Future outlook 2010 Q2

Interim financial report 1-6/2010 (Published on 23 July 2010)

Estimates of the future outlook for the Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (7/2010-6/2011) in comparison with the 12-month period preceding the reporting period (7/2009-6/2010).

The outlook for trends in consumer demand has improved somewhat, especially as a result of higher consumer confidence and continuously low interest rate levels. Nevertheless, the trend in economic development continues to involve significant uncertainties relating to the evolution of total production, tightening taxation and ramifications of possible disturbances in the financial market.

Reduced grocery prices continue to dampen market growth in terms of euros, although otherwise the trend in the grocery trade is expected to continue steadily. In the home and speciality goods trade, the market recovery is expected to continue as a result of higher consumer confidence. As house building activity increases, the building and home improvement market is expected to continue strengthening in the Nordic countries and the decline is expected to ease in the other operating countries. In the car and machinery trade, new car sales are expected to increase, and the market situation in the machinery trade is expected to recover slowly.

The Kesko Group's net sales and operating profit excluding non-recurring items are expected to grow during the next twelve months.