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2016 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT

SOLID PERFORMANCE IN 2016 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 resil- ience with an adjusted EBITA margin of 4.2% and free cash flow before interest and tax from continuing operations repre- senting 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 improve- ment 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.

A STRATEGIC FOCUS ON PROFITABLE GROWTH 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

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.

*On a constant and same-day basis.