Paris event 30 March 2011

Transcription

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2 Paris event 30 March 2011

3 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 3

4 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 4

5 Key Figures France Region Market share (1) 23,0% 23,7% 24,2% 24,6% ADEO 20,8% (24,4%) 3 21,5% (24,6%) 3 Mr Bricolage Bricomarché Bricorama 8,7% 8,0% 2,1% 9,4% 8,0% 2,5% Sales ( bn) 4,3 4,7 4,8 4,8 Store number CASTORAMA ( bn) 2,4 2,5 2,6 2,6 Store number BRICO DEPOT ( bn) 1,9 2,2 2,2 2,2 Store number , , ,2 102 Retail Operating Profit ( mil) ROC(2) (%) 11,3 11,9 12,4 13,6 (1)Source UNIBAL: Market share based on calendar year (2) This is lease adjusted returns excluding goodwill and property profit (3) 1 st excluding Weldom / 2 nd including 100% of weldom s sales 5

6 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 6

7 Market context Kingfisher outperforms a market that is recovering % King France Marché BdF 5.0% 3.0% 1.0% +1,8% +1,4% Jan-08 Jan-09 Jan-10 Jan % -3.0% -5.0% -7.0% 7

8 Market context... supported by Castorama performance % Casto King France Marché BdF 5.0% +3,8% 3.0% 1.0% +1,8% +1,4% Jan-08 Jan-09 Jan-10 Jan % -3.0% -5.0% -7.0% 8

9 Market context... impacted by a tense market on trade for Brico Dépot... BD Trade to private HH excl DIY 6.0% 4.0% 2.0% 0.0% +1,0% -2.0% -4.0% -3,6% -6.0% -8.0% -10.0% -12.0% -14.0% 9

10 janv-08 avr-08 juil-08 oct-08 janv-09 avr-09 juil-09 oct-09 janv-10 avr-10 juil-10 oct-10 janv-11 Market Context but residential market is back to growth Market recovery of existing homes Number of new Individual Homes construction is increasing 850 Nb of transactions existing homes (cumulative 12 months, in OOO) cumulative 12 months Authorized Started Authorized Started nov-07 nov-08 nov-09 nov-10 New home credit production (cumulative 12 months) janv-08 janv-09 janv-10 janv-11 Sources : Ministère du développement durable, CGEDD, Banque de France, FPC, HSBC 10

11 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 11

12 Castorama Understand the strategic evolution of Castorama Revenues Productivity Evolution of Products and Services Offer Back to basics CPR Price Efficiency Store Investment Programme Supply Chain Back to market Inspire the market 12

13 Castorama based on major customer trends Give me power ON-LINE CONSUMER LOHAS Health and Green Lifestyles of Health and Sustainability Emphasize me SENSE & SENSITIVITY Guide me Economy of Care Easy and Inspiring «SIMPLEXITY» 13

14 Castorama a new internal dynamic aimed at our customers Fluid Shopping Experience Need for simplicity The conquest of autonomy Please oneself Easy actions Sense of belonging Intuitive products and actions 14

15 Castorama supported by a permanent work on offer and ranges Range reviews 40% 60 20% 30 0% RR number % of sales impacted 15

16 Castorama enhance by innovation to simplify the response to customer... 16

17 Castorama enhance by innovation to simplify the response to customer... 17

18 Castorama enhance by innovation to simplify the response to customer... 18

19 Castorama and through the 10 new super brands... 19

20 Castorama and through the 10 new super brands... 20

21 Castorama already common between B&Q and Casto... 21

22 Castorama a target at Castorama of approx 3000 skus in store in Skus 300 Skus 100 Skus 200 Skus 400 Skus 50 Skus 300 Skus 900 Skus 50 Skus Target: c.30% of total sales made with own Brands 100 Skus 22

23 Castorama Do it smart: a global approach 23

24 Castorama Perspectives Revamp program 1 st test on smart store (Villabé) 2011/12 1 new store and 4 relocations Finalize revitalisation programme Accelerate range review programme Offer Reinforce offer and visibility of eco-products Increase offer of labelled product ( c est malin, c est simple,...) Innovation Keep on nurturing 3D project Put new storage ranges on market People Pursue dynamic of collaborative and communicational project New bonus scheme roll out Product forum 24

25 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 25

26 Brico Dépôt A world class model... Number of Stores M Market Share* N 3 Sales per sqm (excl Tax) / Skus Sales per worked hour (excl Tax / Store staff only) SC & SAP efficiency Sales per reference 0 Store number Sales 0 Stock turn ~80 days 200k CAGR ,3% 17,1% *2010 data 26

27 Brico Dépôt based on an efficient promise Every Day Low Price: Promise to beat competitors across the range Short ranges: 20/80 for Building and Renovation Product availability: Products immediately available in big volume (no orders) Arrivages": off-range products in limited quantity 27

28 Brico Dépôt addressing private & professional markets at the same time % % CA % Sales per department 80% 25.9% 33.4% Decorative Power tools Hand tools 60% 40% 35.5% 37.9% Electricity Flooring Kitchen and plumbing Tradesmen Heavy DIYers DIYers 20% 0% 100% 80% 60% 38.6% Brico Dépôt Customer segments 19,0% 22,0% 28.7% DIY Professional Semi-professional Building materials Woodwork Carpentry 40% Two different markets addressed Traditional DIY retailers Building merchants 20% 0% 59,0% % of sales Individuals 28

29 Brico Dépôt but needing now to be reinforced and renewed... Reinforce the foundation Price as a basic Develop and Renew the concept Best trends follower? Value for money? Simplicity Sustainable development? Essential? 29

30 Brico Dépôt through a strategic plan in 2 phases Reaffirm and strengthen the fundamentals Brico Depot (Ex: Range reviews, direct sourcing, team support) Create new advantages and renovate the concept to strengthen the brand 30

31 Brico Dépôt Example of axis rolled out: the range reviews Kitchen Furniture 2009/01: 84% of ranges > 4 Years Implemented from April to December range reviews Best net sales Security Systems Stronger progress 31

32 Brico Dépôt Example of axis rolled out: develop sourcing +150M$ +4,4bps KSO purchases in M$ Direct sourcing % (on COGS) 32

33 Brico Dépôt Example of axis rolled out: team support Dedicated team to support the change programme (strategic planning, project management and communication) Dedicated recruitment team Collaborative process «Brico dépôt demain» Store manager training Setting-up of a test dynamic Concept POS, signage Store efficiency 33

34 Brico Dépot Perspectives Marketing Strategy Brand platform Multi-channel strategy Reaffirm and strengthen the fundamentals Brico Depot Create new advantages and renovate the concept to strengthen the brand Offer and Concept Operations & Organisation Price strategy and pricing tools set up 24 range reviews: redesign of principle of range structure Own brand strategy Refine and validate Blue Print Continue roll out of lean project in store and new in store management structure Roll out of new Supply Chain / Operation organization Improvement of supply chain performances Management of total margin and business performance People & Leadership Specific training for regional and store directors Redefine mission of Head office vs. Stores 34

35 Agenda Key figures Market context Strategic outlines Castorama Brico Dépot France region mission 35

36 Kingfisher France Working together Create links Opco Board meetings KF France Board Operational cross-opco steering committees Create sources of short-term improvement Purchasing synergies GNFR synergies Sharing best practices Build a performing and long-term development Store development strategy 36

37 Kingfisher France Create performance conditions A common approach a local adaptation On a quarterly basis payment Operational measure Operational measure 37

38 Kingfisher France Working together Create links Create sources of short-term improvement Structure and develop common vendors management: KFF rebates Price and rebates harmonisation Common sourcing and common products development Integration of Brico Dépôt Spain Build a performing and long-term development Collaborative organisation on GNFR 38

39 Kingfisher France Strong opportunities to increase store number Create links Create sources of short-term improvement Build a performing and long-term development End 2011: 205 stores 2 openings, 4 relocations & 2revamps Castorama : c.67% revitalised end 2011 Long term potential: 240 stores 39

40 End 2011: 205 stores 2 openings 4 relocations 2 revamps End 2011 Castorama : c.67% revitalised end 2011 Long term potential: 240 stores 40

41 Kingfisher France Strong opportunities to increase store number Val d Europe Pamiers Villabé Flandres St Dizier Lormont 41

42 Two companies Two concepts Two business models One Strategy 42

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