2008 Registration Document - Rexel

Pursuant to article 28 of the Commission Regulation (EC)N°809/2004 of April 29, 2004, the following information isincorporated by reference in this Document de Référence:− the description of the Rexel Group liquidity and capitalresources for the year ended December 31, 2007 whichis included in pages 88 to 100 of the Document deRéférence filed by Rexel with the Autorité des marchésfinanciers on April 30, 2008, under number R.08-046;and− the description of the Rexel Group liquidity and capitalresources for the year ended December 31, 2006 whichis included in pages 110 to 124 of the Document de Basefiled by Rexel with the Autorité des marchés financiers onFebruary 21, 2007 under number I.07-011.The information of these documents that is not incorporatedby reference in this Document de Référence is eitherirrelevant for the investor or is covered in another section ofthis Document de Référence.7.1 CASH FLOW AS AT DECEMBER 31, 2008 AND DECEMBER 31, 2007The following table sets out Rexel’s cash flow for the quarters and years ended December 31, 2008 and December 31, 2007.(in millions of euros)Year ended December 31,2008 2007Operating cash flow (1) 664.1 704.0Interest (a) (186.7) (217.7)Taxes (a) (109.8) (41.8)Changes in working capital requirements 133.7 (13.0)Cash flow from operating activities (b) 501.3 431.5Cash flow from investing activities (1,476.1) (184.2)Including operating capital expenditures (2) (c) (8.7) (20.6)Cash flow from financing activities 1,220.8 (200.9)Net cash flow 246.0 46.4Free cash flow– before interest and taxes (b) – (a) + (c) 789.1 670.4– after interest and taxes (b) + (c) 492.6 410.9WCR, as a percentage of sales (3) 12.0% 14.1%WCR, as a percentage of sales (3) , on a constant basis 12.0% 13.0%(1) Before interest, taxes and changes in working capital requirements.(2) Net of disposals.(3) Working capital requirement at year-end, divided by the last twelve months sales.7.1.1 Cash flow from operatingactivitiesRexel’s cash flow from operating activities was an€501.3 million inflow in the year 2008 compared to€431.5 million in 2007. In the fourth quarter of 2008, cashflow from operating activities amounted to a €248.7 millioninflow compared to a €196.9 million inflow in the fourthquarter of 2007.Operating cash flowOperating cash flow before interest, income tax andchanges in working capital requirements decreased from€704.0 million in the year 2007 to €664.1 million in theyear 2008. The operating income before depreciation,other income and other expenses (EBITDA) increased from€725.4 million in the year 2007 to €732.5 million in the year2008. The additional EBITDA related to the integration ofHagemeyer entities was partially offset by the sharp fallof copper price observed in the fourth quarter of 2008.Restructuring and integration costs incurred in 2008amounted to €55.5 million, compared to €16.0 million inthe year 2007.Interest and taxesIn the year 2008, interest paid amounted to €186.7 millioncompared to €217.7 million in 2007. The 2007 cashoutincluded €89.6 million in respect of the redemptionREXEL 2008 | PAGE 81