Dia 1

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Finnish Co-operative Movement 110
years Celebratory Conference. September 24,
2009 Arto Hiltunen, CEO, SOK, S-Group
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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S-Groups first 100 years
1900
2000
New strategy, new structure 1983
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Mr Juhani Pesonen elected CEO of SOK year 1982
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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The S-Groups mission is to provide services
and benefits to its members.
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• THE S-GROUPS VALUES
• Customer focus
• Responsibility
• Renewal
• Profitability

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THE S-GROUPS VISION Most preferred and
comprehensive services customer-owners first
choice
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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Structure of the S-Group
Customers / Members
Own
22 regional cooperatives
SOK Corporation
own
S-Groups support and service functions
SOKs operations
S-Groupssupply chain management
Operations
Operations
Customers / Members
St.Petersburg, Baltics customers
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Business structure
Bank
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Service station stores and fuel sales
Grocery sales
Department stores and speciality goods
43
25
40
30
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Cars and automotive goods
Agribusiness
Hotels and restaurants
Other S Groups restaurants
S Groups car dealerships
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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Growth of S-Groups operations, 2008
2006 2007 2008
Retail sales (EUR million) 9 587 10 544 11 821
- regional cooperatives 8 073 8 840 9 928
- SOK Corporation 1 514 1 704 1 893
Profit bef. extraord. items (EUR million) 341 318 250
- regional cooperatives 311 266 258
- SOK Corporation 30 52 -8
Employees 34 045 35 899 37 735
- regional cooperatives 25 482 27 010 28 389
- SOK Corporation 5 953 8 889 9 346
Investments (EUR million) 532 591 701
Bonus paid (EUR million) 232 263 306
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Distribution of S-Groups sales by business area
2008
Altogether EUR 11 820,6 million /12,1
Altogether
Agricultural trade
Automotive trade and accessories sales
Department stores and speciality stores
Supermarket trade
Servicestation store and fuel sales
Tourism and hospitality
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Number of members 2000-2008(cooperatives
belonging to the Bonus system)
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Bonuses paid to members 2000-2008 EUR million
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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Value innovation, the basis for the Blue Ocean
Strategy
Costs
If you can base the value innovation on your
special structure or knowledge, you can create a
constant competitive edge
Value Inno- vation
Kim-Mauborgne Blue Ocean Strategy
Value for customer
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Market shares in grocery trade in Finland, S- and
K-Group
Lähde AC Nielsen, myymälärekisteri
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S-Group profit and asset allocation in the
seventies
COOP
COOP
Suppliers and Service providers
COOP
COOP
COOP
COOP
SOK
COOP
COOP
COOP
COOP
COOP
COOP
COOP
COOP
COOP
COOP
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S-Group profit and asset allocation in the
nineties
Coop
Suppliers and Service providers
Coop
Coop
SOK
Coop
Coop
Coop
Coop
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The strategic value innovations of theS-Group
S-Bank
NEOT purchase logistics
Inex purchase logistics
Regional structure
Asset allocation to the frontline
1980
1990
2000
2010
2020
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Agenda

• Case S-Group
• S-Groups first 100 years
• Mission, vision, values
• Structure and organisation
• S-Group in figures
• Strategic value innovations
• Comments on the previous presentations

Arto Hiltunen
9.1.2016
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(No Transcript)
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Thank you!