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ECONOMIC REsPONsIBIlITy
RETURN ON CapITal EMplOyED
Target level Return on capital employed for 2011
2009
11.0
2010
16.0 13.2
14% %
RETURN ON EQUITy
Target level Return on equity for 2011
2009
6.6
2010
10.1 8.9
12% %
Management approach to economic responsibility, including operating
principles and monitoring and control systems, is described
on pages 54–57.
The financial result must be achieved in responsible ways supported
by good corporate governance, open communications and
effective stakeholder interaction, while taking environmental and
social responsibility into account.
Kesko's key strategic objective is healthy, profitable growth.
Growth is sought by actively developing store selections and services
to meet customer needs, by making capital expenditure in a
competitive store network and by developing online services and
e-commerce.
Kesko's financial indicators
2011 2010 2009
Return on capital employed (%) 13.2 16.0 11.0
Return on equity (%) 8.9 10.1 6.6
Equity ratio (%) 53.9 53.5 54.2
Gearing (%) 1.5 -16.8 -12.5
Capital expenditure (€ million)
Capital expenditure as percentage of
425 325 198
net sales (%) 4.5 3.7 2.3
In Finland, growth is sought by increasing market shares and by
providing more customer-driven services than those of competitors.
In addition, growth is sought in the Russian market, in particular,
which is growing faster than the Nordic or Baltic markets.
EQUITy RaTIO
Target level Equity ratio for 2011
40–50%
2009 2010
54.2 53.5 53.9
CapITal EXpENDITURE, € MIllION
2009 2010
198 325
Capital expenditure in 2011
425
%
The objective is to make capital expenditures of over €600 million
in the operations of the food trade, the building and home improvement
trade and Intersport in Russia, mainly in the Moscow and St.
Petersburg regions, by 2015. In the food trade, the objective is to
open a cluster of 10 stores in both St. Petersburg and Moscow. In the
building and home improvement trade, the objective is to open 11
new K-rauta stores by 2015. At the end of 2011, there were 14 K-rauta
stores in Russia. Intersport had 36 stores and the aim is to double
the network by 2015. Read more on pages 4–5 of this report and on
page 9 in Kesko's 2011 Annual Report.
Most of the economic responsibility indicators in this report are
presented in relation to stakeholder group and derived from the
consolidated financial statements (www.kesko.fi/investors), whose
preparation and presentation are governed by IFRSs (International
Financial Reporting Standards). Kesko's reporting on economic
responsibility is in compliance with the GRI Guidelines. The report
also presents results material for the line of business, such as the
development of the store site network, geographical scope of operations
and breakdown of purchases.
ECONOMIC vALUE GENERATED AND
DISTRIBUTED, EC1
Kesko analyses the economic benefits of its operations with regard
to different stakeholder groups and market areas. Stakeholder welfare
in its market areas is important for Kesko and its international
Kesko Corporate Responsibility Report 2011 65