1.
Rexel, a world of energy
Group Communications Dpt: 4 October 2013
Rexel, global leader in the professional distribution of products and services for the energy world Rexel’s mission is to support customers around the globe, wherever they are, to create value and run their business better, by providing a broad range of sustainable and innovative products and services for automation, technical supply and energy management.
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Summary Rexel’s values and commitments
Rexel, at a glance ›
Key highlights 2012
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The Rexel Values
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A pivotal role in the value chain
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Rexel‟s commitment to sustainable development
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A worldwide network
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The Environment
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A strong track record of growth
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Social Responsibility
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The Rexel Foundation for a better energy future
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Corporate Governance
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A balanced shareholders base
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Rexel‟s commitments to all stakeholders
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Rexel’s strategic priorities ›
Energy in Motion: Rexel‟s company plan
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2015 objectives and financial targets
p. 10
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Accelerating external growth
p. 11
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3 drivers of organic growth
p. 12
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High-potential business categories
p. 13
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International projects and key accounts
p. 14
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Vertical markets
p. 15
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A multi-channel business model
p. 16
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A robust logistics organization
p. 17
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Driving asset productivity
p. 18
p. 9
Key highlights 2012 Key 2012 Results
Present in 37 countries
Sales (pro forma basis): €13.4Bn
n°1 in Asia-Pacific n°2 in Europe and North America
A network of over 40 banners worldwide 2,300 branches
Operating income before other income and expenses (EBITA): €767M Gross margin: at 24.6% of sales
140 logistics centres
Free cash-flow before interest and tax paid: €627M
31,000 employees
Balance of end-markets (2012 sales)
Diversified geographic spread
(2012 sales)
2% Industrial Commercial Residential
23%
10% 32%
33%
North America Europe
44%
56%
Asia Pacific Latin America
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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
Proximity to CUSTOMERS BALANCED END-MARKETS – 37 COUNTRIES
A WIDE RANGE OF PRODUCTS
SUPPLIERS Lighting
ENERGY PROVIDERS
Home Automation Security and communication Industrial equipment Smart products
LARGE INSTALLERS
Climate control
Comprehensive Offering (one-stop shop)
SUPPLY CHAIN
ELECTRICAL CONTRACTORS
Cables
SERVICES Renewables
AND
ADVICE
(energy audits)
RESIDENTIAL Social and private housing COMMERCIAL Offices, hotels and hospitals INDUSTRY Automotive, oil&gas and mining
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A worldwide network N°1 position Asia Pacific: 10% of Group sales Australia, China, India, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Thailand, Vietnam
N°2 position North America: 32% of Group sales Canada, United States
N°2 position Europe: 56% of Group sales Austria, Belgium, Czech Republic, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Latin America: 2% of Group sales
■ #1 or #2 market position
Brazil, Chile, Peru
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A strong track record of growth Transformational acquisitions
Launch of Energy in Motion, the new Rexel company plan
Two major acquisitions: GE Supply (2006) and Hagemeyer (2008) Sales double 2005: Rexel acquired by Ray Investment* IPO (2007)
A dynamic start Founded in 1967 as CDME First expansion in Europe and the US
Accelerating organic growth through International customers and projects Vertical markets (Oil&Gas…) High-potential business categories linked to energy efficiency and building automation
Part of the PPR group
1967-1990
1990-2003
2004-2008
A decade of growth Operations launched in the AsiaPacific region and Eastern Europe Sales development with proven resilience and sustainable profitability
1993: launch of the Rexel brand
2009-2011 Upgraded business model From product distributor to solutions provider Expansion in emerging markets with acquisitions in Brazil, India and Peru Growth in energy efficiency markets
*Consortium mainly composed of Clayton, Dubilier & Rice, Eurazeo, BAML Capital Partners
2012-2015 A new phase in the Group’s development… 2013: The Rexel brand celebrates its 20th anniversary
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2.
Rexel’s strategic priorities
Energy in Motion, Rexel’s company plan, is based on four strategic priorities, which support the Group’s future ambitions and capitalize on its current assets PROFITABLE GROWTH
Profitably grow both organically and through acquisitions New high-potential business categories (energy efficiency, building automation…), verticals (oil& gas, mining…), large projects and key accounts
EXCELLENCE IN OPERATIONS
ACTIVE RESOURCES MANAGEMENT
Effectively execute with operational excellence Cost productivity, supply chain, e-commerce, customer support
Actively manage resources for increasing returns Driving asset productivity and turning customer insights into the best service offer
CULTURE OF COOPERATION
Closely cooperate for mutual success with all our stakeholders
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2015 objectives and financial targets
Focus on drivers to boost organic growth
Reinforce operational excellence
Maintain financial discipline
Continue to drive consolidation
Enhance organizational effectiveness
Optimize assets and resources allocation
Above average market growth
Adjusted EBITA* margin above 6.5%
Free cash-flow after int. & tax above â‚Ź500m
* EBITA: Earnings Before Interest, Taxes and Amortization
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Accelerating external growth A three-pronged M&A* strategy Consolidating market share in key mature markets (Europe and North America) Expanding in fast-growing markets (Latin America and Asia) Seizing opportunities to extend offer of value-added services
Sustained M&A activity since 2005 through 58 acquisitions
~6.2b€ annualized sales
2005-2008 • Acquisition of 31 companies • 2 transforming acquisitions (Gexpro, Hagemeyer) • 5 mid-size and 24 bolton acquisitions
~120m€ annualized sales
2009-2010 • Acquisition of 5 companies (1 mid-size and 4-bolt-ons) • Tactical acquisitions in Europe and China
~830m€ annualized sales
~280m€ annualized sales
2012
2011 • Acquisition of 10 companies (2 mid-size and 8 bolt-ons) • Entry into India, Brazil and Peru • Reinforced positioning in China
• Acquisition of 12 companies (4 mid-size and 8 bolt-ons) • Strengthened market share in US • Broadened footprint in Latin America
M&A: Mergers & Acquisitions
Mid term • Continue to support acquisition strategy to fuel profitable growth • Annual budget of €500m on average in acquisitions
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Accelerating organic growth through 3 drivers These three drivers will post double-digit annual growth on average between 2011 and 2015 (in â‚Źm)
High-potential business categories (Energy efficiency, building automation‌)
International customers and projects (IPG, IKA)
Vertical markets (Oil & Gas and Mining)
TOTAL
2011
2015
2015 vs 2011 CAGR*
798
1,300
13.0%
577
880
11.1%
490
680
8.6%
1,864
2,860
11.3%
* CAGR: Compound Annual Growth Rate
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Focusing on high-potential business categories through energy efficient products and services 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
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Serving international projects and key accounts
Rexel IPG: PROJECT CENTRIC A global commercial platform for EPC* companies Dedicated team and 15 execution centers Providing best-in-class supply chain consolidation and sourcing capabilities
Rexel IKA: CUSTOMER CENTRIC Committed partnerships with Industrial customers Large contractors
A strong business platform leveraging sales support across the globe
* EPC: Engineering, procurement and construction
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A specialized approach to vertical markets - Hospitality and entertainment - Utilities - Retail
Our key 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
‌with specific considerations
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 P. 15
A multi-channel business model Offering a variety of routes to customer
Branch
Call center Mobile app
CUSTOMER
Sales rep
Webshop
EDI
In 2012, over â‚Ź1.5bn sales conducted via e-commerce (web and EDI) representing 12% of Group sales P. 16
A robust logistics organization 140 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 To consistently optimize assets and fully leverage capabilities within the Group
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
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3.
Rexel’s values and commitments
The Rexel Values Rexel’s employees are committed to applying six core values to their everyday work and interactions with the Group’s stakeholders
Deliver the best customer experience
Join forces for success
Encourage to innovate
Engage people to develop their talents
Enjoy making a difference
Trust each other
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Rexel’s commitment to sustainable development 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
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 and resource consumption at our facilities reducing our transport-related carbon emissions
Social responsibility: supporting our employees promoting safety and well-being in the workplace supporting employee career development rewarding employees for their contribution to the Groupâ€&#x;s success
The Rexel Foundation for a better energy future: promoting access to energy efficiency for all increasing awareness and knowledge of energy efficiency issues engaging in philanthropic projects and initiatives to support local communities
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The environment: Rexel’s own committment Rexel recognizes that promoting environmental responsibility needs to start at home and we are committed to:
Consolidating the monitoring of our environmental impact Global reporting organization across 37 countries First Group Carbon Footprint Assessment in 2010 Proprietary Group Environmental Management System Standard - Certification policy ISO 14001
Improving energy efficiency and resource consumption at our facilities 5% reduction in the Group‟s electricity consumption between 2011 and 2012 Extensive lighting retrofit project across 65 sites in the USA Replacement of cardboard packaging with plastic containers
Reducing our transport-related carbon emissions 13% projected decrease in fuel consumption between 2010 and 2014 by upgrading the vehicle fleets of our European subsidiaries 22% reduction in greenhouse gas emissions of Rexel‟s fleet used in products transportation between 2010 and 2011
Recovering waste and collecting WEEE* for recycling 72% of Rexel‟s branches collected WEEE from customers in 2012
* WEEE: Waste Electrical and Electronic Equipment
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Social responsibility: supporting our employees *72% of Rexel’s employees would recommend Rexel as a good place to work (+2%) Driven by a strong entrepreneurial spirit, our employees are the building blocks of our success. Promoting safety and well-being in the workplace 38% of employees trained in safety 5 000 employees across 11 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 2012
Rewarding employees for their contribution to the Group’s performance Employee share purchase programs in 2007, 2010 and 2012 55% of our workforce receive performance related compensation
* According to the most recent Rexel Group employee opinion survey „Satisfaxion13‟
An ethical approach 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
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The Rexel Foundation for a better energy future Improve understanding and raise awareness of energy efficiency Publication of research studies
Organization of conferences and workshops
Encourage innovation through research programs and educational projects Provision of grants for young researchers working in the field of energy efficiency
Support charitable community-based projects which improve access to energy efficiency for all Education, vocational training and the improvement of social housing Long term partnerships with associations, public institutions, NGOs and business partners
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Aiming for best-in-class corporate governance Supervisory Board
Executive committee
Roberto Quarta, Chairman/CD&R Patrick Sayer, Deputy Chairman/Eurazeo Manfred Kindle, CD&R David Novak, CD&R Eurazeo, represented by Marc Frappier Angel L. Morales, BAML Akshay Singh, BAML
Rudy Provoost Chairman of the Management Board
Catherine Guillouard CFO and Group SVP
Franรงois David, independent member Fritz Frรถhlich, independent member
Pascal Martin Group Senior Vice President, Corporate Strategy, Business Portfolio Management and New Business Development
Jean-Dominique Perret Group Senior Vice President Human Resources, Group Delegate for International Businesses
USA
Canada
Chris Hartmann Executive Vice President and CEO USA
Jeff Hall Senior Vice President and CEO Canada
Vivianne Akriche, Eurazeo Thomas Farrell, independent member Pier Luigi Sigismondi, observer
Management Board Rudy Provoost Chairman of the Management Board and CEO Catherine Guillouard CFO and Group SVP
Pascale Giet Group Senior Vice President Communications and Sustainable Development
Southern Europe
Peter Hakanson Group Senior Vice President Operations
Northern Europe
Central and Eastern Europe
Asia- Pacific
Michel Klein Senior Vice President Central & Eastern Europe
Mitch Williams Senior Vice President Asia-Pacific
Pascal Martin Group Senior Vice President, Corporate Strategy, Business Portfolio Management and New Business Development
Patrick Berard Senior Vice President Southern Europe
Henri-Paul Laschkar Senior Vice President Northern Europe
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A balanced shareholder base Listed on Euronext since 2007 (At 8th August 2013)
0.7% 11.0% 23.6% 73.8%
15.0%
38.0%
1.9%
Ray Investment Management and employees Free float Treasury Shares
36.0%
Clayton Dubilier & Rice: 36.0% Eurazeo: 38.0% BAML Capital Partners: 15.0% CDPQ: 11.0%
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A strong commitment to all stakeholders With over 50,000 product references available through a variety of sales channels for next-day delivery across 37 countries worldwide: we aim to be the brand of choice for our customers
With a network of 2,300 branches, 140 logistics centers and a dedicated sales force in energy management: 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
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