Results 2014 Mr Bricolage SA | Half-Year Results 2014 1 Welcome - PowerPoint PPT Presentation

INTRODUCTION Half-Year Results 2014 Mr Bricolage SA | Half-Year Results 2014 1

Welcome INTRODUCTION Jean-François BOUCHER  Chief Executive Officer Guy BEGHIN Deputy Managing Director  Éric BILHAUT  Chief Financial Officer Mr Bricolage SA | Half-Year Results 2014 2

No. 1 local DIY Group in France INTRODUCTION 886 stores at 30 June 2014  France: 818 of which 87 Directly-owned stores International: 68 in 9 countries  Belgium (43) - Bulgaria (10) - Romania (3) Macedonia (1) - Morocco (4) - Mauritius (2) - Madagascar (2) Uruguay (2) - Andorra (1) Network Online Services sales Turnover inclusive of tax 2013: € 2.3 Bn  France: 90.5 %  International: 9.5 % Affiliates Mr Bricolage SA | Half-Year Results 2014 3

The French Large DIY stores’market INTRODUCTION A first semester marked by still strong volatility Positive trend Monthly index "Large DIY stores" since the beginning of the (change in % vs n-1, in value) year but still volatile 2013 2014  Q1: + 5.0% H1 : + 1.3% 7,0  Q2: - 1.4 % 4,1 4,0 3,2 2,2 2,0 0,3 1,0 0,7 Negative trend Summer 2014 0,3  July: -6.4% -0,6  cumulative (7 months) : - 0.1% -2,4 -3,2 -3,5 -4,8 -4,3 -6,4 -10,7 -11,0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Source: Banque de France, September 2014 Mr Bricolage SA | Half-Year Results 2014 4

S1 2014 summary INTRODUCTION Consolidated turnover of € 283.0 million: + 2.2%  Network Services: +3.1%  Retail: +1.8% Operating profit of € 15.3 m : + 72.2% Operating Profit Network Services: € 21.5 m vs. € 21.2 m at H1 2013  Operating Loss Retail: € - 6.3 m vs. € -12.3 m at H1 2013  Healthy financial structure (at 30.06.14) Net Financial Debt: € 131.0 m  Gearing (1) : 52%   NFD/EBITDA: 3.0 Merger with Kingfisher 2 April: entered into exclusive negotiations  23 July: signing of a binding agreement   Operation subject to the control of the anti-trust clearances  Acquisition of controlling block of shares would follow agreement (1) Gearing : Net financial debt/ equity Mr Bricolage SA | Half-Year Results 2014 5

Summary RÉSEAUX | FINANCES | PERSPECTIVES | BOURSE Network activity 1. Consolidated half-year results 2. Outlook 2014 3. Update on the merger with Kingfisher 4. Stock Market 5. Appendices 6. Mr Bricolage SA | Half-Year Results 2014 6

1. Networks activity

Turnover of the Networks (inclusive of tax): 1.1 Bn € in 1 st Semester 2014 NETWORKS | FINANCES | OUTLOOK| STOCK A multi-brand, multi-channel offer Affiliates Online sales Change Change Number of like-for-like Turnover (inclusive of tax) in € m 30.06.14 stores total-store basis store basis Sales in stores 1 086.3 - 0.4% - 1.4% 886 +1.4% (1) of which France 979.4 - 1.1% 818 717.3 376 Mr Bricolage - 0.1% +1.5 % 117.2 137 Les Briconautes - 0.8 % +1.1 % Affiliates 144.9 305 - 0.7 % - 0.5 % of which International 106.9 +7.0 % +1.7 % 68 Online sales 10.7 n/a n/a _ Turnover of the Networks 1 097.0 - 0.4 % +1.4 % 886 (inclusive of tax) (1) Variations calculated based on all Mr.Bricolage stores, from a panel of 75 Les Briconautes stores and 22 affiliate stores Mr Bricolage SA | Half-Year Results 2014 8

Development of networks NETWORKS | FINANCES | OUTLOOK| STOCK Reminder of 2014 objectives 2014 Executions objectives 1 st semester 2014 France France   Mr Bricolage: 5 openings Mr Bricolage: 6 openings Les Briconautes: 3 openings Les Briconautes: 1 opening +4 affiliations +16 affiliations International International   2 openings: Belgium and Cyprus 1 opening: Belgium Coverage of new countries under New Master franchises signed: master franchise, without capital Côte d’Ivoire, Congo, Gabon and Senegal investment Mr Bricolage SA | Half-Year Results 2014 9

International development NETWORKS | FINANCES | OUTLOOK| STOCK International turnover: € 106.9 m , + 7.0% of total-store basis Belgium: organic and external growth Distribution by zone 43 stores of International H1 2014 T.O. Others * Turnover H1 2014: € 62.1m, + 16.9% (total-store basis) 12.8% +4.6% like-for-like store basis   1 opening and 4 acquisitions during the last 12 months Eastern Belgium 58.1 % countries 29.1 % Eastern Countries: end of restructuring 14 stores * Morocco - Mauritius - Madagascar - Uruguay - Andorra Turnover H1 2014: € 31.1m, -2.6% (total-store basis) -0.4% like-for-like store basis  Serbia : last store (franchise) closed 1 st May 2014, Mr.Bricolage no  longer has a presence in Serbia. Romania : restructuring underway  Bulgaria : organic growth confirmed (+3.4% at H1 2014)  Mr Bricolage SA | Half-Year Results 2014 10

Directly-owned stores: make the link back to operating performance NETWORKS | FINANCES | OUTLOOK| STOCK Re-prioritise business 2014 Executions objectives 1 st semester 2014 Re-prioritise business Traffic +0.4% ( like-for-like store basis )  Average basket +0.5% ( like-for-like store basis ) Increase traffic   and average basket Product mix: increase in weight of own-brand  Improved application of brand products policy and business basics 17.2% of TO: +2.1 points vs. June 2013 Reduce operating costs and non-business costs Directly-owned Turnover of Directly-owned stores   stores’ performance consistent (inclusive of tax) (1) across like-for-like store with that of the market basis + 0.9 % (1) The effect of VAT increase in 2014 is estimated at 0.5 growth points Mr Bricolage SA | Half-Year Results 2014 11

Directly-owned stores : continue with restructuring NETWORKS | FINANCES | OUTLOOK| STOCK Continue with reconfiguration of the network 2014 Executions objectives since beginning of 2014  Continuing with disposal plan  Disposal plan Disposal of 3 stores on 01/09/2014 (Sablé sur Sarthe, Mayenne, Château Gontier) Disposal to a Mr.Bricolage member of 1 store (Obernai) planned on Q4 2014  Reconfiguration of stores’network  Reconfiguration of network of stores Reducing surface area and remodelling Reducing surface area and remodelling of Colmar, 25 March of Colmar (Q1) Re-opening of Querqueville store, 9 April Querqueville re-opening after transfer Q2) Preparing transfer (Q4)  Openings of Perpignan in 2015 Opening of the Orléans store, 2 April  Openings Acquisition of a majority stake in the Hagetmau store on 1 st January Creation of city-centre store in Orléans Integration of 3 stores (IFRS 10&11) Les Herbiers, Sillé Le Guillaume (Q2) and Château du Loir Mr Bricolage SA | Half-Year Results 2014 12

Roll-out of web-to-store NETWORKS | FINANCES | OUTLOOK| STOCK 3 national websites + 239 local websites mr-bricolage.fr  23,000 items listed end June 2014 mr-bricolage.fr Le-jardin-de-catherine.com National site Local sites LJDC.fr LMDC.fr  4,100 items listed end June 2014 Home delivery La-maison-de-catherine.com Delivery points and countermark  2,000 items listed end June 2014 2H-Pick up Mr Bricolage SA | Half-Year Results 2014 13

Roll-out of web-to-store NETWORKS | FINANCES | OUTLOOK| STOCK Set up end June 2014 2014 Executions objectives 1 st semester 2014  Increasing  Traffic growth of mr-bricolage.fr online traffic 8.4 million UV accumulated end June 2014: +59 % vs H1 2013  Maximising use 3.9 M €  Turnover (excl. tax) growth mr-bricolage.fr of data Home delivery  Historic sites: redeploy sales 2H pick-up 1.7 M € and refresh websites Web-to-store Delivery point and countermark S1 2013 S1 2014 Mr Bricolage SA | Half-Year Results 2014 14

NETWORKS| FINANCES | OUTLOOK| STOCK NETWORKS| FINANCES | OUTLOOK| STOCK 2. Consolidated half-year results 15 Mr Bricolage SA | Half-Year Results 2014

Turnover H1 2014 NETWORKS| FINANCES | OUTLOOK| STOCK Sales growth of 2.2% to € 283.0 million Turnover in € , million 30.06.14 30.06.13 % variation Retail 185.9 182.7 + 1.8 % 177.9 (1) Sales from Directly-Owned Stores 174.0 + 2.3 % Online sales 8,0 8.7 - 8,2 % Network Services 97.1 94.2 + 3.1 % Sales of goods 60.1 58.0 + 3.7 % 37.0 Sales of services 36.2 + 2.1 % Total consolidated turnover excl. tax 283.0 276.9 + 2.2 % (1) Reclassification of the Les Herbiers, Château du Loir and Sillé le Guillaume stores applying the IFRS 10 and 11 rules (backdated to 1 st January) 16 Mr Bricolage SA | Half-Year Results 2014

Retail: € 185.9 million of turnover at 30/06/2014 NETWORKS| FINANCES | OUTLOOK| STOCK Directly-Owned Stores: turnover growth at H1 2014 Change like- Consolidated Change total for-like store Turnover store basis (1) basis (1) € 80.0 m Q1 2014 + 4.0 % + 1.9 % € 97.9 m Q2 2014 + 2.5 % 2.6 % (2) Total turnover H1 2014 € 177.9 m (2) + 0.4 % + 2.3 % (2) (1) 2014 vs 2013 (2) Reclassification of the Les Herbiers, Château du Loir and Sillé le Guillaume stores applying the IFRS 10 and 11 rules (backdated to 1 st January) Online sales home delivered (8.0 M € ) + stores pick up = 9.7 M € , +1.4% Of which allocated to Retail activity: 8.0 M € (- 8.2 % ) Of which allocated to Network Services activity: 1.7 M € (+53.5 % ) 17 Mr Bricolage SA | Half-Year Results 2014