.4
Additions | 27.5 | 193.2 | 122.5 | 1.5 | 150.2 | 494.9
Acquisitions | 5.1 | 86.4 | 2.9 | 0.0 | - | 94.4
Deductions | -5.0 | -12.0 | -87.2 | -4.0 | -7.3 | -115.5
Transfers between items | 3.8 | 71.4 | 1.8 | 0.6 | -102.6 | -25.0
Cost as at 31 December | 421.8 | 2,203.4 | 738.1 | 35.2 | 272.6 | 3,671.0
Accumulated depreciation and impairment charges |  |  |  |  |  |
Accumulated depreciation and impairment charges as at 1 January | -7.2 | -740.7 | -400.3 | -23.9 |  | -1,172.0
Exchange differences | 0.1 | 1.0 | 1.7 | 0.1 |  | 2.9
Accumulated depreciation on deductions | 0.8 | 1.1 | 48.8 | 3.4 |  | 54.2
Accumulated depreciation on transfers | - | 4.3 | 10.2 | 0.0 |  | 14.5
Depreciation and impairment charges for the year | -0.5 | -98.3 | -66.3 | -2.2 |  | -167.3
Accumulated depreciation and impairment charges as at 31 December | -6.8 | -832.7 | -405.9 | -22.4 |  | -1,267.8
Carrying amount as at 1 January | 384.1 | 1,125.5 | 300.3 | 13.5 | 232.3 | 2,055.6
Carrying amount as at 31 December | 415.0 | 1,370.7 | 332.2 | 12.8 | 272.6 | 2,403.3

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2023 € million | Land and waters | Buildings | Machinery and equipment | Other tangible assets | Prepay- ments and construc- tion in progress | Total 2023
Cost |  |  |  |  |  |
Cost as at 1 January | 352.5 | 1,647.8 | 665.8 | 33.4 | 113.8 | 2,813.3
Exchange differences | -0.7 | 0.0 | -1.3 | 0.3 | 0.2 | -1.5
Additions | 38.8 | 173.7 | 100.1 | 2.0 | 196.6 | 511.2
Acquisitions | - | 1.5 | 1.9 | - | 0.3 | 3.7
Deductions | -1.0 | -1.5 | -74.9 | -0.9 | -2.0 | -80.3
Transfers between items | 1.6 | 44.8 | 9.0 | 2.6 | -76.6 | -18.7
Cost as at 31 December | 391.2 | 1,866.2 | 700.6 | 37.4 | 232.3 | 3,227.7
Accumulated depreciation and impairment charges |  |  |  |  |  |
Accumulated depreciation and impairment charges as at 1 January | -7.3 | -658.5 | -380.5 | -21.6 |  | -1,067.8
Exchange differences | 0.1 | 0.2 | 0.9 | -0.1 |  | 1.1
Accumulated depreciation on deductions | 0.3 | 3.1 | 43.1 | 0.9 |  | 41.2
Accumulated depreciation on transfers | - | 1.5 | -0.6 | -1.0 |  | 0.0
Depreciation and impairment charges for the year | -0.3 | -80.8 | -63.3 | -2.1 |  | -146.5
Accumulated depreciation and impairment charges as at 31 December | -7.2 | -740.7 | -400.3 | -23.9 |  | -1,172.0
Carrying amount as at 1 January | 345.3 | 989.3 | 285.3 | 11.8 | 113.8 | 1,745.5
Carrying amount as at 31 December | 384.1 | 1,125.5 | 300.3 | 13.5 | 232.3 | 2,055.6

3.3 Intangible assets
Accounting policies
Goodwill and trademarks
Goodwill is not amortised but is instead tested for impairment whenever there is an
indication of impairment, and at least annually. For testing purposes, goodwill is allocated to
the cash generating units. Goodwill is measured at initial cost. Any negative goodwill is
immediately recognised as income. For goodwill, a recognised impairment loss is not
reversed.
Intangible assets with indefinite useful lives are not amortised. They are tested for
impairment whenever there is an indication of impairment, and at least annually. Costs for
intangible assets with finite useful lives are initially measured at cost and amortised over the
useful life of the assets. The intangible assets with indefinite useful lives include trademarks
capitalised upon acquisitions, which are recognised at their fair values at the acquisition
date.
Other intangible assets
The intangible assets with finite useful lives are initially measured at cost and amortised
over their useful lives. Such intangible assets include software licences, customer
relationships and licences measured at the fair value at the date of acquisition, and
leasehold interests that are amortised during their estimated lease terms.
The estimated useful lives are:
• Software and licences 3-5 years
• Customer and supplier relationships 5-10 year s
Research and development expenses
The costs of research and development activities have been expensed as incurred, because
the Group does not have development costs eligible for capitalisation. Development costs
previously recognised as an expense are not recognised as an asset in subsequent periods.

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Software
Costs directly attributable to the development of new software are capitalised as part of the
software cost. On the balance sheet, software is included in intangible assets and its cost is
amortised over the useful life of the software. Costs associated with maintaining the
software are recognised as an expense as incurred.
Impairment of non-financial assets
At each balance sheet date, the Group assesses whether there is any indication that an
asset may be impaired. If any such indication exists, the recoverable amount of the asset is
estimated. The recoverable amount of goodwill and intangible assets with indefinite useful
lives is assessed every year whether or not there is an indication of impairment. In addition,
an impairment test is performed whenever there is an indication of impairment.
The recoverable amount is the higher of an asset's fair value less costs to sell and value in
use. Often, it is not possible to estimate the recoverable amount for an individual asset.
Then, as in the case of goodwill, the recoverable amount is determined for the cash
generating unit to which the goodwill or asset belongs.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable
amount. The impairment loss is recognised in the income statement. The previously
recorded impairment of an asset is reversed if, upon reassessment, the recoverable amount
has increased. However, the reversal of an impairment loss of an asset should not exceed
the carrying amount of the asset without impairment loss recognition. For goodwill, a
recognised impairment loss is not reversed under any circumstances.
Critical accounting estimates and assumptions
The recoverable amounts of cash generating units have been determined using calculations
based on value in use. In the calculations, forecast cash flows are based on financial plans
approved by management, covering a period of three years.

2024 € million | Goodwill | Trade- marks | Other intangible assets | Prepay- ments | Total 2024
Cost |  |  |  |  |
Cost as at 1 January | 710.1 | 96.0 | 298.2 | 4.2 | 1,108.5
Exchange difference | -19.6 | -1.5 | -3.5 | - | -24.6
Additions | - | - | 14.2 | 2.0 | 16.2
Acquisitions | 38.5 | 29.8 | 9.9 | - | 78.2
Deductions | - | - | -8.1 | -0.2 | -8.3
Transfers between items | - | - | 6.8 | -2.9 | 3.9
Cost as at 31 December | 729.0 | 124.3 | 317.6 | 3.1 | 1,174.0
Accumulated amortisation and impairment charges |  |  |  |  |
Accumulated amortisation and impairment charges as at 1 January | -46.4 | -10.0 | -177.0 |  | -233.5
Exchange difference | 0.4 | 0.5 | 2.1 |  | 3.0
Accumulated amortisation and impairment charges on disposals |  | - | 14.3 |  | 14.3
Accumulated amortisation and impairment charges on transfers |  | 0.0 | -0.0 |  | -0.0
Amortisation and impairment charges for the year | -40.0 | -1.3 | -39.3 |  | -80.6
Accumulated amortisation and impairment charges as at 31 December | -85.9 | -10.8 | -200.0 |  | -296.7
Carrying amount as at 1 January | 663.7 | 86.0 | 121.2 | 4.2 | 875.1
Carrying amount as at 31 December | 643.0 | 113.5 | 117.7 | 3.1 | 877.3

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2023 € million | Goodwill | Trade- marks | Other intangible assets | Prepay- ments | Total 2023
Cost |  |  |  |  |
Cost as at 1 January | 635.1 | 96.1 | 249.4 | 9.1 | 989.7
Exchange difference | -15.0 | -2.0 | -3.1 | - | -20.1
Additions | - | 0.0 | 19.7 | 2.2 | 21.9
Acquisitions | 90.0 | 2.0 | 14.3 | - | 106.4
Deductions | - | - | -10.0 | -0.0 | -10.0
Transfers between items | - | -0.1 | 28.0 | -7.2 | 20.7
Cost as at 31 December | 710.1 | 96.0 | 298.2 | 4.2 | 1,108.5
Accumulated amortisation and impairment charges |  |  |  |  |
Accumulated amortisation and impairment charges as at 1 January | -46.2 | -9.3 | -155.1 |  | -210.6
Exchange difference | -0.2 | 0.5 | 2.2 |  | 2.5
Accumulated amortisation and impairment charges on disposals |  | - | 14.5 |  | 14.5
Accumulated amortisation and impairment charges on transfers |  | 0.0 | -2.1 |  | -2.1
Amortisation and impairment charges for the year | - | -1.3 | -36.6 |  | -37.8
Accumulated amortisation and impairment charges as at 31 December | -46.4 | -10.0 | -177.0 |  | -233.5
Carrying amount as at 1 January | 588.9 | 86.8 | 94.2 | 9.1 | 779.1
Carrying amount as at 31 December | 663.7 | 86.0 | 121.2 | 4.2 | 875.1

Other intangible assets include software and licences amounting to €42.2 million
(€55.0 million).
Impairment testing
Goodwill is allocated to cash-generating units (CGUs) for impairment testing purposes. The
cash-generating units have been identified at the level of reportable segments at most. The
following table presents the allocation of goodwill and trademarks to cash-generating units.
The trademarks presented in the table are assessed to have indefinite useful lives.

€ million | Trade- marks 2024 | Goodwill 2024 | Trade- marks 2023 | Goodwill 2023
Grocery trade |  |  |  |
Grocery trade, chain operations | - | 76.1 | - | 76.1
Grocery trade, Kespro | 5.3 | 2.0 | 5.3 | 2.0
Building and technical trade |  |  |  |
Technical trade | 58.3 | 147.9 | 58.3 | 152.2
Byggmakker, Norway | 19.8 | 150.7 | 20.8 | 199.3
K-Bygg, Sweden | - | 185.0 | - | 191.0
Davidsen, Denmark | 29.8 | 35.4 | - | -
Car trade | - | 46.1 | - | 43.1
Total | 113.2 | 643.0 | 84.4 | 663.7

Goodwill is tested for impairment whenever there is indication of impairment, and at least
annually. Impairment tests have been carried out during the fourth quarter of 2024 for
goodwill and trademarks with indefinite useful lives. Trademarks with indefinite useful lives
are part of assets acquired in connection with business combinations.
The recoverable amount of a cash-generating unit is determined based on value-in-use
calculations. In the calculations, forecast cash flows are based on financial plans approved by
management, covering a period of three years. The plans are based on external sources
concerning projections for total market growth, weighted with the cash-generating unit’s
own business’ share of the market in question. The key variable used in determining the
forecast cash flows is the development in profitability based on plans approved by
management. The development in profitability is influenced by growth predictions, changes
in products and services selection and pricing, changes in store site network and
development of operating expenses.

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The average compound annual growth rate for the forecast period was 1.8%-15.5% and the
EBITDA ratio range 4.7%-12.7%. Cash flows after the forecast period are estimated based on
a 0.5%-2.0% growth projection, taking into account country-specific differences.
The key variables in impairment testing are the terminal growth rate, discount rate and
EBITDA margin-%. The following table presents the pre-tax discount rate and terminal
growth rate-% for each cash-generating unit.

€ million | Pre-tax discount rate 2024 | Terminal growth rate 2024 | Pre-tax discount rate 2023 | Terminal growth rate 2023
Grocery trade |  |  |  |
Grocery trade, chain operations | 6.5% | 0.5% | 6.8% | 0.5%
Grocery trade, Kespro | 6.3% | 1.5% | 6.5% | 1.5%
Building and technical trade |  |  |  |
Technical trade | 9.1% | 2.0% | 7.6% | 2.0%
Byggmakker, Norway | 8.7% | 2.0% | 7.2% | 2.0%
K-Bygg, Sweden | 7.0% | 2.0% | 7.1% | 2.0%
Davidsen, Denmark | 7.2% | 2.0% |  |
Car trade | 8.5% | 2.0% | 7.2% | 1.5%

The discount rate used is the weighted average cost of capital (WACC) after tax, specified
for each division and country and adjusted for tax effect in connection with the test. The
WACC formula inputs are risk-free rate of return, market risk premium, industry-specific
beta factor, target capital structure, borrowing cost and country risks.
Impairment charges
In the 2024 financial year, a €40 million impairment of goodwill was recognised for the
Norwegian building and home improvement trade chain Byggmakker, which is part of the
building and technical trade segment, influenced by weaker-than-anticipated profit
performance as well as the weak cycle in the Norwegian construction market and high
interest rates. The recoverable amount for the Byggmakker business based on a value-in-use
calculation totalled €411.8 million, and the discount rate used in the calculation was 8.7%
(7.2%). There were no impairment charges recognised on goodwill or intangible rights in the
2023 financial year.
Sensitivity analysis
The sensitivity analysis concerns other than Byggmakker’s impairment test. The most
sensitive to movements in assumptions is the goodwill impairment test for K-Bygg. K-Bygg’s
net sales in 2024 totalled €277.0 million. During the forecast period, the range for change in
K-Bygg’s net sales is 4.9%-33.6%, impacted by the transfer of eight former K-Rauta stores
under the K-Bygg chain in the final quarter of 2024. By the end of the forecast period,
K-Bygg’s EBITDA margin is expected to have grown by 4.4 percentage points from the
EBITDA margin achieved in 2024. The weak construction market has negatively impacted the
realised EBITDA level. In K-Bygg’s impairment test, the recoverable amount exceeded the
carrying amount of the assets tested by €20.9 million. Impairment would be recognised if the
post-forecast period EBITDA margin would decrease by more than 0.3 percentage points, if
the post-forecast period growth percentage would be below 1.7% or if the pre-tax discount
rate was above 7.3%.

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3.4 Leases
Accounting policies
Group as a lessee
The Group leases properties, machinery and equipment for use in its business operations.
At inception of a contract the Group determines whether the contract is, or contains, a
lease. A contract is deemed as a lease if the contract gives the right to control the use of an
identified asset for a period of time in exchange for consideration. At the commencement
date of the lease the Group recognises a right-of-use asset and a lease liability except for
leases of low-value assets and for leases for which the lease term is 12 months or less, for
which the Group applies the practical expedient of the standard. Lease payments for the
short-term leases and leases of low-value assets are recognised as an expense on a straight-
line basis over the lease term. The Group separates the non-lease components, such as
service components, and expenses them as they incur.
Lease liability is recognised at the commencement date of the lease and measured at the
present value of the future lease payments payable during the lease term. The lease
payments are discounted using the interest rate implicit in the lease, if readily available. The
interest rate implicit in the lease is not available for all leases. In such cases, the incremental
borrowing rate is used, which comprises the reference rate, credit spread for the
incremental borrowing, and a potential country and currency risk premium. At the
commencement date of the lease, the measurement of the lease liability includes fixed lease
payments, variable lease payments that depend on an index or a rate, potential residual
value guarantees, and the price of a purchase option if it is reasonably certain the option will
be exercised. Payments of penalties for terminating the lease are also included in the
measurement of the lease liability if the lease term reflects the option to terminate the
lease.
Lease liability is subsequently remeasured when there is a change in lease term due to
reassessment of an option to continue or terminate the lease, or when there is a change in
future lease payments due to changes of an index or a rate. The amount of the
remeasurement of the lease liability is recognised as an adjustment to the right-of-use
asset. If the reduction in lease liability exceeds the right-of-use asset, the difference is
recognised in profit or loss.
Right-of-use asset is measured at cost at the commencement date of the lease. The cost of
the right-of-use asset comprises the amount of the initial measurement of the lease liability.
In addition, the cost comprises any lease payments made at or before the commencement
date, less any lease incentives received, any initial direct costs incurred and an estimate of
costs to be incurred to restore the asset. Subsequently the right-of-use asset is measured at
cost less any accumulated depreciation and impairment losses and adjusted with any
remeasurement of the lease liability. The right-of-use asset is depreciated from the
commencement date of the lease to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term.
If the use of a leased asset is discontinued or a sublease is made to the lease at a lower rate,
the lease contract becomes loss-making and an impairment is recognised to the
corresponding right-of-use asset.
In sale and leaseback transactions, the parties assess whether the transfer of the asset
satisfies the requirements of IFRS 15 for a sale. If the transfer is accounted for as a sale, the
right-of-use asset recognised in the balance sheet will be measured by the portion of the
carrying amount of the original asset that corresponds to the value of the right to use that
remains with the seller. Only the portion of the sales proceeds of the asset corresponding to
the rights transferred to the buyer is presented as sales gain or loss. If the consideration for
the sale of the asset or payments for the lease do not equal the fair value, the difference is
recognised as an adjustment to the asset’s sales proceeds. Any below-market terms are
accounted for as a prepayment of lease payments, and any above-market terms are
accounted for as financial liability. If the requirements for a sale are not satisfied, the Group
will continue to recognise the transferred asset in its balance sheet, and will present the
transfer proceeds as financial liability.
Critical accounting estimates and assumptions
When recognising leases in the balance sheet, assessments must be made concerning the
lease term, use of extension options and the discount rate used. When assessing the lease
term of a new lease, extension options are not acknowledged until a commitment has been
made to use the extension option. The assessments may differ from the actualised future
lease terms and conditions.

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Right-of-use assets
The Group leases for its business operations facilities required for retail and for the logistics
operations serving retail. The Group's lease contracts are typically fixed term and in line with
local market practices. Some of the leases for the properties contain extension options. The
Group also leases machinery and equipment used in its business operations, such as vehicles,
logistics machinery and equipment, and equipment for recycling waste at stores and logistics
operations. The Group has classified office machinery and equipment as low-value assets,
and lease payments for them are recognised as an expense in the income statement.

2024 € million | Land and buildings | Machinery and equipment | Total
Carrying amount as at 1 January | 1,799.9 | 17.0 | 1,816.9
Additions | 444.0 | 13.5 | 457.5
Acquisitions | 2.7 | 9.7 | 12.3
Transfer between items | 0.0 | -0.4 | -0.4
Depreciation | -348.5 | -11.0 | -359.5
Impairment charges | -12.8 | - | -12.8
Deductions | -36.9 | -0.2 | -37.1
Exchange differences | -8.9 | -0.4 | -9.3
Carrying amount as at 31 December | 1,839.5 | 28.2 | 1,867.7

2023 € million | Land and buildings | Machinery and equipment | Total
Carrying amount as at 1 January | 1,718.9 | 18.6 | 1,737.6
Additions | 431.0 | 6.2 | 437.3
Acquisitions | 14.8 | 0.9 | 15.7
Depreciation | -339.3 | -8.0 | -347.3
Impairment charges | -5.9 | - | -5.9
Deductions | -10.2 | -0.4 | -10.6
Exchange differences | -9.5 | -0.3 | -9.8
Carrying amount as at 31 December | 1,799.9 | 17.0 | 1,816.9

The lease commitments for leases not commenced on 31 December 2024 to which the Group
is committed totalled €298.8 million (€233.2 million).
Lease expenditure

€ million | 2024 | 2023
Operating profit |  |
Depreciation and impairment charges on right-of-use assets | -375.5 | -353.2
Lease payments for short-term leases | -4.3 | -3.2
Lease payments for low-value assets | -3.5 | -3.6
Variable lease payments | -0.7 | -1.0
Financial expenses |  |
Interest expense for lease liabilities | -78.6 | -73.4
Total | -462.6 | -434.3

Maturity of lease liabilities and related finance costs are detailed in Note 4.3.
Cash flow from leases

€ million | 2024 | 2023
Interest expense for lease liabilities | -78.6 | -73.4
Repayments of lease liabilities | -370.9 | -354.3
Lease payments in the income statement | -8.5 | -7.7
Total | -458.0 | -435.4

Accounting policies
Group as a lessor
In lessor accounting leases are classified as operating leases or finance leases. The Group
assesses at the commencement date of a lease whether it is classified as an operating lease
or a finance lease. Leases where the risks and rewards incidental to ownership are
transferred to the lessee are classified as finance lease agreements. At the commencement
date of the lease, the lessor recognises in the balance sheet a finance lease receivable that
corresponds to the net investment in the lease. Lease income for operating leases is
recognised in the income statement on a straight-line basis over the lease term.
Kesko leases premises to entrepreneurs other than K-retailers to ensure that the
combination of services at a store site supports Kesko’s overall profit generation. Such

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premises typically include so-called store entrance shops at large retail outlets. Kesko has
store entrance shops both in its own properties and in leased properties. The entrance shops
in leased properties include a sublease agreement where Kesko has the head lease. The
entrance shop leases are classified as operating leases. The business premises owned or
leased by Kesko and used by K-retailers to conduct chain operations are provided to the
retailers under chain agreements, and are not treated as leases. The treatment of income
based on chain agreements is detailed in Note 2.1. K Auto Leasing practices leasing
operations of vehicles. Vehicle lease contracts are classified as operating leases.
Lease income

€ million | 2024 | 2023
Lease income for operating leases | 75.0 | 68.5

3.5 Inventories
Accounting Policies
Inventories are measured at the lower of cost and net realisable value. Net realisable value
is the estimated selling price in the ordinary course of business less direct costs necessary
to make the sale. The cost is determined using weighted average costs. The cost of finished
goods comprises all costs of purchase including freight. The cost of self-constructed goods
comprises all costs of conversion including direct costs and allocations of variable and fixed
production overheads. The cost excludes borrowing costs.
Critical accounting estimates and assumptions
The Group regularly reviews inventories for obsolescence and turnover, and for possible
reduction of net realisable value below cost, and records a write-down as necessary. Such
reviews require assessments of future demand for products. Possible changes in these
estimates may cause changes in inventory measurement in future periods.

€ million | 2024 | 2023
Goods | 1,096.1 | 1,078.4
Prepayments | 5.4 | 5.5
Total | 1,101.5 | 1,083.9
Write-down of inventories to net realisable value | 70.2 | 72.3

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3.6 Trade and other current receivables
Accounting policies
Trade receivables and other current receivables are recognised in the amounts of the initial
receivable. According to the IFRS 9 impairment model, impairments must be recognised on
the basis of expected credit losses. The Group has adopted the standard’s simplified
approach for recognising impairment of trade receivables using the provision matrix. For
the impairment model, Group companies have been classified into risk categories on the
basis of their business model and realised historical credit losses. In addition, impairment is
recognised, if there is other evidence of a debtor's insolvency, bankruptcy or liquidation.
Impairment is recognised as an expense in other operating expenses. If an amount
previously written off is subsequently settled, it is recognised as a reduction of other
operating expenses
Critical accounting estimates and assumptions
The Group companies apply a uniform practice to measuring receivables past due. Possible
changes in customers' solvency may cause changes in the measurement of trade
receivables in future periods.

€ million | 2024 | 2023
Interest-bearing receivables |  |
Interest-bearing loans and receivables | 4.2 | 4.3
Total interest-bearing receivables | 4.2 | 4.3
Trade receivables | 957.9 | 970.5
Income tax assets | 12.9 | 6.6
Other non-interest-bearing receivables |  |
Non-interest-bearing loans and receivables | 38.0 | 44.6
Prepaid expenses and deferred income | 249.1 | 258.0
Total other non-interest-bearing receivables | 287.1 | 302.6
Total | 1,262.1 | 1,284.0

The most material part of prepaid expenses relates to refunds of purchases. The fair values of
current trade and loan receivables, and those of current interest-bearing receivables are
estimated to equal the carrying amounts due to their short maturities.
Ageing analysis of trade receivables
Business entities are responsible for managing the credit risk associated with amounts due
from customers. Terms and conditions of credit sale and collateral requirements as well as
decision-making authorisations for credit facilities have been determined for managing credit
risk within businesses. Credit control identifies customers with risk and ensures that credit
decisions are based on up-to-date information on a customer’s solvency and any changes in
solvency are considered. The economic uncertainty is taken into account when estimating
expected credit losses in connection with measurement of trade receivables. The Group’s
trade receivables are from a large number of individual customers, and receivables do not
contain significant risk concentrations. The seasonality of businesses impacts the amount of
trade receivables in the consolidated statement of financial position. The amount of credit
losses remained moderate despite the economic uncertainty.

€ million | 2024 | 2023
Trade receivables not due | 878.3 | 875.8
1-7 days past due trade receivables | 40.6 | 58.0
8-30 days past due trade receivables | 17.6 | 14.7
31-60 days past due trade receivables | 4.1 | 4.7
Over 60 days past due trade receivables | 17.2 | 17.1
Total | 957.9 | 970.5

In Finland the key part of the business is done in cooperation with retailers and within trade
receivables, €357.7 million (€382.7 million) were from chain retailers. The collateral for
retailer receivables is an overdraft facility granted by a Kesko associate, Vähittäiskaupan
Takaus Oy, with the maximum always limited to the realisable value of the counter security
from the K-retailer's company and its entrepreneur to Vähittäiskaupan Takaus Oy. At the end
of the financial year, the aggregate value of counter securities was €187.1 million
(€199.5 million). In addition, the collateral for receivables includes other collaterals, such as
business mortgages and other pledged assets.
Trade receivables include an impairment charge to a total of €30.6 million (€24.4 million).
The aggregate amount of credit losses and impairments recognised in the profit for the
financial year was €7.1 million (€5.1 million)
The amount of trade receivables with renegotiated terms totalled €2.1 million (€1.4 million).

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3.7 Pension assets
Accounting policies
The Group operates both defined contribution pension plans and defined benefit pension
plans. The contributions payable under defined contribution plans are recognised as
expenses in the income statement for the period to which the payments relate. In defined
contribution plans, the Group does not have a legal or constructive obligation to pay further
contributions, in case the payment recipient is unable to pay the retirement benefits.
In defined benefit plans, the Group may incur obligations or assets after the payment of the
contribution. The pension obligation represents the present value of future cash flows from
the benefits payable. The present value of pension obligations has been calculated using the
projected unit credit method. Pension costs are expensed during employees' service lives
based on actuarial calculations. The discount rate assumed in calculating the present value
of the pension obligation is the market yield of high-quality corporate bonds. Their maturity
substantially corresponds to the maturity of the pension liability. The assets corresponding
to the pension obligation of the retirement benefit plan are carried at fair values at the
balance sheet date. Actuarial gains and losses are recognised in comprehensive income in
the income statement.
Critical accounting estimates and assumptions
Items relating to employee benefits are calculated using several factors that require the
application of judgement. Pension calculations under defined benefit plans in compliance
with IAS 19 are based on, among others, the following factors that rely on management
estimates:
• discount rate used in calculating pension expenses and obligations and net finance cost
for the period
• future salary increase
• employee service life.
Changes in these assumptions can significantly impact the amounts of pension obligation
and future pension expenses. In addition, a significant part of the pension plan assets is
invested in real estate and shares, whose value adjustments impact the recognised amount
of pension assets.
The Group operates several pension plans in different operating countries. In Finland, the
statutory pension provision of personnel is provided through pension insurance companies
and the voluntary supplementary pension provision is mainly provided through Kesko
Pension Fund. The statutory pension provision provided through pension insurance
companies is a defined contribution plan. Defined benefit plans comprise mainly
supplementary pension provision provided through Kesko Pension Fund.
Pension plans in foreign subsidiaries are managed in accordance with local regulations and
practices, and they are mainly defined contribution plans.
Kesko Pension Fund
Kesko Pension Fund is a pension provider of its members providing supplementary
retirement benefits to employees who are beneficiaries of the Pension Fund. New members
have not been included in the Pension Fund after 9 May 1998. As the conditions set out in
the Fund's rules are met, beneficiaries between 60 and 65 years of age are granted an old-
age pension. The amount of retirement benefit granted by the Fund is the difference between
the employee's retirement benefit based on his/her pensionable salary calculated in
accordance with the Fund's rules and the statutory pension. In addition to the individually
calculated pensionable salary, the retirement benefit amount of each beneficiary is impacted
by the duration of his/her membership of the Pension Fund. The Pension Fund had 1,996
beneficiaries, of whom 245 were active employees and 1,751.were retired employees. Kesko
Group's contribution to the Pension Fund's obligation is 96.3% (96.4%). The notes present
Kesko Group's interest in the Pension Fund except for the analysis of assets by category and
the maturity analysis of the obligation.
In addition to its rules, the Pension Fund's operations are regulated by the Employee Benefit
Funds Act, the decrees under the Act and official instructions, and the Fund's operations are
supervised by the Financial Supervisory Authority. The regulations include stipulations on the
calculation of pension obligation and its coverage, for example. The pension obligation shall
be fully covered by the plan assets, any temporary deficit is only allowed exceptionally. In
addition, the regulations include detailed stipulations on the acceptability of the covering
assets and the diversification of investment risks.
Kesko Pension Fund did not charge contributions from its members during 2024 or 2023.

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The defined benefit asset recognised in the balance sheet is determined as
follows

€ million | 2024 | 2023
Present value of defined benefit obligation | -214.6 | -241.0
Fair value of plan assets | 342.1 | 320.3
Net assets recognised in the balance sheet | 127.5 | 79.6
Movement in the net assets recognised in the balance sheet |  |
As at 1 January | 79.6 | 86.9
Income/cost recognised in the income statement | 0.2 | -1.2
Remeasurement | 46.9 | -6.8
Contributions to plan and plan costs | 0.7 | 0.3
As at 31 December | 127.5 | 79.6

€ million | Present value of defined benefit obligation | Fair value of plan assets | Total
As at 1 January 2024 | -241.0 | 320.3 | 79.6
Current service cost | -1.9 |  | -1.9
Gains or losses on settlement | 0.1 |  | 0.1
Interest cost/income | -7.2 | 9.8 | 2.5
Plan costs |  | -0.5 | -0.5
| -9.0 | 9.3 | 0.2
Remeasurement |  |  |
Return on plan assets |  | 20.4 | 20.4
Gain/loss from changes in financial assumptions | 26.2 |  | 26.2
Experience gains/losses | 0.3 |  | 0.3
| 26.5 | 20.4 | 46.9
Contributions to plan |  | 0.7 | 0.7
Other Changes | -5.9 | 6.3 | 0.1
Benefit payments | 14.9 | -14.9 | -
As at 31 December 2024 | -214.6 | 342.1 | 127.5

€ million | Present value of defined benefit obligation | Fair value of plan assets | Total
As at 1 January 2023 | -225.2 | 312.1 | 86.9
Current service cost | -2.3 |  | -2.3
Gains or losses on settlement | -1.5 |  | -1.5
Interest cost/income | -7.7 | 10.9 | 3.2
Plan costs |  | -0.5 | -0.5
| -11.6 | 10.4 | -1.2
Remeasurement |  |  |
Return on plan assets |  | 11.4 | 11.4
Gain/loss from changes in financial assumptions | -15.1 |  | -15.1
Experience gains/losses | -3.2 |  | -3.2
| -18.3 | 11.4 | -6.8
Contributions to plan |  | 0.3 | 0.3
Benefit payments | 14.0 | -14.0 | -
As at 31 December 2023 | -241.0 | 320.3 | 79.6

Plan assets were comprised as follows in 2024

€ million | Quoted | Unquoted | Total
Europe |  |  |
Equity instruments |  | 29.2 | 29.2
Debt instruments | 50.6 | 7.6 | 58.2
Investment funds | 74.0 | 15.4 | 89.5
Properties |  | 85.6 | 85.6
United States |  |  |
Equity instruments |  |  |
Investment funds | 61.7 |  | 61.7
Other countries |  |  |
Investment funds | 23.6 |  | 23.6
Total | 209.9 | 137.8 | 347.8

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Plan assets were comprised as follows in 2023

€ million | Quoted | Unquoted | Total
Europe |  |  |
Equity instruments |  | 28.5 | 28.5
Debt instruments | 57.4 | 3.2 | 60.6
Investment funds | 72.9 | 15.9 | 88.8
Properties |  | 85.5 | 85.5
United States |  |  |
Equity instruments |  |  |
Investment funds | 51.2 |  | 51.2
Other countries |  |  |
Investment funds | 16.9 |  | 16.9
Total | 198.5 | 133.1 | 331.6

€ million | 2024 | 2023
Kesko Corporation shares included in fair value | - | -
Properties leased by Kesko Group included in fair value | 85.6 | 85.5

Principal actuarial assumptions

| 2024 | 2023
Discount rate | 3.35% | 3.02%
Salary growth rate | 2.27% | 2.96%
Inflation | 1.99% | 2.48%
Pension growth rate | 1.80% | 2.67%
Average service expectancy, years | 4 | 5

Weighted average duration of pension obligations and expected maturity
analysis of undiscounted pension obligations

| 2024 | 2023
Weighted average duration of pension obligations, years | 11 | 12
Expected maturity analysis of undiscounted pension obligations, € million |  |
Less than 1 year | 15.6 | 15.4
Between 1−10 years | 114.5 | 121.4
Between 10−20 years | 96.1 | 109.2
Between 20−30 years | 62.0 | 75.6
Over 30 years | 40.1 | 55.5
Total | 328.3 | 377.0

Risks related to pension plan
Asset related risks
The Pension Fund's investments comprise properties, equity index funds, private equity
funds, unlisted shares and both long-term and short-term money market investments. The
Pension Fund's investment policy defines the investment restrictions pertaining to classes of
assets and the allowed investees. The investment plan, annually approved by the Pension
Fund board, sets the investment allocation and return targets for the year ahead. The
objective of investing activity is to secure a return on the investments and their convertibility
into cash, as well as ensuring appropriate diversity and diversification of investments. On an
annual basis, the objective is to exceed the Pension Fund's obligation expenses and costs, so
that contributions need not be charged to the members. The long-term target return on
investment activity is 5.0%. The risks involved in investment activity are managed by
continuously monitoring market developments and analysing the adequacy of the return and
risk potential of the investments. The returns compared to chosen reference indices and the
breakdown of investments are reported on a monthly basis. In 2024 , the realised return on
investing activity was 10.21%.
If the return on investment assets underperforms the discount rate applied to the calculation
of the present value of defined pension obligation, a deficit in the plan may arise. The

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diversification of assets is aimed to reduce this risk in varying financial conditions. If a deficit
is created in the pension plan, such that the pension obligation is not fully covered, Pension
Fund members are obligated to pay contributions to the Fund in order to cover the
obligation. Calculated in compliance with the IAS 19 standard, the amount of plan assets
exceeded the plan obligation by €131.8 million as at 31.12.2024. Local rules concerning the
Pension Fund may also create a contribution obligation in situations in which the IAS 19
obligation is fully covered. In such a case, the amount of contributions charged increases the
amount of pension assets according to IAS 19.
Obligation related risks
In addition to the general level of interest rates, the defined benefit obligation may be
impacted by changes in the statutory pension provision, future salary increases, index-based
pension increases and changes in life expectancy. The pension promise made to the Fund's
beneficiaries is tied to the amount of pensionable salary and it is a lifelong benefit. The total
pension amount consists of the statutory pension and the supplementary pension provided
by the Fund. Salary increases will increase the future pension amount. If changes in statutory
pension provision, such as an increase in the retirement age or reduction of pension
provision, were compensated to pensioners by the supplementary pension, the changes
would increase the defined benefit obligation. The amount of future pensions is adjusted
annually with an index-based increase in accordance with the terms and conditions of the
plan. The extension of life expectancy will result in an increase in plan obligation.
Changes in the general level of interest rates and the market yield of high-quality bonds have
an impact on the present value of the defined benefit obligation. When the level of interest
rates falls, the present value of the defined benefit obligation rises. Because the Pension
Fund's investment assets are invested and their return targets are set for long terms, changes
in the annual return on investments do not necessarily correlate in the short term with
changes in the discount rate applied to the defined benefit obligation.
Sensitivity analysis
The sensitivity of the defined benefit obligation to changes in the principal assumptions is
presented in the following table.

Actuarial assumption | Change in assumption | Impact on defined benefit obligation, increase | Impact on defined benefit obligation, decrease
2024 |  |  |
Discount rate | 0.50% | -5.35% | 5.86%
Salary growth rate | 0.50% | 0.65% | -0.46%
Pension growth rate | 0.50% | 5.10% | -4.70%
2023 |  |  |
Discount rate | 0.50% | -5.87% | 6.52%
Salary growth rate | 0.50% | 0.74% | -0.65%
Pension growth rate | 0.50% | 5.60% | -5.10%

The impacts of sensitivity analysis have been calculated so that the impact of a change in the
assumption is calculated while assuming that all other assumptions are constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may correlate with each
other. The sensitivity of the defined benefit obligation has been calculated using the same
method as when calculating the pension obligation recognised within the statement of
financial position.

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3.8 Shares in associates and joint ventures
Associates and joint ventures
Associates and joint ventures are treated as equity-accounted investments. The shares in
associates and joint ventures are not quoted on the market. Associates and joint ventures are
listed in Note 5.1. Related party information is presented in Note 5.2.
Significant joint ventures
The Group has a significant joint venture, UAB Kesko Senukai Lithuania. Kesko Senukai
Group engages in building and home improvement trade in Lithuania, Estonia, Latvia and
Belarus. The Group’s parent company, UAB Kesko Senukai Lithuania, is a limited liability
company registered in Lithuania. Kesko Group has a 50.0% holding in Kesko Senukai Group.
UAB KS Holding is a limited liability company registered in Lithuania that engages in real
estate development and real estate rental. Its operations are closely related to the operations
of Kesko Senukai Group. Kesko Group’s holding in KS Holding Group is 50.0%.

Summary of financials of significant joint ventures, € million | 31.12.2024 | 31.12.2023
Current assets | 416.7 | 413.9
Non-current assets | 402.1 | 426.8
Current liabilities | 293.4 | 301.0
Non-current liabilities | 268.8 | 292.9
The above-mentioned balance sheet items contain the following items: |  |
Cash and cash equivalents | 26.3 | 69.7
Current interest-bearing liabilities | 46.6 | 47.1
Non-current interest-bearing liabilities | 268.7 | 292.8

Summary of financials of significant joint ventures, € million | 1.1.-31.12.2024 | 1.1.-31.12.2023
Net sales | 1,199.6 | 1,174.9
Net profit attributable to owners of the parent | 41.8 | 37.9
Comprehensive income for the year attributable to owners of the parent | 42.8 | 34.3
Group share of profit for the year | 20.9 | 19.0
Share of result of the joint venture consolidated in the consolidated financial statements | 20.9 | 19.0
Share of other comprehensive income of the joint venture consolidated in the consolidated financial statements | 21.4 | 17.1
The above-mentioned income statement items contain the following items: |  |
Depreciation, amortisation and impairment | -56.1 | -53.9
Interest income | 1.1 | 1.1
Interest expense | -12.9 | -11.9
Income tax | -4.5 | -4.7
Dividends and repayment of capital received from joint ventures | -16.4 | -21.7

Reconciliation for balance sheet value of joint ventures, € million | 2024 | 2023
Net assets of joint ventures | 256.6 | 246.7
Minority interest in net assets | 20.6 | 22.0
Group interest in net assets | 117.7 | 112.6
Goodwill | 19.2 | 19.2
Fair value allocations | 15.0 | 15.0
Balance sheet value of joint ventures | 151.8 | 146.8

Significant associates
Mercada Oy is a limited liability company registered in Finland, which operates in real estate
investment. Mercada owns, manages and develops retail sites mainly used by Kesko Group in

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Finland. Kesko Corporation's holding in Mercada is 33.3%. Mercada’s three shareholders
have equal stakes in the company.

Summary of financials of a significant associate, € million | 2024 | 2023
Current assets | 20.0 | 22.1
Non-current assets | 495.4 | 506.7
Current liabilities | 6.8 | 11.1
Non-current liabilities | 467.9 | 477.6
Equity attributable to equity holders of the parent | 40.8 | 40.1
Net sales | 54.2 | 51.8
Net profit for the year | 0.7 | -4.1
Comprehensive income for the year, total | 0.7 | -4.2

Reconciliation for balance sheet value of an associate, € million | 2024 | 2023
Net assets of the associate | 40.8 | 40.1
Group interest in net assets | 13.6 | 13.4
Balance sheet value of the associate | 13.6 | 13.4

Other associates

Summary of financials of other associates, € million | 2024 | 2023
Group share of profit for the year | 3.0 | 2.8
Group share of comprehensive income for the year | 3.0 | 2.8
Balance sheet value of associates in the consolidated statement of financial position | 74.3 | 72.7

The table presents the associates Vähittäiskaupan Takaus Oy and K-Tilipalvelu Oy, which sell
services to Kesko and retail companies of K-retailers.
3.9 Provisions
Accounting policies
A provision is recognised when the Group has a present legal or constructive obligation as
the result of a past event, and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and that a reliable estimate can
be made of the amount of the obligation. Provision amounts are reviewed on each balance
sheet date and adjusted to reflect the current best estimate. Changes in provisions are
recorded in the income statement in the same item in which the provision was originally
recognised.
A warranty provision is recognised when a product covered by warranty provisions is sold.
The provision amount is based on historical experience about the level of warranty
expenses.
Critical accounting estimates and assumptions
The existence of criteria for recognising provisions and the amounts of provisions are
determined based on estimates of the existence and amount of the obligation. Estimates
may differ from the actual future amount of the obligation and with respect to the existence
of the obligation.

€ million | Warranty provisions | Other provisions | Total
Provisions as at 1 Jan. 2024 | 6.6 | 12.3 | 18.9
Foreign exchange effets | 0.0 | -0.1 | -0.1
Additional provisions | 5.5 | 7.4 | 12.9
Unused amounts reversed | -3.0 | -0.9 | -3.9
Amounts charged against provisions | -1.4 | -7.0 | -8.4
Provisions as at 31 Dec 2024 | 9.0 | 10.5 | 19.5
Analysis of total provisions |  |  |
Non-current | 3.2 | 3.1 | 6.3
Current | 5.8 | 7.4 | 13.2

The largest items in other provisions are costs related to maintenance agreements of vehicles
and machines sold by Group companies, property cost for empty store sites, and
restructuring costs. The average duration for maintenance agreements is 3-4 years.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4. CAPITAL STRUCTURE AND FINANCIAL RISKS
4.1 Capital management
Kesko Group’s objectives in capital management include target rates set for the Group’s
solvency and liquidity. The Group’s capital structure (equity-to-debt ratio) is managed at
Group level. The targets for the Group’s solvency and liquidity are set with the purpose of
securing the Group’s liquidity in all market situations, enabling the implementation of Group
strategy, and increasing shareholder value. The targets have been set for the performance
indicator ‘interest-bearing net debt/EBITDA’. Some of the Group’s interest-bearing liabilities
include covenants, whose terms and conditions have been taken into account in the above
target rate. The Group does not have a credit rating from any external credit rating
institution.
Target levels for Kesko Group’s performance indicators are approved by the Board of
Directors of Kesko Corporation. The Board confirmed medium-term financial targets for the
company on 27 May 2021. The medium-term financial targets for profitability are a
comparable operating margin, % of over 6.0% (previously 5,5%) and a comparable return on
capital employed of over 14.5% (previously 12,5%). As for financial position, the Group
continues to target a maximum interest-bearing net debt/EBITDA of 2.50, excluding the
impact of IFRS 16.

€ million | 2024 | 2023
Interest-bearing liabilities and lease liabilities in the consolidated statement of financial position | 3,396.3 | 2,787.0
- Lease liabilities | 2,051.0 | 1,997.9
- Other current financial assets | 15.0 | 15.4
- Cash and cash equivalents | 473.1 | 211.9
Interest-bearing net debt excluding lease liabilities | 857.2 | 561.9
Operating profit | 579.5 | 695.4
+ depreciation, amortisation and impairment | 247.9 | 184.0
+ depreciation and impairment charges for right-of-use-assets | 375.5 | 353.2
- lease payments for right-of-use-assets | 453.2 | 430.7
EBITDA excluding the impact of IFRS 16 | 749.7 | 801.8
Interest bearing net debt/EBITDA excluding the impact of IFRS 16 | 1.1 | 0.7

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Reconciliation of net debt
The Group determines net debt by deducting the Group's liquid assets, which comprise cash
and cash equivalents and other current financial assets, from interest-bearing short-term and
long term-liabilities.
The Group had liquid assets of €488.1 million (€227.3 million) on 31 December 2024.
Interest-bearing liabilities on 31 December 2024 totalled €3,396.3 million (€2,787.0 million),
of which lease liabilities accounted for €2,051.0 million (€1,997.9 million). Interest-bearing
net debt totalled €2,908.2 million (€2,559.8 million), and interest-bearing net debt excluding
lease liabilities totalled €857.2 million (€561.9 million).

€ million | 2024 | 2023
Financial assets at amortised cost (maturing in less than 3 months) | 185.2 | 3.3
Cash and cash equivalents | 287.9 | 208.6
Other current financial assets | 15.0 | 15.4
Borrowings - repayable within one year (including overdraft) | -291.3 | -98.5
Lease liabilities - repayable within one year | -422.2 | -350.6
Borrowings - repayable after one year | -1,054.0 | -690.7
Lease liabilities - repayable after one year | -1,628.8 | -1,647.2
Interest bearing net debt | -2,908.2 | -2,559.8

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€ million | Carrying amount as at 1 Jan. 2024 | Cash flows | Business acquisitions and divestments | Net changes of lease liabilities | Foreign exchange adjustments | Carrying amount as at 31 Dec. 2024
Lease liabilities due within 1 year | -350.6 | 370.9 | -3.4 | -441.0 | 1.9 | -422.2
Lease liabilities due after 1 year | -1,647.2 |  | -8.7 | 19.1 | 8.0 | -1,628.8
Borrowings due within 1 year | -98.5 | -191.5 | -1.3 |  | 0.0 | -291.3
Borrowings due after 1 year | -690.7 | -343.1 | -20.3 |  | 0.0 | -1,054.0
Other current financial assets | 15.4 | -0.4 | - |  | - | 15.0
Cash and overdraft | 208.6 | 57.8 | 21.7 |  | -0.3 | 287.9
Financial assets at amortised cost | 3.3 | 181.9 | - |  | - | 185.2
Net debt | -2,559.8 | 75.7 | -11.9 | -421.9 | 9.7 | -2,908.2

€ million | Carrying amount as at 1 Jan. 2023 | Cash flows | Business acquisitions and divestments | Net changes of lease liabilities | Foreign exchange adjustments | Carrying amount as at 31 Dec. 2023
Lease liabilities due within 1 year | -328.1 | 354.3 | -3.4 | -374.8 | 1.4 | -350.6
Lease liabilities due after 1 year | -1,592.0 |  | -12.1 | -51.6 | 8.4 | -1,647.2
Borrowings due within 1 year | -252.6 | 154.2 | - |  | 0.0 | -98.5
Borrowings due after 1 year | -245.5 | -445.2 | - |  | - | -690.7
Other current financial assets | 68.6 | -53.2 | - |  | - | 15.4
Cash and overdraft | 228.5 | -28.1 | 8.2 |  | -0.1 | 208.6
Financial assets at amortised cost | 17.0 | -13.7 | - |  | - | 3.3
Net debt | -2,104.2 | -31.7 | -7.3 | -426.4 | 9.8 | -2,559.8

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4.2 Shareholders' equity
Accounting principles
The Group classifies the instruments it has issued either in equity or in financial liabilities
based on their nature. An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its liabilities. Expenses related to the
issuance or acquisition of equity instruments are presented as an allowance for equity. If
Kesko Corporation acquires equity instruments of its own, their cost is deducted from
equity.
The dividend proposed by the Board of Directors to the General Meeting has not been
deducted from equity. Instead, dividends are recognised on the basis of the resolution by
the General Meeting.
Change in share numbers and equity reserves

| Number of shares |  |  |  |
Share capital | A | B | Total | Share capital € million | Reserve of invested non-restricted equity € million | Share premium € million | Total € million
As at 1 January 2023 | 126,948,028 | 270,510,619 | 397,458,647 | 197.3 | 197.8 | 266.9 | 662.0
Change in treasury shares |  | -310,864 | -310,864 |  |  |  |
As at 31 December 2023 | 126,948,028 | 270,821,483 | 397,769,511 | 197.3 | 197.8 | 266.9 | 662.0
Change in treasury shares |  | -186,897 | -186,897 |  |  |  |
As at 31 December 2024 | 126,948,028 | 271,008,380 | 397,956,408 | 197.3 | 197.8 | 266.8 | 661.9
Number of votes | 1,269,480,280 | 271,008,380 | 1,540,488,660 |  |  |  |

The number of B shares and the total number of A- and B shares are excluding treasury shares, which totalled 2,122,600 (2,309,497).
Treasury shares
On 31 December 2024, the company held a total of 2,122,600 of its own B shares that had
been acquired based on the Board authorisation granted by the General Meeting in the
financial years 2018 and 2014. The current number of B shares acquired in the year 2018
totals 2,000,000 and the number of shares acquired in 2014 122,600. The share numbers
correspond to numbers calculated after the share split carried out in 2020. The shares are
held by the company as treasury shares and the Board has the right to issue them. The
€24.4 million cost of shares for the B shares acquired in the 2018 financial year and held by
the company and the €1.0 million cost of shares for the B shares acquired in 2014 have been
deducted from retained earnings in equity. The Board has the authorisation granted by the
Annual General Meeting on 26 March 2024 to decide on the issuance of a maximum of
33,000,000 B series shares and to decide on the repurchase of a maximum of 16,000,000
Kesko B shares. The authorisation is valid until 30 June 2025. Information on share-based
payments has been given in Note 5.3.

| pcs
B shares held by the Company as at 31 Dec. 2023 | 2,309,497
Transfer, share-based compensation plan | -203,997
Returned during the period | 17,100
B shares held by the Company as at 31 Dec. 2024 | 2,122,600

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Dividends
After the balance sheet date, the Board of Directors proposed the distribution of a dividend
of €0.90 per share. The dividend distributed for the profit for 2023 was €1.02 per share.
Equity and reserves
Equity consists of share capital, share premium, reserve of invested non-restricted equity,
other reserves, revaluation reserve, currency translation differences and retained earnings
net of treasury shares.
Share premium
The amount exceeding the par value of share received by the Company in connection with
share subscriptions was recorded in the share premium in cases where options had been
granted under the old Limited Liability Companies Act (29 Sept. 1978/734). As at the end of
the financial year, the share premium was €197.8 million.
Reserve of invested non-restricted equity
The reserve of invested non-restricted equity, €24.1 million, includes the other equity-related
investments and share subscription prices to the extent not designated to be included in
share capital.
Other reserves
Other reserves, a total of €242.7 million, have mainly been created and increased as a result
of resolutions by the General Meeting. Other reserves mainly comprise contingency reserves
to a total amount €242.3 million at the end of the financial year.
Currency translation differences
Currency translation differences arise from the translation of foreign operations’ financial
statements. Exchange differences arising from monetary items that form a part of a net
investment in a foreign operation or exchange differences from loans designated as hedges
for foreign net investments and regarded as effective, are also included in currency
translation differences. The change in currency translation differences is stated within
comprehensive income.
Revaluation reserve
The revaluation reserve includes the effective portion of the change in the fair value of
derivatives for which cash flow hedge accounting is applied. Cash flow hedges include
electricity derivatives. The change in the reserve is stated within comprehensive income. The
result of cash flow hedging has been presented in Note 4.3 Financial risks.
4.3 Financial risks
With respect to financial risk management, the Group observes a uniform treasury policy
that has been approved by the Company's Board of Directors. Compliance with this policy
and developments in the Group’s financial situation are monitored by the Board’s Audit
Committee. The Group Treasury is centrally responsible for obtaining financial resources for
the Group, for liquidity management, relations with providers of finance, and the
management of financial risks. In the main, the Group’s financial resources have been
obtained through the parent company, and the Group Treasury arranges financial resources
for subsidiaries in their functional currencies. For subsidiaries with significant external
ownership, the Group has not guaranteed financial liabilities in excess of its ownership
interest.
Foreign exchange risks
Kesko Group conducts business operations in eight countries, in addition to which it makes
purchases from numerous countries. In consequence, the Group is exposed to various
foreign exchange risks arising from net investments in foreign operations (translation risks)
and from assets, liabilities and forecast transactions (transaction risks) denominated in
foreign currencies.
The Group companies’ financial resources are arranged in their functional currencies. The
parent company bears the ensuing foreign exchange risk and hedges the risk exposure using
derivatives or borrowings denominated in the relevant foreign currencies.
Translation risks
The Group is exposed to foreign currency translation risks relating to net investments in
subsidiaries outside the euro zone held on the balance sheet. This balance sheet exposure
has not been hedged. The hedge can be designated if equity is repatriated, or if a currency is
expected to be exposed to a significant devaluation risk. The most significant translation

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exposures are the Norwegian krone and the Swedish krona. Relative to the Group's volume
of operations and the balance sheet total, the foreign currency translation risk is low.

Group's translation exposure as at 31 Dec. 2024 € million | DKK | NOK | PLN | SEK
Net investment | 164.0 | 418.7 | 95.6 | 355.1

Group's translation exposure as at 31 Dec. 2023 € million | DKK | NOK | PLN | SEK
Net investment | - | 487.2 | 85.2 | 297.5

The following table shows how a 10% weakening or strengthening of the functional
currencies of Group companies against the euro would affect the Group’s equity.

Sensitivity analysis, impact on equity as at 31 Dec. 2024, € million | DKK | NOK | PLN | SEK
Weakening 10% | -14.9 | -38.1 | -8.7 | -32.3
Strengthening 10% | 18.2 | 46.5 | 10.6 | 39.5

Sensitivity analysis, impact on equity as at 31 Dec. 2023, € million | DKK | NOK | PLN | SEK
Weakening 10% | - | -44.3 | -7.7 | -27.0
Strengthening 10% | - | 54.1 | 9.5 | 33.1

Transaction risks
International purchasing activities and foreign currency denominated financial resources
arranged by the parent to subsidiaries expose the Group to transaction risks relating to
several currencies. The currency-specific transaction risk exposure comprises foreign
currency denominated receivables and liabilities in the balance sheet, forecast foreign
currency cash flows, and foreign subsidiaries’ liabilities and receivables with respect to the
parent. The risk is commercially managed by, for example, transferring exchange rate
changes to selling prices, or by replacing suppliers. The remaining exposures are hedged
using foreign currency derivatives. The subsidiaries report their foreign exchange exposures
to the Group Treasury on a monthly basis.
In the main, the subsidiaries hedge their risk exposures with the Group Treasury, which in
turn hedges risk exposures using market transactions within the limits confirmed for each
currency. Intra-Group derivative contracts are allocated to the segments in segment
reporting.
As a rule, the Group does not apply hedge accounting in accordance with IFRS 9 to hedge
the transaction risk relating to purchases and sales. In initial measurement, derivative
instruments are recognised at fair value and subsequently in the financial statements, they
are remeasured at fair value. The change in fair value of foreign currency derivatives used for
hedging purchases and sales is recognised in other operating income or expenses.
Insofar as the Group applies hedge accounting to hedge purchases, the valuation of
derivatives is recognised in the revaluation reserve of equity. When a derivative matures, it is
treated similarly to the hedged item.

Group's transaction exposure as at 31 Dec. 2024 € million | DKK | NOK | PLN | SEK | USD
Group's transaction risk | 1.8 | 33.8 | -5.6 | -44.6 | -2.3
Hedging derivatives | - | -42.4 | 4.2 | 37.1 | 36.6
Open exposure | 1.8 | -8.6 | -1.4 | -7.6 | 34.3

Group's transaction exposure as at 31 Dec. 2023 € million | DKK | NOK | PLN | SEK | USD
Group's transaction risk | -0.0 | 51.7 | -11.6 | 57.5 | -2.9
Hedging derivatives | - | -42.3 | 5.1 | -47.3 | 17.2
Open exposure | -0.0 | 9.5 | -6.6 | 10.2 | 14.3

The Group monitors the transaction risk exposure in respect of existing balances and
forecast cash flows. The table above presents transaction exposure excluding future cash
flows. It does not include the Group’s actual foreign exchange risk after hedging. When
forecast amounts are included in the transaction exposure, the most significant difference to
the table is in the USD exposures. As at 31 December 2024, the exposure with respect to
USD was €-2.0 million.

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A sensitivity analysis of the transaction exposure shows the impact on profit or loss of a
+/-10% exchange rate change in foreign currency denominated receivables and liabilities in
the balance sheet, intra-Group receivables and liabilities denominated in foreign currencies
and foreign currency derivatives and borrowings used for hedging.

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2024, € million | DKK | NOK | PLN | SEK | USD
Weakening 10% | -0.2 | 0.8 | 0.1 | 0.7 | -3.1
Strengthening 10% | 0.2 | -1.0 | -0.2 | -0.8 | 3.8

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2023, € million | DKK | NOK | PLN | SEK | USD
Weakening 10% | 0.0 | -0.9 | 0.6 | -0.9 | -1.3
Strengthening 10% | -0.0 | 1.1 | -0.7 | 1.1 | 1.6

Liquidity risk
Liquidity risk management aims to maintain sufficient liquid assets and credit facilities in
order to ensure the ongoing availability of sufficient financial resources for the Group’s
operating activities.
Liquid assets comprise cash and cash equivalents in the balance sheet, financial assets at
amortised cost, and current financial assets at fair value through profit or loss. Changes in
these balance sheet items are presented in the consolidated statement of cash flows under
change in cash and cash equivalents for cash and cash equivalents, and in cash flow from
investing activities for other financial assets.
The Group’s liquid assets have been invested in deposits on 31 December 2024 and the
duration of these investments was 0.02 years at the end of the financial year. The maximum
credit risk is the fair value of these investments on the balance sheet at the balance sheet
date.
Interest-bearing net debt reconciliation is presented in Note 4.1.
Payables to K-retailers consist of two types of interest-bearing liabilities by Kesko to K-
retailers: retailers’ prepayments to Kesko and Kesko’s chain rebate liabilities to retailers.
Kesko has six bilateral loans totalling €770 million, with interest margins that take into
account Kesko’s sustainability targets for carbon footprint and food waste, as well as
emission reduction targets for direct suppliers of goods and services in Kesko’s value chain.
Kesko drew one new bilateral loan and in addition loans were amortized during year 2024.
On 2 October 2024 Kesko issued unsecured senior green notes worth €300 million, which
will mature on 2 February 2030 and pay an annual interest of 3.5%.
Bilateral loans involve the performance indicator ‘interest-bearing net debt/EBITDA,
excluding IFRS 16 impact’ as a covenant. The indicator was clearly below threshold levels
throughout the financial year.
At the balance sheet date, the total equivalent of undrawn committed credit facilities was
€300 million (€300 million). According to the terms and conditions of loan agreements, at
change of control, the lenders have the right to terminate the credit facility and loan amounts
possibly drawn. According to the terms and conditions of the loan facility, the change of
ownership to retailers or an association of retailers does not constitute a change of control.
In addition, the Group’s uncommitted financial resources available include commercial paper
programmes denominated in euros totalling an equivalent of €513 million (€546 million).

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| 31 Dec. 2024 | 31 Dec. 2023
€ million | < 1 year | 1-5 years | > 5 years | Total | < 1 year | 1-5 years | > 5 years | Total
Maturities of financial liabilities and related finance costs |  |  |  |  |  |  |  |
Borrowings from financial institutions | 193.0 | 563.7 | 164.1 | 920.8 | 0.2 | 650.6 | 0.8 | 651.6
finance costs | 31.9 | 38.1 | 12.9 | 82.9 | 29.6 | 17.3 | 0.1 | 47.0
Notes | - | - | 298.0 | 298.0 | - | - | - | -
finance costs | 3.5 | 42.0 | 10.5 | 56.0 | - | - | - | -
Pension loans | 12.0 | 20.3 | - | 32.3 | 12.0 | 32.3 | - | 44.3
finance costs | 0.4 | 0.5 | - | 0.9 | 0.6 | 0.9 | - | 1.5
Lease liabilities | 422.1 | 1,049.1 | 579.7 | 2,051.0 | 350.6 | 1,064.2 | 583.0 | 1,997.9
finance costs | 74.2 | 172.7 | 73.9 | 320.8 | 69.6 | 164.5 | 68.4 | 302.5
Payables to K-retailers | 64.7 | - | - | 64.7 | 64.5 | - | - | 64.5
finance costs | - | - | - | - | - | - | - | -
Other interest-bearing liabilities | 21.5 | 7.9 | 0.0 | 29.4 | 21.7 | 7.9 | 0.0 | 29.6
finance costs | - | 0.4 | - | 0.4 | 0.1 | 0.4 | - | 0.5
Non-current non-interest-bearing liabilities | 0.6 | 22.7 | 19.1 | 42.4 | 0.6 | 3.9 | 19.7 | 24.1
Current non-interest-bearing liabilities |  |  |  |  |  |  |  |
Trade payables | 1,404.4 |  |  | 1,404.4 | 1,418.3 |  |  | 1,418.3
Accrued expenses | 442.4 |  |  | 442.4 | 415.1 |  |  | 415.1
Other non-interest-bearing liabilities | 299.0 |  |  | 299.0 | 193.4 |  |  | 193.4

Financial liabilities in the balance sheet include €6.2 million (€3.9 million) related to derivatives, of which €3.4 million mature within the next 12 months. Information on lease liabilities is
presented in Note 3.4.

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| 31 Dec. 2024 | 31 Dec. 2023
€ million | < 1 year | 1-5 years | > 5 years | Total | < 1 year | 1-5 years | > 5 years | Total
Cash flows of derivatives |  |  |  |  |  |  |  |
Payables |  |  |  |  |  |  |  |
Foreign currency derivatives | 123.3 | - | - | 123.3 | 125.1 | - | - | 125.1
Interest rate derivatives | 4.1 | 1.5 | 0.2 | 5.8 | 3.9 | 4.8 | - | 8.7
of which derivatives under hedge accounting | 3.1 | 0.5 | 0.2 | 3.8 | 3.0 | 2.9 | - | 5.9
Electricity derivatives | 2.4 | 3.0 | - | 5.5 | 0.5 | 1.3 | - | 1.9
Receivables |  |  |  |  |  |  |  |
Foreign currency derivatives | 124.6 | - | - | 124.6 | 123.5 | - | - | 123.5
Interest rate derivatives | 5.9 | 3.6 | 0.5 | 10.1 | 9.4 | 7.0 | - | 16.3
of which derivatives under hedge accounting | 2.9 | 1.2 | 0.5 | 4.6 | 3.6 | 2.1 | - | 5.6
Electricity derivatives | 1.5 | 0.8 | 0.0 | 2.3 | 5.3 | 2.2 | 0.0 | 7.5

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Interest rate risk on borrowings and sensitivity analysis
Changes in the interest rate level have an impact on the Group’s interest expense. The policy
for hedging interest rate risk is aimed at balancing the effects of changes in the interest rate
level on profit or loss for different financial periods. Hedge accounting can be applied for
interest rate derivatives according to Kesko Treasury policy.
Hedge accounting is applied to hedging the interest rate risk of specifically determined
Group’s loans. Interest rate swaps have been used for hedging. The hedging ratio of the
loans under hedge accounting is 70%. During the financial year, no ineffectiveness was
recorded in the income statement for the hedging of the loans in question.
The interest rate risk is centrally managed by the Group Treasury, which adjusts the duration
by using interest rate derivative contracts. The target duration is between 1 and 4 years. The
actual duration during the financial year was 1.0 (1.1) years on average.
The sensitivity analysis calculated at the balance sheet date of 31 December 2024, the effect
of variable rate borrowings on the pre-tax profit would have been €-/+7.1 million (€-/+4.1
million), if the interest rate level had risen or fallen by 1 percentage point.
Pension loans, €32.3 million in total, have fixed rates, and their effective interest cost was
1.4%. Other borrowings from financial institutions have variable interest rates. At the end of
the financial year, the average rate of these borrowings, payables to retailers, and other
interest-bearing liabilities was 3.5%.
Credit and counterparty risk
Financial instruments involve the risk of non-performance by counterparties. Credit risk is
managed with agreements with financially sound Finnish and foreign banks, financial
institutes and brokers, within the counterparty risks limits set in the treasury policy. Financial
assets are also invested in money market funds and the bonds, commercial papers and
certificates of deposit issued by conservatively selected companies and banks. The limits are
reviewed regularly depending on the market situation.
Further information about credit and counterparty risk of trade receivables can be found in
Note 3.6.
Supply chain financing arrangements
The Group has established a supply chain financing scheme with three banks. Trade payables
in the consolidated statement of financial position on 31 December 2024 totalled €1,404.4
million, of which €332.4 million were liabilities related to outstanding payables covered by
the schemes. Trade payables covered by the scheme for which the suppliers had already
received payment from the financier totalled €326.0 million on 31 December 2024. In supply
chain financing, the supplier leverages the buyer’s credit rating when selling its receivables to
a financial institution. Once the buyer approves the invoices, the bank pays them to the
supplier without a right of recourse, meaning the supplier has quick access to the cash flows
related to trade receivables. The Group does not pay commission to the banks for the supply
chain financing. The terms of payment for trade payables covered by the supply chain
financing scheme is 30 to 240 days, while the terms of payment for trade payables outside
the scheme is 0 to 365 days. The trade payables covered by the scheme mainly concern
Finland and the building and technical trade segment. Trade payables covered by the scheme
are presented under trade payables on the Group balance sheet. The impact of these trade
payables is presented in cash flow from operating activities in change in working capital.
Current interest-bearing receivables and sensitivity analysis
The objective is to invest liquidity consisting of financial assets in the money markets using
efficient combinations of return and risk. At regular intervals, the Group’s management
approves the investment instruments and limits for each counterparty among those analysed
by the Group Treasury. The risks and actual returns on investments are monitored regularly.

Financial assets at amortised cost € million | 2024 | 2023
Carrying amount as at 1 January | 15.4 | 38.7
Changes | -0.4 | -23.3
Carrying amount as at 31 December | 15.0 | 15.4

The financial assets at amortised costs include investments in commercial papers, certificates
of deposits and other interest rate instruments.
In the sensitivity analysis of floating rate receivables, balances of invested assets at balance
sheet date have been used. The receivables include customer financing receivables, other
interest-bearing receivables, and investments in money market funds. The sensitivity of

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money market funds has been determined based on duration. If the interest rates had
changed by +/-1 percentage point, the effect of these items on the pre-tax profit would have
been €+/-2.6 million (€+/-1.5 mil lion).
Maturity of non-current receivables

Maturity analysis of non- current receivables as at 31 Dec. 2024, € million | 2026 | 2027 | 2028 | 2029 | 2030- | Total
Non-interest-bearing non- current receivables | 2.6 | 2.3 | 0.2 | 0.0 | 1.9 | 7.1
Loans and receivables from associates and joint ventures | 0.5 | 1.5 | - | - | 56.0 | 58.0
Other non-current receivables | 0.8 | 0.0 | - | - | - | 0.8
Total | 3.8 | 3.9 | 0.2 | 0.0 | 57.9 | 65.9

The carrying amount of non-interest-bearing non-current receivables equals their fair value.

Maturity analysis of non- current receivables as at 31 Dec. 2023, € million | 2025 | 2026 | 2027 | 2028 | 2029- | Total
Non-interest-bearing non- current receivables | 1.9 | 2.5 | 3.5 | 0.2 | 0.6 | 8.8
Loans and receivables from associates and joint ventures | 3.4 | 0.5 | 1.5 | - | 56.0 | 61.4
Other non-current receivables | 1.1 | 0.0 | 0.0 | 0.0 | 0.0 | 1.3
Total | 6.4 | 3.0 | 5.1 | 0.2 | 56.6 | 71.4

Commodity risks and their sensitivity analysis
The Group uses electricity derivatives for the purpose of balancing out energy costs. The
electricity price risk is assessed for five-year periods. The changes in the fair values of
derivatives hedging the price of electricity supplied during the financial year are recognised
within adjustments to purchases. Hedge accounting is applied to contracts hedging future
purchases. Hedge accounting is applied in accordance with IFRS 9 to hedge the risk
component. The effective portion of the change in the value of derivatives that qualify for
hedge accounting is recognised in the revaluation reserve of equity. The change in the
revaluation reserve recognised in equity is presented in the statement of comprehensive
income under Revaluation of cash flow hedge.
Result of cash flow hedging

| 2024 | 2023
€ million | Interest rate hedging of interest- bearing loans | Hedging of the price of electricity | Interest rate hedging of interest- bearing loans | Hedging of the price of electricity
Fair value as at 1 Jan. excluding deferred taxes | -0.3 | 5.7 | - | 44.2
Acquisitions | 1.9 | - | - | -
Booked to income statement | -1.3 | -0.2 | -0.1 | -5.2
Change in fair value | 0.4 | -8.6 | -0.2 | -33.3
Fair value as at 31 Dec. excluding deferred taxes | 0.8 | -3.2 | -0.3 | 5.7

As at the balance sheet date, a total quantity of 1,314,163 MWH (881,560 MWH) of
electricity had been purchased with electricity derivatives and 851,126 MWH (9,802,890
MWH) under fixed price purchase agreements. The 1-12 month hedging level for system
price was 84% (79%), the 13-24 month level was 75% (66%), the 25-36 month level was 61%
(41%), the 37-48 month level was 38% (27%), and the 49-60 month level was 20% (27%).
The sensitivity analysis of electricity derivatives assumes that derivatives maturing in less
than 12 months have an impact on profit. If the market price of electricity derivatives
changed by -/+20% from the balance sheet date 31 December 2024, it would contribute €-/
+3.2 million (€-/+3.3 million) to the 2025 income statement and €-/+5.8 million (€-/+4.6
million) to equity. The impact has been calculated before taxes.

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Derivatives

Fair values of derivative contracts € million | 31 Dec. 2024 Positive fair value (balance sheet value) | 31 Dec. 2024 Negative fair value (balance sheet value) | 31 Dec. 2023 Positive fair value (balance sheet value) | 31 Dec. 2023 Negative fair value (balance sheet value)
Interest rate derivatives | 9.3 | -5.6 | 14.8 | -8.5
Foreign currency derivatives | 1.6 | -0.2 | 0.2 | -1.8
Electricity derivatives | 2.3 | -5.5 | 7.5 | -1.9

Notional principal amounts of derivative contracts € million | 31 Dec. 2024 | 31 Dec. 2023
Interest rate derivatives | 467.0 | 530.0
Foreign currency derivatives | 124.9 | 125.3
Electricity derivatives | 45.4 | 39.4

The fair values of derivatives are presented as gross amounts. Kesko has entered into netting
arrangements under ISDA contracts with all bank counterparties engaged in transactions
with derivatives. All of these contracts provide for mutual posting of collateral. The threshold
for posting a collateral had not been exceeded at the balance sheet date. Analysed by
counterparty, derivative financial liabilities could be set off in a total of €0.7 million.
The maximum credit risk from derivatives is the fair value of the balance sheet at the
reporting date.
4.4 Finance income and costs

€ million | 2024 | 2023
Interest income and other finance income |  |
Income on investments at amortised cost | 1.2 | 0.6
Interest income on loans and receivables | 16.0 | 13.4
Income on investments at fair value through profit or loss | 0.0 | 0.6
Other finance income | 0.5 | 2.4
Total interest income and other finance income | 17.7 | 16.9
Interest expense and other finance costs |  |
Interest expense on financial liabilities at amortised cost | -49.1 | -24.9
Losses on investments at amortised cost | 0.1 | 1.2
Losses on investments at fair value through profit or loss | -0.3 | -0.3
Other finance costs | -0.1 | -2.2
Total interest expense and other finance costs | -49.5 | -26.3
Interest expense for lease liabilities | -78.6 | -73.4
Exchange differences |  |
Exchange differences and changes in fair values of derivatives, borrowings denominated in foreign currencies not qualifying for hedge accounting, and cash at bank | -1.3 | -1.1
Total exchange differences | -1.3 | -1.1
Total finance income and costs | -111.7 | -83.9

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4.5 Financial assets and liabilities by category
Accounting policies
Financial assets
The Group classifies financial assets into three groups in accordance with IFRS 9. Financial
assets are classified either as instruments measured at amortised cost, or as instruments
measured at fair value through profit or loss or in other comprehensive income, depending
on the business model targets and cash flows based on agreements.
Regular way purchases or sales of financial assets are recognised on settlement date.
Financial assets are classified as non-current, if they have a maturity of more than 12
months after the balance sheet date. If financial assets are expected to be settled within 12
months, they are classified as current.
Financial assets are derecognised when the rights to receive cash flows from the financial
asset have expired or have been transferred from the Group, and when the risks and
rewards of ownership have been transferred from the Group.
Financial assets at amortised cost and financial assets at fair value are only invested in
counterparties deemed creditworthy. The impairment model for expected credit losses in
line with the standard requires credit losses to be recognised with a forward-looking
approach. As for other financial assets, lacking historical credit losses, counterparty risk is
monitored actively and credit losses are recognised if risk is observed.
Financial assets at amortised cost
Financial assets at amortised cost consist of assets that are to be held to maturity and
whose cash flows consist solely of payments of principal and interest. Financial assets at
amortised cost also include trade receivables and other receivables.
Financial assets at fair value
Financial assets at fair value in other comprehensive income comprise derivatives that meet
the hedge accounting criteria. Financial assets that do not meet the criteria of the other
groups are classified as financial assets measured at fair value through profit or loss.
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 value of level 3 instruments is not based on observable market data (inputs not
observable).
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits with banks as well as liquid
funds measured at amortised cost which are invested in instruments with maturities of less
than three months from acquisition. Investments in money market funds recognised at fair
value through profit or loss, for which liquidity is assessed as very good, are also classified
as cash and cash equivalents. The cash and cash equivalents in the consolidated balance
sheet also include amounts relating to the retail operations of the group companies, used as
cash floats in stores, or amounts being transferred to the respective companies.
Financial liabilities
Financial liabilities have initially been recognised at fair value, net of transaction costs. In the
financial statements, financial liabilities are measured at amortised cost using the effective
interest rate method. Arrangement fees paid on the establishment of loan facilities and
financial liabilities are amortised over the period of the facility to which it relates. Financial
liabilities having maturities of more than 12 months after the balance sheet date are
classified as non-current liabilities. Those maturing within 12 months after the balance sheet
date are classified as current liabilities.
Derivative financial instruments and hedge accounting
When derivative contracts are entered into, they are recognised at fair value and in the
financial statements, they are re-measured at their fair value. The recognition of changes in
the fair value of derivatives depends on whether the derivative instrument qualifies for
hedge accounting or not and, if so, on the hedged item. When entered into, derivative
contracts are treated either as fair value hedges of receivables or liabilities, or in the case of
interest rate risk and electricity price risk, as cash flow hedges, as hedges of net
investments in a foreign entity, or as derivative contracts that do not meet the hedge
accounting criteria. If the hedge accounting criteria are not met, the results of instruments
hedging a commercial foreign exchange risk are recognised in profit or loss within other
operating income or expenses. Concerning derivatives hedging financial transactions, the
amount to be recognised in the income statement is included in financial items.

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When a hedging arrangement is entered into, the relationship between the hedged item
and the hedging instrument, as well as the objectives of the Group's risk management are
documented. The effectiveness of the hedge relationship is tested regularly and the
effective portion is recognised, according to the nature of the hedged item, against the
change in the fair value of the hedged item, in translation differences in equity, or in the
revaluation reserve. The ineffective portion is recognised, according to its nature, either in
financial items or other operating income and expenses.
Hedge accounting is discontinued when the hedging instrument expires or is sold, or when
the contract is terminated or exercised. Any cumulative gain or loss existing in equity at that
time remains in equity until the forecast transaction has occurred.
Measurement principles
The fair value of forward rate agreements is determined by reference to the market prices
at the balance sheet date. The fair value of interest rate swaps is calculated on the basis of
the present value of future cash flows, using the market prices at the balance sheet date.
The fair value of foreign exchange forward contracts is determined by measuring the
forward contracts at the forward rate at the balance sheet date. Currency options are
measured using the counterparty's price quotation, but the Group also verifies the price by
applying the Black−Scholes method. Electricity derivatives are measured at fair value using
the market quotations at the balance sheet date.
Hedging a net investment in foreign operations
During the financial year, the Group has not hedged net investments in foreign operations.
If a hedge is initiated, the Group applies hedge accounting in accordance with IFRS 9 to
hedge foreign currency net investments in foreign operations. Foreign exchange forward
contracts or foreign currency borrowings are used as hedging instruments. Spot price
changes in foreign exchange forward contracts are recognised in translation differences
under equity, and disclosed in other comprehensive income. The premiums of forward
contracts are recognised as income under financial items. The exchange difference of
foreign currency borrowings is recognised in translation differences under equity. When a
foreign operation is partially or wholly disposed of or wound up, cumulative gains or losses
from the hedging instruments are recognised in profit or loss.

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As at 31 December 2024

Balance, € million | Fair value through profit or loss | Amortised cost | Fair value through other comprehensive income | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Non-current financial assets |  |  |  |  |  |  |  |
Other investments | 14.8 |  | - | 14.8 | 14.8 |  |  | 14.8
Non-current receivables |  | 61.0 |  | 61.0 | 61.0 |  |  |
Non-current receivables, derivatives | 3.0 |  | 1.9 | 4.9 | 4.9 |  | 4.9 |
Current financial assets |  |  |  |  |  |  |  |
Trade receivables |  | 957.9 |  | 957.9 | 957.9 |  |  |
Other receivables |  | 288.1 |  | 288.1 | 288.1 |  |  |
Other receivables, derivatives | 1.6 |  | 1.7 | 3.3 | 3.3 |  | 3.3 |
Other financial assets | - | 15.0 | - | 15.0 | 15.0 |  | - |
Cash and cash equivalents | - | 473.1 | - | 473.1 | 473.1 |  | - |
Total financial assets | 19.4 | 1,795.0 | 3.6 | 1,817.9 | 1,817.9 |  | 8.2 | 14.8

Balance, € million | Fair value through profit or loss | Amortised cost | Fair value through other comprehensive income | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Non-current financial liabilities |  |  |  |  |  |  |  |
Non-current interest-bearing liabilities |  | 1,054.0 |  | 1,054.0 | 1,055.7 |  |  |
Non-current lease liabilities |  | 1,628.8 |  | 1,628.8 | 1,628.8 |  |  |
Non-current non-interest-bearing liabilities |  | 39.6 |  | 39.6 | 39.6 |  |  |
Non-current non-interest-bearing liabilities, derivatives | 0.0 |  | 2.8 | 2.8 | 2.8 |  | 2.8 |
Current financial liabilities |  |  |  |  |  |  |  |
Current interest-bearing liabilities |  | 291.3 |  | 291.3 | 291.2 |  |  |
Current lease liabilities |  | 422.2 |  | 422.2 | 422.2 |  |  |
Trade payables |  | 1,404.4 |  | 1,404.4 | 1,404.4 |  |  |
Other non-interest-bearing liabilities |  | 738.1 |  | 738.1 | 738.1 |  |  |
Other non-interest-bearing liabilities, derivatives | 0.2 |  | 3.1 | 3.4 | 3.4 |  | 3.4 |
Total financial liabilities | 0.2 | 5,578.3 | 6.0 | 5,584.5 | 5,586.1 |  | 6.2 |

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As at 31 December 2023

Balance, € million | Fair value through profit or loss | Amortised cost | Fair value through other comprehensive income | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Non-current financial assets |  |  |  |  |  |  |  |
Other investments | 14.0 |  | - | 14.0 | 14.0 |  |  | 14.0
Non-current receivables |  | 64.1 |  | 64.1 | 64.1 |  |  |
Non-current receivables, derivatives | 5.6 |  | 1.7 | 7.3 | 7.3 |  | 7.3 |
Current financial assets |  |  |  |  |  |  |  |
Trade receivables |  | 970.5 |  | 970.5 | 970.5 |  |  |
Other receivables |  | 299.9 |  | 299.9 | 299.9 |  |  |
Other receivables, derivatives | 1.2 |  | 5.8 | 7.0 | 7.0 |  | 7.0 |
Other financial assets | - | 15.4 | - | 15.4 | 15.5 |  | - |
Cash and cash equivalents | - | 211.9 | - | 211.9 | 211.9 |  | - |
Total financial assets | 20.8 | 1,561.7 | 7.5 | 1,590.1 | 1,590.2 |  | 14.3 | 14.0

Balance, € million | Fair value through profit or loss | Amortised cost | Fair value through other comprehensive income | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Non-current financial liabilities |  |  |  |  |  |  |  |
Non-current interest-bearing liabilities |  | 690.7 |  | 690.7 | 691.0 |  |  |
Non-current lease liabilities |  | 1,647.2 |  | 1,647.2 | 1,647.2 |  |  |
Non-current non-interest-bearing liabilities |  | 22.6 |  | 22.6 | 22.6 |  |  |
Non-current non-interest-bearing liabilities, derivatives | - |  | 1.6 | 1.6 | 1.6 |  | 1.6 |
Current financial liabilities |  |  |  |  |  |  |  |
Current interest-bearing liabilities |  | 98.5 |  | 98.5 | 98.1 |  |  |
Current lease liabilities |  | 350.6 |  | 350.6 | 350.6 |  |  |
Trade payables |  | 1,418.3 |  | 1,418.3 | 1,418.3 |  |  |
Other non-interest-bearing liabilities |  | 606.1 |  | 606.1 | 606.1 |  |  |
Other non-interest-bearing liabilities, derivatives | 1.8 |  | 0.6 | 2.3 | 2.3 |  | 2.3 |
Total financial liabilities | 1.8 | 4,834.0 | 2.1 | 4,837.8 | 4,837.8 |  | 3.9 |

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In addition to cash on hand and deposits with banks, cash and cash equivalents include liquid
assets measured at amortised cost due in less than three months from acquisition, which
amounted to €185.2 million (€3.3 million).
Non-current receivables from associates and joint ventures contain the shareholder loan
granted to Mercada Oy and the financing loans granted to UAB Kesko Senukai.
Deferred tax assets, income tax receivables, deferred tax liabilities and income tax liabilities
are not classified as financial assets or financial liabilities and are not included in the table
above. Prepayments received of €43.4 million (€56.7 million) are not classified as financial
liabilities and are not included in the table above in other non-interest-bearing liabilities.
The fair values of borrowings from financial institutions have been calculated based on the
present value of future cash flows using the 2.2%−2.9% market rates of interest of the
balance sheet date. The fair value of current interest-bearing liabilities has been estimated to
approximately equal their balance sheet value. The maturity structure of non-current
borrowings has been presented in Note 4.3.

Changes in level 3 instruments € million | 2024 | 2023
Private equity funds and other shares and interests as at 1 January | 14.0 | 13.2
Purchases | 0.8 | 1.3
Gains and losses through profit or loss | -0.1 | -0.5
Changes in fair value | -0.0 | 0.0
Private equity funds and other shares and interests as at 31 December | 14.8 | 14.0

Level 3 includes private equity funds and other shares and interests. These investments have
been classified as financial assets at fair value through profit or loss. Level 3 financial assets
are measured based on calculations received from the companies. A loss of €0.1 million has
been recorded on these investments for the financial year 2024.
4.6 Commitments and contingencies

€ million | 2024 | 2023
Collateral given for own commitments |  |
Pledges | 9.0 | 9.0
Mortgages | 181.2 | 181.2
Guarantees | 12.3 | 10.3
Other commitments and contingent liabilities | 66.3 | 64.0
Collateral given for others |  |
Guarantees | - | -
Other commitments and contingent liabilities | - | -

The guarantees given do not include guarantees related to the items presented within
liabilities in the consolidated statement of financial position or as a lease commitments
presented in Note 3.4. Figure for the comparison period has been adjusted accordingly.
Guarantee maturities are €2.3 million in 2025 and €10.1 million from 2026 onwards.
Leases not commenced yet but to which the Group is committed are presented in Note 3.4.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. OTHER
5.1 Subsidiaries, associates, joint ventures and proportionately
consolidated mutual real estate companies
Subsidiaries

Owned by the parent | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Ankkuri-Energia Oy | Helsinki, Finland | 100.00 | 100.00
Asunto Oy Kirkkonummen Västeruddintie 33 | Kirkkonummi, Finland | 100.00 | 100.00
Asunto Oy Porvoon Taiteilija | Porvoo, Finland | 100.00 | 100.00
Byggmakker Handel AS | Oppegård, Norway | 100.00 | 100.00
Davidsen Koncernen A/S | Vojens, Denmark | 90.00 | 90.00
Fiesta Real Estate AS | Tallinn, Estonia | 100.00 | 100.00
Intersport Finland Oy | Helsinki, Finland | 100.00 | 100.00
Kalatukku E. Eriksson Oy | Helsinki, Finland | 100.00 | 100.00
K Auto Oy | Helsinki, Finland | 100.00 | 100.00
Keskinäinen Kiinteistö Oy Voisalmentie 9 Lappeenranta | Helsinki, Finland | 100.00 | 100.00
Kesko AB | Stockholm, Sweden | 100.00 | 100.00
KESKO EIENDOM AS | Oppegård, Norway | 100.00 | 100.00
Kesko Export Oy | Helsinki, Finland | 100.00 | 100.00
Kiinteistöosakeyhtiö Varkauden Kauppakatu 29 | Varkaus, Finland | 52.29 | 52.29
Kiinteistö Oy Espoon Sinikalliontie 1 | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Espoontori | Espoo, Finland | 100.00 | 100.00
Kiinteistö Oy Espoon Asemakuja 2 | Espoo, Finland | 100.00 | 100.00
Kiinteistö Oy Espoon Asematori | Espoo, Finland | 54.10 | 54.10
Kiinteistö Oy Eteläkoivulan Kauppakeskus | Pori, Finland | 78.45 | 78.45
Kiinteistö Oy Harjantauksentie 11 | Kotka, Finland | 100.00 | 100.00
Kiinteistö Oy Helsingin Itäkeskus | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Hiukkavaaran Kauppa | Oulu, Finland | 100.00 | 100.00
Kiinteistö Oy Hyvinkään Onnela | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Hämeenlinnan Katsastusmiehentie 10 | Helsinki, Finland | 100.00 | 100.00

Owned by the parent | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Kiinteistö Oy Kittilän Säästökulma | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Kuopion Tulliportinkatu 33 | Kuopio, Finland | 100.00 | 100.00
Kiinteistö Oy Lappeenrannan Oksasenkatu 4 | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Mariannen Liiketila | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Pontsonkulma | Helsinki, Finland | 94.60 | 94.60
Kiinteistö Oy Riistaveden Keskustie 15 | Helsinki, Finland | 79.50 | 79.50
Kiinteistö Oy Salon Hämeentie 24 | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Sarviniitynkatu 4 | Kerava, Finland | 100.00 | 100.00
Kiinteistö Oy Sunan Hallitalo | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Tarkkaiikka | Oulu, Finland | 100.00 | 100.00
Kiinteistö Oy Voisalmen Liiketalo | Helsinki, Finland | 100.00 | 100.00
Klintcenter Ab | Mariehamn, Åland | 100.00 | 100.00
Kompass Invest Oy | Kemiönsaari, Finland | 100.00 | 100.00
Koskelan Ostokeskus Oy | Oulu, Finland | 58.64 | 29.32
K-Liikenneasema Oy | Helsinki, Finland | 100.00 | 100.00
K-Market Oy | Helsinki, Finland | 100.00 | 100.00
Onninen Oy | Helsinki, Finland | 100.00 | 100.00
Reinin Liha Oy | Helsinki, Finland | 100.00 | 100.00
Saunakallion Ostoskeskus Oy | Järvenpää, Finland | 56.30 | 56.30
Tampereen Länsikeskus Oy | Tampere, Finland | 100.00 | 100.00

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Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Arn Eiendom AS | Vefsn, Norway | 100.00 |
BREIFLÅTVEIEN 15/21 AS | Skedsmokorset, Norway | 100.00 |
Davidsen Ejendomme A/S | Vojens, Denmark | 90.00 |
Davidsens Tømmerhandel A/S | Vojens, Denmark | 90.00 |
Espoontorin Pysäköintitalo Oy | Espoo, Finland | 82.46 |
JØSSANGVEGEN 5 AS | Jørpeland, Norway | 100.00 |
K Auto AC Oy | Helsinki, Finland | 100.00 |
K Auto PC Oy | Helsinki, Finland | 100.00 |
K Auto Leasing Oy | Helsinki, Finland | 100.00 |
K Auto Retail Oy | Helsinki, Finland | 100.00 |
KESKO EIENDOM BERGEN AS | Oppegård, Norway | 100.00 |
Kesko Onninen International Trading Co., Ltd | Shanghai, China | 100.00 |
Kestra Kiinteistöpalvelut Oy | Helsinki, Finland | 100.00 |
Kiinteistö Oy Kokkolan Kaanaanmaantie 2-4 | Kokkola, Finland | 64.78 |
Kiinteistö Oy Lappeenrannan Rakuunaparkki | Lappeenranta, Finland | 57.12 |
Kiinteistö Oy Vantaan Simonsampo | Vantaa, Finland | 100.00 |
KR Fastigheter i Järfälla AB | Sollentuna, Sweden | 100.00 |
KR Fastigheter i Linköping AB | Sollentuna, Sweden | 100.00 |
KR Fastigheter i Täby AB | Sollentuna, Sweden | 100.00 |
K-Bygg Försäljning AB | Segeltorp, Sweden | 100.00 |
K-Bygg Sverige AB | Östersund, Sweden | 100.00 |
K-Rauta Holding Finland Oy | Helsinki, Finland | 100.00 |
Mark & Infra i Sverige AB | Täby, Sweden | 100.00 |
MIN BUTIK ApS | Vojens, Denmark | 90.00 |
Olarin Autokiinteistö Oy | Espoo, Finland | 100.00 |
Onninen AS | Skedsmo, Norway | 100.00 |
Onninen AS | Tallinn, Estonia | 100.00 |
Onninen SIA | Riga, Latvia | 100.00 |
Onninen Sp. z o.o. | Warsaw, Poland | 100.00 |
Onninen UAB | Vilnius, Lithuania | 100.00 |
Peltosaaren Liikekeskus Oy | Riihimäki, Finland | 59.67 |
Profelco Oy | Vantaa, Finland | 100.00 |
Sport1 Flokkmann Mosjøen AS | Mosjøen, Norway | 100.00 |
T-24 ApS | Kolding, Denmark | 90.00 |

Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
VESTRE ROSTEN 97 AS | Oppegård, Norway | 100.00 |
Zenitec Sweden AB | Hästvdeda, Sweden | 100.00 |
Övik Låsteknik AB | Örnsköldsvik, Sweden | 100.00 |

Associates and joint ventures
Associates and joint ventures are consolidated using the equity method.

Owned by the parent | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Graanin Liikekeskus Oy | Mikkeli, Finland | 50.00 | 50.00
Kesko Senukai Lithuania UAB | Vilnius, Lithuania | 50.00 | 50.00
Kiinteistö Oy Itäaukio | Lahti, Finland | 26.20 | 26.20
Kiinteistö Oy Janakkalan Linnatuuli | Janakkala, Finland | 29.86 | 29.86
Kiinteistö Oy Joensuun Kaupunginportti | Joensuu, Finland | 22.77 | 22.77
K-Tilipalvelu Oy | Helsinki, Finland | 30.00 | 30.00
Mercada Oy | Helsinki, Finland | 33.33 | 33.33
Vähittäiskaupan Takaus Oy | Helsinki, Finland | 42.84 | 42.84

Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
EDISON Data AS | Oslo, Norway | 40.00 |
Proffsenteret AS | Ringerike, Norja | 34.11 |
KS Holding UAB | Vilna, Liettua | 50.01 |

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Proportionately consolidated mutual real estate companies

Owned by the parent and others | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Asunto Oy Harjutie | Espoo, Finland | 20.80 | 20.80
Asunto Oy Helsingin Strorken | Helsinki, Finland | 25.42 | 25.42
Asunto Oy Kajaanin Louhikatu 2 | Kajaani, Finland | 42.96 | 42.96
Asunto Oy Naantalin Tullinkulma | Naantali, Finland | 24.45 |
Asunto Oy Soukan Itäinentorni | Espoo, Finland | 46.60 | 46.60
Asunto-Oy Punkalaitumen Pankkitalo | Punkalaidun, Finland | 33.82 |
Itäkeskuksen Pysäköintitalo Oy | Helsinki, Finland | 36.16 | 36.16
Kiinteistö Oy Iso Roobertinkatu 20-22 | Helsinki, Finland | 25.64 | 25.64
Kiinteistö Oy Lahden Lyhytkatu 1 | Lahti, Finland | 50.00 | 50.00
Kiinteistö Oy Lukonmäen Palvelukeskus | Tampere, Finland | 34.54 |
Kiinteistö Oy Taidetehtaanparkki | Porvoo, Finland | 24.06 | 24.06
Kiinteistö Oy Ulvilan Hansa | Ulvila, Finland | 43.47 | 43.47
Kiinteistö Oy Vantaanportin Liikekeskus | Vantaa, Finland | 27.81 | 27.81
Lapin Tehdastalo Oy | Tampere, Finland | 21.24 | 21.24
Munkkivuoren Ostoskeskus Oy | Helsinki, Finland | 39.20 | 39.20
Raksilan Paikoitus Oy | Oulu, Finland | 33.33 | 33.33
Talo Oy Kalevanpuisto | Kuopio, Finland | 47.60 | 47.60
Voisalmen Ostoskeskus Oy | Lappeenranta, Finland | 50.00 |

5.2 Related party transactions
The Group's related parties include its management (the Board of Directors, President and
CEO and the Group Management Board) and the companies controlled by them, their family
members and companies controlled by the family members, Kesko’s subsidiaries, associates
and joint ventures, and Kesko Pension Fund. The subsidiaries, associates and joint ventures
are listed in Note 5.1.
The related party transactions disclosed consist of such transactions carried out with related
parties that are not eliminated in the consolidated financial statements.
Some members of the Kesko Board are K-retailers. The Group companies sell goods and
services to companies controlled by them. Goods and services have been sold to and
purchased from related parties on normal market terms and conditions and at market prices.
Kesko reports Kesko Senukai Group and KS Holding Group that are part of Kesko’s building
and technical trade segment, as joint ventures using the equity method.
The associated company consolidated using the equity method, Mercada Oy, owns
properties which have been leased for use by the Group. Vähittäiskaupan Takaus Oy and K-
tilipalvelu Oy sell their services to Kesko’s and K-retailers’ retail companies. The other
associates mainly comprise business property companies. Mutual real estate companies have
been consolidated in the financial statements in proportion to their ownership interests.
Kesko Pension Fund is a stand-alone legal entity which manages the majority of the pension
assets related to the voluntary pensions of the Group’s employees in Finland. At the end of
2024 or 2023, the pension assets did not include Kesko Corporation shares. Properties
owned by Pension Fund have been leased to Kesko Group.
During the financial years 2024 and 2023 Kesko Group did not pay contributions to Pension
Fund.

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The following transactions were carried out with related parties:

Income statement | Associates and joint ventures | Board and management | Pension Fund
€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023
Sales of goods | 8.2 | 7.2 | 85.3 | 87.8 | - | -
Sales of services | 4.6 | 4.7 | 0.7 | 0.9 | 0.3 | -
Purchases of goods | - | - | -10.4 | -10.7 | - | -
Purchases of services | -0.1 | - | - | - | - | -
Other operating income | 1.2 | 0.8 | 16.5 | 19.1 | - | -
Other operating costs | -4.3 | -4.4 | -0.2 | - | -0.1 | -0.1
Finance income | 6.0 | 6.1 | - | - | - | -
Finance expenses | - | -0.2 | - | - | -0.2 | -0.2

Balance sheet | Associates and joint ventures | Board and management | Pension Fund
€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023
Current receivables | 6.0 | 9.9 | 8.7 | 7.6 | - | -
Non-current receivables | 58.0 | 61.4 | - | - | - | -
Current liabilities | 7.8 | 5.8 | 1.2 | 3.8 | 6.4 | 2.8

Items related to leases | Associates and joint ventures | Board and management | Pension Fund
€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023
Cash flow from leases | 40.7 | 38.7 | - | - | 6.2 | 6.0
Lease liabilities | 197.1 | 222.7 | - | - | 36.7 | 40.5

At the balance sheet date, receivables arisen from Kesko's sales to companies controlled by
the Board members were €8.7 million (€7.6 million). The receivables are collateralised by a
commercial credit granted by Vähittäiskaupan Takaus Oy, a Kesko associate, with the
maximum amount always limited to the maximum realisable value of the counter security
from the K-retailer company and entrepreneur to Vähittäiskaupan Takaus. At the end of the
financial year, the counter security was valued at €7.3 million (€10.6 million).
Non-current receivables from associates and joint ventures contain the shareholder loan
granted to Mercada Oy and the financing loans granted to UAB Kesko Senukai Lithuania.
Current receivables contain €3.4 million of the current portion of these loans. Other current
liabilities include, for example, chain rebate payables to companies controlled by the Kesko
Board members. Chain rebates are paid retrospectively based on criteria related to the
amount of actual annual purchases and the quality of operations.
The Group joint ventures UAB Kesko Senukai Lithuania and UAB KS Holding distributed
dividends in total of €16.4 million to Kesko Group companies in 2024. The Group's
associated company Vähittäiskaupan Takaus Oy distributed dividends of €6.0 million to
Kesko Corporation in 2024.
Management's employee benefits
The top management comprises the Board of Directors and the Group Management Board.
The compensation paid to them for their employee services consists of the following items:

Monetary salaries, fees, fringe benefits and share-based compensation €1,000 | 2024 | 2023
Jorma Rauhala | President and CEO as of 1.2.2024 | 1,186.6 | -
Mikko Helander | President and CEO until 31.1.2024 | 2,084.5 | 3,370.1
Group Management Board | other members | 3,895.9 | 8,232.9
Esa Kiiskinen | Board Chairman | 122.0 | 114.6
Peter Fagernäs | Board Deputy Chairman | 73.8 | 70.2
Jannica Fagerholm | Board member | 79.8 | 74.4
Pauli Jaakola | Board member as of 26.3.2024 | 55.4 | -
Piia Karhu | Board member | 60.2 | 55.9
Jussi Perälä | Board member | 56.6 | 52.9
Toni Pokela | Board member until 26.3.2024 | 1.2 | 52.9
Timo Ritakallio | Board member | 62.0 | 57.7
Total |  | 7,678.1 | 12,081.6

Approximately 30% of the annual fees for Board members was paid in shares in the Company and the remaining fee
amount was paid in cash. The members of the Board of Directors were granted 7,789 Kesko Corporation B shares in
2024. The figures in the table are presented as payment-based. Remunerations to be paid in the later years are not
included in the figures. In 2024, Mikko Helander was paid monetary salary, fees, fringe benefits and share-based
compensation in accordance with the agreement concerning his service relationship up until 31 December 2024.

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Retirement benefits
The statutory pension provision for the President and CEO and other members of the Group
Management Board is provided through a pension insurance company. The President and
CEO Jorma Rauhala has a supplementary pension granted by Kesko Pension Fund based on a
defined benefit plan, and his old-age pension begins at the age of 65. The amount of his
defined benefit old-age pension is 66% of his pensionable earnings in accordance with the
Employees Pensions Act (TyEL) for the ten (10) years preceding his retirement. No
contribution was paid to the President and CEO’s supplementary pension in the 2024
financial year. Due to a surplus, the accrued IFRS pension cost for the supplementary pension
benefit was a positive €0.1 million. The accrued pension cost for the President and CEO's
statutory pension provision was €0.2 million. Two Group Management Board members are
provided with a supplementary pension based on a defined benefit plan in accordance with
the rules of Kesko Pension Fund and their personal service contracts. Five Group
Management Board members are provided with a supplementary pension based on a defined
contribution plan. As for Mikko Helander, who was the President and CEO until 31 January
2024, the accrued pension cost to the supplementary defined contribution pension was €1.0
million (€0.5 million), and the accrued pension cost for the statutory pension provision, was
€0.3 million (€0.3 million) in the 2024 financial year.
Share awards
During the reporting period 2024 members of the Group Management Board were granted
99,428 shares based on the PSP 2022-2025, while the maximum number of shares to be granted
was 239,585. The number of shares represents gross earnings, from which withholding tax and
transfer tax are deducted. During the reporting period 2023 members of the Group
Management Board were granted 238,500 shares based on the PSP 2021-2024. The number of
shares represents gross earnings, from which withholding tax and transfer tax are deducted.
Termination benefits
If the service contract of the President and CEO or some other Group Management Board
member is terminated by the Company, he/she is entitled to a monetary salary and fringe
benefits for the period of notice and a separate non-recurring termination compensation
determined on the basis of the executive's monetary salary and fringe benefits for the month
of notice. The termination compensation is not part of the executive's salary and it is not
included in the determination of the salary for the period of notice, termination
compensation or, in case of retirement, pensionable salary. If an executive resigns, he/she is
only entitled to a salary for the period of notice and fringe benefits. When a service
relationship terminates due to retirement, the executive is paid a pension based on his/her
service contract without other compensations.
Shareholdings
At 31.12.2024, the President and CEO held 238,029 Kesko Corporation B shares, which
represented 0.06% of the total number of shares and 0.02% of votes carried by all shares of the
Company. At 31.12.2024, the Group Management Board, including the President and CEO, held
2,824 Kesko Corporation A shares and 581,181 Kesko Corporation B shares, which represented
0.15% of the total number of shares and 0.04% of votes carried by all shares of the Company.
5.3 Share-based compensation
A ccounting policies
The costs relating to share-based payments are recorded in the income statement and the
corresponding liability for share-based payments settled in cash is recognised in the
balance sheet. For equity-settled share-based payment transactions, an increase
corresponding to the expensed amount is recorded in equity.
The Company's Board of Directors has granted a share-based compensation plan to
management under which an award consisting of B series shares and an amount in cash is
paid upon fulfilling the plan’s terms. The fair value of the award paid in shares is the value of
the share at the grant date and it is recognised as an expense on a straight-line basis over
the vesting and commitment period of the plan. The expensed amount is based on the
Group's estimate of the amount of award payable in shares at the end of the vesting period.
The effects of non-market conditions are not included in the fair value of the awards.
Instead, they are accounted for in the assumptions of the number of shares expected to
vest at the end of the vesting period. A cash component is paid to cover the taxes and tax-
like charges incurred under the award. The cash component is recognised as an expense
during the vesting period. Changes in estimates are recorded in the income statement.
As of 1.1.2018 cash-settled share-based payments for which the employer shall deduct, on
behalf of the employee, from the share award such number of shares which covers taxes
and tax-like charges paid in cash, shall be classified in their entirety as equity-settled share-
based payments.

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Share-based commitment and incentive scheme
The purpose of the share-based compensation schemes is to promote Kesko's business and
increase the Company's value by aligning the objectives of the shareholders and executives.
The schemes also aim to commit the grantees to Kesko Group and give them the opportunity
to receive Company shares upon fulfilling the objectives set in the share-based
compensation plan.
The impact of the share-based compensation plans on the Group's profit for 2024 was €-7.0
million (€-8.1 million).
As at 31 December 2024, the amount to be recognised as expense for the financial years
2025-2027 is estimated at a total of €9.4 million. The actual amount may differ from
the estimate.
The performance Share Plan (PSP)
PSP plan is a share-award plan that consists of individual annually commencing share plans,
each with a two-year performance period and a two-year commitment period following the
payment of the potential share award. Kesko's Board decides annually whether to initiate a
new plan. During the commitment period, the shares cannot be pledged or transferred, but
the other rights attached to the shares remain in force. If a person's employment or service
relationship terminates prior to the expiry of a commitment period, the person must, as a
rule, return the shares under transfer restriction to Kesko or its designate for no
consideration. The number of shares granted based on the share-based compensation plan
represents gross earnings, from which the applicable withholding tax is deducted and the
remaining net amount is paid to the participants in shares. Kesko Group's tax free sales (%),
Kesko Group's comparable return on capital employed (ROCE, %) and the absolute total
shareholder return (TSR, %) of a Kesko B share are the performance criteria for the PSPs
initiated during 2020-2021. In addition, the target measuring Kesko's sustainability, is
included as the performance criteria for the PSP plan initiated from 2022 onwards.

Assumptions for share award calculations | PSP 2024-2027 | PSP 2023-2026 | PSP 2022-2025 | PSP 2021-2024
Grant dates | 29.1.2024 | 1.2.2023 | 2.2.2022 | 2.2.2021
Grant date fair value of share award, € | 16.39 | 20.56 | 27.71 | 21.01
Share price at grant date, € | 17.41 | 21.64 | 28.77 | 21.76
Shares transferred in | 2026 | 2025 | 2024 | 2023
Number of share awards granted, maximum, pcs* | 821,516 | 710,557 | 513,800 | 646,970
Changes in the number of shares granted, pcs | -103,250 | -201,770 | -28,475 | -100,950
Actual amount of share award, pcs* | - | - | 183,796 | 409,515
Number of plan participants at end of financial year | 57 | 52 | 60 | 49
Share price at balance sheet date, € | 18.18 | 17.93 | 20.62 | 29.34
Fulfilment of performance criteria, % | - | - | 41.5 | 75.0
Estimated number of share awards returned prior to the end of commitment period, % | 2.5 | 2.5 | 2.5 | 2.5
*Gross number of shares from which the applicable withholding tax is deducted and the remaining net amount is paid in shares.

The performance-based share award plan Key Personnel Share Plan (KPSP)
and Restricted Share Pool (RSP)
KPSP plan consists of individual annually commencing share plans, each with a one-year
performance period and a two-year commitment period. Kesko's Board decides annually
whether to initiate a new plan. The number of shares granted based on the share-based
compensation plan represents gross earnings, from which the applicable withholding tax is
deducted and the remaining net amount is paid to the participants in shares. The
performance criteria for the KPSP comprise indicators related to Kesko's profitability and the
profitability, growth and capital efficiency of the participant's area of responsibility, and
Kesko's shareperformance.
RSP is a secondary share plan for special situations, to be decided upon separately. The plan
consists of annually commencing individual share plans that each have a three-year
commitment period, after which the potentially promised share awards for an individual plan
will be paid to the participants, provided that their employment or service relationship with
Kesko Group continues until the payment of the awards. The number of shares granted
based on the share-based compensation plan represents gross earnings, from which the
applicable withholding tax is deducted and the remaining net amount is paid to the
participants in shares.

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Assumptions for share award calculations | KPSP and RSP 2024 | KPSP and RSP 2023 | KPSP and RSP 2022 | KPSP and RSP 2021
Grant dates | 29.1.2024 | 1.2.2023 | 2.2.2022 | 2.2.2021
Grant date fair value of share award, € | 16.39 | 20.56 | 27.71 | 21.01
Share price at grant date, € | 17.41 | 21.64 | 28.77 | 21.76
Shares transferred in | 2027 | 2026 | 2025 | 2024
Number of share awards granted, maximum, pcs* | 451,387 | 293,850 | 218,734 | 256,769
Changes in the number of shares granted, pcs | -18,970 | -22,012 | -32,211 | -30,421
Actual amount of share award, pcs* | - | 80,518 | 88,746 | 212,724
Number of plan participants at end of financial year | 159 | 147 | 129 | 125
Share price at balance sheet date, € | 18.18 | 17.93 | 20.62 | 29.34
Fulfilment of performance criteria, % | - | 15.9 | 22.3 | 89.3
Estimated number of share awards returned prior to the end of commitment period, % | 2.5 | 2.5 | 2.5 | 2.5
*Gross number of shares from which the applicable withholding tax is deducted and the remaining net amount is paid in shares.

5.4 Legal disputes and possible legal proceedings
Group companies act as plaintiffs, defendants or parties to certain legal proceedings,
disputes or investigations related to the Group’s business operations. Although according to
Kesko’s management's estimate, the outcome of pending disputes and legal and authority
proceedings is unlikely to have any material impact on the Group's financial position, the
outcome of disputes and legal and authority proceedings is difficult to predict.
Investigation by the Finnish Competition and Consumer Authority regarding Onninen Oy –
The Finnish Competition and Consumer Authority (FCCA) investigated actions by Kesko
Group company Onninen as well as several other companies in the HPAC infra plastic pipe
product market for nearly a decade. The investigation concerned events between 2009 and
2016. Kesko was aware of the ongoing investigation when it acquired Onninen in 2016.
Kesko was not at any point of the investigation suspected of violations. In 2022, the FCCA
decided to take the matter to the Market Court, and proposed that a penalty payment be
imposed on Onninen and the other companies. In its decision on 28 August 2024, the Market
Court dismissed all FCCA demands. The Market Court furthermore ordered the FCCA to
reimburse Onninen for litigation costs. Apart from the issue of reimbursement of litigation
costs, the Market Court decision has gained legal force.
Legal proceedings concerning UAB Kesko Senukai Lithuania – Kesko has disclosed, for
example in its financial statements 2023, that it had been party to an arbitration concerning
the shareholder agreement of Kesko’s joint venture UAB Kesko Senukai Lithuania. Other
parties to the arbitration included, for example, the minority shareholders of UAB Kesko
Senukai Lithuania. The arbitration process ended in 2022, and the decision given was final.
However, the opposing parties have in a separate legal proceeding demanded that the
arbitral award be nullified and invalidated. The Helsinki Court of Appeal gave its judgement
in 2024, which did not change the content or finality of the arbitral award. The opposing
parties have been granted a leave to appeal to the Supreme Court on a procedural matter
related to the judgement by the Helsinki Court of Appeal, and the appeal is still pending. The
minority shareholders of UAB Kesko Senukai Lithuania and UAB Kesko Senukai Lithuania
have initiated a new arbitration against Kesko in December 2024 related to the shareholder
agreement between the parties.
5.5 Events after the balance sheet date
Kesko announced on 14 August 2024 that it would acquire Roslev Trælasthandel A/S and
two other Danish builders' merchant companies. The acquisition of Roslev Trælasthandel
received all necessary approvals and was completed on 31 January 2025. (Investor news
release 31.1.2025)

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PARENT COMPANY'S FINANCIAL STATEMENTS (FAS)
Parent company's income statement

€ | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Net sales | 6,659,910,905.58 | 6,662,223,788.54
Other operating income | 887,656,680.44 | 898,211,500.06
Materials and services | -5,913,991,150.11 | -5,893,409,138.14
Change in inventory | 12,773,894.68 | -23,008,211.48
Employee benefit expenses | -378,339,561.48 | -384,770,788.96
Depreciation, amortisation and impairment | -126,306,061.75 | -113,486,865.95
Other operating expenses | -783,861,147.15 | -754,854,973.67
Operating profit | 357,843,560.21 | 390,905,310.40
Finance income and costs | 7,449,393.46 | 160,251,693.28
Profit before appropriations and taxes | 365,292,953.67 | 551,157,003.68
Appropriations |  |
Change in depreciation reserve | -30,492,954.39 | -23,549,009.97
Group contribution | 105,653,373.11 | 64,919,581.06
Profit before taxes | 440,453,372.39 | 592,527,574.77
Income taxes | -83,324,585.17 | -82,909,736.55
Profit for the financial year | 357,128,787.22 | 509,617,838.22

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Parent company's balance sheet

€ | 31 Dec. 2024 | 31 Dec. 2023
ASSETS |  |
NON-CURRENT ASSETS |  |
INTANGIBLE ASSETS |  |
Intangible rights | 4,401,946.87 | 5,125,872.64
Other intangible assets | 248,750,974.93 | 219,153,791.56
Prepayments | 3,079,496.77 | 4,150,302.51
| 256,232,418.57 | 228,429,966.71
PROPERTY, PLANT AND EQUIPMENT |  |
Land and waters |  |
Owned | 289,933,581.65 | 277,174,152.62
Leasehold interests and connection fees | 7,455,791.65 | 7,289,059.93
Buildings | 734,977,190.65 | 658,740,908.91
Machinery and equipment | 99,474,165.78 | 88,443,233.36
Other tangible assets | 6,238,278.31 | 6,341,067.34
Prepayments and construction in progress | 68,421,488.72 | 113,022,536.55
| 1,206,500,496.76 | 1,151,010,958.71
INVESTMENTS |  |
Investments in subsidiaries | 1,544,521,207.49 | 1,281,768,095.60
Investments in associates | 122,431,239.85 | 121,462,239.85
Other investments | 26,302,948.15 | 24,693,492.49
| 1,693,255,395.49 | 1,427,923,827.94
CURRENT ASSETS |  |
INVENTORIES |  |
Finished products/goods | 315,230,055.04 | 302,380,900.60
| 315,230,055.04 | 302,380,900.60

€ | 31 Dec. 2024 | 31 Dec. 2023
RECEIVABLES |  |
Long-term |  |
Receivables from subsidiaries | 7,664,587.02 | 34,933,925.92
Receivables from associates | 58,018,585.04 | 61,386,166.16
Loan receivables | 751,838.24 | 1,071,723.22
Other receivables | 12,196,937.72 | 10,320,055.51
| 78,631,948.02 | 107,711,870.81
Short-term |  |
Trade receivables | 391,096,017.14 | 401,544,346.37
Receivables from subsidiaries | 384,073,992.89 | 419,460,312.16
Receivables from associates | 5,098,845.43 | 9,491,959.99
Loan receivables | 292,993.99 | 276,310.07
Other receivables | 11,853,472.66 | 12,647,229.78
Prepayments and accrued income | 93,557,861.75 | 89,145,137.15
| 885,973,183.86 | 932,565,295.52
OTHER FINANCIAL ASSETS | 15,000,000.00 | -
CASH AND CASH EQUIVALENTS | 457,966,759.80 | 200,012,586.12
TOTAL ASSETS | 4,908,790,257.54 | 4,350,035,406.41

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€ | 31 Dec. 2024 | 31 Dec. 2023
EQUITY AND LIABILITIES |  |
CAPITAL AND RESERVES |  |
Share capital | 197,282,584.00 | 197,282,584.00
Share premium | 197,498,010.90 | 197,498,010.90
Reserve of invested non-restricted equity | 22,753,307.40 | 22,753,307.40
Other reserves | 243,415,795.55 | 243,415,795.55
Retained earnings | 915,749,904.54 | 808,916,472.00
Profit for the financial year | 357,128,787.22 | 509,617,838.22
| 1,933,828,389.61 | 1,979,484,008.07
APPROPRIATIONS |  |
Depreciation reserve | 237,152,690.30 | 206,658,990.11
PROVISIONS |  |
Provisions | 7,717,854.63 | 2,017,574.84
LIABILITIES |  |
Non-current |  |
Notes | 300,000,000.00 | 0.00
Loans from financial institutes | 620,000,000.00 | 650,000,000.00
Pension loans | 20,355,000.00 | 32,349,000.00
Other creditors | 18,729,124.53 | 19,001,617.22
| 959,084,124.53 | 701,350,617.22
Current |  |
Loans from financial institutes | 150,000,000.00 | 0.00
Pension loans | 11,994,000.00 | 11,994,000.00
Advances received | 20,095,560.65 | 31,541,172.75
Trade payables | 708,804,747.35 | 739,185,366.57
Payables to subsidiaries | 363,884,310.23 | 262,814,413.54
Payables to associates | 6,684,450.49 | 5,728,650.62
Other payables | 272,966,364.29 | 183,827,426.62
Accruals and deferred income | 236,577,765.46 | 225,433,186.07
| 1,771,007,198.47 | 1,460,524,216.17
TOTAL LIABILITIES | 4,908,790,257.54 | 4,350,035,406.41

|  | 162

Parent company's cash flow statement

€ | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Cash flows from operating activities |  |
Profit before appropriations | 365,292,953.67 | 551,153,503.68
Adjustments |  |
Depreciation according to plan | 126,306,061.75 | 113,486,865.95
Finance income and costs | -7,449,393.46 | -160,251,693.28
Other adjustments | 23,936,772.13 | -7,413,552.15
| 508,086,394.09 | 496,975,124.20
Change in working capital |  |
Current non-interest-bearing receivables, increase (-)/decrease (+) | 11,619,535.70 | 27,535,297.96
Inventories increase (-)/decrease (+) | -12,849,154.44 | 23,008,211.48
Current non-interest-bearing liabilities, increase (+)/ decrease (-) | -24,111,780.18 | -19,265,630.51
| -25,341,398.92 | 31,277,878.93
Interests paid and other finance costs | -70,797,801.96 | -44,423,936.93
Interests received | 31,059,861.59 | 34,714,965.24
Dividends received | 61,049,078.93 | 168,684,828.28
Income tax paid | -93,217,047.97 | -58,598,511.77
| -71,905,909.41 | 100,377,344.82
Net cash generated from operating activities | 410,839,085.76 | 628,630,347.95
Cash flows from investing activities |  |
Purchases of property, plant, equipment and intangible assets | -287,056,919.33 | -416,858,310.90
Acquisitions of subsidiaries | -247,385,142.08 | -96,464,969.71
Acquisitions of associates | -969,000.00 | -
Proceeds from other investments | 9,570.00 | 71,393.23
Proceeds from disposal of property, plant, equipment and intangible assets | 8,413,389.78 | 364,804.87
Long-term receivables, increase (-)/decrease (+) | 29,989,808.69 | 48,113,571.58
Other financial assets, increase (-)/decrease (+) | -15,000,000.00 | 35,826,114.02
Net cash used in investing activities | -511,998,292.94 | -428,947,396.91

€ | 1 Jan.-31 Dec. 2024 | 1 Jan.-31 Dec. 2023
Cash flows from financing activities |  |
Interest-bearing liabilities, increase (+)/decrease (-) | 532,069,342.98 | 86,878,735.01
Short-term interest-bearing receivables, increase (-)/ decrease (+) | 34,681,997.40 | 34,350,288.54
Dividends paid | -320,328,125.47 | -430,315,181.18
Group contributions received and paid | 105,653,373.11 | 64,919,581.06
Other items | 7,036,792.84 | 14,600,317.10
Net cash used in financing activities | 359,113,380.86 | -229,566,259.47
Change in cash and cash equivalents | 257,954,173.68 | -29,876,308.43
Cash and cash equivalents as at 1 Jan. | 200,012,586.12 | 229,888,894.55
Cash and cash equivalents as at 31 Dec. | 457,966,759.80 | 200,012,586.12

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Notes to the parent company's financial statements
Note 1. Principles used for preparing the financial statements
Kesko Corporation's financial statements have been prepared in compliance with the Finnish
Accounting Standards (FAS).
Non-current assets
Intangible assets
Intangible assets are stated in the balance sheet at cost less depreciation according to plan
and possible amortisations.
Depreciation plan
• Other capitalised expenditure 5-10 years
• IT software and licences 3-5 years
Property, plant and equipment
Property, plant and equipment are stated in the balance sheet at cost less depreciation
according to plan and possible amortisations.
Depreciation plan
Depreciation according to plan is calculated on a straight line basis so as to write off the cost
of property, plant and equipment over their estimated useful lives.
The most common estimated useful lives are:
• Buildings 5-33 years
• Fixtures and fittings 8 years
• Machinery and equipment 25% reducing balance method, from
1 January 2023 8 years
• Warehouse automation equipment 10 years
• Transportation fleet 5 years
• IT equipment 3-8 years
• Other tangible assets 5-14 years
Leasehold interests are depreciated during their likely lease period. Land and connection fees
have not been depreciated. The total of depreciation according to plan and the change in
depreciation reserve comply with the Finnish Business Tax Act. The change in depreciation
reserve has been treated as appropriations.
Valuation of inventories
Inventories are stated, using the moving-average cost method, at lower of direct purchase
cost, replacement cost and probable selling price.
Valuation of financial assets
Marketable securities have been valued at the lower of cost and net realisable value.
Foreign currency items
Foreign currency transactions have been recorded in euros using the rate of exchange at the
date of transaction. Foreign currency receivables and payables have been translated into
euros using the rate of exchange at the balance sheet date. If a receivable or a payable is tied
to a fixed rate of exchange, it has been used for translation. Exchange rate differences have
been recognised in profit or loss.
Derivative contracts
Interest rate derivatives
Interest rate derivatives are used to modify the durations of borrowings. The target duration
is between 1 and 4 years. Cash flows arising from interest rate derivatives are recognised
during the financial year as interest income or expenses, according to the maturity date. In
the financial statements, outstanding interest rate forward contracts, interest rate future
contracts, interest rate option contracts and interest rate swap contracts are stated at fair
value, but unrealised revaluation is not stated as income. Any valuation losses are included in
interest expenses.
Foreign currency derivatives
Foreign currency derivatives are used for hedging against translation and transaction risks.
Foreign currency derivatives are used for hedging against commercial foreign exchange risk.
Foreign exchange forward contracts are valued using the forward exchange rate of the
balance sheet date. The exchange differences arising from outstanding derivative contracts
are reported in financial items and adjustment items of sales and purchases. If a derivative

|  | 164

has been used for hedging a foreign-currency-denominated asset, the change in value has
been recognised against that of the asset item. The premiums of option contracts are
included in the balance sheet accruals until they expire, or if a value change at the balance
sheet date so requires, recognition in profit or loss.
Commodity derivatives
Ankkuri-Energia Oy, a Kesko Corporation subsidiary, uses electricity derivatives to balance
the energy costs of the Group and its retailers. Kesko Corporation is an external
counterparty in electricity derivatives with a bank, and enters into corresponding internal
hedge with Ankkuri-Energia Oy. At no stage does Kesko Corporation have derivative
positions, and thus there are no effects on profit or loss. The electricity price risk is reviewed
on a 5-year time span. With respect to derivatives hedging the price of electricity supplied
during the financial year, change in fair value is recognised at Kesko under finance income
and cost. Unrealised gains and losses on contracts hedging future purchases are not
recognised in profit or loss.
Pension plans
Personnel's statutory pension provision is organised through pension insurance companies
and the voluntary supplementary pension provision is mainly organised through Kesko
Pension Fund. Pension costs are recognised as expense in the income statement.
Provisions
Provisions stated in the balance sheet include items committed to under agreements or
otherwise but not yet realised. Changes in provisions are included in the income statement.
Rent liabilities for vacant rented premises no longer used for the Group's business
operations, as well as losses resulting from renting the premises to third parties, are included
in provisions.
Income tax
Income tax includes the income tax payments for the period calculated based on the profit
for the period, and taxes payable for prior periods, or tax refunds. Deferred taxes are not
included in the parent company's income statement and balance sheet.
Notes to the income statement
Note 2. Net sales by division

€ million | 2024 | 2023
Grocery trade | 5,770.0 | 5,724.6
Building and home improvement trade | 888.4 | 937.7
Others | 1.5 | 0.0
Total | 6,659.9 | 6,662.2

Note 3. Material and services

€ million | 2024 | 2023
Material and services | -5,802.0 | -5,782.8
Change in inventory | 12.8 | -23.0
External services | -112.0 | -110.6
Total | -5,901.2 | -5,916.4

Note 4. Other operating income

€ million | 2024 | 2023
Gains on sales of real estate and shares | 0.3 | 0.2
Rent income | 110.4 | 99.4
Fees for services | 577.5 | 580.6
Profits from mergers | - | 26.1
Others | 199.4 | 192.0
Total | 887.7 | 898.2

|  | 165

Note 5. Employee benefit expenses

€ million | 2024 | 2023
Salaries and fees | -314.6 | -316.5
Social security costs |  |
Pension costs | -55.3 | -56.7
Other social security costs | -8.5 | -11.5
Total | -378.3 | -384.8

The average number of personnel at Kesko Corporation was 7,403 (7,402) persons.
Salaries and fees to the management

€ million | 2024 | 2023
Managing Director | 3.3 | 3.4
Members of the Board of Directors | 0.5 | 0.4
Total | 3.8 | 3.8

Specification of the management's salaries and fees is included in the notes to the
consolidated financial statements.
Note 6. Depreciation, amortisation and impairment

€ million | 2024 | 2023
Depreciation according to plan | -125.0 | -113.0
Impairment, non-current assets | -1.3 | -0.5
Total | -126.3 | -113.5

Note 7. Other operating expenses

€ million | 2024 | 2023
Rent expenses | -361.8 | -350.6
Marketing expenses | -149.1 | -152.7
Maintenance of real estate and store sites | -109.2 | -102.8
Losses on disposals of non-current assets | -1.7 | -
ICT expenses | -87.1 | -78.0
Losses from mergers | -14.6 | -11.8
Other operating expenses | -60.3 | -58.9
Total | -783.9 | -754.9

Auditors' fees

€ million | 2024 | 2023 |
Audit firm Deloitte |  |  |
Audit | 0.4 | 0.4 |
Other services | 0.1 | 0.2 |
Total | 0.5 | 0.5 |

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Note 8. Finance income and costs

€ million | 2024 | 2023
Income from long-term investments |  |
Dividend income from subsidiaries | 38.3 | 146.7
Dividend income from associates | 22.3 | 19.6
Dividend income from others | 0.4 | 2.3
Gains on sales of investments | 0.0 | 0.4
Income from long-term investments, total | 61.1 | 169.0
Other interest and finance income |  |
From subsidiaries | 18.4 | 24.0
From others | 18.9 | 21.9
Interest and finance income, total | 37.3 | 45.9
Impairment of investments held as non-current assets |  |
Impairment of shares | -14.9 | -
Changes in fair value | - | 0.1
Impairment and changes in fair value of investments held as non-current assets, total | -14.9 | 0.1
Interest and other finance costs |  |
To subsidiaries | -27.9 | -20.5
To others | -48.1 | -34.2
Interest and finance costs, total | -76.0 | -54.7
Total | 7.4 | 160.2

Note 9. Appropriations

€ million | 2024 | 2023
Difference between depreciation according to plan and depreciation in taxation | -30.5 | -23.5
Group contributions received | 119.8 | 88.9
Group contributions paid | -14.1 | -24.0
Total | 75.2 | 41.4

As of the 2020 financial year, an increased 50% depreciation on machinery and equipment
and similar fixed assets acquired has been made in compliance with the Finnish Business Tax
Act.
Note 10. Changes in provisions

€ million | 2024 | 2023
Other changes | 5.7 | -0.2
Total | 5.7 | -0.2

Note 11. Income taxes

€ million | 2024 | 2023
Income taxes on group contributions | -21.1 | -13.0
Income taxes on ordinary activities | -62.3 | -69.8
Taxes for prior years | 0.1 | -0.1
Total | -83.3 | -82.9

Note 12. Deferred taxes
Deferred tax assets and liabilities have not been recorded on the balance sheet. The deferred
tax liability on accumulated appropriations is €47.4 million. The amount of other deferred tax
liabilities or assets is not material.

|  | 167

Notes to the balance sheet
Note 13. Intangible assets

2024 € million | Intangible rights | Other intangible assets | Prepayments | Intangible assets total
Acquisition cost as at 1 Jan. | 16.9 | 468.4 | 4.2 | 489.4
Increases | 0.9 | 63.9 | 2.0 | 66.8
Transferred in mergers | - | 0.2 | - | 0.2
Decreases | -0.0 | -1.4 | -0.2 | -1.6
Transfers between items | 0.1 | 16.9 | -2.8 | 14.2
Acquisition cost as at 31 Dec. | 17.9 | 548.1 | 3.1 | 569.1
Accumulated depreciation as at 1 Jan. | -11.8 | -249.2 | - | -261.0
Transferred in mergers | - | -0.1 | - | -0.1
Accumulated depreciation on decreases and transfers | 0.0 | 0.9 | - | 0.9
Depreciation and amortisations for the financial year | -1.7 | -51.0 | - | -52.7
Accumulated depreciation as at 31 Dec. | -13.5 | -299.3 | - | -312.8
Book value as at 31 Dec. | 4.4 | 248.8 | 3.1 | 256.2

2023 € million | Intangible rights | Other intangible assets | Prepayments | Intangible assets total
Acquisition cost as at 1 Jan. | 16.5 | 405.2 | 8.8 | 430.6
Increases | 1.3 | 49.9 | 2.5 | 53.7
Decreases | -1.0 | -5.8 | -0.0 | -6.8
Transfers between items | 0.0 | 19.1 | -7.2 | 12.0
Acquisition cost as at 31 Dec. | 16.9 | 468.4 | 4.2 | 489.4
|  |  |  | -
Accumulated depreciation as at 1 Jan. | -11.1 | -209.2 | - | -220.2
Accumulated depreciation on decreases and transfers | 1.0 | 5.8 | - | 6.8
Depreciation and amortisations for the financial year | -1.7 | -45.9 | - | -47.6
Accumulated depreciation as at 31 Dec. | -11.8 | -249.2 | - | -261.0
Book value as at 31 Dec. | 5.1 | 219.2 | 4.2 | 228.4

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Note 14. Property, plant and equipment

2024 € million | Land and waters, owned | Land and waters, leasehold interests | Buildings | Machinery and equipment | Other tangible assets | Prepayments and construction in progress | Tangible assets total
Acquisition cost as at 1 Jan. | 277.2 | 7.8 | 1,084.3 | 311.2 | 24.4 | 113.0 | 1,817.9
Increases | 7.8 | 0.1 | 56.6 | 29.3 | 0.6 | 50.3 | 144.7
Transferred in mergers | 0.8 | 0.1 | 14.3 | 0.0 | - | - | 15.2
Decreases | -2.0 | -0.4 | -4.0 | -6.5 | - | -6.9 | -19.9
Transfers between items | 6.2 | 0.0 | 59.4 | 7.6 | 0.5 | -88.1 | -14.3
Acquisition cost as at 31 Dec. | 289.9 | 7.6 | 1,210.7 | 341.5 | 25.6 | 68.4 | 1,943.7
Accumulated depreciation as at 1 Jan. | - | -0.5 | -425.5 | -222.7 | -18.1 | - | -666.9
Transferred in mergers | - | - | -6.7 | -0.0 | -0.0 | - | -6.7
Accumulated depreciation on decreases and transfers | - | 0.4 | 2.3 | 5.8 | 0.1 | - | 8.6
Depreciation and amortisations for the financial year | - | -0.0 | -45.8 | -25.1 | -1.3 | - | -72.3
Accumulated depreciation as at 31 Dec. | - | -0.2 | -475.7 | -242.0 | -19.3 | - | -737.2
Book value as at 31 Dec. | 289.9 | 7.5 | 735.0 | 99.5 | 6.2 | 68.4 | 1,206.5

2023 € million | Land and waters, owned | Land and waters, leasehold interests | Buildings | Machinery and equipment | Other tangible assets | Prepayments and construction in progress | Tangible assets total
Acquisition cost as at 1 Jan. | 247.3 | 7.1 | 942.5 | 311.1 | 23.3 | 87.5 | 1,618.8
Increases | 27.3 | 0.4 | 84.8 | 14.8 | 0.4 | 92.1 | 219.8
Transferred in mergers | 1.9 | 0.1 | 8.7 | 0.1 | 0.1 | - | 10.8
Decreases | -0.1 | - | 0.0 | -17.8 | - | -1.6 | -19.5
Transfers between items | 0.8 | 0.2 | 48.2 | 3.0 | 0.7 | -64.9 | -12.1
Acquisition cost as at 31 Dec. | 277.2 | 7.8 | 1,084.3 | 311.2 | 24.4 | 113.0 | 1,817.9
Accumulated depreciation as at 1 Jan. | - | -0.5 | -385.6 | -213.5 | -16.8 | - | -616.4
Transferred in mergers | - | - | -2.0 | -0.1 | -0.1 | - | -2.2
Accumulated depreciation on decreases and transfers | - | - | 0.0 | 17.1 | - | - | 17.1
Depreciation and amortisations for the financial year | - | -0.0 | -37.9 | -26.3 | -1.2 | - | -65.4
Accumulated depreciation as at 31 Dec. | - | -0.5 | -425.5 | -222.7 | -18.1 | - | -666.9
Book value as at 31 Dec. | 277.2 | 7.3 | 658.7 | 88.4 | 6.3 | 113.0 | 1,151.0

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Note 15. Investments

2024 € million | Investments in subsidiaries | Investments in associates | Other investments | Total
Acquisition cost as at 1 Jan. | 1,295.4 | 121.5 | 24.7 | 1,441.5
Increases | 295.8 | 1.0 | 1.5 | 298.3
Transferred in mergers | - | - | 0.0 | 0.0
Decreases | -18.2 | - | -0.0 | -18.3
Transfers between items | - | - | 0.1 | 0.1
Acquisition cost as at 31 Dec. | 1,573.0 | 122.4 | 26.3 | 1,721.7
Impairment as at 1 Jan. | -13.6 | - | - | -13.6
Impairments on decreases for the financial year | -14.9 | - | -0.0 | -14.9
Impairment as at 31 Dec. | -28.5 | - | -0.0 | -28.5
Book value as at 31 Dec. | 1,544.5 | 122.4 | 26.3 | 1,693.3

Specification of Kesko Corporation's ownership interests in other co mpanies as at 31 December 2024 is pres ented in the notes to the consolidated financial statements.

2023 € million | Investments in subsidiaries | Investments in associates | Other investments | Total
Acquisition cost as at 1 Jan. | 1,093.9 | 114.0 | 23.7 | 1,231.6
Increases | 229.2 | 7.5 | 1.0 | 237.6
Transferred in mergers | - | - | 0.0 | 0.0
Decreases | -27.7 | - | -0.1 | -27.8
Transfers between items | - | - | 0.1 | 0.1
Acquisition cost as at 31 Dec. | 1,295.4 | 121.5 | 24.7 | 1,441.5
Impairment as at 1 Jan. | -13.6 | - | - | -13.6
Impairment as at 31 Dec. | -13.6 | - | - | -13.6
Book value as at 31 Dec. | 1,281.8 | 121.5 | 24.7 | 1,427.9

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Note 16. Receivables
Receivables from subsidiaries

€ million | 2024 | 2023
Long-term receivables |  |
Loan receivables | 7.7 | 34.9
Long-term receivables, total | 7.7 | 34.9
Short-term receivables |  |
Trade receivables | 11.3 | 10.3
Loan receivables | 337.7 | 380.0
Prepayments and accrued income | 35.2 | 29.2
Short-term receivables, total | 384.1 | 419.5
Total | 391.7 | 454.4

Receivables from associates and joint ventures

€ million | 2024 | 2023
Long-term receivables |  |
Loan receivables | 58.0 | 61.4
Other receivables | - | 0.0
Long-term receivables, total | 58.0 | 61.4
Short-term receivables |  |
Accrued income | 1.4 | 1.0
Other receivables | 3.7 | 8.5
Short-term receivables, total | 5.1 | 9.5
Total | 63.1 | 70.9

Kesko Corporation has long-term loan receivable from its associated company, Mercada Oy,
in the amount of €56.0 million and from its joint venture, UAB Kesko Senukai, in the amount
of €0.5 million.
Prepayments and accrued income

€ million | 2024 | 2023
Taxes | 5.6 | -
Fees for services | 4.6 | 5.5
Employee benefit expenses | 6.4 | 6.6
Purchases | 30.8 | 31.1
Others | 46.2 | 45.9
Total | 93.6 | 89.1

Note 17. Shareholders' equity

€ million | Share capital | Share premium | Contingen cy fund | Reserve of invested non- restricted equity | Retained earnings | Total equity
Balance as at 1 January 2023 | 197.3 | 197.5 | 243.4 | 22.8 | 1,232.4 | 1,893.3
Dividends |  |  |  |  | -429.6 | -429.6
Treasury shares |  |  |  |  | 6.1 | 6.1
Profit for the year |  |  |  |  | 509.6 | 509.6
Balance as at 31 December 2023 | 197.3 | 197.5 | 243.4 | 22.8 | 1,318.5 | 1,979.5
Dividends |  |  |  |  | -405.9 | -405.9
Treasury shares |  |  |  |  | 3.1 | 3.1
Profit for the year |  |  |  |  | 357.1 | 357.1
Balance as at 31 December 2024 | 197.3 | 197.5 | 243.4 | 22.8 | 1,272.9 | 1,933.8

Restricted equity | 2024 | 2023
Share capital | 197.3 | 197.3
Share premium | 197.5 | 197.5
Total | 394.8 | 394.8

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Non-restricted equity | 2024 | 2023
Contingency fund | 243.4 | 243.4
Reserve of invested non-restricted equity | 22.8 | 22.8
Retained earnings | 1,272.9 | 1,318.5
Total | 1,539.0 | 1,584.7

Calculation of distributable profits | 2024 | 2023
Other reserves | 266.2 | 266.2
Retained earnings | 915.7 | 808.9
Profit for the year | 357.1 | 509.6
Total | 1,539.0 | 1,584.7

On 31 December 2024, Kesko Corporation’s distributable assets totalled €1,539,047,794.71.

Breakdown of parent company shares | Kpl
A shares | 126,948,028
B shares | 273,130,980
Total | 400,079,008

Votes attached to shares | Ääniä
A share | 10
B share | 1

Board's authorisations to acquire and issue own shares
On 31 December 2024, the company held a total of 2,122,600 of its own B shares that had
been acquired based on the Board authorisation granted by the General Meeting in the
financial years 2018 and 2014. The current number of B shares acquired in the year 2018
totals 2,000,000 and the number of shares acquired in 2014 122,600. The share numbers
correspond to numbers calculated after the share split carried out in 2020. The shares are
held by the company as treasury shares and the Board has the right to issue them. The
€24.4 million cost of shares for the B shares acquired in the 2018 financial year and held by
the company and the €1.0 million cost of shares for the B shares acquired in 2014 have been
deducted from retained earnings in equity. The Board has the authorisation granted by the
Annual General Meeting on 26 March 2024 to decide on the issuance of a maximum of
33,000,000 B series shares and to decide on the repurchase of a maximum of 16,000,000
Kesko B shares. The authorisation is valid until 30 June 2025.
Treasury shares
In 2024 , Kesko Corporation transferred 196,208 Kesko B shares held as treasury shares to
members of management and other key persons in the company, while a total of 17,100 B
shares were returned to Kesko in accordance with the terms and conditions of Kesko's share-
based commitment and incentive plan. Kesko issued related stock exchange releases 15
March 2024, 20 March 2024, 18 June 2024 and 8 July 2024. Kesko issued a stock exchange
release on 30 January 2024 regarding the most recent share-based commitment and
incentive plans. In addition, Kesko transferred 7,789 B shares held by the company as
treasury shares to members of Kesko’s Board of Directors as part of their annual fees, and
issued a related stock exchange release on 26 April 2024.
Kesko’s Annual General Meeting of 26 March 2024 authorised the Board to decide on the
issuance of a maximum of 33,000,000 new B series shares or B shares held by the company
as treasury shares, and on the repurchase of a maximum of 16,000,000 of the company’s
own B shares. The authorisations are valid until 30 June 2025, and were communicated in a
stock exchange release issued on 26 March 2024.

| Shares
Own B shares held by the Company as at 31 December 2023 | 2,309,497
Transferred, share-based compensation scheme | -196,208
Transferred, Board of Directors | -7,789
Returned during the financial year | 17,100
Own B shares held by the Company as at 31 December 2024 | 2,122,600

Note 18. Provisions

€ million | 2024 | 2023
Provisions for leases | 6.4 | 1.4
Other provisions | 1.3 | 0.6
Total | 7.7 | 2.0

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Note 19. Non-current liabilities
Kesko has five bilateral loans totalling €620 million, with interest margins that take into
account Kesko’s sustainability targets for carbon footprint and food waste, as well as
emission reduction targets for direct suppliers of goods and services in Kesko’s value chain.
Kesko drew one new bilateral loan and in addition loans were amortized during year 2024.
On 2 October 2024 Kesko issued unsecured senior green notes worth €300 million, which
will mature on 2 February 2030.
Note 20. Current liabilities

€ million | 2024 | 2023
Liabilities to subsidiaries |  |
Trade payables | 7.5 | 7.6
Accruals and deferred income | 9.6 | 11.4
Other payables | 346.8 | 243.8
Total | 363.9 | 262.8
Liabilities to associates |  |
Trade payables | 0.1 | -
Accruals and deferred income | 0.0 | 0.0
Other payables | 6.6 | 5.6
Total | 6.7 | 5.7
Accruals and deferred income |  |
Employee benefit expenses | 102.8 | 108.5
Accruals and deferred income from purchases | 32.0 | 20.0
Taxes | 0.0 | 4.2
Fees for services | 16.4 | 16.9
Others | 85.4 | 75.8
Total | 236.6 | 225.4

Note 21. Non-interest-bearing liabilities

€ million | 2024 | 2023
Current liabilities | 1,198.5 | 1,141.4
Total | 1,198.5 | 1,141.4

Note 22. Guarantees, commitments and contingencies

€ million | 2024 | 2023
Real estate mortgages |  |
For own debt | 162.1 | 162.1
For subsidiaries | 0.7 | 0.7
Pledged shares | 9.0 | 9.0
Guarantees |  |
For own debt | 0.4 | 0.5
For subsidiaries | 88.4 | 70.9
Other liabilities and liability engagements |  |
For own debt | 53.8 | 49.4
Rent liabilities on machinery and fixtures |  |
Due within a year | 7.5 | 7.1
Due later | 6.5 | 7.0
Rent liabilities on real estate |  |
Due within a year | 299.3 | 306.6
Due later | 1,512.2 | 1,512.2

Foreign currency risks
The result of the Company's operating activities is affected by the amount of working capital
financing granted by the Company to its foreign subsidiaries and in part also, in its capacity
as the Group's parent company, the subsidiaries' hedgings against their parent.
The foreign currency exposure is hedged using foreign currency derivatives in accordance
with the confirmed foreign currency risk policy. The fair value of foreign currency derivatives
is calculated by measuring them based on quoted market prices at the balance sheet date.
The measurement of derivatives is based on direct market data, in other words, they are
classified at level 2. The maximum credit risk of these derivatives corresponds to their fair
value at the balance sheet date.

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The results of derivatives are recognised in financial items.

Company's transaction exposure as at 31 Dec. 2024 € million | USD | SEK | NOK | PLN
Transaction risk | -7.7 | -42.4 | 37.0 | -6.0
Hedging derivatives | 36.6 | 37.1 | -42.4 | 4.2
Exposure | 28.9 | -5.3 | -5.4 | -1.8

Company's transaction exposure as at 31 Dec. 2023 € million | USD | SEK | NOK | PLN
Transaction risk | -4.8 | 58.4 | 54.4 | -11.2
Hedging derivatives | 17.2 | -47.3 | -42.3 | 5.1
Exposure | 12.4 | 11.1 | 12.1 | -6.1

The sensitivity analysis of transaction exposure shows the profit impact of a +/-10%
exchange rate change on the Company's foreign currency denominated acquisitions and
hedging foreign currency derivatives.

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2024 € million | USD | SEK | NOK | PLN
Change +10% | -2.6 | 0.5 | 0.5 | 0.2
Change -10% | 3.2 | -0.6 | -0.6 | -0.2

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2023 € million | USD | SEK | NOK | PLN
Change +10% | -1.1 | -1.0 | -1.1 | 0.6
Change -10% | 1.4 | 1.2 | 1.3 | -0.7

Derivatives

Fair values of derivative contracts € million | 31 Dec. 2024 Positive fair value (balance sheet value) | 31 Dec. 2024 Negative fair value (balance sheet value) | 31 Dec. 2023 Positive fair value (balance sheet value) | 31 Dec. 2023 Negative fair value (balance sheet value)
Currency derivatives | 1.6 | -0.4 | 0.4 | -1.8
Interest rate derivatives | 7.2 | -4.7 | 14.8 | -8.5

Notional amounts of derivative contracts € million | 31 Dec. 2024 Notional amount | 31 Dec. 2023 Notional amount
Currency derivatives | 137.7 | 133.0
Interest rate derivatives | 430.0 | 530.0

All currency derivatives mature in 2025. Interest rate derivatives mature in 2025, 2026 and
2027.

€ million | 2024 | Fair value | 2023 | Fair value
Liabilities arising from derivative instruments |  |  |  |
Values of underlying instruments as at 31 Dec. |  |  |  |
Interest rate derivatives |  |  |  |
Interest rate swaps | 430 | 2.5 | 530 | 6.3
Foreign currency derivatives |  |  |  |
Forward and future contracts | 138 | 1.2 | 133 | -1.3
Outside the Group | 125 | 1.4 | 125 | -1.6
Inside the Group | 13 | -0.2 | 8 | 0.2
Commodity derivatives |  |  |  |
Electricity derivatives | 91 | - | 79 | -
Outside the Group | 45 | -3.2 | 39 | 5.7
Inside the Group | 45 | 3.2 | 39 | -5.7

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Note 23. Cash and cash equivalents within the statement of cash
flow

€ million | 2024 | 2023
Financial assets at amortised cost (maturing in less than 3 months) | 185.2 | 3.3
Cash and cash equivalents | 272.8 | 196.7
Total | 458.0 | 200.0

In the statement of cash flows, cash and cash equivalents include those recognised in the
balance sheet and portions of available-for-sale financial assets with maturities of less than
three months from acquisition and also financial assets at fair value through profit and loss.
Note 24. Related parties
Kesko Corporation’s related parties include the company’s management (the Board of
Directors, President and CEO and the Group Management Board) and the companies
controlled by them, their family members and companies controlled by the family members,
the Group’s subsidiaries, associates and joint ventures, and Kesko Pension Fund. The
subsidiaries, associates and joint ventures are listed in a separate note (Note 5.2).
Some members of the Kesko Board are K-retailers. Kesko Corporation sells goods and
services to companies controlled by them. Goods and services have been sold to related
parties on normal market terms and conditions and at market prices.

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SIGNATURES
Signatures for financial statements, report by the Board
of Directors and sustainability statement
The financial statements prepared in accordance with the applicable set of accounting
standards give a true and fair view of the assets, liabilities, financial position and profit or loss
of the company and the companies included in its consolidated financial statements.
The Report by the Board of Directors presents a fair review of the development and
performance of, on the one hand, the company, and on the other hand, the companies
included in its consolidated financial statements, as well as a description of the significant
risks and uncertainties and the company’s position.
The sustainability statement included in the Report by the Board of Directors has been
prepared in compliance with the sustainability reporting standards referred to in chapter 7,
section 2, paragraph 8 of the Finnish Accounting Act, as well as Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of the Council (Taxonomy Regulation).
Helsinki, 4. February 2025

Esa Kiiskinen | Peter Fagernäs |
Jannica Fagerholm | Pauli Jaakola | Piia Karhu
Jussi Perälä | Timo Ritakallio | Jorma Rauhala
|  | President and CEO

The Auditor’s note
Our auditor’s report has been issued today.
Helsinki, 4. February 2025

Deloitte Oy
Audit Firm
Jukka Vattulainen
APA

|  | 176

AUDITOR'S REPORT

(Translation of the Finnish original)

To the Annual General Meeting of Kesko Oyj
Report on the Audit of Financial Statements
Opinion
We have audited the financial statements of Kesko Oyj (business identity code 0109862-8)
for the year ended 31 December, 2024. The financial statements comprise the consolidated
income statement, statement of comprehensive income, balance sheet, statement of
changes in equity, statement of cash flows and notes, including material accounting policy
information, as well as the parent company’s balance sheet, income statement, statement of
cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU,
• the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with
the ethical requirements that are applicable in Finland and are relevant to our audit, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to
the parent company and group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not provided any prohibited non-
audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services
that we have provided have been disclosed in note 2.5 to the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
We have also addressed the risk of management override of internal controls. This includes
consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud.

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Key audit matter | How our audit addressed the key audit matter
Revenue recognitions Refer to accounting policies for the consolidated financial statements and note 2.1 . Consolidated Net Sales of Kesko Oyj amounted to EUR 11,920.1 million (EUR 11,783.8 million). Kesko operates in grocery trade, building and technical trade, and car trade through wide sales- and retail network. Consolidated net sales comprise the sale of goods, services and energy from contracts with customers. The share of the of service and energy sales in total net sales is not significant. The Group sells products to retailers and other retail dealers and engages in own retailing. Net sales is a key business and economic indicator and consists of a significant volume of transactions. For this reason, the functionality of information system controls is emphasised in revenue recognition. A significant part of the Kesko Group's net sales is automatically recognised in accounting through IT systems based on the fulfilment of the sales performance obligation. Revenue recognition due to its significance require specific attention both from the accounting and the auditing perspective. | We have evaluated the IT systems related to revenue recognition by testing access and change management controls. We also evaluated process level controls by performing walkthroughs of each significant class of revenue transactions, assessed the design of key controls and tested the operating effectiveness of those controls. We have analyzed the revenue transactions recorded to net sales to identify entries originating from automated processes and entries from manual journals, and to focus our audit procedures to transactions estimated as higher risk transactions. Our audit procedures to ensure appropriateness of revenue recognition for sales transaction population recorded to net sales have consisted among others, performing comprehensive data analytics based substantive audit procedures together with sample based test of details. We have made a focused risk assessment for addressing fraud risk relating to revenue recognition, and identified manual journal entries by applying data analytics. Based on our revenue related risk assessment, we have focused our substantive audit procedures for the transactions identified to ensure the appropriateness and accuracy.

Key audit matter | How our audit addressed the key audit matter
Impairment testing of Goodwill and trademarks Refer to Note 3.3 .in the consolidated financial statements of Kesko Oyj. Consolidated statement of financial position includes goodwill of EUR 643.0 million (EUR 663.7 million). In addition, consolidated statement of financial position includes EUR 113.5 million (EUR 86.0 million) Trademarks. The majority of the amount of goodwill and trademarks is related to the building and technical trade segment. Goodwill is subject to management’s annual impairment test. Goodwill impairment testing requires substantial management judgment over the projected future business performance, cash flows and applied discount rate. Note 3.3. in the Consolidated financial statements describes key assumptions used by management and sensitivity analysis for the impairment tests approved by the Board. | As part of our audit procedures we have assessed the impairment testing calculations prepared by management and approved by the board, and assessed key controls over impairment testing for each cash generating unit. The recoverable amounts of the cash-generating units are determined based on value-in-use calculations. Estimated cash flows used in these calculations are based on three-year financial plans approved by management. The key assumptions used for the plans are total market growth and profitability trends, changes in store network, product and service selection, pricing and movements in operating costs. We have assessed the key assumptions used by management in the Goodwill impairment tests: • comparing the growth and profitability estimates to historical performance. • comparing the estimates with the latest approved budgets and strategic plans. • comparing applied discount rates to external sources. • testing the mathematical accuracy of the impairment calculations We have also assessed the related disclosure information.
We have no key audit matters to report with respect to our audit of the parent company financial statements. There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the parent company financial statements.

|  | 178

Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group
or cease operations, or there is no realistic alternative but to do so.
Auditor’s responsibilities in the audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with good auditing practice will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the parent company’s or the group’s internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s
use of the going concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the parent company or the group to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the group as a basis for
forming an opinion on the group financial statements. We are responsible for the
direction, supervision and review of the audit work performed for purposes of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

|  | 179

We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Kesko’s Annual General Meeting on 28th of April
2020, and our appointment represents a total period of uninterrupted engagement of 5
years.
Other information
The Board of Directors and the Managing Director are responsible for the other information.
The other information comprises the report of the Board of Directors and the information
included in the Annual Report but does not include the financial statements or our auditor’s
report thereon. We have obtained the report of the Board of Directors prior to the date of
this auditor’s report and the Annual Report is expected to be made available to us after that
date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated. With respect to the report of the Board of
Directors, our responsibility also includes considering whether the report of the Board of
Directors has been prepared in compliance with the applicable provisions, excluding the
sustainability statement information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the
information in the financial statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our opinion does not cover the
sustainability statement information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this
regard.
Other Statements
We support that the financial statements and consolidated financial statements should be
adopted. The proposal by the Board of Directors regarding the use of profit shown on the
balance sheet is in compliance with the Limited Liability Companies Act. We support that
the Members of the Board of Directors and the President and CEO of the parent company
should be discharged from liability from the financial period audited by us.
Helsinki, 4 February 2025
Deloitte Oy
Audit firm
Jukka Vattulainen
Authorised Public Accountant (KHT)

|  | 180

ASSURANCE REPORT ON THE SUSTAINABILITY STATEMENT

(Translation of the Finnish original)

To the Annual General Meeting of Kesko Oyj
We have performed a limited assurance engagement on the group sustainability report
(“sustainability statement”) of Kesko Oyj (0109862-8) that is referred to in Chapter 7 of the
Accounting Act and that is included in the report of the Board of Directors for the financial
year 1.1.-31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing
has come to our attention that causes us to believe that the group sustainability statement
does not comply, in all material respects, with
• the requirements laid down in Chapter 7 of the Accounting Act and the sustainability
reporting standards (ESRS);
• the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Kesko Oyj has identified the information for
reporting in accordance with the sustainability reporting standards (double materiality
assessment) and the tagging of information as referred to in Chapter 7, Section 22 of the
Accounting Act.
Our opinion does not cover the tagging of the group sustainability statement with digital
XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the
Accounting Act, because sustainability reporting companies have not had the possibility to
comply with that provision in the absence of the ESEF regulation or other European Union
legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance
engagement in compliance with good assurance practice in Finland and with the International
Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the
Authorised Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability report (“sustainability statement”)
of Kesko Oyj that is referred to in Chapter 7 of the Accounting Act has been prepared and
assurance has been provided for it for the first time for the financial year 1.1.–31.12.2024.
Our opinion does not cover the comparative information that has been presented in the
group sustainability statement. Our opinion is not modified in respect of this matter.
Authorised group sustainability auditor's Independence and Quality
Management
We are independent of the parent company and of the group companies in accordance with
the ethical requirements that are applicable in Finland and are relevant to our engagement,
and we have fulfilled our other ethical responsibilities in accordance with these requirements.

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The authorised group sustainability auditor applies International Standard on Quality
Management ISQM 1, which requires the authorised sustainability audit firm to design,
implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director of Kesko Oyj are responsible for:
• the group sustainability statement and for its preparation and presentation in accordance
with the provisions of Chapter 7 of the Accounting Act, including the process that has
been defined in the sustainability reporting standards and in which the information for
reporting in accordance with the sustainability reporting standards has been identified as
well as the tagging of information as referred to in Chapter 7, Section 22 of the
Accounting Act and
• the compliance of the group sustainability statement with the requirements laid down in
Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council
on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the Managing Director determine is
necessary to enable the preparation of a group sustainability statement that is free from
material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability
Statement
In preparing the sustainability statement, the company is required to conduct a materiality
assessment to identify relevant matters to be reported. This process involves significant
management judgement and choices. Due to the nature and characteristics of sustainability
reporting, this type of information involves estimates and assumptions, as well as
measurement and evaluation uncertainties.
In reporting forward-looking information, management is required to prepare the forward-
looking information on the basis of disclosed assumptions about events that may occur in the
future and possible future actions by the group. The actual outcome is likely to be different
since anticipated events frequently do not occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about
whether the group sustainability statement is free from material misstatement, whether due
to fraud or error, and to issue a limited assurance report that includes our opinion.
Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the decisions of users taken
on the basis of the group sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000
(Revised) requires that we exercise professional judgment and maintain professional
skepticism throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the group sustainability
statement, whether due to fraud or error, and obtain an understanding of internal control
relevant to the engagement in order to design assurance procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those risks to obtain evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

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Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing
from, and are less in extent than for, a reasonable assurance engagement. The nature, timing
and extent of assurance procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud or error. Consequently,
the level of assurance obtained in a limited assurance engagement is substantially lower than
the assurance that would have been obtained had a reasonable assurance engagement been
performed.
Our procedures included for ex. the following:
• Performed inquiries of the company’s management and personnel responsible for
collecting and reporting the information contained in the sustainability statement at the
group level and for subsidiaries, as well as at the different levels and business areas of the
organization.
• Obtained an understanding of the company’s sustainability reporting process, internal
controls, and information systems related to the sustainability reporting process through
inquiries.
• Reviewed the supporting documentation and records prepared by the company, where
applicable, and assessed whether they support the information included in the
sustainability statement.
• With respect to the double materiality assessment process, we evaluated the
implementation of the process conducted by the company in relation to the requirements
of the ESRS standards and assessed whether the disclosed information on the double
materiality assessment is in accordance with the ESRS standards.
• Evaluated whether the sustainability statement meets the requirements of the ESRS
standards, in all material aspects, regarding material sustainability matters to a significant
extent.
• With respect to the EU taxonomy information, we obtained an understanding of the
process by which the company has identified taxonomy-eligible and taxonomy-aligned
economic activities and assessed the compliance of the related disclosed information with
the regulations.
Helsinki, 4 February 2025
Deloitte Oy
Authorised Sustainability Audit Firm
Jukka Vattulainen
Authorised Sustainability Auditor

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INDEPENDENT AUDITOR’S REPORT ON THE ESEF

(Translation of the Finnish original)

CONSOLIDATED FINANCIAL STATEMENTS OF KESKO OYJ
To the Board of Directors of Kesko Oyj
We have performed a reasonable assurance engagement on the financial statement
(743700OX6HSVMCAHPB95-2024-12-31-fi.zip) of Kesko Oyj (0109862-8) that have been
prepared in accordance with the Commission's regulatory technical standard for the financial
year ended 1.1.-31.12.2024.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the
company's report of the Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the requirements of the Commission's
regulatory technical standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of
the Commission's regulatory technical standard
• tagging the primary financial statements, notes and company's identification data in the
consolidated financial statements that are included in the ESEF financial statements with
iXBRL tags in accordance with Article 4 of the Commission's regulatory technical standard
and
• ensuring the consistency between the ESEF financial statements and the audited financial
statements.
The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of ESEF financial statements
in accordance with the requirements of the Commission's regulatory technical standard.
Auditor’s independence and quality control
We are independent of the company in accordance with the ethical requirements that are
applicable in Finland and are relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires
the firm to design, implement and operate a system of quality management including policies
or procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets
Act, provide assurance on the financial statements that have been prepared in accordance
with the Commission's regulatory technical standard. We express an opinion on whether the
consolidated financial statements that are included in the ESEF financial statements have
been tagged, in all material respects, in accordance with the requirements of Article 4 of the
Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been
provided. We conducted a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of the Commission's
regulatory technical standard and

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• whether the notes and company's identification data in the consolidated financial
statements that are included in the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the requirements of Article 4 of the
Commission's regulatory technical standard and
• whether there is consistency between the ESEF financial statements and the audited
financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s judgment.
This includes an assessment of the risk of a material deviation due to fraud or error from the
requirements of the Commission's regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the
primary financial statements, notes and company's identification data in the consolidated
financial statements that are included in the ESEF financial statements of Kesko Oyj
(743700OX6HSVMCAHPB95-2024-12-31-fi.zip) for the financial year ended 31.12.2024 have
been tagged, in all material respects, in accordance with the requirements of the
Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of Kesko Oyj for the
financial year ended 31.12.2024 has been expressed in our auditor’s report dated 4.2.2025.
With this report we do not express an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki 4 February 2025
Deloitte Oy
Audit Firm
Jukka Vattulainen
APA