Kingfisher 2017 interim results
5 year transformation continues at pace
Significant step up in level of transformation activity in H1, as planned
H1 group results reflect
o c.2% LFL impact from business disruption, albeit with an overall improving trend, and continued weaker sales in France, offset by
o continued solid growth at Screwfix and Poland, and self-help initiatives, including £10m Goods Not for Resale* (GNFR) benefits
Acting on root causes of business disruption, continue to adapt our approach e.g.
o re-phasing rollout of unified IT platform prioritising larger OpCos to start H2 17/18 instead of FY 18/19 and enabling earlier launch of stronger digital offer
o smoothing roll out of unified cost of goods sold for next 2 years whilst maintaining 90% target for FY 20/21
Plans in place to support overall FY 17/18 performance
o remain comfortable with FY consensus underlying EPS expectations (1), though remain cautious on H2 backdrop
Transformation is being delivered, confident in benefits it will generate
For the second year in a row, on track to deliver strategic milestones
o Unified & unique offer: positive early customer reaction to new ranges, now at 16% unified cost of goods sold, cost price reduction (CPR) and cost of change in line with expectations
o Digital: unified IT platform now in all Castorama France stores with back office underway
o Operational efficiency: encouraging delivery of GNFR benefits, FY 17/18 guidance now c.£25m (up from c.£20m previously)
Delivering shareholder returns
Returned £359m of cash to shareholders year to date
o £159m via ordinary dividend
o £200m via share buyback (completed £400m of the c.£600m, next tranche of up to £60m to commence shortly)
