Kesko to seek more competitive multi-channel home

KESKO CORPORATION STOCK EXCHANGE RELEASE 24.09.2014 AT 09.00 1(1) Kesko to seek more competitive multi-channel home and speciality goods trade In the home and speciality goods trade and the building and home improvement trade, the importance of e-commerce and online services has greatly increased and the improvement of competitiveness necessitates major renewal. In response to these requirements, Kesko is seeking synergies especially in the production of online services and the development of concepts. At the same time, the planned changes will form a basis to improve profitability and the organisational structure will be evaluated. Also the combination of the building and home improvement trade with the home and speciality goods trade, as well as the integration of the non-food part of the K-citymarket chain, currently part of the home and speciality goods division, into Kesko Food operations, are planned. The objective is to offer customers multi-channel building, interior decoration and home and speciality goods stores and services. The aim of the planned integration of resources is to achieve better customer satisfaction as well as improved competitiveness and profitability. In Kesko's food trade, the annual sales are around €4.4 billion, in the building and home improvement trade around €2.7 billion and in the home and speciality goods trade around €1.4 billion. As at 30 June 2014, the food trade employed 4,035 people, the building and home improvement trade 10,520 people and the home and speciality goods trade 8,111 people. The changes will be planned in more detail and the required cooperation negotiations will be conducted during the rest of 2014. The aim in Kesko Group's reporting is that starting from 1 January 2015, the reportable segments would be the grocery trade, the home improvement and speciality goods trade, and the car and machinery trade. Kesko will publish comparatives according to the new reporting structure in the first quarter of 2015. President Terho Kalliokoski is responsible for the planning concerning the home improvement and speciality goods trade and President Jorma Rauhala is responsible for the planning concerning the grocery trade. Further information: President and CEO Matti Halmesmäki, Kesko Corporation, tel. +358 105 322 202 President Terho Kalliokoski, Rautakesko Ltd, tel. +358 105 320 200 Kesko Corporation Merja Haverinen Vice President, Group Communications DISTRIBUTION NASDAQ OMX Helsinki Main news media www.kesko.fi [HUG#1857894]