Kingfisher PLC · LSE:KGF
Kingfisher — Corporate Update (August 2019)
12 slides from Kingfisher's corporate update, Aug 15, 2019
Slide 1: IFRS 16 Leases update
IFRS 16 Leases update 15 August 2019
Slide 2: Disclaimer and cautionary note regarding forward looking statements
Disclaimer and cautionary note regarding forward looking statements 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 th
Slide 3: IFRS 16 Leases – Summary
IFRS 16 Leases – Summary New accounting standard requiring the majority of leases to be recognised on the balance sheet (replacing previous standard IAS 17) IFRS 16 ‘Leases’ has no economic effect on Kingfisher’s business or cash flow, however it does impact the way assets, liabilities and the i
Slide 4: IFRS 16 Restatements
IFRS 16 Restatements
Slide 5: 2018/19 P&L restatement impacts (unaudited)
2018/19 P&L restatement impacts (unaudited) HY 2018/19 FY 2018/19 £m IAS 17 Adjustment IFRS 16 IAS 17 Adjustment IFRS 16 UK & Ireland 218 64 282 399 131 530 France 122 9 131 209 12 221 Poland 88 2 90 181 4 185 Romania (9) 2 (7) (15) 6 (9) Screwfix Germany (8) 1 (7) (16) 2 (14) Turkey JV 1 1 2 6 3 9
Slide 6: Summary of key retail profit impacts – FY 2018/19 (unaudited)
Summary of key retail profit impacts – FY 2018/19 (unaudited) £m 22 434 924 753 (285) (1) IAS 17 2018/19 ROU Asset Rent Elimination Other IFRS 16 2018/19 Retail Profit Depreciation Retail Profit On transition to IFRS 16, retail profit is mainly impacted by the elimination of rent expense (for in-s
Slide 7: Summary of key retail profit impacts – HY 2018/19 (unaudited)
Summary of key retail profit impacts – HY 2018/19 (unaudited) £m 12 214 490 404 (140) IAS 17 HY 2018/19 ROU Asset Rent Elimination Other IFRS 16 HY (1) Retail Profit Depreciation 2018/19 Retail Profit On transition to IFRS 16, retail profit is mainly impacted by the elimination of rent expense (fo
Slide 8: Appendix
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Slide 9: P&L impacts
P&L impacts P&L rent charge has been removed for in-scope leases Depreciation on right-of-use assets and interest on lease liabilities have replaced the charge Illustrative example 1: 20 year lease with fixed annual rentals Retail profit is boosted by the change as it is reported prior to inte
Slide 10: Balance sheet impacts
Balance sheet impacts The new standard will more closely align presentation of leased assets to owned assets Right-of-use (ROU) asset and lease liability created to reflect Illustrative example 2: 20 year lease with fixed annual rentals lessee’s right to use leased item and obligation to pay ren
Slide 11: Indicative impact of IFRS 16 on balance sheet – previously shared in March
Indicative impact of IFRS 16 on balance sheet – previously shared in March IFRS 16 adjustments rounded to the nearest £100m (1) Includes goodwill, other intangible assets, property, plant and equipment, investment property and investments in joint ventures and associates (2) Net debt under IFRS 16 c
Slide 12: Overview of Kingfisher property estate as at 31 January 2019
Overview of Kingfisher property estate as at 31 January 2019 Store numbers Sales area(1) (000s m2) c. 45% of Group space owned B&Q UK & Ireland 296 2,210 UK 12% Screwfix 627 40 France 75% UK & Ireland 923 2,250 Poland 80% Castorama 101 1,250 Brico Dépôt 123 850 Weighted average unexpired lease term