Q1 2020 sales April 23 rd , 2020 Consolidated financial statements - PowerPoint PPT Presentation

Q1 2020 sales April 23 rd , 2020 Consolidated financial statements as of March 31, 2020 were authorized for issue by the Board of Directors held on April 22, 2020

Adapting to unprecedented disruption

Health & safety of our employees is our main priority Protection of our more than 26,000 employees is an absolute priority • Employees at Group level > 26,000 Key activities, from logistics centers to branches, are functioning in full • compliance with applicable safety measures In the US, capitalizing on our European experience, we anticipated the • lockdown, implementing sanitary measures before they became mandatory In less than 10 days, complete shift in operating methods thanks to strong • Home Office IT capability and the broad use of digital interfaces c.33% of Group employees working from home 33% Call centers and sales force teams fully operational from home Track & trace, self-check-out, drive-in services, lockers allow business continuity while respecting sanitary measures — 3

Real-time adaptation to mix variation in an unprecedented disruption ■ Customer mix ■ Channel mix (Web, EDI, Counter) ■ Human resource mix ■ Country mix Adapting to disrupted business mix ■ Need to adust ■ Product mix to impacts on (Demand side) ■ Regional mix staffing and different labor ■ Product regulations availability (Supplier side) Strong proximity with our customers & suppliers to — 4 ensure continuity in the value chain

Rexel up and running amid the Covid-19 crisis Number of open branches Closed 110 Electrical distribution considered an essential activity in most countries • Our continuity plans allow the availability of products and services Open and Open as a 615 operating for essential, and sometimes vital, needs in a world which cannot pick-up point normally 1188 run without electrical usage Maintenance & Repair Operations, hospitals or retirement homes Web account creation in Business continuity plans in all countries • France in 3 weeks late March +1,888 vs 100 per week Our organization is up and running 94% of branches & all Distribution Centers are operating, respecting sanitary measures In this crisis mode, digital is a key business enabler and a game Europe digital sales above 30% for changer through data and transaction layers: the first time in March 2020 Data structuring / IT capability offering new functionalities 31.2% ( Use of data (Power BI) to monitor daily activity proactively and • take appropriate measures vs 25% in March 19) Enhanced cyberattack protection • Sales by phone last week of March Transaction module (Web & EDI) improving customer experience c. 50% Web interface adapted to customer needs • Web platform used to support/maintain contact with our • customers and help them navigate government measures — 5

Rexel demonstrates agility and reactivity Same-day sales in the first 15 days of April Key decisions taken on a weekly basis (FTE resource, inventory • management) -27.7% Focus on cost management and cash generation to adapt to an • unprecedented situation : Liquidity is our key performance indicator Daily monitoring focusing on our customer financing capability Capex suspended pending case-by-case reassessment Dividend cancelation proposed by the Board Action plans implemented to actively manage opex such as: Employee measures ; reduction of c. 27% of Salary & Benefits Reduction in Salary & Benefits in April All projects with no short-term impact on business put on hold Focus on Working Capital management Dynamic inventory adaptation by product/customer category, -27% geography Our commitments remain unchanged : • No branch closures No compromise on digital transformation ambition — 6

Same-day sales reflect the impact of progressive lockdown in Europe 1. g and North America Week 10: March 2 nd SD sales : +6.3% No country in lockdown Week 11: March 9 SD sales : -0.6% Lockdown in Italy & Spain Week 12: March 16 SD sales : -12.0% Week 14: April 1 Week 15 : April 8 Europe progressively SD sales : -25.6% moving to a SD sales : -30.1% Week 13: March 23 Europe & US in lockdown SD sales : -27.8% lockdown After Europe, USA begins shutting down — 7

Europe : Stronger impact in the South than in the North 14% +8.5% +2.9% +2.4% 11% +3.8% -20.4% -24.1% Trend 11% + - -4.5% -37.0% -47.3% Sales deterioration 9% (First 15 days of April) +3.7% +1.6% +2.6% X% % of European sales 36% -6.1% -64.6% -59.8% X% Q1 2020 vs. Q1 2019 7% -0.1% -11.3% -18.8% From March 23 rd to x% March 31 st 4% x% First 15 days of April — 8 -10.7% -55.7% -64.4%

North America : Uneven shutdown measures in states in the US +1.1% -22.2% -22.8% 24% 9% Northwest Midwest +3.3% -17.4% -18.0% -5.8% +13.3% -17.6% 12% Northeast Trend -15.1% -26.1%-33.5% -6.3% -17.3%-21.2% + - Sales deterioration 10% Southeast 11% (First 15 days of April) California -4.5% +10.2% -8.6% -3.5% -33.3% -12.5% x% % of US ED sales Mountain Plains 8% x% Q1 2020 vs. Q1 2019 -4.1% -14.4% -4.4% Florida 11% From March 23 rd to 15% -x% Gulf Central March 31 st +4.3% -6.8% -5.9% -19.6% -39.4%-41.4% First 15 days of April x% — 9

Asia-Pacific: Pacific entering lockdown while China is bouncing back Asia 42% -19.2% -31.6% +18.8% Trend + - Sales deterioration (First 15 days of April) x% % of Asia-Pac Sales Q1 2020 vs. Q1 2019 x% From March 23 rd to x% March 31 st ) Pacific 58% +1.5% -10.6% -19.2% First 15 days of April x% — 10

Q1 20 Sales review & priorities in COVID-19 environment

Q1 20 sales : Down 3.3% on a same-day basis and -2.7% on a reported 1. g basis -2.7% reported sales Q1 2020 same day sales down 3.3% €3,324.2m Europe (56% of Group sales) : -1.5% €3,315.0m North America (37% of Group sales) : - 4.8% -0.6% €3,225.3m +0.9% APAC (7% of Group sales) : -8.3% -3.3% +0.3% Organic same day sales growth impacted by negative copper impact in the quarter (-0.4% Actual-day contribution) growth -3.0% Scope effect mainly related to the sale of Gexpro Services Deconsolidation as of February 23 rd , 2020 Annual sales of circa $260m Q1 2019 Forex Scope Q1 2019 Organic Calendar Q1 2020 Higher profitability than country average Same-day comparable Indebtedness ratio reduced by 10 bps — 12

Good start to Q1 2020; activity strongly impacted Q1 2020 sales by Covid-19 since mid-March 3,225 € million • Same-day sales grow through February and drop sharply in March Ytd through February at +0.9% or +2.0% restated for China (impacted earlier by Covid-19) Q1 2020 same-day sales growth Week of March 23rd : Same-day sales were down -27.8% following -3.3 % progressive lockdown in most European countries and North America • Same-day sales down -27.7% in the first 15 days of April, with most of Europe and North America under lockdown Europe down -37.0% Same-day sales growth in the first 15 days of April North America down -21.5% -27.7 % APAC down -0.4% No visibility on the duration and extent of the crisis — 13

1. g Active opex reduction with actions on every cost category NATURE OF OPEX BY CATEGORY [€2.7 b IN 2019] • Sales Commission & Amortization & depreciation • Fixed Salaries and tax related tax: (incl Interim) • Travel and entertainment costs 4% Delivery expenses • • Professional fees Professional fees • Others • Variable costs Actions implemented on each & every line: • 25% Flexible costs Salary & Benefits management (down 27% April) 53% with adoption of : Temporary unemployment in Europe Fixed costs Flexibility in North America, including wages 18% reductions, temporary lay offs and “absence no pay” policies Deferral of wage increases (China for example) Building & Occupancy (incl Leases) • Reduction of temporary staff and consultants • IT and Network & Communication costs All projects with no short-term impact on business Other net external expenses • put on hold Travel & entertainment costs and professional fees close to zero CEO and Board members to take 20% cut in their compensation as of April — 14

Cash generation, our key priority 2.37x Daily monitoring to better manage liquidity: • Indebtedness at December 31, Weekly level of inventory & bottom-up modelling over 3 months 2019, post sale of Gexpro Services Active cash management • Strong monitoring of cash collection on Receivables: Stable bad debt level at 0.3% of sales at this stage Dynamic Inventory adaptation by product/customer category, 3.9x geography Tight management of payables Social tax deferral authorized by governments in most countries One-time spike authorized in covenant between 3.75x and 3.9x Lower Capex expected as most projects put on hold Current opex measures require limited restructuring costs Dividend cancellation proposed by the Board would further protect • liquidity €145m Debt covenant • SCA: Calculated twice a year, at end-June and end-December Cash saving from possible Covenants at 3.5x with three spikes authorized dividend cancellation Once between 3.75 and 3.9x • Two times between 3.5 and 3.75x • Only 2 spikes can be consecutive • — 15