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REXEL, A WORLD OF ENERGY

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 mem- bers, 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 cus- tomer 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 produc- tivity enhancers, through increasing digiti- zation and optimization of the branch net- work 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 ac- quisition strategy from 2018 onwards, aim- ing 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 geogra- phies, mainly the USA, Germany, the UK and Australia, which offer significant turna- round potential.

SHARED PERFORMANCE As a signatory to the United Nations Glob- al Compact, Rexel is committed to incor- porating 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 effi- ciency, smart solutions for industrial and building automation, and the empower- ment 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.

STRATEGY