disposals). This provides a measure of how much cash the business generates that can be used for expansion, capital returns and other purposes. Gross margin Profit before Refer to definition Gross margin represents sales from the taxation supply of home improvement products and services (excluding VAT), less the associated cost of those sales. It is a measure of profit margin. Lease No direct A reconciliation of Lease adjusted net debt represents net adjusted net equivalent lease adjusted net cash plus capitalised property operating debt debt is set out in lease rentals. The measure is used in the Financial calculating the ratio of lease adjusted net Review (Section 4) debt to EBITDAR to provide an indication of the Group’s overall leverage. LFL Sales to definition LFL (like-for-like) growth represents the constant currency, year on year sales growth for stores that have been open for more than one year. It is a measure to reflect the Group's performance on a comparable basis. Net cash No direct A reconciliation of Net cash comprises cash and cash equivalent this measure is equivalents and short term deposits, less provided in note borrowings and financing derivatives 15 of the (excluding accrued interest). condensed financial statements Net cash flow No direct A reconciliation of Net cash flow represents the total equivalent net cash flow is set movement in the net cash balance out in the Financial during the year excluding foreign Review (Section 4) exchange and other non-cash movements. Retail profit Profit before A reconciliation to Retail profit is stated before central taxation profit before transformation P&L costs, exceptional taxation is set out items and the Group's share of interest in the Financial and tax of JVs and associates. This is Review (Section 4) the Group's operating profit measure and note 4 of the used to report the underlying condensed performance of our retail businesses financial including the sustainable benefits of our statements transformation plan. Transformation No direct Not applicable Transformation costs represent the equivalent additional costs of the ONE Kingfisher transformation programme launched in 2016/17. They comprise 'transformation exceptional costs', 'transformation P&L costs' (i.e. non-exceptional items) and 'transformation capex' (capital expenditure).
disposals). This provides a measure of how much cash the business generates that can be used for expansion, capital returns and other purposes. Gross margin Profit before taxation Refer to definition Gross margin represents sales from the supply of home improvement products and services (excluding VAT), less the associated cost of those sales. It is a measure of profit margin. Lease adjusted net debt No direct equivalent A reconciliation of lease adjusted net debt is set out in the Financial Review (Section 4) Lease adjusted net debt represents net cash plus capitalised property operating lease rentals. The measure is used in calculating the ratio of lease adjusted net debt to EBITDAR to provide an indication of the Group’s overall leverage. LFL Sales to definition LFL (like-for-like) growth represents the constant currency, year on year sales growth for stores that have been open for more than one year. It is a measure to reflect the Group's performance on a comparable basis. Net cash No direct equivalent A reconciliation of this measure is provided in note 15 of the condensed financial statements Net cash comprises cash and cash equivalents and short term deposits, less borrowings and financing derivatives (excluding accrued interest). Net cash flow No direct equivalent A reconciliation of net cash flow is set out in the Financial Review (Section 4) Net cash flow represents the total movement in the net cash balance during the year excluding foreign exchange and other non-cash movements. Retail profit Profit before taxation A reconciliation to profit before taxation is set out in the Financial Review (Section 4) and note 4 of the condensed financial statements Retail profit is stated before central transformation P&L costs, exceptional items and the Group's share of interest and tax of JVs and associates. This is the Group's operating profit measure used to report the underlying performance of our retail businesses including the sustainable benefits of our transformation plan. Transformation No direct equivalent Not applicable Transformation costs represent the additional costs of the ONE Kingfisher transformation programme launched in 2016/17. They comprise 'transformation exceptional costs', 'transformation P&L costs' (i.e. non-exceptional items) and 'transformation capex' (capital expenditure).
2018_interim_results.docx