Kesko to change its divisional structure and seek more competitive multi-channel home and speciality goods trade

KESKO CORPORATION STOCK EXCHANGE RELEASE 27.11.2014 AT 09.00 1(2)

Kesko to change its divisional structure and seek more competitive multi-channel home and speciality goods trade

Kesko will revise the Group's divisional structure by integrating K-citymarket Oy, the non-food part of the K-citymarket chain currently part of the home and speciality goods division, into Kesko Food Ltd. Kesko's food trade division will be changed to the grocery trade division. The currently separate divisions of the building and home improvement trade and the home and speciality goods trade will be combined into the home improvement and speciality goods trade division. Starting from 1 January 2015, Kesko Group's reportable segments will be the grocery trade, the home improvement and speciality goods trade, and the car and machinery trade.

The change in the divisional structure is aimed to provide a uniform customer experience and improve customer satisfaction in all of the divisions' chain stores. The objective is to enable customers to have an easier multi-channel shopping experience at physical and online stores, as well as to increase competitiveness and improve profitability.

Kesko Food Ltd's President Jorma Rauhala, 49, M.Sc. (Econ.), has been appointed Senior Vice President for the grocery trade division and Rautakesko Ltd's President Terho Kalliokoski, 52, M.Sc. (Econ.), has been appointed Senior Vice President for the home improvement and speciality goods trade division. The appointments will take effect from 1 January 2015.

Cooperation negotiations about changes planned in Kesko's divisional structure

Cooperation negotiations about changes planned in Kesko's home and speciality goods trade, building and home improvement trade and food trade were started on 7 October 2014 in Kesko's home and speciality goods trade companies and building and home improvement trade companies in Finland and in Kesko Food Ltd, Kesko Corporation and K-Plus Oy. The negotiations were completed on 24 November 2014. A total of approximately 2,800 people were included in the negotiations and the combined reduction need in the companies was estimated at a maximum of 230 full-time equivalents. As a result of the negotiations, the total need for reductions in personnel was confirmed at 193 full-time equivalents. The reductions also include possible pension plans and terminations of fixed-term employments.

Kesko will today publish separate press releases about the operational objectives and a more detailed organisation of the grocery trade and the home improvement and speciality goods trade.

Kesko has announced the matter previously in a stock exchange release on 24 September 2014 and 7 October 2014.

The cooperation negotiations started in VV-Auto Group Oy and VV-Autotalot Oy on 23 September 2014 were completed on 12 November 2014. A total of approximately 700 people were included in the negotiations and initially, the reduction need was estimated at a maximum of 49 full-time equivalents. As a result of the negotiations, the need for reductions in personnel was confirmed at 34 full-time equivalents.

The presentations of Kesko's present divisions are available at http://www.kesko.fi/fi/Kesko-yrityksena/Toimialat/ and the presentations of Jorma Rauhala and Terho Kalliokoski are available at http://www.kesko.fi/fi/Kesko-yrityksena/Hallinto-ja-johto/Konsernijohtoryhma/

Further information:
President and CEO Matti Halmesmäki, Kesko Corporation, tel. +358 105 322 201
Executive Vice President Mikko Helander, Kesko Corporation, tel. +358 105 322 301

Kesko Corporation

Merja Haverinen
Vice President, Group Communications

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NASDAQ OMX Helsinki Ltd
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www.kesko.fi