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Year <strong>2007</strong><br />
Divisions The Group Financial statements Further information 43<br />
logistics, information systems and acquisition<br />
of store sites.<br />
Kesko participates in international purchasing<br />
cooperation in various product lines,<br />
which increases purchasing volumes and efficiency.<br />
The most important joint organisations<br />
in which Kesko participates include<br />
AMS Sourcing B.V. in the grocery trade, Euro-<br />
Mat in the building and home improvement<br />
trade, Intersport International Corporation in<br />
the sports trade and Electronic Partner International<br />
in the home technology trade.<br />
Data management in guiding business<br />
Efficient data management has a key position<br />
in creating customer-driven selections, guiding<br />
the flow of merchandise efficiently, in targeted<br />
customer marketing and in steering<br />
international business. Kesko’s information<br />
systems are developed for the particular<br />
needs of each division, while also leveraging<br />
the Group-wide synergy benefits achieved<br />
through centralisation. When e-commerce<br />
continues to spread, the importance of data<br />
Financial objectives<br />
management will be emphasised further.<br />
The planning systems Kesko has chosen are<br />
largely based on the SAP enterprise resource<br />
planning system.<br />
Best retailing competence<br />
Developing the competence of personnel is<br />
a key factor in the K-Group’s competitiveness.<br />
Emphasis areas in HR development include<br />
competence in retailing and international<br />
trading, customer and service competence<br />
and development of management skills.<br />
K-instituutti, the K-Group’s training centre,<br />
specialises in the training of retail store staff,<br />
managers and retailers. In <strong>2007</strong>, a total of<br />
about 22,100 persons participated in the<br />
K-instituutti training programmes.<br />
Objective Target level Realised <strong>2007</strong><br />
Growth in net sales In Finland growth<br />
exceeding that of market<br />
Increasing proportion of<br />
international operations<br />
Realised: Kesko Food,<br />
VV-Auto, Konekesko,<br />
Intersport Finland,<br />
Musta Pörssi<br />
Growth 2.2% points<br />
(continuing operations)<br />
Return on equity 14% 16%<br />
excl. non-recurring<br />
items 12.7%<br />
Return on invested capital 16% 17%<br />
excl. non-recurring<br />
items 14.5%<br />
Interest-bearing net debt/<br />
EBITDA < 3 0.6<br />
Equity ratio 40–45% 48%<br />
Economic value added Internal indicator growing<br />
positive EVA Realised