Insightdiy Intelligence and Insight for the DIY Industry

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1 TRADE PROFILE PLC is the UK s largest home improvement and garden retailer with 20,519 employees and 355 stores; 29 of which were acquired from administrators following the demise of Focus DIY in At nearly twice the size of its nearest competitor, s stores offer around 40,000 home improvement and garden products for three main customer groups: the everyday DIY-er; the project initiator and the trade professional, served by the TradePoint brand. The re ailer is ar o i fisher P uro e s lar es ho e improvement retail group and the third largest in the world, with annual sales of over 11 billion. It operates nearly 1,200 stores in ten uro ea cou ries u der he ollo i re ail bra ds rico as ora a oc as a 0 oi e ure i Tur e a d cre fi Contact Information: PLC rela d ead fice House hes u e ue ha dler s ord as lei h Hampshire Tel: Web: rade- oi co Key Personnel: ro i ue aur i fisher rou Karen Witts - i fisher rou hie i a cial ficer r a Taa e i u - i fisher hie er u l hai fice il a so i fisher hie Peo le ficer e e ille - hie i i al T ficer Michael oe e - UK & Ireland, Helena Feltham - UK & Ireland, HR Director a id o her - UK & Ireland, o is ics a d T irec or a ia Mc lou hli - UK & Ireland, Retail Director

2 Trading Strategy ece ber 201 ero i ue aur - head o i fisher s as ora a chai - as a oi ed o i fisher succeedi ir a heshire ho s e ed do a er 1 ears i h he busi ess a d se e a he hel s she has bee as ed i h e a di he co a s o li e o era io s e a di cre fi a d rico i o e ar e s such as er a a d o erseei he la ed i ro e e o i fisher s T s s e s earl 201 a i -de h re ie o i fisher s busi ess a d s ra e co cluded ha i as correc o ocus o he uro ea ho e i ro e e ar e a d ha si ifica be efi s could be achie ed ro de elo i a ore co o unique and effective offer, as well as by unifying activities and standardising processes. The review also noted that there is o o e clear i i or a or cha el i he ar e ee fi ure 1 or ore de ails Figure 1 e ie fi di s aur said o he re ie is clear o e ha e eed o or a ise oursel es er di ere l o u loc our o e ial ubse ue l i March 201 he i fisher leadershi ea a ou ced i fisher a la ha i ho es ill le era e he scale o he busi ess b beco i a si le u ified co a here cus o er eeds co e firs

3 Trading Strategy Continued... Trading Stragegy i fisher s uidi ri ci les 1 us o er needs co e firs 2 rea e a unique and leading offer 3. a e roduc s across uro e rese ed o cus o ers in the same way 4. i i ed number of formats and omnichannel everywhere 5. o cost always 6. One company culture i fisher s a ed ha or o he ro ra e ould be di ided i o he ollo i e areas 1) Customer and Offer: er hi ill be based o our dee o led e o cus o er eeds a d cus o ers shopping journey. Of a total of 393,000 products sold across he co a as o March 201 o l 000 roduc s re rese i o sales are curre l sold i a least two operating companies. Of the 393,000 products, a lar e ro or io rela e o delis ed a d e - ro o io al ra es hich do o or ar o e is i re ail la o ra s e o d his dri e b he o led e ha cus o er needs are more similar than different across geographies, planogram product ranges can be more similar in all our ar e s across uro e 2) Formats/Channels: Our goal is to present the same roduc s o cus o ers across uro e i he sa e a u der a si lified odel This ill dri e o era io al e ficie cies hils reco isi ha cus o er eeds are e ol i uic l so e eed o ada o his as cha i re ail e iro e ur e is i cha els ill be a a ed u der hree or a s i o Mediu o a d Omnichannel, and each will be standardised across all of our ar e s 3) Infrastructure & Processes: Unifying our processes a d i ras ruc ure ill o o l dri e o era i e ficie cies bu ill also a e us a si ler a d ore a ile or a isa io 4) People: To drive through these changes we have announced today a new leadership team and the need to move to a wider reorganisation of the structure of our ea s i order o u loc he real o e ial o i fisher

4 Trading Strategy Continued... c ober 201 si o hs a er he re ie fi di s ere a ou ced ero i ue aur a ou ced her firs shar decisio s rela ed o he i fisher ro ra e e of the most notable was the decision to close 60 s ores reduci oors ace b 1 see ores a d lo ees or ore de ails Other decisions applicable to the wider group included la s o close he e loss- a i s ores i uro e he de elo e o u ified arde a d ba hroo busi esses he ilo o a co a - ide P T la or i rela d a la o cu he e is i roduc ail a d he s ar o a i o re i alisa io ro ra e across uro e It was also revealed that a new, international leadership team with more focused cross-company roles had been es ablished o hel crea e a si le u ified co a Prior o he lau ch o he i fisher ro ra e all rou co a ies had bee ar ici a i i a our- ear la called rea i he eader he ur ose o hich as o a e i easier or cus o ers o ha e be er ore sus ai able ho es i fisher clai ed i ould har ess our ho e i ro e e e erie ce our heritage as a leader in sustainability and our international scale and sourcing capability to bring new, more sustainable and more affordable products o ar e also ro idi our cus o ers i h ro ec advice and new shopping channels to complement our s ores e ill a e i easier or he o ada their homes to their evolving needs. Our shorthand for describi his ur ose is e er o es e er i es ebsi e a d lic ollec s ecommerce website was relaunched in October 2014 following a 60 million investment to enable the retailer to offer its best ever online shopping e erie ce The si e o ers o er roduc s a d a rac s o er illio isi ors a ee i h o er hal accessing the site via a mobile device. At the same time as the relaunch, upgraded the eser e ollec ser ice o lic Pa ollec o eri o er roduc s or e da collec io was reported that plans to reinvent the warehouse store by rationalising its offer and introducing same-day clic -a d-collec i hi o ears or er Kevin O Byrne said the company is focused on a great clic -a d-collec o er because e eed o raise our a e a d e brace he cha es di i al is bri i Technology c ober 201 i fisher co fir ed ha he ilo o i s e u ified asier T la or as ro ressi ell and was live in seven Ireland stores. An investor presentation from October 2015 states that the new technology enables staff to provide improved customer ser ice as he i e s e o rou i e as s is reduced a d cus o ers be efi ro bei able o sho order a d a using any device, anywhere, at any time. The platform will be rolled out across the UK during 2016 and it is estimated that the entire group will be using the new platform by fi a cial ear e d In support of the 2014 online investment also updated he i -s ore e erie ce a d i roduced a e so are ro ra e called aces hich i clai s has reduced he i e eeded o la a e i che ro o hours to four minutes. is thought to be considering adapting the technology for use with other ranges, such as bathrooms. The introduction of this technological innovation to he i che s de ar e ca e as co i ed o i hdra i ro o- o rici o i che ra es r e said: It is challenging but we have to hold our nerve and de o e ill co e o hose sales The re ailer i h

5 Trading Strategy Continued... he heal hies a d as es - ro i busi ess is ea a d i does o do o- o rici has also u da ed he ai -bu i e erie ce ia i s e clusi e ar ershi i h als ar a ai bra d als ar s colour- a chi ech olo or s i h al os a coloured i e a d a bes o e ai colour ca be i ed i hi i u es ll he de ails ca be s ored i hi a database that can be accessed at any store. Stores & Employees operates 355 stores across the UK and Ireland, covering 2,540,000 m 2 o re ail selli s ace as a 1s u us 201 The re ailer is curre l u der oi a si ifica eriod of change, not least with its management team. In June 201 i as a ou ced ha Michael oe e ould be a i o he role o rela d re laci e i r e i ce he roll ou o he e a a e e structure, several other directors have also left the busi ess i cludi arre lac hurs co ercial hris Moss cus o er a d ar e i a d u ccles March 2016 i as re or ed ha he i fisher leadership team had been restructured after two of the three operations directors left the business. It is understood ha llai ouillard o era io s direc or or ediu bo has re ired a d u olleau o era io s direc or or bi bo has le i hou a o her osi io o o o The hird e ber o he ea e e ille has re ai ed his role as chie di i al a d T o ficer bu is o lo er o era io s direc or o o icha el i fisher has e o co e on the changes. Year ore u bers lo ee u bers , , o e ber , ,519 ur her de ails o i fisher a d s lo er er s ra e are e ec ed i March 2016 he he busi ess u eils reli i ar resul s or he fi a cial year. arious i i ia i es ha e bee i roduced i cludi s ore rie dl deli eries hich a e i uic er a d easier or s ore s a o re le ish as ell as roller chec ou s hich i ro e cus o er e erie ce as ell as sca i a d database accuracy. rece fili s i h o a ies ouse s a ed ha i is continuing to invest in design and layout of stores as well as ensuring they stock the latest products that customers want to buy, regarding the investment as integral to the continuing success of the business and helping ensure it provides customers with a store they like to shop in.

6 Stores & Employees Continued... ore closures co ersio s a d sell-o s On the 31st March 2015, announced plans to cut oors ace across he s ore e or b arou d 1 This rocess ill a e lace o er o ears a d ill see he closure o a ro i a el 60 s ores a d he ri h -si i o arou d si s s a es ha closures are bei prioritised by the most over-spaced catchments in order to retain customers and sales. anticipates that it will a rac e ce io al char es o circa 0 illio as a resul of the closures, mainly from onerous lease provisions. Although the store closures were announced under ero i ue aur s leadershi la s o reduce s oors ace are o e ac i e e ber 2012 ir a heshire co fir ed ha had e bar ed o a la o ri h si e i s s ore es a e i order o re ai co e i i e in an increasingly multi-channel world. A property review was understood to have revealed that as multi-channel sales grow, the optimum store size would drop to s ro he a era e s heshire said e re loo i er care ull a e er oo o s ace a d could suble or e i so e In 2013 it was revealed that had agreed to share s ore s ace i h su er ar e chai s Morriso s a d a se eral si es as also co fir ed ha ai sbur s a d e eral ercha dise re ailer The a e ere o a e o a u ber o si es i heir e ire e eral - Morrisons tie-ups were approved during 2014, including a ber rid e a d or ich al hou h a ro al as de ied or a u ber o s ores i cludi ich a d u o Redundancies At this stage it is unclear how many people will be made redundant as a result of the 60 store closures announced in March Further information may be available when i fisher ublishes i s reli ar resul s i March 2016 u us 201 i as re ealed ha a ro i a el 1 0 store staff had been made redundant following a store a a e e res ruc ure oc a d ser ice a a er roles across he s ore e or ere ade redu da a d a e role e u Ma a er crea ed said he e s ruc ure as o ee a u ber o busi ess eeds and having the best management structure in place to deliver the best service for our customers, and reducing he a be ee a a e e a d he cus o er Around a year before, in October 2012, announced that 220 jobs were to be made redundant as part of a head o fice reor a isa io a s a e e he co a said A very different approach to creating this new or a isa io s ruc ure has a e lace o er he las few months and everyone in the team has been involved in this approach to create a more customer focused, agile, omni channel retailer. The new structure includes many new and different roles and cha es o a s o or i o e sure ha is building sustainable jobs for the future and planning for growth. As a result of the new structure, 100 new head o fice roles are bei crea ed bu here ill be 220 redu da cies hi a ece ber 201 i fisher a ou ced ha i as o sell a co rolli 0 s a e i hi a o u ei oldi s rou o e o hi a s lar es re ail chai s less ha a ear a er co fir i i as loo i or a s ra e ic partner. The deal was completed in April 2015 for a total cash consideration of 140 million. Wumei Holdings o era es arou d 6 0 su er ar e s a d 10 de ar e s ores ero i ue aur said I am delighted to have found a strong retail partner ho ill hel us o release he fi a cial alue o our busi ess i hi a This ill e able us o ocus our fi a cial resources a d a a e e ale o he lar e a d a rac i e uro ea ho e i ro e e ar e

7 Financials i fisher curre l se e s i s busi ess i o rela d ra ce a d her er a io al a d does o se ara e ou i o a se ara e fi a cial re or i e i The ollo i fi ures ere sourced ro o a ies ouse fili s a d rela e solel o Plc co a u ber 00 P Year Turnover m era i Profi m Pre- a Profi m ro h o es Year ended 29th January Year ended 28th January Year ended 2nd February , Year ended 1st February , Year ended 31st January 2015 NB 2013 was a 53 week reporting period or he ear e ded 1s a uar 201 P s o al sales i creased b illio o 66 illio re rese i a 1 rise i li e- or-li e sales attributed this progress to several factors including reenergising the business through lower prices; simplifying in-store messages, and an increase in customer ra sac io s as a resul o ar e ed ar e i i fisher es i a es ha duri he re or i eriod he ar e or he s leadi ho e i ro e e re ailers rose b This as a ribu ed o a s ro er eco o ic climate and a more buoyant housing and construction ar e as ell as be er ea her co di io s co ared i h he re ious ear o e ha his fi ure i cor ora es da a a d i fisher s es i a es or he e airs Mai e a ce a d ro e e ar e is o a cash basis and is adjusted for discounts. i as co fir ed ha he rish i h our had a ro ed he e a i er s rescue la hich ea ured a 2 illio i es e ro are co a i fisher l i a el o l o e s ore as closed a i he or olio o ei h and 640 jobs were secured. ul 201 i fisher co fir ed ha i as la i o close i s el as a d o do derr s ores b he e d o he fi a cial ear e e ber 201 issued a statement advising that it proposed to move its business to our s ore loca io s i or her rela d b a uar 201 i h he closure o fi e s ores ece fi ures o e ber 201 sho ed ha losses a he busi ess i rela d had i creased si old o 1 i i s las fi a cial ear des i e ur o er cli bi sli h l o ross rofi is u ders ood o ha e i creased b 0 o illio i h ross rofi erce a e decreasi b 0 basis oi s ollo i rice i es e ac i i i fisher issues radi u da es o a uar erl basis bu P s e ull se o accou s are due o be filed i July Ireland In January 2013 Ireland sought the appointment of a e a i er i a e or o sa e he busi ess hich had bee os i si ifica losses due o he de eriora i economy and unsustainable rental costs. In May 2013

8 Latest Trading Update Tradi u da e or he 1 ee s e ded 31st October 2015 uri i fisher s o al sales i he rela d ere u i co s a curre c 6 o 1 20 illio re ec i a s ro er eco o e ail rofi s ere u 1 1 o 0 illio ross ar i s ere do b 120 basis oi s re ec i i e ec s ro s ro ro h i cre fi a d hi her sales o seaso al categories in. This was however offset by on-going cost initiatives at and the strong overall performance a cre fi rela d s o al sales ere u 1 2 i co s a curre c 2 o 1 illio ales o ou door seaso al a d buildi roduc s ere u b 6 ales o i door roduc s e cludi sho roo i che s ba hroo s a d bedroo s ere u b 1 ales o sho roo roduc s i creased b 0 ro i ue aur hie ecu i e ficer said Q3 trading conditions have followed a similar trend to he firs hal o he ear re ec i he ore e coura i acroeco o ic bac dro i he o se b a so er ar e i ra ce he ea i e e co i ue o a e ood ro ress i h our i fisher la The u ified T s s e a e e abler o his our e co i ues o ro ress ell addi io e ha e secured a ur her fi e a ree e s o he s ores alread la ed or closure a i the total to 31. I am very encouraged by development or o he firs a e o he u ified core esse ial ra es hich ill la d i s ores ro e ear e o loo or ard o u da i ou o he de ail o our lo er s ra e i earl 2016 (Issued 24th November 2015) i fisher is e ec ed o ublish reli i ar accou s or he fi a cial ear o 2 h March 2016

9 Latest News 7th March Ex boss accuses Kingfisher of arrogance 4th March 2016 Kingfisher restructures leadership team 26th February 2016 takes the lead with supplier payments 23rd February outsources CRM activity for the first time Insightdiy NEWSLETTERS Keep up to date with the latest and Kingfisher news by visiting the retailer pages on and signing up to the Insight DIY newsletter. 23rd February Kingfisher CEO among retail bosses against British EU exit 18th February 2016 to close Motherwell store 5th February to increase basic pay and cut Sunday/Bank Holiday premium si h e ail rou i i ed si h e ail rou i i ed e e s Place us o oad o do 1 T o a e is ra io 2 T o Disclaimer: At the time that this profile was created, all information provided was true and correct to the best of our knowledge. We accept no responsibility for changes to these details without our knowledge or due to circumstances beyond our control. We will use our best endeavours to provide up to date information as required and within a reasonable timescale. This profile and the website Insight DIY is operated by Insight Retail Group Ltd.