Rexel The value-added partner of preference for all its - - PowerPoint PPT Presentation

Group Communications Dpt: Feb. 2016

Rexel

The value-added partner of preference for all its stakeholders

Company presentation

Rexel, global leader in the professional distribution

• f 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, at a glance

› Key highlights

• p. 4

› A pivotal role in the value chain

• p. 5

› A worldwide network

• p. 6

› A strong track record of growth

• p. 7

Rexel’s strategic priorities

› 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

Rexel’s values and commitments

› The Rexel Values p.17 › Rexel’s commitment to sustainable development p.19 › The Environment p.20 › Social Responsibility p.21 › The Rexel Foundation for a better energy future p.22 › Corporate Governance p.23 › A balanced shareholders base p.24 › Rexel’s commitments to all stakeholders p.25

34% 44% 22% 36% 54% 10%

Key highlights

December 2015

Present in 35 countries in Europe, North America and Asia-Pacific ~60% of the Group sales in markets where Rexel is No. 1 or No. 2 28,000 employees A network of over 40 banners worldwide 2,100 branches 115 logistics centers

Key 2015 Results Balance of end-markets (2015 sales) Diversified geographic spread (2015 sales)

 Industrial  Commercial  Residential  North America  Europe  Asia-Pacific

Sales: €13.5Bn Operating income before other income and expenses (EBITA): €593.5M Gross margin: at 24% of sales Free cash-flow before interest and tax paid: €563M

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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 SUPPLIERS

SUPPLY CHAIN

SERVICES

(energy audits)

A WIDE RANGE OF PRODUCTS

Comprehensive Offering (one-stop shop) LARGE INSTALLERS

ADVICE

BALANCED END-MARKETS – 35 COUNTRIES

SUPPLIERS AND ELECTRICAL CONTRACTORS

Proximity to CUSTOMERS

RESIDENTIAL Social and private housing COMMERCIAL Offices, hotels and hospitals INDUSTRY Automotive,

• il&gas

and mining

Lighting Climate control Home Automation Security and communication Industrial equipment Cables Smart products Renewables

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A worldwide network

North America

Canada, United States

Europe

Austria, Belgium, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom

Asia Pacific

Australia, China, India, Indonesia, Malaysia, New Zealand, Philippines, Saudi Arabia, Singapore, Thailand, United Arab Emirates, Vietnam

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February 2016

Rexel 2020 : A new phase in the Group’s development…

A strong track record of growth

A dynamic start

Founded in 1967 as CDME First expansion in Europe and the US

A decade of growth

Operations launched in the Asia- Pacific region and Eastern Europe Sales development with proven resilience and sustainable profitability 1993: launch of the Rexel brand

Transformational acquisitions

Two major acquisitions: GE Supply (2006) and Hagemeyer (2008) Sales double 2005: Rexel acquired by Ray Investment* IPO (2007)

Upgraded business model

From product distributor to solutions provider Expansion in emerging markets with acquisitions in India Growth in energy efficiency markets

2012-2015 2009-2011 2004-2008 1990-2003 1967-1990 Energy in Motion Company plan

*Consortium mainly composed of Clayton, Dubilier & Rice, Eurazeo, BAML Capital Partners Part of the PPR group

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2016-2020

Organic growth and acquisitions support Rexel’s development

2.

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

Focusing on high-potential business categories through energy efficient products and services

• P. 9

Serving international projects and key accounts

Rexel IKA: CUSTOMER CENTRIC

Committed partnerships with

Industrial customers Large contractors

A strong business platform leveraging sales support across the globe

Rexel IPG: PROJECT CENTRIC

A global commercial platform for EPC* companies Specialized execution centers around the world Key expertise: technical assistance, project-specific sourcing & logistics, project management

* EPC: Engineering, procurement and construction

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A specialized approach to 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

Remote location logistics and security 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

…with specific considerations Our key vertical markets…

• Utilities
• Retail
• Hospitality and entertainment
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A customer-centric business-model

CUSTOMER

Branch

Multi-channel customer relationship management In 2014, over €1.6bn sales conducted via e-commerce (web and EDI) representing 13% of Group sales

Mobile app EDI Call center Webshop Sales rep

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2016-2020

• Continue to support

acquisition strategy to fuel profitable growth

• Annual budget of

€300m on average in acquisitions

2012-2015

• Acquisition of

21 companies

• Strengthened market

share in US

~1,2b€ annualized sales

• Acquisition of

10 companies (2 mid-size and 8 bolt-ons)

• Entry into India
• Reinforced

positioning in China

2011

~280m€ annualized sales

2005-2008

• Acquisition
• f 31 companies
• 2 transforming

acquisitions (Gexpro, Hagemeyer)

• 5 mid-size and 24 bolt-
• n acquisitions

~6.2b€ annualized sales

• Acquisition
• f 5 companies

(1 mid-size and 4-bolt-ons)

• Tactical

acquisitions in Europe and China

2009-2010

~120m€ annualized sales

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

M&A: Mergers & Acquisitions

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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

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Driving asset productivity

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

To consistently optimize assets and fully leverage capabilities within the Group

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• P. 16

Rexel 2020: Solid financial ambitions reflecting our aim to drive long term value creation

Organic sales growth

• utperforming the market,

+1% to 2% growth p.a. on average EBITA growth ≥ 2 x sales growth 70% to 80% conversion

• f EBITDA

into FCF before I&T Targeted accretive M&A

• f around €1.5bn
• ver the five-year period

Highly cash generative business model Improvement in profitability Focused cash allocation policy Additional sales growth

Rexel’s values and commitments

3.

The Rexel Values

Deliver the best customer experience Encourage to innovate Enjoy making a difference Join forces for success Engage people to develop their talents Trust each other

Rexel’s employees are committed to applying six core values to their everyday work and interactions with the Group’s stakeholders

• P. 18

Rexel’s commitment to sustainable development

Expertise in energy management

promoting eco-efficient and renewable energy solutions raising customer and consumer awareness of energy efficiency

Environmental commitment: improving our performance

consolidating the monitoring of our environmental impact improving energy efficiency at our facilities reducing our transport-related carbon emissions Reducing and recovering waste

Social responsibility: supporting our employees

promoting safety and well-being in the workplace supporting employee career development rewarding employees for their contribution to the Group’s success

The Rexel Foundation for a better energy future: promote access to energy efficiency for all

Improve access to energy efficiency among the most disadvantaged populations Facilitate the emergence of new social innovation models Foster information sharing, greater awareness of energy efficiency among the general public, and innovation

As a global company we have an important role to play in promoting greater responsibility towards our employees, the environment and the communities in which we operate

• P. 19

The environment: Rexel’s own commitment

Consolidating the environmental monitoring

Global reporting organization of environmental impacts Group Carbon Footprint Assessment in 2010 and 2013 Environmental Management System Standard (1 Group standard + 8 ISO 14001 certifications)

Improving energy efficiency at our facilities

Extensive lighting retrofit project across 65 sites in the USA

Reducing our transport-related carbon emissions

Upgrading the European vehicle fleets of our subsidiaries (nearly 100% since 2011) to reduce the fuel consumption (-4% in 2013) 17% reduction in greenhouse gas emissions of Rexel’s fleet used in products transportation between 2012 and 2013

Reducing and recovering waste

18 countries set up a system to collect WEEE* from customers Replacement of cardboard packaging with reusable plastic containers

Rexel recognizes its environmental responsibility first applies to its own

• activities. We are committed to:

* WEEE: Waste Electrical and Electronic Equipment

• P. 20

Social responsibility: supporting our employees *72% of Rexel’s employees would recommend Rexel as a good place to work

Driven by a strong entrepreneurial spirit, our employees are the building blocks of our success. Promoting safety and well-being in the workplace

42% of employees trained in safety 4 700 employees across 9 countries covered by the “Rexel Plus Protection for All” welfare protection program

Supporting employee career development

Career guidance Personalized continuous training

58% employees received training in 2013

Rewarding employees for their contribution to the Group’s performance

Employee share purchase programs in 2007, 2010, 2012 and 2013 54% of our workforce receive performance related compensation

The Group’s ethics are rooted in common principles. All of Rexel’s employees are responsible for upholding the highest professional ethical standards in order to retain the trust and respect of all our stakeholders. *85% of Rexel employees say that the company operates with integrity in its external dealings

An ethical approach

* According to the most recent Rexel Group employee opinion survey ‘Satisfaxion13’

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The Rexel Foundation for a better energy future

Improve access to energy efficiency among the most disadvantaged populations

Education, vocational training, improvement of social housing Partnerships with associations, NGOs, public institutions, other foundations and business partners

Facilitate the emergence of new social innovation models

Identification and promotion of social innovations in the energy sector Donation of equipment and materials, skills sponsorship, financial backing, logistical support, sharing of expertise with social entrepreneurs in the field of energy efficiency

Foster information sharing, greater awareness of energy efficiency among the general public, and innovation

Support to research programs and educational projects Publication of studies, organization of workshops and conferences

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Rexel’s corporate governance structure

Rudy Provoost Chairman and CEO Catherine Guillouard Deputy-CEO, CFO and Group Senior Vice President

Executive committee

Patrick Berard Senior Vice President Europe

Europe

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Board of Directors

Rudy Provoost, Chairman and CEO François Henrot*, Deputy-Chairman and Senior Independant Director, Chairman of the Nomination and Compensation Committee Pier Luigi Sigismondi*, Chairman of the Strategic Investment Committee Fritz Fröhlich*, Chairman of the Audit and Risks Committee Thomas Farrell* Isabel Marey-Semper* Monika Ribar* Maria Richter* Hendrika Verhagen* * Independent members

Brian McNally Executive Vice President and CEO North America Mitch Williams Senior Vice President Asia-Pacific

Asia-Pacific North America

François Thuilleur Group Senior Vice President Marketing, Digital and Operations Pascale Giet Group Senior Vice President Communications and Sustainable Development Sharon MacBeath Group Senior Vice President Human Resources Thierry Delarue Group Senior Vice President Strategy & Business Transformation

Shareholding structure (at December 31, 2014)

• P. 24

 Free float  Management and employees  Treasury shares

0,6 % 1,4 % 98 %

Listed on Euronext since 2007

A strong commitment to all stakeholders

With over 50,000 product references available through a variety of sales channels for next-day delivery:

We aim to be the brand of choice for our customers

With a network of 2,100 branches, 115 logistics centers and a dedicated sales force in energy management across 35 countries worldwide:

We aim to be the partner of preference for our suppliers

With an ambitious medium-term company plan:

We aim to be the most attractive company for our shareholders

With a strict focus on ethics, training, safety and employee engagement:

We aim to be an employer of reference for our people

• P. 25