- Interim Report 2/99

Kesko Group's net sales for the period from 1 January to 31 August 1999 totalled EUR 4,011 million, which was 1.7% more than during the corresponding period in 1998 (EUR 3,945 million). The Group's profit before extraordinary items for the period was EUR 83.0 million (EUR 72.9 million), which is 2.1% of net sales (1.8%). Earnings per share were EUR 0.66 (EUR 0.59). Equity per share was EUR 15.59 (EUR 14.92). The figures are unaudited.

Market review The trading sector developed less favourably than expected during the first eight months of the year. According to Statistics , the volume of wholesale sales, adjusted for the annual number of trading days, increased by 4.0% from January to July, and the volume of retail sales by 4.2%. The wholesale sales of consumer goods in particular developed poorly in several product groups. Car sales, however, have continued to grow throughout the year. Although 1999 as a whole is expected to be the sixth successive year of growth for the trading sector, but the growth will be smaller than projected. There is no single reason for this, but one factor is that consumers' money is increasingly spent on various services rather than goods. Trading was characterised by great seasonal fluctuations in the early part of the year. According to the Research Institute of the Finnish Economy, private consumption will grow this year by 3.5%, compared with the estimate of a 5% growth made at the beginning of this year. Private investment is expected to increase by 9.5%. According to Statistics Finland, consumer prices increased by 1.0% from January to September 1999 compared with the same period in 1998. Statistics Finland's consumer survey of September 1999 shows that the confidence of Finnish consumers in favourable economic growth is still strong, but has slightly weakened since June. The expectations of households for an improvement in their economic situation continued to be optimistic. Their willingness to borrow is still strong.

Net sales Kesko Group's net sales for the period from 1 January to 31 August 1999 totalled EUR 4,011 million, which was 1.7% more than during the corresponding period in 1998 (EUR 3,945 million). In the foodstuffs sector, sales to large-scale customers and big grocery stores increased the most. The increased share of sales by department stores in the Group figures contributes to the accumulation of net sales and performance towards the end of the year. Car sales developed favourably, whereas the sales of home technology and agricultural products decreased. At the end of the period, there were nearly 1.2 million households included in the Plussa customer loyalty programme and about 2.1 million Plussa cardholders.

Net sales by profit division 1-8/1999 1-8/1998 Change EUR million EUR million % Foodstuffs Division 2,123 2,050 3.6 Home and Speciality Goods Division 525 552 -4.9 Builders' and Agricultural Supplies Division 863 877 -1.6 Kaukomarkkinat 173 183 -5.8 VV-Auto 320 277 15.5 Others 7 6 51.0 Group total 4,011 3,945 1.7 Performance The Group's profit before extraordinary items amounted to EUR 83.0 million (EUR 72.9 million), which is 2.1% of net sales (1.8%). The operating profit includes a total of EUR 22.7 million from gains on the sale of shares and real estate, from the amortisation of the goodwill on consolidation returned and from the reduction in the value of shares. During the same period in 1998, they totalled EUR 26.1 million. Pension costs decreased by EUR 7.9 million. As a result of the small growth in net sales, the operating profits of the Group's commercial divisions did not develop as expected. The Group has made a provision of EUR 13.5 million for the structural change in the Home and Speciality Goods Division. It has not been allocated to the profit division's figures. Anttila Group's operating profit increased by EUR 3.1 million, but still showed a loss of EUR 9.7 million. VV-Auto Group's operating profit grew by EUR 3.9 million to EUR 17.6 million. The operating profit of Citymarket Oy, engaged in the non-food trade of the Citymarket hypermarkets, was EUR 1.3 million, representing a decrease of EUR 5.5 million. The change resulted mainly from the opening costs of two new Citymarket hypermarkets in the spring of 1999. After the period under review, a Citymarket hypermarket, an Anttila department store and several speciality stores were opened in the Jumbo shopping centre in . Their establishment expenses affected the Group's profit during the period. Kesko Svenska AB again showed an operating loss, resulting from an investment to extend the K-rauta chain. Two new K-rauta hardware department stores were opened in Sweden. Business operations of Aleksi 13 were unprofitable, and a decision has been made to relinquish them. The Group's net financial income was EUR 7.5 million (EUR 0.5 million). The change was due to a decrease in financing costs. The return on investment was 7.7% (7.6%) and the return on equity was 6.3% (5.7%). Earnings per share were EUR 0.66 (EUR 0.59). Equity per share was EUR 15.59 (EUR 14.92).

Operating profit by profit division 1-8/1999 1-8/1998 EUR million EUR million *) Foodstuffs Division 39.4 46.8 Home and Speciality Goods Division -12.7 -9.6 Builders' and Agricultural Supplies Division 15.5 11.6 Kaukomarkkinat 4.9 7.6 VV-Auto 17.5 12.8 Total 64.6 69.2 Common divisions 10.9 3.2 Group’s operating profit 75.5 72.4 Net financial income 7.5 0.5 Associated companies 0 0 Profit before extraordinary items 83.0 72.9

The common divisions include the Resource Division and the Finance and Administration Division. Their results, including the profits and losses on the sale of shares and real estate have not been allocated to the profit divisions engaged in business operations. Other expenses resulting from corporate administration have been allocated to the profit divisions in the table. *)Figures for 1998 have been converted to comparable ones.

Investments The Group's total investments amounted to EUR 128.2 million (EUR 128.8 million), which is 3.1% (3.2%) of net sales. The investments in Kesko's wholesale operations and subsidiaries' real estate, information technology and fixtures totalled EUR 38.6 million, while investments in the buildings, fixtures and information technology of retail stores amounted to EUR 89.6 million.

Finance The Group's financial position remained good. Investments were financed by funds generated from operations, with the cash flow before financing amounting to EUR 133.1 million. The equity ratio was 56.6% (54.3%). At the end of the period, the interest-bearing net debt totalled EUR 42.7 million (EUR 241.3 million).

Personnel The average number of personnel in the Group was 11,042 (11,208), divided by profit division as follows: 1-8/1999 1-8/1998 Foodstuffs Division 4,872 4,815 Home and Speciality Goods Division 3,039 3,278 Builders' and Agricultural Supplies Division 1,355 1,389 Kaukomarkkinat 789 741 VV-Auto 102 97 Others 885 888 Total 11,042 11,208

The number of Kesko Group personnel has decreased by 166 persons. The numbers of personnel grew both in Citymarket Oy and Anttila Oy as they opened new stores and in Kaukomarkkinat Oy due to the expansion of the Tähti Optikko chain. Respectively, the number of personnel was reduced by the sale of Rautia stores and the foodstuffs departments in the Anttila department stores to independent retailers and by turning some of Oy's fast food outlets into franchisee-run businesses. The Group employed 454 persons abroad. The personnel strategy has been drawn up for the Kesko Group. Its main emphasis is on the management of expertise, the well-being of personnel, and flexible and fast decision-making near employees. The measures for implementing the strategy are under way. The job satisfaction survey is being arranged for the fifth time.

Development by profit division Foodstuffs Division The Division's net sales totalled EUR 2,123 million, a growth of 3.6%. The operating profit totalled EUR 39.4 million (EUR 46.8 million). The Division's operating profit decreased owing to a lower-than-expected increase in net sales and large investments in the store network. The Division's return on capital employed was 11% (11%), and investments amounted to EUR 58.8 million. Among the Division's chain units, the sales by the Citymarket Chain Unit and the Superstore Chain Unit developed favourably. The sales by the Neighbourhood Chain Unit remained at the level of the previous year. The attraction of large retail outlets has continued to grow. In January-August, 22 new K-grocery stores were opened, including Citymarket hypermarkets in Joensuu and Riihimäki and K-superstores in Pieksämäki and Espoo. After the end of the interim period in October, a Citymarket hypermarket was opened in the Jumbo shopping centre in Vantaa. The expansion of the Carrols restaurant chain has continued rapidly, with ten new Carrols restaurants being opened in Finland during the period. The total annual sales of the Foodstuffs Division will fall short of the growth target, and the Division's operating profit is expected to remain at the level of the previous year. Home and Speciality Goods Division The net sales of the Division totalled EUR 525 million, a decrease of 4.9%. Its operating loss was EUR 12.7 million (EUR -9.6 million). The return on capital employed was -5% (-4%). Investments amounted to EUR 5.0 million. The net sales of the Anttila Group totalled EUR 257 million, which was a drop of 20.2%. The home and speciality goods sales of Anttila dropped by -2.0%. This is still partly attributable to the foodstuffs departments of the Anttila department stores being sold to retailers. By the end of August, 20 of the 25 foodstuffs departments were being operated by independent retailers. In August 1998, the corresponding figure was 12. The operating loss of the Anttila Group decreased by EUR 3.1 million, but was still EUR 9.7 million (EUR -12.8 million). Due to the nature of the department store trade, the performance will improve towards the end of the year. Decisions have been made to discontinue the operations of the Anttila department stores of Iisalmi and Rauma, and the foodstuffs department of the Vaasa department store was closed down at the end of September. The sales of the Kesko Clothing & Shoes profit unit increased by 6.5%, but the performance was weaker than in the previous year. The result of business operations of Aleksi 13 in both Finland and Sweden did not meet expectations. The sales growth of Kesko Leisure Goods, the profit unit for the leisure goods and home technology trade, was smaller than expected and the sales remained at the level of last year. The sales of home technology in particular were smaller than expected, which was in line with the general tendency in this sector. The performance of the unit remained at the level of the previous year. The first Intersport Megastore in Finland was opened in April at Itäkeskus in , and the first Musta Pörssi Maailma in August at Suomenoja in Espoo. After the interim period in October, an Anttila department store, an Intersport Megastore, a Musta Pörssi store, an Aleksi 13 department store and a K-kenkä and an Andiamo shoes store were opened in the Jumbo shopping centre in Vantaa. The fifth Anttila Kodin Ykkönen department store was opened in October at Kaisaniemenkatu in Helsinki, and an Anttila department store will be opened in Kotka towards the end of the year. Owing to structural changes to be made in the business operations of the Home and Speciality Goods Division, its operating profit is expected to remain considerably smaller than in the previous year.

Builders' and Agricultural Supplies Division The net sales of the Division totalled EUR 863 million, a decrease of 1.6%, which is partly attributable to the effects of last year's poor grain harvest on grain and other agricultural supplies trade and the sale of the Rautia retail operations to independent retailers. The operating profit amounted to EUR 15.5 million, an increase of EUR 3.9 million over the corresponding period last year. The Division's return on capital employed was 10% (8%), and investments amounted to EUR 6.8 million. The net sales of Kesko Hardware and Builders' Supplies amounted to EUR 348 million, an increase of 3.2%. Sales to the K-rauta and Rautia chains grew more quickly than the market average. The net sales of the Industrial and Constructor Sales profit unit, which was separated from Kesko Hardware and Builders' Supplies in July 1998, amounted to EUR 116 million. Sales to construction companies increased, whereas sales to other customers have remained clearly smaller than in the previous year. The number of new constructions started was 3% smaller than in the previous year despite an increase in housing construction during the second quarter of the year in particular. At the beginning of the year, the prices of building materials remained at the level of the previous year. The net sales of Kesko Agriculture and Machinery amounted to EUR 369 million (EUR 387 million), a decrease of 4.4%. In addition to a decrease in the grain trade, this is mainly attributable to a decrease in the tractor and combine harvester market. The sales of the five K-rauta stores in Sweden totalled EUR 14 million, a growth of 88.5%, partly attributable to the opening of a new outlet in Norrköping and Västerås. After the interim period in September, the sixth K-rauta store was opened in Linköping. The target is to build a chain of K-rauta stores in Sweden that will eventually include around 25 outlets. The sales of the hardware wholesale outlet, ZAO Kestroy, have dropped due to poor economic development in Russia. The agricultural supplies trade started in Estonia last year has got under way as planned. New stores in line with the K-rauta 2000 concept were opened in and Kotka. The K-rauta stores in Kuopio and Imatra, the Rautia store in Tampere and the K-rauta and K-maatalous store for agricultural products in Forssa were expanded at the beginning of the year. In hardware and builders' supplies, demand is expected to remain at the present level during the rest of the year. Demand prospects are uncertain in the agricultural supplies trade, mainly due to a poor grain harvest. The Division's operating profit for this year is expected to improve over the previous year.

Kaukomarkkinat The net sales of the Kaukomarkkinat Group amounted to EUR 173 million, which was 5.8% below the figure for the corresponding period in the previous year. Domestic lines of business accounted for 78.2% and international trade for 21.8% of net sales. The Group's operating profit was EUR 7.4 million (EUR 10.4 million). In most domestic lines of business, sales declined because of a drop in overall demand. There were positive exceptions in the sales of adidas sports goods, which grew by 13%, and the business operations of the Leipurien Tukku Division, which recorded an increase of 5%. In the optical field, the Tähti Optikko retail chain strengthened its market position with sales growth of 19%. At the end of August the chain consisted of 110 stores. The net sales recorded in the Kaukomarkkinat Group's international trade decreased by 15% to EUR 37.7 million. This was due to the effect of several large, one-off transactions implemented in the Russian and Chinese trade during the second four-month period of 1998. The total growth in international trade was 18%, which is attributable to commission-based agency operations, the value of which rose by 50%. No big changes in demand are expected in the business areas of the Kaukomarkkinat Group, which is why the performance of the Group is likely to remain smaller than in the previous year, but to reach a satisfactory level.

VV-Auto The net sales of the VV-Auto Group totalled EUR 320 million, a rise of 15.5%, and operating profit was EUR 17.6 million (EUR 13.7 million). The car trade continued to grow. The overall market for cars increased by 12.7% and the market for commercial vehicles by 9.6%. The market share of cars imported by the VV-Auto Group amounted to 14.3%, a growth of 0.6 percentage points. The sales of Volkswagen cars developed favourably at the beginning of the year in particular. The strong growth of Seat sales continued, and a market share of 2.3% was achieved. Audi's market share dropped to 1.1%. The increased repair shop capacity and the growing number of relatively new cars helped spare parts sales to grow by 18%. The operating profit is expected to continue developing favourably for the rest of the year.

Research and development Research and development activities are connected with the Group's ordinary business operations. Their costs have been included in expenses for the period under review.

Shares and equity markets Kesko's Annual General Meeting held on 12 April 1999 and an Extraordinary General Meeting held on 11 May 1999 approved the amendment of Kesko's Articles of Association in their entirety. Accordingly, Kesko's exclusive shares were converted into A shares and ordinary shares into B shares. The A shares were also listed for trading on the Helsinki Exchanges. The exclusive shares, which represent roughly one third of Kesko's share capital, had not been available for public trading earlier. Listing started on 1 June 1999. Kesko Corporation's share capital was EUR 180,426,800 on 31 August 1999, with 35.2% being represented by A shares and 64.8% by B shares. Kesko's share price (the current B share) was EUR 12.78 at the end of 1998, and EUR 11.62 at the end of the period under review, a drop of 9.1%. The A share, which was initially priced at EUR 12.50 on 1 June 1999, had risen to EUR 14.80 by the end of August. 0.3 million A shares, with a total value of EUR 4.7 million, were traded on the Helsinki Stock Exchange between 1 June and 31 August. Between 1 January and 31 August, 10.1 million B shares, with a total value of EUR 132.1 million, were traded. During the period under review, the HEX index rose by 33.8%, while the trading sector index dropped by 11.5%.

Kesko and the euro When the decisions on Kesko's euro schedule were made, they were based largely on the premise that the majority of Kesko's customers operate in Finland. Kesko will prepare its financial statements for 1999 in markkas and they will then be converted into euros. The financial statements will be prepared in markkas for the last time for the year 2001. The majority of Kesko's purchases and sales will be made in markkas during the transition period. The prices of Kesko's stock items will remain in markkas until 31 December 2001. However, Kesko has also been prepared to deal in euros since 1 January 1999. The transfer to the use of euros has progressed in Kesko according to plan.

Kesko and the year 2000 Kesko's business operations are largely dependent on information technology. Operational information services are mainly offered by Kesko's subsidiary, Tietokesko Oy. Long-term preparations have been made at Tietokesko for the turn of the millennium. A more detailed description can be found in Kesko's 1998 Report by the Board of Directors. Whereas Kesko's year 2000 testing of information systems has progressed according to plan, the readiness of all EDI partners has not yet reached the expected level. Kesko has complete testing readiness, based on proven practices and separate testing equipment. Testing is planned to be completed by the end of October. No problems related to the year 2000 that might endanger Kesko's operations have come up. Kesko Corporation's subsidiary K-linkki Oy has ascertained that the cash register systems delivered by it will continue to operate in the new millennium. At the end of August 1999, 1,230 K-stores were using a cash register system delivered by K-linkki Oy. A special project has been started with the aim of identifying and controlling any Y2K risks related to the goods sold by Kesko. Inquiries have been sent to suppliers to establish the Year 2000 compliance of their merchandise and manufacturing processes. No significant problems have been encountered so far. The contingency plan for exceptional conditions in information management and logistics is being updated in order to prepare for any problems. As for real estate, preparations are being made for the manual control of building technical services. A survey of real estate systems has been carried out in 408 of the key properties. Repair operations and further examinations are needed on 83 premises. Repair orders have been placed and the work will be completed before the end of the year. It has been possible to avoid high alteration expenses by making preparations for the year 2000 in good time. The estimated additional costs for the years 1997-1999 are about EUR 1.7 million.

Main events during the period under review On 1 March 1999, a new business operations unit called Kespro was established in the Foodstuffs Division. It is responsible for HoReCa wholesale and cash & carry operations, and for the foreign trade companies operating in the neighbouring areas. At the same time, K-Cash & Carry Ltd was renamed as Kespro Ltd. The regional operations of Kesko were strengthened. On 1 March, the district centre of Southwestern Finland was established in Turku. The others are the district centres of Southern Finland (in Vantaa), Western Finland (in Tampere), Eastern Finland (in Kuopio) and Northern Finland (in Oulu). On 12 April 1999, the Annual General Meeting of Kesko Corporation adopted the financial statements for 1998, discharged those accountable from their responsibilities and decided to pay a dividend of FIM 4.00 (EUR 0.67) per share. The total amount of dividends paid was FIM 361 million (EUR 60.7 million). The dividend record date was 15 April 1999 and the dividends were payable from 22 April 1999. On 11 May 1999, in accordance with the new Articles of Association, an Extraordinary General Meeting elected nine members to the Supervisory Board for a term starting on 1 June 1999 at which date the new Articles entered into force. The members are Mr. Matti Kallio, retailer; Dr. Eero Kasanen, (Econ.); Mr. Hannu Loukko, retailer; Ms. Hannele Näppi, retailer; Mr. Paavo Pitkänen, M.A.; Mr. Kalevi Sivonen, retailer; Mr. Keijo Suila, B.Sc. (Econ.); Mr. Heikki Takamäki, retailer; and Mr. Jukka Toivakka, retailer. Kesko's Supervisory Board elected Matti Kallio as its Chairman and Heikki Takamäki as its Vice Chairman at the Board meeting on 10 June 1999. In addition to them, Keijo Suila was elected to the Supervisory Board's Working Committee. On 28 May 1999, Kesko Corporation and its subsidiaries Hämeenkylän Kauppa Oy and Kespro Ltd, Kesko's associated company Center-yhtiöt Oy and the Kesko Pension Fund signed a contract with Castrum Oyj on the sale of some warehousing and logistical premises to Castrum Oyj for EUR 42 million. As part of the sales price, Kesko subscribed for Castrum's shares to the value of EUR 21 million, and at the subscription price of EUR 1.51 per share. These shares represent 17.94% of the total share capital of Castrum Oyj. The major properties sold were the district centre premises of Kuopio, Tampere and Turku. Kesko is renting back the premises in its use under long-term agreements. On 9 May 1999, the www.k-netti.com portal service was opened. This offers easy access to the Internet services of the units of the K-Alliance and Kesko. On 11 June 1999, Kesko Corporation, its subsidiary Hämeenkylän Kauppa Oy and the Kesko Pension Fund decided to sell with Merita Real Estate Ltd, Sampo Insurance Company plc, Sampo Enterprise Insurance Company Limited, Pohjola Life Insurance Company Ltd and Pohjola Non-Life Insurance Company Limited shopping centre premises owned by them to Kiinteistösijoitus Oyj Citycon, a property investment company. The total sales price was approximately EUR 315 million, of which the Kesko Group and the Kesko Pension Fund received about EUR 94 million. The arrangement was based on a letter of intent signed by the selling parties on 17 December 1998. Kesko's second environmental report was published on 21 June 1999. On 22 August 1999, Citymarket Oy started co-operation with Fujitsu/Siemens by launching Fujitsu home computers in all its Citymarket hypermarkets. On 30 August 1999, Kesko Corporation decided to build a logistical centre near Tallinn to serve its present and future customers in the entire area of Estonia. At the same time, the expansion of Kesko's network of cash-and-carry outlets was started with the construction of a unit in West Tallinn. These two investments are together valued at about EUR 8,5 million and are scheduled for completion during the year 2000. Kesko intends to build a network of cash-and-carry outlets throughout Estonia to serve local retail stores and catering customers. On 14 September 1999, after the period under review, Kesko Corporation redefined its strategy for the clothing business and decided to dispose of its speciality clothing store chains. Accordingly, Kesko Corporation will withdraw from the Vaatehuone retailer chain operations during 2000 and will sell the Aleksi 13 operations. The Vaatehuone chain includes 57 stores, and the chain's retail sales amounted to EUR 62 million in 1998. The Aleksi 13 business operations in Finland comprise eight department stores for clothing and shoes and three stores for shoes and bags. In 1998, the company's net sales amounted to EUR 36 million. On 21 September 1999, after the period under review, Kesko and the OKOBANK Group signed a letter of intent to develop customer loyalty services. As the first stage of this co-operation, all Plussa cardholders will be given the opportunity to link an interest-bearing advance payment account with the Plussa card. In the future, in addition to paying for their shopping, customers will be able to withdraw cash at the Plussa stores operating within the K-Alliance. According to a decision made after the review period, on 4 October 1999, Anttila will concentrate on the speciality goods trade. At the same time, the K-superstore and K-supermarket chains will be strengthened by adding Anttila's food departments mainly to these chains. The changes in the store formats are planned for implementation during the first part of 2000.

Prospects for the remainder of 1999 Due to the favourable development of the Finnish economy and the optimism of consumers, the outlook for the trading sector in Finland is rather good, in spite of the weaker-than-expected development of sales during the eight first months of the year. If the domestic demand for investment and consumer goods develops as forecast in the remainder of the year, it is estimated that the Group's net sales will exceed EUR 6.2 billion. The operating profit of the commercial divisions will probably be below the level of the previous year due to the allocation of the expenses arising from the restructuring of business operations to the financial year and a heavy investment programme. The Group's profit before extraordinary items is expected to be on the 1998 level. Helsinki, 13 October 1999 Kesko Board of Directors For additional information, please contact Executive Vice President, CFO Juhani Järvi, tel. +358 1053 22209, or Vice President Riitta Laitasalo, tel. +358 1053 22060. KESKO CORPORATION Corporate Communications Erkki Heikkinen Director

TABLES: Consolidated statement of income (EUR million) 1-8/1999 1-8/1998 Change, % 1-12/1998 Net sales 4,011 3,945 1.7 5,992 Other operating income 202 183 10.5 290 Materials and services -3,527 -3,486 1.2 -5,270 Personnel expenses -210 -217 -3.2 -321 Depreciation and reduction in value -72 -67 8.1 -101 Other operating expenses -328 -286 14.9 -460 Operating profit 76 72 4.4 130 Financial income and expenses 7 1 - 3 Profit before extraordinary items 83 73 13.9 133 Extraordinary income 0 0 - 23 Extraordinary expenses 0 0 - 0 Profit before taxes 83 73 13.9 156 Income taxes -23 -20 13.9 -42 Minority interest 0 0 -81.8 0 Profit 60 53 13.2 114 Consolidated balance sheet (EUR million) 8/1999 8/1998 Change, % 12/1998 Assets Non-current assets Intangible assets 134 147 -8.4 143 Tangible assets 860 946 -9.1 886 Investments 104 107 -2.6 82 Current assets Stocks 470 448 4.8 495 Receivables Long-term 25 25 -0.1 10 Short-term 668 731 -8.6 682 Securities 238 112 113.5 208 Cash on hand and at bank 19 20 -7.9 38 Total 2,518 2,536 -0.7 2,544

Liabilities Shareholders’ equity Share capital 180 152 18.9 152 Other shareholders’ equity 1,226 1,194 2.7 1,255 Minority interest 16 29 -45 27 Provisions 28 18 55.4 19 Liabilities Deferred tax liability 64 93 -31.3 72 Non-current liabilities 89 53 66.9 115 Current liabilities 915 997 -8.2 904 Total 2,518 2,536 -0.7 2,544 Group’s key figures 8/1999 8/1999 Change, % 12/1998 Earnings per share, EUR 0.66 0.59 11.9 1.01 Equity per share, EUR 15.59 14.92 4.5 15.59 Return on investment, % 7.7 7.6 8.9 Return on equity, % 6.3 5.7 6.5 Equity ratio, % 56.6 54.3 56.7 Investments, EUR million 128 129 -0.8 132 Personnel, average 11,042 11,208 -1.5 11,172

Kesko Group’s contingent liabilities (EUR million) 8/1999 8/1998 Change, % 12/1998 For own debt 118 178 -33.6 196 On behalf of shareholders 1 1 - 1 On behalf of others 3 4 -20.1 4 Leasing liabilities 10 1 866.7 1 Liabilities arising from derivative instruments

Values of underlying instruments 31.8. Market value 8/1999 8/1998 31.8.1999 12/1998 Interest rate derivatives Forward rate agreements 2 22 0.3 - Option agreements Bought - - - Written - - - Interest rate swaps - 8 - Currency derivatives Forward exchange contracts 36 52 -1.2 61 Option agreements Bought - 11 - 3 Written - 3 - 2 Currency swaps - - - - Equities derivatives Forward agreements - 1 - - Option agreements Bought 1 1 -0.1 1 Written 0 1 0 1

The figures are unaudited. The figures for 1998 have been converted to comparable ones. The figures in this report are based on accounting in markkas, converted into euros by using the multiplier 5.94573. The Finnish-language interim report, denominated in markkas, is available at the Kesko Corporate Communications.