Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
I t i R lt 2010Interim Results 2010Media Presentation
Slides will be available at www.kingfisher.com
Summary
• Strong results in challenging marketsS l fl t dj t d PBT 23%– Sales flat, adjusted PBT + 23%
• Self-help initiatives driving our performance – Sales outperformance in France– Group gross margin +130bps– Costs (SG&A) ratio to sales flatCosts (SG&A) ratio to sales flat
• Delivering Value’ programme progressing well
Performance by geography
Group Sales£5 4bn (0 1)%
Group Retail Profit£402m +15 8%£5.4bn (0.1)% £402m +15.8%
40% 40%
17% 18%
40% 40%
43% 42%
France UK & Ireland Other International
Financial highlights
• Constant currency sales flat, LFL down 1.3% • Gross profit up 2.7%* (GM%+130bps*)• Costs (SG&A) to sales ratio held flat
Adj t d t fit £354 23%• Adjusted pre-tax profit £354m, up 23%• Free cashflow £387m (2009/10: £347m)• Reported net cash £19m• Reported net cash £19m
* constant currencies* constant currencies
‘Delivering Value’ update
1. Driving up B&Q UK & Ireland’s profit Retail profit + 15%
2. Exploiting the UK Trade opportunityTradePoint rolled out into 118 large B&Q storesg
3. Expanding our total French businessProfits up +14%3 new stores +2% additional space3 new stores, +2% additional space
‘Delivering Value’ update
4. Rolling out in Eastern EuropeSales + 6%, profit +3% 2 new stores, 10 under development for H2
5. Turning around B&Q ChinagPrior year H1 losses almost halved80,000m2 space closed, over 95% sublet New range introduction underwayNew range introduction underway
6. Growing Group sourcingShipments running ahead of plan
7. Reducing working capitalSlightly down, on top of last year’s £300m reduction
UK & Ireland
Driving up B&Q UK & Ireland’s profitExploiting our UK Trade opportunity
Update on 2010/11 key priorities
Store Clean L C t95%+ £230m less 19Remaining Store Standards Clean InventoryStore
StandardsClean
InventoryShowroom Low Cost
Revamps
I if
95%+Stores stock in 2
years
19large store revamps
Showroomg
showroom revamps
y
C t C t lCost
Control
Intensify Our Space TradeCosts down
3%*
More direct sourcing
Roll out TradePoint
Trial new categories
Cost Control
Retail E i i
Proposition De elopmentEngineering Development
Driving up B&Q UK & Ireland’s profitExploiting our UK Trade opportunity
Direct sourcing ahead of plan
H2H1Xmas
Kitchen appliances
Outdoor leisure
Lighting JCB power tools
Driving up B&Q UK & Ireland’s profitExploiting our UK Trade opportunity
More innovation and eco
Driving up B&Q UK & Ireland’s profitExploiting our UK Trade opportunity
TradePoint now nationwide
TradePoint now nationwide• Now in all 118 large storesNow in all 118 large stores• 250,000 registered trade customers• National advertising recently launched Good early results
11• Average only 11 weeks trading• Maturing well, advertising helping• In 4 original trial stores:Annualised trade sales now
13% of total store sales (vs 9% previously); ATV c£50; 50% new customers; higher frequency of spend
Trade growth in H2• Trial TradePoint ‘order & collect’ counter in medium
stores • 7 further Screwfix outlets• Launch new trade credit offer (valid in B&Q,
TradePoint and Screwfix)
Driving up B&Q UK & Ireland’s profitExploiting our UK Trade opportunity
Kingfisher France
Expanding our total French business
Kingfisher France
Retail profit up 13.7%, boosted by self help
• Store modernisation and new marketing • Product innovation
Good sales growth Product innovation growth
• More direct sourcing i i i i b fiMargin • Buying optimisation benefits
• Fewer promotions
Margin Initiatives
Expanding our total French business
Product innovation at Castorama
8% of total tile sales
10% of total toilet sales
Expanding our total French business
Direct sourcing ahead of plan
Expanding our total French business
Expansion potential
Before After
La Rochelle La Rochelle
• 8,700 sqm • 15,000 sqm, q• 17% market share
, q(Casto 11,000 sqm; Brico Dépôt 4,000sqm)• 30 % market share
Expanding our total French business
Other International
Good growth continues
H1 H2
Poland • Gross margins +70bps
• Profit decline £4m
• 5 new stores• Central DC opens
Turkey• 1 new store• Profits +22%
• 4 new stores
R i• 1 new store
• 1 new store (2 in progress)
D l ‘ it t ’ f tRussia • Sales +38% • Develop ‘city store’ format Moscow
Rolling out in Eastern Europe
Castorama Poland
• Very tough H1 conditions, some one-off events• First Distribution Centre opens September 2010
– Immediate opportunity is Direct Sourcing now only 2%*L t t it i f ll ti l t l– Longer term opportunity is full national central distribution
• Now targeting 100 stores in Poland g g
* As a % of COGS (cost of goods sold)
Rolling out in Eastern Europe
B&Q China
i i G iFix it Grow it
• Store rationalisation complete
• Stock clearance complete
• New format now in 16 stores
• Strong management team• Costs reduced• Sub let income secured• Losses halved on track for
• Range re‐engineering 20% complete
• Introducing group own Losses halved, on track for breakeven in 2011
g g pbrands
Turning around B&Q China
‘Fix it’ Longyang store
H1 2009/10 H1 2010/11Sales £9m £8m
Space 13,600 sqm 6,950 sqm (-48%)
Sales/sqm £ 628 £ 1,115 (+77%)
*Excludes annual sublease income of c£1.2m - Starts in H2 2010.
Profit £ 0.5m £ 0.8 m*
Turning around B&Q China
10 Group ‘Superbrands’
H d Outdoors leisureDecorationHardware Outdoors leisureDecoration
HorticulturePower tools Kitchens, Bath &Bed
Heating & Opening PriceStorageHeating &
coolingOpening Price
Point
Growing Group sourcing
10 Group ‘Superbrands’
Growing Group sourcing
Summary & Outlook
H1• Strong performance in challenging markets• Self help driving our performance• ‘Delivering Value’ programme progressing well• Delivering Value programme progressing well
Short term outlookShort term outlook• Still not expecting any help from our markets • But the business is in robust shape• Investing for future growth
Long term growth
Good long term growth prospects• Leading in 5 markets, developing fast in another 3• Good store development pipeline• Now have a more profitable, higher returning
modelFi i l fl ibilit t l t th• Financial flexibility to accelerate growth
• Initiatives today will drive tomorrow’s growth