Future outlook 2011 Q3

Interim report 1-9/2011 (Published on 26 October 2011)

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 (10/2011-9/2012) in comparison with the 12 months preceding the reporting period (10/2010-9/2011).

The outlook for trends in consumer demand has weakened as a result of lowered consumer confidence regardless of continuously low interest rate levels. Significant uncertainties are associated with economic development, especially with respect to the evolution of total production and the ramifications of disturbances in the financial market. In addition, cuts in public finances and tightening taxation may have a negative impact on the trend in consumer demand.

The steady development in the grocery trade is expected to continue. The home and speciality goods trade is expected to develop in line with the trend in private consumption. The growth of the building and home improvement market is expected to even out. In the car and machinery trade, the market is expected to turn down slightly.

The Kesko Group's net sales are expected to grow during the next twelve months. During the next twelve months, the operating profit excluding non-recurring items is expected to remain at the achieved good level despite significant costs involved in the expansion of the store site network and business operations in Russia.