REXEL : INVESTOR DAY
(Thomson Reuters ONE) -
UPDATE ON STRATEGY & MEDIUM-TERM FINANCIAL TARGETS
AND ANNOUNCEMENT OF TWO BOLT-ON ACQUISITIONS
Rexel, a global leader in the professional distribution of products and services
for the energy world, is holding an Investor Day today in Paris, during which it
will provide an update on its medium-term strategy and financial targets. In
addition, it is announcing two bolt-on acquisitions.
STRATEGY UPDATE
Staying the course and transforming for success in a changing energy world
Despite headwinds in key markets, Rexel has demonstrated continued resilience in
performance and made significant progress in the implementation of its "Energy
in Motion" company plan announced in May 2012.
Rexel's roadmap is structured around four business imperatives:
1. Accelerating strategic high-growth initiatives
The strategic high-growth initiatives presented in May 2012 have proven their
relevance and Rexel will continue to develop:
* High-potential business categories, in particular Energy Efficiency,
Building Automation (incl. Home Automation) and Renewable Energies,
* International customers and projects,
* Dedicated vertical markets, specifically Oil & Gas and Mining.
With the exception of Renewable Energies and Mining, which have been negatively
impacted by changes in government policies and adverse market conditions, all
other segments have significantly outperformed the market and posted high
single- to double-digit growth.
2. Enhancing customer-centricity for mainstream organic growth
Rexel continues to roll-out its customer-centricity model through advanced and
innovative methods and tools to:
* Provide customized project solutions,
* Implement multi-channel customer relationship management,
* Create competitive differentiation through e-business.
Through this customer-centricity model, Rexel aims to broaden its active
customer base, to multiply the number of touch points per customer and to
increase the number and value of transactions per touch point. This will drive
both sales and margin growth in the mainstream electrical distribution business.
3. Boosting growth through targeted acquisitions
Acquisitions remain a key driver, with around ?650 million invested since the
beginning of 2012. Two strategic acquisitions, Platt and Munro, significantly
expanded the Group's footprint in the key US market as well as its Energy
Efficiency portfolio, while other bolt-on acquisitions in Europe, Asia and Latin
America also contributed as part of a focused M&A strategy to:
* Gain market share and develop synergies in key mature countries,
* Increase footprint in developing markets,
* Extend portfolio of value-added services in key vertical markets.
4. Driving operational excellence as an enabler for profitable growth
While the Group remains focused on gross margin discipline and tight cost
control, Rexel's program to structurally embed operational excellence is well
underway and covers organizational simplification, further harmonization and
consolidation of its IT platform, accelerated optimization of its logistics
network and supply chain effectiveness measures. Through the combination of
these initiatives, Rexel targets a continuous improvement in customer service,
asset utilization and cost productivity.
MEDIUM-TERM FINANCIAL TARGETS
By accelerating its strategic high-growth initiatives and deploying its
customer-centricity model in its mainstream electrical distribution business,
Rexel's organic sales growth will outperform the markets in which it operates.
In addition, Rexel will remain a leading market consolidator, allocating an
average annual budget of around ?500 million to acquisitions, which will
contribute on average 3% to 5% of additional sales per annum.
On the basis of a gradual recovery in sales, combined with its capability to
generate c. 10 basis points of EBITA margin improvement for each percentage
point of sales growth, Rexel targets an adjusted EBITA margin of around 6.5% in
the medium-term (between 3 and 5 years, depending on the speed and strength of
the recovery in the Group's key markets).
Thanks to the low capital intensity of its business model and effective working
capital management, Rexel will continue to generate strong free cash-flow before
interest and tax of at least 75% of EBITDA and after interest and tax of around
40% of EBITDA, allowing continued investment in acquisitions and the payment of
an attractive dividend to shareholders representing at least 40% of recurring
net income.
Rexel also reiterates its commitment to a sound and balanced financial
structure, with a net-debt-to-EBITDA ratio not exceeding 3 times.
TWO BOLT-ON ACQUISITIONS
Rexel also announces two acquisitions that expand its footprint in Asia and
accelerate the development of its high-growth initiatives.
Acquisition of QT Lighting in Thailand, allowing Rexel to become the Nr. 3
player in one of the most attractive markets in Asia
Based in Bangkok, QT Lighting is one of the largest electrical distributors in
the fast-growing Thai market. With 5 branches spread throughout Thailand, QT
Lighting mainly addresses the industrial and commercial end-markets with a
strong focus on OEM, MRO and Lighting. QT Lighting generated sales of c. 35
million euros in the last fiscal year. The transaction, subject to customary
conditions, should close on November 29.
Acquisition of Esabora in France, accelerating the development of value-added
digital solutions
Esabora is a French company editing advanced software tools for electrical
contractors and installers. This acquisition will provide Rexel's customer base
with innovative solutions to accelerate growth in Energy Efficicency and
Building Automation. Esabora complements the 2011 acquisition of Inoveha and
will contribute to the creation of a digital platform accelerating Rexel's
transformation from a product distributor to a solution provider. Esabora
generated sales of c. 2 million euros in the last fiscal year. The transaction,
subject to customary conditions, should close in January.
Rudy PROVOOST, Chairman of the Management Board and CEO, said:
"Through the systematic implementation of its "Energy in Motion" plan, Rexel is
demonstrating resilience in performance and staying the course in transforming
the company for success in a changing energy world. Over the medium-term, we are
committed to further strengthening our market position through a combination of
organic and external growth, and to increasing our adjusted EBITA margin to a
level of around 6.5%. We will continue to generate strong cash-flow in order to
maintain an attractive dividend policy and invest in M&A, while maintaining a
solid financial structure. By accelerating our strategic high-growth
initiatives, capitalizing on our customer-centricity model for mainstream
growth, boosting external growth and enhancing operational excellence, we are
confident that we are focused on the right drivers for sustained value creation
for all stakeholders."
Rexel, a global leader in the professional distribution of products and services
for the energy world, addresses three main markets - industrial, commercial and
residential. The Group supports customers around the globe, wherever they are,
to create value and run their businesses better. With a network of some 2,300
branches in 37 countries, and over 31,000 employees, Rexel's sales were ?13.4
billion in 2012. Its main shareholders are an investor group led by Clayton,
Dubilier & Rice, Eurazeo and BAML Capital Partners.
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, STOXX
Europe Sustainability, EURO STOXX
Sustainability, Euronext Vigeo Europe 120 and ESI Excellence Europe. Finally,
Rexel is included on the Ethibel EXCELLENCE Investment Registers in recognition
of its performance in corporate social responsibility (CSR). For more
information, visit Rexel's web site at www.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(at)rexel.com | penelope.linage(at)rexel.com
+--------------------------------+---------------------------
| Florence MEILHAC | Brunswick: Thomas KAMM
+--------------------------------+---------------------------
| +33 1 42 85 57 61 | +33 1 53 96 83 92
+--------------------------------+---------------------------
| florence.meilhac(at)rexel.com | tkamm(at)brunswickgroup.com
| |
INVESTOR DAY:
http://hugin.info/143564/R/1745717/587560.pdf
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Source: REXEL via GlobeNewswire
[HUG#1745717]
Unternehmensinformation / Kurzprofil:
Datum: 26.11.2013 - 07:30 Uhr
Sprache: Deutsch
News-ID 320243
Anzahl Zeichen: 11187
contact information:
Town:
Paris
Kategorie:
Business News
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