2008 Registration Document - Rexel

9. Profit forecasts or estimatesThe following forecasts were established on the basis of EC RegulationN° 809/2004 of April 29, 2004 and CESR recommendations relating to forecasts.They are based on data, assumptions and estimates that are consideredreasonable by the Rexel Group’s management. These data, assumptionsand estimates may change as a result of uncertainties relating to, amongother things, the economic, financial, accounting, competitive and regulatoryenvironment, or other factors that are currently unknown by the Rexel Groupas at the registration date of this Document de Référence. In addition, theoccurrence of certain of the risks described in Chapter 4 “Risk Factors” of thisdocument could have an impact on the activity, the financial situation, and theresults of the Rexel Group and its ability to achieve these objectives. The RexelGroup can give no assurances and provide no guarantee that the forecastsdiscussed below will be achieved.These forecasts were prepared on the basis of accounting principles adoptedby the Rexel Group to prepare its consolidated financial statements for thefinancial years ended December 31, 2007 and 2008, respectively.9.1 REXEL GROUP FORECASTS FOR 2008In the Document de Référence filed with the Autoritédes marchés financiers on April 30, 2008 with numberR.08-046, on the basis of the assumptions describedin paragraph 13.2.1 of the said Document de Référence,Rexel anticipated for 2008:− A limited revenue growth, including bolt-on acquisitions,compared to 2007 Restated revenue of €13,017 billion,reflecting less dynamic macroeconomic conditions thanin 2007;− An Adjusted EBITA margin comparable to 2007 Restatedlevel of 5.4%;− An improvement in working capital requirementson track to reach the mid-term objective set forth inparagraph 12.2.2 of said Document de Référence; and− A strengthening of the financial structure with a reductionin the net debt to EBITDA ratio on track to reach themid-term objective set forth in paragraph 12.2.2 of saidDocument de Référence.In addition, upon the publication of its results for the thirdquarter of 2008 and as of September 30, 2008, Rexelanticipated for 2008:− Revenue to be flat or slightly below last year, on a constantbasis and same number of working days;− Adjusted EBITA margin around the 2007 level of 5.4%restated in order to take into account the completion ofthe Offer, of the Assets Sales and Assets Swaps andof the divestment of Hagemeyer’s electrical distributionactivities in Ireland.Based on the consolidated financial statements of Rexelfor the financial year ended December 31, 2008, Rexel’sconsolidated sales amounted to €12,861.6 million, a0.8% decrease on a constant basis and same numberof working days. Adjusted EBITA Margin remained stableat 5.4%, the working capital requirements represented12.6% of the sales as at December 31, 2008 and the netindebtedness ratio calculated as per the 2008 Senior CreditAgreement covenant stood at 3.60x compared to 4.0x asat December 31, 2007. As a consequence, Rexel is in linewith the udpated objectives made during the 2008 financialyear.PAGE 94 | REXEL 2008