REG - Kingfisher PLC - Annual Financial Report

KingfisherAnnouncement

31/03/2022 10:45

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RNS Number : 7611G  Kingfisher PLC  31 March 2022

31 March 2022

 

KINGFISHER PLC

(the "Company")

Publication of 2021/22 Annual Report and Accounts

The Company's Annual Report and Accounts for the year ended 31 January 2022
(the 'Annual Report') has today been published on the Company's website
www.kingfisher.com (http://www.kingfisher.com) .

In accordance with Listing Rule 9.6.1R of the UK Financial Conduct Authority
('FCA'), the Annual Report has been submitted to the FCA's National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)

A hard copy version of the Annual Report, along with the Notice of Annual
General Meeting 2022 (the 'AGM Notice') will be sent to those shareholders who
have elected to receive paper communications on or around 8 April 2022. The
AGM Notice will be made available to shareholders who have not elected to
receive paper communications on the same date.

The final results for the year ended 31 January 2022, released by the Company
on 22 March 2022, include the information required pursuant to Rules 4.1 and
6.3.5R of the UK Disclosure Guidance and Transparency Rules, excepting
publication of the responsibility statement of the Directors in respect of the
Annual Report, a description of the principal risks and uncertainties facing
the Company, and the related party transactions carried out by the Company and
its subsidiaries during the year, which are detailed below:

 

1.   Principal risks

The principal risks and uncertainties facing the Company are set out below.

 1. Our People
 Our colleagues are critical to the successful delivery of our 'Powered by
 Kingfisher' strategy. We have rebalanced responsibilities between Group and
 banners to set the right conditions for our individual banners to grow while
 leveraging the Group's scale and expertise to meet customer needs.

 Our accelerated investment programme requires an expansion of our technical
 capabilities. More generally, the failure to attract, retain and develop
 colleagues with the appropriate skills, capabilities and diverse backgrounds,
 or to have adequate succession plans, could impact our ability to meet our
 business objectives.

 How our risks have changed
 No change. Although recruitment has become increasingly competitive as
 economies recover, we have successfully implemented our organisational
 structure changes and have plans in place to

 address our future resource requirements.
 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Build a mobile-first and service orientated customer experience

 ·      Differentiate and grow through own exclusive brands (OEB)

 ·      Lead the industry in Responsible Business practices
 How we manage and monitor the risk
 ·      The Board has approved our Group strategy for people and culture,
 with individual priorities agreed for each banner and function.

 ·      The Group Executive and Board hold regular talent reviews focused
 on ensuring the senior leadership group has the required capabilities to
 deliver the strategy and on activities to strengthen our leadership succession
 pipeline.

 ·      We have a formal Technology Capability programme in place to
 ensure continued focus and progress on acquiring and retaining critical
 skills. A new Technology careers webpage has been launched, which has
 increased the level of traffic to our site.

 ·      We have refreshed the Employer Brand in the UK retail banners and
 are in the process of extending and aligning this across the wider Group.

 ·      We invest in tools and infrastructure to support our colleagues'
 learning, including a leadership development portal for bite-size instant
 learning and e-learning for our store teams on new products.

 ·      We have identified and agreed the key leadership requirements and
 behaviours to accelerate delivery of our strategy and target culture which we
 define as agile, inclusive and led by trust. These behaviours will become the
 cornerstone of our work on leadership hiring, talent management and leadership
 development.

 ·      Each banner has a tailored diversity and inclusion plan. Areas of
 focus are our senior leadership, creating a culture of inclusion, our customer
 proposition and learning for life. Relevant targets are linked to the
 remuneration of senior leaders.

 ·      The physical and mental wellness of our colleagues has remained a
 priority during the year through communications and the provision of external
 support (e.g. mental health awareness training for line managers). We continue
 to check in on how colleagues are feeling through our annual colleague survey.

 2. Level and Impact of Change
 Under our strategic plan 'Powered by Kingfisher', the business is utilising
 its core strengths and commercial assets, and 'powering' its distinct retail
 banners to address the significant growth opportunities that exist within the
 home improvement market. We have high ambitions and we are continuously
 improving our offer, market positions, cost base and technology. In
 particular, we are rolling out a Group-wide IT systems development programme.

 Where relevant we may also consider complementary acquisitions, partnerships
 and joint ventures to optimise our business activities and support our
 strategy.

 Failure to properly prioritise activity and manage change effectively could
 result in weaker than

 anticipated sales growth, reduced operating margins or insufficient cash being
 generated to meet

 our objectives.
 How our risks have changed
 Decreased. The planned organisational structure changes have been implemented
 and we have made significant progress on our strategic priorities.

 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Build a mobile-first, service orientated customer experience

 ·      Differentiate and grow through own exclusive brands (OEB)

 ·      Test compact store concepts and adapt our store footprint

 ·      Source and buy better, reduce our costs and same-store inventory

 ·      Lead the industry in Responsible Business practices

 ·      Expand engagement with trade customers
 How we manage and monitor the risk
 ·      Our 'Powered by Kingfisher' strategy has been clearly articulated
 to all colleagues and externally validated by a global consultancy business.

 ·      A new balanced and simpler local-group operating model has been
 implemented.

 ·      The Board has approved three-year plans for each banner and Group
 Function to deliver the strategy.

 ·      A central Results Delivery Office provides monthly reporting to
 the Group Executive and quarterly to the Board, based on a set of c.50 KPIs,
 measuring the implementation and effectiveness of strategic initiatives.

 ·      Each of our key strategic pillars is led and monitored by one of
 our banners or Global Functions, with monthly review points with the Group
 Executive sponsor.

 ·      Annual in-depth strategic review and six-monthly strategic
 performance updates performed with the Board, addressing the agreed priorities
 and making changes where appropriate.

 ·      Technology directors have been appointed in our retail banners to
 provide more local flexibility while leveraging the scale of our wider Group
 Technology organisation.

 ·      Regular communication with all colleagues on the delivery of the
 strategy, key changes being made and forthcoming business developments.

 ·      Periodic reviews of governance and enabling activities undertaken
 by Internal Audit.

 ·      We have a dedicated M&A function, with accountability resting
 with the CFO. M&A activity exceeding £10 million in value requires
 Kingfisher plc Board scrutiny and approval.

 3. Contagious Diseases
 Over the past two years, Kingfisher has demonstrated its ability to navigate
 the challenging operational impacts of the pandemic, retaining good product
 availability and operating safely. With the emergence of new more
 transmissible variants, the risk of a prolonged global health threat and
 associated government restrictions remains, which could adversely affect our
 operations and those of our partners and suppliers. This could cause a
 significant reduction in footfall and consumer spending and could negatively
 impact our ability to receive products from affected suppliers. High levels of
 absence in either our workforce or our suppliers could impact our ability to
 operate stores and warehouses, deliver products or provide appropriate
 functional support to our business.

 Such restrictions and/or reductions in demand could adversely affect our
 financial results and the financial condition of the Group.

 How our risks have changed
 No change. There has been significant progress in the rollout of vaccines and
 in medical treatments over the past year. We also have procedures in place to
 protect our colleagues and customers while continuing to trade. However,
 uncertainty still remains over new variants, and the possible

 reimposition of Covid-related restrictions.
 Link to strategic priorities
 ·      Lead the industry in Responsible Business practices
 How we manage and monitor the risk
 ·      The health and safety of our colleagues and customers remains our
 top priority, alongside supporting governments to limit the spread of the
 virus. We have maintained strict hygiene and appropriate social distancing
 measures in our stores. We significantly invested in PPE to ensure
 availability for our staff, deep cleaned stores where required and allowed
 staff to self-isolate while continuing to be paid.

 ·      We have communicated regularly to colleagues and customers,
 providing reassurance and responding to common concerns.

 ·      Our Group Crisis Committee has met at least fortnightly
 throughout the year in response to the pandemic, with representation from
 banners and functions. The Committee monitors events, changes in governments'
 approaches and response strategies. The Board provides regular oversight to
 evaluate the impact of Covid-19 on Kingfisher.

 ·      We have liaised closely with governments to ensure we can
 continue to provide home improvement while playing our role to limit
 transmission of the disease.

 ·      We have ensured that our office-based colleagues are able to work
 from home, in line with local governmental guidance, with access to
 appropriate equipment. Ongoing line manager training and mental health
 'wellness' awareness has been provided for working in this way.

 ·      We have business continuity and crisis teams in each of our
 markets, who we would mobilise in the event of any future significant
 operational impact.

 ·      If required, we are able to significantly reduce discretionary
 spend (including freezing pay reviews, delaying bonus payments and/or
 recruitment), stop all non-committed capital expenditure, reprioritise
 sourcing requirements and adjust purchasing plans.

 ·      We regularly monitor customer, colleague and stakeholder
 sentiment through social media and colleague feedback. This output influences
 the operational decisions we take.

 4. Supply Chain Resilience
 A resilient supply chain is key to our business and the achievement of our
 strategic objectives. We are dependent on complex global supply chains and
 fulfilment solutions to deliver our products to our customers. There has been
 significant disruption caused by the pandemic with congestion at ports and an
 increased demand for containers. The pandemic has also caused operational
 difficulties for our suppliers, testing their ability to respond quickly to
 changes in demand. Major disruption to our supply chain could result in
 reduced levels of product available for sale, with an adverse financial and
 reputational impact.

 How our risks have changed
 No change. There have been continued challenges to our supply chain as a
 result of the pandemic.

 However, capacity has increased and would be able to meet demand were it not
 for disruption at key points in the network.

 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Source and buy better, reduce costs and same‑store inventory

 ·      Expand engagement with trade customers

 How we manage and monitor the risk
 ·      Our Supply and Logistics three-year roadmap was updated in
 2021/22. It considers our future logistics capacity needs based upon the
 various sourcing, inventory and sales generative strategies identified in the
 Group's strategic planning activities.

 ·      Business continuity plans are updated regularly, covering our
 internal points of failure and key partner service-continuity plans. The
 actions include a response to supplier and logistics failures, and plans were
 tested live as part of our Covid response activities.

 ·      We have established partnerships with key transportation and
 logistics suppliers to align planning and secure capacity.

 ·      Since the start of the pandemic, a weekly meeting of Supply Chain
 Directors from across the Group has been held to identify and agree key
 actions to respond to the changing supply needs.

 ·      We have extended our demand forecasting to better anticipate
 future sales requirements and worked with suppliers to ensure product
 availability.

 ·      We have continued the implementation of store-based fulfilment
 for customer orders to support the business operation and the increased demand
 since the pandemic started.

 ·      We have an agreed supplier strategy which includes guidance on
 choosing which regions to source from and when to use more than one factory or
 supplier to increase resilience.

 ·      There is a robust process for selecting individual suppliers.
 This includes checks on financial strength, ethical and environmental risks
 and their ability to manufacture the products to the agreed specification.

 ·      We continually review key suppliers by category to establish
 capacity and volumes and assess the impact of an interruption in supply.

 5. Competition
 Our competitors include both traditional store-based and pureplay online
 retailers. The pandemic has accelerated changes in the market, with a sharp
 rise in the use of online marketplaces and an increase in the number of
 competitors in the home improvement market. Competitors are also developing
 their offers, including both direct-to-customer operations and the services
 offered.

 Targeted actions or disruptive behaviour by competitors could negatively
 impact our market share,

 the value of our assets and our financial results.
 How our risks have changed
 No change. Our strategy has enabled us to continue to grow our Group sales and
 profit and gain market share in the UK and France.

 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Build a mobile-first, service orientated customer experience

 ·      Differentiate and grow through own exclusive brands (OEB)

 ·      Test compact store concepts and adapt our store footprint

 ·      Source and buy better, reduce our costs and our same-store
 inventory

 ·      Expand engagement with trade customers
 How we manage and monitor the risk
 We are building a differentiated offer through:

 ·      Clear positioning for each of our banners, with different
 operating models to address diverse customer needs, such as general DIY needs,
 trade-focussed and discounters.

 ·      Centrally developing our OEB brands, with clearly defined range
 principles and customer projects to create a differentiated and compelling
 offer.

 ·      Giving greater autonomy to local banners and allowing local
 ranges, services and store formats that are tailored to customers' needs.

 ·      Competing on price by using the scale of our Group to benefit
 from volume and lower purchase prices.

 ·      Tailoring trading actions to local markets, through distinct
 customer communications (adverts, brochures), promotions and loyalty schemes
 to increase sales and brand loyalty.

 We regularly monitor our market share, our performance and that of our
 competitors, to react quickly to targeted actions via:

 ·      Comparison of price indices vs competition in our key categories
 and measure customer price perception on a regular basis.

 ·      Customer trend monitoring in all our markets to anticipate and
 develop an appropriate offer.

 ·      Monitoring Net Promotor Scores (NPS) scores, with targets to
 improve the customer experience and satisfaction.

 6. Changing Customer Preferences
 The pace of change remains high, with a greater use of e-commerce solutions
 for click & collect and home delivery. To make our products available to
 customers where and when they want it, we have accelerated our investment
 programme. This ensures we have innovative digital channels supported by an
 agile and reliable infrastructure, including technology and logistics
 capability, and an optimised property portfolio with in-store services.

 Failure to identify new trends and optimise our channels quickly enough could
 affect our ability to stimulate spend and adversely impact the value of our
 assets and our financial results.

 How our risks have changed
 No change. The increased autonomy of the banners in our new commercial
 operating model allows them to more quickly identify and react to changes in
 customer trends. However, a significant risk

 remains that we are not able to deliver the required changes quickly enough or
 that the changes are not sufficiently compelling for our customers.

 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Build a mobile-first, service orientated customer experience

 ·      Test compact store concepts and adapt our store footprint

 ·      Lead the industry in Responsible Business practices

 ·      Expand engagement with trade customers
 How we manage and monitor the risk
 ·      A Group digital strategy has been developed and approved by the
 Board, with various priority programmes underway.

 ·      Our Customer & Market Intelligence team continuously monitors
 and gathers insights, which is regularly shared with the Group Executive, the
 Board and the wider business. We also have teams focused on customer data and
 digital experience, so that we can better understand the behaviour of our
 customers and provide them with personalised omnichannel experiences.

 ·      We have an established Technology Product Council, meeting on a
 quarterly basis, to monitor financial and project portfolio performance and to
 prioritise upcoming digital initiatives.

 ·      We have launched strategic programmes to grow e-commerce,
 focusing on putting stores at the centre of our fulfilment model. We have
 implemented a digital hub model to improve speed of delivery. Drive through
 pick-ups are now in all medium and big stores in France and Poland and lockers
 have been rolled out to all Castorama Poland stores.

 ·      We are continuing to invest in developing our mobile consumer
 apps so that they can be used in our stores for self-service ordering and
 payment.

 ·      We have also improved the customer proposition by broadening the
 services we provide. This includes technology driven services to improve the
 experience of buying online and making DIY projects more affordable.

 ·      We have expanded the range of do-it-for-me services available to
 customers to help them complete projects, including rolling out our NeedHelp
 proposition in the UK and Poland. NeedHelp is the leading European home
 improvement services marketplace.

 ·      We have continued to test and develop our understanding of
 compact store formats and concessions, with additional openings in the UK,
 France and Poland. We now have 25 stores across four banners, providing us
 with strong learnings for our future blueprint.

 ·      We continue to review the best options to further expand product
 choice, including our recently launched e-commerce marketplace proposition.

 ·      To our focus on speed and convenience for customers, Screwfix has
 launched 'Sprint', offering deliveries direct to site within one hour for a
 third of UK postcodes.

 7. Political and Market Volatility
 Kingfisher operates in eight countries across Europe and relies on a global
 supply base, exposing us to both geopolitical uncertainty and local
 volatility. Disruption could include government restrictions on mobility,
 strikes, work stoppages and/or our ability to receive products from affected
 countries. Market volatility has increased since the pandemic began, resulting
 in changing customer behaviours and reduced consumer confidence. If
 governments try to reduce their budget deficits through taxation, this will
 create additional burdens on businesses. These impacts could potentially
 disrupt the day-to-day operations of our business and our ability to meet our
 strategic objectives.

 How our risks have changed
 Increased. We have seen increased economic volatility across all our markets,
 with higher material,

 energy and labour costs driving higher inflation. A continued conflict in
 Eastern Europe would negatively impact energy and commodity prices and could
 limit the availability of certain raw materials.

 Link to strategic priorities
 ·      Source and buy better, reduce costs and same-store inventory

 How we manage and monitor the risk
 Monitoring and engagement activities

 ·      Our Corporate Affairs team actively monitors the political and
 economic situations in the countries in which we operate or which may impact
 our operations. This is supported by membership of key business trade
 associations in every market.

 ·      Strategies are in place to identify, monitor and influence
 changes to legislation that may impact our business.

 ·      Crisis management processes and teams are in place to monitor and
 manage situations as they arise.

 ·      Our global buying offices and supply chain teams are focussed on
 ensuring we maintain appropriate levels of product availability through
 periods of disruption.

 Mitigation activities

 ·      We have strong and distinct banners, with each able to set the
 right product offer and pricing to meet our customers' appetite for spending.

 ·      We have banner and Group sourcing offices focused on securing
 competitively priced supplies.

 ·      The Group has access to significant committed liquidity
 facilities and debt funding, through drawn term loans and the ability to issue
 debt into the capital markets through its European Medium-Term Note (EMTN)
 programme.

 ·      Cash holdings are diversified across a number of financial
 institutions (for which credit risk is closely monitored).

 ·      We have an appropriate and prudent mix of hedging policies, cash
 deposits and debt financing to minimise the impact of foreign exchange
 currency volatility on the company.

 ·      We are continually investing to reduce our energy usage and
 increase our efficiency. Our Group Hedging policy reduces our exposure to
 energy price fluctuations and provides regular reporting for oversight.

 8. Legal and Regulatory
 The Group's operations are subject to a broad range of regulatory requirements
 in the markets in which it operates. A major corporate issue or crisis, a
 significant fraud or material non-compliance

 with legislative or regulatory requirements would impact our brands and
 reputation, could expose us to significant fines or penalties and would
 require significant management attention.

 How our risks have changed
 No change.
 Link to strategic priorities
 ·      Source and buy better, reduce our costs and same-store inventory

 ·      Lead the industry in Responsible Business practices
 How we manage and monitor the risk
 Policies and procedures:

 ·      Policies and procedures are in place, clearly stating our
 expectation to carry out our business fairly and with complete integrity.

 ·      Our Goods Not For Resale Vendor Engagement Assessment tool
 increases the level of supplier due diligence covering business integrity,
 data protection and information security.

 ·      A new whistleblowing policy and hotline, facilitated by an
 independent third party, were put in place throughout the Group in FY21/22,
 with a communications campaign to raise awareness. Champions in all banners
 received training to ensure that all calls are followed up and investigated
 appropriately.

 Training and communication:

 ·      Revised Group-wide mandatory compliance training was rolled out
 and delivered in 2021, with two modules for all colleagues (Code of Conduct,
 including anti-bribery and corruption, and GDPR) and two for head-office staff
 (Fair Competition & Market Abuse Regulation). Refresher training modules
 were launched in January 2022 to be completed by all colleagues.

 Oversight and reporting:

 ·      Our Legal & Compliance network is well established, for teams
 at Group and banners to work and communicate together.

 ·      The Group Ethics and Compliance Committee (GECC) ensures that the
 Group approach to ethics and compliance is adequate and effective. This
 includes approving compliance training and reviewing the outcomes of
 investigations. Local Ethics and Compliance Committees have been implemented
 in all banners to ensure a consistent approach across the Group.

 ·      We have a Disclosure Committee in place to address our Market
 Abuse Regulation requirements.

 ·      Whistleblowing statistics and trends are monitored in the local
 Ethics and Compliance Committees and reported to the GECC, Audit Committee and
 Board annually.

 9. Cyber and Data Security
 Cyber-attacks and security incidents continue to increase and the retail
 sector has joined a number of industry sectors as a target due to it becoming
 more data driven. As we increase our digital presence and develop smart
 products and services our risk profile will continue to change.

 Failure to protect data, detect breaches, and respond accordingly would
 negatively impact our operations, profitability and reputation.

 How our risks have changed
 Increased. Alongside a continued acceleration in digital growth, there has
 been a growing number of organisations affected over the past year, with a
 wider availability of tools and techniques available to cause serious
 disruption.

 Link to strategic priorities
 ·      Grow e-commerce sales

 ·      Build a mobile-first, service orientated customer experience
 How we manage and monitor the risk
 ·      Cyber security continues to receive Group Executive-level
 sponsorship and Board focus.

 ·      Cyber security is an integral part of the IT strategy with a
 clear three-year plan supporting the strategic priorities and will continue to
 develop and evolve our capabilities to manage new threats.

 ·      An independent maturity assessment has been completed and results
 incorporated into the 3-year plan. There will be a continuous independent
 assurance schedule to ensure we meet target maturity.

 ·      We regularly review the cyber threats facing Kingfisher and work
 with security partners to evaluate and implement appropriate controls.

 ·      All technology development goes through a 'Secure by Design'
 process to ensure solutions and data are secure and adhere to compliance and
 regulation requirements.

 ·      We perform security assurance of third parties that process our
 data across all functions and banners.

 ·      We have a continuous programme to enhance our protective and
 defensive capabilities.

 ·      There is a robust major incident management process and we
 maintain a third-party retainer for incident response, breach and forensic
 expertise.

 10. Reputation and Trust
 Our customers, colleagues, suppliers, investors and the communities we source
 from and operate expect us to conduct our business in a way that is
 responsible. One of the many ways we strive to ensure this is through our
 publicly communicated Responsible Business strategy and targets, covering
 topics such as climate change, responsible sourcing and diversity (for further
 details please refer to Responsible Business on pages 23 to 29).

 Failure to deliver on our obligations and commitments could undermine trust in
 Kingfisher, damage our reputation and impact our ability to meet our strategic
 objectives.

 How our risks have changed
 No change. The level of scrutiny and expectations from our stakeholders
 remains high, particularly around our response to Covid-19 and the
 environment.

 Link to strategic priorities
 ·      Lead the industry in Responsible Business practices
 How we manage and monitor the risk
 Governance:

 ·      Our Code of Conduct establishes the core behaviours we expect of
 ourselves and others, including our suppliers.

 ·      The Responsible Business Committee leads and oversees the
 delivery of the responsible business strategy. It is chaired by a
 non-executive director and includes the Chief Executive Officer.

 ·      Our approved science-based carbon reduction targets ensure we
 have a short-term plan to 2025 decarbonise our full supply chain including
 moving our property portfolio to renewable energy, lower carbon transport
 solutions and editing our product ranges to offer customers the most energy
 and water efficient products.

 ·      Our annual reward measures help to ensure that environment,
 social and governance (ESG) issues and stakeholder concerns are further
 prioritised.

 Stakeholder dialogue:

 ·      Monitoring of external stakeholders' views of our company through
 traditional and digital media for all our companies.

 ·      For colleagues, we have forums and works' councils in all of our
 businesses, including a collective forum that meets with the CEO and members
 of the Board.

 ·      Externally, we have regular engagement with a range of NGO
 partners in our key markets, which helps to ensure that the company remains
 close to social and environmental concerns.

 Due diligence and external assurance:

 ·      Our due diligence of suppliers covers a range of ESG issues, from
 environment to modern slavery; and includes our policy framework and supplier
 standards, which we expect suppliers to adhere to; supplier training and
 capacity building; and auditing of high-risk suppliers.

 ·      Our due diligence extends to the data we disclose. Selected ESG
 data in the annual Responsible Business Report and Modern Slavery Statement is
 independently audited by DNV.

 ·      Independent ratings agencies also monitor and rate our ESG
 performance throughout the year, including MSCI, CDP, Sustainalytics and ISS
 ESG.

 

2.   Related party transactions

During the year, the Group carried out a number of transactions with related
parties in the normal course of business and on an arm's length basis. The
names of the related parties, the nature of these transactions and their total
value are shown below:

                                                                             2021/22             2020/21
 £millions                                                                   Income  Receivable  Income  Receivable
 Transactions with Koçtaş Yapi Marketleri Ticaret A.S. in which the Group
 holds a 50% interest

 Commission and other income

                                                                             0.2     -           0.2     -
 Transactions with Crealfi S.A. in which the Group holds a 49% interest

 Provision of employee services

 Commission and other income                                                 0.2     -           0.2     -

                                                                             4.9     0.1         4.8     0.2
 Transactions with Kingfisher Pension Scheme

 Provision of administrative services

                                                                             0.8     0.3         0.7     0.3

 

Services are usually negotiated with related parties on a cost-plus basis.
Goods are sold or bought on the basis of the price lists in force with
non-related parties.

The remuneration of key management personnel is given in note 9 of the Annual
Report.

Other transactions with the Kingfisher Pension Scheme are detailed in note 28
of the Annual Report.

3.   Directors' Responsibility Statement

The Directors confirm that to the best of their knowledge:

·      The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the parent
company and the undertakings included in the consolidation taken as a whole.

·      The Strategic report includes a fair review of the development
and performance of the business and the position of the company and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties they face.

·      The Annual Report and financial statements, taken as a whole, are
fair, balanced, and understandable and provide the information necessary for
shareholders to assess the company's position, performance, business model and
strategy.

 

Chloe Barry, Group Company Secretary

Tel: +44 (0) 77688 06248

Kingfisher plc

3 Sheldon Square, London W2 6PX

 

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