Kingfisher Plc · LSE:KGF
Kingfisher — Investor Presentation (May 2024)
29 slides from Kingfisher's investor presentation, May 22, 2024
Slide 1: Kingfisher plc Retail investor presentation
Kingfisher plc Retail investor presentation 22 May 2024
Slide 2: Welcome & agenda
Welcome & agenda Maj Nazir (Group IR Director) Introduction Anisha Singhal (Deputy IR Director) Financial results Outlook & guidance for FY 24/25 Maj Nazir (Group IR Director) Strategy update A clear plan to take France to the next level Positioning for 2025 and beyond 2
Slide 3: Introduction
Introduction Maj Nazir Investor Relations Director 3
Slide 4: Our investment thesis
Our investment thesis Attractive and growing Kingfisher has distinct Compelling shareholder home improvement market competitive advantages returns opportunity Large, fragmented and growing #1 and #2 leadership positions Multiple growth drivers industry – c.£160bn in our markets ― ― ― Diversity of ba
Slide 5: Kingfisher at a glance
Kingfisher at a glance Who we are An international home improvement company with over 2,000 stores in eight countries across Europe. We offer home improvement products and services to consumers and trade professionals through our stores and e- commerce channels. Our banners and footprint(1) Stores (
Slide 6: Delivering against our strategic priorities through our 'Powered by Kingfisher' model
Delivering against our strategic priorities through our ‘Powered by Kingfisher’ model Strong and distinct banners Each banner has a clear positioning, addressing diverse customer needs Differentiated Sourcing & A balanced banner-Group own exclusive brands (OEB) buying operating model Powered by Tech
Slide 7: Our strategic priorities
Our strategic priorities Our strategy aims to maximise the benefits to our customers by combining our distinct retail banners with the scale, strength and expertise of the Kingfisher Group Differentiate Grow by Accelerate Build a data- and win building on our e-commerce led customer through own diff
Slide 8: Leveraging the strength, scale and expertise of Kingfisher
Leveraging the strength, scale and expertise of Kingfisher UK & Ireland France Poland Other Iberia & International Romania Margin Margin Key value driver LFL growth Expansion LFL growth Expansion Expansion strengthening strengthening Market leader Market leader Competitive Discount Market leader Com
Slide 9: Leading the industry in Responsible Business
Leading the industry in Responsible Business FY 23/24 FY 25/26 Target Colleagues: Improving gender balance Women in senior 29% 35% leadership Becoming a more Investing significantly in colleague Women in inclusive company learning and growth management 40% 40% Planet: Reducing carbon emissions; targ
Slide 10: Financial results
Financial results Anisha Singhal Deputy Investor Relations Director
Slide 11: Key FY 23/24 financials
Key FY 23/24 financials Gross profit / Retail profit / Adjusted PBT(2) Sales margin % margin % / margin % £12,980m £4,776m 36.8% £749m 5.8% £568m 4.4% Total sales -1.8%(1) -1.6%(1) +10bps(1) -19.5%(1) -130bps(1) -25.1% -140bps LFL -3.1% Statutory profit Free cash flow Net debt Net leverage Pre-tax P
Slide 12: Q1 24/25 update
Q1 24/25 update ▪ Q1 LFL –0.9%(1) including a +1.9% calendar impact(2) Market share gains in the UK; ▪ Share gains at B&Q supported by strong e-commerce and TradePoint resilient sales; share gains and positive LFL at Screwfix performance in ▪ Resilient performance in core category sales (LFL -0.3%),
Slide 13: Outlook & guidance for FY 24/25
Outlook & guidance for FY 24/25 Anisha Singhal Deputy Investor Relations Director
Slide 14: Cautious on the overall market outlook in 2024
Cautious on the overall market outlook in 2024 Our expectation of total home improvement market – 2024 (YoY % change)(1) Low case High case ▪ Resilient consumer but some caution in spending UK & Low-single ▪ Improving housing market indicators, but lag expected Flat Ireland digit decline to home imp
Slide 15: FY 24/25 outlook & guidance
FY 24/25 outlook & guidance Low case High case Cautious on ▪ UK: low-single digit decline ▪ UK: flat overall market ▪ France: mid-single digit decline ▪ France: low-single digit decline outlook for FY 24/25 ▪ Poland: flat ▪ Poland: low-single digit growth ▪ Continued focus on market share gains ▪ Co
Slide 16: Strategy update
Strategy update Maj Nazir Investor Relations Director 16
Slide 17: Significant space opportunity, driven by Screwfix and Poland
Significant space opportunity, driven by Screwfix and Poland FY 23/24 highlights FY 23/24 highlights FY 23/24 highlights FY 23/24 highlights ‘B&Q Local’ sub-branding roll 51 new stores opened in the 5 new stores First two compact stores out to high street stores UK & Ireland; 15 in France ― (1,000 s
Slide 18: Big ambitions for e-commerce and marketplace
Big ambitions for e-commerce and marketplace FY 23/24 highlights B&Q marketplace delivering c.£200m GMV(1) Marketplace: ― more choice 1.2+ million SKUs from c.1,100 selected merchants on diy.com driving more ― customers 10-15% take rate and minimal cost drives highly profitable model FY 24/25 plan S
Slide 19: Retail media: a new and exciting income stream
Retail media: a new and exciting income stream FY 23/24 highlights Launched in both banners in France and B&Q ― Building the Group partnerships with CitrusAd and Unlimitail foundations ― Created dedicated retail media team FY 24/25 plan Launch at Screwfix, Castorama Poland, Iberia Improving and Roma
Slide 20: Trade strategy showing proven success
Trade strategy showing proven success Extending trade proposition Growing trade to France and Poland… …with strong early results penetration Presence in 67% of B&Q estate Future potential ― 21 new trade counters Active members +6% YoY >£1bn TradePoint sales ― ― ― c.40 new dedicated sales partners H2
Slide 21: A clear plan to take France to the next level
A clear plan to take France to the next level Maj Nazir Investor Relations Director
Slide 22: Taking France to the next level – simplicity, performance and profitability
Taking France to the next level – a new plan focused on simplicity, performance and profitability Simplifying ‘France’ structure ― All strategic and operational activities moving to banners, Simplifying the increasing autonomy and agility, and streamlining head offices France ― organisation Some lim
Slide 23: Positioning for 2025 and beyond
Positioning for 2025 and beyond Maj Nazir Investor Relations Director
Slide 24: Confident in medium-term growth and cash generation opportunity
Confident in medium-term growth and cash generation opportunity LFL sales growth driven by our strategic focus areas including e-commerce and marketplace, OEB, trade Sales to grow ahead of ― our markets Sales impact of c.+1.5% to +2.5% from annual net space growth over the medium term, primarily dri
Slide 25: Disciplined approach to capital allocation
Disciplined approach to capital allocation Invest in attractive Sustainable Returns to growth opportunities dividend growth shareholders Prioritise growth Progressive growth Surplus capital to be opportunities that of dividends returned via share accelerate our strategy ― buybacks or ― Target cover
Slide 26: Our investment thesis
Our investment thesis Attractive and growing Kingfisher has distinct Compelling shareholder home improvement market competitive advantages returns opportunity Large, fragmented and growing #1 and #2 leadership positions Multiple growth drivers industry – c.£160bn in our markets ― ― ― Diversity of ba
Slide 27: Q&A
Q&A
Slide 28: Disclaimer
Disclaimer You are not to construe the content of this presentation as investment, legal or tax advice and you should make your own evaluation of the Company and the market. If you are in any doubt about the contents of this presentation or the action you should take, you should consult a person aut
Slide 29: Thank you
Thank you