“In 2016, Rexel confirmed the strength of its business model and its ability to withstand adverse conditions in an economic environment that remained challenging across most of its markets.”

PATRICK BERARD, Chief Executive Officer of Rexel

PATRICK BERARD, Chief Executive Officer of Rexel


Rexel posted performance in line with guidance. Sales were slightly down 1.9%* to €13.2bn with a strong 58% increase in net income from continuing operations to €134.3m. Rexel demonstrated its resilience with an adjusted EBITA margin of 4.2% and free cash flow before interest and tax from continuing operations representing 69% of EBITA. In parallel, the Group continued to strengthen its financial structure with a drop in net debt, a stable indebtedness ratio and lower financial expenses, thanks in particular to several refinancing operations aimed at extending debt maturity while taking advantage of improved market conditions.


Our best performance was posted in the fourth quarter, with a sequential improvement in our organic sales in all three of our geographies, a first step that allows us to foresee a resumption of organic growth and increased profitability in 2017.


*On a constant and same-day basis.


Thanks to its pivotal role in the value chain between manufacturers and customers, Rexel can boast many assets enabling it to seize growth opportunities: a broad and valuable customer base, a strong footprint in key geographies, key partnerships with global and leading manufacturers, best-in-class core capabilities and an increasingly multichannel customer approach.


To capitalize on these assets, I appointed a new Executive Committee, comprising 10 members, whose composition is strongly operations-oriented. It brings together the heads of our key geographies as well as our key functional leaders. Among its members, I am delighted to welcome Laurent Delabarre, who joined us on May 15 as Group Chief Financial Officer. Together, we will implement the strategy that we presented at our Capital Markets Day on February 13, 2017 which will focus on three priorities.


First, accelerate organic growth to gain market share. To do this, we will rely on two fundamental pillars - net customer gains and increased share of wallet with each customer, summarized in a simple motto: "More customers and More SKUs" (Stock-Keeping Unit) - as well as on a customer approach that will be differentiated according to three main customer profiles: Proximity, Projects and Specialty.


Next, increase selectivity in capital allocation and strengthen financial structure. We will focus our investments on both organic growth enablers and productivity enhancers, through increasing digitization and optimization of the branch network on the one hand, and automation of logistics and back-office digitization on the other hand. At the same time, we intend to undertake a divestment program that will reduce the Group's consolidated sales by around €800m by the end of 2018 in order to focus on those geographies and market segments that offer the best profitable growth and value creation opportunities.
Rexel will continue its targeted bolt-on acquisition strategy from 2018 onwards, aiming at broadening our footprint in our key markets and segments.


Finally, improve our operational and financial performance. Rexel aims at continuously increasing its profitability through gross margin enhancement and strict cost control. The Group will also enhance its performance in key geographies, mainly the USA, Germany, the UK and Australia, which offer significant turnaround potential.


As a signatory to the United Nations Global Compact, Rexel is committed to incorporating its ten key principles into its strategy and procedures, reporting on their implementation and promoting them to all of its partners.

The technological advances in energy efficiency, smart solutions for industrial and building automation, and the empowerment of end-users to optimize their energy management will allow the Group to continue to generate sustainable growth opportunities for its customers and all its stakeholders.

Biographical Information
Patrick Berard, 63, joined Rexel in 2003 as Chief Executive Officer of Rexel France. In 2007, he also became Manager of the southern Europe area (France, Italy, Spain, Portugal), then, in 2013, of Belgium and Luxembourg. In 2014, he was appointed Senior Vice President Southern, Central and Eastern Europe. Prior to joining Rexel, Patrick Berard served as Operations Manager of Antalis (Groupe Arjo Wiggins) from 1999 to 2002, and was later appointed Chairman and Chief Executive Officer of Pinault Bois & Matériaux (2002-2003), a company of the Kering Group (formerly PPR Group). From 1988 to 1999, he occupied various duties with Polychrome, including those of Chief Executive Officer Europe and Vice President of the Group, prior to becoming a member of the Executive Committee of Kodak Polychrome Graphics. From 1980 to 1987, Patrick Berard was a consultant with McKinsey, then Manager of Planning and Strategy of the Industry and Engineering Division of Thomson. His career started in 1978 with the Pulp and Paper Research Institute of Canada.

“With a strengthened governance structure, a new Executive Committee, committed teams and a clear strategic roadmap, our ambition is to make Rexel a company that creates value for all players in the world of energy.”

PATRICK BERARD, Chief Executive Officer of Rexel

“Rexel is a leader in its field with strong potential for profitable growth.”

IAN MEAKINS, Chairman of Rexel's Board of Directors

The year 2016 was marked by a major change in governance within the Group. The Board of Directors decided in June 2016 to split the roles of Chairman and Chief Executive Officer. This new structure aims primarily at allowing management to focus all of its efforts on implementing and executing the Group's strategy - an updated version of which was presented at our Capital Markets Day in February 2017 - with the oversight and full support of the Board. A new Executive Committee composed of the Group's key operational managers was also implemented to support this goal.

Following my joining the Board of Directors in July 2016, I was named as Non-Executive Chairman, while Patrick Berard was appointed Group Chief Executive Officer beginning July 1, 2016. I am truly convinced that our complementary experience and skills will allow us to foster a dynamic that will drive superior returns for shareholders and, more widely, for all our stakeholders.

Rexel's performance in 2016 was in line with guidance. The Group's sales of €13.2bn were slightly down 1.9%*. In parallel, Rexel continued to strengthen its financial structure, enabling us to pay a cash dividend of €0.40 per share, which is stable compared to last year and in line with our pay-out policy.

By capitalizing on its leading market positions, strong relationships with clients and suppliers, industrial expertise and highly competent teams, Rexel is on the right track to successfully transform its business model and accelerate its growth.

*On a constant and same-day basis.

Biographical Information
Ian Meakins, 59 years old, has been Chairman of the Board of Directors of Rexel since October 1st, 2016. Prior to that, he was appointed Wolseley CEO in July 2009. He was previously Chief Executive Officer of Travelex, the international foreign exchange and payments business. Previously he was Chief Executive Officer of Alliance UniChem plc until its merger with Boots in July 2006.
Prior to that, between 2000 and 2004, he was President, European Major Markets and Global Supply for Diageo plc, spending over 12 years with the company in a variety of international management positions. He is a Non-Executive Director and the Senior Independent Director of Centrica plc.

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