Kesko's year 2007

Year 2007
Other operating
activities
Other business operations include
Konekesko, Intersport Finland, Indoor,
Musta Pörssi, Kenkäkesko, Tähti Optikko
and Kauko-Telko.
Divisions The Group Financial statements Further information 31
Konekesko
Konekesko is a service company specialising
in the import and sales of earthwork, environmental
machinery, trucks and buses, and recreational
machinery. Konekesko also sells forest
machinery in the Baltic countries.
Konekesko arranges the manufacture of and
sells Yamarin boats in Finland and exports
them to the Nordic and several other European
countries, including Russia.
Market
Konekesko’s sales of recreational machinery
are based on over 40 years of close cooperation
with Yamaha Motor Co. Quality-conscious
consumers are served by the nationwide
Yamaha dealer network. The Finnish
market for recreational machinery totals
about €0.4 billion.
Export sales of Konekesko’s own range of
Yamarin boats account for about 76% of total
sales. In Finland, Yamarin is the market
leader of glass-reinforced plastic boats.
Yamaha outboard motors have been market
leaders for as many as 30 years, and their
market share was 33.8% in 2007. Market
shares of Yamaha motorcycles, mopeds, ATVs
and snowmobiles vary between 6–20%
depending on the size category.
Earthwork and environmental machinery
and MAN trucks and buses are marketed
through Konekesko’s own sales organisation.
The Finnish market for earthwork and environmental
machinery totals approximately
€0.4 billion and for trucks (weight class of
over 6 tons) about €0.7 billion. The most
important customers in this market include
transportation and service sector companies,
towns and municipalities, and industrial and
service entrepreneurs.
Strengths
Konekesko offers its customers the leading
brands and is responsible for their marketing
and sales throughout the marketing area.
Konekesko also offers after-sales services to
its customers either through its own or a contract
service network.
Konekesko’s strengths include its comprehensive
products and services, skilled network,
efficient operating methods, and competent
and service-oriented staff. The goal is
to reach a sales growth exceeding that of the
market in selected business areas.
Year 2007
In 2007, Konekesko’s net sales increased by
14.3% to €229.3 million. Net sales from export
operations were €35.8 million and accounted
for 15.6% of the total net sales.
Investments in 2007 totalled €1.1 million,
most of them in boat moulds.
The dealer network for recreational
machinery was reorganised and strengthened.
The new Yamarin models for the 2007
boating season were well received by customers.
Exports of Yamarin boats increased particularly
in countries outside the Nordic area,
such as the UK, Russia and Italy.
The growth targets set for market shares
in the earthwork and environmental machinery,
as well as in the MAN business, were
achieved.
Outlook
In 2008, the market for product lines represented
by Konekesko in Finland is estimated
to remain at the level of the previous year.
With respect to the recreational machinery
sector, it is estimated that boat exports and
ATV sales will increase.
Sports trade
Intersport Finland
Intersport Finland’s retail store chains in Finland
are Intersport, Budget Sport and Kesport.
Intersport Finland is responsible for the
marketing, sourcing and logistics services,
store network and retailer resources of the
chains.
The Intersport chain is the market leader
in the Finnish sports retailing. Intersport’s
customers are quality-conscious consumers
who actively engage in sport and physical
exercise and who value good service. Intersport
stores are located in downtown areas
and shopping centres. Their strengths include
the chain’s high reliability and recognition
among customers, wide and diversified selections,
and its expert and service-minded staff,
whose sales and service competence is systematically
enhanced.
The Kesport stores are located in smaller
rural centres and are the leading sports stores
in their areas.
Budget Sport is a new sports store format
of Intersport International Corporation.
Based on cost-effective operations and low
prices, it offers the sector’s largest selections