2008 Registration Document - Rexel
2008 Registration Document - Rexel
2008 Registration Document - Rexel
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The <strong>Rexel</strong> Group has developed a risk managementprocedure (see paragraph 4.6 of this <strong>Document</strong> deRéférence). This procedure includes training policies forbranch managers relating to safety and site protection inorder to limit the risk of the occurrence of accidents and theextent of damages.In addition, the <strong>Rexel</strong> Group believes that the impact ofpotential accidents on the financial situation of the <strong>Rexel</strong>Group may be reduced given the level of the deductiblesand the density of its branch network which limits theimpact of accidents on one or more of its branches.The group insurance programs underwritten with insurancecompanies of international stature cover the followingrisks:− Property damage and operating losses (i.e., damagessuffered by the <strong>Rexel</strong> Group and caused by an externalevent, such as fire, explosion, water damage, lightning,storms, flooding, hurricane, natural events, machinebreakage, acts of terrorism, theft);− General civil liability relating to damages caused to thirdparties by the <strong>Rexel</strong> Group. This includes operationsand product liability coverage for bodily injury, propertydamage and related financial damages;− Fraud and wrongdoing, including by means of informationsystems, covering direct damages, additional expenses,operating losses, and legal fees relating to fraudulent actsor wrongdoing affecting in particular personal property ordata.Given the <strong>Rexel</strong> Group’s international presence andapplicable regulations, the <strong>Rexel</strong> Group has taken out localinsurance polices in order to take into account local practiceand/or obligations in the relevant countries.The following table sets forth the level of coverage for theprincipal risks against which the <strong>Rexel</strong> Group is insured:– property damages................Replacement valueand operating losses plus up to 12 months’ lostgross profit per occurrence€100 million cap peroccurrence– general civil liability...............€150 million peroccurrence per year– fraud and wrongdoing..........€20 million perincluding by means occurrence per yearof information systemsIn addition, risks of default of payment for receivables arecovered by local credit insurance policies that have beenimplemented in countries where such insurance is availableand where the <strong>Rexel</strong> Group can obtain favorable conditions.The contractual terms of this insurance are negotiated at<strong>Rexel</strong> Group level through credit insurance companiesof international renown. Resulting coverage is obtainedsubject to certain conditions, on an individual basis for eachcustomer. The credit insurance program effective within theRetained Entities was upheld.3.6 PROPERTY, PLANT AND EQUIPMENTIn the past, the <strong>Rexel</strong> Group owned a large number ofproperties. However, over the last few years, the <strong>Rexel</strong>Group has proceeded with the sale or sale and leasebackof the majority of its properties. The <strong>Rexel</strong> Group now rentsmost of its premises due to the operational flexibility thisprovides.As at December 31, <strong>2008</strong>, the properties used by the <strong>Rexel</strong>Group mainly included:− The registered office of <strong>Rexel</strong>, located in Paris (France),which is leased and has a surface area of 6,186 sq. meters,and the administrative buildings of the operational entities,located in Europe, North America and Asia-Pacific, whichare mainly leased. The registered office of <strong>Rexel</strong> and theadministrative buildings of the operational entities housethe management and operational functions of the <strong>Rexel</strong>Group;− 50 regional distribution centers located in Europe (France,Germany, Portugal, the Netherlands, Belgium, Austriaand Slovenia), North America (United-States), Asia-Pacific (New-Zealand) and Chile. Regional distributioncenters are mainly leased and have an average surfacearea which varies from 8.600 sq. meters for the regionaldistribution centers located in Europe (excluding France)and 17.000 sq. meters for the regional distribution centerslocated in France (see paragraph 3.1.3.2 of this <strong>Document</strong>de Référence);− 2,472 branches located in Europe, North America, Asia-Pacific and in the countries relating to the other operationssegment. Branches are mixed-usage selling and storagepremises located in areas of handicraft or industrialactivity, with an average surface area of approximately800 sq. meters to 1,500 sq. meters. Branches are mainlyleased (see paragraph 3.1.3.2 of this <strong>Document</strong> deRéférence).The real estate assets of the <strong>Rexel</strong> Group do not includeany material existing or planned item and are not subject toany major encumbrance.In addition, between March and May <strong>2008</strong>, <strong>Rexel</strong> France hasconcluded a sale-and-leaseback agreement with GecinaGroup for seven logistics platforms located in specializedlogistics hubs on major trunk roads. This transaction is partof the <strong>Rexel</strong> Group’s strategy of leasing its commercial andlogistics sites so as to be able to continuously adapt itsreal estate portfolio to market evolutions. This transactionreduces <strong>Rexel</strong>’s debt by €63 million.REXEL <strong>2008</strong> | PAGE 37