In a statement released ahead of a presentation to investors and analysts on the firm’s long term strategy Kingfisher also said it planned a capital return of £600 million over the next three years in addition to annual dividend payments.
The group estimated that its plan, which entails improving its operational and online capabilities and driving efficiencies, would cost £800 million. It said the plan would hit its profits in the first year by about £50 million and in the second year by about £70m-100m.
Kingfisher chief executive Veronique Laury said: "With a clear roadmap now in place alongside clear long-term targets, the size of the five year opportunity is significant."
Homebase was bought by Bunnings owner Wesfarmers last week. Laury said: "For more than a year I was saying that what I was hearing about the UK not being a good DIY market was false. The fact that Bunnings is willing to pay £340m for Homebase makes me right."