Kingfisher Plc · LSE:KGF
Kingfisher — FY2020/21 Earnings Presentation
23 slides from Kingfisher's earnings presentation, Apr 8, 2021
Slide 1: Strategic update
Strategic update Thierry Garnier Chief Executive Officer 1
Slide 2: Key messages
Key messages The home improvement market is attractive and resilient, with supportive new longer-term drivers Market trends offer us opportunities We are emerging from the COVID crisis stronger We are making progress fixing issues from previous years Our new strategy is delivering – empowered banner
Slide 3: Attractive market with new longer-term industry support
Attractive market with new longer-term industry support Market growth supported by structural drivers Provides relatively high margins vs. other retail industries Resilient against e-commerce pureplay competitors Proven to be robust through economic downturns COVID has established new longer-term in
Slide 4: Market trends offer us opportunities
Market trends offer us opportunities Online with stores Smaller Discounters and value at the centre formats for money Medium Rapid and Medium Gradual Medium Gradual term shift accelerating term shift term shift COVID Massive COVID Rising COVID Favours impact surge impact impact discounters ‘Do It Fo
Slide 5: Our strategic direction and key strengths
Our strategic direction and key strengths Our strategic direction Kingfisher banners are not A clear vision to build We will ‘power’ these Simpler the same. This is a strength customer propositions banners as a Group and leaner Positioned for growth Access to attractive Top 2 position in all Collect
Slide 6: We are emerging from the COVID crisis stronger
We are emerging from the COVID crisis stronger Roll-out of company strategy Improved banner awareness fully on track and brand reputation No delay in our plans from COVID Clear reconnection with our DIY brands ― ― Focus on speed, agility and ‘done is better than perfect’ Strong new customer growth a
Slide 7: We are making progress fixing issues from previous years
We are making progress fixing issues from previous years Build the New trading 1 new team 3 Focus 4 approach Group Executive Significantly reduced non-critical Reintroduction of local ranges team strengthened range reviews ― ― ― More trading events Key teams reinforced Paused large, ― at banners tim
Slide 8: Clear strategy and actions to drive share growth
Clear strategy and actions to drive share growth Our retail banners address diverse The role of the Group is to enable our banners to customer needs, operate different models serve their customers better and have a clear positioning and plan Test compact store Grow concepts and adapt e-commerce sale
Slide 9: B&Q and TradePoint – revitalised and well positioned
B&Q and TradePoint – revitalised and well positioned Operating Managed unprecedented demand levels; Overall improvement of stock quality Proof points Drivers Group digital technology stack implemented; LFL sales +13.0% and E-commerce Implemented next day delivery from store (98% UK population); stro
Slide 10: B&Q and TradePoint – 2021 focus areas
B&Q and TradePoint – 2021 focus areas Continued rebuild of availability ahead of peak trading periods Increase available range for online orders; Develop innovative last-mile delivery Further improve and broaden choice through brands and OEB Relaunch TradePoint; Launch NeedHelp in B&Q Test compact s
Slide 11: Screwfix – positioned for next stage of growth
Screwfix – positioned for next stage of growth Operating Managed significant changes to operating model during first lockdown to operate ~100% online with COVID-secure C&C Proof points Drivers LFL sales +6.6% Expanded capacity to service extraordinary increase in and strengthened E-commerce website
Slide 12: Screwfix – 2021 focus areas
Screwfix – 2021 focus areas Invest in fulfilment capacity to support growth; Upgrade IT platform to further enhance proposition Rapidly roll out new Screwfix app – focused on convenient ‘mobile-first’ collection and last-mile delivery Further extensions to core ranges; More OEB ranges tailored to th
Slide 13: Castorama France – significant progress 'repairing' in 2020
Castorama France – significant progress ‘repairing’ in 2020 Operating SAP ‘pain points’ identified and addressed Proof points Drivers Group digital technology stack fully implemented; LFL sales +6.2%; E-commerce Accelerated C&C and ‘delivery from store’ services; outperformed the market Enhanced C&C
Slide 14: Castorama France – 2021 focus areas
Castorama France – 2021 focus areas Optimise supply chain; Continued rebuild of availability ahead of peak trading periods Increase available range for online orders Range ‘repaired’ by end of 2021; Further broadening of range through brands and OEB Focused trading events; Maintain strong price posi
Slide 15: Group 'powers': E-commerce
Group ‘powers’: E-commerce Progress in 2020 Proof points New Group digital Digitally- ‘Digital hub’ More C&C E-commerce sales +158%; technology stack enabled picking model for B&Q Home delivery options 18% of sales (+10ppts) supporting 500k for all fulfilment to improve home expanded range trialling
Slide 16: Group 'powers': Own exclusive brands (OEB)
Group ‘powers’: Own exclusive brands (OEB) Clear purpose Growth and penetration Strong growth of brand awareness in 2020 Drives affordability ― £5.3bn High functionality, innovation Total OEB sales and differentiation New commercial operating model driving ― Supports Responsible Business +7.5% Sales
Slide 17: Group 'powers': Mobile-first capabilities and services
Group ‘powers’: Mobile-first capabilities and services Focus areas Drive a mobile-led online Acquisition of NeedHelp customer experience services marketplace Speedy Hire concessions – trial of new tool and equipment hire outlets within TradePoint Modernise the in-store experience 56% Improve our 8 k
Slide 18: Group 'powers': Store formats and footprint evolution
Group ‘powers’: Store formats and footprint evolution Our beliefs Strategic direction Stores are a central Our store numbers will increase driver of our retail and – but average store size e-commerce business will reduce Six compact store trials in 2020: B&Q express (x2), B&Q shop-in-shop at ASDA (x
Slide 19: Group 'powers': Responsible Business
Group ‘powers’: Responsible Business We are becoming a more We will be ‘forest positive’ and help inclusive company tackle climate change 27% reduction in Scope 1 and 2 emissions ‘Doing the right thing’ during COVID since FY 16/17 Local and Group diversity & inclusion plans Now committed to deliver
Slide 20: Group 'powers': Costs & same-store inventory reduction
Group ‘powers’: Costs & same-store inventory reduction Sourcing ‘Same-store’ Cost programme and buying inventory reduction Plan to drive cost Improve store Strategic partnerships Build on significant and same-store productivity with top brands planning and forecasting inventory ― ― improvements redu
Slide 21: Group financial priorities
Group financial priorities 1 2 3 Aim to grow adjusted Prioritise top line growth PBT in line with sales(1) Generate strong free and grow sales ahead + cash flow to underpin of market gradually faster than sales shareholder returns over time Clear strategy and actions to drive Focused on driving scal
Slide 22: Key drivers
Key drivers 1 2 3 E-commerce OEB sales New compact sales growth growth stores & penetration Grow OEB sales, Grow our e-commerce Test and roll out providing differentiation, business and lead compact stores across value for money, the industry our markets and margin 4 5 6 Costs & same- ‘Big-box’ Resp
Slide 23: Summary
Summary The home improvement market is attractive and resilient, with supportive new longer-term drivers Market trends offer us opportunities We are emerging from the COVID crisis stronger We are making progress fixing issues from previous years Our new strategy is delivering – empowered banners sup