2008 Registration Document - Rexel

6. Operating and financial review6.2.4 Asia-PacificYear ended December 31,(in millions of euros)2008 2007 % changeREPORTED FINANCIAL DATASales 881.9 797.2 10.6%Gross profit 214.7 202.3 6.1%Distribution and administrative expenses (154.6) (152.1) 1.6%EBITA (1) 60.1 50.2 19.8%as a % of sales 6.8% 6.3%Year ended December 31,(in millions of euros)2008 2007 % changeCONSTANT BASIS ADJUSTED FINANCIAL DATASales 881.9 829.9 6.3%Same number of working days 5.9%Gross profit 214.3 207.3 3.4%as a % of sales 24.3% 25.0%Distribution and administrative expenses (154.6) (154.9) (0.2)%as a % of sales (17.5)% (18.7)%EBITA (1) 59.7 52.4 13.9%as a % of sales 6.8% 6.3%(1) EBITA = Operating income before other income and other expenses.In the year 2008, sales in the Asia-Pacific zone increasedby 10.6% compared to 2007 to €881.9 million, or 5.9% ona constant basis and same number of working days. On thesame basis, sales increase was 0.6% in the fourth quarterof 2008 compared to the fourth quarter of 2007.In the year 2008, sales in Australia amounted to€612.6 million, a 6.3% increase on a constant basis andsame number of working days from 2007. Despite slowingdown of the residential market, industrial and miningmarkets were still strong. Australian banners outperformedthe market in the year, based on Rexel’s estimatesand recorded high sales growth in Western Australia,Queensland and New South Wales for both specialistsand generalists. Industrial key accounts and large nationalcontractors were the main growth drivers, reinforcedby a network optimization. In the fourth quarter of 2008,sales were stable compared to the fourth quarter of 2007on a constant basis and same number of working days,slowing down compared to the beginning of the year due todeteriorated market conditions.In New Zealand, affected by the downturn of the residentialand commercial construction markets, sales amounted to€128.9 million, a 1.6% decrease compared to 2007 on aconstant basis and same number of working days.In Asia, sales amounted to €140.4 million in the year 2008,an 11.7% increase on a constant basis and same numberof working days compared to 2007, which evidences thefast development of the Rexel Group’s different bannersparticularly driven by the lighting and automation segmentsand the panel building customers. In the fourth quarter, salesincrease amounted to 5.5% on a constant basis and samenumber of working days impacted by high project sales in2007, slow down of the steel and automotive industry andclose selection of customer to limit credit risk.In the year 2008, gross profit increased by 6.1% to€214.7 million. On a constant basis, Adjusted growthmargin decreased by 70 basis points in the zone, mainlydue to a gross margin decrease in Australia (increased mixof key accounts and more projects with lower gross marginbut also lower distribution and administrative expenses)and to a lesser extent due the growth in Asia where grossmargin is lower (mix effect). In the fourth quarter of 2008,gross margin decreased by 40 basis due to the growthmargin decrease in Australia.Distribution and administrative expenses were €154.6 millionin the year 2008, i.e. 17.5% of sales compared to 19.1% inthe year 2007. On a constant basis, Adjusted distributionand administrative expenses decreased by 0.2% comparedPAGE 78 | REXEL 2008