Rexel Group Press Book - Rexel UK
Rexel Group Press Book - Rexel UK
Rexel Group Press Book - Rexel UK
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<strong>Rexel</strong><br />
A World of Energy<br />
2013 <strong>Press</strong> Kit
<strong>Rexel</strong><br />
A COMPANY ON THE MOVE<br />
p.3<br />
A forward-looking plan<br />
ENERGY IN MOTION,<br />
AMBITIOUS OBJECTIVES FOR 2015<br />
Profitable growth<br />
Active resources management<br />
Culture of cooperation<br />
Excellence in operations<br />
p.5<br />
A partner of choice<br />
EXPERTISE AND EXCELLENCE TO<br />
CREATE VALUE FOR CUSTOMERS<br />
Supporting all projects, everywhere in the world<br />
Ensuring optimal accessibility through a multi-channel approach<br />
Innovating and customizing to achieve supply chain excellence<br />
Joining forces with suppliers<br />
p.7<br />
Customized product packages and solutions<br />
ANTICIPATION AND INNOVATION<br />
TO DEVELOP THE SOLUTIONS OF TOMORROW<br />
Customized technical responses to the changing energy landscape<br />
Tailored solutions for each market<br />
p.12<br />
A responsible, long-term commitment<br />
CORPORATE SOCIAL RESPONSIBILITY<br />
TO SUPPORT GROWTH<br />
Becoming a benchmark employer by making the difference<br />
Optimizing energy performance to lead by example<br />
The <strong>Rexel</strong> Foundation for a better energy future<br />
p.16
<strong>Rexel</strong><br />
A company on the Move<br />
A global leader in the professional distribution of products and services for the energy world,<br />
<strong>Rexel</strong> plays a pivotal role in providing energy efficiency in the built environment (across<br />
residential, commercial and industrial buildings). <strong>Rexel</strong> provides the link between all the major<br />
stakeholders in the sector, from the utility companies and manufacturers to electrical<br />
contractors and, installers and the final consumer. <strong>Rexel</strong> supports hundreds of thousands of<br />
business customers in 37 countries, helping them to create value with solutions that enhance<br />
productivity and comfort.<br />
Over the past few years, <strong>Rexel</strong> has enhanced its operating excellence, doubled in size and<br />
strengthened its performance.<br />
A company that delivers results<br />
With sales of €13.4 billion, EBITA of €767 million and net income of €319 million in 2012,<br />
<strong>Rexel</strong> has developed its positions in mature markets while continuing to expand in high<br />
growth markets.<br />
A company with clear ambitions<br />
In 2012, <strong>Rexel</strong> presented Energy in Motion, its new forwardlooking company plan. This<br />
customer centric roadmap sets objectives for 2015 and clearly expresses <strong>Rexel</strong>’s ambition to<br />
expand its leadership and enhance its local presence with strategic partners.<br />
The company is activating four strategic levers to accelerate its development:<br />
<br />
<br />
<br />
<br />
Profitable growth, both organically and through acquisitions.<br />
Active resource management.<br />
A culture of cooperation.<br />
Excellence in operations.<br />
Sales by region (in %)<br />
KEY FACTS &<br />
FIGURES<br />
10 2<br />
32<br />
Europe<br />
Asia-Pacific<br />
56<br />
North America<br />
Latin America<br />
<br />
<br />
<br />
<br />
Sales of €13.4 billion<br />
31,000 employees<br />
2,300 sales outlets<br />
Operations in 37 countries<br />
Estimated global market share<br />
close to 8%<br />
<br />
40 banners<br />
140 supply chain distribution<br />
structures<br />
<br />
33%-owned by an investment fund<br />
consortium comprising Clayton<br />
Dubilier & Rice, Eurazeo and Bank<br />
of America Merrill Lynch Capital<br />
Partners.<br />
3
A provider of customized solutions<br />
<strong>Rexel</strong> serves three main markets:<br />
Residential, with solutions to enhance energy<br />
efficiency, comfort, safety, home automation and<br />
more.<br />
Industrial, with expertise around the world to equip<br />
facilities and optimize their energy performance.<br />
Commercial, with solutions for shopping centers,<br />
sports facilities, hospitals, airports and other<br />
buildings. <strong>Rexel</strong> supplies the general and<br />
specialized contractors who equip these diverse<br />
customers, who are often focused on improving<br />
energy efficiency.<br />
A partner of choice<br />
58% of <strong>Rexel</strong>’s 31,000 employees are in direct<br />
contact with professional customers through the<br />
company’s 2,300 sales outlets in 37 countries.<br />
These customers include:<br />
Electricians<br />
Service companies<br />
Manufacturers<br />
Retailers and DIY superstores<br />
A partner of choice for contractors, key accounts<br />
and manufacturers, <strong>Rexel</strong> has the unique ability to<br />
provide the same level of quality and attention to<br />
all customers, from local electricians to major<br />
contractors, to large industrial firms.<br />
Strong partnerships with<br />
SUPPLIERS<br />
Proximity to our<br />
CUSTOMERS<br />
A WIDE RANGE OF PRODUCTS<br />
ENERGY<br />
PROVIDERS<br />
Lighting<br />
Home<br />
Automation<br />
Industrial<br />
equipment<br />
Smart<br />
products<br />
SUPPLIERS<br />
Climate<br />
control<br />
Security and<br />
communication<br />
Cables<br />
Renewables<br />
Comprehensive SUPPLY CHAIN<br />
Offering (one-stop shop)<br />
ADVICE<br />
SERVICES<br />
(energy audits)<br />
BALANCED END-MARKETS– 37 COUNTRIES<br />
LARGE<br />
INSTALLERS<br />
AND<br />
ELECTRICAL<br />
CONTRACTORS<br />
RESIDENTIAL<br />
Social and<br />
private housing<br />
COMMERCIAL<br />
Offices, airports<br />
and hospitals<br />
INDUSTRY<br />
Automotive,<br />
oil&gas and<br />
mining<br />
4
Energy in Motion,<br />
Ambitious Objectives for 2015<br />
With growth as its key focus, <strong>Rexel</strong> develops its strategy on the basis of an ambitious<br />
company plan called Energy in Motion. This chapter in <strong>Rexel</strong>’s success story includes four<br />
strategic priorities that will create value for all stakeholders.<br />
1. Profitable growth<br />
Objective accelerate profitable growth by:<br />
<br />
Promoting organic growth in three core areas:<br />
- High potential business categories related to energy efficiency.<br />
- Key accounts and international projects.<br />
- Vertical markets, notably oil & gas and mining.<br />
Together, these three areas are expected to achieve double-digit average annual growth, generate<br />
more than €1 billion in additional sales between 2011 and 2015, and account for 20% of total sales<br />
in 2015.<br />
<br />
Devoting around €500 million a year between 2012 and 2015 to an active acquisitions policy<br />
designed to:<br />
- Win new market share and generate synergy in key mature markets.<br />
- Strengthen <strong>Rexel</strong>’s presence in high growth markets.<br />
- Broaden the company’s portfolio of value-added services and presence in key vertical markets.<br />
2. Active resource management<br />
Objective optimize the use of assets and allocation of resources to increase return on<br />
investment by:<br />
<br />
<br />
<br />
<br />
Unleashing team members’ potential, notably by developing specific skills, with experts specialized<br />
in business development, marketing and key account management and dedicated technicalcommercial<br />
teams.<br />
Improving asset productivity by carefully managing commercial assets, enhancing the organization<br />
and allocating more resources to the three levers of organic growth.<br />
Capitalizing on the value of the <strong>Rexel</strong> brand.<br />
Using the organization's knowledge and understanding of customer needs to develop competitive<br />
service offerings.<br />
The following values guide the way <strong>Rexel</strong> acts and interacts with<br />
stakeholders:<br />
<br />
<br />
<br />
<br />
<br />
<br />
Deliver the best customer experience.<br />
Join forces for success.<br />
Encourage to innovate.<br />
Engage people to develop their talents.<br />
Trust each other.<br />
Enjoy making a difference.<br />
5
3. Culture of cooperation<br />
Objective leverage capabilities and synergies across the <strong>Group</strong> and foster value-creating<br />
partnerships with key suppliers and customers by:<br />
<br />
<br />
<br />
<br />
Encouraging teamwork.<br />
Developing quality relationships with customers.<br />
Managing strategic partnerships with key suppliers.<br />
Keeping commitments to shareholders.<br />
4. Excellence in operations<br />
Objective enhance productivity and service levels to drive commercial effectiveness and<br />
supply chain performance.<br />
To achieve this objective, <strong>Rexel</strong> is rolling out an improved performance platform covering all<br />
aspects from supply chain optimization to e-commerce, which is expected to account for at<br />
least 15% of sales by 2015.<br />
REXEL’S MISSION<br />
<strong>Rexel</strong>’s mission is to support customers around the globe,<br />
wherever they are, to create value and help them run their<br />
businesses better by providing a broad range of sustainable and<br />
innovative products and services for automation, technical<br />
supply and energy management.<br />
FINANCIAL TARGETS FOR 2015<br />
Organic growth (excluding the impact of copper) between 2011 and 2015 should<br />
outperform the weighted average GDP growth of the regions in which the <strong>Group</strong><br />
operates by around two percentage points, thanks to a stepped-up demand for energy<br />
efficiency and the deployment of the Energy in Motion plan.<br />
Acquisitions should contribute between 3% and 5% of additional annual sales on<br />
average between 2011 and 2015.<br />
In 2015, adjusted EBITA margin should be above 6.5%<br />
Free cash flow after interest and tax should exceed €500 million in 2015.<br />
6
Expertise and Excellence to Create<br />
Value for Customers<br />
<strong>Rexel</strong> owes its market leadership to its ability to offer the very best customer experience. A<br />
global company and local partner, <strong>Rexel</strong> knows how to develop high value-added solutions<br />
for all of its customers.<br />
Everyone at <strong>Rexel</strong> is committed to continuously improving customer service and to:<br />
Supporting all projects, everywhere in the world.<br />
Ensuring optimal accessibility through a multi-channel approach.<br />
Innovating and customizing to achieve supply chain excellence.<br />
Joining forces with supplier partners to achieve success.<br />
<strong>Rexel</strong>’s unique business model and innovative methods make the difference.<br />
Local electricians and large global contractors alike find the right level of<br />
service at <strong>Rexel</strong> thanks to our local branch sales teams and international<br />
project managers. Our goal is to respond to our customers’ precise needs<br />
and support them with our innovative services.<br />
Pascal Martin, <strong>Group</strong> Senior Vice President, Corporate Strategy, Business Portfolio<br />
“Management and New Business Development<br />
”<br />
1. Supporting all projects, everywhere in the world<br />
Thanks to its wide-reaching, interconnected network, <strong>Rexel</strong> can provide the same level of<br />
attention and quality of service to all of its customers. This can mean advising and supplying a<br />
multi-national retail chain that wants to save energy and renovate the lighting in its sales<br />
outlets, delivering a specific solution to an electrician within 24 hours at one of <strong>Rexel</strong>’s 2,300<br />
branches, supporting the deployment of a windfarm project in Canada or supplying electrical<br />
equipment to a mine in Chile at an altitude of 3,200 meters.<br />
“ ”<br />
We listen closely to our customers to constantly improve our service and<br />
identify the best solutions to help them create value.<br />
Jérémy de Brabant, Senior Vice President Customer Development<br />
7
Multi-local presence<br />
With operations in 37 countries, <strong>Rexel</strong> is developing its network and local presence through<br />
an active strategy of acquisitions. This growth drive is allowing <strong>Rexel</strong> to expand or enhance<br />
its presence in strategic regions and provide even more comprehensive service to<br />
international customers.<br />
The company has made numerous acquisitions in Brazil, India and China since 2011 while<br />
continuing to intensify its presence in mature markets. In May 2012 for example, <strong>Rexel</strong><br />
acquired Platt Electric Supply, a leading independent electrical equipment wholesaler in the<br />
western United States.<br />
In all, a total of 23 companies were acquired between 2010 and 2012, eleven of them in highgrowth<br />
countries and ten in mature markets. Together, they should lift annual sales by 3% to<br />
5% on average between 2011 and 2015.<br />
A key partner for exceptional projects<br />
In addition to its network and sales outlets, <strong>Rexel</strong> has developed two levels of support for<br />
international projects, the first focuses on megaprojects and international contracts (<strong>Rexel</strong><br />
International Projects <strong>Group</strong>, or IPG) and the second on key accounts (International Key<br />
Accounts, or IKA).<br />
Through <strong>Rexel</strong> IPG, created in 2009, <strong>Rexel</strong> is positioned as a key partner for large<br />
contractors on international projects. IPG supports the deployment of large projects in all<br />
locations with its strategic capabilities, which include upstream advice on specifications, and<br />
operational expertise (supply, storage and on-site teams to coordinate the project). <strong>Rexel</strong><br />
works on megaprojects with major international construction and engineering firms such as<br />
Bechtel, Fluor, Technip and Shaw.<br />
A strategic partner for international customers<br />
<strong>Rexel</strong> offers end-to-end support through <strong>Rexel</strong> IKA for key accounts that need products and<br />
services for their projects and operations. The company leverages its network of local<br />
banners and sets up customized organizations wherever necessary for its customers, be they<br />
large contractors, manufacturers or equipment makers.<br />
€1 billion<br />
Additional sales expected from high-growth markets between 2011 and 2015.<br />
These countries should account for more than 10% of total sales in 2015.<br />
€880 million<br />
Forecast sales through <strong>Rexel</strong> IPG and <strong>Rexel</strong> IKA in 2015.<br />
8
In 2011, <strong>Rexel</strong> IPG was awarded the contract to<br />
supply Pascua Lama, one of the largest gold<br />
mine projects in Latin America. On site, <strong>Rexel</strong><br />
team members handle purchasing, logistics and<br />
electrical equipment coordination with the<br />
service providers.<br />
The Pascua Lama mines where <strong>Rexel</strong> is<br />
supplying the worksite of one of Latin<br />
America's largest gold mines.<br />
2. Ensuring optimal accessibility through a multi-channel<br />
approach<br />
For many years, <strong>Rexel</strong> has operated through a variety of strategically related sales channels,<br />
including branches, call centers, e-commerce platforms and mobile applications. By<br />
continuously anticipating customers' new sourcing habits and developing innovative channels,<br />
<strong>Rexel</strong> ensures maximum availability and accessibility for customers and makes the most of its<br />
suppliers' offerings. In short, everyone wins.<br />
Deployment of a global web platform<br />
In 2012, <strong>Rexel</strong> decided to converge the online purchasing systems of nine of its banners<br />
worldwide in a single web platform. The move produced tangible results, with an 8% increase<br />
in 2012 sales. At the same time, <strong>Rexel</strong> launched banner specific online stores accessible by<br />
smartphones in a number of countries, including France, Canada, Austria and Belgium.<br />
Creation of dedicated competence centers<br />
For specific needs, <strong>Rexel</strong> also uses dedicated competence centers in its commercial<br />
relationship with customers, notably in Germany.<br />
Implementation of electronic data interchange (EDI) systems<br />
These systems, used for key accounts, make it possible for <strong>Rexel</strong>’s information systems to<br />
exchange data easily with customer systems, eliminating the need to send documents and<br />
input data. The numerous advantages include just-in-time inventory management, reliability,<br />
security and prevention of cost overruns.<br />
<strong>Rexel</strong>, Michelin’s exclusive electrical equipment supplier<br />
In 2011, Michelin selected <strong>Rexel</strong> as its exclusive electrical equipment supplier. With more<br />
than 90 sites to be supplied in eight countries, Michelin is currently one of <strong>Rexel</strong>'s largest<br />
customers. To serve this account efficiently and optimize the supply process, a large-scale<br />
logistics system has been deployed for end-to-end management, from order booking (using<br />
online catalogues via e-commerce sites) to delivery (with order tracking and key performance<br />
indicators).<br />
9
40 online stores<br />
<strong>Rexel</strong> had 40 online stores in 2011,<br />
including three new sites in Spain, Italy<br />
and the <strong>UK</strong> and eight revamped sites in<br />
Canada, the Netherlands, Sweden and<br />
Austria.<br />
28%<br />
Percentage of sales generated online in<br />
Austria in 2012, up 40% from 2011.<br />
“<br />
We are committed to offering the<br />
best possible customer experience,<br />
whether in-store, on the phone or<br />
over the Internet. We want to deliver<br />
the same level of customer<br />
satisfaction no matter what the<br />
interface.<br />
Peter Hakanson,<br />
<strong>Group</strong> Senior Vice President,<br />
Operations<br />
”<br />
3. Innovating and customizing to achieve supply chain<br />
excellence<br />
With 2,300 sales outlets, customers located around the world and an average 45,000 SKUs<br />
(of which 35,000 available for next-day delivery), <strong>Rexel</strong> has not just one, but several supply<br />
chain organizations and solutions. The company’s pride and strength is its ability to serve all<br />
customers in all locations worldwide, with the same level of quality. Thanks to three<br />
innovative, modular solutions and its supply chain excellence, <strong>Rexel</strong> is able to guarantee<br />
product availability and create value for customers.<br />
A supply chain that adapts to different regions and types of customers<br />
<strong>Rexel</strong> has deployed a supply architecture suited to the specific characteristics of its markets<br />
by leveraging a tested system based on achieving the right distance between customer and<br />
supplier locations worldwide.<br />
In order to be close enough to customers to serve them quickly, <strong>Rexel</strong> has determined that a<br />
distribution center should be able to cover requests within a 350km radius.<br />
The company has organized its supply chain with different configurations to reflect its diverse<br />
customer base, which ranges from large and small contractors to manufacturers needing<br />
maintenance for their operations, and to ensure optimal inventory management. This system<br />
includes, on the one hand, national or local logistics hubs (or large branches serving as<br />
logistics hubs) that receive items from suppliers and serve both customers and local<br />
branches, and, on the other, stand-alone branches that take deliveries from suppliers directly<br />
and respond to customer needs.<br />
<strong>Rexel</strong> has the ability to devise dedicated solutions for large projects by setting up temporary<br />
supply chain facilities on site.<br />
Innovative services for customers of all sizes<br />
Electricians and small contractors can drop by a branch early in the morning to pick up orders<br />
placed the day before.<br />
Large contractors can have their orders delivered to a branch or directly to a worksite.<br />
Manufacturers and commercial firms can be supplied on a regular basis to cover ongoing<br />
maintenance and repair needs.<br />
10
50,000 SKUs 140 supply chain<br />
Number of SKUs available on<br />
distribution structures (of which 9 in France) and<br />
average for next-day delivery thanks<br />
2,300 branches<br />
to <strong>Rexel</strong>’s supply chain excellence<br />
in<br />
and quality logistics services.<br />
37 countries<br />
“ ”<br />
By making agility its supply chain priority, <strong>Rexel</strong> optimizes flows among its 140<br />
supply chain distribution structures (nine of which are in France) and 2,300<br />
branches in 37 countries.<br />
Xavier Derycke, <strong>Group</strong> Supply Chain Director<br />
4. Joining forces with suppliers<br />
Backed by a powerful culture of cooperation, <strong>Rexel</strong> has always forged strong partnerships<br />
with the different players in its industry. Working as a team in a spirit of mutually beneficial<br />
cooperation is the key to shared success.<br />
Building preferred supplier relationships<br />
With a purchasing volume of €10.7 billion in 2012, <strong>Rexel</strong> has built its supplier relations around<br />
a small number of strategic suppliers, chosen for their global reach or for their impressive<br />
development potential. Active management of the supplier portfolio at the <strong>Group</strong> level has<br />
gradually concentrated purchasing. In 2012, <strong>Rexel</strong> made more than 50% of its purchases<br />
from 25 key suppliers.<br />
Using performance indicators to continuously improve service<br />
To measure and continuously improve service quality, <strong>Rexel</strong> has initiated a performance<br />
indicator-based Service Level Agreement (SLA) program defined jointly with suppliers. The<br />
SLA covers such aspects as delivery rates, information technology, deadlines, out-of-stock<br />
rates, inventories and complaints. Joint improvement plans are deployed to address any<br />
changes in these indicators, with a focus on electronic data interchange (EDI), order<br />
placement and delivery processes and other key metrics. Participants in the program, which<br />
was launched in four countries and extended to the <strong>UK</strong>, Belgium and Finland in 2012, include<br />
Schneider Electric, Philips, Osram, Eaton and Hager.<br />
Sharing innovations to move forward together<br />
Given its daily contact with partners, <strong>Rexel</strong> also plays a major role in influencing changes in<br />
supplier portfolios and technologies, and in encouraging customers to embrace them. <strong>Rexel</strong><br />
offers its customers training to help them obtain the most out of the products and solutions it<br />
distributes.<br />
“ ”<br />
Supplier relations are central to <strong>Rexel</strong>’s business, to achieve the right<br />
alignment between supply and demand and to enlarge both their and our<br />
presence in promising geographic markets and market segments.<br />
Gonzalo Errejon, Director of Marketing & Supplier Relationship Development<br />
11
Anticipation and Innovation<br />
to Develop the Solutions of Tomorrow<br />
With its Energy in Motion company plan, <strong>Rexel</strong> has clearly defined its strategic<br />
priorities. By anticipating economic and social trends, <strong>Rexel</strong> has developed with a<br />
focus on innovation and durability. Two guiding principles reflect the ambitions of the<br />
company: 1) innovate by offering forward-looking products and services in promising<br />
markets, and 2) sustainably adapt to the energy shift currently underway and to<br />
ongoing technological, social and regulatory changes. This is more than a challenge; it<br />
is the guarantee of lasting progress.<br />
Our customers’ businesses are becoming increasingly complex due to changing<br />
regulations governing energy use in buildings, the electrical/digital convergence and<br />
the emergence of alternative energy sources. Our goal is to support customers as<br />
they navigate these changes by continuously developing additional services to<br />
recommend, develop and deploy the solutions that will help them get ahead. “Rudy Provoost, Chairman of the Management Board and CEO<br />
1. Customized technical responses to the changing energy<br />
landscape<br />
In addition to setting out the company’s priorities for 2015, the Energy in Motion plan<br />
expresses <strong>Rexel</strong>’s identity, commitments and convictions. With energy efficiency and<br />
renewable energies at the center of its portfolio, <strong>Rexel</strong> intends to speed advances in electricity.<br />
The company’s high value-added offerings and services are described below.<br />
Energy efficiency: tangible solutions for each situation<br />
”<br />
Energy efficiency, a fundamental growth driver and strategic market for <strong>Rexel</strong>, accounted for<br />
sales of €450 million in 2011. This is expected to rise to €700 million in 2015. Within the<br />
framework of the Energy in Motion plan, the energy efficiency market covers products or<br />
services that generate a measurable direct or indirect reduction in energy use.<br />
Leading-edge services marketed by dedicated <strong>Rexel</strong> teams include:<br />
Energy audits.<br />
Consulting on projects to renovate installations and sources of consumption.<br />
Installation-related services.<br />
Training to familiarize contractors with eco-efficient equipment, as well as personalized white<br />
certificate training courses.<br />
Turnkey management of energy efficiency projects, from the initial audit to solution design and<br />
installation. Further out, <strong>Rexel</strong> hopes to offer even more comprehensive energy performance<br />
programs including after-sales service, maintenance, financing and insurance.<br />
<strong>Rexel</strong> offers a wide range of eco-efficient products, notably low-consumption lighting systems,<br />
measurement and control systems, monitoring systems and speed drives.<br />
12
Complete expertise in low-voltage lighting<br />
<strong>Rexel</strong> markets an array of energy-saving lighting systems, including motion sensors,<br />
detectors, LEDs and compact fluorescent bulbs, as well as lighting-related services for<br />
construction and renovation projects.<br />
Innovative HVAC systems<br />
<strong>Rexel</strong> selects the most innovative products in terms of thermal efficiency and offers a broad<br />
range of eco-efficient heating and ventilation systems. These include control and programing<br />
systems, heat recovery ventilators, heat pumps and thermodynamic water heaters, just to<br />
name a few.<br />
Specific packages for industrial facilities<br />
<strong>Rexel</strong> also distributes high-efficiency speed drives that help reduce industrial facilities’<br />
electrical consumption. Electric motors are used in variety of functions, including ventilation,<br />
pumping, mechanical drives and production line heating and cooling. They account for 70% of<br />
electricity use in industry.<br />
80% to 90%<br />
LEDs use 80% to 90% less electricity<br />
and last 20 to 30 times longer than<br />
conventional bulbs.<br />
65% of energy savings<br />
Heating represents 65% of the potential<br />
savings in homes, based on the average<br />
consumption of an older 100 sq.m home.<br />
Source: French Environment and Energy<br />
Management Agency (ADEME).<br />
30% of energy savings<br />
Buildings account for 40% of global energy<br />
consumption. The potential for energy savings<br />
in residential and commercial buildings in<br />
Europe is estimated at 30%.<br />
COVENTRY GOLF CLUB<br />
Objective: reduce the Coventry Golf Club’s energy<br />
consumption by 25%<br />
In the <strong>UK</strong>, <strong>Rexel</strong> worked with the Coventry Golf Club to renovate<br />
its lighting systems and install photovoltaic panels. <strong>Rexel</strong>’s<br />
expertise, services and recommendations helped the club reduce<br />
its energy use by 25% and produce energy with its solar panels.<br />
13
Renewable energies: quality first<br />
Renewable energies are a key growth driver for <strong>Rexel</strong>, which has been active in this segment<br />
for many years. As part of the Energy in Motion plan, products and services related to<br />
renewable energies are expected to generate €100 million in additional sales between 2011<br />
and 2015. <strong>Rexel</strong>’s offering targets two core areas in renewable energies:<br />
<br />
Photovoltaics<br />
With a focus on the residential and commercial markets, <strong>Rexel</strong> provides customers with a range of<br />
high-quality components, including solar panels and rooftop installation systems, to build their own<br />
solutions. It also designs ready-to-install customized kits.<br />
<br />
Wind power<br />
Building from a heavy initial presence in the United States, <strong>Rexel</strong> is strongly expanding its wind<br />
operations in Europe, Canada and China. The Company leverages its technical and logistical<br />
expertise to provide wind turbine manufacturers with the electrical and mechanical components they<br />
need at their production sites. <strong>Rexel</strong> also supplies equipment to connect wind turbines to the grid.<br />
Control and automation systems: making buildings smarter and safer<br />
Building automation is an extensive market for <strong>Rexel</strong>, with sales led by Europe, followed by<br />
the United States and Asia-Pacific. Building automation systems, smart control applications<br />
and energy management are the company's priority growth avenues. <strong>Rexel</strong> intends to triple<br />
its sales in this area between 2011 and 2015 as part of its Energy in Motion plan, with a longterm<br />
target of €200 million.<br />
To distribute the most effective solutions, the <strong>Group</strong> is involved in ongoing initiatives<br />
to:<br />
<br />
<br />
Strengthen supplier partnerships, so it can deliver the market's most advanced solutions for home<br />
automation (home automation products; interoperability solutions; mix of thermal electrical and<br />
electronic functions; motion sensors) and building safety and security (access control, security<br />
systems, fire alarms).<br />
Enhance its ability to support customers in selecting and implementing integrated control and<br />
management solutions for industrial, residential and commercial buildings.<br />
<strong>Rexel</strong> is a member of KNX<br />
The KNX Association plays a leading role in the drive to develop a global standard<br />
for home and building control. As the first distributor to join KNX, <strong>Rexel</strong> is committed<br />
to promoting advances in buildings and smart networks. This strategic approach is<br />
perfectly aligned with the Energy in Motion plan, since building automation and<br />
energy management systems are key growth levers for <strong>Rexel</strong>. Now a promoter of<br />
the KNX standard, which enables products from different brands to communicate<br />
and work together, <strong>Rexel</strong> is in a position to serve customers as a solutions<br />
integrator.<br />
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2. Tailored solutions for each market<br />
<strong>Rexel</strong> has developed a specialized, vertical approach for industries whose solution, supply or<br />
service needs are exceptionally critical or complex. Examples include the mining and oil<br />
industries and retail store chains.<br />
Customized offerings for win-win relationships<br />
This approach is based on specific product offerings, a dedicated organization with sales and<br />
technical teams that can be seconded to the customer's site when needed, and special<br />
customer services such as inventory management, on-site teams and technical training.<br />
For <strong>Rexel</strong>, with its recognized expertise in the oil & gas and mining industries, these vertical<br />
markets represent an opportunity to considerably enhance its presence in the value chain by<br />
offering dedicated products and services. Not only does this strengthen customer loyalty, but<br />
it also increases sales and profitability.<br />
Meeting the specific constraints of retailers<br />
With its local network, specialized teams and packaged offerings, <strong>Rexel</strong> has what it takes to<br />
meet the specific needs of retail banners. A number of large apparel retail chains in Asia, for<br />
example, have turned to <strong>Rexel</strong> for the renovation of their lighting and air conditioning systems.<br />
Working with <strong>Rexel</strong> offers two major advantages:<br />
<br />
<br />
The company’s global presence makes it possible to install the same products and services in all<br />
chain outlets, ensuring the same customer experience everywhere.<br />
<strong>Rexel</strong>’s eco-efficient solutions deliver significant energy efficiency gains.<br />
€680 million<br />
Sales expected from vertical<br />
market segments by 2015.<br />
Hotel Peninsula - France<br />
Located in Paris’s leafy 16 th<br />
arrondissement, this Hong Kong and<br />
Shanghai Hotel establishment aims to<br />
become one of the French capital's top<br />
luxury hotels. Backed by its expertise in<br />
large project management, <strong>Rexel</strong> is<br />
involved in supplying the project and<br />
providing logistics for optimum worksite<br />
productivity.<br />
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Corporate Social Responsibility to<br />
Support Growth<br />
At <strong>Rexel</strong>, corporate social responsibility (CSR) is a key business fundamental. As a<br />
company with worldwide operations and in direct contact with its environment, <strong>Rexel</strong> is<br />
committed to developing a model of profitable growth while working to reduce climate<br />
change, promote employees’ personal development and support meaningful<br />
community outreach.<br />
<strong>Rexel</strong>'s CSR approach is organized around four core commitments:<br />
<br />
<br />
<br />
<br />
Accelerate the distribution of electrical solutions and help bring energy advances to all.<br />
Take active steps to promote employees’ personal development.<br />
Decrease the company’s environmental footprint.<br />
Make a difference in the communities the company operates in.<br />
GLOBAL COMPACT<br />
The Global Compact: <strong>Rexel</strong> contributes to a more responsible global economy.<br />
As a Global Compact signatory, <strong>Rexel</strong> embraces and promotes ten key principles in the<br />
areas of human rights, labor, environment and anti-corruption.<br />
1. Becoming a benchmark employer by making the difference<br />
<strong>Rexel</strong>’s 31,000 employees are a source of both strength and pride. To create a close-knit<br />
community and share a common vision for the future, <strong>Rexel</strong> has taken initiatives to:<br />
Measure employee satisfaction through surveys<br />
Designed as a management tool, the Satisfaxion in-house opinion survey is conducted<br />
among <strong>Rexel</strong> employees on a regular basis. The survey measures employee perceptions in<br />
seven areas: respect, well-being, engagement, compensation, management, communication<br />
and strategy. In 2011, “respect for individuals” garnered the highest number of positive<br />
responses, with 86% of those surveyed saying they were treated with respect. The company<br />
uses the survey results to implement action plans on a country-by-country basis.<br />
Develop talent with appropriate training for each profile<br />
In 2012, the number of hours of training rose to 271,750 from 214,048 the year before.<br />
Promoting skills is a key focus of <strong>Rexel</strong>'s social commitment. In response to rapid changes in<br />
professions, markets and technologies, training is crucial for acquiring new expertise.<br />
Employees are offered training in areas that are aligned with their current jobs, skills, career<br />
growth outlook, local requirements and personal and collective objectives.<br />
Give employees a stake in the company’s results though employee share ownership<br />
By launching three employee share purchase plans under preferential terms in 2007, 2010<br />
and 2012, <strong>Rexel</strong> has encouraged employees to take a stake in the company's performance<br />
and increase their interest in the company’s capital. The Opportunity12 plan in 2012 was<br />
open to nearly 90% of <strong>Rexel</strong>’s employees in 16 countries.<br />
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2. Optimizing energy performance to lead by example<br />
For <strong>Rexel</strong>, leading by example is more than an ambition—it is a daily commitment to being a<br />
clean distributor while consuming less and better. The company’s clear challenges are to<br />
reduce its environmental footprint by leveraging innovative energy efficiency solutions and to<br />
develop a consistent environmental approach by defining targets, measuring progress and<br />
disclosing reliable, tangible results. By walking the talk, <strong>Rexel</strong> offers all of its stakeholders a<br />
comprehensive vision of the challenges and most effective solutions to be deployed on an<br />
everyday basis.<br />
A measurable, sustainable commitment<br />
Since 2006, <strong>Rexel</strong> has taken a proactive approach to measuring its impacts by deploying a<br />
consolidated environmental reporting process at the <strong>Group</strong> level. In anticipation of the<br />
regulatory requirements of Article 225 of France’s Grenelle 2 Act, this reporting is designed to<br />
cover the entire scope of the company’s consolidation.<br />
With the publication of its first carbon footprint analysis in 2006 covering six key countries and<br />
the consolidation of its annual reporting, <strong>Rexel</strong> developed real expertise in environmental<br />
management.<br />
- 18%<br />
Reduction in greenhouse gas<br />
emissions from electricity<br />
consumption between 2012 and<br />
2011 (scope 2)<br />
- 22%<br />
Reduction in greenhouse gas<br />
emissions from product shipping by<br />
the <strong>Rexel</strong> fleet between 2010 and<br />
2011<br />
Reduced carbon emissions from shipping<br />
As part of the drive to decrease its environmental footprint, <strong>Rexel</strong> has renewed 25% of its<br />
European fleet, which is the largest in the <strong>Group</strong> (50% of the fleet had been upgraded in<br />
2011). Clearly, there are several advantages to the development of e-commerce and e-<br />
procurement, characterized by EDI, paperless invoices and short contracts, and of moves to<br />
pool shipping resources. These include improved service quality through more reliable flows<br />
and a smaller environmental impact from trucks, which carry fuller loads.<br />
Recycling: extending good practices to customers<br />
In compliance with the European Waste Electrical and Electronic Equipment (WEEE)<br />
directive, <strong>Rexel</strong> recovers electrical equipment waste. As part of this commitment, the<br />
company provides customers with a selective sorting system in its branches, notably with<br />
special containers for lighting products. A number of banners even offer to collect waste<br />
directly from customer sites. As a result, <strong>Rexel</strong> collected nearly 13,270 metric tons of<br />
recovered waste through selective sorting in its branches in 2011, for a <strong>Group</strong>-wide recovery<br />
rate of 65% versus 59% in 2010.<br />
25 metric tons<br />
Volume of batteries collected by <strong>Rexel</strong> in 2011<br />
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3. The <strong>Rexel</strong> Foundation: a key step towards a deeper<br />
commitment<br />
Since the company’s creation, <strong>Rexel</strong> has participated in programs that reflect its sense of<br />
responsibility. In 2013, it is taking a new step by creating the <strong>Rexel</strong> Foundation for a better<br />
energy future under the aegis of the Fondation de France. This move will provide a new<br />
scope for the company's initiatives while allowing <strong>Rexel</strong> to continue its work with local<br />
communities and involve a larger number of employees in outreach projects.<br />
Access to sustainable energy for all – a three-pronged challenge<br />
We are currently facing three major energy challenges: the increasing scarcity of energy<br />
resources, rising energy prices and the threat to our energy security. Today, 8 million people<br />
in France and 100 million people in Europe are in fuel poverty and over 1.3 billion people<br />
throughout the world do not have access to electricity.<br />
Two factors are exacerbating these issues:<br />
• the world’s rising population coupled with mass urbanization that has seen the demand for<br />
energy increase exponentially, and<br />
• the continued waste of energy in our manufacturing and transport and current practices in<br />
the consumption of energy resources.<br />
Energy efficiency - an opportunity to develop solutions which will allow us to consume<br />
and manage our energy more efficiently<br />
Faced with these challenges, industry experts, businesses and leading policymakers agree<br />
that energy efficiency is a turnkey solution and are implementing targeted strategies.<br />
These challenges are being addressed on different levels:<br />
• Environmental: the energy savings made from improved energy efficiency can help to<br />
preserve our natural resources and combat climate change by reducing carbon emissions.<br />
• Economic: improved energy efficiency allows consumers to save money on their energy<br />
bills and the industry to drive profitability through a more competitive business model<br />
• Social: improved energy efficiency provides greater comfort and a better quality of life. It<br />
can also help fight fuel poverty by improving access to energy for the most disadvantaged<br />
populations in society.<br />
By improving access to energy efficiency for all, we can transform our lives, our<br />
economies and beat fuel poverty. Through our commitment and in partnership<br />
”<br />
with our employees, our clients, our suppliers and with society at large, the <strong>Rexel</strong><br />
Foundation can become a catalyst for progress in energy efficiency.<br />
Pascale Giet,<br />
Vice-Chairman of the <strong>Rexel</strong> Foundation for a better energy future, Senior Vice<br />
“President, Communication and Sustainable Development, <strong>Rexel</strong> <strong>Group</strong><br />
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Through its expertise and proximity to its customers and partners both on an international and<br />
local level, <strong>Rexel</strong> believes that:<br />
• Energy progress is a value creator, not just for the economy, but for society at large<br />
because energy provides the foundation for everything we do it powers heating, transport,<br />
communications, industry….<br />
• The energy efficiency value chain is an ecosystem where no one player is master and in<br />
which the multiplier effect can make a real difference, this is why we need a global vision<br />
to meet the challenges and a partnership approach to accelerate the energy transition.<br />
Backed by the courage of its convictions and the support of the Fondation de France, the<br />
launch of the <strong>Rexel</strong> Foundation for a better energy future is testament to <strong>Rexel</strong>’s social and<br />
environmental commitment to the communities in which it operates. With this commitment,<br />
<strong>Rexel</strong> is setting a strategic challenge for all its stakeholders: to improve access to energy<br />
efficiency for all.<br />
Four guiding principles<br />
The Foundation follows in the footsteps of the <strong>Group</strong>'s past and present commitments with<br />
four guiding principles that provide direction and frame all of its projects:<br />
Principle 1: Socially innovative<br />
Projects should drive social progress, improve quality of life and provide improved access<br />
to sustainable sources of energy for the most disadvantaged in society.<br />
Principle 2: Environmentally friendly and providing energy savings<br />
Projects should have a significant positive environmental impact and provide energy<br />
savings to end-users: increasing access to energy efficiency for all with cost effective<br />
energy efficiency solutions.<br />
Principle 3: Collaborative and partnership driven<br />
Projects should be based on an open approach to collaboration with all stakeholders to<br />
improve understanding and raise awareness among key players in the industry as well as<br />
among the general public.<br />
Principle 4: Repeatable and Scalable<br />
Projects should be both repeatable and scalable enabling the large scale adoption of<br />
energy efficiency.<br />
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Three areas of involvement<br />
The <strong>Rexel</strong> Foundation’s mission is to improve access to energy efficiency for all and is based<br />
on three key pillars:<br />
Knowledge<br />
Improve<br />
understanding and<br />
raise awareness of<br />
energy efficiency<br />
Support<br />
charitable<br />
community-based<br />
projects<br />
Community<br />
Projects<br />
Research<br />
Encourage<br />
innovation<br />
through<br />
research and<br />
educational<br />
projects<br />
Improve understanding and raise awareness of energy efficiency<br />
Demystify and promote energy efficiency through the publication of studies and the<br />
organization of workshops with the energy community and end-users.<br />
Encourage innovation through research and educational projects<br />
Support laboratory research programs by awarding grants to young researchers. Research<br />
projects can be focused on affecting behavioral change in energy consumption, on low<br />
carbon microgeneration based on small scale renewable energy and storage solutions or on<br />
improving the performance of energy efficiency products and technology in home automation,<br />
smart controls, heating ventilation and insulation.<br />
These programs will target students and researchers at the start of the career ladder in<br />
Europe, North America, Latin America and the Asia-Pacific – regions where <strong>Rexel</strong>'s local<br />
presence means it can oversee the projects.<br />
Support charitable community-based projects<br />
Form partnerships with NGOs, social entrepreneurs and other foundations, with a priority on<br />
the countries in which <strong>Rexel</strong> operates. The <strong>Rexel</strong> Foundation for a better energy future will<br />
support sustainable actions that help to affect behavioral change, upgrade the living<br />
conditions of the most disadvantaged populations in society and provide training for<br />
entrepreneurs specializing in energy efficiency.<br />
The beneficiaries will be disadvantaged populations from the OECD countries as well as from<br />
developing countries.<br />
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