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2016-02-11

REXEL : CAPITAL MARKETS DAY

CAPITAL MARKETS DAY

2020 ROADMAP FOR PROFITABLE GROWTH
Rexel, a global leader in the professional distribution of products and
services for the energy world, is holding a Capital Markets Day today in
Paris, during which it will provide an update on its strategy and 2020
financial ambitions.

Rudy PROVOOST, Chairman of the Board of Directors and CEO, said:

"The Rexel 2020 plan presented at today's Capital Markets Day offers a clear
roadmap for profitable growth and long-term value creation for all
stakeholders. Over the past years, Rexel has continuously reinforced and
upgraded its business model to become the value-added partner of preference
for our customers and suppliers. Rexel's unique market-leading footprint,
genuinely differentiating customer-centric strategy, continued innovation in
marketing, digital and operations and targeted accretive acquisition policy
put the company in the forefront of its sector and allow it to seize future
growth opportunities in a rapidly changing world, powered by new mega-trends,
technologies and applications.

Over the 2016-2020 period, Rexel aims to grow sales faster than the market,
with average annual organic sales growth of between 1% and 2%, while growing
adjusted EBITA at least twice as fast as sales growth and continuing to
generate strong cash flow before interest and tax of between 70% and 80% of
EBITDA. Moreover, Rexel will complement organic growth with targeted
accretive acquisitions, with a total budget of around 1.5 billion euros over
the 2016-2020 period, while maintaining an attractive dividend policy and
sound financial structure, in line with its cash allocation strategy."

2020 FINANCIAL AMBITIONS
Rexel aims at achievingon average over the next five years(2016-2020) the
following financial targets:

* Organic sales growth, outperforming market growth, with annual growth of
between 1% and 2% on a constant and same-day basis,
* Annual adjusted EBITA growth of at least twice the pace of organic sales
growth,
* Conversion rates of EBITDA into free cash-flow of: * Between 70% and 80%,
before interest and tax, * Between 35% and 45%, after interest and tax.

These financial ambitions take into account a cautious 2016 guidance, as
announced today during the 2015 annual results presentation, and are
conditional upon an economic recovery materializing over the five-year
period.

Rexel also confirms its cash allocation strategy, combining:

* Paying out an attractive dividend of at least 40% of recurring net income,
* Continuing its targeted accretive acquisition strategy, with a total budget
of around €1.5bn over the five-year period,
* Maintaining a sound financial structure, with net debt at or below 3 x
EBITDA at every year-end.

2020 STRATEGIC ROADMAP
Rexel's 2020 financial ambitions are underpinned by a comprehensive strategic
roadmap for profitable growth aiming at positioning Rexel as the value-added
partner of preference for its clients and vendors and enhancing long-term
value creation.

Rexel's 2020 ambition is part of Rexel's broader aspiration to create
sustainable economic, environmental and human value for all its stakeholders
and fully leverage the equity of its "Rexel, a world of energy" brand
proposition.

Rexel's 2020 strategic roadmap for profitable growth is structured around four
business imperatives:

1 Building on a market-leading position to seize growth opportunities

Rexel has a strong franchise as a strategic partner for its suppliers and
customers with leading positions in major geographies and a balanced mix of
end-markets.

In recent years, Rexel has significantly upgraded and invested in its business
model and reinforced its commercial and operational capabilities around the
world, thus creating a unique platform to capitalize on new trends,
technologies and applications:

* The energy transition is generating a broad spectrum of new business
opportunities along the value chain,
* The Internet of Things is turning connectivity into a converging space of
new digitally powered solutions,
* And the drivers of urbanization are changing the landscape of building
renovation and new construction.

Rexel's proven track record and strategic focus in these areas position the
company to outperform the market thanks to targeted investments and enhanced
capabilities.

1 Implementing a differentiating customer-centric strategy

Rexel's implementation of a genuinely customer-centric strategy is
increasingly a source of competitive differentiation.

Rexel has been accelerating its evolution from a branch-centric to a truly
customer-centric multi-channel business model designed around specific
customer segments. This leads to higher contact frequency with customers at
multiple touch points as well as higher transaction value and better service
levels, with increasingly connected customers.

At the same time, Rexel is in a transition from a generalist distributor into
a multi-specialist value-added partner, serving the market in a
differentiated way through six distinct "Customer Delivery Models":

1 Small- and medium-sized contractors and installers (C&Is), for whom Rexel
plays the role of one-stop shop for all electrical needs,
2 Medium- and large-sized contractors and installers (C&Is) and facility
management (FM) companies, for whom Rexel provides supply chain solutions
for electrical sourcing and support in managing complex projects,
3 Electrical specialist, offering segment-specific applications and/or
specification-driven solutions,
4 Industrial automation products and solutions provider, providing high-level
technical support throughout the life-cycle,
5 Industrial customers and Maintenance companies, requiring integrated MRO
supply for cost optimization,
6 Original Equipment Manufacturers (OEMs), offering comprehensive sourcing
and supply chain solutions.

Through these six "Customer Delivery Models", Rexel aims at better serving the
specific needs of its different types of customers, while more effectively
allocating its resources and investments for better return.

1 Driving innovation in marketing, digital and operations

Rexel's 2020 roadmap embraces innovation as a critical success factor and this
heightened focus will be reflected in its capital expenditure.

* On the marketing front, Rexel's new value propositions, ranging from its
Energeasy applications to its industrial automation solutions, as well as
its investments in value-based pricing and project management systems,
confirm the focus on customer-centric innovation.
* In the digital area, a comprehensive e-business platform is in place to
support Rexel's digitally powered multi-channel business model, while new
developments such as Rexel Digital Applications are providing customers
with software-enabled tools to improve productivity.
* In operations, a new IT and Logistics structure is in place and ready to
serve as a springboard to further optimize back-office and supply chain
performance and offer differentiating logistics services.

1 Accelerating profitable growth through targeted M&A

Capitalizing on its track record of acquiring and integrating bolt-on
acquisitions (24 acquisitions since 2012 representing €1.2bn in acquired
sales), Rexel will actively implement a two-pronged M&A strategy aimed at:

* Expanding into new growth areas and/or adjacencies,
* Strengthening its position and/or leveraging scale in core markets.

Rexel intends to accelerate its M&A strategy through targeted accretive
acquisitions with a budget of around €1.5bn over the 2016-2020 period. This
level of investment could generate cumulated additional sales of over €2bn.

ABOUT REXEL GROUP
Rexel, a global leader in the professional distribution of products and
services for the energy world, addresses three main markets - residential,
commercial and industrial. The Group supports its customers 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. Rexel operates through a network of some
2,100 branches in 35 countries, with c. 28,000 employees. The Group's sales
amounted to €13.5 billion in 2015.

Rexel is listed on the Eurolist market of Euronext Paris (compartment A,
ticker RXL, ISIN code FR0010451203). It is included in the following indices:
SBF 120, CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600.
Rexel is also part of the following SRI indices: DJSI Europe, FTSE4Good
Europe&Global, EURO STOXX Sustainability, Euronext Vigeo Europe 120 and ESI
Excellence Europe. Finally, Rexel is included on the Ethibel EXCELLENCE
Investment Register in recognition of its performance in corporate social
responsibility (CSR). For more information, visit Rexel's web site
atwww.rexel.com

Contacts

-------------------------------------------------------------
| Financial Analysts / Investors Press |
| Marc MAILLET Pénélope LINAGE |
|+33 1 42 85 76 12 +33 1 42 85 76 28 |
| marc.maillet@rexel.com penelope.linage@rexel.com |
| Florence MEILHAC Brunswick: Thomas KAMM |
|+33 1 42 85 57 61 +33 1 53 96 83 92 |
| florence.meilhac@rexel.com tkamm@brunswickgroup.com |
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Capital Markets Day
http://hugin.info/143564/R/1985404/728122.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: REXEL via Globenewswire

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Författare WKR

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