2008 Registration Document - Rexel

The Rexel Group believes that it is one of the leadinglow- and ultra-low voltage electrical products distributorsworldwide based on its 2008 sales and number of branches.At December 31, 2008, the Rexel Group is established in37 countries across three areas: Europe, North Americaand Asia-Pacific. Based on 2008 financial information,the Rexel Group believes that it is the leading distributorin North America and in the Asia-Pacific region, and thenumber two in Europe.The Rexel Group serves a wide range of contractors and ofend-users, which it divides into four customer categories:contractors (58% of its 2008 sales), industrial companies(19% of its 2008 sales), commercial market companies (8%of its 2008 sales), as well as an “other customers” category,which includes municipalities, public entities, resellers andlarge do-it-yourself stores (15% of its 2008 sales). The RexelGroup’s customers install the electrical products that itdistributes in three end-markets: the industrial, commercialbuilding and residential building markets. Its products areused in new installations and construction, as well as inthe maintenance or renovation of existing installations andbuildings.The Rexel Group distributes a broad range of technicalsolutions and services aimed at responding to all of theneeds of electrical contractors, as well as direct industrialand commercial customers. The Rexel Group’s productoffering is composed of seven product families indicatedbelow with their respective percentage of 2008 sales:electrical installation equipment (41% of sales); cablesand conduits (26% of sales); lighting (17% of sales);security and communication (5% of sales); climate control(4% of sales); tools (2% of sales); and white and brownproducts (5% of sales). The Rexel Group adds value to itsoffering by providing related services, including logistics,technical assistance and training services. In addition,the ACE division (3% of 2008 sales) distributes consumerelectronics in The Netherlands and consumer electronicsand residential equipments in Australia as well as luxuryproducts in various Asian countries.As at December 31, 2008, the Rexel Group’s branchnetwork consisted of 2,472 branches organized aroundvarious commercial banners and had 32,967 employees.The pro forma consolidated sales of the Rexel Group for2008 amounts to €13.735 billion, 58% of which werecarried out in Europe, 32% in North America, 6% in Asia-Pacific and 4% for the other operations. The Rexel Groupmade a pro forma Adjusted EBITA in 2008, representing5.2% of the 2008 consolidated sales.The Rexel Group has initiated the integration of the RetainedEntities and continued its external growth in 2008 throughthe acquisition of 6 entities, excluding the acquisition ofHagemeyer. These transactions have notably allowed theRexel Group to strengthen its market positions in Europeand in the Asia-Pacific area.3.1 PROFESSIONAL DISTRIBUTION OF LOW- AND ULTRA-LOW VOLTAGEPRODUCTS3.1.1 A distributor of servicesand technical solutionsThe Rexel Group offers a broad range of products andservices that aim to respond to all of the needs of contractors,as well as those of industrial and commercial customers(industrial and commercial companies, municipalities,public entities, parts manufacturers and panel builders).The Rexel Group’s service offering allows its customersto master technological advancements inherent in theproduct families it distributes and accompanies them overthe course of their projects.3.1.1.1 Broad product and technical solutionsofferingThe Rexel Group’s product offering, which is classifiedinto seven product families, aims to cover all of the needsof electrical contractors and industrial and commercialcustomers:− electrical installation equipment (41% of 2008 sales),which includes coupling and circuit protection equipment(such as switches, circuit breakers, meters and fuses);energy conversion and storage equipment (such astransformers, storage batteries, chargers and generators);control equipment (such as industrial automated devicesand network control devices); and sensors, actuators andconsumption devices (such as pumps, fans, ventilatorsand compressors). All of these equipments are key in theelectric power consumption control and optimization;− cables and conduits (26% of 2008 sales), which allowfor the distribution of electricity and include raceways,mouldings and cable trays;− lighting (17% of 2008 sales), which includes lightingsources, such as incandescent or halogen bulbs, lowenergy consumption light bulbs and fluorescent bulbs,and LED on the one hand, and lighting equipment,such as interior and exterior lighting systems, as well asdecorative accessories;REXEL 2008 | PAGE 21