Rexel The value-added partner of preference for all its stakeholders Company presentation Group Communications Dpt: Feb. 2016
Rexel, global leader in the professional distribution of products and services for the energy world Rexel’s mission is to support its customers – in residential, non- residential as well as industrial markets – to be at their best in running their business, by providing a broad range of sustainable and innovative products, services and solutions in the field of technical supply, automation and energy management related to construction, renovation, maintenance and production. P. 2
Summary Rexel’s values and commitments Rexel, at a glance › › Key highlights p. 4 The Rexel Values p.17 › › Rexel’s commitment to sustainable development A pivotal role in the value chain p. 5 p.19 › › A worldwide network p. 6 The Environment p.20 › › A strong track record of growth p. 7 Social Responsibility p.21 › The Rexel Foundation for a better energy future p.22 › Corporate Governance p.23 Rexel’s strategic priorities › A balanced shareholders base p.24 › Rexel’s commitments to all stakeholders p.25 › High-potential business categories p. 9 › International projects and key accounts p. 10 › Vertical markets p. 11 › A customer-centric business model p. 12 › Boosting external growth p. 13 › A robust logistics organization p. 14 › Driving asset productivity p. 15 › Medium term financial targets p. 16
Key highlights Key 2015 Results December 2015 Present in 35 countries in Europe, North Sales: € 13.5Bn America and Asia-Pacific Operating income before other income ~60% of the Group sales in markets where and expenses (EBITA): € 593.5M Rexel is No. 1 or No. 2 Gross margin: at 24% of sales 28,000 employees Free cash-flow before interest and tax paid: A network of over 40 banners worldwide € 563M 2,100 branches 115 logistics centers Balance of end-markets (2015 sales) Diversified geographic spread (2015 sales) 10% North America 22% 34% 36% Industrial Europe Commercial 54% 44% Asia-Pacific Residential P. 4
A pivotal role in the value chain Rexel provides sustainable and innovative products and services for automation, technical supply and energy management and designs solutions in construction, renovation and maintenance Strong partnerships with Proximity to SUPPLIERS CUSTOMERS BALANCED END-MARKETS A WIDE RANGE – 35 COUNTRIES OF PRODUCTS SUPPLIERS RESIDENTIAL Social and private housing Lighting LARGE Climate INSTALLERS control Home COMMERCIAL Comprehensive SUPPLY CHAIN Automation Offices, hotels AND Offering Security and and hospitals communication (one-stop shop) ELECTRICAL Industrial CONTRACTORS equipment INDUSTRY Cables Automotive, oil&gas Smart SERVICES products Renewables and mining (energy audits) ADVICE P. 5
A worldwide network February 2016 Europe Austria, Belgium, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom North America Canada, United States Asia Pacific Australia, China, India, Indonesia, Malaysia, New Zealand, Philippines, Saudi Arabia, Singapore, Thailand, United Arab Emirates, Vietnam P. 6
A strong track record of growth Transformational acquisitions Two major acquisitions: GE Supply (2006) and Hagemeyer (2008) A dynamic start Sales double Founded in 1967 2005: Rexel acquired as CDME by Ray Investment* Energy in Motion First expansion in IPO (2007) Company plan Europe and the US Part of the PPR group 1967-1990 1990-2003 2004-2008 2009-2011 2012-2015 2016-2020 A decade of growth Upgraded business model Operations launched in the Asia- Pacific region and Eastern Europe From product distributor Rexel 2020 : Sales development with proven to solutions provider A new phase resilience and sustainable Expansion in emerging in the Group’s profitability markets with acquisitions development … 1993: launch of the Rexel brand in India Growth in energy efficiency markets *Consortium mainly composed of Clayton, Dubilier & Rice, Eurazeo, BAML Capital Partners P. 7
2. Organic growth and acquisitions support Rexel’s development
Focusing on high-potential business categories through energy efficient products and services Innovative applications and technology to manage energy consumption Home automation Building Management Systems for lighting, HVAC, security and access, fire and safety Local and remote controls Supervision and energy dashboards Smart and sub-metering Residential building planning software Energy efficient products LED lighting Heat pumps Heat recovery ventilation systems Variable speed drives Renewable energy including solar PV Value added services Energy audits Monitoring Financing Training P. 9
Serving international projects and key accounts Rexel IPG: PROJECT CENTRIC Rexel IKA: CUSTOMER CENTRIC A global commercial platform Committed partnerships with for EPC* companies Industrial customers Large contractors Specialized execution centers around the world A strong business platform leveraging sales support across the globe Key expertise: technical assistance, project-specific sourcing & logistics, project management * EPC: Engineering, procurement and construction P. 10
A specialized approach to vertical markets - Hospitality and entertainment - Utilities - Retail Our key vertical markets… Working with large clients Multi-year and multi-site agreements Adherence to all required quality standards and regulations Integrated procurement and e-connectivity Tailored products and services … with specific Remote location logistics and security considerations Secure supply chain solutions, reporting & data mining Sourcing products internationally for greater cost optimization Dedicated infrastructure Project sales force On-site teams / material management warehouses P. 11
A customer-centric business-model Multi-channel customer relationship management Call center Branch Mobile app CUSTOMER Sales rep Webshop EDI In 2014, over € 1.6bn sales conducted via e-commerce (web and EDI) representing 13% of Group sales P. 12
Boosting external growth A three-pronged M&A strategy Consolidating market share in key mature markets Expanding in fast-growing markets Seizing opportunities to extend offer of value-added services Sustained M&A activity between 2006 & 2015 through 64 acquisitions ~1,2b € ~280m € annualized sales ~120m € annualized sales 2016-2020 ~6.2b € annualized sales 2012-2015 annualized sales 2011 • Continue to support 2009-2010 acquisition strategy • Acquisition of 2005-2008 to fuel profitable • Acquisition of 21 companies growth • Strengthened market • Acquisition 10 companies • Annual budget of • Acquisition (2 mid-size share in US of 5 companies € 300m on average in and 8 bolt-ons) of 31 companies (1 mid-size acquisitions • Entry into India and 4-bolt-ons) • 2 transforming • Tactical • Reinforced acquisitions acquisitions positioning (Gexpro, Hagemeyer) in Europe in China • 5 mid-size and 24 bolt- and China on acquisitions M&A: Mergers & Acquisitions P. 13
A robust logistics organization 115 logistics centers around the world Powerful and reliable information systems and supply chain solutions for the best client service 2,500 to 3,500 product references consistently in stock at every sales outlet 50,000 product references available for next-day delivery P. 14
Driving asset productivity To consistently optimize assets and fully leverage capabilities within the Group Robust ERP and IT infrastructure platforms Business intelligence Customer relationship management An optimized strategic workforce Dedicated customer and supplier relationship teams Streamlined structure to support the Energy in Motion company plan A stronger Rexel brand and corporate image Simplified brand architecture P. 15
Rexel 2020: Solid financial ambitions reflecting our aim to drive long term value creation Organic sales growth outperforming the market, +1% to 2% growth p.a. on average Additional sales growth Improvement in profitability Targeted accretive M&A EBITA growth of around € 1.5bn ≥ 2 x sales growth over the five-year period Highly cash generative business model Focused cash allocation policy 70% to 80% conversion of EBITDA into FCF before I&T P. 16
3. Rexel’s values and commitments
The Rexel Values Rexel’s employees are committed to applying six core values to their everyday work and interactions with the Group’s stakeholders Deliver Join the best customer forces for success experience Engage Encourage people to develop to innovate their talents Enjoy Trust making a difference each other P. 18
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