Slide 1: Kingfisher plc Full Year Results
Kingfisher plc Full Year Results 12 months to 31 January 2023 21 March 2023
Slide 2: 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 3: Welcome & agenda
Welcome & agenda Bernard Bot (CFO): FY 22/23 results Performance overview Cash, debt and liquidity Effective supply chain and cost management FY 23/24 outlook & guidance Thierry Garnier (CEO): Operational & strategic update Building a track record of delivery Strong & diverse with proven resilience
Slide 4: Key messages
Key messages A year of solid execution, performance in line with our expectations and guidance Sales outperforming home improvement industry growth, and significantly ahead of pre-pandemic levels Multiple profitable growth opportunities being pursued at pace Well positioned to navigate FY 23/24 Main
Slide 5: FY performance in line with our expectations
FY performance in line with our expectations Resilient sales across both retail and trade channels Total sales -0.7% and LFL -2.1% (3-year LFL sales +15.6%) Growing sales ahead of the market 3-year total sales CAGR(1) of +5.9% vs market CAGR(2) of +4.9% Resilient underlying sales trends in the new y
Slide 6: FY 22/23 results
FY 22/23 results Bernard Bot Chief Financial Officer 6
Slide 7: Key financials
Key financials Gross profit / Retail profit / Adjusted PBT(2) Sales margin % margin % / margin % £13,059m £4,795m 36.7% £923m 7.1% £758m 5.8% Total sales -0.7%(1) -2.6%(1) -70bps(1) -19.2%(1) -160bps(1) -20.2% -140bps LFL -2.1%, 3-year LFL +15.6% Statutory profit Free cash flow Net debt Net leverage
Slide 8: Geographic summary
Geographic summary FY 22/23 sales Retail profit/(loss) Retail profit/(loss) margin % % 3-year % 3-year 3-year £m % LFL(1) £m % chg(1) % bps chg(1) LFL (1) chg (1) bps chg (1) UK & Ireland 6,200 (6.9)% +15.3% 603 (24.0)% +20.9% 9.7% (250)bps - B&Q 3,835 (8.8)% +15.8% Screwfix 2,365 (3.4)% +14.2% Fran
Slide 9: Group retail profit bridge (FY and H2)
Group retail profit bridge (FY and H2) £m Operating costs driven by: Operating cost inflation including increases in pay rates, (106) significantly higher energy costs and normalisation of COVID-related underspend in the prior year H2: flat Increase substantially offset by flexing staff costs an
Slide 10: Summary cash flows
Summary cash flows £m Increase in inventory £(234)m: (469) >100% of increase driven by inflation, alongside higher levels of ‘carry over’ seasonal items and stock to support store expansion Partially offset by lower purchases and strategic actions to reduce inventory Decrease in payables & incre
Slide 11: Net debt and liquidity
Net debt and liquidity FY FY £m Over £800m of total liquidity as of 31 January 2023 22/23 21/22 (including undrawn £550m RCF) IFRS 16 lease liabilities (2,444) (2,376) Outflow of £583m relating to ordinary dividends and share buybacks Financial debt(1) (100) (5) Cash and cash equivalents(2) 270 809
Slide 12: Effective management of inflation, costs and inventory levels in FY 22/23
Effective management of inflation, costs and inventory levels in FY 22/23 Broadly flat gross margin % Active management Inventory increase driven vs FY 19/20 of operating costs by inflation Proactive supplier negotiations Increased pay awards and support Over 100% of inventory value and stock purcha
Slide 13: Continued effective management of inflation pressures in FY 23/24
Continued effective management of inflation pressures in FY 23/24 Easing of raw material and Cost initiatives helping to Optimising our supply chain input cost inflation in H2 relieve opex pressure and inventory management Easing of raw material prices Ongoing cost savings programme Maintaining high
Slide 14: FY 23/24 outlook and guidance
FY 23/24 outlook and guidance February 2023 total sales +1.9% (LFL sales +0.5%) Resilient underlying Underlying sales trends remain resilient, with ‘big-ticket’ sales broadly flat YoY sales trends in the new year Expect some impact in March from adverse weather conditions and strong comps in P
Slide 15: Thank you and strategic update
Thank you and strategic update Operational Thierry Garnier Chief Executive Officer
Slide 16: Kingfisher has evolved substantially in the last three years
Kingfisher has evolved substantially in the last three years 2020: Launch of 2022: Strong 2019: Early actions to fix ‘Powered by execution against the basics Kingfisher’ priorities Rebalanced banner versus Strategic priorities identified Rapid progress against all Group responsibilities to drive bus
Slide 17: We have executed strongly and achieved a lot
We have executed strongly and achieved a lot Delivering against our Winning with our customers Leading Responsible financial priorities and colleagues Business practices Growth +5.9% Carbon 52.7% LFL sales +15.6% ahead of our 3-year sales CAGR vs emissions reduction in Scope vs FY 19/20 market(2) re
Slide 18: In a fast-changing environment
In a fast-changing environment Macroeconomic Lifestyle Technology Environment High inflation Hybrid working Digital adoption and Reducing Higher consumer Focus on ‘life at acceleration across environmental energy prices home’ categories and impact increasingly age groups important to I
Slide 19: Kingfisher is strong and diverse, with proven resilience
Kingfisher is strong and diverse, with proven resilience Resilient end market Structural industry Balanced exposure demand growth drivers with financial flexibility Low unemployment Solid market growth since Diverse retail banners and ― 2019 (+4.9% CAGR); geographic presence Build up of personal sav
Slide 20: Surveys highlight resilience of home improvement
Surveys highlight resilience of home improvement More working from home is here to stay Heightened focus on energy efficiency Clear increase in consumers citing energy efficiency 2.5 to 3 days per week on average; as a ‘trigger’ for home improvement(1) 2x more vs pre-pandemic(1) 17% 15% 12% Average
Slide 21: Continued strong execution against our 'Powered by Kingfisher' strategic priorities
Continued strong execution against our ‘Powered by Kingfisher’ strategic priorities 1 Grow by building on our different banners 2 Accelerate e-commerce through speed and choice 3 Build a data-led customer experience 4 Differentiate and win through own exclusive brands (OEB) 5 Develop our trade busin
Slide 22: Grow by building on our different banners
1 Grow by building on our different banners Footprint today vs 3 Future potential driving c.+1.5% to +2.5% sales impact years ago(1) from annual net space growth over the medium term +15 B&Q stores(2) c.50 ‘white spaces’ where B&Q is currently under-represented in the UK +30 TradePoint counters in U
Slide 23: Accelerate e-commerce through speed and choice
2 Accelerate e-commerce through speed and choice 2.5x increase in e-commerce sales 25% Expanded store-based 91% orders picking model picked from ― store Leveraging our stores to offer E-commerce sales penetration (%) Faster click & collect with customers even faster speed more options; 87% of ― 24%
Slide 24: Build a data-led customer experience
3 Build a data-led customer experience Achievements to date: data Forward focus: data powering powering growth growth and profit 20m new 103% 30% Leveraging data for margin realisation identifiable revenue higher customers retained basket for Smart markdowns, clearance and pricing acquired over 12 k
Slide 25: Retail media – potential to reach up to 3% of e-commerce sales
3 Retail media – potential to reach up to 3% of e-commerce sales A $120bn+ global opportunity and growing Proven success of unlocking value Retail media revenues (US$ bn)(1) Estimated retail media revenues (US$)(2) % of online sales ~180-200 2023 2026 forecast 3.5% 1.4% 5.1% 1.3% 1.2% ~2.2bn ~120-12
Slide 26: Differentiate and win through own exclusive brands (OEB)
4 Differentiate and win through own exclusive brands (OEB) OEB has been a key driver of our sales and market A clear and differentiated offer to share growth over the last 3 years support LFL sales growth 3-year LFL +15.4% Continuing to develop innovative OEB ranges through a customer project lens ―
Slide 27: Develop our trade business
5 Develop our trade business Targeting higher trade Building a >£1bn pro-dedicated business at B&Q, with TradePoint penetration in all banners 3-year LFL +31.5% Trade represents >£50bn addressable market £634m £833m >£1bn ― Average trade customer spends TradePoint Refreshed and members(1) Grow share
Slide 28: Roll out compact store formats
6 Roll out compact store formats Ongoing tests across banners Our ambition and markets Grow market share 33 compact store tests(1) open across ― UK, France & Poland. Brico Dépôt France Drive convenience and improve compact store test to launch this year customer experience ― ― Focus on urban, in-fil
Slide 29: Lead the industry in Responsible Business & energy efficiency
7 Lead the industry in Responsible Business & energy efficiency FY 22/23 FY 25/26 Target Improving gender balance Women in senior Becoming a more leadership 26% 35% Provided 6.6m hours of skills for life inclusive company learning since FY 19/20; surpassed target Women in of 5m hours by 2025 managem
Slide 30: Expanding our ranges and services to support energy efficiency
7 Expanding our ranges and services to support energy efficiency A strong and growing offer 11.5k+ energy efficiency SKUs helping customers save energy and money at point of use ― 11% of our sales derived from energy and water-saving products, +23% vs FY 19/20 End-to-end solutions at B&Q, Castorama
Slide 31: Human, agile and lean
8 Human, agile and lean Human Agile Lean Embedding our ‘test and Prioritising agile and Continuing to challenge learn’ mindset efficient technology: costs and inventory ― ― Improving speed and Ensuring customer- Supporting ongoing store cost of new centricity footprint adaptation technologies ― an
Slide 32: Driving our strategic priorities through our 'Powered by Kingfisher' model
Driving 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 Technology Cult
Slide 33: With a disciplined approach for each banner
With a disciplined approach for each banner Other Margin Margin Key value driver LFL growth Expansion LFL growth Expansion strengthening strengthening Relative profit Above Above Below Above Above Below margin(1) vs Group Market leader Market leader Competitive Discount Market leader Competitive Pos
Slide 34: Disciplined capital allocation: prioritising investment for growth
Disciplined capital allocation: prioritising investment for growth 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 ― buy
Slide 35: 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 36: Summary
Summary A year of solid execution, performance in line with our expectations and guidance Sales outperforming home improvement industry growth, and significantly ahead of pre-pandemic levels Multiple profitable growth opportunities being pursued at pace Well positioned to navigate FY 23/24 Maintaini
Slide 37: Q&A
Q&A
Slide 38: ADR programme
ADR programme Kingfisher ADRs trade on OTCQX – the premier tier of the U.S. Benefits of ADRs to U.S. investors: over-the-counter market under the following information: Symbol KGFHY Clear and settle according to normal U.S. standards CUSIP 495724403 Ratio 1 ADR : 2 ORDs Offer the convenience of stoc
Slide 39: Contacts
Contacts Investor Relations Media Relations Teneo Tel: +44 (0)20 7644 1082 Tel: +44 (0)20 7644 1030 Tel: +44 (0)20 7420 3184 Email: investorenquiries@kingfisher.com Email: corpcomms@kingfisher.com Email: Kfteam@teneo.com 39
Slide 40: Appendices
Appendices 40
Slide 41: FY 23/24 technical guidance
FY 23/24 technical guidance(1) Space Sales impact of c.+1.5% from net space growth, largely from Screwfix and Castorama Poland ‘Other’(2) retail losses of c.£40m (FY 21/22: £30m), with increase driven by additional investment New businesses in Screwfix France Central costs Anticipate c.£60m, i
Slide 42: FY performance summary – UK & Ireland
FY performance summary – UK & Ireland B&Q (including TradePoint) Screwfix LFL sales -8.8%; 3-year LFL +15.8% LFL sales -3.4%; 3-year LFL +14.2% ― ― E-commerce sales -7%; 3-year +130%; E-commerce sales -9%; 3-year +137%; 11% of sales ― 60% of sales TradePoint LFL -1.2%; 3-year LFL +31.5%; 22% of sale
Slide 43: FY performance summary – France
FY performance summary – France Castorama Brico Dépôt LFL sales flat; 3-year LFL +13.9% LFL sales -2.9%; 3-year LFL +12.5% ― ― E-commerce sales -19%; 3-year +240%; E-commerce sales -20%; 3-year +133%; 5% of sales 4% of sales FY 22/23 FY 21/22 % chg(1) Total France Sales (£m) 4,452 4,498 -1.2% Sales
Slide 44: FY performance summary – Poland
FY performance summary – Poland Castorama LFL sales +13.8%; 3-year LFL +19.8% ― E-commerce sales +2%; 3-year +285%; 5% of sales FY 22/23 FY 21/22 % chg(1) Poland Sales (£m) 1,734 1,525 +16.7% Sales +16.7%, LFL sales +13.8% (3-year LFL +19.8%) – against a prior year comparative impacted in Q1 by COVI
Slide 45: FY performance summary – Romania and Iberia
FY performance summary – Romania and Iberia Brico Dépôt Romania Brico Dépôt Iberia Sales(1) +1.7%, LFL sales(2) +7.8% Sales +1.9%, LFL sales +1.9% (3-year LFL(2) +38.0%); LFL reflects (3-year LFL +16.7%); reflecting strong YoY performances in the resilient sales against strong prior outdoor, surface
Slide 46: Thank you
Thank you