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|  | 1

REPORT B Y
THE BOARD
OF DIRECTORS
AND F I N AN CIAL
STAT EMENTS
2025

|  | 2

REPORT BY THE BOARD
OF DIRECTORS

Report by the Board of Directors .................................. | 3
Operating environment .................................................... | 3
Guidance 2026 .................................................................. | 3
Outlook 2026 .................................................................... | 3
Financial performance ...................................................... | 4
Segments ........................................................................... | 6
Changes in Group composition ....................................... | 9
Key events during the financial year ............................... | 9
Resolutions of the 2025 Annual General Meeting ......... | 9
Information contained in the notes to the financial statements ......................................................................... | 10
Corporate governance statement ................................... | 10
Risk management .............................................................. | 10
Potential risks and uncertainties ..................................... | 10
Proposal for profit distribution ........................................ | 11
Annual General Meeting .................................................. | 11
Shares and securities markets ......................................... | 12
Analysis of shareholding .................................................. | 13
Board authorities ............................................................... | 15
Group’s key performance indicators .............................. | 16
Calculation of performance indicators ........................... | 17
Sustainability statement ................................................. | 21

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 its
registered address is PO Box 1, 00016 KESKO, Finland.
Together, Kesko and K-retailers form K Group, whose retail
sales (preliminary) totalled some €15.4 billion (0% VAT)
in 2025.
Operating environment
Identified trends impacting the operations of K Group are
related to global political and economic uncertainty,
consumer and business confidence and customer
behaviour, the impacts of urbanisation, 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.
The key opportunities and risks in the operating
environment relate to changes in the economic
environment, digital services and data‑driven management,
the geopolitical situation, sustainable sourcing and human
rights, and climate change. Emerging risks include human
rights risks related to the supply chain and evolving
sustainability legislation and regulation. Risks are described
in more detail in the ‘Significant risks and uncertainties’
section of this Report by the Board of Directors.
Guidance 2026
Kesko Group’s profit guidance is given for the year 2026, in
comparison with the year 2025. Kesko’s operating
environment is estimated to improve in 2026, but to still
remain somewhat challenging. Kesko’s comparable
operating profit is estimated to improve in 2026. Kesko
estimates that its 2026 comparable operating profit will
amount to €650–750 million. Key uncertainties impacting
Kesko’s outlook are developments in consumer confidence
and investment appetites, as well as geopolitical crises and
tensions.
Outlook 2026
The operating environment for Kesko is estimated to
improve in 2026 in all divisions and all operating countries.
Kesko’s comparable operating profit is also estimated to
improve in 2026 in all divisions and all operating countries.
In grocery trade, B2C trade is estimated to pick up and the
foodservice business to remain stable. In 2026, 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. The
comparable operating profit for the grocery trade division is
estimated to improve in 2026 compared to 2025.
In building and technical trade, the cycle is expected to
improve moderately in 2026 from an exceptionally low
level. The comparable operating result for the building and
technical trade division is estimated to improve in 2026
compared to 2025 in all Kesko operating countries.
In the car trade market, new car sales are expected to
remain muted compared to long-term levels, but to
nonetheless grow compared to 2025. The net sales and
comparable operating profit for Kesko’s car trade division
are estimated to improve in 2026 compared to 2025.

|  | 4

Financial performance
Net sales and profit in 2025

1–12/2025 | Net sales, € million | Change, % | Change, comparable, % | Operating profit, comparable, € million | Change, € million
Grocery trade | 6,447.4 | +1.0 | +1.0 | 418.1 | -19.9
Building and home improvement trade | 2,471.9 | +14.4 | +2.0 | 75.3 | +12.7
Technical trade | 2,285.4 | +1.3 | +1.1 | 89.4 | -1.0
Kesko Senukai | - | - | - | 19.5 | -1.4
Building and technical trade, total | 4,685.8 | +7.7 | +1.4 | 178.6 | +9.4
Car trade | 1,364.8 | +12.9 | +12.0 | 83.1 | +13.8
Common functions and eliminations | -23.4 | -4.5 | - | -24.8 | +1.5
Total | 12,474.7 | +4.7 | +2.3 | 654.9 | +4.8

Group net sales grew by 4.7%. In comparable terms, net
sales increased by 2.3%. Net sales increased in comparable
terms by 2.2% in Finland, while in the other operating
countries, net sales increased by 2.6%. 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 1.0%.
Sales to K Group grocery store chains grew by 1.9%. Net
sales for Kespro’s foodservice business decreased by 0.3%.
Net sales for the building and technical trade division
increased by 7.7%, while in comparable terms, net sales
increased by 1.4%. Gradual recovery in the construction
cycle continued. The growth in building and technical trade
net sales was underpinned in particular by acquisitions. Net
sales for technical trade increased by 1.3%, while in
comparable terms, net sales increased by 1.1%. In building
and home improvement trade, net sales increased by 14.4%,
while in comparable terms, net sales increased by 2.0%. The
figures of the Danish building and home improvement trade
companies acquired have been consolidated into the
division’s figures as follows: Roslev Trælasthandel A/S as of
1 February 2025, CF Petersen & Søn A/S as of 1 May 2025,
and Tømmergaarden A/S as of 1 June 2025.
Net sales for the car trade division increased by 12.9%,
while in comparable terms net sales increased by 12.0%. Of
the car trade businesses, net sales increased in new cars,
used cars and services. Net sales for sports trade also
increased.
The Group’s comparable operating profit totalled
€654.9 million (€650.1 million), representing an increase of
€4.8 million. The comparable operating profit for the
grocery trade division decreased by €19.9 million, impacted
by the implementation of the price programme in K Group
grocery stores and a weak foodservice market. The
comparable operating profit for the building and technical
trade division increased by €9.4 million. The figure was
impacted by the gradual recovery in the construction cycle
and tight price competition in technical trade. Profitability in
building and home improvement trade was burdened by a
€5.7 million (€2.5 million) expense related to acquisitions,
recorded in the allocation of fair value. The share of result
from Kesko Senukai was down by €1.4 million. The
comparable operating profit for the car trade division
increased by €13.8 million. The comparable operating profit
for the car trade businesses increased by €13.1 million as
net sales grew. In sports trade, the comparable operating
profit increased by €0.7 million on the comparison period.

Items affecting comparability, € million | 1–12/2025 | 1–12/2024
Operating profit, comparable | 654.9 | 650.1
Items affecting comparability |  |
+gains on disposal | +15.7 | +11.4
-losses on disposal | -2.8 | -1.6
-Impairment charges | -13.7 | -40.0
+/- structural arrangements | -22.8 | -40.4
Items affecting comparability, total | -23.6 | -70.6
Operating profit | 631.3 | 579.5

|  | 5

The most significant items affecting comparability were
related to sales gains on properties, to the reorganisation of
technical trade in Sweden, including a €11.0 million write-
down of goodwill, and to structural arrangements. In the
comparison period, the most significant items affecting
comparability were related to a write-down of goodwill in
the Norwegian Byggmakker building and home
improvement trade chain, to the reorganisation of the K-
Rauta chain in Sweden, in which the Swedish building and
home improvement trade operations were concentrated
under the K-Bygg chain, to costs related to the
discontinuation of the Neste K chain, and to acquisitions.
K Group's (Kesko and the chain stores) retail and B2B sales
(0% VAT) totalled €15,401.7 million, representing an
increase of 2.2%. During the 12-month period that ended in
December 2025, the number of Finnish households
belonging to the K-Plussa loyalty scheme and using the K-
Plussa network totalled 2.7 million, with 3.4 million K-Plussa
loyalty card users.
Net finance costs, income tax and earnings
per share

| 1–12/2025 | 1–12/2024
Net finance costs, € million | -125.4 | -111.7
Interests on lease liabilities, € million | -89.4 | -78.6
Profit before tax, comparable, € million | 533.8 | 543.0
Profit before tax, € million | 510.3 | 471.5
Income tax, € million | -105.5 | -92.0
Earnings per share, comparable, € | 1.07 | 1.11
Earnings per share, € | 1.02 | 0.95
Equity per share, € | 7.03 | 6.84

The increase in Group net finance costs was impacted by an
increase in the amount of interest-bearing debt and a rise in
interest expenses on lease liabilities. The share of result of
associates totalled €4.4 million (€3.8 million). The
comparable share of result of associates totalled €3.0
million (€3.8 million).
The Group’s effective tax rate was 20.7% (19.5% ).
The Group’s earnings per share increased compared to the
year before, but the comparable earnings per share
decreased.
Cash flow and financial position

€ million | 1–12/2025 | 1–12/2024
Cash flow from operating activities | 879.7 | 1,008.2
Cash flow from investing activities | -541.8 | -597.5
Cash flow from financing activities | -644.7 | -149.8

€ million | 31.12.2025 | 31.12.2024
Liquid assets | 166.2 | 488.1
Interest-bearing liabilities | 3,572.6 | 3,396.3
Lease liabilities | 2,097.5 | 2,051.0
Interest-bearing net debt excl. lease liabilities | 1,308.9 | 857.2
Interest-bearing net debt/ EBITDA, excl. IFRS 16 impact | 1.6 | 1.1
Gearing, % | 120.5 | 106.3
Equity ratio, % | 32.2 | 32.5

The Group’s cash flow from operating activities totalled
€879.7 million (€1,008.2 million), weakened by an increase
in working capital. A change in the Finnish Food Market
Act, which came into effect on 1 July 2025, led to shorter
payment periods, which is estimated to have weakened the
cash flow from operating activities by some €100 million in
the reporting period.
The Group’s cash flow from investing activities totalled
€-541.8 million (€-597.5 million), impacted by acquisitions
in Denmark, which had a total cash flow impact of €-156.8
million. Cash flow from investing activities was reduced by
proceeds of €102.1 million from the sale of properties and
other non-current assets.
The Group’s net debt excluding lease liabilities was
increased by a year-on-year decrease in cash flow from
operating activities, completed acquisitions, and
investments made in the store site network for grocery
trade and Onninen and K-Auto’s shared logistics centre.
Capital expenditure

€ million | 1–12/2025 | 1–12/2024
Capital expenditure | 735.7 | 675.9
Store sites | 334.4 | 289.2
Acquisitions | 185.8 | 172.9
IT | 22.8 | 18.0
Other investments | 192.8 | 195.8

Capital expenditure in store sites increased by €45.2 million
year-on-year. Capital expenditure in store sites include a
store property in Kaarina, where Kesko’s grocery trade has
long been the primary tenant, and a shopping centre
property in Vantaa. Capital expenditure in store sites in the
comparison period included store properties in Espoo and
Salo, where Kesko’s grocery trade has long been the
primary tenant.

|  | 6

Other capital expenditure included an investment of
€40.4 million (€82.8 million) in the construction of Onninen
and K-Auto’s shared logistics centre in Hyvinkää, Finland,
completed in August. Capital expenditure also included the
acquisitions of the Danish builders’ merchants Roslev
Trælasthandel A/S (completed on 31 January 2025), CF
Petersen & Søn A/S (completed on 30 April 2025), and
Tømmergaarden A/S (completed on 28 May 2025). Capital
expenditure in the comparison period included the
acquisition of Davidsen Koncernen A/S, completed on 31
January 2024.
Segments
Grocery trade

| 1–12/2025 | 1–12/2024
Net sales, € million | 6,447.4 | 6,381.4
Operating profit, comparable, € million | 418.1 | 438.0
Operating margin, comparable, % | 6.5 | 6.9
Return on capital employed, comparable, % | 14.1 | 16.0
Capital expenditure, € million | 309.2 | 276.0
Average number of personnel converted into full-time employees | 6,264 | 6,346

Net sales for the grocery trade division totalled
€6,447.4 million (€6,381.4 million), an increase of 1.0% .
Sales to K Group grocery store chains grew by 1.9%. Net

Net sales, € million | 1–12/2025 | 1–12/2024 | Change, % | Change, comparable, %
Sales to K Group grocery stores | 4,616.4 | 4,529.3 | +1.9 | +1.9
K-Citymarket, non-food | 604.1 | 602.6 | +0.2 | +0.2
Kespro | 1,166.6 | 1,169.6 | -0.3 | -0.3
Others | 60.3 | 79.8 | -24.5 | -25.3
Total | 6,447.4 | 6,381.4 | +1.0 | +1.0

sales for Kespro’s foodservice business decreased by 0.3%.
The total grocery retail market in Finland (incl. VAT) is
estimated to have grown by approximately 2.5% (Finnish
Grocery Trade Association PTY), and retail prices are
estimated to have risen by some 2.1% (incl. VAT, Statistics
Finland). K Group's grocery sales grew by 2.1% (incl. VAT).
In January-December, K Group grocery stores lost market
share slightly, but the trend was very close to the market
trend. K Group grocery stores gained market share in July-
December by 0.2 percentage points, and in the final quarter
by 0.5 percentage points (PTY). Online grocery sales grew
by 7.9%, and accounted for approximately 3.9% 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 788, up
by 12 from the previous year. The total market for the
foodservice business is estimated to have decreased by
0.4% (PTY). Kespro’s market share is estimated to have
continued to grow.
The comparable operating profit for the grocery trade
division totalled €418.1 million (€438.0 million), down by
€19.9 million. The change in comparable operating profit
was impacted by the implementation of the price
programme in K Group grocery stores and a weak
foodservice market. Kespro’s comparable operating profit
totalled €72.1 million (€77.8 million). Operating profit for
the grocery trade division totalled €416.6 million (€420.9
million). Items affecting comparability totalled €-1.5 million
(€-17.2 million), and were mainly related to the
discontinuation of the Neste K chain and to gains on the
sale of properties.
Capital expenditure for the grocery trade division totalled
€309.2 million (€276.0 million). Capital expenditure in store
sites totalled €289.3 million (€255.2 million). Capital
expenditure in store sites included a store property in
Kaarina where Kesko’s grocery trade has long been the
primary tenant, a shopping centre property in Vantaa, and a
new store property in Lahti. Capital expenditure in store
sites in the comparison period included store properties in
Espoo and Salo, where Kesko’s grocery trade has long been
the primary tenant.

|  | 7

Building and technical trade

| 1–12/2025 | 1–12/2024
Net sales, € million | 4,685.8 | 4,351.6
Building and home improvement trade | 2,471.9 | 2,160.7
Technical trade | 2,285.4 | 2,255.0
Operating profit, comparable, € million | 178.6 | 169.1
Building and home improvement trade | 75.3 | 62.6
Technical trade | 89.4 | 90.5
Kesko Senukai | 19.5 | 20.9
Operating margin, comparable, % | 3.8 | 3.9
Building and home improvement trade | 3.0 | 2.9
Technical trade | 3.9 | 4.0
Return on capital employed, comparable, % | 7.3 | 7.8
Capital expenditure, € million | 279.7 | 293.7
Average number of personnel converted into full-time employees | 6,853 | 6,538

Net sales for the building and technical trade division
increased by 7.7%. In comparable terms, net sales increased

Net sales, € million | 1–12/2025 | 1–12/2024 | Change, % | Change, comparable, %
Building and home improvement trade, Finland | 899.6 | 888.4 | +1.3 | +1.3
K-Rauta, Sweden | 0.2 | 101.6 | - | -
K-Bygg, Sweden | 343.2 | 277.0 | +23.9 | -3.3
Byggmakker, Norway | 520.0 | 517.9 | +0.4 | +1.2
Davidsen, Denmark | 709.0 | 379.8 | +86.7 | +9.7
Building and home improvement trade, total | 2,471.9 | 2,160.7 | +14.4 | +2.0
Technical trade, Finland | 1,121.7 | 1,132.1 | -0.9 | -0.9
Technical trade, Sweden | 134.4 | 130.6 | +2.9 | -0.4
Technical trade, Norway | 503.2 | 501.7 | +0.3 | +1.1
Technical trade, Baltics | 153.5 | 127.4 | +20.5 | +20.5
Technical trade, Poland | 378.4 | 368.1 | +2.8 | +1.2
Technical trade, total | 2,285.4 | 2,255.0 | +1.3 | +1.1
Total | 4,685.8 | 4,351.6 | +7.7 | +1.4
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.

by 1.4% . The gradual recovery in the construction cycle
continued, but the pace of recovery was weaker than
expected especially in new housing construction. The
growth in the division’s net sales was underpinned in
particular by acquisitions. In technical trade, net sales
increased by 1.3%, while in comparable terms, net sales
increased by 1.1%. In building and home improvement trade,
net sales increased by 14.4% while in comparable terms, net
sales increased by 2.0%. The figures of the Danish building
and home improvement trade companies acquired have
been consolidated into the division’s figures as follows:
Roslev Trælasthandel A/S as of 1 February 2025, CF
Petersen & Søn A/S as of 1 May 2025, and Tømmergaarden
A/S as of 1 June 2025. 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 €1,966.4 million (€1,967.9 million), a
decrease of 0.1%. Net sales from international operations
totalled €2,719.4 million (€2,383.7 million), an increase of
14.1% thanks to the acquisitions carried out. In comparable
terms, net sales from international operations increased by
2.6%.
The comparable operating profit for the building and
technical trade division totalled €178.6 million (€169.1
million), and it increased by €9.4 million. The figure was
impacted by the slow recovery in the construction cycle and
tight price competition, especially in technical trade.
Profitability in building and home improvement trade was
burdened by a €5.7 million (€2.5 million) expense related to
acquisitions, recorded in the allocation of fair value.
Onninen’s comparable operating profit in Finland totalled
€57.0 million (€69.0 million). The share of result from
Kesko Senukai decreased by €1.4 million.
Operating profit for the building and technical trade division
totalled €159.2 million (€116.3 million). Items affecting
comparability totalled €-19.4 million (€-52.8 million). The
most significant items affecting comparability were related
to the reorganisation of technical trade in Sweden, including
a €11.0 million write-down of goodwill. The most significant
items affecting comparability in the comparison period were
related to a write-down of goodwill in the Norwegian
Byggmakker building and home improvement trade chain,
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.

|  | 8

Operating profit, comparable, € million | 1–12/2025 | 1–12/2024
Building and home improvement trade, Finland | 61.2 | 61.3
K-Rauta, Sweden | 1.4 | -3.2
K-Bygg, Sweden | -8.8 | -1.5
Byggmakker, Norway | 8.9 | -3.5
Davidsen, Denmark | 11.9 | 8.3
Building and home improvement trade, total | 75.3 | 62.6
Technical trade, Finland | 57.0 | 69.0
Technical trade, Sweden | -6.9 | -2.7
Technical trade, Norway | 19.7 | 8.2
Technical trade, Baltics | 4.0 | 1.9
Technical trade, Poland | 11.6 | 10.2
Technical trade, total | 89.4 | 90.5
Total | 178.6 | 169.1

Capital expenditure for the building and technical trade
division totalled €279.7 million (€293.7 million). Capital
expenditure included an investment of €40.4 million in the
construction of Onninen and K-Auto’s shared logistics
centre in Hyvinkää, Finland, completed in August 2025.
Capital expenditure also included the acquisitions of the
Danish builders’ merchants Roslev Trælasthandel A/S
(completed on 31 January 2025), CF Petersen & Søn A/S
(completed on 30 April 2025), and Tømmergaarden A/S
(completed on 28 May 2025). Capital expenditure in the
comparison period included the acquisition of the Danish
building and home improvement trade company Davidsen
Koncernen A/S, completed on 31 January 2024.
Car trade

| 1–12/2025 | 1–12/2024
Net sales, € million | 1,364.8 | 1,209.4
Car trade | 1,196.2 | 1,040.9
Sports trade | 168.8 | 168.7
Operating profit, comparable, € million | 83.1 | 69.3
Car trade | 74.8 | 61.7
Sports trade | 8.3 | 7.6
Operating margin, comparable, % | 6.1 | 5.7
Car trade | 6.3 | 5.9
Sports trade | 4.9 | 4.5
Return on capital employed, comparable, % | 15.5 | 13.8
Capital expenditure, € million | 125.0 | 89.0
Average number of personnel converted into full-time employees | 1,638 | 1,556

Net sales for the car trade division increased by 12.9% ,
while in comparable terms, net sales increased by 12.0% . Of
the car trade businesses, net sales increased in new cars,
used cars and services. Net sales for sports trade also
increased.
The combined market performance of first registrations of
passenger cars and vans was -1.6% . 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 17.3% (14.5%).
The comparable operating profit for the car trade division
totalled €83.1 million (€69.3 million). The comparable
operating profit for the car trade businesses increased by
€13.1 million, thanks to growth in net sales. In sports trade,
the comparable operating profit increased by €0.7 million
year-on-year.
Operating profit for the car trade division totalled €82.4
million (€69.3 million). Items affecting comparability
totalled €-0.7 million (€0.0 million).
Capital expenditure for the car trade division totalled
€125.0 million (€89.0 million).

Net sales, € million | 1–12/2025 | 1–12/2024 | Change, % | Change, comparable, %
Car trade | 1,196.2 | 1,040.9 | +14.9 | +13.9
Sports trade | 168.8 | 168.7 | +0.1 | +0.1
Total | 1,364.8 | 1,209.4 | +12.9 | +12.0

|  | 9

Changes in Group composition
Kesko’s Danish subsidiary Davidsen Koncernen A/S
acquired the full capital stocks of the Danish builders’
merchants Roslev Trælasthandel A/S on 31 January 2025,
CF Petersen & Søn A/S on 30 April 2025, and
Tømmergaarden A/S on 28 May 2025. Kesko Corporation’s
fully-owned subsidiary K-Market Oy merged with Kesko
Corporation on 31 October 2025.
Key events during the financial year
Kesko ranked as the world’s most sustainable company in
the ’Consumer Staples’ category on the 2025 ‘Global 100
Most Sustainable Corporations’ listing. (Investor news
release 22.1.2025)
Kesko announced in August 2024 that it would acquire the
Danish builders’ merchants Roslev Trælasthandel A/S,
CF Petersen & Søn A/S, and Tømmergaarden A/S. The
acquisition of Roslev was completed on 31 January 2025,
the acquisition of CF Petersen & Søn on 30 April 2025, and
the acquisition of Tømmergaarden on 28 May 2025.
(Investor news releases 14.8.2024, 31.1.2025, 30.4.2025
and 28.5.2025)
Kesko ranked the highest among European sector
companies on the first ever ‘Europe 50 Most Sustainable
Companies’ listing. The Canadian media and research
organisation Corporate Knights has been publishing a
ranking of the world’s 100 most sustainable corporations
for years, and for the first time now listed the 50 most
sustainable companies in Europe. In the listing, Kesko
ranked the highest in the ‘Grocery Stores’ peer group, and
19th overall. (Investor news release 9.6.2025)
The two largest shareholders in Kesko by voting rights on 1
September 2025 were K-Retailers' Association and
Ilmarinen Mutual Pension Insurance Company, both of
which 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,
Annika Ekman, EVP, Investments, appointed by Ilmarinen
Mutual Pension Insurance Company, and Esa Kiiskinen,
Chair of Kesko’s Board of Directors. At its organisational
meeting on 23 September 2025, the Committee elected
Pauli Jaakola as Committee Chair. (Stock exchange release
23.9.2025)
Minttu Sinisalo, M.Sc. (Econ.), was appointed as Executive
Vice President, HR and a member of Kesko’s Group
Management Board as of 1 March 2026. Sinisalo comes to
Kesko from Terveystalo, where she held the position of
Senior Vice President, HR. Before joining Terveystalo,
Sinisalo held various HR leadership positions at Finnair.
Kesko’s current Executive Vice President of HR Matti
Mettälä will retire, as per his agreement, on 1 March 2026.
To ensure a smooth transfer of duties, Minttu Sinisalo joined
Kesko on 1 January 2026. (Stock exchange release
30.9.2025)
According to a notification pursuant to Chapter 9, Section 5
of the Finnish Securities Markets Act, received by Kesko
Corporation on 14 November 2025, the combined holding
of K-ruokakauppiasyhdistys, K-Retailers' Association, and
the Foundation for Vocational Training in the Retail Trade
exceeded the threshold of 5% for shares and 20% for voting
rights in Kesko Corporation on 13 November 2025. After
the change in ownership interest, the combined holding of
K-ruokakauppiasyhdistys, K-Retailers' Association, and the
Foundation for Vocational Training in the Retail Trade was
7.72% of the shares and 20.01% of the voting rights in Kesko
on 13 November 2025. (Stock exchange release 14.11.2025)
Resolutions of the 2025 Annual
General Meeting
The Annual General Meeting of Kesko Corporation held on
24 March 2025 adopted the company’s financial statements
for 2024. The Annual General Meeting resolved to
distribute a dividend of €0.90 per share – based on the
adopted balance sheet for 2024 – 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 €0.23/share was 26 March 2025 and the pay
date 2 April 2025; the record date of the second dividend
instalment of €0.22/share was 15 July 2025 and the pay
date was 22 July 2025; the record date of the third dividend
instalment of €0.23/share was 14 October 2025 and the pay
date 21 October 2025; and the record date of the fourth
dividend instalment of €0.22/share was 13 January 2026
and the pay date 20 January 2026. 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,
or if the payment of dividends is prevented by laws or
regulations applied.
The resolutions of the Annual General Meeting were
communicated in more detail in a stock exchange release
issued on 24 March 2025.

|  | 10

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
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.
Potential risks and uncertainties
Consumer confidence and corporate
investments
Weak consumer confidence and corporate investment
appetites could impact demand in all operating countries.
Low demand, a decrease in sales, and price competition
could increase margin and cost pressures in all divisions.
Geopolitical and supply chain risks
Instability in the international operating environment,
changes in trade and economic policy, and potential
disruptions in supply chains could impact product
availability and business continuity.
Implementation of strategic projects and
changes
Challenges in implementing growth strategies, acquisitions,
or changes in business models could impact the company’s
ability to achieve its objectives.
Strengthening of market shares
Tightening price competition and a decrease in market
shares in different businesses and operating countries could
weaken net sales and profit.
Store sites and properties
Risks related to the upkeep, development and occupancy
rates of store sites and properties could impact business
profitability.

|  | 11

Financing and cash flow
Growing financing costs combined with potentially
weakening cash flow from operating activities could impact
business profitability and the company’s ability to invest.
Cybersecurity and data protection risks
Cyber-attacks and data leaks could result in business
disruptions, loss of data, and reputational damage.
Business disruptions
Events such as a major disturbance in a logistics centre
could result in extensive interruptions in deliveries and
financial loss.
Regulations and legislation
Changes in national and international regulations, for
example restrictions related to private label products or
new sustainability requirements, could impact the operating
conditions for business and profitability.
Product and food safety
Serious deviations in product or food safety could result in
the recall of products, financial loss, and reputational
damage.
Sustainability and climate risks
Risks related to climate change, and environmental and
social responsibility and the fulfilment of requirements
related to these could impact business continuity and
reputation.
Reporting to the capital markets
Tightening of requirements for financial reporting and
sustainability reporting will increase requirements for data
collection and reporting accuracy.
Proposal for profit distribution
The Board of Directors of Kesko Corporation proposes to
the Annual General Meeting to be held on 26 March 2026
that a dividend of €0.90 per share be paid for the year 2025
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 30 March 2026. The Board
proposes that the dividend instalment pay date be
8 April 2026.
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 16 July 2026. The Board proposes
that the dividend instalment pay date be 23 July 2026.
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 15 October 2026. The Board
proposes that the dividend instalment pay date be
22 October 2026.
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 14 January 2027. The Board
proposes that the dividend instalment pay date be
21 January 2027.
The Board proposes that it be authorised to decide, if
necessary, on new dividend payment record dates and pay
dates for one or more dividend 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 2026, a total of 398,118,827 shares were held
outside the company, and the corresponding total amount
of dividends is €358,306,944.30.
Kesko Corporation's distributable assets total
€1,547,000,994.36, of which profit for the financial year is
€363,101,477.81.
Annual General Meeting
The Board of Directors has decided that Kesko’s Annual
General Meeting will be held on 26 March 2026 at 1.00 pm
(EET). Kesko Corporation will publish a notice of the
General Meeting on its website and as a stock exchange
release on 5 February 2026.

|  | 12

Shares and securities markets
At the end of 2025, 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 2025, Kesko Corporation held 1,960,181 of its own B shares as treasury shares.
These treasury shares accounted for 0.72% of the total number of B shares, 0.49% of the
total number of shares, and 0.13% 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 2025 , Kesko
Corporation's share capital was €197,282,584.
The price of a Kesko A share quoted on Nasdaq Helsinki was €18.06 at the end of 2024 and
€19.25 at the end of 2025, representing an increase of 6.6%. Meanwhile, the price of a
Kesko B share was €18.18 at the end of 2024 and €19.26 at the end of 2025, representing an
increase of 5.9%. In 2025, the highest price for an A share was €21.05 and the lowest €17.18,
while the highest price for a B share was €21.46 and the lowest €17.14. The Nasdaq Helsinki
All-Share index (OMX Helsinki) was up by 30.2% and the weighted OMX Helsinki Cap index
up by 29.7% in 2025. The Retail Sector Index was down by 2.0% .
The market capitalisation of Kesko’s A shares was €2,444 million at the end of 2025, while
the market capitalisation of Kesko’s B shares was €5,223 million, excluding the shares held by
the parent company as treasury shares. The combined market capitalisation of the A and B
shares was €7,666 million, up by €447 million compared to the end of 2024.
In 2025, a total of 5.1 million Kesko A shares were traded on Nasdaq Helsinki. The exchange
value of the A shares was €97.5 million. Meanwhile, 127.9 million B shares were traded, for an
exchange value of €2,433.9 million. Nasdaq Helsinki accounted for over 96% 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 2025, the number of registered shareholders was 123,946. At the end of 2025,
foreign ownership of all shares stood at 31.6%, and foreign ownership of B shares 45.5%.
Share performance turnover

|  | 2023 | 2024 | 2025
Share price as at 31 Dec. |  |  |  |
A share | € | 18.02 | 18.06 | 19.25
B share | € | 17.93 | 18.18 | 19.26
Average share price |  |  |  |
A share | € | 18.47 | 17.80 | 18.96
B share | € | 18.49 | 17.56 | 19.03
Market capitalisation as at 31 Dec., A share | € million | 2,287.6 | 2,292.7 | 2,443.7
Market capitalisation as at 31 Dec., B share | € million | 4,855.8 | 4,926.9 | 5,222.7
Turnover |  |  |  |
A share | Million pcs | 6 | 5 | 5
B share | Million pcs | 143 | 139 | 128
Relative turnover rate |  |  |  |
A share | % | 4.4 | 4.1 | 4.0
B share | % | 52.3 | 50.5 | 46.7
Diluted average number of shares | Thousand pcs | 397,706 | 397,922 | 398,084

|  | 13

Analysis of shareholding
Analysis of shareholding by shareholder type as at 31 Dec. 2025

All shares | Number of shares, pcs | Percentage of all shares, %
Nominee-registered and non-Finnish holders | 126,377,951 | 31.59
Households | 106,371,591 | 26.59
Non-financial corporations and housing corporations | 95,812,954 | 23.95
General government* | 34,716,861 | 8.68
Non-profit institutions serving households** | 21,779,044 | 5.44
Financial and insurance corporations | 15,020,607 | 3.75
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 | 74,835,733 | 58.95 | 18.71
Households | 23,825,625 | 18.77 | 5.96
General government* | 14,169,777 | 11.16 | 3.54
Non-profit institutions serving households** | 11,557,426 | 9.10 | 2.89
Nominee-registered and non-Finnish holders | 2,165,368 | 1.71 | 0.54
Financial and insurance corporations | 394,099 | 0.31 | 0.10
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 | 124,212,583 | 45.48 | 31.05
Households | 82,545,966 | 30.22 | 20.63
Non-financial corporations and housing corporations | 20,977,221 | 7.68 | 5.24
General government* | 20,547,084 | 7.52 | 5.14
Financial and insurance corporations | 14,626,508 | 5.36 | 3.66
Non-profit institutions serving households** | 10,221,618 | 3.74 | 2.55
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. 2025

All shares Number of shares | Number of shareholders, pcs | Percentage of share- holders, % | Share total, pcs | Percentage of shares, %
1−100 | 54,155 | 43.69 | 2,173,083 | 0.54
101−500 | 37,277 | 30.08 | 9,493,313 | 2.37
501−1,000 | 11,837 | 9.55 | 8,830,691 | 2.21
1,001−5,000 | 15,295 | 12.34 | 34,651,638 | 8.66
5,001−10,000 | 2,693 | 2.17 | 19,137,008 | 4.78
10,001−50,000 | 2,237 | 1.80 | 45,179,918 | 11.29
50,001−100,000 | 228 | 0.18 | 15,733,361 | 3.93
100,001−500,000 | 183 | 0.15 | 35,678,922 | 8.92
500,001− | 41 | 0.03 | 229,201,074 | 57.29
Total | 123,946 | 100.00 | 400,079,008 | 100.00

|  | 14

A shares Number of shares | Number of shareholders, pcs | Percentage of A share- holders, % | A share total, pcs | Percentage of A shares, %
1−100 | 17,626 | 56.25 | 613,578 | 0.48
101−500 | 7,374 | 23.53 | 1,793,033 | 1.41
501−1,000 | 1,795 | 5.73 | 1,336,688 | 1.05
1,001−5,000 | 2,713 | 8.66 | 6,903,083 | 5.44
5,001−10,000 | 745 | 2.38 | 5,377,192 | 4.24
10,001−50,000 | 852 | 2.72 | 17,769,053 | 14.00
50,001−100,000 | 120 | 0.38 | 8,577,279 | 6.76
100,001−500,000 | 97 | 0.31 | 19,182,162 | 15.11
500,001− | 12 | 0.04 | 65,395,960 | 51.51
Total | 31,334 | 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 | 40,468 | 40.58 | 1,701,292 | 0.62
101−500 | 31,635 | 31.72 | 8,187,581 | 3.00
501−1,000 | 10,600 | 10.63 | 7,925,378 | 2.90
1,001−5,000 | 13,302 | 13.34 | 29,555,576 | 10.82
5,001−10,000 | 2,069 | 2.07 | 14,631,246 | 5.36
10,001−50,000 | 1,419 | 1.42 | 27,273,985 | 9.99
50,001−100,000 | 112 | 0.11 | 7,617,383 | 2.79
100,001−500,000 | 88 | 0.09 | 16,991,001 | 6.22
500,001− | 26 | 0.03 | 159,247,538 | 58.30
Total | 99,719 | 100.00 | 273,130,980 | 100.00

10 largest shareholders by number of shares held
as at 31 Dec. 2025

|  | Number of shares, pcs | Percentage of shares, % | Number of votes | Percentage of votes, %
1. | K-Retailers' Association | 22,318,567 | 5.58 | 223,185,670 | 14.47
2. | Ilmarinen Mutual Pension Insurance Company | 14,188,000 | 3.55 | 138,028,000 | 8.95
3. | Vähittäiskaupan Takaus Oy | 13,195,008 | 3.30 | 131,950,080 | 8.55
4. | Varma Mutual Pension Insurance Company | 8,039,873 | 2.01 | 8,039,873 | 0.52
5. | Elo Mutual Pension Insurance company | 6,559,725 | 1.64 | 10,211,250 | 0.66
6. | Foundation for Vocational Training in the Retail Trade | 5,889,883 | 1.47 | 58,898,830 | 3.82
7. | The State Pension Fund | 3,500,000 | 0.87 | 3,500,000 | 0.23
8. | K-Food Retailers' Club | 2,710,442 | 0.68 | 27,104,420 | 1.76
9. | Heimo Välinen Oy | 2,000,000 | 0.50 | 20,000,000 | 1.30
10. | Oy The English Tearoom Ab | 2,000,000 | 0.50 | 2,000,000 | 0.13

Table above includes registered shareholders. The table does not contain shares held by
Kesko Corporation, amounting to 1,960,181 on 31 December 2025.
Nominee-registered shareholder BlackRock, Inc held 5,43% of shares and 1.41% of votes in
Kesko Corporation on 31 December 2025 (stock exchange release 3 July 2025).

|  | 15

10 largest shareholders by number of votes as at 31.12.2025

|  | Number of shares, pcs | Percentage of shares, % | Number of votes | Percentage of votes, %
1. | K-Retailers' Association | 22,318,567 | 5.58 | 223,185,670 | 14.47
2. | Ilmarinen Mutual Pension Insurance Company | 14,188,000 | 3.55 | 138,028,000 | 8.95
3. | Vähittäiskaupan Takaus Oy | 13,195,008 | 3.30 | 131,950,080 | 8.55
4. | Foundation for Vocational Training in the Retail Trade | 5,889,883 | 1.47 | 58,898,830 | 3.82
5. | K-Food Retailers' Club | 2,710,442 | 0.68 | 27,104,420 | 1.76
6. | Heimo Välinen Oy | 2,000,000 | 0.50 | 20,000,000 | 1.30
7. | Food Paradise Oy | 1,444,072 | 0.36 | 14,440,720 | 0.94
8. | Elo Mutual Pension Insurance company | 6,559,725 | 1.64 | 10,211,250 | 0.66
9. | Varma Mutual Pension Insurance Company | 8,039,873 | 2.01 | 8,039,873 | 0.52
10. | Pokela Oy Iso Omena | 793,154 | 0.20 | 7,926,554 | 0.51

Management's shareholdings
At the end of December 2025, Kesko Corporation's Board members, the President and CEO
and the corporations controlled by them held 774,910 Kesko Corporation A shares and
396,793 Kesko Corporation B shares, i.e. a total of 1,171,703 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 2025 the President and CEO held 254,443 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 2025, the Group Management Board including the
President and CEO held 2,824 Kesko Corporation A shares and 635,757 Kesko Corporation B
shares, which represented 0.16% 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 2025 , Kesko Corporation transferred 156,490 Kesko B shares held as treasury
shares to members of management and other key persons in the company, while a total of
1,205 B shares were returned to Kesko in accordance with the terms and conditions of
Kesko's share award plans. Kesko issued related stock exchange releases on 12 March 2025,
30 April 2025 and 18 September 2025. Kesko issued a stock exchange release on 5 February
2025 regarding the most recent share-based commitment and incentive plans. In addition,
Kesko transferred 7,134 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 30 April 2025.
Kesko’s Annual General Meeting of 24 March 2025 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 2026, and were communicated in a
stock exchange release issued on 24 March 2025.

|  | 16

Group’s key performance indicators

|  | 2023 | 2024 | 2025
Income statement |  |  |  |
Net sales | € million | 11,783.8 | 11,920.1 | 12,474.7
Change in net sales | % | -0.2 | 1.2 | 4.7
Change in net sales, comparable | % | -0.8 | -2.3 | 2.3
Operating profit, comparable | € million | 712.0 | 650.1 | 654.9
Operating margin, comparable | % | 6.0 | 5.5 | 5.3
Operating profit | € million | 695.4 | 579.5 | 631.3
Operating margin | % | 5.9 | 4.9 | 5.1
Profit for the period | € million | 495.6 | 379.1 | 404.2
Profit for the period as percentage of net sales | % | 4.2 | 3.2 | 3.2
Profitability |  |  |  |
Return on equity | % | 18.0 | 13.8 | 14.6
Return on equity, comparable | % | 18.5 | 16.1 | 15.3
Return on capital employed | % | 13.1 | 10.1 | 10.0
Return on capital employed, comparable | % | 13.4 | 11.3 | 10.4
Funding and financial position |  |  |  |
Interest-bearing net debt | € million | 2,559.8 | 2,908.2 | 3,406.4
Interest-bearing net debt excluding lease liabilities | € million | 561.9 | 857.2 | 1,308.9
Gearing | % | 92.8 | 106.3 | 120.5
Equity ratio | % | 35.8 | 32.5 | 32.2
Interest-bearing net debt/EBITDA excluding the impact of IFRS 16 |  | 0.7 | 1.1 | 1.6
Interest-bearing net debt/EBITDA, IFRS |  | 2.1 | 2.4 | 2.8

|  | 2023 | 2024 | 2025
Other performance indicators |  |  |  |
Capital expenditure | € million | 678.9 | 675.9 | 735.7
Capital expenditure as percentage of net sales | % | 5.8 | 5.7 | 5.9
Cash flow from operating activities | € million | 1,049.5 | 1,008.2 | 879.7
Cash flow from investing activities | € million | -590.2 | -597.5 | -541.8
Average number of personnel converted into full-time employees |  | 14,766 | 15,347 | 15,665
Personnel as at 31 Dec. |  | 17,702 | 18,309 | 18,991
|  | 2023 | 2024 | 2025
Share performance indicators |  |  |  |
Earnings/share, basic and diluted | € | 1.25 | 0.95 | 1.02
Earnings/share, comparable, basic | € | 1.28 | 1.11 | 1.07
Equity/share | € | 6.93 | 6.84 | 7.03
Dividend/share* | € | 1.02 | 0.90 | 0.90
Payout ratio | % | 81.9 | 94.5 | 88.6
Payout ratio, comparable | % | 79.7 | 80.9 | 84.5
Cash flow from operating activities/share | € | 2.64 | 2.53 | 2.21
Price/earnings ratio (P/E), A share |  | 14.46 | 18.95 | 18.96
Price/earnings ratio (P/E), B share |  | 14.39 | 19.08 | 18.97
Effective dividend yield, A share | % | 5.7 | 5.0 | 4.7
Effective dividend yield, B share | % | 5.7 | 5.0 | 4.7
* Proposal to the General Meeting |  |  |  |

|  | 17

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 adjusted for items affecting comparability before tax - Income tax adjusted for the tax effect of items affecting comparability) x 100 / Shareholders' equity, average of the beginning and end of the reporting period
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 the reporting period
EBITDA |  | Operating profit + Depreciation and amortisation + Impairments
EBITDA, comparable |  | EBITDA +/- items affecting comparability

|  | 18

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/loss – 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

|  | 19

Reconciliation of alternative performance measures to IFRS financial statements

€ million | 2025 | 2024
Items affecting comparability |  |
Gains on disposal | 15.7 | 11.4
Losses on disposal | -2.8 | -1.6
Impairment charges | -13.7 | -40.0
Structural arrangements | -22.8 | -40.4
Items in operating profit affecting comparability | -23.6 | -70.6
Items in financial items affecting comparability | 0.2 | -0.8
Items in income taxes affecting comparability | 3.4 | 7.7
Total items affecting comparability | -20.0 | -63.7
Items in EBITDA affecting comparability | 0.6 | -12.3
Operating profit, comparable |  |
Operating profit | 631.3 | 579.5
Net of |  |
Items in operating profit affecting comparability | -23.6 | -70.6
Operating profit, comparable | 654.9 | 650.1
EBITDA |  |
Operating profit | 631.3 | 579.5
Plus |  |
Depreciation and impairment charges | 239.1 | 247.9
Depreciation and impairment charges for right-of-use assets | 359.1 | 375.5
EBITDA | 1,229.6 | 1,202.9
EBITDA, comparable |  |
EBITDA | 1,229.6 | 1,202.9
Net of |  |
Items in EBITDA affecting comparability | 0.6 | -12.3
EBITDA, comparable | 1,228.9 | 1,215.2

€ million | 2025 | 2024
Profit before tax, comparable |  |
Profit before tax | 510.3 | 471.5
Net of |  |
Items in operating profit affecting comparability | -23.6 | -70.6
Items in financial items affecting comparability | 0.2 | -0.8
Profit before tax, comparable | 533.8 | 543.0
Net profit, comparable |  |
Profit before tax, comparable | 533.8 | 543.0
Net of |  |
Income tax | 105.5 | 92.0
Items in income taxes affecting comparability | 3.4 | 7.7
Net profit, comparable | 424.8 | 443.3
Net profit attributable to owners of the parent, comparable |  |
Net profit, comparable | 424.8 | 443.3
Net of |  |
Net profit attributable to non-controlling interests | -0.7 | -0.4
Net profit attributable to owners of the parent, comparable | 424.2 | 442.9
Earnings per share, comparable, € |  |
Net profit attributable to the owners of the parent, comparable | 424.2 | 442.9
Average number of shares, basic, 1,000 pcs | 398,084 | 397,922
Earnings per share, comparable, € | 1.07 | 1.11
Return on capital employed, % |  |
Operating profit | 631.3 | 579.5
Capital employed, average | 6,307.7 | 5,758.7
Return on capital employed, % | 10.0 | 10.1
Return on capital employed, comparable, % |  |
Operating profit, comparable | 654.9 | 650.1
Capital employed, average | 6,307.7 | 5,758.7
Return on capital employed, comparable, % | 10.4 | 11.3

|  | 20

€ million | 2025 | 2024
Return on equity, % |  |
Net profit | 404.2 | 379.1
Equity, average | 2,780.8 | 2,746.7
Return on equity, % | 14.6 | 13.8
Return on equity, comparable, % |  |
Net profit, comparable | 424.8 | 443.3
Equity, average | 2,780.8 | 2,746.7
Return on equity, comparable, % | 15.3 | 16.1
Equity ratio, % |  |
Shareholders’ equity | 2,826.7 | 2,734.9
Total assets | 8,823.1 | 8,471.2
Advances received | 40.2 | 43.4
Equity ratio, % | 32.2 | 32.5

|  | 21

SUSTAINABILITY
STATEMENT

General information ..................................................... | 22
Environmental information .......................................... | 43
EU Taxonomy .................................................................. | 43
E1 Climate change .......................................................... | 53
E5 Resource use and circular economy ........................ | 72
Social information ......................................................... | 78
S1 Own workforce .......................................................... | 78
S2 Workers in the value chain ....................................... | 93
S4 Consumers and end-users ....................................... | 98
Governance information .............................................. | 105
G1 Business conduct ...................................................... | 105
Appendices to sustainability statement .................... | 110

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

|  | 22

GENERAL
INFORMATION

Kesko in brief ................................................... | 22
Basis for preparation ....................................... | 22
Governance ...................................................... | 25
Strategy ............................................................ | 29
Impact, risk and opportunity management ... | 37

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 its
registered address is PO Box 1, 00016 KESKO, Finland.
Basis for preparation
General basis for preparation (BP-1)
Kesko’s sustainability statement is prepared in accordance
with the principles of the European Sustainability Reporting
Standards (ESRS) as defined in the EU’s Corporate
Sustainability Reporting Directive (CSRD).
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 is prepared at the Group level
whenever the subject of reporting concerns the Group’s
own operations. 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 includes
information on the upstream and downstream parts of the
value chain for those topics where material impacts, risks or
opportunities have been identified. The reporting period of
the sustainability statement is the same as that of the
consolidated financial statements.
The Sustainability Audit Firm Deloitte Oy has issued the
company an independent sustainability reporting auditor’s
limited assurance report 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 been able to
comply with that provision due to the absence of the ESEF
regulation or other European Union legislation.
The Board of Directors approved the publication of this
sustainability statement on 4 February 2026.

|  | 23

Disclosures in relation to specific circumstances (BP-2)
Sources of estimation and outcome uncertainty
The metrics presented in the sustainability statement, in particular those related to value
chain disclosures such as value chain energy and industrial emissions and FLAG (Forest,
Land and Agriculture) emissions, involve elements of uncertainty. Where the preparation of
sustainability information includes significant estimates or uncertainties, these are described
in the reporting principles applied to the respective information.
The metrics presented in the sustainability statement have not been validated by an external
third party, other than the sustainability reporting auditor. An exception is the greenhouse
gas emissions information disclosed in section E1 Climate change. The Science Based Targets
initiative has reviewed the boundary applied in the calculation of Kesko’s emissions for the
base year 2024 used for Kesko’s climate targets.
Changes in preparation and presentation of
sustainability information
During 2025, Kesko refined the calculation of scope 1, scope 2 and scope 3 greenhouse gas
emissions disclosed in the E1 Climate change section and performed a reassessment of the
emissions inventory. The update of the emissions inventory supported the update of Kesko’s
climate targets and the preparation for validation by the Science Based Targets initiative of
those targets.
The completeness of the calculation of scope 1, scope 2 and scope 3 greenhouse gas
emissions reported in the 2024 sustainability statement has been enhanced by specifying the
content of the calculation and by addressing gaps identified after the completion of the 2024
sustainability statement. These updates affected all emission categories.
In connection with the refinements to the emissions calculation, corrections were also made
to the energy consumption data reported for 2024. Total energy consumption reported for
2024 was 752,695 MWh, whereas, following the corrections, total energy consumption to be
reported as the 2024 comparative figure is 777,155 MWh. Following the corrections, Kesko’s
total energy consumption for 2024 increased by 3%.
A significant change in Kesko’s emissions calculation and emissions inventory is the inclusion
of FLAG (Forest, Land and Agriculture) emissions as part of Kesko’s emissions inventory.
Land use related greenhouse gas emissions were not included in Kesko’s emissions inventory
in 2024, but they have been added retrospectively as part of the recalculation of the 2024
base year and the 2024 comparative year, and in connection with the setting of targets
related to greenhouse gas emissions. Land use related greenhouse gas emissions are
presented separately from other greenhouse gas emissions.
Based on the recalculation and reassessment of the emissions inventory, Kesko discloses the
most material emission categories in its scope 3 greenhouse gas emissions reporting. The
combined share of categories excluded from reporting is less than 1% of total scope 3
emissions. The excluded categories that were previously reported are Category 3 Fuel and
energy-related activities that are not included in scope 1 or scope 2, Category 5 Waste
generated in operations, Category 6 Business travel, Category 7 Employee commuting, and
Category 9 Downstream transportation and distribution.
A reconciliation between the scope 1, scope 2 and scope 3 greenhouse gas emissions
reported in 2024 and the recalculated 2024 comparative year emissions is presented in the
E1 Climate change section under Greenhouse gas emissions (E1-6).
Use of phased-in transitional provisions
The ESRS 1 General Requirements standard includes transitional provisions for the first years
of application of the Corporate Sustainability Reporting Directive (CSRD). Kesko utilised
these transitional provisions in its first reporting year under the CSRD, in 2024, particularly in
relation to disclosure requirements concerning anticipated financial effects.
In the 2024 sustainability statement, Kesko also applied the ESRS 1 transitional provision
under which an undertaking is not required to disclose comparative information in the first
year of preparing a sustainability statement in accordance with the ESRS. Kesko publishes
comparative information for the 2024 reporting year in the 2025 sustainability statement.
On 11 July 2025, the European Commission adopted the so-called “quick-fix” delegated
regulation, under which the validity of the transitional provisions granted for the first
reporting year was extended to the 2025 and 2026 reporting years. In addition, transitional

|  | 24

provisions that would have applied to companies with an average of up to 750 employees
were extended to apply to all companies for the 2025 and 2026 reporting years.
As part of the European Commission’s efforts to simplify and facilitate reporting obligations
under the Corporate Sustainability Reporting Directive (CSRD), the European Financial
Reporting Advisory Group (EFRAG) published draft simplified European Sustainability
Reporting Standards (ESRS) in December 2025. The simplified standards are expected to
apply from the 2027 reporting year, with voluntary early application expected to be possible
already for the 2026 reporting year. Kesko has not yet assessed the potential impact of the
simplified standards on the disclosures provided in Kesko’s sustainability statement.
In preparing the 2025 sustainability statement, Kesko applies the following transitional
provisions:
• ESRS 2, SBM-1, paragraph 40b
• ESRS 2, SBM-1, paragraph 40c
• ESRS 2, SBM-3, paragraph 48e
• ESRS E4 Biodiversity and ecosystems: The disclosures are provided in accordance with
paragraph 17 of ESRS 2 General disclosures.
E4 Biodiversity and ecosystems
As part of the 2025 update of its double materiality assessment, Kesko identified a material
impact under ESRS E4 Biodiversity and ecosystems, within the sub-topic Direct drivers of
biodiversity loss and the sub-sub-topic Land-use change and changes in freshwater and
ocean use. This impact is primarily associated with biodiversity loss in the upstream
value chain.
In Kesko’s business model, the product assortment is broad and includes products whose raw
materials have impacts on nature in primary production, such as agriculture, forestry, mining
or fishing. The sourcing of these raw materials can be guided through product- and raw
material-specific sustainability guidelines, particularly for private label products. Kesko’s
sustainability policy, updated in 2025, provides the foundation for Kesko’s work to promote
biodiversity. Our principle is to prevent biodiversity loss both in our own operations and
across the value chain.
During 2025, Kesko prepared action plans for all three divisions to mitigate biodiversity-
related impacts in the value chain. The action plans focus on four areas: strengthening the
competence of sourcing personnel by increasing training; identifying biodiversity-critical raw
materials and, where possible, establishing guidelines for these materials; improving the
availability and coverage of origin-related data for products that contain critical raw
materials; and establishing strategic partnerships to reduce impacts contributing to
biodiversity loss.
Kesko guides the sourcing of products that contain raw materials identified as
environmentally critical through sustainability guidelines. In 2025, raw materials and product
groups for which impacts on biodiversity have been identified and for which Kesko has an
existing guideline include cocoa, coffee and tea, fish and seafood, palm oil, soy, textiles, and
timber and paper. These guidelines primarily guide the sourcing of Kesko’s private label
products and the raw materials used in them through internationally recognised
certification schemes.
Kesko assesses the need for new guidelines and develops additional guidelines aimed at
reducing adverse nature-related impacts in supply chains. The need for new guidelines may
arise, for example, from assessed nature-related impacts, stakeholder expectations or
regulatory developments. In 2025, Kesko expanded its cotton guideline into a broader textile
guideline and aims to reduce negative impacts in the supply chains of textile products. New
guidelines and changes to existing ones are approved by Kesko’s Group sustainability
management team.
Implementation of the guidelines in product assortments is managed through division-
specific steering and management groups. The divisions’ sustainability units guide sourcing
organisations on required actions and review implementation with them annually.
The logistics centre for Onninen and K-Auto was completed in Hyvinkää in autumn 2025.
The City of Hyvinkää and Kesko entered into an agreement on the voluntary compensation of
nature losses resulting from the construction of the logistics centre and on generating new
nature values. The agreement is partly based on the principles of voluntary ecological
compensation set out in the Finnish Nature Conservation Act.
Kesko has not set time‑bound targets for biodiversity and ecosystems.

|  | 25

Governance
The role of administrative, management and supervisory
bodies (GOV-1)
Board of Directors and Board Committees
Kesko’s Board of Directors is responsible for the Company’s corporate governance and for
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
operation. 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 the Board is responsible for. 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, including as part of the review by the President and CEO.
The Board of Directors approves all Group-level policies. The Board of Directors has
approved and adopted the K Code of Conduct, and other policies approved by the Board of
Directors that address various sustainability topics include the sustainability policy, the
people policy, the risk management policy, the governance policy, the data protection policy,
and the tax policy.
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 Board members, and decides on their remuneration
based on proposals submitted by the Shareholders’ Nomination Committee. The main duty
of the Nomination Committee is to ensure that the Board of Directors and its members have
the expertise, know-how and experience adequate for Kesko’s needs. In preparing its
proposals, the Shareholders’ Nomination Committee must also take into account the
principles concerning Board diversity, which are included in the diversity policy approved by
the Board. The diversity 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. Kesko’s Board members are
experienced business leaders with broad expertise. This enables the effective assessment,
guidance and supervision of material sustainability aspects relevant to Kesko Group. The
Board members’ experience in managing various business operations supports their ability to
guide the Group’s strategic choices, taking sustainability perspectives into account. 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 have also experience in
international business operations.
At the Annual General Meeting held on 24 March 2025, seven members were elected to the
Board, and they served as Board members on 31 December 2025. Of the Board members,
57% are men and 43% are women. The average ratio of female to male Board members is
0.75. The Board members are aged between 44 and 64.
The Board carried out its annual independence evaluation at its meeting in March 2025.
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 compositions of the Board and its Committees meet the independence
requirements of the Finnish Corporate Governance Code issued by the Finnish Securities
Market Association and effective as of 1 January 2025. All members of Kesko’s Board of
Directors are non-executive directors. There are no personnel representatives on the Board.
Audit Committee
The Board has, in the Audit Committee’s charter, defined the Committee’s duties related to
sustainability reporting. The Audit Committee monitors and assesses Kesko’s financial and
sustainability reporting system, including the processes for financial statements reporting
and sustainability reporting, and monitors the procedures in identifying information to be
reported in compliance with sustainability reporting standards. The Committee monitors
sustainability reporting assurance and reviews the assurance report by the Authorised
Sustainability Auditor and possible other reports presented by the Authorised Sustainability
Auditor to the Committee. The Committee presents to the Board of Directors the results of
the sustainability reporting assurance. In addition, the Audit Committee’s duties include

|  | 26

monitoring statutory audit, monitoring and assessing the effectiveness of Kesko’s internal
control, internal audit and risk management systems, and monitoring and assessing the
scope and efficiency of Kesko’s compliance system.
At Audit Committee meetings, the Group’s Chief Financial Officer, the Group Controller, the
Chief Audit and Risk Officer, and the Executive Vice President for Legal and Sustainability
regularly report to the Committee on their areas of responsibility. The Authorised
Sustainability Auditor is present at the Committee meetings and presents its audit plan and
report to the Audit Committee.
Remuneration Committee
The Remuneration Committee considers sustainability-related matters as part of its
responsibilities in management remuneration. The Remuneration Committee prepares the
Company’s Remuneration Policy for Governing Bodies and monitors its implementation. The
Remuneration Committee conducts preparatory and development work on matters
pertaining to remuneration schemes, including evaluating the remuneration of the President
and CEO and other management, preparing potential share and share-based compensation
schemes, and preparing the principles for the performance and result criteria of the
compensation schemes, and monitoring their implementation and evaluating their impact on
Kesko’s long-term financial success.
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. Kesko’s President and CEO has overall responsibility for the
implementation of the sustainability strategy and for achieving the common sustainability
objectives. The Group Management Board supports the President and CEO in this role and
ensures that sustainability aspects are integrated into management decision-making,
strategic planning and operational steering. The members of the Group Management Board
have strong business expertise and experience in their respective areas of responsibility. In
addition, the Group Management Board has specific expertise and experience, for example,
in matters relating to personnel, sustainability, finance and risk management, which also
support integration of sustainability considerations in the Group’s decision-making.
The Group Management Board regularly discusses in its meetings Kesko’s most material
sustainability impacts, risks and opportunities, as well as progress towards the targets set. As
at 31 December 2025, the Group Management Board, including the President and CEO,
comprised eight members. At the end of 2025, 62.5% of the members of the Group
Management Board were men and 37.5% were women.
Sustainability governance model

|  | 27

Group sustainability management team and divisions
The Group sustainability management team promotes the measures set out in the
sustainability strategy, monitors progress, coordinates Group-level initiatives and shares best
practices across Kesko. The team is chaired by the Executive Vice President, Legal and
Sustainability, a member of the Group Management Board who reports directly to the
President and CEO. The Chair is responsible for the content of the sustainability strategy and
for monitoring its progress, and supports the implementation of division-specific
sustainability strategies. Other members represent the divisions and Kesko’s
common functions.
Division Presidents are responsible for achieving Group-level and division-specific
sustainability targets within their respective divisions, monitoring the progress of measures,
allocating resources, and making the necessary investments. The Group’s common functions
support progress in sustainability work.
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies (GOV-2)
The Board of Directors decides on the Group’s strategy, including sustainability topics and
sustainability-related strategic targets. Progress on the strategy and targets is reported to
the Board regularly, including as part of the President and CEO’s review, which is addressed
at every regular Board meeting. The Executive Vice President, Legal and Sustainability,
presents specific sustainability-related themes, such as the 2025 update of climate targets,
to the Board for approval.
During 2025, the Board of Directors addressed the following sustainability-related topics:
• approved the criteria for remuneration programmes, including sustainability-related criteria
• approved the update of climate targets for the Group’s own operations (scope 1 and 2)
• approved short- and long-term targets for reducing scope 1, scope 2 and scope 3
greenhouse gas emissions, including the net-zero target extending to 2050
• approved short- and long-term targets for reducing land use-related greenhouse gas
emissions in scope 1 and scope 3
• approved Kesko’s commitment to achieving zero deforestation in the most critical
commodity groups linked to deforestation
• approved the submission of greenhouse gas emission reduction targets to the Science
Based Targets initiative (SBTi) validation process
• approved the updated data protection policy, people policy and sustainability policy, as well
as the new artificial intelligence policy. The new and updated policies will enter into force
on 1 January 2026. The most significant changes in the updated sustainability policy are
described in each relevant topic-specific section.
The Chair of the Board’s Audit Committee reports on the Committee’s work at the Board
meeting following each Committee meeting. The Executive Vice President, Legal and
Sustainability, reports to the Audit Committee on sustainability reporting matters. In 2025,
the Audit Committee addressed sustainability reporting in four of its five regular meetings.
At each regular meeting, the Committee also reviews the Group’s risk map and any changes
to it, as reported by the Chief Audit and Risk Officer. Twice a year, the Vice President,
Governance, Compliance and Ethics, reports on the governance, compliance and ethics
review, including, among other things, the status of the K Compliance programmes and
reports received via the SpeakUp channel.
In 2025, the Board’s Audit Committee monitored measures related to the implementation of
sustainability reporting, such as the sustainability reporting development plan and the update
of the double materiality assessment for 2025. A list of the material impacts, risks and
opportunities included in the double materiality assessment, as discussed in the review, is
presented in the section General information, Material impacts, risks and opportunities and
their interaction with strategy and business model (SBM-3).
The Executive Vice President, Legal and Sustainability, addresses sustainability topics in their
review at each Group Management Board meeting. In 2025, the Group Management Board
focused in particular on climate targets and emissions calculation, biodiversity, sustainability
regulation and the development of sustainability reporting, occupational safety and
employee wellbeing, as well as compliance and ethical corporate culture. The Group
Management Board addressed updates to climate targets for the Group’s own operations
(scope 1 and 2) and the overall set of climate targets to be submitted for Science Based
Targets initiative validation, as well as the updated 2025 double materiality assessment, and
approved Kesko’s participation in the Finnish national energy efficiency agreement for
2026–2035. It also reviewed all Board-approved Group-level policies prior to their
submission to the Board.

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Sustainability-related targets in incentive schemes
(GOV-3)
Kesko has four share-based commitment and incentive plans: Performance Share Plan
President and CEO (PSP President and CEO) and a transitional phase share-based
compensation plan (Bridge Plan) for Kesko’s President and CEO, 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 President and CEO, Bridge Plan and PSP is
Kesko’s sustainability target with a weight of 10%. The most significant sustainability targets
are scope 1 and 2 emission reductions targets and targets linked to international
sustainability indices and assessments. The terms of the PSP President and CEO, Bridge Plan
and 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 2025, 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. In these cases, the sustainability-related target is defined individually
based on each person’s role and area of responsibility. 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 (GOV-4)
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 and processes related to value chain workers
• S4 Consumers and end-users – Policies and processes related to product safety
• S4 Consumers and end-users – Policies and processes related to data protection
• G1 Business conduct – Policies related to corporate culture and business conduct
Risk management and internal controls over sustainability
reporting (GOV-5)
Members of the 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 objective of internal control is to provide the Board of Directors and the company’s
management with reasonable assurance regarding the reliability of reporting and that the
information disclosed in the sustainability statement has been prepared appropriately and is
presented fairly.
Risks related to sustainability reporting have been identified particularly in relation to
reporting accuracy, the reliability of data processing and the completeness of data. In
addition, the tight reporting timetable increases the risk related to the timeliness of
reporting. Key risk management measures identified for reporting include developing
processes for data collection and consolidation, strengthening personnel competence in
producing sustainability information, and clarifying roles and responsibilities with respect to
the ownership of sustainability information. Identifying reporting-related risks and defining
internal controls to address these risks forms part of the overall process improvement work.
Internal audit takes sustainability and sustainability reporting topics into account as part of its
risk-based audit planning and the Group’s overall risk assessments. Sustainability topics have
been addressed in audits particularly where they relate to reporting processes, the reliability
of information, the clarity of guidance and responsibilities, or compliance with regulatory
requirements. The internal audit plan for 2026 includes an audit related to Science Based
Targets initiative aligned targets, which supports the assessment of the reliability of
sustainability targets and the related reporting.

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Strategy
Strategy, business model and value chain (SBM-1)
Kesko’s strategy is focused on being the leading and most attractive trading sector company
in Northern Europe. The objective is to ensure profitable growth, increase customer value,
and strengthen market position across all three divisions: grocery trade, building and
technical trade, and car trade. The foundation of Kesko’s strategy work is quality and
efficiency, the continuous improvement of the omnichannel customer experience,
K-retailers, sustainability in all operations, and being a trusted operator.
Kesko’s sustainability strategy is built on four focus areas: climate and nature, value chain,
our people, and good governance. Key topics related to climate and nature include reducing
greenhouse gas emissions throughout the value chain and promoting resource efficiency and
the circular economy, particularly by increasing the recycling rate of waste and reducing food
waste. These topics are discussed in sections E1 Climate change and E5 Resource use and
circular economy.
Value chain topics include cooperation with goods and service providers, the implementation
of K Code of Conduct guidelines in the supply chain, and the realisation of those guidelines
towards consumers as Kesko’s customers. Further information on these topics is provided in
sections S2 Workers in the value chain, S4 Consumers and end-users, and G1 Business
conduct, which also covers relationships with goods and service suppliers.
Our People section covers focus areas related to Kesko’s own personnel, detailed in section
S1 Own workforce. Good governance encompasses the promotion of corporate culture and
commitment to the K Code of Conduct, as described in section G1 Business conduct.
Business model and value chain
In the trading sector value chain, Kesko’s role is to make products manufactured by suppliers
available to customers through physical stores and digital channels. Kesko operates in
Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, and Poland. Kesko’s business
models include the chain business model, own retail, and B2B trade. In the chain business
model, Kesko acts as a wholesaler to K-retailers, and independent retailer entrepreneurs are
responsible for resale to end customers. In own retail, both consumer and corporat e
customers are Kesko’s customers. Kesko’s wholesale to retailers accounted for 43% (45%) of
the Group’s net sales in 2025. B2B trade accounted for 41% (37%) of the Group’s net sales in
2025. Kesko’s B2C trade accounted for 16% (18%) of the Group’s net sales.
In 2025, Kesko’s net sales totalled €12,475 million. Kesko has three divisions, which are also
reportable segments in the consolidated financial statements: grocery trade; building and
technical trade, including building and home improvement and technical trade operations;
and car trade, including car and sports trade operations.
Grocery trade
The grocery trade division comprises the wholesale and B2B trade of groceries and the
retailing of home and speciality goods in Finland.
Building and technical trade
The building and technical trade division operates in wholesale, retail and B2B trade in
Finland, Sweden, Norway, Denmark, the Baltics and Poland. In Finland, Kesko operates the
building and home improvement trade with the retailer business model. In Sweden, Norway
and Denmark, Kesko operates as a retailer. Building and home improvement stores serve
both consumers and professional builders. Technical trade is B2B trade.
Car trade
The car trade division comprises the businesses of new cars, used cars, services and leasing.
The car trade division includes sports trade. The car trade division operates mainly in the
Finnish market.
For more information on the operating activities of the different divisions, their financial
information and the geographical breakdown of net sales, see note 2.2 Segment information
in the consolidated financial statements.
In 2025, Kesko employed a total of 18,991 people. The number of personnel in Kesko’s
operating countries is disclosed in section S1 Own workforce of the sustainability statement.

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Kesko business model and value chain

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Interests and views of stakeholders (SBM-2)
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.
Stakeholder views are communicated to the Board of Directors, its Committees and the
Company’s management as needed, for example as part of the double materiality
assessment process.
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.

Stakeholder | Forms of cooperation | Key sustainability topics | Meeting stakeholder expectations
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 | • Retailer events and meetings • Electronic communication channels and trade magazines • SpeakUp channel | • Circular economy, waste and packaging • Sustainable products and certifications • Supporting customers in making sustainable choices • Local sustainability initiatives | • Measures to promote the circular economy, monitoring of evolving regulation, and related support • Increasing transparency on product origin and production, and certifications • Selections planning, providing customers with feedback based on purchase data, and sustainability-related communications • K Group-wide initiatives, for example to promote physical activity among children and young people
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, soil health 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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Material impacts, risks and opportunities and their
interaction with strategy and business model (SBM-3)
Kesko has updated the double materiality assessment first published in 2024 for the 2025
reporting period.
As an outcome of the updated double materiality assessment, Kesko identified material
impacts related to seven ESRS standards and their respective sub-topics. The material
impacts, risks and opportunities are presented in a table, including a description of each
impact, risk or opportunity, its location in the value chain, and the time horizon over which it
is expected to materialise.

ESRS standards | Material sustainability topics
Environment
| Climate change | Climate change mitigation Energy
| Biodiversity and ecosystems | Land-use change, fresh water-use change and sea-use change
| 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 |
| Affected communities |

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Material impacts, risks and opportunities identified in the double materiality assessment

Topic | Impact, risk or opportunity | Value chain | Time horizon | Description
E1 Climate change
Climate change mitigation | Actual negative impact | Own operations | Short-, medium- and long-term | Kesko‘s own operations generate greenhouse gas (GHG) emissions (scope 1 and 2). The most significant source of scope 1 emissions are the fuel emissions of transportation and logistics. The most significant source of scope 2 emissions are district heating consumption emissions.
Climate change mitigation | Actual negative impact | Upstream and downstream | Short-, medium- and long-term | 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 of capital goods and upstream transportation.
Energy | Actual negative impact | Own operations | Short-, medium- and long-term | The consumption of fossil energy sources in properties owned and managed by Kesko and in transport and logistics generates GHG emissions.
E4 Biodiversity and ecosystems
Land-use change, fresh water-use change and sea-use change | Actual negative impact | Upstream | Short-, medium- and long-term | Kesko’s value chain contributes to biodiversity loss. Kesko’s product range includes high-impact commodities that have significant nature-related impacts, primarily through land-use and sea-use change linked to production activities, such as agriculture, forestry, mining and fishing.
E5 Resource use and circular economy |  |  |
Resource outflows related to products and services: Packaging | Actual negative impact | Own operations | Short-, medium- and long-term | The logistics chain of products includes several types of packaging, from logistics packaging to individual product retail packaging.
Waste | Actual negative impact | Own operations | Short-, medium- and long-term | Waste is generated in Kesko’s operations, especially in warehouse operations, logistics and in own retail operations.
Food waste | Actual negative impact | Own operations | Short-, medium- and long-term | Food waste is generated in Kesko’s warehouse operations, logistics and cash-and-carry outlets.
Food waste | Actual negative impact | Downstream | Short-, medium- and long-term | Food waste is generated in K-food retailers’ store operations.
S1 Own workforce |  |  |  |
Working conditions: Adequate wage | Potential positive impact | Own operations | Short-, medium- and long-term | Kesko is committed to providing all employee groups with an adequate wage, which is based on national pay levels and covers at least the basic needs of employees and their families.
Working conditions: Social dialogue and collective bargaining | Actual positive impact | Own operations | Short-, medium- and long-term | Social partners engage in continuous dialogue to take employees’ expectations into account. This ensures fair working conditions for employees and terms of employment are in line with local legislation and labour market practices.
Working conditions: Health and safety | Actual negative impact | Own operations | Short-, medium- and long-term | Although measures and management models to promote health, work capacity and occupational safety are systematically implemented, work-related accidents may still occur and employees may become ill.
Equal treatment and opportunities for all: Gender equality | Potential positive impact | Own operations | Short-, medium- and long-term | The experience of gender equality has a significant impact on employee experience and job satisfaction. Adhering to principles that promote gender equality fosters fairness and equality in the workplace.
Equal treatment and opportunities for all: Diversity | Potential positive impact | Own operations | Short-, medium- and long-term | Diverse and inclusive work community creates the conditions for innovation and strengthens employee wellbeing.
Equal treatment and opportunities for all: Prevention of violence and harassment | Potential positive impact | Own operations | Short-, medium- and long-term | In our work community, everyone can perform their work without fear of violence, threats or harassment. Preventing violence is part of a day-to-day safety culture that supports wellbeing and productivity.
Equal treatment and opportunities for all: Training and skills development | Actual positive impact | Own operations | Short-, medium- and long-term | Continuous learning, career development and systematic performance management are key elements of competence development and a positive employee experience. Competent personnel are also ensured through business-driven recruitment.

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Topic | Impact, risk or opportunity | Value chain | Time horizon | Description
S2 Workers in the value chain |  |  |
Working conditions | Potential negative impact | Upstream | Short-, medium- and long-term | Inadequate working conditions weaken value chain workers’ wellbeing and quality of life.
Child labour and forced labour | Potential negative impact | Upstream | Short-, medium- and long-term | Infringements of labour rights affecting value chain workers cause suffering for the affected workers and their families.
Working conditions Child labour and forced labour | Risk | Upstream | Short-, medium- and long-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.
S4 Consumers and end-users |  |  |
Health and safety: Enabling healthy choices | Potential positive impact | Downstream | Short-, medium- and long-term | 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.
Health and safety: Product safety | Potential negative impact | Downstream | Short-, medium- and long-term | 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.
Health and safety: Product safety | Risk | Downstream | Short-, medium- and long-term | The realisation of product safety risk may cause reputational damage and may result in liability for damages for Kesko.
Privacy: Data protection | Potential negative impact | Downstream | Short-, medium- and long-term | 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.
Privacy: Data protection | Risk | Downstream | Short-, medium- and long-term | The realisation of data protection risk may cause reputational damage and may result in liability for damages for Kesko.
G1 Business conduct |  |  |
Corporate culture | Potential positive impact | Value chain | Short-, medium- and long-term | 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 | Risk | Own operations | Short-term | Increasing sustainability regulation may lead to changes in the business model and require investments to meet legislative requirements.
Protection of whistleblowers | Potential positive impact | Value chain | Short-, medium- and long-term | Kesko has a confidential SpeakUp channel that is open to personnel, customers, suppliers and other stakeholders. Kesko has anti-discrimination and anti-harassment principles, 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.
Corruption and bribery | Potential negative impact | Own operations, downstream | Short-, medium- and long-term | 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.
Relationships with suppliers and service providers | Potential positive impact | Downstream | Short-, medium- and long-term | 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.

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Changes to the material impacts, risks and opportunities compared
to the previous reporting period
Kesko updated its double materiality assessment for the 2025 reporting period. The update is
based primarily on the material impacts, risks and opportunities identified in the 2024 double
materiality assessment, as a full-scale process for identifying and assessing impacts, risks and
opportunities was not carried out in 2025. For the purposes of 2025 reporting, Kesko
reviewed the sustainability matters identified as material in the double materiality assessment
and the related impacts, risks and opportunities, and confirmed their materiality. No
significant changes in Kesko’s business operations or operating environment were assessed
to have occurred that would affect the impacts, risks or opportunities identified.
The most significant change compared with the information presented in 2024 relates to
ESRS E4 Biodiversity and ecosystems, where an impact connected to land-use change and
changes in the use of freshwater and marine resources was identified and assessed as a
material impact in the upstream value chain. In the 2024 double materiality assessment,
Kesko had already identified topics related to this standard as requiring specific analysis and
monitoring in the process of updating the double materiality assessment in the coming years.
In addition to the change related to ESRS E4, updates to the double materiality assessment
were made in relation to ESRS E1 Climate change and ESRS S1 Own workforce. Regarding
ESRS E1, climate-related risks were reassessed during 2025. Based on this review, the risk
assessed as material in the 2024 double materiality assessment was not considered, in the
2025 review, to give rise to a material financial effect for Kesko. As a result, ESRS E1 Climate
change is associated only with material negative impacts in Kesko’s own operations and
value chain, particularly in relation to greenhouse gas emissions.
Furthermore, in the update of the double materiality assessment for ESRS S1 Own workforce,
a potential positive impact related to the sub-sub-topics working time and work-life balance
within the working conditions sub-topic was assessed to remain below the materiality
threshold.
Impacts, risks and opportunities
Environment
In Kesko’s business model, the material climate- and nature-related sustainability impacts are
primarily associated with the products sold by Kesko across all business divisions. Climate-
and nature-related impacts in Kesko’s own operations and value chain are actual
negative impacts.
A significant share of the identified impacts arises in the upstream value chain from the
manufacturing of products, or in the downstream value chain from the use of products. Most
greenhouse gas emissions arise from the production and use of products, and most food
waste is generated in K-food retailers’ store operations. Product-related impacts on
biodiversity also arise primarily in the upstream value chain in connection with product
manufacturing. In Kesko’s own operations, the key impacts relate in particular to greenhouse
gas emissions generated by operations, resource outflows in the form of packaging materials,
and waste and food waste generated in operations.
Social
Kesko has 18,991 employees under employment contracts, and Kesko’s operations are
connected to their employment, wellbeing, health and safety. Through its own actions, Kesko
can contribute positively to employee wellbeing by ensuring equal treatment and by
providing training and development opportunities. Negative impacts have been identified in
relation to health and safety, as occupational accidents and illnesses occur despite
preventive measures and operating models. Through extensive supply chains, Kesko is
connected to value chain workers, and a risk has been identified related to potential breaches
of Kesko’s K Code of Conduct guidelines.
Consumers are a key customer group in Kesko’s business model. With regard to consumers
and end-users, potential negative impacts have been identified in particular in relation to the
safety of products sold by Kesko and to data protection. In both cases, the potential negative
impacts are, by nature, limited to individual cases.

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Governance
Promoting an ethical corporate culture and ensuring compliance with business principles
form the foundation of Kesko’s operations. They guide decision-making, support
management and create the prerequisites for long-term and sustainable business.
The positive impacts of an ethical corporate culture relate to how operating principles
strengthen trust among customers, partners, employees and other stakeholders. They also
support the integration of sustainability considerations across the value chain. Breaches of
laws or operating principles may result in financial and legal consequences for Kesko, weaken
stakeholder trust and adversely affect the company’s reputation.
Resilience of strategy and business model
Kesko’s strategy implementation and business model, consisting of three divisions, is not
critically dependent on individual customers, supply chains or product categories. Overall,
Kesko’s business model is assessed to adapt well in relation to the individual material
sustainability matters identified. For the reasons described above, Kesko has not prepared a
separate analysis on the resilience of its strategy and business model in addressing material
sustainability matters. Kesko has also not identified a need to make changes to its strategy or
business model.
In Kesko’s business model, the most significant sustainability impacts are associated with
products purchased by Kesko and sold onwards to customers. The key climate- and nature-
related impacts arise either in the upstream value chain from the manufacturing of products
or in the downstream value chain from the use and consumption of products. Kesko’s
business model depends on functioning supply chains, which highlights, particularly in the
upstream value chain, effective supplier relationships and the implementation of ethical
operating principles within those business relationships.
The range of products sold is constantly changing as manufacturers develop new products
and discontinue older products from their assortments. Sustainability considerations are an
increasingly important part of product development and the introduction of new products to
the market. As a trading sector operator, Kesko’s role is to actively make new products
available to customers, understand how demand develops and respond to customers’
changing requirements. These requirements are also influenced by sustainability
considerations. In addition, legislation related to products, raw materials and sustainability
information is continuously evolving.
Kesko operates between suppliers and customers. The product offering is shaped by
products introduced to the market by suppliers and by customer demand. Kesko’s strategy
and business model adapt between these two factors.
Kesko has identified a strategic development initiative in particular to reduce greenhouse gas
emissions generated in the value chain. In 2025, approximately 96% of Kesko’s value chain
greenhouse gas emissions arose from the manufacturing of purchased products and the use
of sold products. Kesko will start preparing a transition plan to reduce value chain
greenhouse gas emissions in 2026.
Sustainability-related risks in Kesko’s business model are primarily associated with evolving
and tightening sustainability regulation, the safety of products sold, and data protection. In
addition, through its business relationships, Kesko is connected to value chain workers,
which involves a risk of breaches of the K Code of Conduct and of human rights violations
affecting workers. Such breaches may cause reputational damage and disruptions to
business operations, and may lead to a need to identify alternative suppliers.
As at the end of the reporting period, Kesko had not identified any financial impacts arising
from sustainability risks on the Group’s financial position, financial performance or cash
flows that would have required recognition or disclosure in the consolidated financial
statements. On the basis of the transitional provisions, Kesko does not include in the
sustainability statement information on the financial effects of material impacts, risks and
opportunities. The use of the transitional provisions is described in more detail in the section
General information, Basis for preparation.
Kesko has set sustainability targets, and further information on the setting of the targets and
progress made is provided in connection with each topical section. The targets have been set
as part of Kesko Group’s sustainability strategy, division-specific sustainability strategies or
the HR strategy. The target related to improving energy efficiency is part of Kesko’s energy
strategy. The sustainability statement includes those targets that contribute to addressing
the material impacts, risks and opportunities identified in the double materiality assessment.
Key stakeholders have not been significantly involved in the target-setting process.

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Impact, risk and opportunity management
Identification and assessment of material impacts, risks
and opportunities (IRO-1)
Kesko has conducted a double materiality assessment in accordance with the requirements
of ESRS 1 General Requirements. The purpose of this assessment is to identify sustainability-
related impacts, risks and opportunities. The material impacts, risks and opportunities
identified through the assessment determine the disclosures presented in the sustainability
statement.
The double materiality assessment includes an impact assessment, which evaluates how
Kesko’s operations affect the environment, people and society. In the assessment of financial
materiality, Kesko identifies sustainability topics that pose risks to, or create opportunities
for, the business, and which may have an effect on Kesko’s financial performance
and position.
Kesko has updated its double materiality assessment for the 2025 reporting period. The
material impacts, risks and opportunities identified in the double materiality assessment, as
well as changes in material impacts, risks and opportunities compared to the previous
reporting period, are described in the sustainability statement section Material impacts, risks
and opportunities and their interaction with strategy and business model (SBM-3).
The double materiality assessment for 2025 is primarily based on the material impacts, risks
and opportunities identified in the 2024 assessment, as a full-scale process for identifying
and assessing impacts, risks and opportunities was not conducted in 2025.
For the 2025 reporting period, the sustainability matters identified as material in the double
materiality assessment, as well as their related impacts, risks and opportunities, were
reviewed and their materiality was confirmed. No significant changes were assessed to have
occurred in Kesko’s business operations or operating environment that would affect the
impacts, risks or opportunities assessed as material in the previous assessment.
The updated double materiality assessment for the 2025 reporting period was presented to
the Group Management Board in September 2025 and to the Audit Committee in October
2025. The update related to climate-related risks was presented to the Audit Committee in
December 2025.
In the 2024 double materiality assessment process, impacts were identified in topic-specific
workshops and scored to achieve preliminary prioritisation. After the workshops, the impact
scores were reviewed to ensure consistency and to avoid over- or underestimation of any
impact. Impacts were assessed based on their severity and likelihood. The severity of an
impact is determined by its scale, scope and, in the case of negative impacts, its
remediability.
The identification and assessment of risks and opportunities was conducted as part of
Kesko’s risk management process, which 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 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. In the impact assessment, topic-specific workshops included a
broad range of Kesko personnel, including representatives from sustainability and sourcing
functions in the divisions, as well as staff from finance, risk management, legal affairs and
HR. The assessment of risks and opportunities involved the sustainability directors and
finance directors of the divisions. Kesko’s risk management unit was responsible for
coordinating the process.
Stakeholder consultations were conducted through separate interviews, with a focus on
financial market participants, suppliers and B2B customers. Through these interviews,
information was gathered on how stakeholders view the key impacts, risks and opportunities
of Kesko’s operations across various sustainability topics. The interviews also served to

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validate 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, and no changes to the identified material impacts, risks or
opportunities were deemed necessary based on stakeholder feedback. Kesko’s double
materiality assessment did not include consultations with communities directly affected by
the company’s impacts.
Identification and assessment of topic-specific impacts, risks and
opportunities
Environment
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 and logistics operations. The largest source of scope 2 emissions is
emissions from district heating consumption. 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. In addition, emissions are generated from the manufacture of fixed assets,
logistics transport and K-retailers’ store operations.
The emission sources described above represent so-called energy and industrial emissions.
In addition to these, Kesko’s operations generate land use-related emissions. Land use-
related emissions from Kesko’s own operations arise from land-use change, when forest or
other natural land on land areas owned by Kesko is converted into built land. The majority of
land use-related emissions arise in the value chain, primarily in the primary production of
food products. Kesko has identified land use-related emissions as a significant source of
emissions in addition to energy and industrial emissions.
During 2025, Kesko carried out a division-specific review of climate-related risks. In the
review, each of Kesko’s three divisions conducted its own assessment of the most significant
climate-related risks relevant to the division. In addition, a separate review was carried out
for Kesko’s real estate operations. Climate scenarios were not used in the identification and
assessment of climate-related risks. Based on this review, no material climate-related risks
were identified at Group level in Kesko’s operations.
E2 Pollution
Pollution-related potential negative impacts in Kesko’s own operations and in the product
value chain did not, in the double materiality assessment, exceed the materiality threshold
and therefore did not emerge as material impacts.
In Kesko’s own operations, potential negative impacts were identified in relation 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. As part of the double
materiality assessment process, Kesko has not conducted a separate review of its assets or
operations specifically to identify pollution-related impacts.
In addition to pollution of soil, impacts were identified in relation to microplastics and to
products in Kesko’s product range classified as substances of concern. In the product value
chain, negative impacts were identified in particular in primary food production and the
manufacturing industry.
E3 Water and marine resources
Potential negative impacts related to water and marine resources in Kesko’s own operations
and in the product value chain did not, in the double materiality assessment, exceed the
materiality threshold and therefore did not emerge as material impacts.
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. As part of the double materiality assessment process, Kesko has not
conducted a separate review of its assets or operations specifically to identify impacts
related to water consumption.
Negative impacts related to water were identified in the upstream value chain of products in
primary production, particularly through products originating in areas suffering from water
scarcity or through products whose production processes require significant volumes of
water. Issues related to water use are considered when making selection and sourcing
decisions on products and product categories with identified water-related impacts.

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However, given the breadth of Kesko’s product range, the negative impacts identified in the
product value chain did not exceed the threshold for a material impact.
Kesko’s product selection includes fish and shellfish, and a negative impact was identified in
relation to the exploitation and use of marine resources. The fish and shellfish selection is
managed to ensure it does not include endangered species. The share of fish and shellfish
products in Kesko’s operations is not significant and therefore did not exceed the materiality
threshold.
E4 Biodiversity and ecosystems
Kesko’s product assortment includes products that have significant nature‑related impacts.
The most material impact identified relates specifically to the direct drivers of biodiversity
loss. Land‑use and water‑use changes occur within Kesko’s value chain particularly in
primary production, such as agriculture, forestry, mining and fishing.
Kesko assessed the risks and geographical scope of land‑use change in its supply chains
based on the LEAP (Locate, Evaluate, Assess and Prepare) methodology. The assessment
also utilised the Science Based Targets for Nature (SBTN) High Impact Commodity (HIC) list
to identify product groups with significant environmental impacts. The assessment covered
product categories across all Kesko divisions. 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 assessment was initiated in
2024 and completed in 2025.
Transition risks associated with nature‑related dependencies are most relevant for divisions
whose raw materials are highly dependent on agriculture. Kesko’s value chain is extensive
and consists of diverse product categories, which limits the impact of any single physical or
transition risk on the business as a whole. No material nature‑related physical or transition
risks were identified in the assessment.
The assessment also covered the mapping of nature-related impacts in Kesko’s own
operations. In Kesko’s own operations, the assessment focused on identifying nature-related
impacts at Kesko’s sites. During 2024, Kesko examined the scale and significance of land‑use
change related to its construction activities and property portfolio, based on the LEAP
methodology. As part of this analysis, the land‑use categories of Kesko’s owned and leased
properties were identified through geospatial analysis using land‑use datasets. The
significance of land‑use change was assessed by calculating the share of vegetated areas in
the immediate vicinity of the properties’ coordinate points and by using values from WWF’s
Risk Filter tool to evaluate risks related to 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
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.
Construction is highly regulated, and Kesko complies with all statutory requirements and
authority‑mandated obligations in its construction projects. Kesko primarily builds retail sites
and other properties on areas zoned for business use. Required nature assessments and
other environmental reviews are carried out during the permitting processes of construction
projects. In Kesko’s large logistics centre projects, environmental impact assessments (EIA),
for example, have been required.
Based on the assessment, Kesko’s own operations do not entail material impacts on
biodiversity or ecosystems.

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E5 Resource use and circular economy
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.
Material negative 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, and the amount of
hazardous waste in Kesko’s operations is low. As part of the double materiality assessment
process, Kesko has not conducted a separate review of its assets or operations specifically to
identify waste-related impacts.
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 and in
wholesale operations in Kesko’s grocery trade division. However, the most significant aspect
in preventing food waste is the prevention of food waste in the downstream value chain in
K-food retailers’ store operations, where most of the food waste is generated.
People, society and governance
S1 Own workforce and S2 Workers in the value chain
With regard to the own workforce, both actual and potential positive impacts were
identified. Actual negative impacts were identified in relation to health and safety. With
regard to workers in the value chain, potential negative impacts were identified related to
working conditions and to the risk of child labour and forced labour. The review was carried
out using a risk-based approach, taking into account both countries classified as high-risk
and, more broadly, different geographical areas. The risk of breaches of the K Code of
Conduct has been assessed to be highest in countries classified as high-risk, however,
negative impacts affecting value chain workers have also come to Kesko’s attention in other
geographical areas. The risk has typically been found to arise from a combination of
geographical location and certain product categories or raw materials.
S3 Affected communities
The nature of Kesko’s business, where operations are spread across numerous locations
within its operating area and the operating area is concentrated in Northern Europe, does
not result in impacts that would, in relation to the topics covered by the standard, be
considered material for the communities concerned.
G1 Business conduct
Ensuring ethical and transparent business conduct, as well as compliance with laws and
regulations, is essential in Kesko’s operations. The prevention of corruption and bribery,
together with the whistleblower protection provided through the SpeakUp channel, supports
the implementation of an ethical business culture across the value chain. In Kesko’s
operations, the areas identified as presenting specific risks related to corruption and bribery
include real estate and store site operations, the sourcing of goods and services,
participation in public procurement processes, operations in new geographical and business
areas, interactions with public officials, and corporate transactions. Impacts related to
corporate culture, the prevention of corruption and bribery, and the functioning of
whistleblower protection were assessed as material in Kesko’s operating environment.
Kesko has defined K Code of Conduct guidelines for its suppliers of goods and services, with
the aim of promoting ethical business practices in the procurement chain and supporting
responsible conduct throughout the value chain.
Increasing sustainability‑related regulation and the potential changes it may require to
Kesko’s business model, as well as possible future investment needs to ensure compliance
with regulatory requirements, were identified as a risk which, if realised, may influence
Kesko’s resource allocation.

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Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement (IRO-2)

ESRS 2 General disclosures | Page
BP-1 General basis for preparation of sustainability statements | 22
BP-2 Disclosures in relation to specific circumstances | 23
GOV-1 Disclosures in relation to specific circumstances | 25
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | 27
GOV-3 Integration of sustainability-related performance in incentive schemes | 28
GOV-4 Statement of due diligence | 28
GOV-5 Risk management and internal controls over sustainability reporting | 28
SBM-1 Strategy, business model and value chain | 29
SBM-2 Interests and views of stakeholders | 31
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model | 32
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities | 37
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement | 41
Environment |
E1 Climate change |
E1-1 Transition plan for climate change mitigation | 55
E1-2 Policies related to climate change mitigation and adaptation | 56
E1-3 Actions and resources in relation to climate change policies | 57
E1-4 Targets related to climate change mitigation and adaptation | 59
E1-5 Energy consumption and mix | 63
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions | 64
E1-7 GHG removals and GHG mitigation projects financed through carbon credits | 55
E1-8 Internal carbon pricing | 55
E5 Resource use and circular economy |
E5-1 Policies related to resource use and circular economy | 73
E5-2 Actions and resources related to resource use and circular economy | 73
E5-3 Targets related to resource use and circular economy | 74
E5-5 Resource outflows | 76

Social | Page
S1 Own workforce |
S1-1 Policies related to own workforce | 80
S1-2 Processes for engaging with own workers and workers’ representatives about impacts | 82
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns | 82
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 | 83
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 85
S1-6 Characteristics of the undertaking’s employees | 87
S1-8 Collective bargaining coverage and social dialogue | 89
S1-9 Diversity metrics | 89
S1-10 Adequate wages | 90
S1-13 Training and skills development metrics | 90
S1-14 Health and safety metrics | 91
S1-16 Compensation metrics (pay gap and total compensation) | 91
S1-17 Incidents, complaints and severe human rights impacts | 92
S2 Workers in the value chain |
S2-1 Policies related to value chain workers | 94
S2-2 Processes for engaging with value chain workers about impacts | 95
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns | 95
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 | 96

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S4 Consumers and end-users | Page
S4-1 Policies related to consumers and end-users | 100
S4-2 Processes for engaging with consumers and end-users about impacts | 102
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | 102
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 | 103
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 104
Governance |
G1 Business conduct |
G1-1 Corporate culture and business conduct policies and corporate culture | 106
G1-2 Management of relationships with suppliers | 108
G1-3 Prevention and detection of corruption and bribery | 108
G1-4 Confirmed incidents of corruption or bribery | 109

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ENVIRONMENTAL INFORMATION
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. 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
Objective: Climate change mitigation (CCM)
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. The activity is subject to 'do no significant harm' criteria. However, the data required to assess alignment is not available, and alignment of the vehicles with the classification system cannot be verified. Vehicles in the leasing business are classified as Taxonomy-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 Taxonomy-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 be at 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 activity 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. Major refurbishments or extensions in properties owned by Kesko, as well as in leased premises where Kesko is responsible for refurbishments. | 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 activity 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 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. | The information available is not detailed enough to assess compliance with the criteria applicable to the activity, and Taxonomy alignment cannot therefore be determined. Investments related to the activity are classified as Taxonomy-eligible, but not Taxonomy-aligned. |  | √ |

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|  |  |  | Performance indicators
Taxonomy activity | Activity description | Assessment of Taxonomy alignment | Turnover | CapEx | Opex
Objective: Climate change mitigation (CCM)
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. |  | √ |
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. |  | √ |
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. |  | √ |
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 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. |  | √ | √
Objective: Circular economy (CE)
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. | For used cars, the information needed to reliably assess Taxonomy alignment of the vehicles under the classification system is not available. Used cars are classified as Taxonomy-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 disclose
the proportion of turnover, capital expenditure and operating expenditure attributable to
Taxonomy-eligible and Taxonomy-aligned economic activities.
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
to customers and retailers. Product sales are currently not a Taxonomy-eligible activity, with
the exception of used car sales.

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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 2025 totalled €735.7 million (€675.9 million).
The following table details the capital expenditure items used to calculate the Taxonomy
CapEx indicator.
Capital expenditure (CapEx) under EU Taxonomy

€ million | 2025 | 2024
Property, plant and equipment - Additions (Note 3.2) | 536.7 | 494.9
Property, plant and equipment - Acquisitions (Note 3.2) | 92.8 | 94.4
Intangible assets - Additions (Note 3.3) | 10.4 | 16.2
Intangible assets - Acquisitions excluding goodwill (Note 3.3) | 7.2 | 39.7
Right-of-use assets - Additions (Note 3.4) | 459.4 | 457.5
Right-of-use assets - Acquisitions (Note 3.4) | 2.9 | 12.3
Total | 1,109.4 | 1,115.1

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 €196.2 million (€198.5 million) in 2025. 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 2025

Financial year 2025 | 2025 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activities | Code | Turnover | Proportion of turnover, year 2025 | 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 2024 | 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 | 32.2 | 0.3% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.2% |  |
Sale of second-hand goods | CE 5.4 | 404.8 | 3.2% | N/EL | N/EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 2.7% |  |
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 436.9 | 3.5% | 0.3% | 0.0% | 0.0% | 0.0% | 3.2% | 0.0% |  |  |  |  |  |  |  | 2.9% |  |
A. Turnover of Taxonomy eligible activities (A.1+A.2) |  | 436.9 | 3.5% | 0.3% | 0.0% | 0.0% | 0.0% | 3.2% | 0.0% |  |  |  |  |  |  |  | 2.9% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities |  | 12,037.8 | 96.5% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | 12,474.7 | 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 2025

Financial year 2025 | 2025 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activities | Code | CapEx | Proportion of CapEx, year 2025 | 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 2024 | 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 | 107.4 | 9.7% | Y | N | N/EL | N/EL | N | N/EL |  | Y | Y | Y | Y | Y | Y | 9.1% |  |
Installation, maintenance and repair of charging stations for electric vehicles in buildings | CCM 7.4 CCA 7.4 | 7.2 | 0.6% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 0.8% | E |
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings | CCM 7.5 CCA 7.5 | 0.1 | 0.0% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 0.0% | E |
Installation, maintenance and repair of renewable energy technologies | CCM 7.6 CCA 7.6 | 0.2 | 0.0% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 0.0% | E |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 42.4 | 3.8% | Y | N | N/EL | N/EL | N/EL | N/EL |  | Y |  |  |  |  | Y | 5.7% |  |
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 157.3 | 14.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  | Y | Y | Y | Y | Y | Y | 15.6% |  |
Of which Enabling |  | 7.5 | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.8% | 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 2025 | 2025 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activities | Code | CapEx | Proportion of CapEx, year 2025 | 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 2024 | 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 | 86.8 | 7.8% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 4.7% |  |
Freight transport services by road | CCM 6.6 CCA 6.6 | 1.9 | 0.2% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.4% |  |
Construction of new buildings | CCM 7.1 CCA 7.1 CE 3.1 | 28.3 | 2.5% | EL | EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 2.4% |  |
Renovation of existing buildings | CCM 7.2 CCA 7.2 CE 3.2 | 80.5 | 7.3% | EL | EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 9.2% |  |
Installation, maintenance and repair of energy efficiency equipment | CCM 7.3 CCA 7.3 | 1.6 | 0.1% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.3% |  |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 446.8 | 40.3% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 43.2% |  |
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 645.9 | 58.2% | 60.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 60.3% |  |
A. CapEx of Taxonomy eligible activities (A.1+A.2) |  | 803.2 | 72.4% | 75.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 75.9% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities |  | 306.2 | 27.6% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | 1,109.4 | 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 2025

Financial year 2025 | 2025 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |
Economic activities | Code | OpEx | Proportion of OpEx, year 2025 | 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 | 1.9 | 2.9% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 2.8% |  |
Freight transport services by road | CCM 6.6 CCA 6.6 | 1.4 | 2.2% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 1.4% |  |
Acquisition and ownership of buildings | CCM 7.7 CCA 7.7 | 63.3 | 95.0% | EL | EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 95.8% |  |
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 66.6 | 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) |  | 66.6 | 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 |  | 66.6 | 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% | 0.3%
CCA | 0.0% | 0.0%
WTR | 0.0% | 0.0%
CE | 0.0% | 3.2%
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 | 14.2% | 58.2%
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

Transition plan for climate change mitigation (E1-1) ............................................... | 55
Policies (E1-2) .................................................. | 56
Actions (E1-3) .................................................. | 57
Targets and progress towards targets (E1-4) ................................................................ | 59
Metrics .............................................................. | 63
Energy consumption and mix (E1-5) .............. | 63
Greenhouse gas emissions (E1-6) .................. | 64

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Climate change mitigation | Actual negative impact: Kesko‘s own operations generate greenhouse gas (GHG) emissions (scope 1 and 2). The most significant source of scope 1 emissions are the fuel emissions of transportation and logistics. The most significant source of scope 2 emissions are district heating consumption emissions. | • Kesko has set climate targets for reducing the emissions from its own operations (scope 1 and 2). The Science Based Targets initiative validated Kesko's climate targets in January 2026. • The most significant investments to reduce energy and industrial emissions are related to the electrification of the logistics fleet and improving energy efficiency by installing energy recycling systems.
Climate change mitigation | Actual negative impact: 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 of capital goods and upstream transportation. | • Kesko has set new near-term and long-term climate targets for its value chain (scope 3). The Science Based Targets initiative validated Kesko's climate targets in January 2026. • Preparatory work to build transition plan for Kesko's value chain emissions (scope 3) started at the end of 2025. • Suppliers are encouraged to set their own science-based emission reduction targets.
Energy | Actual negative impact: The consumption of fossil energy sources in properties owned and managed by Kesko and in transport and logistics generates GHG emissions. | • Reducing the consumption of fossil energy sources by electrifying transport, improving energy efficiency, and increasing the share of renewable and emission-free energy sources in energy consumption.

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Climate risks and resilience assessment
Kesko has assessed the financial impacts of climate change on its operations. No material
climate-related risks have been identified in the Group’s operational risk map, where the
review period is 12 months.
In assessing sustainability-related risks, it is essential to consider medium- and long-term risk
horizons. The medium- and long-term periods used in the risk assessment correspond to the
definitions used by ESRS, where the medium term extends five years from the end of the
short term, and the long term is from five years onwards. Climate scenarios were not used in
the identification and assessment of climate risks.
Physical risks
Physical climate risks associated with operations were particularly identified in relation to the
effects of extreme weather events in properties owned and leased by Kesko, as well as in the
product supply chain, such as disruptions in product availability.
Kesko owns and manages a significant number of properties under lease agreements in all
operating countries. These properties are exposed to physical risks related to climate
change. In the future, increasing extreme weather events may increase the strain on
properties and the costs associated with maintenance and repairs. Individual assets may be
subject to damage risks or investment needs due to extreme weather events. The most
significant extreme weather events in Kesko's operating countries are linked to chronic
climate risks, such as heat stress and changes in rainfall patterns and types. Acute risks are
related to heatwaves, storms, heavy rains, and floods. Future weather conditions are
modelled, for example, using forward-looking weather data, and the risks are considered in
real estate project planning guidelines.
At the time of the assessment, Kesko has not identified material climate risks related to
assets that could lead to asset impairment or have significant impacts on business continuity.
Annually, Kesko's retail locations may experience, for example, floods or leaks in property
structures caused by heavy rainfall, but these disruptions have not caused significant impacts
or interruptions to business operations in the affected locations.
Extreme weather events, such as drought, heavy rainfall, and cold spells, may lead to
disruptions in product availability. Intensified storms, increased rainfall, sudden floods, and
prolonged droughts particularly affect agriculture and the production of raw materials and
food. Increasing extreme weather events raise the risk of disruptions in global supply chains.
The impacts may be seen on product availability, quality, and price. Managing these risks
includes anticipating potential global changes in prices, suppliers and product quality across
the value chain.
In the short term, disruptions to availability caused by extreme weather events are already
part of business operations. Identifying and assessing risks, and using climate scenario
analysis in medium- and long-term assessments, are key means of preparing for these risks.
Physical risk related to extreme weather events in the supply chain for products and raw
materials has been identified in all three of Kesko's divisions. The risk has not been
incorporated into the operational risk maps for any of the divisions, where the review period
is 12 months. Going forward, these risks will need to be assessed more thoroughly also in the
medium and long term. In the double materiality assessment, the risk was not considered to
exceed the materiality threshold at the time of the assessment.
Transition risks
With regard to climate-related transition risks, a key risk identified relates to responding to
evolving and increasingly stringent legislation. In the double materiality assessment, Kesko
has also identified a broader risk associated with tightening regulation across several
sustainability topics. This risk has been included under ESRS G1 Business conduct, as it
relates to ensuring compliance across different areas of sustainability regulation.
Kesko has not assessed business activities and assets that could be subject to possible
transition risks as part of its transition risk mapping.

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Business resilience
The resilience assessment is based on the assessment of climate-related risks in Kesko's own
operations. Kesko's business model, which consists of three different divisions, reduces
exposure to climate-related risks affecting an individual division. In the grocery trade and in
the building and technical trade, the diversification of supply chains and the diversity of
product categories support resilience and reduce related risks, and these risks are not
considered to have a significant impact on the financial position or business continuity of the
Kesko Group.
Climate-related risks related to properties are also not considered to be a significant risk to
the continuity of Kesko's business operations. The main risks to business continuity relate to
the supply reliability of Kesko's central warehouses and the functionality of critical
systems.The geographical diversification of Kesko’s retail locations also supports resilience
and reduces the risks associated with individual sites. Risks related to individual retail
locations are not significant for business continuity.
In general, the resilience of Kesko's business model to various climate-related risks is good.
However, the greatest impacts related to climate change arise in Kesko's value chain. In the
medium and long term, reducing GHG emissions in the value chain and adapting business
operations to the requirements of a low-carbon business model are essential.
Transition plan for climate change mitigation (E1-1)
During 2025, Kesko set new near- and long-term climate targets. The company has also
committed to reducing GHG emissions across its entire value chain to net-zero by 2050. The
new climate targets were approved by Kesko’s Board of Directors in October 2025, after
which they were submitted for validation to the Science Based Targets initiative (SBTi). The
validation process for these targets was still ongoing at the end of the reporting period on
31 December 2025. Kesko received confirmation that the SBTi validation process had
concluded and the targets had been approved after the reporting period ended, in January
2026.
Kesko’s climate targets are set in line with the SBTi criteria and are consistent with limiting
global warming to 1.5°C in line with the Paris Agreement. Kesko is not subject to the
exclusion criteria applied in EU Paris‑aligned Benchmarks.
In 2024, Kesko prepared a transition plan for reducing energy and industrial emissions from
its own operations (scope 1 and 2). The plan was reviewed by the Group Management Board
and formally approved by the Board of Directors. The transition plan covers the years
2025–2034. The plan was updated during 2025, as the near-term target level was raised as
part of broader climate target updates.
The transition plan sets out the measures to reduce emissions from Kesko’s own operations
in order to achieve its near-term climate target. Key measures for reducing emissions in
Kesko’s own operations include electrifying logistics and switching to biofuels, phasing out
oil and gas heating, improving energy efficiency and increasing the use of renewable energy.
In our assessment, the amount of locked-in emissions is limited and does not threaten the
achievement of near-term emission reduction targets. Potential locked-in emissions are
particularly associated with electricity-related emissions in Poland and the Baltics, district
heating use, and possible constraints on the electrification of logistics, which could maintain
the use of fossil fuels. The development of locked-in emissions largely depends on progress
in property technology, energy generation, and transport electrification.
At the end of 2025, Kesko’s scope 1 and 2 GHG emissions totalled 74,204 tCO 2 eq. The
reduction from the 2024 base year was 19%. The most significant actions taken in 2025 to
achieve emission reductions were increasing the number of electric and gas vehicles in the
logistics fleet, as well as switching purchased electricity to zero-emission sources,
particularly in parts of operations in Denmark, Sweden and Norway.
In preparing the transition plan for energy and industrial emissions from own operations
(scope 1 and 2), Kesko assessed the level of investments required to implement the plan.
Investment decisions and their execution are part of strategy work and annual planning. The
investments required to implement Kesko’s transition plan are not expected to constitute a
significant share of the Group’s total investments. Kesko did not have an internal carbon
pricing mechanism in place during the reporting period.

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In Kesko’s own operations, capital expenditure under the Taxonomy Regulation is mainly
related to owning, leasing and construction of properties for the needs of its own business.
Kesko’s principle is that new properties are constructed in accordance with the technical
screening criteria set out in the Taxonomy Regulation. Kesko does not have CapEx plans as
defined by the Taxonomy Regulation, by which properties owned by Kesko would become
Taxonomy-aligned.
At the end of the reporting period in 2025, Kesko had not prepared a transition plan
according to the ESRS E1 Climate Change standard for reducing energy and industrial
emissions in the value chain or land use-related FLAG (Forest, Land and Agriculture)
emissions. During 2026, Kesko will prepare a transition plan for reducing these emissions,
extending to 2034. The transition plan will be reviewed by the Group Management Board,
and formally approved by the Board of Directors.
Kesko has not participated in projects to remove or store GHG emissions, nor has it financed
such projects by purchasing carbon credits. The need for neutralisation to achieve long-term
climate targets has been identified, but options and quantities have not yet been
investigated.
Further information on Kesko’s climate change mitigation actions and their link to financial
planning and access to finance is provided in the Actions section (E1-3). Kesko’s new climate
targets set in 2025 are described in the Targets and progress towards targets section (E1-4).
Policies (E1-2)
Kesko’s sustainability policy guides Kesko’s climate work. In this policy, Kesko is committed
to the goals of international climate summits for the mitigation of global warming and to
reducing emissions from its own operations and across the value chain. The sustainability
policy has been approved by Kesko’s Board of Directors, and its implementation is overseen
by Executive Vice President, Legal and Sustainability of Kesko Group, who is a member of
the Group Management Board.
At the end of 2025, the Board of Directors approved an updated sustainability policy, which
will take effect on 1 January 2026. The revised sustainability policy considers a broader range
of principles related to reducing GHG emissions and improving energy efficiency compared
to the previous policy.
Deforestation is one of the most critical drivers behind the rise in global GHG emissions. As
part of setting land use-related emissions targets, company must commit, in line with SBTi
criteria, to no deforestation across its primary deforestation-linked commodities, by the end
of 2025. Kesko is committed to fulfilling this commitment.
Kesko’s energy strategy guides energy procurement and sets the principles for improving
energy efficiency. The energy strategy sets targets for improving energy efficiency and for
sourcing renewable electricity. The energy strategy has been approved by Kesko Group
Management Board, and its implementation is overseen by Kesko Group’s Energy Director.
Kesko’s K Code of Conduct for business partners sets out the expectations for its business
partners on sustainability-related matters, and is generally included in procurement
agreements. K Code of Conduct requires business partners to encourage sustainable
business practices throughout their supply chains. Kesko’s partners must also ensure that
subcontractors and providers of goods or services follow the same principles and standards
laid out in the K Code of Conduct for business partners.
Key internal stakeholders have participated in the formation of the sustainability policy and
the K Code of Conduct. The most current versions of the policies are publicly available on
Kesko’s website.

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Actions (E1-3)
Reducing GHG emissions in own operations
The most significant measures to support decarbonisation in Kesko’s own operations are the
electrification of logistics, switch to biofuels, phase-out of oil and gas heating, improving
energy efficiency, and increased use of renewable energy. These measures support Kesko’s
target to reduce absolute scope 1 and 2 GHG emissions by 58.8% by 2034 from the 2024
base year.
Electrification of logistics and transition to biofuels
The most significant emission source in Kesko’s own operations is the consumption of fossil
fuels in transportation and logistics operations. Emissions from fossil fuel use are expected
to decrease as logistics is increasingly electrified and the use of biofuels increases. We
estimate that around 30% of logistics transport will use alternatives to fossil fuels by 2030,
and approximately 40% by 2034.
At the end of 2025, Kesko had a total of 34 electric vehicles in operation, with an additional
six vehicles expected to be deployed at the beginning of 2026 due to delays in
commissioning. In addition, Kesko had a total of 23 gas-powered vehicles in operation at the
end of 2025. The emission reduction achieved through the increase in electric and gas-
powered vehicles during the year was approximately 2,400 tonnes. The emission reduction
expected to be achieved through fleet changes by the end of 2034 is approximately 25,000
tonnes.
Use of renewable energy
Kesko uses renewable and emission-free electricity in Finland, Sweden and Norway. During
2025, the Danish operations transitioned to using emission-free electricity in the operations
of Davidsen Koncernen A/S. In addition, in Norway and Sweden, all electricity consumption
has been entirely renewable and emission-free since the beginning of 2025.
For businesses acquired in Denmark in 2025, the switch to emission-free electricity will occur
from the start of 2026. After this, electricity-related emissions will come from electricity
purchased for properties in the Baltics and Poland. For purchased electricity in Poland, the
plan is to switch largely to renewable or emission-free electricity in 2026.
The measures implemented reduced Kesko’s electricity consumption-related emissions by
approximately 3,800 tonnes.
In 2025, 97% of the purchased electricity consumed by Kesko was produced using renewable
energy sources and 1% using emission-free nuclear power. The exact origin of the remaining
portion cannot be determined.
Transition plan to reduce scope 1 and 2 emissions between 2025–2034

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Improving energy efficiency
Improving energy efficiency in properties and retail sites owned or leased by Kesko is a key
measure for reducing emissions from its own operations. The most significant energy
efficiency action is the installation of energy recycling systems that utilise waste heat from
store refrigeration systems, which reduces district heating consumption in these properties
by an average of up to 50% compared to the consumption level before. In addition, energy
savings are achieved by optimising setpoints and making use of analytics services to analyse
energy consumption.
During 2025, we implemented energy efficiency measures totalling approximately 17.6 GWh.
The most notable actions included installing energy recycling systems that utilise waste heat
in nine properties, which is estimated to have reduced district heating consumption in these
properties by around 3.5 GWh. In total, we carried out about 730 energy efficiency
improvement measures recorded in our information system during 2025.
The emission reduction expected from energy efficiency measures implemented in 2025 is
approximately 900 tonnes, representing the measures’ calculated annual emission reduction.
Emissions related to district heating consumption are assumed to decrease by a total of 60%
by the end of 2034, of which around 25 percentage points are estimated to result from own
actions and approximately 35 percentage points due to the green transition in heat
production.
Transitioning away from oil and gas heating
During 2025, Kesko had a total of 81 properties using fossil fuels for heating. Most of these
properties are located in Poland and the Baltic countries. Kesko's target is to replace the
heating solutions with zero-emission alternatives or district heating by 2029. The Group
uses some 1,600 owned or leased retail, logistics and office properties.
In 2025, we replaced the heating system in five oil- or gas-heated properties with district
heating or a heat pump solution. In addition, due to changes in the site network, a total of 18
oil-heated properties were removed from Kesko's network, which also contributed to
reducing emissions. The emission reduction achieved in 2025 was approximately 1,400
tonnes. The planned emission reduction by the end of 2034 is 1,300 tonnes.
Refrigerant leakages
To reduce emissions caused by refrigerant leakages, we will renew our refrigeration systems
to use natural refrigerants by 2030, in accordance with the requirements of the F-gas
Regulation. After 2030, refrigerant leakages will no longer lead to significant GHG
emissions. The anticipated total emission reduction is approximately 4,000 tonnes by the
end of 2030.
Reducing emissions in the value chain
Over 99% of Kesko's GHG emissions are generated within the value chain (scope 3).
Reducing these emissions primarily requires collaboration with supply chain partners, as the
value chain emissions originate from the activities of Kesko’s suppliers and service providers.
Since the beginning of 2021, Kesko has encouraged suppliers to set science-based emission
reduction targets for their own operations, and cooperation with goods and service providers
will play an increasingly important role in achieving Kesko’s climate targets in the future.
In addition to collaboration with actors in the supply chain, key areas for development in
reducing emissions across Kesko’s value chain include ensuring and improving data accuracy
as well as developing emission calculations so that we can monitor emission trends more
precisely.
The new Construction Act, which entered into force at the beginning of 2025, requires that
from 1 January 2026, large new buildings must be designed and constructed to be low-
carbon. The project developer must present a climate report at the final inspection, which
includes calculations for the building’s carbon footprint and carbon handprint. This obligation
requires precise, project-specific emissions data, potentially down to the product level.
To meet these requirements, Kesko has developed the reporting of emissions data for its
building and technical trade selections. Providing product-specific emissions data supports
customers’ statutory obligations and improves the accuracy of value chain emissions
(scope 3, category 1) reported in Kesko’s sustainability statement for purchased products in
the building and technical trade.

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Investments and financing related to the action plans
Investments aimed at reducing GHG emissions are related to the electrification of logistics
fleet, improving energy efficiency in properties, and replacing oil and gas heating with
alternative heating solutions.
Energy efficiency investments are made as part of the maintenance of properties, which
means the investment relates both to the maintenance needs of the property and to the
reduction of emissions in the properties as the property's energy efficiency improves.
Expected investment needs for the electrification of logistics fleet are particularly related to
investments in charging infrastructure for heavy-duty vehicles.
The investments required for measures to reduce emissions from Kesko’s own operations are
not expected to constitute a significant share of the Group’s total investments. Investment
decisions and their implementation form part of the annual strategy work and annual
planning process.
Kesko has not identified any climate change-related capital expenditure or climate change-
driven impairments of assets that could have a material impact on Kesko’s financial position
at the reporting date.
Kesko has a €300 million unsecured senior green bond issued under the Green Finance
Framework, the proceeds of which have been used to finance capital expenditure meeting
the framework criteria. At the end of 2025, the interest margins of two bilateral loans,
totalling €200 million, incorporated sustainability‑linked targets relating to the reduction of
greenhouse gas emissions and food waste. For the four bilateral loans amounting to €600
million refinanced during 2025, the sustainability‑linked targets will be negotiated once the
new climate targets have been approved by the Science Based Targets initiative.
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 would mean that improvements to the properties would result in at least a
30% reduction in primary energy demand. For the logistics fleet, the vehicles would need to
be zero-emission vehicles.
Kesko’s principle is that new properties are constructed in accordance with the technical
screening criteria set out in the Taxonomy Regulation. In 2025, Kesko had 20 (9)
construction projects underway in Finland, in which properties are being built in accordance
with the technical screening criteria of the Taxonomy. All new construction projects ongoing
in 2025 do not meet the Taxonomy criteria, as the planning and construction decisions were
made before the technical screening criteria were published and adopted at Kesko.
Targets and progress towards targets (E1-4)
Update of climate targets
During 2025, Kesko set new, updated climate targets. The targets were approved by Kesko’s
Board of Directors in October 2025. Kesko received confirmation that the SBTi validation
process had concluded and the targets had been accepted after the reporting period ended,
in January 2026.
Kesko’s climate targets are set in line with the SBTi criteria and are consistent with limiting
global warming to 1.5°C in line with the Paris Agreement. The SBTi requires that near-term
targets for scope 1 and 2 are set at the 1.5°C level and scope 3 targets at least at the “well
below 2°C” level. The minimum level for long-term targets is 1.5°C. Kesko’s near-term
emission reduction targets for scope 1 and 2 comply with the 1.5°C level, and the scope 3
target has been set at the “well below 2°C” level. The updated targets include near-term
targets for energy and industrial emissions as well as FLAG emissions extending to 2034, and
long-term targets extending to 2050. Additionally, Kesko has set a net-zero target for 2050.
In the 2024 sustainability statement, Kesko reported that Kesko had set scope 1 and 2
climate targets extending to 2034. As part of the SBTi target validation process, the targets
were updated to align with SBTi target criteria. In 2024, we reported a target to reduce GHG
emissions from Kesko’s own operations by 50% by 2034 compared with the 2024 base year.
The new target is to reduce the corresponding scope 1 and 2 GHG emissions by 58.8% by
2034 compared with the 2024 base year.

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The 2025 update of targets follows the SBTi criteria, which require setting a target for land-
use related FLAG (Forest, Land, and Agriculture) emissions if at least 20% of the company’s
total emissions are from this source. FLAG emissions arise from forestry, land use, and
agriculture. In Kesko’s value chain, these emissions originate primarily from the primary
production of food products.
The table provides a summary of Kesko’s climate targets and commitments validated by the
SBTi in January 2026. In addition to these targets, Kesko also has targets related to engaging
suppliers of goods and services and an energy efficiency target, which are not included in the
set of targets validated by the SBTi.
Kesko’s climate targets and commitments validated by the SBTi

Time frame | Target
Near-term | Kesko Corporation commits to reduce absolute scope 1 and 2 GHG emissions 58.8% by 2034 from a 2024 base year.
Kesko Corporation also commits to reduce absolute scope 3 GHG emissions from purchased goods and services and use of sold products 35.0% by 2034 from a 2024 base year.
Kesko Corporation commits to reduce absolute scope 1 FLAG GHG emissions 42.4% by 2034 from a 2024 base year.
Kesko Corporation also commits to reduce absolute scope 3 FLAG GHG emissions 42.4% by 2034 from a 2024 base year.
Long-term | Kesko Corporation commits to reduce absolute scope 1, 2 and 3 GHG emissions 90.0% by 2050 from a 2024 base year.
Kesko Corporation commits to reduce absolute scope 1 and 3 FLAG GHG emissions 72.0% by 2050 from a 2024 base year.
Net-zero | Kesko Corporation commits to achieve net-zero greenhouse gas emissions across the value chain by 2050.

Kesko has prepared a transition plan for reducing scope 1 and 2 GHG emissions in
accordance with the set near-term climate target. The emission reduction actions taken are
described in the section Actions (E1-3). For other targets, Kesko had not prepared a
transition plan or defined decarbonisation measures by the end of the reporting period. The
transition plan is described in the section Transition plan for climate change mitigation (E1-1).
In 2025, Kesko recalculated the base year for its climate targets and presents the restated
2024 base year figures. A reconciliation between the previously published 2024 figures and
the restated 2024 base-year figures is provided in Greenhouse gas emissions (E1-6). In the
recalculation, the coverage of emissions data was improved by adding previously missing
information and correcting errors identified after the completion of the 2024 sustainability
statement. These corrections affected all emission categories. More detailed information on
the recalculation is provided in the sustainability statement section Basis for preparation,
Changes in preparation and presentation of sustainability information.
According to the Greenhouse Gas Protocol calculation standard, recalculating base year
emissions is necessary when significant structural changes occur that materially impact
emissions or the scope of the emissions inventory. Such situations include, for example,
corporate restructuring, changes in calculation methodology, or improved data accuracy that
significantly alter base year emissions. The purpose of the recalculation is to ensure
comparability and consistency in monitoring targets over the years.

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Progress towards targets

|  |  |  |  | Target
| Base year | 2025 | % | Year | Value | %
Near-term climate targets |  |  |  |  |  |  |
Scope 1 and 2 GHG emissions, market-based, tCO 2 eq (1 | 2024 | 91,135 | 74,204 | -19 | 2034 | 37,548 | -59
Scope 3 GHG emissions, purchased goods and services and use of sold products, tCO 2 eq (1 | 2024 | 6,941,006 | 7,768,187 | +12 | 2034 | 4,511,654 | -35
Scope 1 FLAG emissions, tCO 2 eq (1 | 2024 | 2,696 | 2,542 | -6 | 2034 | 1,553 | -42
Scope 3 FLAG emissions, tCO 2 eq (1 | 2024 | 3,323,927 | 3,188,670 | -4 | 2034 | 1,914,582 | -42
Suppliers and service providers set science-based emission targets, % | 2024 | 47 | 47 | - | 2026 | 67 | -
Long-term climate targets |  |  |  |  |  |  |
Scope 1, 2 and 3 GHG emissions, market-based, tCO 2 eq (1 | 2024 | 7,362,415 | 8,155,224 | +11 | 2050 | 736,241 | -90
Scope 1 and 3 FLAG emissions, tCO 2 eq (1 | 2024 | 3,326,623 | 3,191,212 | -4 | 2050 | 931,454 | -72
Energy |  |  |  |  |  |  |
Energy efficiency measures, GWh | 2024 | - | 38.5 | - | 2030 | 95.0 | -
1) Science Based Targets initiative validated Kesko's climate targets in January 2026. |  |  |  |  |  |  |

Near-term climate targets
Kesko’s near-term climate targets include targets to reduce energy and industrial emissions
as well as FLAG emissions by 2034. The scope of the targets is based on the coverage
validated by SBTi, using 2024 as the base year for emissions.
Of Kesko’s own operations (scope 1 and 2), around 60% of the energy and industrial
emissions reduction target relates to scope 1 emissions and about 40% to scope 2 emissions.
Kesko’s near-term target for energy and industrial emissions in the value chain (scope 3)
includes the emissions categories purchased goods and services (category 1) and the use of
sold products (category 11). These categories cover 95% of the scope 3 emissions in the base
year 2024.
In addition to climate targets extending to 2034, Kesko presents an interim target for 2030 in
accordance with ESRS.
By the end of 2025, Kesko had achieved a 19% reduction in energy and industrial emissions
(scope 1 and 2) in its own operations compared to the base year 2024. The actions taken by
Kesko in 2025 to reduce emissions are described in the section Actions (E1-3).
By the end of 2025, energy and industrial emissions in the value chain (scope 3) had
increased by 12%, while FLAG emissions had decreased by 4%. Kesko had not developed a
transition plan to reduce the specified emission categories by the end of 2025. Information
about the transition plan is provided in section (E1-1).
Kesko targets that 67% of its suppliers and service providers will have set science‑based
emission reduction targets by the end of 2026. The original base year, 2020, was updated to
2024 following revised calculations to align with Kesko’s other climate targets. In 2024, 47%
of suppliers had set science‑based targets, and the share remained 47% in 2025. This target
is not included in the climate targets validated by the SBTi in January 2026.
Information on suppliers’ emission reduction targets is collected from the SBTi target
dashboard and Kesko’s CDP Climate Change responses. The percentage is calculated by
comparing Kesko’s annual purchases from suppliers and service providers with the total
purchases included in emission accounting. These include purchases of goods and services,
covering IT, marketing, real estate services, and other operating expenses. The percentage is
based on purchases from the previous financial year.

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Long-term climate targets
Kesko’s long-term climate targets include targets to reduce energy and industrial emissions
as well as FLAG emissions by 2050.
The long-term target for energy and industrial emissions includes the most significant
emission categories for Kesko’s own operations and resulting emissions: Purchased goods
and services (category 1), Capital goods (category 2), Upstream transportation and
distribution (category 4), Use of sold products (category 11), End-of-life treatment of sold
products (category 12), and K-retailers (franchising, category 14). Approximately 99% of the
total base year 2024 emissions under the energy and industrial emissions target are value
chain emissions. The majority of the long-term energy and industrial emission reduction
target is focused on value chain (scope 3) emissions.
The target for value chain (scope 3) FLAG emissions includes only emissions from food
products, which cover 99% of scope 3 FLAG emissions in the base year 2024.
In addition, Kesko has set a net-zero target for the entire value chain, in accordance with
SBTi criteria, extending to 2050. The SBTi net-zero standard requires that emissions across
the value chain are reduced to zero or to a residual level consistent with the 1.5 °C target.
From the target year onwards, any residual emissions must be neutralised through
permanent carbon removals.
Energy efficiency target
Kesko’s energy strategy aims to improve energy efficiency by 10% between 2024 and 2030.
The realised energy efficiency measures and their energy saving impacts are monitored
based on measures recorded in Kesko’s information system, together with the electricity and
heat savings reported for each measure. To achieve the target, Kesko must implement
energy efficiency actions totalling 95 GWh.
By the end of 2025, Kesko had implemented energy efficiency measures totalling 38.5 GWh
from the 2024 base year. Energy efficiency measures implemented in 2025 amounted to
17.6 GWh (20.9 GWh).

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Metrics
Energy consumption and mix (E1-5)
Energy consumption

MWh | 2025 | 2024
Energy consumption from non-renewable sources | 265,889 | 310,960
Share of fossil sources in total energy consumption, % | 36 | 40
Fuel consumption from coal and coal products | - | -
Fuel consumption from crude oil and petroleum products | 176,606 | 192,424
Fuel consumption from natural gas | 6,524 | 6,098
Fuel consumption from other fossil sources | 1,653 | 1,853
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources | 81,107 | 110,585
Energy consumption from nuclear sources | 5,186 | 305,500
Share of consumption from nuclear sources in total energy consumption, % | 1 | 39
Energy consumption from renewable sources | 457,785 | 160,695
Share of renewable sources in total energy consumption, % | 63 | 21
Fuel consumption for renewable sources | 17,531 | 3,327
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources | 431,475 | 148,341
The consumption of self-generated non-fuel renewable energy | 8,780 | 9,027
Total energy consumption | 728,861 | 777,155

Energy intensity

MWh / Net sales, € million | 2025 | 2024
Energy intensity from activities in high climate impact sectors based on net sales | 58 | 65

Accounting policies
Energy consumption data are based on purchased energy, self‑generated heating and
electricity, and the calculated energy consumption of transportation, logistics and company
cars, by energy source and fuel type. The data cover properties owned and controlled by
Kesko, across all divisions and operating countries.
Purchased energy data for properties are based on metered consumption and maintained in
an operational information system. Energy managers monitor consumption and make
corrections when necessary, based on error alerts. For some sites, consumption is based on
invoices. For properties without metered data, consumption is estimated primarily based on
floor area, and secondarily on estimated area. 5% of purchased electricity and 6% of district
heating are calculated based on estimated consumption.
Oil and gas consumption includes properties where the heating system used oil or gas fully
or partially during the reporting period.
Estimated energy consumption for transport and logistics operations is primarily based on
fuel consumption.
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 generated from the leasing business
represent only a minor portion of the Group's total reported net sales. The energy
consumption of the leasing business cannot be separated from other energy consumption.
Energy intensity is calculated by dividing total energy consumption by the amount of net
sales reported in the consolidated financial statements.
The comparative year figures have been restated due to refinements in the calculation.
Further details on the restatement are provided in the sustainability statement section Basis
for preparation, Changes in preparation and presentation of sustainability information.

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Greenhouse gas emissions (E1-6)
Kesko’s GHG emissions consist of energy and industrial emissions as well as FLAG (Forest,
Land and Agriculture) emissions. These emissions are divided into scope 1 (direct emissions
from Kesko’s own operations), scope 2 (indirect GHG emissions from purchased energy),
and scope 3 (indirect GHG emissions from the value chain).
Kesko’s own operational emissions (scope 1 and 2)
Energy and industrial emissions from Kesko’s own operations in scope 1 include emissions
from fuels consumed by transport, logistics operations, and company cars, emissions from
fuels used for self-produced heating, and emissions arising from refrigerant leakages.
Scope 2 emissions cover Kesko’s purchased energy, i.e., emissions from purchased
11.3
million
tCO 2 eq
electricity, district heating, and district cooling.
Kesko’s energy and industrial emissions from its own operations (scope 1 and 2, market-
based) totalled 74,204 tCO 2 eq. The share of Kesko’s own operations in energy and industrial
emissions is less than 1%.
Kesko’s FLAG emissions from its own operations (scope 1) are generated from land use
changes on land owned by Kesko, for example, converting forest or other natural land to
developed land.
Value chain emissions (scope 3)
Energy and industrial emissions in the value chain (scope 3) mainly arise from the production
of products and services purchased by Kesko (category 1) and from the use of sold products
(category 11).
FLAG emissions in the value chain (scope 3) mainly originate in the primary production of
food products.
We have calculated Kesko’s own operational and value chain FLAG emissions for the first
time for 2024, and starting from 2025, FLAG emissions will be presented separately as part
of the total GHG emissions in the sustainability statement.
Breakdown of GHG emissions
Other value
chain emissions
4%
Scope 3
categories
2, 4, 12 and 14
Kesko’s own
operations
1%
Scope 1 and 2
Use of sold
products
16%
Scope 3
category 11
Scope 1 and 3
FLAG
emissions
3.2
million tCO 2 eq
8.2
million tCO 2 eq
Scope 1, 2 and 3
energy and
industrial
emissions
8.2
million tCO 2 eq
Purchased goods
and services
79%
Scope 3 category 1

|  | 65

Bridge calculation for scope 1, 2 and 3 GHG emissions

| Reported | Restated |
tCO 2 eq | 2024 | 2024 | %
Scope 1 GHG Emissions |  |  |
Gross scope 1 GHG emissions | 56,637 | 59,750 | +5
Scope 2 GHG Emissions |  |  |
Gross location-based scope 2 GHG emissions | 42,950 | 43,167 | +1
Gross market-based scope 2 GHG emissions | 27,939 | 31,385 | +12
Significant scope 3 GHG emissions |  |  |
Total gross indirect scope 3 GHG emissions | 7,122,142 | 7,271,280 | +2
1 Purchased goods and services | 6,108,778 | 5,844,593 | -4
2 Capital goods | 144,096 | 88,735 | -38
3 Fuel and energy-related activities that are not included in scope 1 or scope 2 GHG emissions | 8,372 | - | -
4 Upstream transportation and distribution | 90,076 | 87,055 | -3
5 Waste generated in operations | 9,488 | - | -
6 Business travelling | 1,774 | - | -
7 Employee commuting | 9,140 | - | -
9 Downstream transportation | 87,713 | - | -
11 Use of sold products | 505,950 | 1,096,413 | +117
12 End-of-life treatment of sold products | 126,873 | 124,791 | -2
14 K-retailers (Franchising) | 29,881 | 29,692 | -1
Total GHG emissions |  |  |
Total GHG emissions, location-based | 7,221,729 | 7,374,196 | +2
Total GHG emissions, market-based | 7,206,718 | 7,362,415 | +2

Kesko has recalculated the comparative data for 2024, which is also the base year for the
new climate targets. The bridge calculation for scope 1, 2 and 3 GHG emissions presents
both the information published in the 2024 sustainability statement and the newly
recalculated comparative data for 2024. More detailed information about the recalculation
can be found in the sustainability statement section Basis for preparation, Changes in
preparation and presentation of sustainability information.
According to ESRS, the company reports scope 3 GHG emissions for each significant
scope 3 category. As part of the recalculation of GHG emissions, Kesko has identified the
most significant scope 3 emission categories from its perspective. The combined share of
categories excluded from reporting is less than 1% of the total scope 3 energy and industrial
emissions, based on the 2024 emissions inventory assessment.
Categories that are excluded but were previously reported include category 3 Fuel and
energy-related activities that are not included in scope 1 or scope 2, category 5 Waste
generated in operations, category 6 Business travelling, category 7 Employee commuting,
and category 9 Downstream transportation.
Kesko has not previously reported scope 3 categories 8 Upstream leased assets,
10 Processing of sold products, 13 Downstream leased assets, or 15 Investments.
Scope 1 and 2 energy and industrial emissions by emission sources

tCO 2 eq | 2025 | 2024
Direct scope 1 GHG emissions | 55,237 | 59,750
Transportation, logistics and company cars | 47,130 | 51,086
Self-produced heat | 1,925 | 3,410
Refrigerant leakages | 6,182 | 5,254
Indirect scope 2 GHG emissions |  |
Location-based | 34,721 | 43,167
Purchased electricity | 13,270 | 13,230
District heat | 21,451 | 29,937
District cooling | - | -
Market-based | 18,967 | 31,385
Purchased electricity | 3,977 | 8,126
District heat | 14,990 | 23,260
District cooling | - | -

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Gross scopes 1, 2, 3 and total GHG emissions

| Retrospective | Interim target and target years
| Restated |  | Restated |  | Interim target | Target year | Target year |
tCO 2 eq | Base year 2024 | 2025 | 2024 | Change, % | 2030 | 2034 | 2050 | Average annual emission reduction, %
Scope 1 GHG Emissions |  |  |  |  |  |  |  |
Gross scope 1 GHG emissions | 59,750 | 55,237 | 59,750 | -8 | - | - | - | -
Percentage of scope 1 GHG emissions from regulated emission trading scheme, % | - | - | - | - | - | - | - | -
Scope 2 GHG Emissions |  |  |  |  |  |  |  |
Gross location-based scope 2 GHG emissions | 43,167 | 34,721 | 43,167 | -20 | - | - | - | -
Gross market-based scope 2 GHG emissions | 31,385 | 18,967 | 31,385 | -40 | - | - | - | -
Total gross scope 1 and 2 emissions, market-based | 91,135 | 74,204 | 91,135 | -19 | 58,983 | 37,548 | - | -5.88
Significant scope 3 GHG emissions |  |  |  |  |  |  |  |
Total gross indirect scope 3 GHG emissions (1 | 7,271,280 | 8,081,021 | 7,271,280 | +11 | 5,681,559 | 4,841,928 | - | -3.50
1 Purchased goods and services | 5,844,593 | 6,481,456 | 5,844,593 | +11 | - | - | - | -
2 Capital goods | 88,735 | 144,227 | 88,735 | +63 | - | - | - | -
4 Upstream transportation and distribution | 87,055 | 96,507 | 87,055 | +11 | - | - | - | -
11 Use of sold products | 1,096,413 | 1,286,731 | 1,096,413 | +17 | - | - | - | -
12 End-of-life treatment of sold products | 124,791 | 43,977 | 124,791 | -65 | - | - | - | -
14 K-retailers (Franchising) | 29,692 | 28,122 | 29,692 | -5 |  |  |  |
Total GHG emissions (scope 1, 2 and 3) |  |  |  |  |  |  |  |
Total GHG emissions, location-based | 7,374,196 | 8,170,978 | 7,374,196 | +11 | - | - | - | -
Total GHG emissions, market-based | 7,362,415 | 8,155,224 | 7,362,415 | +11 | 5,740,541 | - | 736,241 | -3.46
Scope 1 FLAG emissions |  |  |  |  |  |  |  |
FLAG scope 1 emissions | 2,696 | 2,542 | 2,696 | -6 | 2,010 | 1,553 | - | -4.24
Scope 3 FLAG emissions |  |  |  |  |  |  |  |
FLAG scope 3 emissions | 3,323,927 | 3,188,670 | 3,323,927 | -4 | 2,478,320 | 1,914,582 | - | -4.24
Total gross FLAG emissions | 3,326,623 | 3,191,212 | 3,326,623 | -4 | 2,480,330 | - | 931,454 | -2.77
Total GHG emissions (scope 1, 2, 3 and FLAG) |  |  |  |  |  |  |  |
Total GHG emissions, location-based | 10,700,819 | 11,362,190 | 10,700,819 | +6 | - | - | - | -
Total GHG emissions, market-based | 10,689,037 | 11,346,436 | 10,689,037 | +6 | - | - | - | -
1) Near-term target includes scope 3 category 1 Purchased goods and services and category 11 Use of sold products.

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GHG intensity

tCO 2 eq / Net sales, € million | 2025 | 2024
Total gross scope 1, 2 and 3 emissions |  |
GHG emission intensity per net sales, location-based | 655 | 619
GHG emission intensity per net sales, market-based | 654 | 618
Total gross scope 1, 2 and 3 and FLAG emissions |  |
GHG emission intensity per net sales, location-based | 911 | 898
GHG emission intensity per net sales, market-based | 910 | 897

Biogenic emissions
Kesko has calculated its biogenic emissions for the first time for the year 2025. Biogenic
emissions have also been calculated retrospectively for the base year 2024. The majority of
Kesko’s biogenic emissions arise from the use of biofuels in its operations.
According to the Greenhouse Gas Protocol calculation standard, biogenic emissions are so-
called out-of-scope emissions, which are reported separately from other GHG emissions.
Biogenic emissions

tCO 2 eq | 2025 | 2024
Scope 1 biogenic emissions | 4,993 | 3,976
Scope 2 biogenic emissions, market-based | 33,304 | 40,643
Scope 3 biogenic emissions (1 | 245,315 | 228,518
1) Includes biogenic emissions of categories 4, 11 ja 14. |  |

Accounting policies
Kesko follows the Greenhouse Gas Protocol standards: Corporate Accounting and
Reporting Standard, Corporate Value Chain (scope 3) Accounting and Reporting Standard,
and Land Sector and Removals Guidance (draft version, September 2022).
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.
Emission calculation data are collected from Kesko’s internal systems, external service
providers, and in some cases directly from partners. The data period primarily follows the
sustainability statement period, but due to data delays, some data represent the most
recent rolling 12‑month period or the available months of 2025 extrapolated to cover the
reporting period. For energy and industrial emissions (market‑based), less than 1% of data is
calculated using a non‑calendar period.
Scope 3 energy and industrial emissions, FLAG emissions, and biogenic emissions include
significant estimates and assumptions, and therefore involve high uncertainty. Results
should be interpreted as high‑level estimates of actual climate impacts.
Kesko reports its emissions in carbon dioxide equivalents (tCO 2 eq) in accordance with the
Greenhouse Gas Protocol accounting standard. CO 2 eq is a universal unit of measurement
used to describe the global warming potential (GWP) of the greenhouse gases listed in the
Kyoto Protocol, expressed as the GWP value of a single unit of CO 2.
Energy and industrial emissions
Scope 1
Transportation emissions in Finland are calculated using vehicle‑type specific average fuel
consumption and mileage. For logistics operations in Finland, customer test drives and
replacement cars in car trade, and transportation and logistics operations of other
operating countries emissions are calculates based on fuel consumption. Company car
emissions are primarily based on fuel consumption. For benefit cars in Finland, calculation is
based on mileage and average consumption.

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The emissions from self-generated heat have been calculated based on fuel consumption or
the amount of energy produced with fuel.
Emissions from refrigerant leakages include leakages from refrigeration equipment,
property refrigeration systems, and temperature-controlled logistics equipment. The
emission calculation of refrigeration equipment leakages is based on the measured
quantities of refrigerant refilled. For property refrigeration systems, leakage amounts are
based on the measured refill quantities from individual properties, from which average
leakage amounts for all properties have been calculated based on floor area. The volume of
refrigerant leakages from temperature-controlled logistics equipment is determined based
on the number of units, an assumption regarding the most likely refrigerant, and average
leakage amounts based on research data.
The most significant data sources used for emission factors and other data in scope 1
emission calculations are, for fuels: Statistics Finland’s Fuel Classification 2025 and the
Department for Energy Security & Net Zero: Greenhouse gas reporting: conversion factors
2025, and for refrigerants: SFS-EN 378-1:2016 + A1:2020 standard.
Scope 2
Both location-based and market-based GHG emissions are calculated for purchased
energy.
Location-based emissions from purchased electricity are calculated using national average
emission factors. Market-based emissions are calculated based on the energy contracts
used by Kesko and the Guarantees of Origin acquired. The share of purchased electricity
covered by Guarantees of Origin is calculated as zero emissions. Other market-based
purchased electricity is calculated using the national residual mix emission factors.
The location-based emissions of district heating are calculated for Finland, Sweden, and
Denmark using national average factors. For other operating countries, the emission factors
are based on the production mix of district heating, using a calculated emission factor.
Market-based emissions for district heating are calculated only for Finland. For emissions
calculations, the emission calculator for district heating, maintained by Finnish Energy, is
utilised, providing location-specific emission factors for district heating consumption. The
calculation applies factors derived from the energy method.
Of the purchased electricity consumed by Kesko, 97% (i.e. 330,011 MWh) is covered by
Guarantees of Origin for renewable energy, and 1% (i.e. 4,521 MWh) by Guarantees of
Origin for nuclear energy. The share of consumption covered by Guarantees of Origin is
calculated as zero for market-based emissions, resulting in a 0% share of market-based
electricity consumption emissions.
The market-based emission share of district heating consumed by Kesko is 95% (i.e. 14,219
MWh).
No emissions are generated from the consumption of district cooling, as the production of
district cooling is based on renewable energy sources.
The most significant sources of data used for emission factors and other data in scope 2
emission calculations are the electricity and heat production statistics of Statistics Finland,
the district heating emission calculator of Finnish Energy, AIB’s European Residual Mix
2024, energy statistics from The International Energy Agency (IEA), Nowtricity, and
Ecoinvent 3.12.
Scope 3
Kesko's value chain energy and industrial emissions are reported for the most significant
emission categories, which are categories 1, 2, 4, 11, 12, and 14. Together, these categories
accounted for over 99% of Kesko's scope 3 energy and industrial emissions based on the
base year 2024 emissions inventory. Categories 3, 5, 6, 7, 9, 13, and 15 are excluded from
the calculation. The total emissions of these categories in the base year 2024 were less than
1%, and it can be assumed that they will be at a similar level in 2025 as well. Kesko has no
emissions in categories 8 and 10.
94% of Kesko's scope 3 emissions have been calculated based on activity data, and 4%
based on supplier-specific (primary) data.

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The most significant sources of data used for emission factors and other data in scope 2
emission calculations are the Natural Resources Institute Finland emission estimates for
food products, Ecoinvent 3.11, the Finnish Environment Institute’s CO2data service, the U.S.
Environmental Protection Agency, Statistics Finland’s Fuel Classification 2025, the
Department for Energy Security & Net Zero: Greenhouse gas reporting: conversion factors
2025, and the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.
Category 1 – Purchased goods and services: The emission calculation for grocery trade is
based on the weights of sold products.
For the building and technical trade, the calculation is based on the weights of purchased
products, and for products where weight information is not available, on the purchase value
in euros.
In the car trade, the calculation is based on the number of sold cars. Emissions are
calculated only for new cars, as we assume that the manufacturing emissions of used cars
have already been accounted for by the car's first registrant. The emission factors are based
on segment-specific emission factors provided by the supplier, determined by the vehicle's
assembly and power source. In addition, the car trade’s calculation includes spare parts
based on sales euros, tires based on weight, and oils used in maintenance operations, as
well as purchased products in sports trade based on the number of items.
The emission calculation for services is based on the amount of expenditure recorded for
service procurement. Some of the emission factors used are based on coefficients reported
by service providers, and the calculated average of these is used for estimating emissions
for all similar services.
Emissions from the production of clean water consumed by Kesko are calculated based on
measured consumption. In Finland, 77% of the total area is included in the consumption
data, and in other operating countries, slightly more than half of the properties by number
are included. The calculation does not account for missing consumption, as its impact on
emissions is considered negligible. For all operating countries, the emission calculation is
based on the emission factor for clean water production provided by the Helsinki Region
Environmental Services Authority.
Category 2 –Capital goods: The calculation includes emissions from new buildings owned
by Kesko that were completed during the reporting period. The emissions consider the
building’s lifecycle stages A1–A5. The emissions are mainly based on climate assessments
carried out for the respective construction project. For two sites, the calculation uses
estimated average emissions from climate assessments between 2023 and 2025.
The emissions calculation for tangible assets is based on the amount of investment
recorded for the acquisitions.
The manufacturing emissions of K-Auto leasing vehicle investments are calculated based on
the number of new leased vehicles purchased during the reporting period. The emission
factors are based on segment-specific emission factors provided by the supplier,
determined by the vehicle's assembly and power source.
Category 4 – Upstream transportation and distribution: Logistics emissions in the grocery
trade and the building and technical trade are determined using the weight of transported
goods and an emission factor calculated specific to the corresponding flow of goods and
total weight for the year 2024. Some transports within building and technical trade are
calculated based on tonne-kilometres derived from the mode of transport and route
information. The calculation method is based on the ISO 14083:2023 standard and the
GLEC Framework V3.1.
The emissions from direct deliveries by the largest suppliers in the grocery trade and the car
trade, as well as postal service emissions in Finland, are mainly based on emission data
provided by suppliers. A small portion of direct deliveries in Finland and transportation
emissions in other operating countries, are calculated based on fuel consumption.
Emissions from external warehousing operations are primarily based on electricity and
heating consumption figures allocated to Kesko, or on consumption estimates based on
surface area. A small share of the resulting emissions has been obtained directly from
suppliers.
Emissions from refrigerant leakages in temperature-controlled transport and warehousing
operations have not been reported due to lack of data.

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Category 11 – Use of sold products: Product categories in the building and technical trade
that emit emissions during use have been identified. The use-phase emissions for these
product categories are calculated based on the share of use-phase emissions in the total life
cycle emissions, as found in environmental product declarations and research data.
The use-phase emissions of sold cars are calculated for new and leased cars based on the
assumed total life cycle mileage by power source. The use-phase emissions of leased cars
are included in Category 11 emissions, since vehicles are typically sold after the leasing
period, and thus the calculation is consistent with the use-phase emissions of other sold
cars. For used cars sold, the use-phase emissions are calculated according to the assumed
mileage remaining in their life cycle by power source. The calculation of emissions utilises
the public calculation tool provided by the Finnish Central Organization for Motor Trades
and Repairs. The use-phase emissions of sports products sold have not been calculated due
to lack of data.
The use-phase emissions of fuels sold by Kesko, such as charcoal, firewood, and lighter
gases, are calculated based on the weight of the products sold. Refuelling of sold cars is
calculated based on the amount of fuel.
Category 12 – End-of-life treatment of sold products: For the building and technical trade,
the calculation is based on the weights of purchased products, and for products where
weight information is not available, on the purchase value in euros and average, category-
specific end-of-life scenarios.
In the car trade, the calculation is based on the number of cars sold. The calculation of
emissions utilises the public calculation tool provided by the Finnish Central Organization
for Motor Trades and Repairs. For sports trade, emissions from the end-of-life treatment of
sold products have not been calculated due to lack of data.
For the grocery trade, emissions resulting from the end-of-life treatment of food waste are
determined by referencing the total national volume of food waste and Kesko's market
share. The calculation assumes that food waste ends up in anaerobic recycling.
For the grocery trade and the building and technical trade, emissions from the end-of-life
treatment of product packaging are calculated based on the weight of packaging materials.
The calculation assumes that the packaging is correctly sorted by material and that the
material is fully recycled. The calculation includes only Kesko's own brands, and there are
certain deficiencies in the data. The emissions share from the end-of-life treatment of
missing packaging cannot be reliably assessed.
Category 14 – K-retailers (Franchising): The emissions from the energy consumption of
properties rented and owned by independent K-retailers are calculated based on the floor
area or the estimated floor area. The specific consumption rates are assumed to be the
same as those used in Kesko’s own retail operations.
The emissions from the electricity supplied by Kesko to retailers are calculated for the
portion of electricity consumption that is not covered by guarantees of origin.
In properties managed by Kesko, where refrigeration equipment is the responsibility of the
retailers, the calculation of emissions from refrigerant leakages is based on the measured
amount of refrigerant refills. For refrigeration equipment in owned and rented properties of
retailers, the emissions are estimated based on the average, site-specific refrigerant
emissions.
FLAG emissions
Scope 1
The calculation is based on the land-use change area of the Onnela logistics center
construction project. The assessment utilized the Hiilikartta tool developed by the Natural
Resources Institute Finland and Avoin ry, designed for evaluating the climate impacts of
urban planning. According to the tool, the land-use change implemented in 2022 resulted in
a reduction of the area’s vegetation and soil carbon stock by a total of 30,808 tCO 2 eq. In
accordance with the Greenhouse Gas Protocol Land Sector and Removals Guidance (draft
version, September 2022), the emission from the land-use change is distributed using the
default 20-year assessment period from the year of occurrence. A linear discount approach
has been used for this distribution. The calculation for Kesko was performed by an external
calculation partner.
It is assumed that land-use changes, resulting in related emissions, have also occurred in
other construction projects by Kesko. Due to lack of data, these projects are not included in
the calculation, and the missing emissions cannot be reliably estimated.

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Scope 3
The calculation of FLAG emissions is based on the weight of products sold as well as the
origin countries of the products and their raw materials. For raw materials where the
country of origin is unknown, Kesko’s external calculation partner’s data system is used to
estimate the country of origin.
Reported emissions include only the emissions from food products of the grocery trade,
which, based on the 2024 base year calculation, cover approximately 99% of Kesko’s scope
3 FLAG emissions.
Biogenic emissions
Kesko’s scope 1 and 2 biogenic emissions arise from the use of biofuels in transportation,
logistics operations, company cars, as fuel for self-produced energy, and from the biofuel
share in purchased energy production.
The calculation of scope 3 biogenic emissions includes biogenic emissions from categories
4, 11, and 14. Biogenic emissions from categories 3, 6, 7, and 13 are excluded from
reporting, and categories 1, 2, 5, 9, 12, and 15 do not generate biogenic emissions.
The accounting policies for preparing biogenic emissions correspond to those used for
energy and industrial emissions.
GHG intensity
GHG intensity is calculated by dividing total GHG emissions by the net sales reported in
the consolidated financial statements. Intensity is calculated both for energy and industrial
emissions as well as for total GHG emissions, which include energy and industrial emissions
and FLAG emissions. For scope 3 energy and industrial emissions, the most significant
emission categories 1, 2, 4, 11, 12, and 14 are included.

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E5 RESOURCE USE
AND CIRCULAR
ECONOMY

Policies (E5-1) ................................................... | 73
Actions (E5-2) .................................................. | 73
Targets and progress towards targets (E5-3) ................................................................ | 59
Metrics .............................................................. | 76
Resource outflows (E5-5) ................................ | 76

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Resource outflows related to products and services: Packaging | Actual negative impact: The logistics chain of products includes several types of packaging, from logistics packaging to individual product retail packaging. | • Favouring renewable packaging materials. • In wood-based retail packages, favouring solutions of sustainable origins or recycled materials. • Increasing the use of packaging made from recycled plastic and cardboard. • Avoiding excessive use of packaging materials and controlled reduction of plastic use.
Waste | Actual negative impact: Waste is generated in Kesko’s operations, especially in warehouse operations, logistics and in own retail operations. | • Developing separate collection of waste. • Ensuring staff competence in waste sorting.
Food waste | Actual negative impact: Food waste is generated in Kesko’s warehouse operations, logistics and cash-and-carry outlets. | • Preventing waste through assortment management, forecasting and needs planning. • Utilising edible fruit and vegetable waste in waste-based products.
Food waste | Actual negative impact: Food waste is generated in K-food retailers’ store operations. | • Preventing waste through assortment management, forecasting and needs planning. • Discounted prices as the best before or use-by date approaches.

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Policies (E5-1)
In its sustainability policy, Kesko is committed to reducing food waste in its own operations
and in cooperation with stakeholders, such as independent K-food retailers operating
downstream in Kesko’s value chain. In addition, Kesko is committed to reducing the use of
packaging materials, especially plastics, and to promoting the recyclability of packaging
materials in its private label products. The principles of packaging for Kesko’s private label
products and logistics packaging are addressed in a separate packaging guideline.
Kesko’s sustainability policy does not include the waste hierarchy or prioritise avoiding or
minimising waste over recycling.
The sustainability policy covers the operations of Kesko Group. The policy has been
approved by Kesko’s Board of Directors, and its implementation is overseen by Executive
Vice President, Legal and Sustainability of Kesko Group, who is a member of the Group
Management Board.
At the end of 2025, Kesko’s Board of Directors approved an updated sustainability policy,
which will take effect on 1 January 2026. The revised sustainability policy takes into account
circular economy principles more broadly compared to the previous policy.
Kesko has a packaging guideline that covers retail packaging of Kesko’s private label
products and packaging used in own production or warehouses. In the packaging guideline,
Kesko is committed to favouring renewable packaging materials, and in wood-based retail
packaging, solutions with sustainable origins or recycled materials. In addition, the use of
packaging made from recycled plastic and cardboard is being increased, excess packaging
material is avoided, and the use of plastic is being reduced in a controlled manner.
The current packaging guideline was renewed in 2025 and it replaced previous separate
packaging and plastic guidelines. The revised guideline takes into account the entire lifecycle
of packaging, from the procurement of raw materials to disposal as waste.
The packaging guideline has been approved by the Group's sustainability management team.
Monitoring the principles of the guideline is the responsibility of the sustainable procurement
steering group in grocery trade, the commerce management team in building and technical
trade, and the sustainability steering group in car trade.
Key internal stakeholders have been involved in the creation of the sustainability policy and
the packaging guideline. The most current versions of the policies are publicly available on
Kesko’s website.
Actions (E5-2)
Kesko’s most important actions to promote circular economy principles are linked to
improving waste recycling rates and reducing the amount of food waste.
In 2025, Kesko and Koskisen Oyj piloted a solution in which wood packaging generated in
Kesko’s building and technical trade division was utilised as raw material for chipboard.
There has not previously been an industrial-scale recycling solution for wood waste in
Finland, and most of it has ended up being incinerated as mixed waste.
The piloting was carried out at Onninen’s central warehouse, where wood packaging such as
pallets and plastic pipe support frames that were being decommissioned were successfully
tested in chipboard production at Koskisen’s chipboard factory. Based on the results, the
operating model was adopted as a regular part of production during 2025. After regular
operations began at the end of 2025, a total of about 108 tonnes of wood packaging supplied
by Kesko were utilised as raw material for chipboard. Prior to this solution, the wood would
have ended up incinerated as mixed waste. The new operating model improves the recycling
rate of waste in the building and technical trade division in Finland.
Kesko has implemented a loss‑prevention model for non‑food products in all K‑Citymarket
stores. The primary aim is to prevent the creation of waste. Key actions include preventing
losses through efficient assortment planning, discount pricing and the use of outlet areas in
selected K-Citymarket stores. Unsold products are donated to charity, and disposal as waste
is used only as the final step. Based on the realised non‑food loss levels in 2025, more
detailed action plans will be developed, and store‑specific loss‑reduction targets will be set.

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Continuous actions to improve recycling rates include the development of separate
collection of waste. This increases the amount of waste that is diverted from disposal and
reduces the amount waste directed to disposal. The development of recycling rates is guided
by various recycling and collection equipment concepts, which define the waste fractions to
be collected and the collection equipment, as well as circular economy manager site visits to
optimise waste management. Effective sorting and improving recycling rates also depend on
staff sorting skills, which are continuously developed through training.
The most important ongoing actions for preventing food waste are the development of an
automatic ordering system and assortment management actions carried out in Kesko, K-food
stores and Kespro wholesalers, as well as price reductions as best before or use-by dates
approach.
In 2025, assortment management of waste-sensitive product groups, such as fruit,
vegetables and bread, was strengthened by system development, which allows more precise
and timely monitoring of product groups. In addition, at the beginning of the year, a centre of
excellence was established in the grocery trade division, in whose training activities for
stores, food waste is one of the significant focus areas, considering various perspectives such
as assortment, operating methods, pricing and displays.
Kesko renewed its packaging guideline in 2025. The new guideline replaced previous
separate packaging and plastic guidelines. The revised guideline considers the entire lifecycle
of packaging, from raw material procurement to disposal as waste.
Targets and progress towards targets (E5-3)
Kesko has set targets for improving the recycling rate of waste and reducing food waste in its
own operations and in the retail operations of K-food stores.

| Base year | 2025 | 2024 | Target
Waste recycling rate, % | 2024 | 67 | 66 | 67 | 2030 | 73
Food waste in Kesko’s warehousing and logistics operations, % | 2019 | 0.44 | 0.40 | 0.45 | 2030 | 0.22
Food waste in K-food retailers’ store operations, % | 2019 | 2.12 | 1.58 | 1.68 | 2030 | 1.06

Recycling rate of waste
Kesko aims to improve the recycling rate of waste by six percentage points by the end of
2030 compared to the baseline in 2024. The target is linked to the waste hierarchy level
‘recycling’. External stakeholders have not been involved in setting the target.
The target has been set voluntarily and is not science-based. Kesko aims to improve
recycling in line with the EU Waste Framework Directive and Finland’s Waste Act, which
require businesses to promote waste prevention, material efficiency, and recycling. The
target for increasing the recycling rate covers the waste generated in Kesko’s retail
operations as well as warehouse and logistics operations.
The recycling rate fell from the 2024 level and was 66% in 2025. In Finland, the recycling rate
of waste fell slightly compared to 2024. Finland’s share of the total amount of waste is 58%.
In Norway, the recycling rate fell the most in relative terms.
Progress towards the target is monitored at the division level, and monitoring is the
responsibility of each divisions’s sustainability steering group. The steering groups are tasked
with monitoring the development of the recycling rate, setting and guiding actions to
improve the recycling rate, and reporting progress to the Group sustainability management
team.

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Food waste
The grocery trade division of Kesko is committed to halving the food waste percentage by
the end of 2030 compared to the baseline in 2019. The halving target covers Kesko’s
warehouse and logistics operations that serve K-food stores and Kespro’s foodservice
customers, as well as the retail operations of independent K-food retailers. The target is
linked to the waste hierarchy level ‘prevention of waste generation’. External stakeholders
have not been involved in setting the targets.
Kesko reports on the target of reducing food waste in the retail operations of K-food
retailers, as this is one of the targets of Kesko’s grocery trade division and one of the metrics
for Kesko’s sustainability-linked loans. This target differs from Kesko’s other sustainability
targets because its progress depends on the operations of independent K‑retailers at the
downstream end of the value chain.
The target has been set voluntarily and is not science-based. In Finland, waste legislation
requires food industry operators to monitor food waste and food losses as part of the
national system managed by the Natural Resources Institute Finland. Kesko reports food
waste to the Natural Resources Institute. EU and national targets aim for a significant
reduction in food waste by 2030, and Kesko’s target is aligned with these objectives.
The food waste percentage of Kesko’s warehouse and logistics operations was 0.40% at the
end of 2025 and has decreased since 2024. Kesko’s warehouse and logistics operations
cover those serving K-food stores and Kespro’s foodservice customers. In the retail
operations of K-food retailers, the food waste percentage was 1.58% at the end of 2025 and
has also decreased since 2024. Progress towards the target is estimated to be on track.
The combined food waste percentage from logistics operations serving K-food retailers and
K-food stores was 1.74% (1.84%) in 2025. 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.
The food waste management steering group monitors the targets for reducing food waste in
the grocery trade division. The task of the steering group is to ensure the achievement of the
annual targets of the food waste roadmap.
Accounting policies
The recycling rate for waste is calculated by comparing the amount of recycled waste to the
total amount of waste generated.
Food waste is recorded in warehouses and grocery stores using reason codes. Products
designated as waste are scanned, and these entries are saved in Kesko's information
system, which is also used in the K-food stores. The reported food waste is based on the
waste entries made by warehouses and stores. Waste quantities are collected from reports
generated by the information systems.
The food waste percentage includes both the donation of edible food to food aid and non-
edible bio-waste. The waste percentage is calculated by comparing the total amount of food
waste generated to the total kilogrammes of food sold.

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Metrics
Resource outflows (E5-5)
Recyclability of packaging
At the end of 2025, 97% (97%) of the packaging materials for Kesko’s private label products
were recyclable. The reported percentage of recyclable packaging in 2025 covers retail
packaging of private label products throughout the Group, excluding Danish operations. The
comparative figure for 2024 covers retail packaging for private label products in Finland. The
figure indicates the recyclability of the packaging material, but not whether the packaging is
correctly sorted by the end user. Materials classified as recyclable are those that can be
sorted by consumers. Packaging materials that are non-recyclable and sorted as mixed waste
include rubber, wood in consumer packaging, ceramics and porcelain.
Waste
Waste is generated particularly in Kesko’s own retail operations and in warehouse and
logistics operations. The largest waste fraction in Kesko’s own operations is cardboard,
which results from packaging during product transport and storage. The second largest
fraction is energy waste, from which heat and electricity are produced by incineration.
In the grocery trade division, biowaste constitutes a significant waste stream. It includes former
animal-based food products (category 3 by-products), such as meat and fish products that are
no longer suitable for human consumption, as well as by-products generated during the storage,
handling, and preparation of food. Waste streams in the building and technical trade division
include especially wood waste, mixed waste and various construction product wastes. In the car
trade division, in addition to cardboard, metal and steel waste and hazardous waste are
generated, for example from batteries, paints and oils replaced during maintenance and repairs.
In 2025, Kesko collected data for the first time on construction and demolition waste related
to construction projects, limited to projects where the Construction Act requires a report on
the waste generated. In 2025, data was only obtained from selected projects. Based on the
available information, it is not possible to comprehensively estimate the total amount of
construction and demolition waste, as waste reports were not collected from all projects.
According to the data collected, Kesko’s construction projects generated a total of about
41,700 tonnes of construction and demolition waste during 2025.
Amount of waste generated and its classification into non-hazardous and
hazardous waste

Tonnes | 2025 | 2024
Total non-hazardous waste | 24,757 | 27,177
Waste diverted from disposal | 24,048 | 26,430
Preparation for reuse | 102 | -
Recycling | 16,333 | 18,470
Other recovery operations | 7,613 | 7,959
Waste directed to disposal | 709 | 747
Incineration | - | 210
Landfill | 693 | 531
Other disposal operations | 16 | 6
Total hazardous waste | 1,319 | 782
Waste diverted from disposal | 1,234 | 762
Preparation for reuse | 46 | 2
Recycling | 792 | 384
Other recovery operations | 396 | 376
Waste directed to disposal | 86 | 21
Incineration | 13 | 9
Landfill | 7 | 2
Other disposal operations | 66 | 9
Total non-recycled waste | 8,951 | 9,105
Percentage of non-recycled waste from total waste, % | 34 | 33
Total waste | 26,076 | 27,959

A total of 14 kg (141 kg) of radioactive waste was generated from the nuclear electricity
purchased by Kesko in 2025.

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Accounting policies
Packaging
Private label products are those whose trademark is owned by Kesko or products for which
Kesko is identified on the packaging as the contact information. The percentage of
recyclable packaging is calculated by comparing the total weight of recyclable product
packaging sold during the reporting period with the total weight of all product packaging
sold during the same period.
Packaging data is collected from product suppliers and maintained in Kesko’s internal
information systems. In recent years, significant focus has been directed toward ensuring
the accuracy and reliability of packaging data collection. However, deficiencies remain in
data maintenance, as packaging information is not consistently updated within the system
for all products. The comprehensiveness of packaging data has also been improved.
Waste
The amount of waste covers waste generated at Kesko’s own sites and in outsourced
warehousing services.
Information on waste amounts is obtained from the databases of waste management
partners and from invoices or lessors. Individual sites have been assessed based on
available information if the amount of waste attributable to Kesko’s operations is not
directly available. Such sites include, for example, premises located in shopping centres
where Kesko does not have its own waste management contract. In addition, waste
amounts in outsourced warehousing services and in some K-Citymarket department stores
are estimates of the amount of waste attributable to Kesko. The coverage of primary data in
determining the amount of waste is 80%.
Incineration with energy recovery has been assumed in all operating countries as another
form of utilisation in accordance with Annexes 1 and 2 of European Parliament Directive
2008/98. Incineration without energy recovery is classified as incineration. Hazardous
waste is classified according to Annex 3 of European Parliament Directive 2008/98. The
remaining waste is classified as ordinary waste.
The final treatment of waste is classified according to the waste treatment methods of each
operating country. There may be differences in treatment methods between countries.
The amount of radioactive waste is calculated for all electricity purchased by Kesko. For the
share of purchased electricity not covered by guarantees of origin, the amount of nuclear
waste is calculated based on the share of nuclear power in the country-specific electricity
production mix.

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SOCIAL INFORMATION
S1 OWN
WORKFORCE

Policies (S1-1) ................................................... | 80
Processes for engaging with own workforce and their representatives (S1-2) ..................... | 82
Processes to remediate negative impacts and channels for own employees to raise concerns (S1-3) ................................................ | 82
Actions (S1-4) .................................................. | 83
Targets and progress towards targets (S1-5) | 85
Metrics .............................................................. | 87

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Working conditions: Adequate wage | Potential positive impact: Kesko is committed to providing all employee groups with an adequate wage, which is based on national pay levels and covers at least the basic needs of employees and their families. | Total remuneration consists of the base salary and other tangible and intangible elements. The base salary can be either a monthly salary or an hourly wage. We ensure that the pay is determined either by job evaluation or by the collective agreement applicable to the job.
Working conditions: Social dialogue and collective bargaining | Actual positive impact: Social partners engage in continuous dialogue to take employees’ expectations into account. This ensures fair working conditions for employees and terms of employment are in line with local legislation and labour market practices. | Kesko’s well-functioning cooperation practices enable employees to influence matters affecting them. Practices also promote a collaborative culture through ongoing dialogue.
Working conditions: Health and safety | Actual negative impact: Although measures and management models to promote health, work capacity and occupational safety are systematically implemented, work-related accidents may still occur and employees may become ill. | We anticipate and minimise health and occupational safety impacts through an occupational safety management model and best practices in occupational health and work capacity. Management measures vary in different units and age groups.
Equal treatment and opportunities for all: Gender equality | Potential positive impact: The experience of gender equality has a significant impact on employee experience and job satisfaction. Adhering to principles that promote gender equality fosters fairness and equality in the workplace. | We ensure gender equality and non-discrimination through our cooperation groups, various plans, common principles of remuneration and practices governing total remuneration.
Equal treatment and opportunities for all: Diversity | Potential positive impact:A d iverse and inclusive work community creates the conditions for innovation and strengthens employee wellbeing. | The DEI programme focuses on the recruitment process, manager training, targeted training for employees, supporting women’s career development, as well as identifying and addressing the needs of special groups.
Equal treatment and opportunities for all: Prevention of violence and harassment | Potential positive impact: In our work community, everyone can perform their work without fear of violence, threats or harassment. Preventing violence is part of a day-to-day safety culture that supports wellbeing and productivity. | The management of impacts is ensured through best HR practices, actions promoting equality, the prevention of violence and harassment, zero tolerance for inappropriate behaviour, manager training, clear guidelines and investigation processes, and the SpeakUp channel.
Equal treatment and opportunities for all: Training and skills development | Actual positive impact: Continuous learning, career development and systematic performance management are key elements of competence development and a positive employee experience. Competent personnel are also ensured through business-driven recruitment. | A business-oriented approach underpins both recruitment and competence development. During performance and development discussions, we agree on measures for competence development. Kesko offers a range of in-person and online training for employees, which is communicated to the personnel.

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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 and changes have been discussed by the
Group’s employee representative committee. Strategic considerations relating to personnel
are taken into account when drawing up business strategies. Kesko’s common HR strategy is
based on these business strategies. Personnel-related policies are an integral part of Kesko‘s
strategy.
Own workforce includes all Kesko employees who are in an employment relationship with
Kesko. The types of employment relationships are set out in more detail in the Metrics
section of Characteristics of the undertaking’s employees (S1-6). In some of Kesko’s business
areas, personnel are employed through employment agencies, but non-employees account
for only around 0.5% of the total workforce; therefore, reporting is not considered material
to Kesko’s operations.
Kesko has identified positive impacts on its own workforce in the following areas: collective
bargaining coverage and social dialogue, adequate wages, equal treatment and inclusion, and
training and skills development. The positive impacts of collective bargaining coverage and
social dialogue are particularly relevant for employees in Finland, Sweden, Norway and
Denmark, as the Baltic countries and Poland do not have collective agreements or social
partners comparable to those in the Nordic countries. The positive impacts of the other areas
apply to all Kesko employees. Kesko’s actions are described in more detail in the Measures
section (S1-4).
We have identified an actual negative impact in the area of health and 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, work-related accidents among
young adults occur at a higher rate than in other age groups. Nevertheless, there has been
improvement among those aged 20–25. The overall trend in sickness absence days has been
declining. Data on diagnosed causes of sickness absences is available for Finland only.
Musculoskeletal disorders account for the largest number of diagnosed sickness absences,
while mental health disorders remain a major cause, among employees in stores and,
particularly, young employees.
Based on our current risk assessment, Kesko has not identified any operations in its countries
of operation that would be considered particularly high‑risk, such as those involving
significant risks of forced labour or child labour within 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 impacts on its own workforce related to the green transition.
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. Kesko carries out separate, systematic monitoring of
occupational safety, occupational health and wellbeing using data, and plans further
measures in cooperation between the Group and the business areas. We compile
occupational safety and health risk mitigation measures by division and country, and monitor
their implementation through the Occupational Safety Steering Group and the Group’s
occupational safety committee, which includes employee representatives.
To manage and mitigate negative impacts, we work closely with insurance companies and
occupational health service providers, and in Finland also with Kesko’s own occupational
health service. 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. Extensive cooperation
is carried out with employees and their representatives across the different areas, as
described in more detail in the Engagement with own workforce section (S1-2).
Material impacts identified in relation to Kesko’s own workforce have been taken into
account in Kesko’s sustainability and HR strategies, as well as in the related targets when
they apply across all operating countries.

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Policies (S1-1)
Goal-driven actions related to employees are steered and supported by the Group’s people
policy and the K Code of Conduct, as well as the sustainability and HR strategies. The people
policy sets out guidelines and principles for the following areas: recruitment, competence,
leadership, compensation, equality and non-discrimination, and safety and wellbeing. During
2025, we updated Kesko’s people policy that covers all operating countries. The people
policy was approved by Kesko’s Board of Directors and will enter into force on 1 January
2026. The update does not contain any significant changes to the key principles. Social
dialogue and collective bargaining are conducted in accordance with national laws and
practices and are not formally addressed in the people policy. In addition to these guiding
principles, we have established principles for health and occupational safety, equal
treatment, and training and skills development. The health and occupational safety principles
were previously approved by Kesko’s occupational safety committee. The most senior role
that has responsibility for implementation of the policies concerning personnel is the
Executive Vice President, HR, who is a member of the Group Management Board.
During 2025, we updated our people principles guiding our employees, which are: Customer
always first, Sales and growth in mind, Positive get things done attitude, Stronger together
and Fair play. These principles were approved by the President and CEO in October and
came into effect during 2025. They are also part of Kesko‘s strategy and people policy.
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. The people policy,
the K Code of Conduct and the occupational health and safety principles cover the entire
own workforce and they are available on Kesko’s intranet and external website.
Section G1 Business Conduct lists Kesko‘s own guidelines and operating models relating to
corporate culture, business conduct and respect of human rights, as well as the international
principles and declarations 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 Women‘s Empowerment Principles to promote gender
equality and professional development for women.
Our operations are based on non-discrimination and equal opportunities. 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. The principles relating to remuneration and
adequate wages are set out more detail in the policies on equal treatment.
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.
Policies related to the health and occupational safety
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. In the building and technical trade division, 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. At Group level, we monitor wellbeing and psychosocial load
regularly as part of the K Voices employee engagement survey.
Kesko’s occupational safety steering group is responsible for defining strategic targets,
specifying the division of responsibilities at different organisational levels, coordinating
measures and monitoring their effectiveness. Management models vary according to the
countries of operation and local legislation.
Employees can present observations related to occupational safety in the manner agreed at
the site and identify the resources that support wellbeing and to address factors and
situations that threaten health and work capacity. The managers have operational
responsibility for occupational safety in their units and the occupational safety managers
coordinate cooperation in their area of responsibility. Services that support employees’
occupational health, such as work capacity and mental health, are organised in accordance
with the practices and legislation of each country. We are committed to promoting the
continued employment of employees with partial work capacity through various measures.

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Policies related to equal treatment
In accordance with Kesko’s people 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. We promote and coordinate equality through the
Group’s Employee Equality and Non-Discrimination Group, Kesko’s common operating
principles, and the K Code of Conduct. Discrimination is prevented through a zero-tolerance
policy and an operating model to address harassment and inappropriate behaviour. Potential
cases of discrimination are managed through investigation processes. Statutory equality and
non-discrimination plans form the foundation for development, while processes supporting
equality and equity are adapted to national practices.
Diversity and inclusion are promoted through a programme that supports DEI targets, with a
focus on building a diverse and inclusive workplace, equal remuneration and gender equality
at all levels of the organisation. Kesko is committed to the UN Women’s Empowerment
Principles to strengthen the position and career development of women. The priorities for
supporting vulnerable groups vary by country.
Kesko‘s core principles of remuneration are competitive, performance-based total
remuneration and the fair and equitable treatment of employees, which we are committed to
promoting under our equality and non-discrimination plan. Our remuneration practices
include regular reviews of base salaries, performance-based bonuses linked to Group and
business goals, and common employee benefits. The purpose of remuneration is to
encourage strong performance and to commit employees to the company and its strategic
targets. Kesko’s job evaluation system enables the comparison of salaries in comparable
jobs. We promote gender pay equality as part of our remuneration practices.
Kesko is committed to providing its employees with a salary that corresponds to the
demands of the position and ensures a decent standard of living. Remuneration is based
either on collective agreements or on a role‑specific job evaluation system. The total
remuneration package, which includes a base salary, performance bonuses and spot rewards,
is designed to support employee motivation, performance and financial security. Kesko
recognises the impact of part‑time work on livelihood and seeks to promote opportunities for
full‑time employment. Pay levels are assessed annually using external market data and
internal comparisons. An annual pay gap review is also carried out. In the 2025 pay review,
strong performance and competitiveness were taken into account, and pay increases were
negotiated with employee representatives. Kesko is preparing for the entry into force of the
EU Pay Transparency Directive. The Directive will introduce new obligations related to pay
reporting and employees’ right to information. If any unjustified pay differences between
genders are identified, Kesko will initiate a joint pay assessment with employee
representatives and take action to correct any unjustified differences.
Policies related to training and skills development
In accordance with Kesko’s people policy, competence development is based on strategy and
business objectives. Kesko draws up plans outlining priorities and measures for competence
development as part of the annual planning process, both at Group level and within the
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.
A sufficient level of competence ensures success and wellbeing at work and offers
opportunities for professional development and career advancement. Competence
development is promoted 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.

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Processes for engaging with own workforce and
their representatives (S1-2)
Actual and potential impacts on own workforce are addressed through close cooperation
between employer and employee representatives in Kesko’s operating countries where such
representation exists. 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 multiple 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. These
employee forums monitor the impact on employees and their development: Kesko’s
cooperation group meets twice a year, employee representative committee 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 drawn up a European Works Council (EWC) statement to deepen our
cooperation and dialogue. The next EWC meeting is planned for 2026. The effectiveness of
employee inclusion is measured by the amount of dialogue, the topics discussed, the
continuous feedback provide by employee representatives at the bi-annual Group
cooperation meeting. In addition, dialogue with employees is maintained through events
hosted by the President and CEO in connection with the publication of the interim reports.
In 2025, we conducted a K Voices employee engagement survey on the entire workforce,
with the exception of Denmark, to gather views and experiences on a broad scale. In
addition, the Let’s K survey was conducted twice during the year in Finland to gain insight
into current employee sentiment and jointly develop everyday work practices. Discussions
have also been held with language minority employees about their work experiences and
expectations in Finland. Kesko’s actions are described in the Measures section (S1-4). In
addition to the common employee engagement survey, various other surveys and
assessments are conducted in our operating countries, such as country-specific wellbeing,
job satisfaction, culture and operating environment surveys, which enable employees to
share their views.
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.
Kesko applies several collective agreements, including collective agreements for the retail
sector, the automotive trade and repair sector, and salaried employees. The agreements are
applied by unit and by division, and local agreements complement the national agreements.
Dialogue with the social partners takes place at various levels. In 2025, discussions focused,
among other things, on the impacts of the EU Pay Transparency Directive, updates to
collective agreements, the reliability of remuneration systems based on collective
agreements, working time arrangements, wellbeing at work and social protection.
At Group level during the year, sustainability reporting requirements were discussed twice.
In addition, updates to the people policy and risk management were discussed. The
continuity of employee representation was ensured by supporting the organisation of
elections for employee and labour protection representatives. Occupational safety in Finland
and other operating countries was strengthened by reviewing labour protection practices
under a new management model and by updating the risk mapping every six months.
Processes to remediate negative impacts and
channels for own employees to raise concerns
(S1-3)
We organise employee forums and regular dialogue sessions where employees can present
their views on potential challenges related to working conditions, occupational health and
safety, or discrimination. These discussions may lead to concrete changes in our practices,
helping us to manage potential negative impacts.

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Kesko is committed to ensuring a fair and safe working environment for all employees. We
involve employees and occupational safety representatives in the assessment of workplace
risks. Employee participation enables more effective identification of both current and
potential risks.
We handle employees’ concerns appropriately and efficiently based on the following
principles: we communicate clearly, investigate issues promptly and systematically, and
follow a fair process that provides protection to the employee when necessary. We actively
monitor the effectiveness of corrective actions and implement additional measures when
required. The following sections describe the various monitoring mechanisms we use.
Kesko collaborates closely with representatives of the personnel, such as employee
representatives and trade unions. At regular discussion events employees can raise their
concerns and discuss them directly with management. At these events, we discuss topical
issues and seek solutions together. Discussions have included the company’s remuneration
practices and local employee benefits. In addition, a wide range of topics related to the
development of working life, cooperation, representation and wellbeing have been discussed
with employee representatives.
Employees are informed about the available reporting channels and how to use them, for
example at 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 information cannot be delivered to the persons in charge, the reporter
can use the SpeakUp reporting channel, where all reports are handled confidentially. 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
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
employees locally. For example, in Finland, the Task Force approach can be used to
investigate more extensive or serious reports from employees. In addition, various surveys,
such as the operating countries‘ own wellbeing, employee satisfaction or culture surveys,
allow employees to 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 reported. The business HR and employee
representatives address the challenges and concerns of employees and monitor the
effectiveness of implemented measures.
Actions (S1-4)
Health and occupational safety
In 2025, we compiled a Group-wide occupational safety risk map based on country-level risk
mapping and developed country-specific improvement plans accordingly. Kesko
implemented several measures to strengthen its occupational safety culture and its
systematic and proactive practices. For example, in Sweden, a working environment
committee was established; in Norway, internal audits focused on key risks; in Poland, health
and safety audits were conducted in stores and terminal areas; and in Lithuania, training was
provided for new health and occupational safety representatives.
In 2024, the majority of Kesko’s occupational diseases occurred in the car trade. Therefore,
the 2025 focus in the car trade was on preventing occupational diseases. Areas of
improvement were identified especially in work related to vehicle tyres. Measures included
training for managers, systematic on-the-job instruction, occupational hygiene
measurements and corrective actions based on those results, such as optimising the use of
personal protective equipment.

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In Finland in 2025, we piloted a self-assessment tool of psychosocial load in development
discussions. A total of approximately 6,600 employees assessed their own psychosocial load.
According to self-assessment, under 6% of respondents reported experiencing frequent or
constant psychosocial load. We trained managers to use the new psychosocial load
operating model. We also developed a process for the early identification and support of
employees experiencing harmful levels of psychosocial load. In Finland, we supported mental
wellbeing through training and communication, focusing on the identified mental health
challenges among young age groups, in particular.
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. Key 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.
Occupational safety experts and representatives play a key role in the planning and
developing of operations. 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. In 2025, occupational health and
safety issues were discussed at Group level in the occupational safety committee three
times.
The Group’s occupational safety unit reports on key occupational safety indicators and
measures to the division and Group management every six months. In addition, business area
managers and HR review occupational health and safety topics every six months, monitor the
development of indicators and decide on the necessary measures for occupational safety and
wellbeing at work. Kesko’s units prepare an annual action plan covering development topics,
and HR monitors its implementation. In 2025, the Divisional and Group Management also
took measures to improve safety management based on the bi-annual reporting.
Absences, accidents and occupational diseases are prevented at Kesko through systematic
operating models and close cooperation between the Group, the divisions and employee
representatives. Examples of this include the work capacity and occupational safety
management model and, in Finland, developing the competence of HR partners 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
work. Work-related accidents are systematically recorded in the accident reporting systems,
which occupational safety managers used to monitor investigations.
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 specialists and HR partners, also assesses the employee’s
work capacity and wellbeing, if necessary.
Equal treatment and inclusion
Awareness of diversity and equality is promoted through the ‘Diversity and inclusion’ online
training, which was updated in 2025 to be more comprehensive and to include more
language versions. Diversity and equity matters are part of the Leader@K training for new
managers at Kesko. In addition, all logistics managers in Finland attended a training on the
topic in 2025.
A diversity pledge has been added to job advertisements, and the application form
emphasizes that applicants do not need to state their age or gender, nor include personal
information unrelated to the role on their CV.
We aim to attract an increasing number of talents with international backgrounds to Kesko.
For this reason, a buddy programme was established at K-Kampus to support the orientation
of employees who use English as their working language. 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.
Kesko aims to increase the number of women in the top management as well as middle
management positions. The Group HR management team and the Group sustainability
management team regularly monitor the progress of the DEI programme targets. The
Group’s HR department is responsible for the progress of the DEI programme.

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Training and skills development
In 2025, competence development focused on leadership and management, as well as
supporting professional growth and development. We strengthened this support by
introducing a new common K Learning environment in Finland and the Baltic countries. The
K Learning environment will be extended to other operating countries in the coming years. In
Finland, we implemented the ‘Manager supporting growth and development’ training to
support employees‘ career progression.
We continued to strengthen skills in influencing, collaboration and self-management, and
supported the adoption of AI tools with new training. In the stores, the focus was on
strengthening sales and customer interaction as well as service and product competence.
Store employees in Finland have also started using the new K Learning environment, which
provides them with a broad selection of professional training courses, including chain-
specific training, eLearning courses and opportunities to complete vocational qualifications.
Targets and progress towards targets (S1-5)

| Base year | 2025 | Target
Total Recordable Injury Frequency (TRIF), own workforce | 2024 | 25.9 | 25.0 | 2030 | 22.0
Wellbeing index | 2024 | 83 | 85 | 2030 | 86
Diversity and inclusion index | 2024 | 87 | 88 | 2030 | 89
Top management, underrepresented gender proportion, % | 2024 | 27.7 | 27.8 | 2030 | 40.0
Middle management, underrepresented gender proportion, % | 2024 | 32.8 | 28.2 | 2030 | 45.0
Opportunities for development and growth | 2024 | 68 | 70 | 2030 | 75

The occupational health and safety management system covers 100% of the entire own
workforce.
Kesko has set targets for the following own workforce subtopics: health and safety, gender
equality, diversity, and training and skills development. The base year for all targets is 2024,
and the target level has been set for 2030.
The setting of the targets has been extensively discussed with various internal stakeholders.
Targets have been reviewed together with the employee representative committee, the
equality and non‑discrimination group, the occupational safety steering group and the Group
occupational safety committee. External stakeholders have also been involved in defining the
targets. In particular, targets have been discussed in cooperation with occupational health
partners and insurance companies. These parties have had the opportunity to contribute
their views on both the targets and the related measures.
The Group Management Board regularly monitors targets related to Kesko’s own employees.
HR and sustainability management, HR business partners, steering and working groups, as
well as employee representatives, monitor the achievement of the targets.
The total recordable incident frequency (TRIF) was 25.0 and decreased from 2024 towards
the target level of 22.0. The wellbeing index based on the employee engagement survey
improved from 2024 and reached 85 in 2025. Progress in health and safety is assessed to be
on track.
The diversity and inclusion index based on the employee engagement survey increased from
2024 and reached 88 in 2025. The already high result improved even further. The proportion
of the underrepresented gender, referring to women, in top management remained at the
same level as in 2024. However, the proportion of women in middle management declined
from the baseline.
The target related to employee competence development is presented for the first time for
2025. The target was set in 2024 as part of the HR strategy. The target level is 75 by 2030.
Progress improved from the 2024 baseline, reaching 70 in 2025.
Accounting policie s
In defining the target levels, industry‑specific benchmarks or average levels have been
taken into account where available and relevant. In addition, the baseline and the realistic
likelihood of achieving the targets in a diverse and evolving operating environment have
been considered. Target definitions also take into account that retail sector benchmarks
often distinguish between retail, wholesale and logistics; at Kesko, these areas have been
combined for the purpose of setting and monitoring overall targets. Where the metric is
based on the employee engagement survey, the expertise of the survey partner has been

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utilised in evaluating the metric, assessing progress, and determining the statistical
significance of changes.
More detailed accounting principles for the total recordable incident frequency are
described in the section on Health and Safety Metrics (S1‑14).
The wellbeing index and the diversity and inclusion index are based on indices constructed
from questions included in the K Voices employee engagement survey. The wellbeing index
consists of 12 statements, and the diversity and inclusion index of five statements. Both
indices use a 0–100 scale, and the result represents the percentage of favourable responses
among all respondents. The metric describing employee competence development and
growth is based on the K Voices survey statement: ‘I believe I have opportunities for
personal development and growth in K Group if I want’, and the result is the percentage of
favourable responses.
Employees in Denmark were not included in the K Voices employee engagement survey in
2024–2025, and therefore they are not included in the targets based on the employee
engagement survey results. Denmark currently uses its own separate personnel survey.
In the context of senior and middle management, the underrepresented gender refers to
women at Kesko. The proportion of women is calculated as a percentage of the total
number of employees in the respective group. Gender-balanced representation is
monitored using the data from Kesko’s HR master data system.

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Metrics
Characteristics of employees (S1-6)
Employee head count by gender

| 2025 | 2024
Male | 11,440 | 10,853
Female | 7,536 | 7,444
Other | 15 | 12
Not reported | - | -
Total | 18,991 | 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

| 2025 | 2024
Finland | 12,598 | 12,555
Norway | 1,918 | 2,091

Employee turnover

| 2025 | 2024
Number of employees who have left undertaking | 3,807 | 4,161
Employee turnover, % | 16.4 | 18.5

Employee head count by contract type and gender

| 2025 | 2024
| Female | Male | Other | Not reported | Total | Female | Male | Other | Not reported | Total
Employees | 7,536 | 11,440 | 15 | - | 18,991 | 7,444 | 10,853 | 12 | - | 18,309
Permanent | 6,634 | 9,738 | 9 | - | 16,381 | 6,528 | 9,183 | 10 | - | 15,721
Temporary | 662 | 886 | 6 | - | 1,554 | 659 | 896 | 1 | - | 1,556
Non-guaranteed hours | 240 | 816 | - | - | 1,056 | 257 | 774 | 1 | - | 1,032
Full-time | 3,866 | 8,990 | 5 | - | 12,861 | 3,845 | 8,533 | 4 | - | 12,382
Part-time | 3,670 | 2,450 | 10 | - | 6,130 | 3,599 | 2,320 | 8 | - | 5,927

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Employee head count by contract type and operating country

| 2025
| Finland | Norway | Sweden | Denmark | Estonia | Latvia | Lithuania | Poland | China(1 | Total
Number of employees | 12,598 | 1,918 | 1,283 | 1,862 | 185 | 95 | 94 | 941 | 15 | 18,991
Permanent | 10,821 | 1,565 | 1,118 | 1,769 | 179 | 94 | 94 | 726 | 15 | 16,381
Temporary | 846 | 353 | 40 | 93 | 6 | 1 | - | 215 | - | 1,554
Non-guaranteed hours | 931 | - | 125 | - | - | - | - | - | - | 1,056
Full-time | 7,707 | 1,450 | 1,007 | 1,382 | 183 | 89 | 93 | 935 | 15 | 12,861
Part-time | 4,891 | 468 | 276 | 480 | 2 | 6 | 1 | 6 | - | 6,130

| 2024
| Finland | Norway | Sweden | Denmark | Estonia | Latvia | Lithuania | Poland | China(1 | 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

1) 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.

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Collective bargaining coverage and social dialogue (S1-8)
Coverage of collective bargaining and 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

| 2025 | 2024
Total employees covered by collective bargaining agreements, % | 75.8 | 75.6

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 employees are covered by
collective agreements, excluding senior salaried employees in Finland for whom a separate
local agreement has been drawn up concerning representation, working time arrangements
and pay adjustments. In Sweden, all employees are covered by collective agreements,
excluding the country director, who is covered by a separate agreement. There are no
collective agreements in Estonia, Latvia, Lithuania and Poland.
Diversity metrics (S1-9)
Age distribution of employees

| Number | Percentage, %
| 2025 | 2024 | 2025 | 2024
Under 30 years | 5,169 | 4,763 | 27.2 | 26.0
30-50 years | 8,739 | 8,547 | 46.0 | 46.7
over 50 years | 5,083 | 4,999 | 26.8 | 27.3

Gender distribution of top management

| Number | Percentage, %
| 2025 | 2024 | 2025 | 2024
Women | 27 | 26 | 27.8 | 27.7
Men | 70 | 68 | 72.2 | 72.3
Other or unknown | - | - | - | -

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.

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Adequate wages (S1-10)
Kesko is committed to paying all employees a competitive salary that meets or exceeds the
legal minimum requirements and is sufficient to cover basic living costs. Salaries are based
on the level defined in the applicable collective agreement. In countries where collective
agreements are not used, employees are entitled to at least the statutory minimum wage. A
related description can be found in the section Collective bargaining coverage and social
dialogue (S1‑8).
An employee’s base salary is compared with the applicable reference salary, which depends
on the national practices and is either the wage defined in the collective agreement or the
statutory minimum wage. In the Nordic countries, an employee’s base salary is compared
with the collective agreement wage. In Estonia, Latvia, Lithuania and Poland, an employee’s
base salary is compared with the national minimum wage.
Training and skills development metrics (S1-13)
Performance and development discussions and performance review discussions are a
systematic part of Kesko’s performance management model. In 2025, 75.2% (63.5%) of own
workforce participated in performance management discussions and reviews in accordance
with the common operating approach. The discussions were broadened by developing a
model based on the needs of logistics employees in Finland.
Performance management and competence development

| 2025 | 2024
% of employees that participated in regular performance and development discussions | 99.6 | 92.7
Male | 99.6 | 88.1
Female | 99.8 | 97.4
Other or unknown | 100.0 | 100.0
The average number of training hours per employee | 4.6 | 4.4
Male | 5.1 | 5.5
Female | 4.0 | 3.2
Other or unknown | 1.3 | 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 HR master 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
grocery stores, 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.

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Health and safety metrics (S1-14)
Work-related accidents, cases of work-related ill health and fatalities

| 2025 | 2024
Number of recordable work-related accidents | 674 | 714
Rate of recordable work-related accidents (TRIF) | 25.0 | 25.9
The number of cases of work-related ill health | - | 4
The number of fatalities as a result of work-related accidents and work-related ill health | - | -
The number of days lost to work-related accidents and fatalities | 3,400 | 2,147

Occupational health and safety management system covers 100% of Kesko’s own workforce.
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 refers to 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 approved work-related accidents and work-related
pain cases.
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.
Compensation metrics (pay gap and total compensation)
(S1-16)
At Kesko in 2025, the remuneration ratio between genders is 2.7% (2.2%). The comparability
of the average total remuneration figures between women and men was affected by the
acquisitions made in Denmark during 2025, as well as changes in personnel numbers due to
organisational restructurings in different operating countries and refinements made to job
classifications. Among employees in Finland, the average gender pay gap narrowed slightly.
The ratio between the annual total remuneration of the highest paid individual and the
median annual total remuneration (excluding the highest paid person) was 47 (33).
Accounting policies
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 three months during the reporting year, and the remuneration of the
highest paid individual.

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Incidents, complaints and severe human rights impacts
(S1-17)
Through the SpeakUp channel, we received a total of 36 (15) reports concerning the working
conditions, terms of employment and other work‑related rights of Kesko’s own employees.
Cases reported through other channels are part of the routine investigations carried out by
HR partners and employment law specialists, and they are not recorded on a case‑by‑case
basis. In 2025, based on an estimate, Kesko had approximately 15 (around 10–15)
discrimination and harassment reports concerning its own employees. This estimate includes
uncertainties; for example, it does not include reports that do not meet the criteria of the
inappropriate conduct operating model or reports which, after investigation, are found to be
other types of employment‑related disagreements.
In 2025, no severe human rights violations were identified at Kesko. Kesko has not been
fined or subjected to other sanctions for the cases discussed above, or for cases from
previous years.
Accounting policies
The number of reports received through the SpeakUp channel includes those reports that
concern Kesko’s own employees and potentially inappropriate behaviour occurring in the
workplace. This figure does not include discrimination or harassment reports, as they are
reported separately. The total number of discrimination and harassment reports concerning
Kesko’s own employees is presented as an estimate by HR partners and employment law
specialists in the operating countries. Discrimination and harassment reports submitted
through the SpeakUp channel have been added to the estimate.

|  | 93

S2 WORKERS IN
THE VALUE CHAIN

Policies (S2-1) ................................................... | 94
Processes for engaging with value chain workers about impacts (S2-2) ........................ | 82
Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3) ....................................... | 95
Actions (S2-4) .................................................. | 96

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Working conditions | Potential negative impact: 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 | P otential negative impact: Infringements of labour rights affecting value chain workers cause suffering for the affected workers and their families.
Working conditions Child labour and forced labour | Risk: 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 engage in dialogue with our suppliers and act in accordance with our escalation process. • We require social responsibility audits and corrective actions where necessary from our direct suppliers in risk countries.

Material impacts, risks and
opportunities and their interaction
with strategy and business model
Kesko has identified potential negative impacts related to
workers in the value chain. The identified potential
negative impacts are mainly individual cases: However,
supply chains of certain products sold by Kesko involve
also more systemic problems. Potential impacts on value
chain workers concern employees who work upstream in
Kesko’s value chain, in companies with which Kesko has a
business relationship.
The procurement of goods is a core element of Kesko’s
business model, and Kesko has business relationships with
a large number of suppliers of goods and services. Through
these relationships, Kesko is also connected to a large
number of workers employed by these companies.
Workers in global value chains may be exposed to
potential negative impacts in the manufacturing of
products sold by Kesko and the production of raw
materials required for those products.
Kesko has identified potential negative impacts related to
the working conditions of value chain workers and the use
of child and forced labour in its supply chains. The risk of
inadequate working conditions is particularly linked to
workers at Kesko’s suppliers involved in the manufacturing
or primary production of goods in countries classified as
risk countries. The country risk classification used for
sourcing is based on the World Bank Worldwide
Governance Indicators. Among the risk countries, Kesko’s
largest sourcing volumes come from China, Thailand,
Türkiye, India and Greece.

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Kesko has identified the risk of child and forced labour related to its value chain workers in
certain product categories included in Kesko’s product selection. Especially forced labour
risks are identified also outside of risk countries. Examples of systemic level impacts include
forced labour risk associated with seasonal work in primary agricultural production and
textile industry. Kesko has also identified a financial risk related to workers in the value chain.
If serious violations of workers’ working conditions or human rights, or incidents of child or
forced labour, occur within Kesko’s value chain, Kesko may face various negative financial
impacts. Negative impacts may relate to reputational damage for Kesko or business
disruptions caused by the termination of a supplier relationship.
Kesko has not identified material impacts on workers downstream in its value chain.
Policies (S2-1)
Kesko’s principles on human rights issues and working conditions in supply chains are
defined in Kesko’s sustainability policy and the K Code of Conduct for business partners.
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. 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’s Board of Directors approved the updated sustainability policy effective 1 January
2026. No significant changes were made regarding principles guiding Kesko’s activities
toward value chain workers.
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. In 2025, Kesko carried out an update of its human rights
assessment with a focus on value chain workers. The assessment identified the most
significant human rights impacts by division and product category. The assessment was
completed at the end of 2025, and work on the findings will continue during 2026.
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.
In 2025, two reports concerning service providers were submitted through Kesko’s SpeakUp
channel. These reports related to violations of labour and working time legislation, as well as
the failure to fulfil certain financial reporting obligations.
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.

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Kesko is a signatory of 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 that factories in Bangladesh manufacturing private-label
clothing and home textiles are included in the International Accord process.
Kesko guides the procurement of products containing raw materials identified as critical from
a social responsibility perspective with sustainability guidelines. Through our guidelines for
sourcing of cocoa, coffee, tea, palm oil, soy, textiles and timber and paper, we aim to reduce
the human rights challenges associated with their production. 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.
Processes for engaging with value chain workers
about impacts (S2-2)
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, such as amfori. We also
engage in dialogue with Fairtrade, for example. Cooperation with Fairtrade focuses on the
global supply chains of agricultural products and reducing risks in primary production. In
addition, Kesko works with the Centre for Child Rights and Business, an organisation
promoting children’s rights. As a member of the organisation’s working group, Kesko
receives up-to-date information on child labour and its prevention at the regular working
group meetings.
Currently, there is no direct 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.
Kesko engages indirectly with the workers of its suppliers in risk countries through social
responsibility audits conducted by third parties. Risk country suppliers refer to those
suppliers with whom Kesko has a supplier agreement and whose country of domicile is
classified as a risk country. In Kesko’s grocery trade, audit requirements are applied more
broadly on a risk-based basis, taking into account the product’s country of manufacture.
In the assessment of social responsibility of our 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. Audits are conducted at suppliers’ factories in
principle at least every two years, and more frequently if needed. The effectiveness of
engagement is assessed through the audits carried out. The audit process includes follow‑up
audits, which monitor how the identified non-conformities have been corrected. A follow‑up
audit is typically required within 12 months of the original audit.
Processes to remediate negative impacts and
channels for value chain workers to raise concerns
(S2-3)
When issues related to Kesko’s value chain workers arise, the sustainability unit and
procurement personnel of the responsible division address the issues and define 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.
For serious violations of human rights and working conditions, Kesko follows its escalation
process updated in 2025. In accordance with the process, serious violations are handled in
collaboration with Kesko Group’s Governance, Compliance and Ethics function. Compliance
and the division conduct an initial assessment and assemble a multidisciplinary team to
define required actions. Corrective actions are agreed with the supplier, or, if necessary, the
relationship is suspended or terminated, and authorities are informed. Decisions are
documented and reported to key management. Kesko does not immediately terminate
cooperation if the supplier commits to resolving the identified issues within an agreed
timeline. The effectiveness of corrective actions is assessed through follow-up audits, for
example.

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The amfori BSCI audit process includes a Zero Tolerance Protocol, which is followed when an
auditor observes a particularly critical issue during the audit. If use of child labour is detected
in Kesko’s value chain, a remediation model of the Centre for Child Rights and Business 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 Kesko’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.
The process for handling violations is fundamentally the same regardless of how the issues
have been brought to Kesko’s attention. If a case is identified through a SpeakUp report,
legislation on the protection of whistleblowers and Kesko’s internal investigation process are
also taken into account.
In addition to Kesko’s own SpeakUp channel, a channel maintained by amfori, the amfori
Speak For Change, is available for workers in Vietnam, Türkiye, Bangladesh and four regions
in India at those factories of Kesko’s suppliers that fall within the scope of amfori BSCI audits.
Actions (S2-4)
In accordance with Kesko's policy, all factories of its own risk country sourcing must undergo
a social responsibility audit. Purchases from countries classified as risk countries accounted
for 1.2% (0.9%) of Kesko’s purchases of goods in 2025.
In 2025, a total of 970 (705) factories of suppliers in risk countries had a valid social
responsibility audit, resulting in an audit coverage of 97.6% (90.7%) of all factories of 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.
Since 2025, Kesko has introduced social responsibility audits from private‑label fresh fruit
and vegetable suppliers beyond the general risk country classification, in countries where
workers on fruit and vegetable farms face an elevated risk of human rights violations. In
defining the level of risk, Kesko uses the country risk list published by GLOBALG.A.P.
Suppliers operating in countries identified as medium‑ or high‑risk in the list are
recommended to undergo audits.
The majority of the deficiencies in amfori BSCI audits were related to compliance with
working time regulations and to social management systems at factories.
In 2025, Kesko terminated orders from four factories in which issues related to working
conditions were identified and consensus could not be reached with the suppliers on the
necessary corrective actions in the factories.
For several years, there have been suspicions of human trafficking in the Finnish
berry‑picking sector, involving also some of Kesko’s suppliers. In 2025, Kesko engaged with
its suppliers to clarify responsible business practices, requested written explanations of their
berry‑sourcing processes, and required key supplier personnel to complete the K Code of
Conduct online training. A legal case reported as ongoing in Kesko’s 2024 sustainability
statement resulted in a district court ruling in autumn 2025. In this ruling, one of Kesko’s
suppliers and a key individual at the company were convicted of human rights violations. The
supplier’s engagement with Kesko and the corrective actions taken to address the violation
were deemed insufficient in light of the court’s findings and the severity of the breach of the
K Code of Conduct. Consequently, Kesko terminated the supplier agreement. Another court
case involving a supplier operating in the same sector remains ongoing, and Kesko has
initiated dialogue with the supplier.
In autumn 2025, Kesko also participated in auditing the harvesting and accommodation
conditions at one of its berry‑sector suppliers. The audit model has been developed jointly
with an external inspection and certification service provider.
Kesko is also aware of an additional ongoing legal case related to alleged human rights
violations concerning one of its domestic suppliers.

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In 2025, a suspected human rights violation emerged in Kesko’s value chain when one of its
suppliers dismissed workers following a strike in Panama. Kesko engaged in dialogue with the
supplier, requested clarification on the incident, and continues to monitor the situation.
To strengthen business partners' commitment to the K Code of Conduct, Kesko released a
K Code of Conduct online training for its suppliers in 2025. In addition, 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 2025, a total of 205 (62) 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 social management systems.
Kesko organises responsible purchasing training for its purchasing organisations. In 2025,
Kesko organised extensive training on identifying labour exploitation in subcontracting
chains, in cooperation with the Deaconess Foundation, the Assistance System for Victims of
Human Trafficking, the National Bureau of Investigation, the Regional State Administrative
Agency for Southern Finland, and the European Institute for Crime Prevention and Control
(HEUNI).

|  | 98

S4 CONSUMERS
AND END-USERS

Policies (S4-1) ................................................... | 100
Processes for engaging with consumers and end-users (S4-2) .............................................. | 102
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3) .................................. | 102
Actions (S4-4) .................................................. | 103
Targets and progress towards targets (S4-5) ................................................................ | 104

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Health and safety: Enabling healthy choices | Potential positive impact: 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.
Health and safety: Product safety | Potential negative impact: 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.
Health and safety: Product safety | Risk: 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 | Potential negative impact: 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.
Privacy: Data protection | Risk: 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.

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Material impacts, risks and opportunities and their
interaction with strategy and business model
Kesko operates primarily in the consumer market in Finland. In Kesko’s other operating
countries, where Kesko engages in building and technical trade, Kesko operates mainly in the
business-to-business market.
In the retailer business model, Kesko sells products to K-retailer entrepreneurs, who conduct
retail trade under Kesko’s retail chains and sell products onward to consumers. Kesko’s retail
chains include K‑food stores, K‑Rauta building and home improvement stores, and most
Intersport stores, in which K‑retailer entrepreneurs operate retail businesses. In foodservice
operations, Kespro sells products to business customers, who in turn sell or serve the
products to end-users.
Kesko’s own retail operations, where Kesko sells products directly to consumers in Finland,
include car trade, the non-food business of K‑Citymarket, Budget Sport, and part of
Intersport sales. Onninen’s business operations in all its operating countries consist of
business-to-business trade. In building and home improvement trade outside Finland, in
Sweden, Norway and Denmark, the business is primarily Kesko’s own retailing. The building
and home improvement chains operate mainly in business-to-business trade, but they are
also open to consumers.
The quality and safety of products are a central part of Kesko’s operations. Products must
meet the requirements set by legislation, regulatory authorities, and Kesko’s own quality
criteria. Clear product information and appropriate instructions for use support the safe and
proper use of products.
Kesko’s extensive product selection includes products that may have adverse impacts on the
health of consumers and end-users. The sale of such products is strictly regulated, and their
sale is conducted in compliance with the laws that govern their distribution. Products that
may be harmful to health contain packaging labels warning of their risks, and their sale is
subject to heightened diligence, including the application of sales restrictions and self-
monitoring procedures.
Kesko’s operations are founded on data and the processing of data within Kesko’s operating
environment. Consumers who belong to K Group’s (Kesko and chain stores) K‑Plussa loyalty
programme have been identified as a significant group of individuals whose data are
collected. The data are used to serve customers individually, enabling the provision of
personalised benefits, rewards, and relevant information on product selections and services.
Customer data are also utilised in business management and in the development of products
and services.
In Kesko’s business model, the group of consumers and end-users interacting with Kesko is
broad. Particularly in Finland, the number of consumers interacting with Kesko or otherwise
within the scope of Kesko’s operations is substantial. Potential negative impacts on
consumers and end-users have been identified identified in relation to product safety and
data protection. In both cases, any potential negative impacts are isolated cases in nature.
Potential negative impacts concern the group of consumers and end-users interacting with
Kesko. From a product safety perspective, Kesko has not identified specific groups among
consumers and end-users who would be particularly affected by such impacts. Members of
the K‑Plussa loyalty programme have been identified as the individuals whose personal data
Kesko processes the most.
There is a clear interdependency between the potential negative impacts and risks related to
product safety and data protection. If a serious negative impact related to product safety or
data protection were to materialise, it could result in financial effects for Kesko through the
realisation of related risks.
Potential positive impacts on consumers and end-users relate to Kesko’s private label food
products and the nutritional healthiness of these products. Kesko operates in the grocery
trade in Finland, and the positive impact therefore applies to Kesko’s grocery trade
customers in Finland.

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Policies (S4-1)
Kesko is committed in its K Code of Conduct guidelines to respecting internationally
recognised human rights in all its operations. Customers have been identified as one
stakeholder group whose human rights may be affected by Kesko’s activities. In relation to
the realisation of customers’ human rights, the K Code of Conduct guidelines emphasise the
equal treatment of customers and other stakeholders, ensuring the safety, accessibility and
ease of use of customer interactions, and ensuring that the products and services offered by
Kesko are safe to use. The K Code of Conduct also addresses the responsible use of data.
Responsible use of data is defined as ensuring transparency, a high level of data protection,
and the creation of sustainable value for the business and its stakeholders.
Kesko’s human rights commitments are listed in section G1 Business Conduct, Corporate
culture and business conduct policies (G1-1). Kesko did not identify any suspected or
confirmed human rights violations related to consumers or end-users in 2025.
Making healthy choices easier for consumers and
end-users
As an operator in the retail sector, Kesko has opportunities within the grocery trade to
facilitate healthier food choices for its customers. To support consumers in making healthier
choices, Kesko is committed to reformulating the nutritional content of its private label
products in the grocery trade by reducing the levels of salt, sugar and saturated fat in the
products. Nutritional reformulation is focused especially on everyday basic products, thereby
reducing customers’ intake of salt, sugar and saturated fat. In the grocery trade division,
responsibility for advancing the targets for reformulating the nutritional content of private
label products lies with the Senior Vice President, Commerce, chain operations.
Product safety
Providing high-quality products that meet customer expectations is one of the cornerstones
of Kesko’s operations. Each of Kesko’s three divisions has its own defined operating
principles and processes for ensuring product safety and quality. The divisions’ different
product categories and business models require division-specific principles related to
product safety. The President of each division is responsible for ensuring the implementation
of the principles for product safety and quality.
Grocery trade
In the grocery trade, quality assurance is based on self-control throughout the chain. Each
stage, such as purchasing, storage, transport, grocery stores and cash-and-carry outlets, has
its own documented self-control plan. The self-control plans describe the measures to
manage food safety at different stages of the food chain. In production, the self-control plans
are HACCP-based (Hazard Analysis and Critical Control Points) and are based on the
identification of food safety hazards. The self-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.
Kesko Logistics, which is responsible for transportation and warehousing for K-food stores
and Kespro, as well as Kesko’s subsidiaries Reinin Liha and Kalatukku E. Eriksson, have a
certified food safety management system (FSSC 22000). The food safety management
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
they are launched on the market. Samples of products on the market are taken according to
an annual sampling plan based on a product group-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.

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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 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, the ability to respond to
various exceptional situations, and the continuous improvement of operations.
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 any faults requiring repair are identified
before the car is resold. As part of the evaluation process, a vehicle assessment card is
completed with the customer using a condition assessment tool, and the customer confirms
the information by signing it. In addition, comprehensive data on the car is collected for
resale purposes.
Data protection
Kesko’s data protection principles are described in the data protection policy and the K Code
of Conduct. The right to the protection of personal data is a fundamental right of every
individual. The data protection policy defines the principles, practices and responsibilities to
ensure the lawful processing of personal data and a high level of data protection at Kesko.
The data protection policy applies to the operations of Kesko Group companies in all
countries where Kesko operates. Data protection is closely linked to information security, the
principles of which are defined in Kesko’s information security policy. The data protection
policy, the information security policy and the K Code of Conduct have been approved by
Kesko’s Board of Directors. Kesko’s President and CEO has overall responsibility for the
implementation and management of data protection. Business and group management are
responsible for the implementation and oversight of data protection within their respective
units. The data protection policy is owned by K Legal and Sustainability, which is responsible
for updating the policy.
Each business unit or controller assesses and monitors the implementation of data protection
in its own operations. Data protection officers in their respective areas of responsibility are
responsible for developing, training and supervising data protection practices.
A risk-based approach is the basis for data protection. Data protection management is an
essential part of Kesko’s risk management. To ensure the effective implementation of data
protection, Kesko carries out data protection risk assessments at the planning stage of
personal data processing and as part of the annual risk assessment. Particular attention is
paid to situations where the processing of personal data is outsourced.
At the end of 2025, Kesko’s Board of Directors approved an updated data protection policy,
which will enter into force on 1 January 2026. The updated data protection policy does not
include significant changes to the key principles of data protection. The updated policy
clarifies the content of the policy, responsibilities and the organisation of data protection.

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Processes for engaging with consumers and
end-users (S4-2)
Kesko provides numerous channels for engaging with consumer customers and for giving
feedback. In Finland, Kesko’s key channels include the Hymy customer feedback system,
customer satisfaction surveys conducted twice a year for K‑food stores and K‑Rauta stores, a
continuous pulse‑type NPS survey (NPS: Net Promoter Score), and the K‑Kylä customer
community. Regular customer satisfaction surveys and the monitoring of the Net Promoter
Score (NPS) provide Kesko with up-to-date information on customer experience and
satisfaction, as well as on the effectiveness of actions directed at consumers or end-users.
Customer feedback and customer experience surveys are continuously utilised to develop
the customer experience in stores, the online store and other digital channels. In Finland, one
key engagement channel for customers is the K‑Kylä customer community, which is used
across all three divisions. K‑Kylä provides a channel for understanding customers’
experiences, expectations and needs. The aim of the K‑Kylä customer community is to
increase customer understanding and to develop business in a customer-oriented way.
Through the community, Kesko receives qualitative information that complements other
customer data and supports development work, for example in product selections, store and
service concepts and customer communications. Based on the results of studies, Kesko can,
for example, refine product selections, develop the characteristics of private label products
and improve the usability of services. In this way, K‑Kylä supports the development of
Kesko’s business and helps to direct actions in line with customer needs.
Through the K‑Kylä customer community, Kesko can communicate with members through
surveys or recruit members to participate in interviews or user testing. In 2025,
approximately 90 studies were conducted in K‑Kylä, generating around 87,000 individual
responses. During 2025, the K‑Kylä customer community grew, and at the end of the year it
had approximately 68,000 (44,000) members.
Kesko has processes and channels that enable engagement with customers in matters
related to data protection. In Finland, Kesko has a public data protection portal on its
website, which provides information and guidance related to data protection. An individual
may submit requests concerning their personal data through the data protection portal or by
contacting register-specific contact points or customer service channels. Questions and
requests raised are responded to without undue delay.
Data subjects may contact the data protection officer in all matters relating to the processing
of their personal data and to the exercise of their rights under data protection law. The data
protection officer facilitates the handling of such contacts and requests, and ensures that the
data subject receives a response without undue delay. The contact details of the data
protection officer are provided in each data protection notice.
Processes to remediate negative impacts and
channels for consumers and end-users to raise
concerns (S4-3)
Kesko has channels through which consumers or end-users can contact Kesko to raise
concerns and to support the remediation of potential negative impacts. All Kesko business
areas have websites through which customers can provide feedback, report an issue or
submit a product complaint. The packaging of Kesko’s private label products includes
Kesko’s customer service contact details. Customers may also contact Kesko’s customer
service by telephone or contact Kesko through various social media channels. In addition,
stores forward product feedback to Kesko.
Feedback received through different channels is recorded in customer service systems,
which also record the progress and resolution of the feedback. Feedback and product
complaints are monitored, and multiple instances of feedback on the same issue received
within a short period lead to further investigation and, where necessary, corrective measures.
In the grocery trade, Kesko introduced a new customer service system at the beginning of
2025, improving the monitoring of customer satisfaction in customer service. The average
customer satisfaction of the grocery trade’s Consumer Services was 94% in 2025. Senior
operational responsibility for the communication channels and their functioning lies with the
President of each division.

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In 2025, the grocery trade’s Consumer Services received a total of approximately 25,700
(25,600) instances of customer feedback related to private label products, of which
approximately 15,800 (18,500) were product complaints. In the building and technical trade,
the total number of customer feedback in K‑Rauta was approximately 37,600 (39,400), of
which approximately 10,900 (11,200) were product complaints.
In relation to suspected misconduct, consumers and end-users can also submit a report
through the SpeakUp channel. The SpeakUp channel is described in more detail in section
G1 Business Conduct of the sustainability statement. However, the SpeakUp channel is not
specifically targeted as a communication channel for consumers and end-users, although it is
open to consumers. Kesko does not separately assess consumers’ and end-users’ trust in the
SpeakUp channel.
Kesko has defined a process for handling information security incidents. If data protection is
suspected to have been compromised, the matter is investigated without undue delay. The
investigation involves, as appropriate, representatives of the relevant business unit, the
information security and risk management teams, and the data protection officer. Kesko
documents all information security incidents in accordance with legislative requirements and,
where a personal data breach is confirmed, notifies the data protection authority when the
notification threshold is met. Kesko also notifies the individual whose data protection has
been compromised without undue delay in situations required by the General Data
Protection Regulation (GDPR).
Actions (S4-4)
Product safety
In the grocery trade, the Quality and Product Development Unit decides on the recall of
private label products 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 decides 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 2025, a total of 149 (170) product recalls were carried out in the grocery trade. Of these,
34 (34) concerned private label or own import products. In other cases, Kesko assisted
product manufacturers in product recalls. In 2025, there was a total of 1 (3) public recall
involving private label products where a defect or error in the product may have health
impacts.
In the building and technical trade, quality managers, together with the product manager, are
responsible for the recall of private label products and the 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 recalls of private label or
own import products in 2025 that would have required a product recall from the customer.
During 2024, one product withdrawal was carried out, where a product was withdrawn from
sales channels. There were no corresponding cases in 2025.
In 2025, a total of 19 (22) recall campaigns were initiated for the brands represented by
K-Auto. In addition, during 2025 Kesko became aware of a total of five fires involving
rechargeable vehicles. In situations where Kesko becomes aware of a fire involving a car
brand imported by Kesko, Kesko contacts the vehicle manufacturer, as it does in the case of
all safety deviations. Kesko and the vehicle manufacturer have their own processes for
responding to safety deviations.
Data protection
Kesko has a data protection compliance p rogramme to ensure that competence and
awareness of guidelines remain at a high level in matters related to data protection. The
compliance programme aims to systematically promote a data protection culture by
providing regular training and internal communications on data protection topics. We strive
for a proactive approach and are committed to continuously improving data protection
practices. We regularly assess the data protection policy and other data protection
guidelines, procedures and technologies to identify areas for improvement and to ensure that
we can maintain a risk-appropriate level of security when processing personal data.

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Kesko’s data protection guidelines include the Group data protection manual and
supplementary country-specific instructions. The data protection guidelines apply to all
personnel and include the key rules, operating instructions and processes for implementing
data protection as well as for identifying and handling incidents and risks. 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. Each
employee handling personal data must complete the data protection online training every
two years.
Regular data protection risk assessment provides the guidelines for the annual data
protection plan and data protection programme. In addition, Kesko carries out internal and
commissions external data protection audits on a needs- and risk-based basis.
In 2025, Kesko processed in Finland 936 (875) data protection requests submitted through
its data protection portal. In addition, requests were processed through other channels. In
Finland, Kesko Group detected and investigated a total of 273 (347) information security
breaches in its operations in 2025, of which 44 (63) were also reported to the Office of the
Data Protection Ombudsman. In other operating countries, a total of 8 (6) information
security breaches were detected, of which 4 (3) were reported to the local competent
supervisory authorities. In individual cases, the affected data subject was also notified of the
information security breach.
Neither Kesko nor its subsidiaries received any remarks regarding their operations from the
Data Protection Ombudsman during 2025. On the basis of complaints received, the Office of
the Data Protection Ombudsman issued three requests for additional information, and
responses were provided within the required timeframe.
Targets and progress towards targets (S4-5)
Kesko has set a target to reformulate the nutritional content of its private label products by
reducing the levels of salt, sugar and saturated fat. Kesko has not set measurable time‑bound
targets related to product safety and data protection, but it regularly monitors certain
metrics related to these topics.

| Base year | 2025 | 2024 | Target
The amount of salt in private label products, kg | 2021 | 18,940 | 15,353 | 2025 | 50,000
The amount of sugar in private label products, kg | 2021 | 233,643 | 97,171 | 2025 | 200,000
The amount of saturated fat in private label products, kg | 2021 | 38,393 | 32,347 | 2025 | 50,000

During 2025, the nutritional content of a total of 36 (42) products was reformulated, which
resulted in a total reduction of 3,499 kg (7,535 kg) in salt, 135,636 kg (19,833 kg) in sugar and
5,968 kg (4,174 kg) in saturated fat. By the end of 2025, the nutritional content of a total of
125 (89) private label products had been reformulated.
Based on the nutritional reformulations completed by the end of 2025, Kesko achieved its
target for reducing the amount of sugar in private label products. The targets for reducing
the amounts of salt and saturated fat were not met by the 2025 target level. Kesko will
continue to monitor and further develop the nutritional content of its private label products,
with a particular focus on reducing the amounts of salt and saturated fat.
Accounting policies
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.

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GOVERNANCE INFORMATION
G1 BUSINESS
CONDUCT

Corporate culture and business conduct policies (G1-1) ................................................. | 106
Management of relationships with suppliers (G1-2) .............................................. | 108
Prevention of corruption and bribery (G1-3) .............................................................. | 108
Confirmed incidents of corruption and bribery (G1-4) ................................................. | 109

Material impacts, risks and opportunities (ESRS 2 SBM-3)
Material impacts, risks and opportunities

Topic | Description | Management
Corporate culture | Potential positive impact: 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.
Corporate culture | Risk: Increasing sustainability regulation may lead to changes in the business model and require investments to meet legislative requirements. | Changes in regulation are monitored actively and the impact of changes on business is assessed proactively.
Protection of whistleblowers | Potential positive impact: Kesko has a confidential SpeakUp channel that is open to personnel, customers, suppliers and other stakeholders. Kesko has anti- discrimination and anti-harassment principles, 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 impact: 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 impact: 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.

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Corporate culture and business conduct
policies (G1-1)
Ethical business conduct and compliance in Kesko Group is ensured by complying with
legislation as well as 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 Conduct.
Kesko‘s operations are also guided by the UN’s Guiding Principles on Business and Human
Rights, Global Compact initiative and Sustainable Development Goals (SDG’s), the
UN Universal Declaration of Human Rights and the Convention on the Rights of the Child, as
well as the International Chamber of Commerce’s business charter for sustainable
development and rules on combatting corruption. Ethical conduct and sustainability are
integral to Kesko’s business strategy and sustainability objectives. We monitor the
implementation of our business culture and ethical principles using indicators such as
training completion rates, the number of SpeakUp reports, and employee confidence in
reporting channels. In late 2025, Kesko launched new people principles that emphasise fair
play – openness and honesty – and sustainability, which guide all activities.
Putting the K Compliance operating model into practice is supported by the K Compliance
programmes approved by Kesko’s President and CEO. The K Compliance programmes are
available on Kesko’s intranet. In 2025, Kesko’s K Compliance programmes covered data
protection, competition law, trade sanctions and export controls, as well as the prevention of
corruption and bribery. A new Sustainability K Compliance Programme was approved in
2025. The programme systematically enhances Kesko’s due diligence process and the
management of goods and service suppliers, taking into account sustainability requirements
applicable to Kesko. Its purpose is to manage risks related, for example, to human rights, the
environment, corruption and ethical business conduct in the supply chain. The programme
establishes both the foundation for the supplier due diligence process and the basis for risk
assessment and risk management. 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 K Code of Conduct is available
on Kesko’s website and sets out, among other things, guidance on responsible
decision‑making, respect for human rights, zero tolerance for corruption, equal and fair
treatment, responsible data handling, commitment to fair and free competition, minimising
impacts on climate and nature, supporting employee wellbeing and success, and responsible
trading. 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. Together, the K Compliance operating model and the K Code of Conduct support
the development of a strong culture of doing the right thing.
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. In
2025, 94% (85%) of Kesko employees submitted the annual confirmation. The confirmation
is collected from all Kesko employees, excluding those on longer sick, study, family or similar
leave at the time of collection, or employees working on an on‑call basis. For logistics
employees, those who signed an employment contract during the calendar year, in which
they commit to complying with the K Code of Conduct are not requested to provide a
separate annual confirmation.
The focus areas of ensuring compliant and ethical business conduct include the training of
personnel and performance of compliance audits in accordance with the annual plan. In
2024, 88% of all Kesko employees completed the K Code of Conduct training; in 2025, all
new employees were required to complete the training. No group‑wide K Code of Conduct
training round was arranged in 2025. 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.

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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 and its operations, as well
as in the reporting of grievances in general, with the K Voices employee engagement survey
conducted every other year. Awareness and trust in the SpeakUp channel or in raising
concerns among actors in the upstream or down stream the value chain, or among
consumers and end‑users, are not assessed separately. 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 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 manager, 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 84 (53) reports concerning Kesko were submitted through the SpeakUp channel in
2025. 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 proved.
Targets related to corporate culture

| Base year | 2025 | Target
Employee commitment to K Code of Conduct, % | 2024 | 85 | 94 | 2030 | 100

Kesko has set a target of strengthening employee commitment to, and awareness of, the
K Code of Conduct. Progress is monitored through the annual K Code of Conduct
confirmation. The target is to achieve a 100% annual confirmation rate by 2030. The 2025
confirmation rate indicates that we are well on track to meet the target, although no formal
interim milestones have been set.

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Management of relationships with suppliers (G1-2)
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.
Kesko’s supplier agreements in the building and technical trade include a sustainability
attachment that sets out 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 covers topics related to climate, biodiversity, environmental
protection, social responsibility and conflict minerals, as well as chemical guidelines. The
attachment was introduced in 2024 and is being incorporated into an increasing number of
supplier agreements as they are updated.
By applying the principles of the K Code of Conduct for business partners, we help ensure
that observed by our B2B customer are upheld throughout our value 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 their own principles of a similar level and
the aforementioned sustainability attachment. Social responsibility across 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.
In 2025, Kesko’s President and CEO approved the Sustainability K Compliance Programme.
The programme aims to systematically enhance Kesko’s due diligence processes and the
management of suppliers and services providers, taking into account the sustainability
requirements and commitments applicable to Kesko.
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. In 2025, Kesko launched an online K Code of Conduct training intended for its
partners, particularly for suppliers. The training is available on Kesko’s website at kesko.fi in
all the languages of the countries where Kesko operates, as well as in Chinese. The training is
designed especially for small and medium-sized suppliers.
Prevention of corruption and bribery (G1-3)
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. Those working with risk functions must complete the general K Code of
Conduct eLearning — including the section on corruption and bribery — when starting as
new employees and in line with the Group‑wide training cycle. In 2025, in addition to the
eLearning, workshop‑style anti‑corruption and anti‑bribery trainings were arranged for
employees in defined risk functions, with 81% participation in Finland, Sweden and Estonia.

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Training will commence in Norway, Denmark, Poland, Latvia and Lithuania in 2026. Kesko’s
K Code of Conduct includes anti-corruption and anti-bribery guidance, 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 are also trained on the topic to the same
extent as executive management.
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 operating model throughout Kesko‘s
entire operation chain requires knowing our partners and ensuring their commitment to the
contract terms. Kesko‘s business partners are expected to have an operating practices that
prevent 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 termination of the contractual relationship. Kesko may seek compensation from
a business partner for damages caused by the violation.
Confirmed incidents of corruption or
bribery (G1-4)
In 2025, no confirmed cases of corruption or bribery came to Kesko’s attention, and no
related court judgments or fines were imposed. All SpeakUp reports at Kesko, including
those concerning corruption or bribery, are independently investigated by Kesko’s
Governance, Compliance & Ethics function. SpeakUp cases are reported regularly to the
Audit Committee of the Board of Directors and, where the investigation so requires, to other
management. Kesko cooperates with the authorities as required by law.

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APPENDICES TO SUSTAINABILITY STATEMENT
List of data points that derive from other EU legislation

Disclosure requirement and related data point | 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 | 25
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 25
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 |  |  |  | Material | 28
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 | 55, 56
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 | 55

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Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
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 | 61, 62
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 | 63
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 |  |  |  | Material | 63
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 | 63
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 | 66
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 | 67
ESRS E1-7 GHG removals and carbon credits paragraph 56 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Material | 56
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 |

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Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
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 |
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 |  |  |  | Material | 39
ESRS 2- IRO 1 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 |  |  |  | Material | 39
ESRS 2- IRO 1 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 |  |  |  | Material | 39
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 |  |  |  | Phased-in |
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 |  |  |  | Phased-in |
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 |  |  |  | Phased-in |

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Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 |  |  |  | Material | 76
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 |  |  |  | Material | 76
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 of Table #1of Annex 1 |  |  |  | Non-material |
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex I |  |  |  | Non-material |
ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I |  |  |  | Material | 80
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 |  | Non-material |
ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I |  |  |  | Non-material |
ESRS S1-1 workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I |  |  |  | Material | 80, 81
ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I |  |  |  | Material | 82, 83
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 | 91
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 | 91
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 | 91
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I |  |  |  | Material | 91
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I |  |  |  | Material | 92
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 |

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Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
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 | 93, 94
ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 |  |  |  | Material | 94
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 |  |  |  | Material | 94, 95
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) |  | Material | 95
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 | 94, 95
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 | 97
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 | 100
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) |  | Material | 100
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Material | 100
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 | 107

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Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Materiality | Page
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 | 109
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 |  |  |  | Non-material |

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FINANCIAL STATEMENTS

Consolidated financial statements (IFRS) .................... | 117
Consolidated income statement ...................................... | 117
Consolidated statement of comprehensive income ...... | 117
Consolidated statement of financial position ................. | 118
Consolidated statement of cash flows ............................ | 119
Consolidated statement of changes in equity ................ | 120
1. General accounting policies ....................................... | 121
1.1 Basic information about the Company .................... | 121
1.2 Basis of preparation .................................................. | 121
1.3 Key accounting estimates and assumptions .......... | 121
1.4 Significant judgements applied in the application of accounting policies .................................................... | 122
1.5 Consolidation principles ........................................... | 122
1.6 Discontinued operations and non-current assets classified as held for sale and related liabilities ........... | 123
1.7 New IFRS standards and IFRIC interpretations and the impact of new and updated standards ........... | 124
2. Financial results ........................................................... | 125
2.1 Revenue recognition ................................................ | 125
2.2 Segment information ............................................... | 125
2.3 Material and services ............................................... | 134
2.4 Other operating income .......................................... | 134
2.5 Operating expenses ................................................. | 134
2.6 Foreign exchange differences recognised in operating profit ............................................................... | 135
2.7 Income tax ................................................................. | 135
2.8 Earnings per share ................................................... | 138
2.9 Additional information on the statement of cash flows ................................................................................. | 138

3. Capital employed ......................................................... | 139
3.1 Acquisitions ............................................................... | 139
3.2 Property, plant and equipment ............................... | 141
3.3 Intangible assets ....................................................... | 142
3.4 Leases ........................................................................ | 146
3.5 Inventories ................................................................ | 148
3.6 Current receivables .................................................. | 149
3.7 Pension assets ........................................................... | 150
3.8 Shares in associates and joint ventures ................. | 154
3.9 Provisions .................................................................. | 155
4. Capital structure and financial risks ......................... | 156
4.1 Capital management ................................................ | 156
4.2 Shareholders' equity ................................................ | 158
4.3 Financial risks ........................................................... | 159
4.4 Finance income and expenses ................................ | 165
4.5 Financial assets and liabilities by category ............ | 165
4.6 Commitments and contingencies ........................... | 169
5. Other ............................................................................. | 170
5.1 Subsidiaries, associates, joint ventures and proportionately consolidated mutual real estate companies ....................................................................... | 170
5.2 Related party transactions ...................................... | 172
5.3 Share-based compensation ..................................... | 174
5.4 Legal disputes and possible legal proceedings .... | 176
5.5 Events after the balance sheet date ....................... | 176
Parent company's financial statements (FAS) ............. | 177
Signatures ......................................................................... | 193

Auditor's report ............................................................... | 194
Assurance report on the sustainability statement ...... | 198
Independent auditor’s report on the ESEF consolidated financial statements of Kesko Oyj ......... | 201

This report is a translation of the Finnish original.

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CONSOLIDATED FINANCIAL STATEMENTS (IFRS)
Consolidated income statement

€ million | Note | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Net sales | 2.1 | 12,474.7 | 11,920.1
Materials and services | 2.3 | -10,702.7 | -10,184.1
Change in inventory |  | 36.3 | -21.6
Other operating income | 2.4 | 999.4 | 994.6
Employee benefit expense | 2.5 | -911.9 | -842.5
Depreciation, amortisation and impairment charges | 3.2 3.3 | -239.1 | -247.9
Depreciation and impairment charges for right-of-use assets | 3.4 | -359.1 | -375.5
Other operating expenses | 2.5 | -685.8 | -684.5
Share of result of joint ventures |  | 19.5 | 20.9
Operating profit |  | 631.3 | 579.5
Interest income and other finance income | 4.4 | 14.9 | 17.7
Interest expense and other finance costs | 4.4 | -49.6 | -49.5
Interest expense for lease liabilities | 4.4 | -89.4 | -78.6
Foreign exchange differences | 4.4 | -1.2 | -1.3
Total finance income and expenses | 4.4 | -125.4 | -111.7
Share of result of associates |  | 4.4 | 3.8
Profit before tax |  | 510.3 | 471.5
Income tax | 2.7 | -105.5 | -92.0
Profit for the period |  | 404.8 | 379.6
Profit for the period attributable to |  |  |
Owners of the parent |  | 404.2 | 379.1
Non-controlling interests |  | 0.7 | 0.4
Earnings per share for profit attributable to owners of the parent |  |  |
Basic and diluted, € | 2.8 | 1.02 | 0.95

Consolidated statement of comprehensive income

€ million | Note | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Profit for the period |  | 404.8 | 379.6
Items that will not be reclassified subsequently to profit or loss |  |  |
Actuarial gains and losses | 2.7 3.7 | 14.1 | 37.6
Items that may be reclassified subsequently to profit or loss |  |  |
Currency translation differences on foreign operations | 2.7 | 19.0 | -31.6
Share of other comprehensive income of associates and joint ventures | 2.7 | - | 0.5
Cash flow hedge revaluation | 2.7 | 3.3 | -7.7
Total comprehensive income for the period, net of tax |  | 36.4 | -1.2
Total comprehensive income for the period |  | 441.2 | 378.3
Comprehensive income for the period attributable to |  |  |
Owners of the parent |  | 440.5 | 377.9
Non-controlling interests |  | 0.7 | 0.4

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Consolidated statement of financial position

€ million | Note | 31 Dec. 2025 | 31 Dec. 2024
ASSETS |  |  |
Non-current assets |  |  |
Property, plant and equipment | 3.2 | 2,754.6 | 2,403.3
Goodwill | 3.3 | 721.6 | 643.0
Intangible assets | 3.3 | 212.5 | 234.2
Right-of-use assets | 3.4 | 1,906.5 | 1,867.7
Shares in associates and joint ventures | 3.8 5.1 | 263.2 | 239.7
Other investments | 4.3 4.5 | 15.7 | 14.8
Non-current receivables | 4.3 4.5 | 68.2 | 65.9
Deferred tax assets | 2.7 | 20.0 | 16.9
Pension assets | 3.7 | 147.4 | 127.5
Total non-current assets |  | 6,109.8 | 5,612.9
Current assets |  |  |
Inventories | 3.5 | 1,204.0 | 1,101.5
Interest-bearing receivables | 3.6 4.5 | 0.7 | 4.2
Trade receivables | 3.6 4.3 4.5 | 1,014.8 | 957.9
Income tax assets | 3.6 | 18.0 | 12.9
Other non-interest-bearing receivables | 3.6 4.5 | 309.6 | 287.1
Other financial assets | 4.3 4.5 | - | 15.0
Cash and cash equivalents | 4.5 | 166.2 | 473.1
Total current assets |  | 2,713.3 | 2,851.7
Non-current assets classified as held for sale |  | - | 6.6
Total assets |  | 8,823.1 | 8,471.2

€ million | Note | 31 Dec. 2025 | 31 Dec. 2024
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 | 266.8
Currency translation differences | 4.2 | -84.3 | -103.3
Revaluation reserve | 4.2 | -0.1 | -3.4
Treasury shares |  | -17.2 | -22.8
Retained earnings |  | 2,237.4 | 2,189.7
Equity |  | 2,797.7 | 2,722.1
Non-controlling interests |  | 29.0 | 12.9
Total equity |  | 2,826.7 | 2,734.9
Non-current liabilities |  |  |
Interest-bearing non-current liabilities | 4.3 4.5 4.6 | 1,285.9 | 1,054.0
Lease liabilities | 4.5 4.6 | 1,752.9 | 1,628.8
Non-interest-bearing non-current liabilities | 4.3 4.5 | 61.3 | 42.8
Deferred tax liabilities | 2.7 | 101.6 | 76.3
Provisions | 3.9 | 4.3 | 6.3
Total non-current liabilities |  | 3,206.0 | 2,808.1
Current liabilities |  |  |
Current interest-bearing liabilities | 4.3 4.5 4.6 | 189.3 | 291.3
Lease liabilities | 4.5 4.6 | 344.6 | 422.2
Trade payables | 4.3 4.5 | 1,388.3 | 1,404.4
Other non-interest-bearing liabilities | 4.3 4.5 | 336.8 | 342.4
Income tax liabilities |  | 9.3 | 12.2
Accrued liabilities | 4.3 4.5 | 507.7 | 442.4
Provisions | 3.9 | 14.5 | 13.2
Total current liabilities |  | 2,790.4 | 2,928.1
Liabilities related to non-current assets classified as held for sale |  | - | 0.1
Total liabilities |  | 5,996.4 | 5,736.2
Total equity and liabilities |  | 8,823.1 | 8,471.1

|  | 119

Consolidated statement of cash flows

€ million | Note | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Cash flows from operating activities |  |  |
Profit before tax |  | 510.3 | 471.5
Adjustments |  |  |
Depreciation according to plan |  | 225.5 | 207.4
Depreciation and impairment for right-of-use assets |  | 359.1 | 375.5
Finance income and expenses |  | 36.0 | 33.1
Interest expense for lease liabilities |  | 89.4 | 78.6
Other adjustments | 2.9 | -16.8 | 22.2
|  | 693.1 | 716.9
Change in working capital |  |  |
Current non-interest-bearing receivables, increase (-)/decrease (+) |  | -17.7 | 43.8
Inventories, increase (-)/decrease (+) |  | -36.3 | 25.5
Current non-interest-bearing liabilities, increase (+)/ decrease (-) |  | -66.5 | -44.8
|  | -120.5 | 24.5
Interest paid and other finance costs |  | -37.7 | -45.6
Interest paid on lease liabilities |  | -89.4 | -78.6
Interest received |  | 14.7 | 16.9
Dividends and capital repayments received from associated companies and joint ventures |  | 5.5 | 22.3
Dividends received from others |  | 0.6 | 0.5
Income taxes paid |  | -97.0 | -120.2
Net cash flows from operating activities, total |  | 879.7 | 1,008.2

€ million | Note | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Cash flows from investing activities |  |  |
Payments for acquisition of subsidiary shares, net of cash acquired | 3.1 | -156.8 | -151.6
Payments for investments consolidated using the equity method |  | -0.1 | -0.1
Payments for property, plant, equipment and intangible assets | 2.9 | -502.3 | -491.4
Proceeds from sale of property, plant, equipment and intangible assets |  | 102.1 | 45.0
Proceeds from sale of other investments |  | 0.3 | 0.0
Loan receivables and other financial assets, increase (-)/decrease (+) |  | 15.0 | 0.5
Net cash flows from investing activities, total |  | -541.8 | -597.5
Cash flows from financing activities |  |  |
Interest-bearing liabilities, increase (+)/decrease (-) | 4.1 | 63.1 | 534.0
Repayments for lease liabilities | 3.4 4.1 | -358.5 | -370.9
Interest-bearing receivables, increase (-)/ decrease (+) | 4.1 | 7.2 | 3.9
Dividends paid |  | -370.2 | -320.3
Equity capital increases |  | 15.5 | -
Other items |  | -1.8 | 3.5
Net cash flows from financing activities, total |  | -644.7 | -149.8
Change in cash and cash equivalents |  | -306.9 | 260.9
Cash and cash equivalents as at 1 January | 4.5 | 473.1 | 211.9
Translation adjustment and fair value change |  | 0.0 | 0.3
Cash and cash equivalents as at 31 December | 4.5 | 166.2 | 473.1

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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 2025 | 197.3 | 464.7 | -103.3 | -3.4 | -22.8 | 2,189.7 | 12.9 | 2,734.9
Share-based payments |  |  |  |  | 5.7 |  |  | 5.7
Dividends |  |  |  |  |  | -358.3 |  | -358.3
Change in non-controlling interests |  |  |  |  |  | -18.0 | - | -18.0
Transactions with non-controlling interests |  |  |  |  |  |  | 15.5 | 15.5
Other changes |  | -0.0 | - | 0.0 |  | 5.8 |  | 5.8
Transactions with owners, total |  | -0.0 | - | 0.0 | 5.7 | -370.5 | 15.5 | -349.4
Comprehensive income |  |  |  |  |  |  |  |
Profit for the period |  |  |  |  |  | 404.2 | 0.7 | 404.8
Actuarial gains and losses |  |  |  |  |  | 14.1 |  | 14.1
Currency translation differences on foreign operations |  |  | 19.0 |  |  | 0.0 | 0.0 | 19.0
Cash flow hedge revaluation |  |  |  | 3.3 |  | - |  | 3.3
Total other comprehensive income for the period, net of tax |  |  | 19.0 | 3.3 |  | 14.1 | 0.0 | 36.4
Total comprehensive income for the period |  |  | 19.0 | 3.3 |  | 418.3 | 0.7 | 441.2
Balance as at 31 December 2025 | 197.3 | 464.7 | -84.3 | -0.1 | -17.2 | 2,237.4 | 29.0 | 2,826.7
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 |  |  | - | - | -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 | - | -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

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 .

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL ACCOUNTING POLICIES
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 its
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 2026.
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 2025. 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 2025. 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 Key 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
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

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other factors, including expectations of future events that
are believed to be reasonable under the circumstances.
The key 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 Significant judgements applied in the
application of 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 equity 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 loans are included in finance income and
expenses.
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 2025 and 2024.
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.
During the financial reporting period, the Group performed
an impact analysis regarding the implementation of IFRS 18.
Based on the analysis, the new standard will have an impact
on the presentation of the statement of profit or loss and
the information presented in the financial statements. The
most significant changes to the statement of profit or loss
concern the presentation of the share of result of associates
and joint ventures and income from cash and cash
equivalents and investments as well as gains or losses on
disposal of the aforementioned assets, which will be
presented in the investing category in accordance with IFRS
18. In addition, certain finance income and costs and
changes in the fair value of instruments used for hedging
will be presented in the operating category or the investing
category.
The Group uses alternative performance measures to
reflect business performance and profitability alongside
measures based on IFRS financial statements. According to
the impact analysis, some of the performance measures
used qualify as Management-defined Performance
Measures (MPM) as defined in IFRS 18. For these measures,
the financial statements shall, among other things, include
an explanation as to why the measures are used and a
reconciliation to the appropriate subtotal in the IFRS
financial statements. The Group will continue the analysis of
the detailed requirements of the standard and the
preparation of changes impacting the presentation of
financial statements in the 2026 financial reporting period.
Other annual improvements or amendments to existing
standards that become effective on or after 1 January 2026
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 43% (45%) of the
Group’s net sales in 2025. B2B trade accounted for 41% (37%) of the Group’s net sales in
2025. Kesko’s B2C trade accounted for 16% (18%) of the Group’s net sales. The economic
factors of the above‑mentioned business models and their relative share of the Group’s
business volume affect the nature, amount, timing and uncertainty of the revenue and cash
flows included in the consolidated financial statements.
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. Kespro is a foodservice provider and
wholesaler in Finland. In 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. 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 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.
Kesko completed the acquisition of Roslev Trælasthandel A/S in Denmark on
February 1, 2025, CF Petersen & Søn A/S on May 1, 2025, and Tømmergaarden A/S on
June 1, 2025. In the comparison period, Kesko acquired a 90% ownership interest in
Davidsen Koncernen A/S in Denmark. The operations of the K-Rauta chain in Sweden were
discontinued in December 2024.
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,

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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. In the comparison
period the business acquisition of Autotalo Lohja was completed.
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 2025
Profit

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Total
Division net sales | 6,447.4 | 4,685.8 | 1,364.8 | 2.1 | 12,500.2
of which intersegment sales | -15.9 | -0.6 | -8.3 | -0.7 | -25.5
Net sales from external customers | 6,431.5 | 4,685.2 | 1,356.5 | 1.5 | 12,474.7
Change in net sales in local currency excluding acquisitions and disposals, % | 1.0 | 1.4 | 12.0 | - | 2.3
Change in net sales, % | 1.0 | 7.7 | 12.9 | - | 4.7
Other division income | 832.1 | 129.2 | 28.0 | 14.1 | 1,003.4
of which intersegment income | -0.6 | -1.7 | 0.4 | -2.1 | -4.0
Other operating income from external customers | 831.5 | 127.5 | 28.3 | 12.0 | 999.4
Depreciation and amortisation | -120.2 | -53.7 | -36.6 | -28.6 | -239.1
Depreciation and impairment charges for right-of-use assets | -226.9 | -101.2 | -24.4 | -6.6 | -359.1
Share of result of joint ventures | - | 19.5 | - | - | 19.5
Operating profit | 416.6 | 159.2 | 82.4 | -26.9 | 631.3
Items affecting comparability | -1.5 | -19.4 | -0.7 | -2.0 | -23.6
Comparable operating profit | 418.1 | 178.6 | 83.1 | -24.8 | 654.9
Finance income and costs |  |  |  |  | -125.4
Share of result of associates |  |  |  |  | 4.4
Profit before tax |  |  |  |  | 510.3

|  | 128

Assets and liabilities

€ million | Grocery trade | Building and technical trade | Car trade | Common functions | Eliminations | Total
Property, plant, equipment and intangible assets | 1,823.8 | 1,451.4 | 341.2 | 73.7 | -1.3 | 3,688.8
Right-of-use assets | 1,308.9 | 475.9 | 69.7 | 52.0 | - | 1,906.5
Interests in associates and joint ventures and other investments | 6.1 | 181.4 | 0.1 | 91.9 | -0.6 | 278.9
Pension assets | 18.4 | 5.3 | - | 123.8 | - | 147.4
Inventories | 291.3 | 663.4 | 249.3 | - | - | 1,204.0
Trade receivables | 361.8 | 584.5 | 68.4 | 2.1 | -2.1 | 1,014.8
Other non-interest-bearing receivables | 70.8 | 236.0 | 27.9 | 40.0 | -37.2 | 337.5
Interest-bearing receivables | 1.0 | - | - | 58.0 | - | 59.0
Assets included in capital employed | 3,882.0 | 3,597.9 | 756.6 | 441.6 | -41.1 | 8,636.9
Unallocated items |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  | 20.0
Cash and cash equivalents |  |  |  |  |  | 166.2
Total assets | 3,882.0 | 3,597.9 | 756.6 | 441.6 | -41.1 | 8,823.1
Trade payables | 536.7 | 769.3 | 62.6 | 20.3 | -0.7 | 1,388.3
Other non-interest-bearing liabilities | 321.5 | 317.6 | 131.5 | 54.0 | -18.2 | 806.5
Provisions | 0.3 | 6.4 | 11.6 | 0.5 | - | 18.8
Liabilities included in capital employed | 858.5 | 1,093.3 | 205.7 | 74.9 | -18.9 | 2,213.5
Unallocated items |  |  |  |  |  |
Interest-bearing liabilities |  |  |  |  |  | 1,474.6
Lease liabilities |  |  |  |  |  | 2,098.0
Other non-interest-bearing liabilities |  |  |  |  |  | 108.7
Deferred tax liabilities |  |  |  |  |  | 101.6
Total liabilities | 858.5 | 1,093.3 | 205.7 | 74.9 | -18.9 | 5,996.4
Total capital employed as at 31 December | 3,023.5 | 2,504.6 | 550.9 | 366.7 | -22.2 | 6,423.4
Average capital employed | 2,974.7 | 2,430.6 | 536.7 | 371.8 | -6.2 | 6,307.7
Return on capital employed, %, comparable | 14.1 | 7.3 | 15.5 | - | - | 10.4
Number of personnel as at 31 December | 8,143 | 8,075 | 1,809 | 964 |  | 18,991
Average number of personnel converted into full-time employees | 6,264 | 6,853 | 1,638 | 911 |  | 15,665

|  | 129

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

|  | 130

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 | - | 0.0 | - | 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

|  | 131

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 | 2025 | 2024
Gains on disposal | +15.7 | +11.4
Losses on disposal | -2.8 | -1.6
Impairment charges | -13.7 | -40.0
Structural arrangements | -22.8 | -40.4
Items in operating profit affecting comparability, total | -23.6 | -70.6

Items related to structural arrangements are presented on the following lines in the
consolidated income statement: other operating income (€+16.0 million), materials and
services (€-1.6 million), change in inventory (€-0.4 million), employee benefit expenses
(€-3.9 million), amortisation and impairment charges (€-17.8 million), amortisation and
impairment charges for right-of-use assets (€-6.5 million) and other operating expenses
(€-9.4 million).
In 2024 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).

|  | 132

Reconciliation of alternative performance measures to IFRS financial statements

€ million | 2025 | 2024
Operating profit, comparable |  |
Operating profit | 631.3 | 579.5
Net of |  |
Items in operating profit affecting comparability | -23.6 | -70.6
Operating profit, comparable | 654.9 | 650.1
Return on capital employed, comparable, % |  |
Operating profit, comparable | 654.9 | 650.1
Capital employed, average | 6,307.7 | 5,758.7
Return on capital employed, comparable, % | 10.4 | 11.3
Comparable change in net sales |  |
Net sales, grocery trade | 6,447.4 | 6,381.4
Effect of structural arrangements | -1.1 |
Change in net sales, comparable, % | 1.0 |
Net sales, building and technical trade | 4,685.8 | 4,351.6
Foreign exchange effects | -2.3 |
Effect of acquisitions and divestments and structural arrangements | -302.8 | -31.0
Change in net sales, comparable, % | 1.4 | -6.0
Net sales, car trade | 1,364.8 | 1,209.4
Effect of acquisitions and divestments | -10.2 |
Change in net sales, comparable, % | 12.0 |
Net sales, Group | 12,474.7 | 11,920.1
Foreign exchange effects | -2.3 |
Effect of acquisitions and divestments | -314.0 | -31.0
Change in net sales, comparable, % | 2.3 | -2.3

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 the reporting period

|  | 133

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 and personnel are presented by geographical location.
Net sales are mostly derived from sales of goods. The amount derived from sales of services
is minor.
Kesko Group does not have revenue derived from a single customer, which exceeds 10% of
Kesko Group’s total revenue.

2025 € million | Finland | Other Nordic countries | Baltic countries | Others | Eliminations | Total
Net sales | 9,762.3 | 2,188.4 | 153.5 | 378.4 | -7.9 | 12,474.7
Assets included in capital employed | 6,358.0 | 1,828.3 | 274.4 | 176.2 |  | 8,636.9
Average number of personnel converted into full-time employees | 10,400 | 3,961 | 357 | 948 |  | 15,665

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

|  | 134

2.3 Material and services

€ million | 2025 | 2024
Materials and services | -10,470.9 | -9,959.5
External services | -231.7 | -224.6
Total | -10,702.7 | -10,184.1

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

€ million | 2025 | 2024
Service fees | 780.2 | 779.2
Lease income | 50.8 | 50.6
Gains on disposal of property, plant, equipment and intangible assets | 13.9 | 12.6
Realised gains on derivative contracts and changes in fair value | 2.0 | 3.6
Others | 152.4 | 148.6
Total | 999.4 | 994.6

Service fees mainly comprise 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 | 2025 | 2024
Salaries and fees | -745.4 | -686.2
Social security costs | -56.5 | -54.8
Pension costs |  |
Defined benefit plans | 2.1 | 0.2
Defined contribution plans | -103.4 | -94.7
Share based payments | -8.7 | -7.0
Total | -911.9 | -842.5

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

| 2025 | 2024
Grocery trade | 6,264 | 6,346
Building and technical trade | 6,853 | 6,538
Car trade | 1,638 | 1,556
Common operations | 911 | 908
Total | 15,665 | 15,347

Average number of personnel by segment is calculated as full-time equivalent employees.
Other operating expenses

€ million | 2025 | 2024
Marketing costs | -202.1 | -201.0
Property and store site maintenance expenses | -196.2 | -198.5
ICT expenses | -125.3 | -123.4
Lease payments in the income statement | -7.4 | -8.5
Losses on disposal of property, plant, equioment and intangible assets | -2.7 | -2.1
Realized losses on derivative contracts and changes in fair value | -5.1 | -1.5
Other operating expenses | -147.0 | -149.6
Total | -685.8 | -684.5

|  | 135

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 | 2025 | 2024
Audit | -1.5 | -1.3
Other statutory services | -0.1 | -0.1
Tax consultation | -0.0 | -
Other services | -0.1 | -0.1
Total | -1.7 | -1.5

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

€ million | 2025 | 2024
Net sales | -0.2 | -0.1
Other operating incom | 2.0 | 3.6
Materials and services | 0.0 | -0.5
Other operating expenses | -5.1 | -1.5
Total | -3.2 | 1.5

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.
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.

|  | 136

€ million | 2025 | 2024
Current tax | -93.0 | -114.8
Tax for prior years | 1.0 | -0.3
Change in deferred taxes | -13.5 | 23.1
Total | -105.5 | -92.0

Group’s current tax expense in 2025 does not include top-up taxes arising under the Pillar
Two minimum tax rules.
Reconciliation between tax expense shown in the income statement
and tax calculated at parent's tax rate

€ million | 2025 | 2024
Profit before tax | 510.3 | 471.5
Tax at parent's tax rate 20.0% | -102.1 | -94.3
Effect of foreign subsidiaries' different tax rates | -0.3 | 0.1
Effect of tax-free income | 1.3 | 2.4
Effect of expenses not deductible for tax purposes | -6.6 | -11.6
Effect of unrecognised deferred tax assets | -3.9 | 0.1
Effect of consolidation of share of result of associates and joint ventures | 4.8 | 4.9
Tax for prior years | 1.0 | -0.3
Adjustment and revaluation of deferred tax for previous years | 0.3 | 6.7
Effect of changes in tax rates | 0.0 | -0.0
Others | -0.0 | 0.0
Tax charge | -105.5 | -92.0
Effective tax rate % | 20.7 | 19.5

Balance sheet division of net deferred tax assets (liabilities)

€ million | 2025 | 2024
Deferred tax assets | 20.0 | 16.9
Deferred tax liabilities | 101.6 | 76.3
Total | -81.7 | -59.4

Movements in deferred ta x in 2025

€ million | 1 Jan. 2025 | Income statement charge | Tax charged/ credited to equity | Exchange differ- ences | Other changes | 31 Dec. 2025
Deferred tax assets |  |  |  |  |  |
Tangible and intangible assets | 8.2 | -3.3 | - | 0.1 | 2.7 | 7.7
Inventory | 7.2 | -2.9 | - | 0.1 | 2.0 | 6.4
Leases | 37.3 | 3.8 | -0.0 | 0.1 | -0.0 | 41.1
Provisions | 4.5 | 0.2 | - | 0.0 | 0.0 | 4.8
Tax loss carry-forwards | 15.4 | -0.0 | - | 0.9 | 0.4 | 16.7
Other temporary differences | 8.9 | -1.3 | -0.6 | 0.1 | 0.2 | 7.2
Total | 81.5 | -3.5 | -0.6 | 1.2 | 5.3 | 83.9
Deferred tax liabilities |  |  |  |  |  |
Tangible and intangible assets | 105.3 | 9.0 | - | -0.1 | 11.7 | 125.8
Pensions | 25.5 | 0.4 | 3.5 | -0.0 | - | 29.4
Untaxed earnings | 5.1 | 0.6 | - | 0.1 | -1.4 | 4.3
Other temporary differences | 5.1 | 0.0 | 0.2 | 0.0 | 0.6 | 5.9
Total | 140.9 | 10.0 | 3.7 | 0.1 | 10.8 | 165.5
Net deferred tax asset (+)/liability (-) | -59.4 |  |  |  |  | -81.7

|  | 137

Movements in deferred tax 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
Pensions | 15.9 | 0.1 | 9.5 | -0.0 | - | 25.5
Untaxed earnings | 10.4 | -5.2 | - | -0.2 | - | 5.1
Other temporary differences | 6.3 | -0.8 | -1.0 | 0.0 | 0.5 | 5.1
Total | 130.2 | -14.7 | 8.5 | -0.8 | 17.6 | 140.9
Net deferred tax asset (+)/liability (-) | -57.2 |  |  |  |  | -59.4

Deferred tax related to components of other comprehensive income

€ million | 2025 Before tax | Tax charge/ credit | After tax | 2024 Before tax | Tax charge/ credit | After tax
Items that will not be reclassified subsequently to profit or loss |  |  |  |  |  |
Actuarial gains and losses | 17.7 | -3.5 | 14.1 | 47.0 | -9.4 | 37.6
Items that may be reclassified subsequently to profit or loss |  |  |  |  |  |
Currency translation differences on foreign operations | 19.0 |  | 19.0 | -31.6 |  | -31.6
Share of other comprehensive income of associates and joint ventures | - |  | - | 0.5 |  | 0.5
Cash flow hedge revaluation | 4.1 | -0.8 | 3.3 | -9.5 | 1.8 | -7.7
Total | 40.7 | -4.4 | 36.4 | 6.3 | -7.6 | -1.2

Tax loss carry-forwards
In the 31 December 2025 consolidated financial statements, the Group has recognised
€16.2 million (€15.3 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 2025,
the Group still had €156.3 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 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031– | Total
| - | - | 0.0 | 0.2 | 0.0 | 156.0 | 156.3

|  | 138

2.8 Earnings per share
Accounting policies
Basic earnings per share are calculated by dividing the 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.

| 2025 | 2024
Profit for the period attributable to equity holders of the parent, €million | 404.2 | 379.1
Number of shares |  |
Weighted average number of shares outstanding | 398,084,475 | 397,921,553
Diluted weighted average number of shares outstanding | 398,084,475 | 397,921,553
Earnings per share from profit attributable to equity holders of the parent |  |
Basic and diluted, Group total, € | 1.02 | 0.95

2.9 Additional information on the statement of cash flows
Adjustments to cash flows from operating activities

€ million | 2025 | 2024
Adjustment of non-cash transactions in the income statement and items presented elsewhere in the statement of cash flows: |  |
Change in provisions | -1.0 | 0.7
Share of results of associates and joint ventures | -23.9 | -24.7
Impairments | 13.7 | 40.5
Credit losses | 3.7 | 7.1
Gains on disposal of property, plant, equipment and intangible assets and business operations | -14.0 | -12.7
Losses on disposal of property, plant, equipment and intangible assets and business operations | 4.6 | 4.8
Share-based compensation | 1.6 | 2.6
Defined benefit pensions | -2.1 | -0.3
Others | 0.6 | 4.2
Total | -16.8 | 22.2

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 | 2025 | 2024
Total acquisition of property, plant, equipment and intangible assets | 550.0 | 527.6
Total acquisition of subsidiaries and investments in associates and other investments | 185.7 | 148.3
Total capital expenditure | 735.7 | 675.9
of which cash payments | 646.5 | 614.7
Loans relating to acquired companies and cash equivalents | 41.9 | 49.9
Payments arising from prior period investing activities | -19.8 | -30.2
Capital expenditure financed with liabilities | 67.1 | 41.5
Total | 735.7 | 675.9

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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.
Key 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 2025
Kesko expanded its operations in Denmark with three acquisitions. Davidsen Koncernen A/S,
of which Kesko owns 90%, acquired the entire capital stocks of Roslev Trælasthandel A/S on
31 January 2025, CF Petersen & Søn A/S on 30 April 2025, and Tømmergaarden A/S on 28
May 2025. Roslev operates mainly in Central Jutland, CF Petersen in Zealand, and
Tømmergaarden in Northern and Central Jutland. All three acquired companies serve
primarily B2B customers. The acquisitions strengthen Davidsen’s market position in Danish
building and home improvement trade.
Based on purchase price allocations, the fair value of the assets acquired for Kesko Group
amounted to €235.2 million, and the fair value of the liabilities assumed amounted to €128.6
million. The fair value of intangible and tangible assets acquired at the date of acquisition
totalled €103.8 million. According to the calculations, the €79.2 million goodwill arising from
the acquisition reflects the synergies expected to realised in particular in purchase
operations and operational efficiency. The goodwill is not tax deductible. The non-controlling
interest is reported as proportionate share of net assets of the acquired companies. 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.

| 2025
€ million | Acquisitions in Denmark
Acquisition price of the shares | 185.8
Fair values of assets acquired and liabilities assumed at the date of acquisition |
Intangible assets | 7.2
Property, plant, equipment, right-of-use assets and investments | 96.6
Inventories | 61.4
Receivables | 62.3
Deferred tax asset | 1.1
Cash and cash equivalents | 6.5
Total assets | 235.2
Trade payables, other payables and provisions | 72.3
Interest-bearing liabilities including lease liabilities | 46.6
Deferred tax liability | 9.7
Total liabilities | 128.6
Net assets acquired, total | 106.6
Goodwill | 79.2
Acquisition price of the shares | 185.8
Cash flow impact of acquisition |
Considerations paid | -185.8
Cash and cash equivalents acquired | 6.5
Cash flow impact of acquisitions | -179.3

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Acquisitions in 2024
Davidsen Koncernen A/S
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.
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.
Autotalo Lohja
On 1 September 2024, Kesko acquired Autotalo Lohja, thus expanding its car trade
dealership network by two locations. 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 fair value of the intangible assets acquired at the date of acquisition totals €0.6
million.

| 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, 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

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3.2 Property, plant and equipment
Accounting policies
Property, plant and equipment which comprise land, buildings, machinery and equipment,
are carried at cost less any accumulated depreciation and possible impairment charges. The
property, plant and equipment of acquired businesses 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 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 their replacement costs are 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 presented in other operating income or expenses.
The Group has not capitalised interest costs incurred as part of the acquisition of assets,
because the Group does not have qualifying assets.

2025 € million | Land and waters | Buildings | Machinery and equipment | Other tangible assets | Prepay- ments and construc- tion in progress | Total 2025
Cost |  |  |  |  |  |
Cost as at 1 January | 421.8 | 2,203.4 | 738.1 | 35.2 | 272.6 | 3,671.0
Exchange differences | 0.3 | 1.2 | 1.3 | 0.3 | 0.1 | 3.3
Additions | 42.3 | 185.3 | 178.8 | 2.2 | 128.1 | 536.7
Acquisitions | 12.7 | 75.4 | 4.8 | - | - | 92.8
Deductions | -15.2 | -49.1 | -78.8 | -3.0 | -1.8 | -147.9
Transfers between items | 19.1 | 204.6 | 26.2 | 1.0 | -247.0 | 3.9
Cost as at 31 December | 481.0 | 2,620.8 | 870.3 | 35.7 | 151.9 | 4,159.8
Accumulated depreciation and impairment charges |  |  |  |  |  |
Accumulated depreciation and impairment charges as at 1 January | -6.8 | -832.7 | -405.9 | -22.4 |  | -1,267.8
Exchange differences | 0.0 | -0.7 | -0.6 | -0.1 |  | -1.4
Accumulated depreciation on deductions | - | 8.8 | 44.6 | 2.6 |  | 55.9
Accumulated depreciation on transfers | - | -8.6 | 4.7 | 1.4 |  | -2.5
Depreciation and impairment charges for the year | -2.3 | -112.7 | -72.2 | -2.2 |  | -189.4
Accumulated depreciation and impairment charges as at 31 December | -9.1 | -945.8 | -429.5 | -20.8 |  | -1,405.2
Carrying amount as at 1 January | 415.0 | 1,370.7 | 332.2 | 12.8 | 272.6 | 2,403.3
Carrying amount as at 31 December | 471.9 | 1,675.0 | 440.9 | 14.9 | 151.9 | 2,754.6

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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

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 maintenance of 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.
Key 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.

2025 € million | Goodwill | Trade- marks | Other intangible assets | Prepay- ments | Total 2025
Cost |  |  |  |  |
Cost as at 1 January | 729.0 | 124.3 | 317.6 | 3.1 | 1,174.0
Exchange difference | 10.5 | -0.1 | 0.5 | - | 11.0
Additions | - | - | 7.4 | 3.0 | 10.4
Acquisitions | 79.2 | - | 7.2 | - | 86.3
Deductions | - | - | -6.8 | -0.0 | -6.8
Transfers between items | - | - | -12.9 | -2.0 | -14.9
Cost as at 31 December | 818.6 | 124.2 | 313.1 | 4.1 | 1,260.0
Accumulated amortisation and impairment charges |  |  |  |  |
Accumulated amortisation and impairment charges as at 1 January | -85.9 | -10.8 | -200.0 |  | -296.7
Exchange difference | -0.1 | -0.1 | -0.3 |  | -0.4
Accumulated amortisation and impairment charges on disposals |  |  | 14.0 |  | 14.0
Accumulated amortisation and impairment charges on transfers |  |  | 7.1 |  | 7.1
Amortisation and impairment charges for the year | -11.0 | -0.3 | -38.5 |  | -49.7
Accumulated amortisation and impairment charges as at 31 December | -97.0 | -11.1 | -217.7 |  | -325.8
Carrying amount as at 1 January | 643.0 | 113.5 | 117.7 | 3.1 | 877.3
Carrying amount as at 31 December | 721.6 | 113.1 | 95.4 | 4.1 | 934.2

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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

Other intangible assets include software and licences amounting to €27.8 million
(€42.2 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 2025 | Goodwill 2025 | Trade- marks 2024 | Goodwill 2024
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 | 137.1 | 58.3 | 147.9
Byggmakker, Norway | 19.7 | 150.0 | 19.8 | 150.7
K-Bygg, Sweden | - | 195.9 | - | 185.0
Davidsen, Denmark | 29.7 | 114.4 | 29.8 | 35.4
Car trade | - | 46.1 | - | 46.1
Total | 113.1 | 721.6 | 113.2 | 643.0

Goodwill is tested for impairment whenever there is an indication of impairment, and at least
annually. Impairment tests have been carried out during the fourth quarter of 2025 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 the cash-generating unit is based on value-in-use calculations.
The cash flow forecasts used in the calculations are derived from financial plans approved by
management. These plans are based on external sources regarding forecasts of overall
market growth, weighted by the cash-generating unit’s own share of the relevant market.
The length of the forecast period applied in the calculations is nine years for the following
cash-generating units operating in the building and technical trade division: Byggmakker,
K-Bygg and Davidsen, and three years for other cash-generating units. The nine-year
forecast period applied to the building and home improvement businesses is justified by the
weak construction market conditions, which are expected to gradually recover to a normal
market level over the forecast period. The key variable used in determining the forecast cash
flows is the development in profitability based on plans approved by management. The

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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.
The average compound annual growth rate for the forecast period was in the range of
1.5%–5.3% and the EBITDA ratio range 4.7%–12.9%. 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-% applied in the annual impairment test for each cash-generating unit.

€ million | Pre-tax discount rate 2025 | Terminal growth rate 2025 | Pre-tax discount rate 2024 | Terminal growth rate 2024
Grocery trade |  |  |  |
Grocery trade, chain operations | 6.7% | 0.5% | 6.5% | 0.5%
Grocery trade, Kespro | 6.4% | 1.5% | 6.3% | 1.5%
Building and technical trade |  |  |  |
Technical trade | 8.4% | 2.0% | 9.1% | 2.0%
Byggmakker, Norway | 8.2% | 2.0% | 8.7% | 2.0%
K-Bygg, Sweden | 7.4% | 2.0% | 7.0% | 2.0%
Davidsen, Denmark | 7.7% | 2.0% | 7.2% | 2.0%
Car trade | 8.2% | 2.0% | 8.5% | 2.0%

The discount rate applied 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.
In the impairment testing for 2025 , the recoverable amounts of all cash-generating units
exceeded their carrying amounts. As part of the restructuring of the technical trade
operations in Sweden during 2025, an impairment loss of €11.0 million was recognized on
goodwill related to the technical trade. 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.
Sensitivity analysis
The most sensitive to movements in assumptions is the goodwill impairment test for K-Bygg.
K-Bygg’s net sales in 2025 totalled €343 million. During the forecast period, the range for
change in K-Bygg’s net sales is 2.7%–10.9%. By the end of the forecast period, K-Bygg’s
EBITDA margin is expected to have grown by 6.9 percentage points from the EBITDA margin
achieved in 2025 . The weak construction market in Sweden 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 €12.0 million. Impairment would be recognised if the
post-forecast period EBITDA margin would decrease by more than 0.2 percentage points, if
the post-forecast period growth percentage would be below 1.8% or if the pre-tax discount
rate was above 7.5%.

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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 terms 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.
Key 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 properties 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.

2025 € million | Land and buildings | Machinery and equipment | Total
Carrying amount as at 1 January | 1,839.5 | 28.2 | 1,867.7
Additions | 450.7 | 8.6 | 459.4
Acquisitions | 0.0 | 2.9 | 2.9
Transfer between items | 0.0 | 0.0 | 0.0
Depreciation | -343.1 | -12.1 | -355.2
Impairment charges | -3.9 | - | -3.9
Deductions | -68.3 | -0.1 | -68.4
Exchange differences | 3.9 | 0.2 | 4.1
Carrying amount as at 31 December | 1,878.8 | 27.7 | 1,906.5

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
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

The lease commitments for leases not commenced on 31 December 2025 to which the Group
is committed totalled €181.4 million (€298.8 million).
Lease expenditure

€ million | 2025 | 2024
Operating profit |  |
Depreciation and impairment charges on right-of-use assets | -359.1 | -375.5
Lease payments for short-term leases | -3.7 | -4.3
Lease payments for low-value assets | -3.1 | -3.5
Variable lease payments | -0.6 | -0.7
Financial expenses |  |
Interest expense for lease liabilities | -89.4 | -78.6
Total | -455.9 | -462.6

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

€ million | 2025 | 2024
Interest expense for lease liabilities | -89.4 | -78.6
Repayments of lease liabilities | -358.5 | -370.9
Lease payments in the income statement | -7.4 | -8.5
Total | -455.2 | -458.0

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.

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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
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 accounting treatment of
income arising from chain agreements is described in Note 2.1. K Auto Leasing practices
leasing operations of vehicles. Vehicle lease contracts are classified as operating leases.
Lease income

€ million | 2025 | 2024
Lease income for operating leases | 79.8 | 75.0

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
comprise all costs of conversion including direct costs and allocations of variable and fixed
production overheads. The cost excludes borrowing costs.
Key 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 | 2025 | 2024
Goods | 1,201.2 | 1,096.1
Prepayments | 2.8 | 5.4
Total | 1,204.0 | 1,101.5
Write-down of inventories to net realisable value | 65.2 | 70.2

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3.6 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.
Key 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 | 2025 | 2024
Interest-bearing receivables |  |
Interest-bearing loans and receivables | 0.7 | 4.2
Total interest-bearing receivables | 0.7 | 4.2
Trade receivables | 1,014.8 | 957.9
Income tax assets | 18.0 | 12.9
Other non-interest-bearing receivables |  |
Non-interest-bearing loans and receivables | 28.4 | 38.0
Prepaid expenses and deferred income | 281.3 | 249.1
Total other non-interest-bearing receivables | 309.6 | 287.1
Total | 1,343.1 | 1,262.1

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 | 2025 | 2024
Trade receivables not due | 929.6 | 878.3
1–7 days past due trade receivables | 50.7 | 40.6
8–30 days past due trade receivables | 14.4 | 17.6
31–60 days past due trade receivables | 3.9 | 4.1
Over 60 days past due trade receivables | 16.2 | 17.2
Total | 1,014.8 | 957.9

In Finland the key part of the business is done in cooperation with retailers and within trade
receivables, €341.2 million (€357.7 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 €187.5 million
(€187.1 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 €29.0 million (€30.6 million).
The aggregate amount of credit losses and impairments recognised in the profit for the
financial year was €3.7 million (€7.1 million)
The amount of trade receivables with renegotiated terms totalled €5.3 million (€2.1 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.
Key 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
expense 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 change in fair value 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 1,947
beneficiaries, of whom 225 were active employees and 1,722.were retired employees. Kesko
Group's share of the Pension Fund's obligation is 96.1% (96.3%). The notes present Kesko
Group's share of 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 2025 or 2024.

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

€ million | 2025 | 2024
Present value of defined benefit obligation | -200.6 | -214.6
Fair value of plan assets | 347.9 | 342.1
Net assets recognised in the balance sheet | 147.4 | 127.5
Movement in the net assets recognised in the balance sheet |  |
As at 1 January | 127.5 | 79.6
Income/expense recognised in the income statement | 2.1 | 0.2
Remeasurement | 17.4 | 46.9
Contributions to plan and plan costs | 0.2 | 0.7
As at 31 December | 147.4 | 127.5

€ million | Present value of defined benefit obligation | Fair value of plan assets | Total
As at 1 January 2025 | -214.6 | 342.1 | 127.5
Current service cost | -1.4 |  | -1.4
Gains or losses on settlement | -0.4 |  | -0.4
Interest expense/income | -6.9 | 11.4 | 4.5
Plan costs | - | -0.5 | -0.5
| -8.8 | 10.9 | 2.1
Remeasurement |  |  |
Return on plan assets |  | 9.7 | 9.7
Gain/loss from changes in financial assumptions | 7.7 |  | 7.7
Experience gains/losses | 0.1 |  | 0.1
| 7.8 | 9.7 | 17.4
Contributions to plan | - | 0.2 | 0.2
Benefit payments | 14.4 | -14.4 | -
As at 31 December 2025 | -201.0 | 348.5 | 147.4

€ 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 expense/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
Benefit payments | 14.9 | -14.9 | -
As at 31 December 2024 | -214.6 | 342.1 | 127.5

Plan assets were comprised as follows in 2025

€ million | Quoted | Unquoted | Total
Europe |  |  |
Equity instruments |  | 30.7 | 30.7
Debt instruments | 56.5 | 6.0 | 62.5
Investment funds | 77.4 | 16.1 | 93.6
Properties |  | 86.0 | 86.0
United States |  |  |
Equity instruments |  |  |
Investment funds | 57.5 |  | 57.5
Other countries |  |  |
Investment funds | 23.9 |  | 23.9
Total | 215.4 | 138.9 | 354.2

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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

€ million | 2025 | 2024
Kesko Corporation shares included in fair value | - | -
Properties leased by Kesko Group included in fair value | 86.0 | 85.6

Principal actuarial assumptions

| 2025 | 2024
Discount rate | 3.78% | 3.35%
Salary growth rate | 2.36% | 2.27%
Inflation | 1.89% | 1.99%
Pension growth rate | 2.08% | 1.80%
Average service expectancy, years | 4 | 4

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

| 2025 | 2024
Weighted average duration of pension obligations, years | 10 | 11
Expected maturity analysis of undiscounted pension obligations, € million |  |
Less than 1 year | 15.3 | 15.6
Between 1−10 years | 112.8 | 114.5
Between 10−20 years | 94.4 | 96.1
Between 20−30 years | 61.3 | 62.0
Over 30 years | 38.3 | 40.1
Total | 322.3 | 328.3

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 2025, the realised return on
investing activity was 6.22%.
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
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

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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 €152.3 million as at 31.12.2025. 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
2025 |  |  |
Discount rate | 0.50% | -5.16% | 5.69%
Salary growth rate | 0.50% | 0.54% | -0.53%
Pension growth rate | 0.50% | 4.90% | -4.50%
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%

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 | 31.12.2025 | 31.12.2024
Current assets | 420.9 | 416.7
Non-current assets | 334.5 | 402.1
Current liabilities | 268.6 | 293.4
Non-current liabilities | 209.8 | 268.8
The above-mentioned balance sheet items contain the following items: |  |
Cash and cash equivalents | 87.4 | 26.3
Current interest-bearing liabilities | 36.3 | 46.6
Non-current interest-bearing liabilities | 209.6 | 268.7

Summary of financials of significant joint ventures, € million | 1.1.–31.12.2025 | 1.1.–31.12.2024
Net sales | 1,127.1 | 1,199.6
Profit attributable to owners of the parent | 39.0 | 41.8
Group share of profit for the period | 19.5 | 20.9
Share of result of the joint venture consolidated in the consolidated financial statements | 19.5 | 20.9
The above-mentioned income statement items contain the following items: |  |
Depreciation, amortisation and impairment | -47.7 | -56.1
Interest income | 4.7 | 1.1
Interest expense | -7.2 | -12.9
Income tax | -6.4 | -4.5
Dividends received from joint ventures | - | -16.4

Reconciliation for balance sheet value of joint ventures, € million | 2025 | 2024
Net assets of joint ventures | 277.1 | 256.6
Minority interest in net assets | 1.5 | 20.6
Group interest in net assets | 137.5 | 117.7
Goodwill | 19.2 | 19.2
Fair value allocations | 15.0 | 15.0
Balance sheet value of joint ventures | 171.3 | 151.8

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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
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 | 2025 | 2024
Current assets | 17.0 | 20.0
Non-current assets | 487.7 | 495.4
Current liabilities | 6.9 | 6.8
Non-current liabilities | 453.4 | 467.9
Equity attributable to equity holders of the parent | 44.5 | 40.8
Net sales | 52.0 | 54.2
Profit for the period | 3.7 | 0.7
Comprehensive income for the period, total | 3.7 | 0.7

Reconciliation for balance sheet value of an associate, € million | 2025 | 2024
Net assets of the associate | 44.5 | 40.8
Group interest in net assets | 14.8 | 13.6
Balance sheet value of the associate | 14.8 | 13.6

Other associates

Summary of financials of other associates, € million | 2025 | 2024
Group share of profit for the period | 2.4 | 3.0
Group share of comprehensive income for the period | 2.4 | 3.0
Balance sheet value of associates in the consolidated statement of financial position | 77.0 | 74.3

The table above 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 economic resources will be
required to settle the obligation, and a reliable estimate of the amount can be made.
Provisions are reviewed at each reporting date and adjusted to reflect the current best
estimate. Changes in provisions are recognised in the income statement within the same
line item in which the provision was originally recognised. The Group’s provisions mainly
relate to warranty obligations arising from products sold by the Group.
A warranty provision is recognised when a product covered by warranty term is sold. The
provision is based on historical information on the actual realisation of warranty expenses.
Key accounting estimates and assumptions
When assessing whether the recognition criteria for provisions are met and when
determining the amount of a provision, the Group is required to use estimates regarding the
existence and magnitude of the obligation. These estimates may differ from the actual
amount and existence of the obligation that will materialise in the future.

€ million | Warranty provisions | Other provisions | Total
Provisions as at 1 Jan. 2025 | 9.0 | 10.5 | 19.5
Foreign exchange effects | - | 0.2 | 0.2
Additional provisions | 6.7 | 5.9 | 12.6
Unused amounts reversed | -3.6 | -1.1 | -4.7
Amounts charged against provisions | -2.1 | -6.6 | -8.7
Provisions as at 31 Dec 2025 | 10.0 | 8.8 | 18.8
Analysis of total provisions |  |  |
Non-current | 3.4 | 1.0 | 4.3
Current | 6.6 | 7.8 | 14.5

The largest items in other provisions relate to costs of maintenance agreements for 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
The capital management objectives relate to the Group’s solvency and liquidity. The capital
structure (equity-to-debt ratio) is managed at Group level. The purpose of these targets is to
secure liquidity in all market situations, enable strategy implementation, and increase
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 performance indicators are approved by the Board of Directors of Kesko
Corporation. On 27 May 2021, the Board confirmed medium-term financial targets:
a comparable operating margin of over 6.0% and a comparable return on capital employed of
over 14.5%. For financial position, the target is a maximum interest-bearing net debt/EBITDA
of 2.50, excluding the impact of IFRS 16.

€ million | 2025 | 2024
Interest-bearing liabilities in the consolidated statement of financial position | 3,572.6 | 3,396.3
- Lease liabilities | 2,097.5 | 2,051.0
- Other current financial assets | - | 15.0
- Cash and cash equivalents | 166.2 | 473.1
Interest-bearing net debt excluding lease liabilities | 1,308.9 | 857.2
Operating profit | 631.3 | 579.5
+ depreciation, amortisation and impairment | 239.1 | 247.9
+ depreciation and impairment charges for right-of-use-assets | 359.1 | 375.5
- lease payments for right-of-use-assets | 431.6 | 453.2
EBITDA excluding the impact of IFRS 16 | 798.0 | 749.7
Interest bearing net debt/EBITDA excluding the impact of IFRS 16 | 1.6 | 1.1

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 €166.2 million (€488.1 million) on 31 December 2025.
Interest-bearing liabilities on 31 December 2025 totalled €3,572.6 million (€3,396.3 million),
of which lease liabilities accounted for €2,097.5 million (€2,051.0 million). Interest-bearing
net debt totalled €3,406.4 million (€2,908.2 million), and interest-bearing net debt excluding
lease liabilities totalled €1,308.9 million (€857.2 million).

€ million | 2025 | 2024
Financial assets at amortised cost (maturing in less than 3 months) | - | 185.2
Cash and cash equivalents | 166.2 | 287.9
Other current financial assets | - | 15.0
Loans - repayable within one year (including overdraft) | -189.3 | -291.3
Lease liabilities - repayable within one year | -344.6 | -422.2
Loans - repayable after one year | -1,285.9 | -1,054.0
Lease liabilities - repayable after one year | -1,752.9 | -1,628.8
Interest bearing net debt | -3,406.4 | -2,908.2

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€ million | Carrying amount as at 1 Jan. 2025 | Cash flows | Business acquisitions and divestments | Net changes of lease liabilities | Foreign exchange adjustments | Carrying amount as at 31 Dec. 2025
Lease liabilities due within 1 year | -422.2 | 358.5 | -0.5 | -279.6 | -0.8 | -344.6
Lease liabilities due after 1 year | -1,628.8 |  | -1.4 | -119.2 | -3.4 | -1,752.9
Loans due within 1 year | -291.3 | 122.1 | -20.1 |  | 0.0 | -189.3
Loans due after 1 year | -1,054.0 | -197.6 | -34.3 |  | 0.1 | -1,285.9
Other current financial assets | 15.0 | -15.0 | - |  | - | -
Cash and overdraft | 287.9 | -128.1 | 10.1 |  | -3.7 | 166.2
Financial assets at amortised cost | 185.2 | -185.2 | - |  | - | -
Net debt | -2,908.2 | -45.4 | -46.2 | -398.8 | -7.8 | -3,406.4

€ 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
Loans due within 1 year | -98.5 | -191.5 | -1.3 |  | 0.0 | -291.3
Loans 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

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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 2024 | 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
Change in treasury shares |  | 162,419 | 162,419 |  |  |  |
As at 31 December 2025 | 126,948,028 | 271,170,799 | 398,118,827 | 197.3 | 197.8 | 266.8 | 661.9
Number of votes | 1,269,480,280 | 271,170,799 | 1,540,651,079 |  |  |  |

The number of B shares and the total number of A- and B shares exclude treasury shares, which totalled 1,960,181 (2,122,600).
Treasury shares
On 31 December 2025, the company held a total of 1,960,181 of its own B shares, acquired
under authorisations granted by the Annual General Meeting to the Board of Directors
during the 2018 financial year. The numbers of shares are presented on a post‑split basis
following the share split carried out in 2020. The shares are held by the company as treasury
shares, and the Board of Directors is authorised to dispose of them. The acquisition cost of
the B shares acquired in 2018, totalling €23.9 million, has been recognised as a deduction
from retained earnings within equity. The Board of Directors has an authorisation granted by
the Annual General Meeting on 24 March 2025, valid until 30 June 2026, to issue up to
33,000,000 B shares and to acquire up to 16,000,000 B shares. Information on share-based
payments has been given in Note 5.3.

| pcs
B shares held by the Company as at 31 Dec. 2024 | 2,122,600
Transfer, share-based compensation plan | -163,624
Returned during the period | 1,205
B shares held by the Company as at 31 Dec. 2025 | 1,960,181

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 2024 was €0.90 per share.

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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 follows a uniform treasury policy that
has been approved by the Company's Board of Directors. Compliance with the policy and
developments in the Group’s financial position are monitored by the Board’s Audit
Committee. The Group Treasury is responsible for the centralised management of the
Group’s financing activities, liquidity management, relationships with financing
counterparties, and the management of financial risks. As a general principle, the Group’s
financing is obtained through the parent company, and the Group Treasury provides
financing for subsidiaries in their functional currencies. For subsidiaries with significant
external ownership, guarantees are provided only up to the Group’s ownership share.
Foreign exchange risks
Kesko Group operates in eight countries, and also makes purchases from numerous other
countries. As a result, 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’ financing is arranged in their functional currencies. The parent
company bears the foreign exchange risk and hedges the risk exposure using derivatives or
loans denominated in the relevant foreign currencies.
Translation risks
The Group is exposed to foreign currency translation risks from net investments in
subsidiaries located outside the euro area.This balance sheet risk has not been hedged.
Hedging may be initiated if equity is to be repatriated or if a significant devaluation risk in a
given currency is anticipated. The most significant translation exposures relate to the
Norwegian krone, the Swedish krona and the Danish krone. Relative to the scale of the
Group’s operations and balance sheet, translation risk is considered limited.

Translation exposure as at 31 Dec. 2025 € million | DKK | NOK | PLN | SEK
Net investment | 325.5 | 428.2 | 108.6 | 346.9

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

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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. 2025, € million | DKK | NOK | PLN | SEK
Weakening 10% | -29.6 | -38.9 | -9.9 | -31.5
Strengthening 10% | 36.2 | 47.6 | 12.1 | 38.5

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

Transaction risks
International purchasing and foreign currency denominated financing arranged by the parent
to subsidiaries expose the Group to transaction risks in several currencies. The currency-
specific transaction risk exposure comprises foreign currency denominated receivables and
liabilities in the balance sheet, forecasted 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 monthly.
The subsidiaries generally 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 IFRS 9 hedge accounting to hedge the transaction risk
related to purchases and sales. Derivative instruments are initially measured at fair value and
they are subsequently remeasured at fair value at the reporting date. The change in fair value
of foreign currency derivatives used for hedging purchases and sales is recognised in other
operating income or expenses.
Where hedge accounting is applied to hedge purchases, the valuation of derivatives is
recognised in the revaluation reserve of equity. Upon maturity, it is treated similarly to the
hedged item.

Transaction exposure as at 31 Dec. 2025 € million | DKK | NOK | PLN | SEK | USD
Group's transaction risk | 2.6 | -3.5 | -10.3 | -12.1 | -0.2
Hedging derivatives | - | -5.1 | 8.3 | 7.4 | 22.1
Open exposure | 2.6 | -8.6 | -2.0 | -4.7 | 21.9

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

The Group monitors the transaction risk exposure for balance sheet items and forecasted
cash flows. The table above shows transaction exposure excluding future cash flows. It does
not include the Group’s actual foreign exchange risk after hedging. When forecasted
amounts are included in the transaction exposure, the most significant difference is in the
USD exposures, which were €-6.1 million 31 December 2025.
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 loans used for hedging.

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2025, € million | DKK | NOK | PLN | SEK | USD
Weakening 10% | -0.2 | 0.8 | 0.2 | 0.4 | -2.0
Strengthening 10% | 0.3 | -1.0 | -0.2 | -0.5 | 2.4

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

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Liquidity risk and interest-bearing liabilities
Liquidity risk management aims to maintain sufficient liquid assets and credit facilities in
order to ensure the ongoing availability of sufficient financing 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.
Interest-bearing net debt reconciliation is presented in Note 4.1.
Kesko Corporation has six bilateral loans totalling €800 million. Kesko Corporation has a
€300 million unsecured senior green bond that matures on 2 February 2030 and bears an
annual interest rate of 3.5%. In addition, Kesko’s financing sources include pension loans,
commercial paper programmes, and payables to K-retailers, which consist of advance
payments and chain rebates. Kesko’s Danish subsidiaries have mortgage loans, and credit
facilities are used in the car trade leasing business. Kesko’s lease liabilities mainly consist of
lease agreements for real estate.
At the balance sheet date, the total equivalent of undrawn committed credit facilities was
€400 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 include commercial paper
programmes denominated in euros totalling an equivalent of €513 million (€513 million), of
which €35 million were in use at the balance sheet date.
At the end of 2025, the interest margins of two bilateral loans, totalling €200 million,
incorporated sustainability‑linked targets relating to the reduction of greenhouse gas
emissions and food waste. For the four bilateral loans amounting to €600 million refinanced
during 2025, the sustainability‑linked targets will be negotiated once the new climate targets
have been approved by the Science Based Targets initiative.
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.
Interest rate risk on loans and sensitivity analysis
Changes in the interest rates affect the Group’s interest expense. The objective of the
Group’s interest rate risk management policy is to mitigate the impact of interest rate
fluctuations on profit across reporting periods. In accordance with Kesko’s Treasury policy,
hedge accounting may be applied to interest rate derivatives.
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 1.1 (1.0) years on average.
Hedge accounting is applied to the Group’s designated floating‑rate loans with respect to
interest rate risk. Interest rate swaps are used as hedging instruments. The hedge ratio for
the loans subject to hedge accounting is 79%. No hedge ineffectiveness related to these
hedges was recognised in profit or loss during the financial year.
During the financial year, Kesko hedged 50% of the fair value of a fixed‑rate €300 million
bond as part of the management of the loan portfolio’s duration. The hedge was executed
using an interest rate derivative. Kesko applies fair value hedge accounting to the hedged
portion of the bond, whereby changes in the fair value of the hedging instrument and of the
hedged portion of the bond are recognised in profit or loss on a matching basis.
The sensitivity analysis calculated at the balance sheet date of 31 December 2025, the effect
of variable rate loans on the pre-tax profit would have been €-/+7.0 million (€-/+7.1 million),
if the interest rate level had risen or fallen by 1 percentage point.
Pension loans have fixed rates, and their effective interest cost was 1.4%. Other loans from
financial institutions have variable interest rates. At the end of the financial year, the average
rate of these loans, payables to retailers, and other interest-bearing liabilities was 2.9%.

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| 31 Dec. 2025 | 31 Dec. 2024
€ 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 |  |  |  |  |  |  |  |
Loans from financial institutions | 59.3 | 763.5 | 183.6 | 1,006.6 | 193.0 | 563.7 | 164.1 | 920.8
finance costs | 29.8 | 56.2 | 13.3 | 99.3 | 31.9 | 38.1 | 12.9 | 82.9
Bonds | - | 297.3 | - | 297.3 | - | - | 298.0 | 298.0
finance costs | 10.5 | 42.0 | - | 52.5 | 3.5 | 42.0 | 10.5 | 56.0
Pension loans | 8.9 | 11.5 | - | 20.3 | 12.0 | 20.3 | - | 32.3
finance costs | 0.3 | 0.2 | - | 0.5 | 0.4 | 0.5 | - | 0.9
Lease liabilities | 344.5 | 1,016.0 | 737.5 | 2,098.0 | 422.1 | 1,049.1 | 579.7 | 2,051.0
finance costs | 82.4 | 209.7 | 98.2 | 390.3 | 74.2 | 172.7 | 73.9 | 320.8
Payables to K-retailers | 59.5 | - | - | 59.5 | 64.7 | - | - | 64.7
finance costs | - | - | - | - | - | - | - | -
Other interest-bearing liabilities | 61.6 | 29.3 | - | 90.8 | 21.5 | 7.9 | 0.0 | 29.4
finance costs | 0.7 | 2.9 | - | 3.5 | - | 0.4 | - | 0.4
Non-current non-interest-bearing liabilities | 0.6 | 42.1 | 18.3 | 61.0 | 0.6 | 22.7 | 19.1 | 42.4
Current non-interest-bearing liabilities |  |  |  |  |  |  |  |
Trade payables | 1,388.3 |  |  | 1,388.3 | 1,404.4 |  |  | 1,404.4
Accrued expenses | 507.7 |  |  | 507.7 | 442.4 |  |  | 442.4
Other non-interest-bearing liabilities | 296.7 |  |  | 296.7 | 299.0 |  |  | 299.0

Financial liabilities in the balance sheet include €3.3 million (€6.2 million) related to derivatives, of which €2.2 million mature within 12 months. Lease liabilities details are in Note 3.4.

| 31 Dec. 2025 | 31 Dec. 2024
€ 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 | 60.2 | - | - | 60.2 | 123.3 | - | - | 123.3
Interest rate derivatives | 11.3 | 33.7 | 9.5 | 54.4 | 4.1 | 1.5 | 0.2 | 5.8
of which derivatives under hedge accounting | 10.5 | 33.4 | 9.5 | 53.4 | 3.1 | 0.5 | 0.2 | 3.8
Electricity derivatives | 1.9 | 1.1 | 0.0 | 3.0 | 2.4 | 3.0 | - | 5.5
Receivables |  |  |  |  |  |  |  |
Foreign currency derivatives | 60.5 | - | - | 60.5 | 124.6 | - | - | 124.6
Interest rate derivatives | 12.5 | 37.3 | 12.0 | 61.8 | 5.9 | 3.6 | 0.5 | 10.1
of which derivatives under hedge accounting | 10.6 | 36.6 | 12.0 | 59.1 | 2.9 | 1.2 | 0.5 | 4.6
Electricity derivatives | 0.4 | 0.6 | 0.0 | 1.0 | 1.5 | 0.8 | 0.0 | 2.3

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Supply chain financing arrangements
The Group has established a supply chain financing scheme with three banks. 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 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. Trade payables
in the consolidated statement of financial position on 31 December 2025 totalled €1,388.3
million (€1,404.4 million).

Supply chain financing arrangement | 2025 | 2024
Liabilities covered by the scheme | € million | € million
Outstanding payables | 307.8 | 332.4
Payables for which suppliers had received payment | 304.9 | 326.0
Terms of payment | Payment term, days | Payment term, days
Payables covered by the scheme | 14–240 | 30–240
Payables outside the scheme | 7–365 | 0–360

C redit and counterpart y risk
Financial instruments involve the risk of non-performance by counterparties. Credit risk is
managed by entering into 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.
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 | 2025 | 2024
Carrying amount as at 1 January | 15.0 | 15.4
Changes | -15.0 | -0.4
Carrying amount as at 31 December | - | 15.0

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
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 €+/-1.4 million (€+/-2.6 mil lion).
Maturity of non-current receivables

31 Dec. 2025, € million | 2027 | 2028 | 2029 | 2030 | 2031– | Total
Non-interest-bearing non- current receivables | 3.4 | 1.7 | 0.8 | 0.7 | 3.4 | 10.0
Loans and receivables from associates and joint ventures | 1.5 | - | - | - | 56.0 | 57.5
Other non-current receivables | 0.8 | - | - | - | - | 0.8
Total | 5.7 | 1.7 | 0.8 | 0.7 | 59.4 | 68.2

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

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

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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.
As at the balance sheet date, a total quantity of 1,805,225 MWH (1,314,163 MWH) of
electricity had been purchased with electricity derivatives and 744,103 MWH
(851,126 MWH) under fixed price purchase agreements. The 1–12 month hedging level for
system price was 80% (84%), the 13–24 month level was 69% (75%), the 25–36 month level
was 55% (61%), the 37–48 month level was 43% (38%), and the 49–60 month level was 26%
(20%).
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 2025, it would contribute
€-/+3.2 million (€-/+3.2 million) to the 2026 income statement and €-/+6.4 million (€-/+5.8
million) to equity. The impact has been calculated before taxes.
Result of cash flow hedging

| 2025 | 2024
€ 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 | 0.8 | -3.2 | -0.3 | 5.7
Acquisitions | - | - | 1.9 | -
Booked to income statement | 0.4 | 1.5 | -1.3 | -0.2
Change in fair value | 2.5 | -0.3 | 0.4 | -8.6
Fair value as at 31 Dec. excluding deferred taxes | 3.7 | -2.0 | 0.8 | -3.2

Derivatives

Fair values of derivative contracts € million | 31 Dec. 2025 Positive fair value (balance sheet value) | 31 Dec. 2025 Negative fair value (balance sheet value) | 31 Dec. 2024 Positive fair value (balance sheet value) | 31 Dec. 2024 Negative fair value (balance sheet value)
Interest rate derivatives | 56.8 | -51.9 | 9.3 | -5.6
Foreign currency derivatives | 0.4 | -0.1 | 1.6 | -0.2
Electricity derivatives | 1.0 | -3.0 | 2.3 | -5.5

Notional principal amounts of derivative contracts € million | 31 Dec. 2025 | 31 Dec. 2024
Interest rate derivatives | 1,135.3 | 467.0
Foreign currency derivatives | 60.6 | 124.9
Electricity derivatives | 47.7 | 45.4

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 €0.3 million.
The maximum credit risk from derivatives is the fair value of the balance sheet at the
reporting date.

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4.4 Finance income and expenses

€ million | 2025 | 2024
Interest income and other finance income |  |
Income on investments at amortised cost | 0.5 | 1.2
Interest income on loans and receivables | 13.7 | 16.0
Income on investments at fair value through profit or loss | 0.0 | 0.0
Other finance income | 0.6 | 0.5
Total interest income and other finance income | 14.9 | 17.7
Interest expense and other finance costs |  |
Interest expense on financial liabilities at amortised cost | -42.7 | -49.1
Interest expense on financial liabilities at fair value through profit or loss | -5.4 | -
Losses on investments at amortised cost | - | 0.1
Losses on investments at fair value through profit or loss | -0.1 | -0.3
Other finance costs | -1.3 | -0.1
Total interest expense and other finance costs | -49.6 | -49.5
Interest expense for lease liabilities | -89.4 | -78.6
Exchange differences |  |
Exchange differences and changes in fair values of derivatives, loans denominated in foreign currencies not qualifying for hedge accounting, and cash at bank | -1.2 | -1.3
Total exchange differences | -1.2 | -1.3
Total finance income and costs | -125.4 | -111.7

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 objectives 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 their maturity exceeds 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 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.

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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. The portion of the fixed‑rate bond that is designated in the fair value
hedge relationship is measured at fair value through profit or loss. 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
Derivative contracts are initially recognised in the balance sheet at fair value and are
subsequently remeasured to fair value at each reporting date. 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.
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 in case of cash flow hedge and in financial items in case of fair value
hedge. 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 from
cash flow hedge accounting 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 loans 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
loans 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.

|  | 167

As at 31 December 2025

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 | 15.7 |  | - | 15.7 | 15.7 |  |  | 15.7
Non-current receivables |  | 62.8 |  | 62.8 | 62.8 |  |  |
Non-current receivables, derivatives | 1.1 |  | 4.3 | 5.4 | 5.4 |  | 5.4 |
Current financial assets |  |  |  |  |  |  |  |
Trade receivables |  | 1,014.8 |  | 1,014.8 | 1,014.8 |  |  |
Other receivables |  | 309.3 |  | 309.3 | 309.3 |  |  |
Other receivables, derivatives | 0.7 |  | 0.4 | 1.1 | 1.1 |  | 1.1 |
Cash and cash equivalents | - | 166.2 | - | 166.2 | 166.2 |  | - |
Total financial assets | 17.5 | 1,553.1 | 4.7 | 1,575.3 | 1,575.3 |  | 6.5 | 15.7

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 | 148.0 | 1,137.8 |  | 1,285.9 | 1,299.3 |  | 148.0 |
Non-current lease liabilities |  | 1,752.9 |  | 1,752.9 | 1,752.9 |  |  |
Non-current non-interest-bearing liabilities |  | 59.9 |  | 59.9 | 59.9 |  |  |
Non-current non-interest-bearing liabilities, derivatives | 0.1 |  | 0.9 | 1.1 | 1.1 |  | 1.1 |
Current financial liabilities |  |  |  |  |  |  |  |
Current interest-bearing liabilities |  | 189.3 |  | 189.3 | 189.3 |  |  |
Current lease liabilities |  | 344.6 |  | 344.6 | 344.6 |  |  |
Trade payables |  | 1,388.3 |  | 1,388.3 | 1,388.3 |  |  |
Other non-interest-bearing liabilities |  | 802.2 |  | 802.2 | 802.2 |  |  |
Other non-interest-bearing liabilities, derivatives | 0.1 |  | 2.0 | 2.2 | 2.2 |  | 2.2 |
Total financial liabilities | 148.3 | 5,674.9 | 3.0 | 5,826.2 | 5,839.7 |  | 151.3 |

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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 |

|  | 169

Non-current interest-bearing liabilities valued at fair value through profit or loss, amounting
to €148.0 million, include the portion of the bond subject to fair value valuation.
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 €0.0 million (€185.2 million).
Non-current receivables from associates and joint ventures contain the shareholder loan
granted to Mercada Oy.
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 €40.2 million (€43.4 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 loans from financial institutions have been calculated based on the present
value of future cash flows using the 1.9%−2.7% 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 loans has been
presented in Note 4.3.

Changes in level 3 instruments, € million | 2025 | 2024
Shares and interests as at 1 January | 14.8 | 14.0
Purchases | 1.5 | 0.8
Gains and losses through profit or loss | -0.5 | -0.1
Changes in fair value | -0.0 | -0.0
Shares and interests as at 31 December | 15.7 | 14.8

Level 3 includes 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 €0.5 million has been recorded
on these investments for the financial year 2025.
4.6 Commitments and contingencies

€ million | 2025 | 2024
Collateral given for own commitments |  |
Pledges | 9.0 | 9.0
Mortgages | 285.7 | 222.9
Guarantees | 13.1 | 12.3
Other commitments and contingent liabilities | 110.2 | 66.3
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. Mortgages for the comparison period has been adjusted.
Guarantee maturities are €1.7 million in 2026 and €11.4 million from 2027 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
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 Aittokulma | Jyväskylä, 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 | 54.12 | 54.12
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 Iso-Valkeinen | Kuopio, Finland | 100.00 | 100.00
Kiinteistö Oy Kittilän Säästökulma | Helsinki, Finland | 100.00 | 100.00

Owned by the parent | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Kiinteistö Oy Kokkolan Kaanaanmaantie 2-4 | Kokkola, Finland | 64.78 | 64.78
Kiinteistö Oy Kuopion Tulliportinkatu 33 | Kuopio, 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 Ravattulan Kauppakeskus | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Riistaveden Keskustie 15 | Helsinki, Finland | 79.50 | 79.50
Kiinteistö Oy Sunan Hallitalo | Helsinki, Finland | 100.00 | 100.00
Kiinteistö Oy Tarkkaiikka | Oulu, Finland | 100.00 | 100.00
Klintcenter Ab | Mariehamn, Åland | 100.00 | 100.00
Koskelan Ostokeskus Oy | Oulu, Finland | 58.64 | 58.64
K-Liikenneasema Oy | Helsinki, Finland | 100.00 | 100.00
Onninen Oy | Helsinki, Finland | 100.00 | 100.00
Peltosaaren Liikekeskus Oy | Riihimäki, Finland | 59.67 | 59.67
Reinin Liha Oy | Helsinki, Finland | 100.00 | 100.00
Saunakallion Ostoskeskus Oy | Järvenpää, Finland | 100.00 | 100.00
Vallmo Tikkuri Oy | Helsinki, Finland | 100.00 | 100.00

|  | 171

Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
BREIFLÅTVEIEN 15/21 AS | Skedsmokorset, Norway | 100.00 |
Davidsen A/S | Vojens, Denmark | 90.00 |
Davidsen Ejendomme A/S | Vojens, Denmark | 90.00 |
Davidsen Midt A/S | Skive, Denmark | 90.00 |
Davidsen Nord A/S | Nykøbing Mors, Denmark | 90.00 |
Davidsen Øst A/S | Køge, Denmark | 90.00 |
Davidsen Øst Ejendomme A/S | Køge, Denmark | 90.00 |
Ejendomsselskabet Hedelandsvej 10-12 Herning ApS | Skive, Denmark | 90.00 |
Ejendomsselskabet Neptunvej 1 Ikast ApS | Skive, 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 Tikkurilan Kauppakeskus | Vantaa, Finland | 98.84 |
Kiinteistö Oy Raha-asema | Vantaa, Finland | 60.00 |
KR Fastigheter i Järfälla 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 |
ØRBRADDEN 3/5 AS | Vefsn, Norway | 100.00 |

Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Sport1 Flokkmann Mosjøen AS | Mosjøen, Norway | 100.00 |
T-24 ApS | Kolding, Denmark | 90.00 |
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
Munkki Holding Oy | Helsinki, Finland | 50.00 | 50.00
Vähittäiskaupan Takaus Oy | Helsinki, Finland | 42.84 | 42.84

Owned by other Group companies | Domicile | Group's ownership interest, % | Parent's ownership interest, %
Proffsenteret AS | Honeføss, Norway | 34.11 |
Proffsenteret Eiendom AS | Honeføss, Norway | 34.11 |
KS Holding UAB | Vilna, Liettua | 50.01 |

|  | 172

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 Naantalin Tullinkulma | Naantali, Finland | 24.45 | 24.45
Asunto Oy Soukan Itäinentorni | Espoo, Finland | 46.60 | 46.60
Asunto-Oy Punkalaitumen Pankkitalo | Punkalaidun, Finland | 33.82 | 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 | 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 | 50.00 |
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 | 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 real estate 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
2025 or 2024, the pension assets did not include Kesko Corporation shares. Properties
owned by Pension Fund have been leased to Kesko Group. During the financial years 2025
and 2024 Kesko Group did not pay contributions to Pension Fund.
The following transactions were carried out with related parties:

Income statement | Associates and joint ventures | Board and management | Pension Fund
€ million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
Sales of goods | 7.6 | 8.2 | 84.8 | 85.3 | - | -
Sales of services | 5.1 | 4.6 | 0.7 | 0.7 | 0.2 | 0.3
Purchases of goods | - | - | -13.0 | -10.4 | - | -
Purchases of services | -0.1 | -0.1 | - | - | - | -
Other operating income | 1.2 | 1.2 | 16.4 | 16.5 | - | -
Other operating costs | -4.2 | -4.3 | -0.2 | -0.2 | -0.1 | -0.1
Finance income | 5.7 | 6.0 | - | - | - | -
Finance expenses | - | - | - | - | -0.1 | -0.2

Balance sheet | Associates and joint ventures | Board and management | Pension Fund
€ million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
Current receivables | 2.3 | 6.0 | 6.3 | 8.7 | 1.2 | -
Non-current receivables | 57.5 | 58.0 | - | - | - | -
Current liabilities | 8.1 | 7.8 | 1.3 | 1.2 | 4.7 | 6.4

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Items related to leases | Associates and joint ventures | Board and management | Pension Fund
€ million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
Cash flow from leases | 38.4 | 40.7 | - | - | 6.3 | 6.2
Lease liabilities | 282.1 | 197.1 | - | - | 31.8 | 36.7

At the balance sheet date, receivables arisen from Kesko's sales to companies controlled by
the Board members were €6.3 million (€8.7 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 value of the counter security was €7.8 million (€7.3 million).
Non-current receivables from associates and joint ventures contain the shareholder loan
granted to Mercada Oy. Current receivables include €0.5 million financing loan granted to
UAB Kesko Senukai Lithuania. 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 annual purchases and the quality of operations.
The Group's associated company Vähittäiskaupan Takaus Oy distributed dividends of €5.5
million to Kesko Corporation in 2025.
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 | 2025 | 2024
Jorma Rauhala | President and CEO as of 1.2.2024 | 2,008.0 | 1,186.6
Mikko Helander | President and CEO until 31.1.2024 | - | 2,084.5
Group Management Board | other members | 3,975.0 | 3,895.9
Esa Kiiskinen | Board Chairman | 133.8 | 122.0
Timo Ritakallio | Board Deputy Chairman as of 24.3.2025 | 85.8 | 62.0
Tiina Alahuhta-Kasko | Board member as of 24.3.2025 | 60.4 | -
Jannica Fagerholm | Board member | 87.0 | 79.8
Pauli Jaakola | Board member as of 26.3.2024 | 61.0 | 55.4
Piia Karhu | Board member | 64.0 | 60.2
Jussi Perälä | Board member | 61.0 | 56.6
Peter Fagernäs | Board Deputy Chairman until 24.3.2025 | 2.4 | 73.8
Toni Pokela | Board member until 26.3.2024 | - | 1.2
Total |  | 6,538.4 | 7,678.1

Approximately 30% of the annual fees for Board members was paid in shares in the company and the remaining fee was
paid in cash. The members of the Board of Directors were granted 7,134 Kesko Corporation B shares in 2025. 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.

|  | 174

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, is covered by a defined benefit supplementary pension plan granted by
the Kesko Pension Fund, with a retirement age of 65. The defined benefit old-age pension
amounts to 66% of the pensionable earnings under the Employees’ Pensions Act (TyEL)
based on the last 10 years of employment. No contribution was paid to the President and
CEO’s supplementary pension in the 2025 financial year. Due to a surplus, the accrued IFRS
pension cost for the supplementary pension benefit was a positive €0.1 million ( €0.1 million).
The accrued pension cost for the President and CEO's statutory pension provision was €0.2
million (€0.2 million). Two Group Management Board members are covered by a defined
benefit supplementary pension in accordance with the rules of Kesko Pension Fund and their
personal service contracts. Five Group Management Board members are covered by defined
contribution supplementary pension arrangements.
Share awards
During the reporting period 2025 members of the Group Management Board were granted
109,145 shares based on the PSP 2023–2026, while the maximum number of shares to be
granted was 279,860. The number of shares represents gross earnings, from which withholding
tax and transfer tax are deducted. During the reporting period 2024 members of the Group
Management Board were granted 99,428 shares based on the PSP 2022–2025. 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 December 2025 the President and CEO held 254,443 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 2025, the Group Management Board including the
President and CEO held 2,824 Kesko Corporation A shares and 635,757 Kesko Corporation B
shares, which represented 0.16% 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 2025 was €-8.7
million (€-7.0 million). As at 31 December 2025, the amount to be recognised as expense for
the financial years 2026–2028 is estimated at a total of €9.0 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, %), the absolute total
shareholder return (TSR, %) of a Kesko B share and the target measuring Kesko’s
sustainability are the performance criteria for the PSP plans.
In 2025 Kesko Corporation's Board of Directors decided to establish a new share-based
compensation plan, Performance Share Plan President and CEO, and a transitional phase
share-based compensation plan for Kesko’s President and CEO. The new performance-
based Performance Share Plan consists of individual annually commencing share plans. Each
share plan has a three-year performance period and a one-year commitment period following
the payment of the potential share award. The transitional share-based compensation plan
covers the transitional phase from President and CEO’s long-term compensation plan with a
two-year performance period to the new structure with a three-year performance period,
and it includes a share plan starting in 2025, which includes a two-year performance period
and a two-year commitment period following the potential payment of share award. The
share awards for the share plans will be paid to the participant in Kesko B shares and they are
subject to the same terms and conditions during the commitment period as the performance-
based Performance Share Plan. A maximum total of 127,000 Kesko B shares may be granted
in relation to each plan. The information about the new share-based payment plans is
included in the following table in column “PSP 2025–2028”.

Assumptions for share award calculations | PSP 2025–2028 | PSP 2024–2027 | PSP 2023–2026 | PSP 2022–2025
Grant dates | 4.2.2025 | 29.1.2024 | 1.2.2023 | 2.2.2022
Grant date fair value of share award, € | 17.54 | 16.51 | 20.62 | 27.71
Share price at grant date, € | 18.44 | 17.41 | 21.64 | 28.77
Shares transferred in** | 2027/2028 | 2026 | 2025 | 2024
Number of share awards granted, maximum, pcs* | 885,737 | 828,423 | 710,557 | 513,800
Changes in the number of shares granted, pcs | -8,850 | -107,350 | -201,770 | -28,475
Actual amount of share award, pcs* | - | - | 197,938 | 183,796
Number of plan participants at end of financial year | 60 | 59 | 52 | 60
Share price at balance sheet date, € | 19.25 | 18.18 | 17.93 | 20.62
Fulfilment of performance criteria, % | - | - | 38.9 | 41.5
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 period of the new PSP President and CEO plan is three years. The payment of the shares will take place during 2028.

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.

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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.

Assumptions for share award calculations | KPSP and RSP 2025 | KPSP and RSP 2024 | KPSP and RSP 2023 | KPSP and RSP 2022
Grant dates | 4.2.2025 | 29.1.2024 | 1.2.2023 | 2.2.2022
Grant date fair value of share award, € | 17.54 | 16.51 | 20.62 | 27.71
Share price at grant date, € | 18.44 | 17.41 | 21.64 | 28.77
Shares transferred in | 2028 | 2027 | 2026 | 2025
Number of share awards granted, maximum, pcs* | 351,870 | 447,315 | 293,850 | 217,286
Changes in the number of shares granted, pcs | -13,325 | -30,428 | -26,323 | -36,451
Actual amount of share award, pcs* | - | 146,994 | 78,012 | 79,134
Number of plan participants at end of financial year | 166 | 149 | 140 | 126
Share price at balance sheet date, € | 19.25 | 18.18 | 17.93 | 20.62
Fulfilment of performance criteria, % | - | 35.8 | 31.7 | 22.3
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.
Legal proceedings concerning UAB Kesko Senukai Lithuania – Kesko disclosed in its financial
statements for 2024 that it is party to a case pending before the Supreme Court concerning
an action to annul an arbitral award, brought by the minority shareholders of UAB Kesko
Senukai Lithuania and UAB Kesko Senukai Lithuania. The arbitral award concerns the
shareholder agreement of UAB Kesko Senukai Lithuania. The Supreme Court gave its
decision on the matter in 2025 and set aside the judgement of the Helsinki Court of Appeal,
and remitted the action for annulment of the arbitral award to the Helsinki Court of Appeal
for further consideration, where the appeal remains pending. In addition, Kesko disclosed in
its financial statements for 2024 that the minority shareholders of UAB Kesko Senukai
Lithuania and UAB Kesko Senukai Lithuania had initiated new arbitration proceedings against
Kesko, related to the shareholder agreement between the parties. Those proceedings remain
pending.
5.5 Events after the balance sheet date
No significant events after the reporting period.

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

€ | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Net sales | 6,844,736,627.34 | 6,659,910,905.58
Other operating income | 1,007,872,329.28 | 887,656,680.44
Materials and services | -6,121,491,918.61 | -5,913,991,150.11
Change in inventory | 17,767,642.47 | 12,773,894.68
Employee benefit expenses | -398,534,512.73 | -378,339,561.48
Depreciation, amortisation and impairment | -134,098,866.30 | -126,306,061.75
Other operating expenses | -803,731,758.95 | -783,861,147.15
Operating profit | 412,519,542.50 | 357,843,560.21
Finance income and costs | 2,882,802.58 | 7,449,393.46
Profit before appropriations and taxes | 415,402,345.08 | 365,292,953.67
Appropriations |  |
Change in depreciation reserve | -15,108,994.45 | -30,492,954.39
Group contribution | 31,968,626.98 | 105,653,373.11
Profit before taxes | 432,261,977.61 | 440,453,372.39
Income taxes | -69,160,499.80 | -83,324,585.17
Profit for the financial year | 363,101,477.81 | 357,128,787.22

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Parent company's balance sheet

€ | 31 Dec. 2025 | 31 Dec. 2024
ASSETS |  |
NON-CURRENT ASSETS |  |
INTANGIBLE ASSETS |  |
Intangible rights | 4,030,530.25 | 4,401,946.87
Other intangible assets | 303,777,228.94 | 248,750,974.93
Prepayments | 4,012,842.71 | 3,079,496.77
| 311,820,601.90 | 256,232,418.57
PROPERTY, PLANT AND EQUIPMENT |  |
Land and waters |  |
Owned | 308,113,112.02 | 289,933,581.65
Leasehold interests and connection fees | 5,777,477.92 | 7,455,791.65
Buildings | 816,817,664.06 | 734,977,190.65
Machinery and equipment | 119,510,054.55 | 99,474,165.78
Other tangible assets | 6,384,592.94 | 6,238,278.31
Prepayments and construction in progress | 117,724,585.98 | 68,421,488.72
| 1,374,327,487.47 | 1,206,500,496.76
INVESTMENTS |  |
Investments in subsidiaries | 1,462,273,321.56 | 1,544,521,207.49
Investments in associates | 125,163,121.96 | 122,431,239.85
Other investments | 31,593,727.94 | 26,302,948.15
| 1,619,030,171.46 | 1,693,255,395.49
CURRENT ASSETS |  |
INVENTORIES |  |
Finished products/goods | 332,997,697.51 | 315,230,055.04
| 332,997,697.51 | 315,230,055.04

€ | 31 Dec. 2025 | 31 Dec. 2024
RECEIVABLES |  |
Long-term |  |
Receivables from subsidiaries | 8,647,764.01 | 7,664,587.02
Receivables from associates | 57,538,585.04 | 58,018,585.04
Loan receivables | 755,964.60 | 751,838.24
Other receivables | 14,322,210.36 | 12,196,937.72
| 81,264,524.01 | 78,631,948.02
Short-term |  |
Trade receivables | 450,987,241.58 | 391,096,017.14
Receivables from subsidiaries | 345,323,552.61 | 384,073,992.89
Receivables from associates | 2,162,903.26 | 5,098,845.43
Loan receivables | 253,773.88 | 292,993.99
Other receivables | 8,235,334.50 | 11,853,472.66
Prepayments and accrued income | 99,554,046.59 | 93,557,861.75
| 906,516,852.42 | 885,973,183.86
OTHER FINANCIAL ASSETS | - | 15,000,000.00
CASH AND CASH EQUIVALENTS | 156,122,225.73 | 457,966,759.80
TOTAL ASSETS | 4,782,079,560.50 | 4,908,790,257.54

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€ | 31 Dec. 2025 | 31 Dec. 2024
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 | 917,730,413.60 | 915,749,904.54
Profit for the financial year | 363,101,477.81 | 357,128,787.22
| 1,941,781,589.26 | 1,933,828,389.61
APPROPRIATIONS |  |
Depreciation reserve | 258,494,398.99 | 237,152,690.30
PROVISIONS |  |
Provisions | 3,331,631.24 | 7,717,854.63
LIABILITIES |  |
Non-current |  |
Notes | 300,000,000.00 | 300,000,000.00
Loans from financial institutes | 800,000,000.00 | 620,000,000.00
Pension loans | 11,486,000.00 | 20,355,000.00
Other creditors | 20,679,961.32 | 18,729,124.53
| 1,132,165,961.32 | 959,084,124.53
Current |  |
Loans from financial institutes | - | 150,000,000.00
Pension loans | 8,869,000.00 | 11,994,000.00
Advances received | 20,584,760.84 | 20,095,560.65
Trade payables | 690,475,488.90 | 708,804,747.35
Payables to subsidiaries | 145,228,076.24 | 363,884,310.23
Payables to associates | 8,099,664.44 | 6,684,450.49
Other payables | 305,413,625.41 | 272,966,364.29
Accruals and deferred income | 267,635,363.86 | 236,577,765.46
| 1,446,305,979.69 | 1,771,007,198.47
TOTAL LIABILITIES | 4,782,079,560.50 | 4,908,790,257.54

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Parent company's cash flow statement

€ | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Cash flows from operating activities |  |
Profit before appropriations | 415,402,345.08 | 365,292,953.67
Adjustments |  |
Depreciation according to plan | 134,098,866.30 | 126,306,061.75
Finance income and costs | -2,882,802.58 | -7,449,393.46
Other adjustments | -54,639,476.22 | 23,936,772.13
| 491,978,932.58 | 508,086,394.09
Change in working capital |  |
Current non-interest-bearing receivables, increase (-)/decrease (+) | 26,087,081.53 | 11,619,535.70
Inventories increase (-)/decrease (+) | -17,767,642.47 | -12,849,154.44
Current non-interest-bearing liabilities, increase (+)/ decrease (-) | -39,209,592.15 | -24,111,780.18
| -30,890,153.09 | -25,341,398.92
Interests paid and other finance costs | -52,699,259.18 | -70,797,801.96
Interests received | 21,712,261.64 | 31,059,861.59
Dividends received | 51,101,386.80 | 61,049,078.93
Income tax paid | -66,375,315.51 | -93,217,047.97
| -46,260,926.25 | -71,905,909.41
Net cash generated from operating activities | 414,827,853.24 | 410,839,085.76
Cash flows from investing activities |  |
Purchases of property, plant, equipment and intangible assets | -284,963,519.61 | -287,056,919.33
Acquisitions of subsidiaries | -141,106,943.24 | -247,385,142.08
Acquisitions of associates | -5,512,122.48 | -969,000.00
Proceeds from other investments | 7,300.00 | 9,570.00
Proceeds from disposal of property, plant, equipment and intangible assets | 72,807,222.80 | 8,413,389.78
Long-term receivables, increase (-)/decrease (+) | -504,499.12 | 29,989,808.69
Other financial assets, increase (-)/decrease (+) | 15,000,000.00 | -15,000,000.00
Net cash used in investing activities | -344,272,581.65 | -511,998,292.94

€ | 1 Jan.–31 Dec. 2025 | 1 Jan.–31 Dec. 2024
Cash flows from financing activities |  |
Interest-bearing liabilities, increase (+)/decrease (-) | -28,706,267.75 | 532,069,342.98
Short-term interest-bearing receivables, increase (-)/ decrease (+) | -6,778,741.61 | 34,681,997.40
Dividends paid | -370,209,580.31 | -320,328,125.47
Group contributions received and paid | 31,968,626.98 | 105,653,373.11
Other items | 1,310,215.75 | 7,036,792.84
Net cash used in financing activities | -372,415,746.94 | 359,113,380.86
Change in cash and cash equivalents | -301,860,475.35 | 257,954,173.68
Cash and cash equivalents as at 1 January | 457,966,759.80 | 200,012,586.12
Cash and cash equivalents as at 31 December | 156,106,284.45 | 457,966,759.80

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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 amortisation according to plan
and possible impairments.
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 impairments.
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 loans. 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

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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, 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.
Changes in the corporate structure
The wholly owned subsidiary K-Market Oy of Kesko Corporation was merged into Kesko
Corporation on 31 October 2025.
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 | 2025 | 2024
Grocery trade | 5,943.0 | 5,770.0
Building and home improvement trade | 899.6 | 888.4
Others | 2.1 | 1.5
Total | 6,844.7 | 6,659.9

Note 3. Material and services

€ million | 2025 | 2024
Material and services | -6,004.3 | -5,802.0
Change in inventory | 17.8 | 12.8
External services | -117.2 | -112.0
Total | -6,103.7 | -5,901.2

Note 4. Other operating income

€ million | 2025 | 2024
Gains on sales of real estate and shares | 23.4 | 0.3
Rent income | 100.7 | 110.4
Fees for services | 608.7 | 577.5
Profits from mergers | 72.2 | -
Others | 202.8 | 199.4
Total | 1,007.9 | 887.7

Note 5. Employee benefit expenses

€ million | 2025 | 2024
Salaries and fees | -331.4 | -314.6
Social security costs |  |
Pension costs | -57.3 | -55.3
Other social security costs | -9.8 | -8.5
Total | -398.5 | -378.3

The average number of personnel at Kesko Corporation was 7,374 (7,403) persons.

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Salaries and fees to the management

€ million | 2025 | 2024
Managing Director | 2.0 | 3.3
Members of the Board of Directors | 0.6 | 0.5
Total | 2.6 | 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 | 2025 | 2024
Depreciation according to plan | -132.6 | -125.0
Impairment, non-current assets | -1.5 | -1.3
Total | -134.1 | -126.3

Note 7. Other operating expenses

€ million | 2025 | 2024
Rent expenses | -353.4 | -361.8
Marketing expenses | -151.0 | -149.1
Maintenance of real estate and store sites | -106.8 | -109.2
Losses on disposals of non-current assets | -3.3 | -1.7
ICT expenses | -93.3 | -87.1
Losses from mergers | -36.1 | -14.6
Other operating expenses | -59.9 | -60.3
Total | -803.7 | -783.9

Auditors' fees

€ million | 2025 | 2024
Audit firm Deloitte |  |
Audit | 0.4 | 0.3
Other statutory services | 0.1 | 0.1
Other services | 0.1 | 0.1
Total | 0.6 | 0.5

Note 8. Finance income and costs

€ million | 2025 | 2024
Income from long-term investments |  |
Dividend income from subsidiaries | 45.1 | 38.3
Dividend income from associates | 5.5 | 22.3
Dividend income from others | 0.5 | 0.4
Gains on sales of investments | - | 0.0
Income from long-term investments, total | 51.1 | 61.1
Other interest and finance income |  |
From subsidiaries | 11.5 | 18.4
From others | 12.2 | 18.9
Interest and finance income, total | 23.8 | 37.3
Impairment of investments held as non-current assets |  |
Impairment of shares | -14.0 | -14.9
Impairment and changes in fair value of investments held as non-current assets, total | -14.0 | -14.9
Interest and other finance costs |  |
To subsidiaries | -15.7 | -27.9
To others | -42.3 | -48.1
Interest and finance costs, total | -58.0 | -76.0
Total | 2.9 | 7.4

Note 9. Appropriations

€ million | 2025 | 2024
Difference between depreciation according to plan and depreciation in taxation | -15.1 | -30.5
Group contributions received | 63.5 | 119.8
Group contributions paid | -31.5 | -14.1
Total | 16.9 | 75.2

For the financial years 2020–2025, an increased 50% depreciation has been applied to
machinery and equipment and similar fixed assets acquired, in accordance with the Finnish
Business Tax Act.

|  | 184

Note 10. Changes in provisions

€ million | 2025 | 2024
Other changes | 4.4 | 5.7
Total | 4.4 | 5.7

Note 11. Income taxes

€ million | 2025 | 2024
Income taxes on group contributions | -6.4 | -21.1
Income taxes on ordinary activities | -62.8 | -62.3
Taxes for prior years | 0.0 | 0.1
Total | -69.2 | -83.3

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 €51,7 million. The amount of other deferred tax
liabilities or assets is not material.

|  | 185

Notes to the balance sheet
Note 13. Intangible assets

2025 € million | Intangible rights | Other intangible assets | Prepayments | Intangible assets total
Acquisition cost as at 1 Jan. | 17.9 | 548.1 | 3.1 | 569.1
Increases | 0.8 | 55.8 | 3.0 | 59.6
Transferred in mergers | 0.4 | 87.6 | - | 87.9
Decreases | - | -7.9 | -0.0 | -7.9
Transfers between items | 0.1 | 17.1 | -2.0 | 15.2
Acquisition cost as at 31 Dec. | 19.2 | 700.6 | 4.0 | 723.8
Accumulated depreciation as at 1 Jan. | -13.5 | -299.3 |  | -312.8
Transferred in mergers | -0.1 | -46.8 |  | -46.9
Accumulated depreciation on decreases and transfers | - | 6.0 |  | 6.0
Depreciation and amortisations for the financial year | -1.6 | -56.7 |  | -58.3
Accumulated depreciation as at 31 Dec. | -15.1 | -396.8 |  | -412.0
Book value as at 31 Dec. | 4.0 | 303.8 | 4.0 | 311.8

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

|  | 186

Note 14. Property, plant and equipment

2025 € 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. | 289.9 | 7.6 | 1,210.7 | 341.5 | 25.6 | 68.4 | 1,943.7
Increases | 6.7 | 0.1 | 66.8 | 35.2 | 1.4 | 91.0 | 201.2
Transferred in mergers | 22.0 | 0.1 | 87.6 | 28.8 | 0.8 | 8.3 | 147.7
Decreases | -11.1 | -1.9 | -45.5 | -15.1 | -1.7 | -1.5 | -76.8
Transfers between items | 0.6 | 0.0 | 27.6 | 5.0 | 0.0 | -48.5 | -15.2
Acquisition cost as at 31 Dec. | 308.1 | 6.0 | 1,347.2 | 395.5 | 26.1 | 117.7 | 2,200.6
Accumulated depreciation as at 1 Jan. | - | -0.2 | -475.7 | -242.0 | -19.3 |  | -737.2
Transferred in mergers | - | - | -24.4 | -22.2 | -0.5 |  | -47.1
Accumulated depreciation on decreases and transfers | - | - | 16.6 | 14.5 | 1.3 |  | 32.4
Depreciation and amortisations for the financial year | - | -0.0 | -46.9 | -26.2 | -1.2 |  | -74.4
Accumulated depreciation as at 31 Dec. | - | -0.2 | -530.4 | -276.0 | -19.7 |  | -826.3
Book value as at 31 Dec. | 308.1 | 5.8 | 816.8 | 119.5 | 6.4 | 117.7 | 1,374.3

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

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Note 15. Investments

2025 € million | Investments in subsidiaries | Investments in associates | Other investments | Total
Acquisition cost as at 1 Jan. | 1,573.0 | 122.4 | 26.3 | 1,721.7
Increases | 166.4 | 5.5 | 4.0 | 175.9
Transferred in mergers | 0.6 | 1.4 | 1.5 | 3.5
Decreases | -235.2 | -4.1 | -0.3 | -239.6
Transfers between items | - | - | 0.0 | 0.0
Acquisition cost as at 31 Dec. | 1,504.7 | 125.3 | 31.6 | 1,661.6
Impairment as at 1 Jan. | -28.5 | -0.1 | - | -28.5
Impairments on decreases for the financial year | -14.0 | - | -0.0 | -14.0
Impairment as at 31 Dec. | -42.5 | -0.1 | -0.0 | -42.6
Book value as at 31 Dec. | 1,462.3 | 125.2 | 31.6 | 1,619.0

Kesko Corporation's ownership interests in other co mpanies as at 31 December 2025 are pres ented in the notes to the consolidated financial statement s.

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 | 0.0 | - | 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 | - | - | -28.5
Book value as at 31 Dec. | 1,544.5 | 122.4 | 26.3 | 1,693.3

|  | 188

Note 16. Receivables
Receivables from subsidiaries

€ million | 2025 | 2024
Long-term receivables |  |
Loan receivables | 8.6 | 7.7
Long-term receivables, total | 8.6 | 7.7
Short-term receivables |  |
Trade receivables | 4.2 | 11.3
Loan receivables | 319.4 | 337.7
Prepayments and accrued income | 21.7 | 35.2
Short-term receivables, total | 345.3 | 384.1
Total | 354.0 | 391.7

Receivables from associates and joint ventures

€ million | 2025 | 2024
Long-term receivables |  |
Loan receivables | 57.5 | 58.0
Long-term receivables, total | 57.5 | 58.0
Short-term receivables |  |
Accrued income | 1.5 | 1.4
Other receivables | 0.7 | 3.7
Short-term receivables, total | 2.2 | 5.1
Total | 59.7 | 63.1

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

€ million | 2025 | 2024
Taxes | 2.8 | 5.6
Fees for services | 9.2 | 4.6
Employee benefit expenses | 7.1 | 6.4
Purchases | 33.2 | 30.8
Others | 47.3 | 46.2
Total | 99.6 | 93.6

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 Jan. 2024 | 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 Dec. 2024 | 197.3 | 197.5 | 243.4 | 22.8 | 1,272.9 | 1,933.8
Dividends |  |  |  |  | -358.3 | -358.3
Treasury shares |  |  |  |  | 3.1 | 3.1
Profit for the year |  |  |  |  | 363.1 | 363.1
Balance as at 31 Dec. 2025 | 197.3 | 197.5 | 243.4 | 22.8 | 1,280.8 | 1,941.8

Restricted equity | 2025 | 2024
Share capital | 197.3 | 197.3
Share premium | 197.5 | 197.5
Total | 394.8 | 394.8

Non-restricted equity | 2025 | 2024
Contingency fund | 243.4 | 243.4
Reserve of invested non-restricted equity | 22.8 | 22.8
Retained earnings | 1,280.8 | 1,272.9
Total | 1,547.0 | 1,539.0

|  | 189

Calculation of distributable assets | 2025 | 2024
Other reserves | 266.2 | 266.2
Retained earnings | 917.7 | 915.7
Profit for the year | 363.1 | 357.1
Total | 1,547.0 | 1,539.0

On 31 December 2025, Kesko Corporation’s distributable assets totalled €1,547,000,994.36 .

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

Votes attached to shares | Number of votes
A share | 10
B share | 1

Board's authorisations to acquire and issue own shares
On 31 December 2025, the company held a total of 1,960,181 of its own B shares, acquired
under authorisations granted by the Annual General Meeting to the Board of Directors
during the 2018 financial year. The numbers of shares are presented on a post‑split basis
following the share split carried out in 2020. The shares are held by the company as treasury
shares, and the Board of Directors is authorised to dispose of them. The acquisition cost of
the B shares acquired in 2018, totalling €23.9 million, has been recognised as a deduction
from retained earnings within equity. The Board of Directors has an authorisation granted by
the Annual General Meeting on 24 March 2025, valid until 30 June 2026, to issue up to
33,000,000 B shares and to acquire up to 16,000,000 B shares.
Treasury shares
In 2025, Kesko Corporation transferred 156,490 Kesko B shares held as treasury shares to
members of management and other key persons in the company, while a total of 1,205 B
shares were returned to Kesko in accordance with the terms and conditions of Kesko's share
award plans. Kesko issued related stock exchange releases on 12 March 2025, 30 April 2025
and 18 September 2025. Kesko issued a stock exchange release on 5 February 2025
regarding the most recent share-based commitment and incentive plans. In addition, Kesko
transferred 7,134 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 30 April 2025.
Kesko’s Annual General Meeting of 24 March 2025 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 2026, and were communicated in a
stock exchange release issued on 24 March 2025.

| Shares
Own B shares held by the Company as at 31 December 2024 | 2,122,600
Transferred, share-based compensation scheme | -156,490
Transferred, Board of Directors | -7,134
Returned during the financial year | 1,205
Own B shares held by the Company as at 31 December 2025 | 1,960,181

Note 18. Provisions

€ million | 2025 | 2024
Provisions for leases | 2.4 | 6.4
Other provisions | 0.9 | 1.3
Total | 3.3 | 7.7

Note 19. Non-current liabilities
Kesko Corporation has six bilateral loans totalling €800 million. Kesko Corporation has a
€300 million unsecured senior green bond that matures on 2 February 2030 and bears an
annual interest rate of 3.5%. In addition, Kesko’s financing sources include pension loans,
commercial paper programmes, and payables to K-retailers, which consist of advance
payments and chain rebates.

|  | 190

Note 20. Current liabilities

€ million | 2025 | 2024
Liabilities to subsidiaries |  |
Trade payables | 6.6 | 7.5
Accruals and deferred income | 6.1 | 9.6
Other payables | 132.6 | 346.8
Total | 145.2 | 363.9
Liabilities to associates |  |
Trade payables | 0.0 | 0.1
Accruals and deferred income | 0.0 | 0.0
Other payables | 8.0 | 6.6
Total | 8.1 | 6.7
Accruals and deferred income |  |
Employee benefit expenses | 107.9 | 102.8
Accruals and deferred income from purchases | 25.5 | 32.0
Taxes | 1.5 | 0.0
Fees for services | 28.1 | 16.4
Others | 104.5 | 85.4
Total | 267.6 | 236.6

Note 21. Non-interest-bearing liabilities

€ million | 2025 | 2024
Current liabilities | 1,198.9 | 1,198.5
Total | 1,198.9 | 1,198.5

Note 22. Guarantees, commitments and contingencies

€ million | 2025 | 2024
Real estate mortgages |  |
For own debt | 176.5 | 162.1
For subsidiaries | 0.7 | 0.7
Pledged shares | 9.0 | 9.0
Guarantees |  |
For own debt | 2.0 | 0.4
For subsidiaries | 68.5 | 88.4
Other liabilities and liability engagements |  |
For own debt | 64.1 | 53.8
Rent liabilities on machinery and fixtures |  |
Due within a year | 8.2 | 7.5
Due later | 7.6 | 6.5
Rent liabilities on real estate |  |
Due within a year | 313.5 | 299.3
Due later | 1,765.7 | 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 its foreign subsidiaries, and as the Group's parent company, the
subsidiaries' hedgings against the parent company.
Foreign currency exposure is hedged with currency derivatives in line with the Group’s
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 derivatives are classified as level 2 as their valuation is based on observable market data.
The maximum credit risk corresponds to their fair value at the balance sheet date.
The results of derivatives are recognised in financial items.

|  | 191

Company's transaction exposure as at 31 Dec. 2025, € million | USD | SEK | NOK | PLN
Transaction risk | -4.4 | -10.9 | 1.6 | -13.2
Hedging derivatives | 22.1 | 7.4 | -5.1 | 8.3
Exposure | 17.8 | -3.5 | -3.5 | -4.9

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

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 2025, € million | USD | SEK | NOK | PLN
Change +10% | -1.6 | 0.3 | 0.3 | 0.4
Change -10% | 2.0 | -0.4 | -0.4 | -0.5

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

Derivatives

Fair values of derivative contracts, € million | 31 Dec. 2025 Positive fair value (balance sheet value) | 31 Dec. 2025 Negative fair value (balance sheet value) | 31 Dec. 2024 Positive fair value (balance sheet value) | 31 Dec. 2024 Negative fair value (balance sheet value)
Currency derivatives | 0.5 | -0.2 | 1.6 | -0.4
Interest rate derivatives | 54.8 | -51.1 | 7.2 | -4.7

Notional amounts of derivative contracts, € million | 31 Dec. 2025 Notional amount | 31 Dec. 2024 Notional amount
Currency derivatives | 74.1 | 137.7
Interest rate derivatives | 1,102.0 | 430.0

All currency derivatives mature in 2026. Interest rate derivatives mature in 2026, 2027,
2028, 2030 and 2039.

€ million | 2025 | Fair value | 2024 | Fair value
Liabilities arising from derivative instruments |  |  |  |
Values of underlying instruments as at 31 Dec. |  |  |  |
Interest rate derivatives |  |  |  |
Interest rate swaps | 1,102 | 3.6 | 430 | 2.5
Foreign currency derivatives |  |  |  |
Forward and future contracts | 74 | 0.3 | 138 | 1.2
Outside the Group | 61 | 0.3 | 125 | 1.4
Inside the Group | 14 | 0.0 | 13 | -0.2
Commodity derivatives |  |  |  |
Electricity derivatives | 95 | - | 91 | -
Outside the Group | 48 | -2.0 | 45 | -3.2
Inside the Group | 48 | 2.0 | 45 | 3.2

|  | 192

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

€ million | 2025 | 2024
Financial assets at amortised cost (maturing in less than 3 months) | 0.0 | 185.2
Cash and cash equivalents | 156.1 | 272.8
Total | 156.1 | 458.0

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 2026

Esa Kiiskinen | Tiina Alahuhta-Kasko |
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 2026

Deloitte Oy
Audit Firm
Jukka Vattulainen
APA

|  | 194

AUDITOR'S REPORT

(Translation of the Finnish original)

To the Annual General Meeting of Kesko Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Kesko Oyj (business identity code 0109862-8)
for the year ended 31 December, 2025. The financial statements comprise the consolidated
balance sheet, income statement, statement of comprehensive income, 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 International Financial
Reporting Standards (IFRS) 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 the 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.

|  | 195

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 Group amounted to EUR 12,474.7 million (EUR 11,920.1 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 721.6 million (EUR 643.0 million). In addition, consolidated statement of financial position includes EUR 113.1 million (EUR 113.5 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 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. The key variables in impairment testing are the post-forecast period growth rate, the discount rate, and the EBITDA margin. 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 EU regulation No 537/241, point (c) of Article 10(2) relating to the consolidated financial statements or the parent company’s financial statements.

|  | 196

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
International Financial Reporting Standards (IFRS) 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 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 for the audit of Financial Statements
Our objectives are to obtain reasonable assurance on 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 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 scepticism 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.
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.

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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 Annual General Meeting on 28.4.2020, and our
appointment represents a total period of uninterrupted engagement of 6 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 and 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 report 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 report 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 based on the law
Our responsibility is to, based on our audit, express an opinion on the registration and
publication of the income tax report required in Chapter 7 b of the Accounting Act.
The Board of Directors and the Managing Director are responsible for the registration and
the publication of the income tax report.
In our opinion, the company has not been obliged to register and publish an income tax
report referred to in Chapter 7 b of the Accounting Act for the financial year immediately
preceding the financial year.
Other opinions
We support that the financial statements should be adopted. The proposal by the Board of
Directors regarding the treatment of distributable funds is in compliance with the Limited
Liability Companies Act. We support that the Board of Directors of the parent company and
the Chief Executive Officer should be discharged from liability for the financial period
audited by us.
Helsinki, 4 February 2026
Deloitte Oy
Audit firm
Jukka Vattulainen
Authorised Public Accountant (KHT)

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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 reporting
period 1.1.–31.12.2025.
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), and
• 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).
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 requirement in the absence of requirements for the tagging of sustainability
information in 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 Group 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.
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.
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.

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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,
• 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, and
• 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 Group Sustainability
Statement
In preparing the group 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 according to ESRS standards, management is
required to prepare the forward-looking information on the basis of disclosed assumptions
about events that may occur in the future, possible future actions by the company Group,
and prepare the forward-looking information based on these assumptions. The actual
outcome is likely to be different since anticipated events frequently do not occur as
expected.
The determination of greenhouse gas emissions involves inherent uncertainty due to
incomplete scientific knowledge used to define the numerical values for emission factors and
the combination of emissions from different gases.
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.
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.

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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 company’s internal guidelines and policies relevant to the information
presented in the group sustainability statement.
• Reviewed the supporting documentation and records prepared by the company, where
applicable, and assessed whether they support the information included in the group
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 group 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 2026
Deloitte Oy
Authorised Sustainability Audit Firm
Jukka Vattulainen
Authorised Sustainability Auditor

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INDEPENDENT AUDITOR’S REPORT ON THE ESEF
CONSOLIDATED FINANCIAL STATEMENTS OF KESKO OYJ

(Translation of the Finnish original)

To the Board of Directors of Kesko Oyj
We have performed a reasonable assurance engagement on the financial statement
(743700OX6HSVMCAHPB95-2025-12-31-0-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.–31.12.2025.
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 management
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

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iXBRL tags in accordance with the requirements of Article 4 of the Commission's
regulatory technical standard and
• 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
(743700OX6HSVMCAHPB95-2025-12-31-0-fi.zip) for the financial year ended 31.12.2025
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 31.12.2025 has been expressed in our auditor’s report dated 4.2.2026.
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 2026
Deloitte Oy
Audit Firm
Jukka Vattulainen
APA