The information contained in this presentation is not an invitation to invest in the shares, or any other products or services or otherwise deal in these or enter into a contract with Kingfisher plc or any other company. The information provided should not be relied upon in connection with any investment decision. The past performance of Kingfisher plc or any other company referred to in the presentation cannot be relied upon as a guide to its future performance. The price of shares and the income derived from them can go down as well as up and investors may not recoup the amount originally invested. Certain statements made in this presentation are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward-looking statements. Factors that might cause forward-looking statements to differ materially from actual results include, among other things, legal transactional, regulatory and economic factors, as well as Kingfisher plc s ability to implement cost savings and revenue-enhancing measures. Other factors include Kingfisher plc s ability to successfully add new and planned store space and to continue to implement cost and cash controls. Subject to the Listing Rules of the UK Listing Authority, Kingfisher plc assumes no responsibility to update any of the forward-looking statements contained herein.
Patrick Langlade CEO 42
Agenda Brico Dépôt : Past and Present Brico Dépôt : Strategy and Key Business Initiatives 43
History 1993: first store opening in Reims Objectives: -To test the price elasticity of the 20/80 product range of Castorama -To tap the 83% of the market not addressed by Castorama France at that point -To develop a format complementary to Castorama France format: i.e. with a high level of differentiation After validation, rollout from 1995 onwards 44
Complementary to and differentiated from Castorama Target product offer and customer base different from Castorama PRODUCTS (% sales) CUSTOMERS 57% 49% Small contractors 29% 18% 14% 33% Heavy DIYers First price Bargain hunters Convenience Construction Renovation Home equipment Light DIY Deco / gardening Brico Dépôt Castorama Note: 12 months ending march 2002 sales for Castorama and Brico Dépôt 45
Format Characteristics Product range 15 000 sku s A robust, highly consistent business format Location Prime/secondary areas 2000-6000 m² Communication Store / Catalogue Pricing EDLP Service Volume / Price 46
Model & Organisation MODEL ORGANIZATION ORGANISATION EDLP Low cost Low capital base High return on invested capital No regional offices Highly centralised organisation Key processes - Purchasing -Supply chain -IT 47
Culture 4,000 employees Business philosophy: - Proximité - Simplicité - Sincérité Customer perception: - Pas cher - Pro - Sympa 48
Sales Growth: Performance vs. DIY market Total Sales 39% BD Current Market (Unibal) LFL Sales BD LFL Market (BdF) 34% 30% 31% 16% 14% 9% 8% 3.3% 3.4% 4.3% c5.0% 2.8% 3.7% 3.7% 4.8% 2000 2001 2002 2003 2000 2001 2002 2003 (6 months) (6 months) Note: No estimate for Unibal Market figures in 2003 49
Strong Growth Performance: Stores, Sales and Profit Operating profit*: CAGR 00-02 + 36% Sales : CAGR 00-02 + 32% 669 898 Sales excl. VAT in M Number of Brico Depot fascia stores at year end 516 34 43 53 57 2000 2001 2002 2003 * French GAAP 50
Agenda Brico Dépôt: Past and Present Brico Dépôt: Strategy and Key Business Initiatives 51
Brico Dépôt: 3 Phases of Development Phase 3 Phase 1 Market test High concept purity Competitors sceptical Phase 2 Attack the market More serious Competitor questioning Minimal organisational platform Attack the market even more Competitors seek to prevent BD expansion Put long term growth infrastructure in place (Supply chain, IT, etc.) 1993 1997 2002 2008 52
Brico Depot: Maintaining Growth Momentum in France Store Portfolio Development > 100 Expand the store base at pace 56 Maintain LFL sales growth ahead of the market 26 1999 Today Medium Term Potential Price and cost leadership in every catchment area Supported by CPR programme 53
Building the Target Supply Chain 34 stores 480 000 pallets x 1,7 x 2,5 57 stores 1 200 000 pallets 1 store Elaborate optimal order and flow mix Order Store to supplier Store to supplier Store to supplier Centre to supplier Delivery Direct from supplier Direct from supplier Cross-docking Direct from supplier Cross-docking Warehousing End of 1993 2000 2004 2008 54
Test Brico Depot in New Markets: Brico Stock in Spain Spain identified as a high potential opportunity for Brico Depot French format adjusted to local market needs. First store opened in Logroño (October 23 rd ) Further 2 openings in first half of 2004/5, more in planning Strategy: roll-out format and build market leadership within 10 years 55
2004 Growth Initiatives Store rollout LFL sales growth Supply chain and systems Spain 56
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