France. Analysts Event. 11 June Kingfisher France

Transcription

1 France 1

2 Analysts Event 11 June 2010 Kingfisher France 2

3 AGENDA Kingfisher France Figures Brico Dépot Castorama Kingfisher France mission 3

4 Delivering value 7 steps 1. Driving up B&Q UK s profit 2. Exploiting the UK Trade opportunity 3. Expanding our total French business 4. Rolling out in Eastern Europe 5. Turning around B&Q China 6. Growing Group sourcing 7. Reducing working capital Management, Capital and Returns 4

5 Key Figures Market share (1) 23,0% 23,7% 24,2% 24,6% ADEO 20,8 24,4% 21,5 24,6% Mr Bricolage 8,7% 9,4% Brico Marché 8,0% 8,0% Bricorama 2,1% 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 Retail Operating Profit ( mil) Cash flow from Operations ( mil) ROC(2) (%) 11,3 11,9 12,4 (1)Source UNIBAL: Market share based on calendar year (2) This is lease adjusted returns excluding goodwill and property profit 5

6 French Market 2009 FY CASTORAMA BRICO DEPOT Comparable Store KFF -0,9% -5,3% -3,0% Market BDF DIY: -2,8% All Surfaces -0,1% -1,2% -0,6% UNIBAL Market DIY: -0,6% Trade: -10% Q CASTORAMA BRICO DEPOT Comparable Store KFF +2,8% -1,8% +0,6% Market BDF DIY: +1,2% All Surfaces +4,0% +0,3% +2,2% UNIBAL Market NA 10.0% 5.0% 0.0% Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 Market Comparable Store Kingfisher Comparable Store -5.0% Source : BDF -10.0% 6

7 AGENDA Kingfisher France Figures Brico Dépot Castorama Kingfisher France mission 7

8 Brico Dépot A world class model Number of Stores M Market Share Sales per sqm N / Skus Sales per worked hour SC & SAP efficiency Sales per reference 0 0 Stock turn ~80 days 200k CAGR Store number Sales (excl taxes) 11,3% 17,1% 8

9 Every Day Low Price: Promise to beat competitors across the range based on an efficient promise 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 9

10 addressing private & professional markets at the same time 100% % 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 20% 0% 38.6% 28.7% Building materials Woodwork Carpentry Brico Dépôt DIY Tradesmen Heavy DIYers DIYers 100% 80% 60% Customer segments 19,0% Professional 22,0% Semi-professional 40% Two different markets addressed Traditional DIY retailers Building merchants 20% 0% 59,0% % of sales Individuals 10

11 A performance impacted by the financial crisis 20.0% 15.0% BD LFL growth vs. DIY market (BDF) GLOBAL FINANCIAL CRISIS 15.0% BD Total growth vs. Internal Market Index* (based on UNIBAL data) 10.0% 10.0% 5.0% 5.0% 0.0% Feb-05Jun-05Oct-05Feb-06Jun-06Oct-06Feb-07Jun-07Oct-07Feb-08Jun-08Oct-08Feb-09Jun-09Oct-09Feb % 0.0% Jan-08 Mar- 08 May- 08 Jul-08 Sep- 08 Nov- 08 Jan-09 Mar- 09 May- 09 Jul-09 Sep-0 9 Nov % -5.0% -15.0% LFL Market -10.0% Total Growth BD Internal Index * Internal Market index: based on UNIBAL total growth. 80%of DIY growth + 20% of Trade growth (excluding garden) 11

12 but the property market appears to have stabilized Property market: new individual houses 1 (over a period of 12 months) Property market: old houses (over a period of 12 months) Mortgage value (over a period of 12 months) Md Authorized Started Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Feb 07 Feb 08 Feb 09 Feb 10 (1): Continental France Source: Ministry of Sustainable Development, CGEDD, Banque de France 12 12

13 Reinforce the foundation Price as a basic Brico-Dépot s objective is to reinforce and renew its concept Develop and Renew the concept Best trends follower? Value for money? Simplicity Sustainable development? Essential? 13

14 Reinforce the foundation Price as a basic Reinforcement of the One Shots One Price for all Improve the Pricing process: Central data Better adaptability to competitors 2000 products in

15 Reinforce the foundation Simplicity of the offer Improve self-service Packaging Customer experience New website +40% traffic BEFORE AFTER Merchandising Improvement 15

16 Develop and Renew the concept Best trends follower Perfect offer At the same time classic and trendy TRENDY Support the evolution through range reviews 2008: 80% of the range not reviewed for 4 years 2009: 22% of the range reviewed, 27% of sales 2010: 25 range reviews planned +7% LFL 16

17 Develop and Renew the concept Value for money Own Brands Quality / Price Lifetime warranty Sourcing 17

18 Develop and Renew the concept Sustainable development Energy savings Categories where Brico Dépôt is strong by essence Insulation Photo isolation Heating Wood 18

19 Develop and Renew the concept Essential 19

20 in a constantly optimised cost model Optimise of the logistic flows: controlled cross dock Analyse the refilling of the shelves Optimise of the store processes Reinforced robustness of the store IT systems Intactix: management of the planogrammes (group solution) Central price data Integrated SAP JDA 20

21 supported by the teams 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 21

22 Conclusion A world class model A strong global financial crisis since 2008 impacting both major Brico Dépôt markets A concept and a business model to be reinforced and renewed 2 major steps Reinforce the foundation Develop and Renew the concept 22

23 AGENDA Kingfisher France Figures Brico Dépot Castorama Kingfisher France mission 23

24 A coherent strategic plan since Revenues Productivity 8% Market in 12 rolling months Evolution of Products and Services Offer Price Back to basics CPR Efficiency 6% 4% Castorama Store Investment Programme Supply Chain 2% 0% Back to market 2% - - Market 4% - - Jan - Jul - Jan - Jul - Jan - Jul - Jan - Jul - Jan - Jul - Jan Market Share N 2 Sales per sqm +14% vs Range reviews ~20% Sales per year Sales per worked hours ~+40% Over the market since

25 A coherent strategic plan since Revenues Productivity Evolution of Products and Services Offer Price Back to basics CPR Efficiency Store Investment Programme Supply Chain Back to market Inspire the market 25

26 capitalise on major customer trends Give me power ON-LINE CONSUMER Health and Green Emphasize me LOHAS Lifestyles of Health and Sustainability SENSE & SENSITIVITY Guide me Easy and Inspiring Economy of Care «SIMPLEXITY» 26

27 consistent with our brand and values Self service offer The brand that shares its know-how Everything under the same roof Valuable services Choice Sales in volume Human system = social ladder 27

28 evolving our customer proprosition 70 s, the DO IT of the «beavers» (DIY) Tools Hyper complexity Rare Poor brands Hocus-pocus Life Complex Hyperchoice Investment Saviour Tomorrow, the DO IT for home improvement (DIS) Universal Selection Easy Pleasure Collection Evocative Disposable User-Friendly Aesthetic For all Frequent Guide 28

29 from DIY to DO it Smart Fluid Shopping Experience Need for simplicity The conquest of autonomy Please oneself Easy actions Sense of belonging Intuitive products and actions 29

30 DO!T smart Offering smart products to customers Only at Castorama Only at Castorama 30

31 DO!T smart and smart solutions Put together in 2 hours 31

32 DO!T smart enable customers to have sustainable homes Only at Castorama In products in our ranges 11,3% of our total sales Q1 2010: a significative increase of the % 100% of range Thermodynamic water heater 70% energy saving 40% income tax relief 100% of own brands eco-labelised Insulation Wool rolls Strong growth 25% of the product family 100% natural 32

33 DO!T smart One requirement : invest in product innovation 33

34 DO!T smart Make it easier with smart merchandising 34

35 DO!T smart Make it easier with smart merchandising 35

36 DO!T smart To summarize what was shown above 36

37 DO!T smart possible thanks to the Revitalisation Programme 37

38 DO!T smart Develop Cross-channel to help customers Easy to surf Inspiring Prepare Purchase 38

39 DO!T smart Develop Cross-channel to help customers Know How Sharing skills Product Rating Proud of my decor Help my choice 39

40 DO!T smart Develop Cross-channel to help customers Delivering point 40

41 DO!T smart Communicate to our customers: Castoche weekends 41

42 DO!T smart Communicate to our customers: new advertising campaign 42

43 DO!T smart Develop a sense of belonging 43

44 44

45 AGENDA Kingfisher France Figures Brico Dépot Castorama Kingfisher France mission 45

46 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 46

47 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 47

48 Kingfisher France Strong opportunities to increase store number Create links Create sources of short-term improvement Kingfisher stores 100 Brico Dépôt 101 Castorama Build a performing and long-term development 2010: 3 openings and 7 revamps Castorama : 63% revitalised end

49 Two companies Two concepts Two business models One conquest strategy 49

50 Appendix 50

51 OPCO S BOARDS G. Colleau CEO A. Souillard CEO C. Mistou Commercial C. Mazauric Finance & Supply Chain J. Declerck Commercial JB. Letinier Finance L. Desessart Operations T. Dewavrin HR J. Hayaux Strategy O. Lurson HR P. Verhasselt Property V. Dosne Operations P. Verhasselt Property J. Fruchart Operations J. Armary Supply Chain 51