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5.1 Group composition
Group composition
Kesko Group has 97 (102) subsidiaries. The Group has the majority of voting rights in all companies. Kesko Group's subgroup, Kesko Senukai, has a material non-controlling interest (see section Material non-controlling interest).
Information about the Group composition as at the balance sheet date:
Division Country of
incorporation
Most significant subsidiaries Number of wholly-owned subsidiaries 2017 Number of wholly-owned subsidiaries 2016 Number of partly-owned subsidiaries 2017 Number of partly-owned subsidiaries 2016
Grocery trade Finland K-Market Oy 26 23 5 4
Building and technical trade Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Russia, Belarus Onninen Group, Kesko Senukai Group 39 52 19 12
Car trade Finland VV-Auto Group Oy 6 6 - -
Others Finland, Estonia 2 5 - -
Kesko has simplified its group structure in 2016-2017. In the financial year 2017, Kesko Food Ltd, K-citymarket Oy and Kespro Ltd merged into the Kesko Group parent company Kesko Corporation. In the financial year 2016, K-talouspalvelukeskus Oy, K-Plus Oy, K-instituutti Oy, Rautakesko Ltd, Musta Pörssi Ltd and Keslog Ltd merged into Kesko Corporation.
In addition, the Group has partly owned mutual real estate companies. The Group's subsidiaries, equity-accounted investments and mutual real estate companies consolidated using the proportionate method are listed in note 5.2.
Material non-controlling interest
Kesko Senukai Group, which is part of Kesko Group, has a material non-controlling interest. The subgroup's parent, UAB Kesko Senukai Lithuania, is a subsidiary of Kesko Corporation and it is domiciled in Vilnius, Lithuania. Kesko Group's ownership interest in Kesko Senukai Group is 50.0% increased by one share (50.0 % increased by one share). Kesko Group has the right to nominate the majority of Board members and the Board Chairman. The Board controls the company's operational activities and makes decisions on the use of resources. The share of non-controlling interests of the net profit of Kesko Senukai Group was €8.6 million (€15.3 million) and in equity, the share was €96.7 million (€97.3 million).
The arrangement agreed by Kesko in the autumn of 2015 to centralise the Baltic building and home improvement trade in UAB Senuku Prekybos centras (Senukai) was completed in 2016. The company's name was changed to Kesko Senukai. In the arrangement, Kesko sold the shares in its wholly owned companies responsible for the operations of K-rauta stores in Estonia and Latvia to its subsidiary Senukai, which is majority-owned by Kesko. The Kesko Senukai subgroup operates in Lithuania, Estonia, Latvia and Belarus.
Summarised financial information on subsidiary with material non-controlling interest
€ million Kesko Senukai Group
2017
Kesko Senukai Group
2016
Current assets 238.8 224.0
Non-current assets 109.7 87.9
Current liabilities 114.1 111.0
Non-current liabilities 31.7 18.0
Net sales 628.9 586.0
Net profit/loss 17.1 25.1
Parent company owners' share of net profit/loss 16.1 22.4
Non-controlling interests' share of net profit/loss 1.0 2.7
Comprehensive income for the period 10.7 24.3
Parent company owners' share of comprehensive income for the period 13.8 22.5
Non-controlling interests' share of comprehensive income for the period -3.1 1.8
Dividends paid to non-controlling interests -1.7 -1.1
Net cash generated from operating activities 13.4 14.3
Net cash used in investing activities -16.8 -26.0
Net cash used in financing activities 17.5 52.5
The amounts above are before intra-Group eliminations.