REXEL

CAPITAL MARKETS DAY

CAPITAL MARKETS DAY

2020 ROADMAP FOR PROFITABLE GROWTH

Rexel, a global leader in the professional distribution of products and services for the energy world, is holding a Capital Markets Day today in Paris, during which it will provide an update on its strategy and 2020 financial ambitions.

Rudy PROVOOST, Chairman of the Board of Directors and CEO, said:

"The Rexel 2020 plan presented at today's Capital Markets Day offers a clear roadmap for profitable growth and long-term value creation for all stakeholders. Over the past years, Rexel has continuously reinforced and upgraded its business model to become the value-added partner of preference for our customers and suppliers. Rexel's unique market-leading footprint, genuinely differentiating customer-centric strategy, continued innovation in marketing, digital and operations and targeted accretive acquisition policy put the company in the forefront of its sector and allow it to seize future growth opportunities in a rapidly changing world, powered by new mega-trends, technologies and applications.

Over the 2016-2020 period, Rexel aims to grow sales faster than the market, with average annual organic sales growth of between 1% and 2%, while growing adjusted EBITA at least twice as fast as sales growth and continuing to generate strong cash flow before interest and tax of between 70% and 80% of EBITDA. Moreover, Rexel will complement organic growth with targeted accretive acquisitions, with a total budget of around 1.5 billion euros over the 2016-2020 period, while maintaining an attractive dividend policy and sound financial structure, in line with its cash allocation strategy."

2020 FINANCIAL AMBITIONS

Rexel aims at achieving on average over the next five years (2016-2020) the following financial targets:

• Organic sales growth, outperforming market growth, with annual growth of between 1% and 2% on a constant and same-day basis,
• Annual adjusted EBITA growth of at least twice the pace of organic sales growth,
• Conversion rates of EBITDA into free cash-flow of:
  •            Between 70% and 80%, before interest and tax,
  • Between 35% and 45%, after interest and tax.

These financial ambitions take into account a cautious 2016 guidance, as announced today during the 2015 annual results presentation, and are conditional upon an economic recovery materializing over the five-year period.