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