3rd Quarter Trading Update

Kingfisher PLC 30 November 2006 EMBARGOED UNTIL 0700 HOURS Thursday 30 November 2006 Kingfisher plc Q3 trading update for the 13 weeks ended 28 October 2006 Group Financial Summary Retail Sales (1) % Total % LFL Retail Profit (2) % Total 2006/07 2005/06 Change Change 2006/07 2005/06 Change £m £m (Reported) £m £m (Reported) UK 1,049 1,024 2.4% - 51 53 (3.6)% France 798 736 8.5% 1.5% 77 77 - Rest of Europe (3) 281 220 27.4% 8.9% 41 30 39.9% Asia (4) 116 88 31.8% 17.3% 4 (3) n/a Total 2,244 2,068 8.5% 2.3% 173 157 10.5% (1) Joint Venture (JV) and Associate sales are not consolidated. (2) Retail profit is stated before central costs, exceptional items, acquisition intangibles amortisation and share of joint venture and associate interest and tax. (3) Rest of Europe includes Castorama Poland, Castorama Italy, Brico Depot Spain, B&Q Ireland, Castorama Russia, Koctas JV in Turkey and Hornbach in Germany. (4) Asia includes B&Q China, B&Q Home South Korea and B&Q Taiwan JV. • Group total sales up 8.5%, retail profit up 10.5%; • B&Q total sales up 0.2% (LFL down 1.1%) in weak UK market; • B&Q new format Warehouse stores trading well, with eight more revamps currently underway and around 25 more expected next year; • French businesses grew market share, total sales up 8.5% (LFL +1.5%); • Rest of Europe continued to grow strongly; • Asia returned to profit following integration of 2005 acquisition in China; • Kingfisher's 700th store opened; • Net debt at 28 October 2006 of £1,097 million (28 January 2006: £1,355 million). Gerry Murphy, Group Chief Executive, said: 'Kingfisher delivered solid overall sales and retail profit growth in the third quarter with strong performances from our international businesses. In a UK home improvement market which continues to be weak and price sensitive, B&Q remains on course with its programme, announced last year, of improving its offer and updating its stores.' UK For the 13 weeks ended 28 October 2006 Retail Sales £m % Total % LFL Retail Profit £m % Total Change Change Change 2006/7 2005/6 2006/7 2005/6 UK(1) 1,049.2 1,024.5 2.4% - 51.4 53.3 (3.6)% (1) UK includes B&Q in the UK, Screwfix Direct and Trade Depot. UK Retail Market - According to the British Retail Consortium, sales of non-food products in the UK grew by 4.7% in the third quarter (+1.9% LFL). However, the home improvement market continued to be weaker, declining slightly compared to last year*. Sales to the trade sector continued to fare better. *Market data from GfK for the major store home improvement operators B&Q total sales increased 0.2% to £954.6 million (-1.1% LFL). Sales were generally soft with heating impacted by unusually mild weather. Targeted promotional activity helped drive decorative and building categories. Gross margin rate improved slightly, benefiting from less clearance and general discount activity compared to last year, largely offset by a continuing programme of targeted promotions and last year's 'EDLP' price reductions which did not fully annualise until late in the quarter. Retail profit was £46.6 million (2005/06: £50.3 million). Cost savings across the business held overall cost growth to 2% in the quarter. Full year costs are still expected to increase by 5%, reflecting the costs of an additional week's trading (2006/07 is a 53 week reporting period), the current phase of eight Warehouse revamps and expected normalisation of staff bonus, all of which impact the fourth quarter. Development programme update Progress continued with the action programme launched last year. 'Service Squads' are now in operation in 240 stores and the enhanced service model, being trialled in six stores at the half year, will be extended to 30 stores by the year end. Major range reviews continued, including flooring, radiators, heating and Xmas categories. The 'Energy Efficiency Made Easy at B&Q' campaign started in October showcasing new wind turbines, solar panels, lightweight loft insulation and plug-in energy trackers to help customers reduce household carbon emissions. Results from the three new format Warehouse stores (Wednesbury, Gillingham and Cribbs Causeway) continue to be encouraging. A further eight revamps are now well under way and B&Q is planning around 25 next year, of which the next phase of eight will start during the first quarter of 2007/08. As previously indicated, each revamp project is expected to require around £2.5 million capital expenditure, £0.5 million increased stock and an average net disruption and re-launch cost of around £1 million per project. Four Supercentres were converted to the mini-Warehouse format and one Warehouse store was downsized. B&Q now has 115 Warehouse stores, 110 mini-Warehouses and 99 of the original Supercentres. One more mini-Warehouse conversion is planned in the fourth quarter. UK TRADE Screwfix Direct sales grew 27.2% to £91.4 million (+12.8% LFL), with customer numbers and average order values ahead of last year, supported by an expanded catalogue and promotional activity. New ranges of bathroom suites and fixings performed well. Retail profit increased 38.3% to £6.5 million, driven by strong sales growth and fulfilment efficiency gains. The Screwfix Trade Counter roll-out programme continues on track: 11 opened in the quarter taking the total to 30 with seven more planned for the fourth quarter. Trials of the new Trade Depot format continued with the opening of a new store in Swansea taking the total trading to four. FRANCE For the 13 weeks ended 28 October 2006 Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change France 798.3 735.6 8.5% 9.8% 1.5% Retail profit £m 2006/07 2005/06 % Change % Change (Reported) (Constant) France 76.6 76.6 - 0.7% 2006/07 £1 =1.4642 euro 2005/06 £1 = 1.4639 euro All percentage increases below are in constant currencies. French Retail Market - Comparable French DIY store sales grew 2.5% in the three months to October*. Kingfisher continued to grow market share with comparable stores sales growth of 3.3% (+1.5% LFL), despite continuing competitive pressure and management focus on the major systems development at Brico Depot. *Banque de France data including relocated and extended stores Total sales grew 9.8% to £798.3 million with constant gross margin rate. Retail profit of £76.6 million was in line with last year after £1 million of additional systems development costs. As previously announced, three further Castorama stores will close during the fourth quarter in preparation for their transfer to Brico Depot in 2007/08, resulting in an increase in disruption costs in the fourth quarter year on year. Castorama sales grew by 3.7% to £426.7 million (+0.8% LFL, +3.8% on a comparable store basis). New kitchen and decorative ranges performed well, although heating sales were affected by mild weather. Two more stores were relocated during the third quarter, completing the revitalisation programme for the year. Stores trading in the new format continue to outperform. Brico Depot sales grew 17.7% to £371.6 million, reflecting growth in store numbers and the publication of an additional catalogue (+2.2% LFL following +9.4% LFL in 2005/06). Three new stores opened in the quarter, including the third transfer from Castorama, with no further openings planned for the fourth quarter. The implementation of the new information technology platform remains on track for completion in the second quarter of 2007/08. REST OF EUROPE Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change Rest of Europe(1) (2) 280.7 220.3 27.4% 26.8% 8.9% Retail profit £m 2006/07 2005/06 % Change % Change (Reported) (Constant) Rest of Europe(1) 41.4 29.6 39.9% 40.1% (1) Rest of Europe includes Castorama Poland, Castorama Italy, Brico Depot in Spain, Koctas in Turkey, B&Q in Ireland, Castorama Russia and Hornbach in Germany. (2) Joint Venture and Associate sales are not consolidated. All percentage increases below are in constant currencies. Rest of Europe sales increased 26.8% to £280.7 million with 16 more stores trading and continued LFL growth (+8.9% LFL). Castorama Poland delivered sales growth of 22.7% to £147.5 million (+12.4% LFL following +13.2% LFL in 2005/06). Castorama Italy sales increased 18.8% (4.5% LFL) to £84.5 million in a generally weak retail market. Retail profit increased by 40.1% to £41.4 million, reflecting the strong sales growth and £4 million lower pre-opening costs compared with the same quarter last year. Underlying trading at Brico Depot Spain and Castorama Russia was strong resulting in £2 million lower development losses. Koctas Turkey, a 50% joint venture, performed well and the contribution from Hornbach (21% interest) in Germany grew 9.5%. Whilst underlying trading in Poland remains strong, sales in the fourth quarter are expected to compare unfavourably with the exceptional fourth quarter performance last year (2005/06: LFL +31.1%) which was supported by a non-repeating tax incentive to customers. In the fourth quarter, one new store is planned to open in Poland and two in Spain. ASIA Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change Asia(1) 115.6 87.7 31.8% 29.8% 17.3% Retail profit £m 2006/07 2005/06 % Change % Change (Reported) (Constant) Asia(1) 3.6 (2.9) n/a n/a (1) Asia includes B&Q China, B&Q Home South Korea and B&Q Taiwan JV (sales not consolidated). All percentage increases below are in constant currencies. Asia sales increased 29.8% (+17.3% LFL) to £115.6 million. As expected, B&Q China returned to profit in the third quarter reflecting the completion of the OBI integration programme and normal seasonal trading patterns. B&Q Taiwan, a 50% joint venture, delivered a creditable performance in a market affected by weak consumer confidence and credit restrictions. B&Q China sales growth of 30.9% was driven by new stores and LFL growth of +18.0%, boosted by the conversion of the OBI stores to the B&Q China format and new ranges. Three new stores opened, taking the total to 54 with a further four planned for the fourth quarter. In South Korea, B&Q Home opened its second store. Development losses were in line with the previous year. Enquiries: Ian Harding, Group Communications Director 020 7644 1029 Nigel Cope, Head of Communications 020 7644 1030 Sarah Gerrand, Head of Investor Relations 020 7644 1032 Further copies of this announcement can be downloaded from www.kingfisher.com or by application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX. Company Profile Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with over 700 stores in 11 countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct. Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach, Germany's leading DIY Warehouse retailer, with over 120 stores in Germany and seven neighbouring countries. DATA BY COUNTRY as at 28 October 2006 Store numbers Selling space Employees (000s sq.m.) (FTE) B&Q 324 2,312 26,140 UK Trade 34 17 2,033 Total UK 358 2,329 28,173 Castorama 101 985 12,011 Brico Depot 83 441 6,029 Total France 184 1,426 18,040 Castorama Poland 34 282 5,929 Castorama Italy 27 171 2,043 Other 27 158 2,765 Total Rest of Europe 88 611 10,737 B&Q China 54 521 10,374 B&Q Taiwan 21 97 1,787 Other 2 12 200 Total Asia 77 630 12,361 Total 707 4,996 69,311 NINE MONTHS - 39 weeks to 28 October 2006 Retail Sales £m % Total % LFL Retail Profit £m % Total 2006/07 2005/06 Change Change 2006/07 2005/06 Change (Reported) (Reported) UK 3,218.9 3,249.4 (0.9)% (2.8)% 141.9 202.5 (29.9)% France 2,295.3 2,117.3 8.4% 1.4% 172.1 178.6 (3.6)% Rest of Europe (1)(3) 754.1 581.8 29.6% 9.0% 93.5 67.9 37.7% Asia (2)(3) 324.6 199.0 63.1% 13.6% (3.0) (4.4) 31.8% Total 6,592.9 6,147.5 7.2% 0.4% 404.5 444.6 (9.0)% (1) Rest of Europe includes Castorama Poland, Castorama Italy, Brico Depot in Spain, Koctas in Turkey, B&Q in Ireland, Castorama Russia and Hornbach in Germany. (2) Asia includes B&Q China, B&Q Taiwan and B&Q Home in South Korea. (3) Joint Venture and Associate sales are not consolidated. This information is provided by RNS The company news service from the London Stock Exchange

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