November 12, 2008 02:12 ET
REXEL : STRONG CASH FLOW AND PROFITABILITY IN THE THIRD QUARTER AND 2008 YEAR-TO-DATE
PARIS--(Marketwire - November 12, 2008) - Good performance in the third quarter:
- Organic sales growth of 0.4%[1], on a constant and same-day basis
- Adjusted EBITA up 4.3% to EUR 185 million (5.4% of sales, up 20 bps)
- Initial Hagemeyer synergies achieved on schedule
Solid year-to-date results:
- Organic sales growth of 1.6%1, on a constant and same-day basis
- Adjusted EBITA up 5.3% to EUR 520 million (5.5% of sales, up 20 bps)
- Net income at EUR 294 million
- Strong free cash flow: EUR 474 million, before interest and tax
Strong resilience and responsiveness to the current environment
- Ongoing measures to attain the targeted EBITA margin of around 5.4% in
2008 even if organic sales are flat or slightly below last year
Jean-Charles Pauze, Chairman of the Management Board and CEO, commented:
"Rexel recorded a solid third quarter and year-to-date performance in a
challenging environment. Our profitability and cash flow attest to the
resilience of Rexel's business model.
As we had expected for the second half of the year, our major markets are
slowing down. We have continued to implement measures to attain our
targeted EBITA margin of around 5.4% in 2008 even if our sales are slightly
lower than anticipated due to the deterioration of the economic environment
and the fall in raw material prices.
More than ever, Rexel is strongly focused on continuing to adapt its cost
base, accelerating synergies from Hagemeyer businesses and generating cash
flow."
Year-to-date to september 2008 financial review
- Organic growth in Europe and Asia-Pacific, led by the industrial end-
market
- Resilience of business model supported by the 20 bps increase in gross
margin
- Ongoing cost management and initial synergies from integration of
Hagemeyer lead to a 5.3% EBITA increase, on a constant and adjusted basis
- Continuous improvement in working capital at 13.0% of sales, down from
13.6% a year ago, on a comparable basis
Key Figures
(Unless otherwise stated, all comments are on a constant and adjusted basis
and, for sales, at same number of working days)
+-------------------------+--------------+---------+-------+--------------+
|IFRS, unaudited, EUR | Nine months | | |Three months |
|million | to | | |to |
+-------------------------+--------------+---------+-------+--------------+
| |September 30th| | |September 30th|
+-------------------------+--------------+---------+-------+--------------+
| | 2008 | 2007 |Change | 2008|
+-------------------------+--------------+---------+-------+--------------+
|Constant and adjusted(a) | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Sales | 9,438.0 | 9,257.0 | +2.0% | 3,447.1|
+-------------------------+--------------+---------+-------+--------------+
|Same number of working | | | +1.6% | |
|days | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Gross margin as a % of | 24.3% | 24.3% | = | 24.0%|
|sales | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Gross margin as a % of | 24.3% | 24.1% |20 bps | 24.0%|
|sales | | | | |
+-------------------------+--------------+---------+-------+--------------+
|excluding Q1 07 | | | | |
|non-recurring items | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Operating expenses | (1,771.7) |(1,735.9)| +2.1% | (641.5)|
|(including depreciation) | | | | |
+-------------------------+--------------+---------+-------+--------------+
|EBITA | 520.5 | 511.8 | +1.7% | 185.3|
+-------------------------+--------------+---------+-------+--------------+
|as a % of sales | 5.5% | 5.5% | = | 5.4%|
+-------------------------+--------------+---------+-------+--------------+
|EBITA excluding Q1 07 | 520.5 | 494.2 | +5.3% | 185.3|
|non-recurring items(b) | | | | |
+-------------------------+--------------+---------+-------+--------------+
|As a % of sales | 5.5% | 5.3% |+20 bps| 5.4%|
+-------------------------+--------------+---------+-------+--------------+
|Reported basis | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Sales | 9,438.0 | 7,981.8 |+18.2% | 3,447.1|
+-------------------------+--------------+---------+-------+--------------+
|EBITA(c) | 509.9 | 490.5 | +4.0% | 174.9|
+-------------------------+--------------+---------+-------+--------------+
|as a % of sales | 5.4% | 6.1% |70 bps | 5.1%|
+-------------------------+--------------+---------+-------+--------------+
|Net income | 294.0 | 86.9 |n.s.(d)| 34.6|
+-------------------------+--------------+---------+-------+--------------+
|Free cash flow before | 474.3 | 450.8 | +5.2% | 116.2|
|interest & tax(e) | | | | |
+-------------------------+--------------+---------+-------+--------------+
|Net debt | 3,213.2 | 1,687.5 | n.s. | 3,213.2|
+-------------------------+--------------+---------+-------+--------------+
+-------------------------+--------+---------+
|IFRS, unaudited, EUR | | |
|million | | |
+-------------------------+--------+---------+
| | | |
+-------------------------+--------+---------+
| | 2007 | Change |
+-------------------------+--------+---------+
|Constant and adjusted(a) | | |
+-------------------------+--------+---------+
|Sales |3,411.2 | +1.1% |
+-------------------------+--------+---------+
|Same number of working | | +0.4% |
|days | | |
+-------------------------+--------+---------+
|Gross margin as a % of | 23.8% | +20 bps |
|sales | | |
+-------------------------+--------+---------+
|Gross margin as a % of | 23.8% | +20 bps |
|sales | | |
+-------------------------+--------+---------+
|excluding Q1 07 | | |
|non-recurring items | | |
+-------------------------+--------+---------+
|Operating expenses |(632.8) | +1.4% |
|(including depreciation) | | |
+-------------------------+--------+---------+
|EBITA | 179.3 | +3.3% |
+-------------------------+--------+---------+
|as a % of sales | 5.3% | +10 bps |
+-------------------------+--------+---------+
|EBITA excluding Q1 07 | 177.7 | +4.3% |
|non-recurring items(b) | | |
+-------------------------+--------+---------+
|As a % of sales | 5.2% | +20 bps |
+-------------------------+--------+---------+
|Reported basis | | |
+-------------------------+--------+---------+
|Sales |2,677.0 | +28.8% |
+-------------------------+--------+---------+
|EBITA(c) | 162.5 | +7.6% |
+-------------------------+--------+---------+
|as a % of sales | 6.1% |-100 bps |
+-------------------------+--------+---------+
|Net income | 67.9 | -49.0% |
+-------------------------+--------+---------+
|Free cash flow before | 87.0 | +33.6% |
|interest & tax(e) | | |
+-------------------------+--------+---------+
|Net debt |1,687.5 | n.s. |
+-------------------------+--------+---------+
(a) At Q3 2008 constant scope of consolidation and exchange rate and
consistent with objectives presented on March 31, 2008: excluding
amortization of purchase price allocation (EUR 5.8 million YTD to Sept 08
of which EUR 2.8 million in Q3 08 and EUR 6.0 million YTD to Sept 07 of
which EUR 3.0 million in Q3 07) and estimated non-recurring net effect on
inventory resulting from copper-based cables price evolution of c. EUR 4.8
million YTD to Sept 08 (- EUR 14.0 million YTD to Sept 07) and c. EUR 7.6
million in Q3 08 (- EUR 5.3 million in Q3 07) at the EBITA level
(b) The Adjusted EBITA for Q3 07 is also restated to include the same
amount of share-based compensation as in Q3 08 (EUR 1.6 million)
(c) Operating income before other income & other expenses
(d) Excluding IPO-related costs, net income was up 31.8% year-to-date
(e) Cash from operating activities minus net capital expenditure and before
net interest and income tax paid
On November 6, 2008, the Supervisory Board, chaired by Roberto Quarta,
approved the unaudited consolidated financial statements of the Rexel Group
as of September 30, 2008.
Organic growth in Europe and Asia-Pacific; flat sales in North America
Rexel recorded year-to-date sales of EUR 9,438 million, up 18.2% on a
reported basis and up 1.6% on a constant basis and same number of working
days. The rise in reported sales included EUR 1,691.9 million from
acquisitions net of divestitures, partially offset by EUR 416.7 million in
adverse exchange rate fluctuations, mainly due to the depreciation of the
US Dollar against the Euro[2].
Sales growth on a constant basis and same number of working days slowed
down to 1.6% year-to-date with +0.4% in the third quarter, due to softer
demand in all regions. In Europe, organic growth was +1.6% year-to-date
(+0.6% in Q3 08): in the third quarter, growth in the industrial end-market
and in renovation were partly offset by a downturn in the new residential
end-market. North America was flat year-to-date (-1.1% in Q3 08): Canada
posted strong growth while, in the United States, the non residential end-
markets slowed down in the third quarter as anticipated. In Asia-Pacific,
growth remained robust at 7.5% year-to-date (+5.7% in Q3 08).
Robust profitability: EBITA margin up 20 bps at 5.5% of sales
On a constant and adjusted basis, EBITA continued to grow faster than
sales: +5.3% year-to-date with +4.3% in the third quarter. EBITA margin was
therefore up 20 basis points both in the third quarter and year-to-date, to
5.4% and 5.5%, respectively. This was mainly due to gross margin expansion,
reflecting the successful implementation of operating levers as well as
initial purchasing synergies with Hagemeyer.
Operating expenses (including depreciation) were actively kept under
control as Rexel pursued the streamlining of its cost structure to offset
the effects of the slowing economy, including personnel expenses: as of 30
September 2008, headcount was reduced by 2.5% (-2.4% in Europe, -5.5% in
North America, +3,6% in Asia-Pacific/Others) since the beginning of the
year. Also, rationalization of support functions stemming from the
integration of Hagemeyer contributed to cost containment.
Sharp rise in net income
Other income and expenses amounted to a net gain of EUR 26.1 million year-
to-date compared with a net loss of EUR 50.7 million in the same period of
2007. In 2008, it included capital gains (EUR 117.8 million) partly offset
by restructuring and Hagemeyer integration expenses (EUR 36.5 million) and
by a goodwill impairment charge (EUR 35.4 million) with respect to the
Group's operations in Italy and in the Czech Republic.
Net financial expenses more than halved to EUR 140.9 million as a result of
the IPO-related debt refinancing completed in Q2 07.
The effective tax rate was 25.6% year-to-date mainly due to the non-taxable
capital gain on the sale of Rexel's historical business in Germany.
Excluding non-taxable gains and non-deductible losses, the effective tax
rate would have been 30.8%, in line with the normalized level disclosed
previously.
Consequently, year-to-date net income was EUR 294 million compared to EUR
86.9 million in 2007. Excluding IPO-related expenses, net income rose
31.8%.
Strong cash flow, reflecting continuous improvement in working capital
Free cash flow before interest and tax paid increased 33.6% to EUR 116.2
million in the third quarter. Year-to-date, it amounted to EUR 474.3
million, reflecting:
Solid EBITDA growth;
A further reduction in working capital as a percentage of sales to 13.0%
from 13.6% a year ago on a comparable basis;
A EUR 4.4 million inflow of net capital expenditure reflecting a EUR 62.9
million sale and partial lease back of 7 regional distribution centres in
France and selectivity in capital spending.
After EUR 133.5 million of net interest paid and EUR 83.8 million of income
tax paid, year-to-date free cash flow amounted to EUR 257.0 million, up
9.8% compared with the nine month period ended September 30, 2007.
Rexel's quarterly free cash flow is usually influenced by a seasonality
pattern with about half of annual free cash flow generated in the first
half, a low third quarter due to an increase in working capital
requirements as a result of higher sales in September, and a strong fourth
quarter.
Balance sheet in line with the deleveraging objective
As of September 30, 2008, the leverage ratio calculated as per the 2008
Senior Credit Agreement covenant stood at 3.69x (see Appendix 3), well
below the year-end commitment of 4.75x.
At EUR 3,213 million, net debt reflects the seasonality of free cash flow.
The EUR 66.2 million quarter-on-quarter increase is due to foreign exchange
variance (EUR 71.1 million) resulting mainly from the appreciation of the
US dollar against the Euro[3], as well as net financial investments for EUR
32.4 million partly compensated by free cash flow of EUR 37.8 million after
interest and tax paid.
As of September 30, 2008, the Group's liquidity exceeds EUR 1 billion
including EUR 465 million of cash net of overdrafts and EUR 585 million of
undrawn revolver credit. Rexel's liquidity is well above mandatory debt
repayments until mid-2011 (see Appendix 3).
2008 outlook
Rexel's solid year-to-date performance demonstrates its strong resilience
and responsiveness.
In view of the current economic environment, Rexel expects for 2008:
Revenue to be flat or slightly below last year, on a constant basis and
same number of working days;
Adjusted EBITA margin around the 2007 Restated[4] level of 5.4%.
Rexel's priorities remain to:
Continue to adjust its cost base;
Focus on cash flow generation;
Accelerate gains from its enhanced European platform; and
Allocate its resources to higher growth market segments.
Change in consolidation scope since the beginning of the year
In 2008, the Group acquired Hagemeyer in an offering that ended on March
25, 2008. As of September 30, 2008, Rexel owned 99.00% of the outstanding
shares and all of the convertible bonds outstanding. The transfer of the
agreed activities to Sonepar, as well as the asset swap, were completed in
June.
Following this transaction, the retained Hagemeyer entities[5] were
consolidated from March 31, 2008. The former business of the Group in
Germany, transferred to Sonepar, has been excluded from the scope of
consolidation from March 31, 2008. The business acquired from Sonepar in
Sweden is consolidated from July 1st, 2008.
The 2007 Document de Référence, registered by the Autorité des marchés
financiers (AMF) on April 30, 2008, under number R.08-046, provides
comprehensive information on the combined Group's profile, including pro
forma financial information for 2007. Appendix 4 of this press release
provides year-to-date pro forma consolidated financial information as if
the acquisition had taken place on January 1st, 2008.
Financial calendar
February 12, 2009 : Full year 2008 results announcement
For further information, please contact:
+-------------------------+--------------------+
|Financial Analysts / |Press |
|Investors | |
+-------------------------+--------------------+
|Eric Dumont |Pénélope Linage |
+-------------------------+--------------------+
|Tel +33 1 42 85 76 12 |Tel +33 1 42 85 76 |
| |28 |
+-------------------------+--------------------+
|@ edumont@rexel.com |@ plinage@rexel.com |
+-------------------------+--------------------+
| |Brunswick |
+-------------------------+--------------------+
| |Thomas Kamm |
+-------------------------+--------------------+
| |Tel +33 1 53 96 83 |
| |92 |
+-------------------------+--------------------+
| |@ tkamm@brunswickgro|
| |up.com |
+-------------------------+--------------------+
Rexel, the leading distributor worldwide of electrical supplies, serves
three main end markets: industrial, commercial and residential. The Group
operates in 34 countries, with a network of some 2,550 branches, and
employs 34,000 people. Rexel's proforma sales were EUR 14.3 billion in
2007. Its majority shareholders are an investor group led by Clayton,
Dubilier & Rice, Eurazeo and Merrill Lynch Global Private Equity.
Rexel is listed on the Eurolist market of Euronext Paris (compartment A,
ticker RXL, ISIN code FR0010451203). It is integrated in the following
indices: NEXT 150, SBF 120, and CAC Mid 100.
For more information, visit Rexel's web site at www.rexel.com
Certain of the statements contained in this release may be statements of
future expectations and other forward-looking statements that are based on
management's estimates, views, expectations and assumptions. Words such as
"expects", "anticipates", "plans", "aims", "projects", "believes",
"estimates", "target", "will", "may", "could", "should" and variations of
these words and similar expressions are intended to identify forward-
looking statements which include but are not limited to projections of
revenues, earnings, segment performance, cash flows, contract awards. By
their nature, forward-looking statements are subject to numerous risks and
uncertainties, including the risks described in the Document de Référence
registered with the French Autorité des marchés financiers on April 30,
2008 under number R.08-046, many of which are difficult to predict and
generally beyond under the control of Rexel, as they relate to events and
depend on circumstances that may or may not occur in the future. These
forward-looking statements are not guarantees of Rexel's future
performance. Rexel's actual results of operations, financial condition and
liquidity as well as development of the industry in which Rexel operates
may differ materially from those made in or suggested by the forward-
looking statements contained in this release. All forward-looking
statements speak only as of the date of this release.
Appendix 1
Business review
(Unless otherwise stated, all comments are on a constant and adjusted basis
and for sales, at same number of working days)
Europe
+-------------------------+--------------+--------+-------+---------------+
|IFRS, unaudited, (EUR |Nine months to| | |Three months |
|million) | | | |to |
+-------------------------+--------------+--------+-------+---------------+
|Constant and adjusted |September 30th| | |September 30th |
|basis | | | | |
+-------------------------+--------------+--------+-------+---------------+
| | 2008 | 2007 |Change | 2008 |
+-------------------------+--------------+--------+-------+---------------+
|Sales | 5,212.1 |5,082.1 | +2.6% | 1,962.9 |
+-------------------------+--------------+--------+-------+---------------+
|Constant basis and same | | | +1.6% | |
|number of working days | | | | |
+-------------------------+--------------+--------+-------+---------------+
|Gross Margin | 25.5% | 25.4% |+10 bps| 24.9% |
+-------------------------+--------------+--------+-------+---------------+
|Excluding Q1 07 | 25.5% | 25.3% |+20 bps| 24.9% |
|favourable non-recurring | | | | |
|items | | | | |
+-------------------------+--------------+--------+-------+---------------+
|Operating expenses | (1,023.4) |(992.5) | +3.1% | (381.9) |
+-------------------------+--------------+--------+-------+---------------+
|(including depreciation) | | | | |
+-------------------------+--------------+--------+-------+---------------+
|EBITA | 304.8 | 299.3 | +1.8% | 107.5 |
+-------------------------+--------------+--------+-------+---------------+
|As % of sales | 5.8% | 5.9% |-10 bps| 5.5% |
+-------------------------+--------------+--------+-------+---------------+
|Excluding Q1 07 | 5.8% | 5.7% |+10 bps| 5.5% |
|favourable non-recurring | | | | |
|items | | | | |
+-------------------------+--------------+--------+-------+---------------+
+-------------------------+--------+--------+
|IFRS, unaudited, (EUR | | |
|million) | | |
+-------------------------+--------+--------+
|Constant and adjusted | | |
|basis | | |
+-------------------------+--------+--------+
| | 2007 | Change |
+-------------------------+--------+--------+
|Sales |1,928.9 | +1.8% |
+-------------------------+--------+--------+
|Constant basis and same | | +0.6% |
|number of working days | | |
+-------------------------+--------+--------+
|Gross Margin | 24.8% |+10 bps |
+-------------------------+--------+--------+
|Excluding Q1 07 | 24.8% |+10 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+--------+--------+
|Operating expenses |(373.5) | +2.3% |
+-------------------------+--------+--------+
|(including depreciation) | | |
+-------------------------+--------+--------+
|EBITA | 104.1 | +3.3% |
+-------------------------+--------+--------+
|As % of sales | 5.4% |+10 bps |
+-------------------------+--------+--------+
|Excluding Q1 07 | 5.4% |+10 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+--------+--------+
Business activity
Sales rose 1.6% year-to-date and 0.6% in the third quarter reflecting a
general slowdown in the construction end-market. By country:
- France (+3.0% year-to-date, +3.8% in Q3 08): Rexel outperformed the
market owing to strong growth with small and medium contractors as well as
panel builders (+6% and +9%, respectively). By product families, sales
growth was driven by electrical installation equipment (+5%) and climate
control (+7%);
- United Kingdom (-0.4% year-to-date, -1.7% in Q3 08): Rexel's historical
banners posted 2.1% growth year-to-date, mainly attributable to small and
medium size projects in the commercial end-market and to branch openings
which almost offset the decrease in sales of the banners acquired from
Hagemeyer;
- Germany (+2.4% year-to-date, +1.1% in Q3 08): whilst residential
construction lost momentum in the third quarter, growth was driven by the
industrial end-market (30% of total sales) which recorded a double digit
increase. This was the result of added-value services provided through
twenty competence centres dedicated to assist the industrial customer base;
- Scandinavia (+7.0% year-to-date, +3.5% in Q3 08): Rexel outperformed the
market year-to-date thanks to its ability to serve large contractors and
its focus on large industrial accounts, including MRO, while a general
slowdown was apparent in the third quarter.
- Other Europe (-0.7% year-to-date, -2.4% in Q3 08): year-to-date sales
dropped in Spain, Ireland and Eastern Europe while they grew in other
European countries.
Operating performance
Gross margin was up 20 bps year-to-date and 10 bps in the third quarter,
excluding the favourable non-recurring items of Q1 07. This was led by
changes in product and customer mix, and by better purchasing terms
including initial synergies from the Hagemeyer acquisition;
Operating expenses (including depreciation) were kept under control,
notably personnel expenses whose growth was contained at +1.0%: in order to
adapt costs to the economic situation, the number of employees as of
September 30, 2008 was down 2.4% compared to December 31, 2007, mainly in
Spain and the United Kingdom.
As a result, EBITA margin excluding the favourable non-recurring items in
Q1 07 increased by 10 bps both year-to-date and in the third quarter, to
5.8% and 5.5%, respectively.
North America
+------------------------+--------------+--------+--------+---------------+
|IFRS, unaudited, (EUR |Nine months to| | |Three months to|
|million) | | | | |
+------------------------+--------------+--------+--------+---------------+
|Constant and adjusted |September 30th| | |September 30th |
|basis | | | | |
+------------------------+--------------+--------+--------+---------------+
| | 2008 | 2007 | Change | 2008 |
+------------------------+--------------+--------+--------+---------------+
|Sales | 3,262.2 |3,284.4 | -0.7% | 1,121.6 |
+------------------------+--------------+--------+--------+---------------+
|Constant basis and same | | | 0.0% | |
|number of working days | | | | |
+------------------------+--------------+--------+--------+---------------+
|Gross Margin | 21.8% | 21.9% |-10 bps | 21.6% |
+------------------------+--------------+--------+--------+---------------+
|Excluding Q1 07 | 21.8% | 21.7% |+10 bps | 21.6% |
|favourable non-recurring| | | | |
|items | | | | |
+------------------------+--------------+--------+--------+---------------+
|Operating expenses | (546.5) |(553.1) | -1.2% | (184.0) |
+------------------------+--------------+--------+--------+---------------+
|(including depreciation)| | | | |
+------------------------+--------------+--------+--------+---------------+
|EBITA | 164.3 | 166.0 | -1.0% | 58.8 |
+------------------------+--------------+--------+--------+---------------+
|As % of sales | 5.0% | 5.1% |-10 bps | 5.2% |
+------------------------+--------------+--------+--------+---------------+
|Excluding Q1 07 | 5.0% | 4.8% |+20 bps | 5.2% |
|favourable non-recurring| | | | |
|items | | | | |
+------------------------+--------------+--------+--------+---------------+
+-------------------------+--------+--------+
|IFRS, unaudited, (EUR | | |
|million) | | |
+-------------------------+--------+--------+
|Constant and adjusted | | |
|basis | | |
+-------------------------+--------+--------+
| | 2007 | Change |
+-------------------------+--------+--------+
|Sales |1,137.9 | -1.4% |
+-------------------------+--------+--------+
|Constant basis and same | | -1.1% |
|number of working days | | |
+-------------------------+--------+--------+
|Gross Margin | 21.4% |+20 bps |
+-------------------------+--------+--------+
|Excluding Q1 07 | 21.4% |+20 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+--------+--------+
|Operating expenses |(187.5) | -1.9% |
+-------------------------+--------+--------+
|(including depreciation) | | |
+-------------------------+--------+--------+
|EBITA | 55.9 | +5.1% |
+-------------------------+--------+--------+
|As % of sales | 4.9% |+30 bps |
+-------------------------+--------+--------+
|Excluding Q1 07 | 4.9% |+30 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+--------+--------+
Business activity
Sales were flat year-to-date (-1.1% in Q3 08), of which:
- USA (-1.0% year-to-date, -3.1% in Q3 08): the downturn of residential
construction continued in the third quarter while additional commercial end-
markets weakened and some industrial segments started to slow down.
Overall, the current financial crisis led to cancellations or postponements
of projects. Sales continued to grow in some governmental projects in
hospitals and education and specific industries, such as power generation
and petrochemicals;
- Canada (+3.2% year-to-date, +6.0% in Q3 08): year-to-date sales were
affected by a softening economy, in particular in the industrial sector,
notably in Ontario and Quebec, as well as in forestry operations in British
Columbia. Growth improved in the third quarter as sales teams were able to
refocus on the growing sectors at regional level such as oil sands projects
in Alberta and institutional and commercial projects in Eastern Canada and
Ontario.
Operating performance
Gross margin improved 10 bps year-to-date and 20 bps in the third quarter,
excluding the Q1 07 favourable non-recurring items. These improvements were
due to better pricing and improvement in purchasing terms;
Operating expenses (including depreciation) were down 1.2% year-to-date,
dropping faster than the 0.7% actual-day sales reduction, thanks to the
continuation of the cost reduction plan. Personnel costs decreased by 3.4%
due to staff reductions started in 2007 and continued in 2008 in order to
adapt to current demand. Headcount as of September 30, 2008 was down 5.5%
compared with December 31, 2007;
EBITA margin increased by 20 bps year-to-date and 30 bps in the third
quarter, excluding the Q1 07 favourable non-recurring items, thanks to the
efficiency of Rexel's cost adaptation plan.
Asia-Pacific
+------------------------+--------------+--------+--------+---------------+
|IFRS, unaudited, (EUR |Nine months to| | |Three months to|
|million) | | | | |
+------------------------+--------------+--------+--------+---------------+
|Constant and adjusted |September 30th| | |September 30th |
|basis | | | | |
+------------------------+--------------+--------+--------+---------------+
| | 2008 | 2007 | Change | 2008 |
+------------------------+--------------+--------+--------+---------------+
|Sales | 686.3 | 634.7 | +8.1% | 237.9 |
+------------------------+--------------+--------+--------+---------------+
|Constant basis and same | | | +7.5% | |
|number of working days | | | | |
+------------------------+--------------+--------+--------+---------------+
|Gross Margin | 24.4% | 25.2% |-80 bps | 23.8% |
+------------------------+--------------+--------+--------+---------------+
|Excluding Q1 07 | 24.4% | 25.2% |-80 bps | 23.8% |
|favourable non-recurring| | | | |
|items | | | | |
+------------------------+--------------+--------+--------+---------------+
|Operating expenses | (120.1) |(118.7) | +1.2% | (40.1) |
+------------------------+--------------+--------+--------+---------------+
|(including depreciation)| | | | |
+------------------------+--------------+--------+--------+---------------+
|EBITA | 47.6 | 41.4 | +15.0% | 16.6 |
+------------------------+--------------+--------+--------+---------------+
|As % of sales | 6.9% | 6.5% |+40 bps | 7.0% |
+------------------------+--------------+--------+--------+---------------+
|Excluding Q1 07 | 6.9% | 6.5% |+40 bps | 7.0% |
|favourable non-recurring| | | | |
|items | | | | |
+------------------------+--------------+--------+--------+---------------+
+-------------------------+-------+---------+
|IFRS, unaudited, (EUR | | |
|million) | | |
+-------------------------+-------+---------+
|Constant and adjusted | | |
|basis | | |
+-------------------------+-------+---------+
| | 2007 | Change |
+-------------------------+-------+---------+
|Sales | 221.5 | +7.4% |
+-------------------------+-------+---------+
|Constant basis and same | | +5.7% |
|number of working days | | |
+-------------------------+-------+---------+
|Gross Margin | 25.0% |-120 bps |
+-------------------------+-------+---------+
|Excluding Q1 07 | 25.0% |-120 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+-------+---------+
|Operating expenses |(40.2) | -0.2% |
+-------------------------+-------+---------+
|(including depreciation) | | |
+-------------------------+-------+---------+
|EBITA | 15.1 | +9.9% |
+-------------------------+-------+---------+
|As % of sales | 6.8% | +20 bps |
+-------------------------+-------+---------+
|Excluding Q1 07 | 6.8% | +20 bps |
|favourable non-recurring | | |
|items | | |
+-------------------------+-------+---------+
Business activity
In Asia-Pacific, organic growth was sustained at 7.5% year-to-date (+5.7%
in Q3 08), of which:
- Australia (+8.2% year-to-date, +7.4% in Q3 08): strong industrial and
mining businesses and steady non-residential construction activity enabled
Rexel banners to outperform the market year-to-date. Sales growth was
particularly high in Queensland, New South Wales and Western Australia.
Industrial key accounts and large national contractors were the main growth
drivers. The momentum observed in the first half of the year was maintained
in the third quarter;
- Asia (14.3% year-to-date, +5.3% in Q3 08): growth evidences the quick
development of the Group's different banners, particularly driven by the
lighting and automation segments and panel building customers. Growth in
the third quarter reflects the disruption from the Olympic games in China.
Operating performance
Gross margin: the 80 basis points year-to-date decrease and the 120 basis
points decrease in the third quarter are mainly attributable to Australia
(more projects with lower gross margin but also lower costs and good
payment terms) and to a lesser extent to strong growth in Asia where gross
margin is lower (regional mix effect);
Operating expenses (including depreciation) were almost flat owing to tight
cost control despite a 4.7% rise in personnel costs, mainly due to the
acquisitions of ABK in Australia and Egleys in New-Zealand. As a result,
operating expenses as a percentage of sales dropped by 120 bps year-to-date
and 140 bps in the third quarter;
Consequently, EBITA margin improved by 40 bps year-to-date and by 20 bps in
the third quarter to 6.9% and 7.0%, respectively.
Appendix 2
Financial Statements
+-------------------------+---------------+----------+-----------+
|IFRS, unaudited, EUR |Nine months to | | |
|million | | | |
+-------------------------+---------------+----------+-----------+
| |September 30th | | |
+-------------------------+---------------+----------+-----------+
| | 2008 | 2007 |Var (in %) |
+-------------------------+---------------+----------+-----------+
|Reported basis | | | |
+-------------------------+---------------+----------+-----------+
|Sales | 9,438.0 | 7,981.8 | +18.2% |
+-------------------------+---------------+----------+-----------+
|Gross profit | 2,287.2 | 1,961.4 | +16.6% |
+-------------------------+---------------+----------+-----------+
|As a % of sales | 24.2% | 24.6% | -40 bps |
+-------------------------+---------------+----------+-----------+
|Operating expenses | (1,777.3) |(1,470.9) | +20.8% |
+-------------------------+---------------+----------+-----------+
|(including depreciation) | | | |
+-------------------------+---------------+----------+-----------+
|EBITDA | 584.4 | 543.5 | +7.5% |
+-------------------------+---------------+----------+-----------+
|As a % of sales | 6.2% | 6.8% | -60 bps |
+-------------------------+---------------+----------+-----------+
|EBITA | 509.9 | 490.5 | +4.0% |
+-------------------------+---------------+----------+-----------+
|As a % of sales | 5.4% | 6.1% | -70 bps |
+-------------------------+---------------+----------+-----------+
|Other income & expenses | 26.1 | (50.7) | n.s. |
+-------------------------+---------------+----------+-----------+
|Operating income | 536.0 | 439.8 | +21.8% |
+-------------------------+---------------+----------+-----------+
|Financial expenses (net) | (140.9) | (293.0) | n.s. |
+-------------------------+---------------+----------+-----------+
|Net income before income | 395.1 | 146.8 | n.s. |
|tax | | | |
+-------------------------+---------------+----------+-----------+
|Income tax | (101.1) | (59.9) | n.s. |
+-------------------------+---------------+----------+-----------+
|Net income | 294.0 | 86.9 | n.s. |
+-------------------------+---------------+----------+-----------+
|Net income pre | 313.0 | 237.5 | +31.8% |
|IPO-related expenses | | | |
+-------------------------+---------------+----------+-----------+
+-------------------------+----------------+--------+-----------+
|IFRS, unaudited, EUR |Three months to | | |
|million | | | |
+-------------------------+----------------+--------+-----------+
| | September 30th | | |
+-------------------------+----------------+--------+-----------+
| | 2008 | 2007 |Var (in %) |
+-------------------------+----------------+--------+-----------+
|Reported basis | | | |
+-------------------------+----------------+--------+-----------+
|Sales | 3,447.1 |2,677.0 | +28.8% |
+-------------------------+----------------+--------+-----------+
|Gross profit | 819.1 | 646.6 | +26.7% |
+-------------------------+----------------+--------+-----------+
|As a % of sales | 23.8% | 24.2% | -40 bps |
+-------------------------+----------------+--------+-----------+
|Operating expenses | (644.2) |(484.1) | +33.1% |
+-------------------------+----------------+--------+-----------+
|(including depreciation) | | | |
+-------------------------+----------------+--------+-----------+
|EBITDA | 203.3 | 181.4 | +12.1% |
+-------------------------+----------------+--------+-----------+
|As a % of sales | 5.9% | 6.8% | -90 bps |
+-------------------------+----------------+--------+-----------+
|EBITA | 174.9 | 162.5 | +7.6% |
+-------------------------+----------------+--------+-----------+
|As a % of sales | 5.1% | 6.1% | -100 bps |
+-------------------------+----------------+--------+-----------+
|Other income & expenses | (51.8) | (19.5) | n.s. |
+-------------------------+----------------+--------+-----------+
|Operating income | 123.1 | 143.0 | -13.9% |
+-------------------------+----------------+--------+-----------+
|Financial expenses (net) | (57.8) | (29.8) | n.s. |
+-------------------------+----------------+--------+-----------+
|Net income before income | 65.3 | 113.2 | -42.3% |
|tax | | | |
+-------------------------+----------------+--------+-----------+
|Income tax | (30.7) | (45.3) | n.s. |
+-------------------------+----------------+--------+-----------+
|Net income | 34.6 | 67.9 | n.s. |
+-------------------------+----------------+--------+-----------+
|Net income pre | 36.1 | 86.8 | -58.4% |
|IPO-related expenses | | | |
+-------------------------+----------------+--------+-----------+
Income Statement
+------------------------+----------+----------+--------+--------+--------+
|Constant and adjusted | | | | | |
|basis | | | | | |
+------------------------+----------+----------+--------+--------+--------+
|Sales | 9,438.0 | 9,257.0 | +2.0% |3,447.1 |3,411.2 |
+------------------------+----------+----------+--------+--------+--------+
|Gross Profit | 2,292.2 | 2,247.7 | +2.0% | 826.8 | 812.1 |
+------------------------+----------+----------+--------+--------+--------+
|Gross profit excl. Q1 07| 2,292.2 | 2,231.7 | +2.7% | 826.8 | 812.1 |
|non-recurring items | | | | | |
+------------------------+----------+----------+--------+--------+--------+
|Gross margin as a % of | 24.3% | 24.1% |+20 bps | 24.0% | 23.8% |
|sales excl. Q1 07 | | | | | |
|non-recurring items | | | | | |
+------------------------+----------+----------+--------+--------+--------+
|Operating expenses |(1,771.7) |(1,735.9) | +2.1% |(641.5) |(632.8) |
+------------------------+----------+----------+--------+--------+--------+
|(including depreciation)| | | | | |
+------------------------+----------+----------+--------+--------+--------+
|EBITA | 520.5 | 511.8 | +1.7% | 185.3 | 179.3 |
+------------------------+----------+----------+--------+--------+--------+
|As a % of sales | 5.5% | 5.5% | = | 5.4% | 5.3% |
+------------------------+----------+----------+--------+--------+--------+
|EBITA excl. Q1 07 | 520.5 | 494.2 | +5.3% | 185.3 | 177.7 |
|non-recurring items | | | | | |
+------------------------+----------+----------+--------+--------+--------+
|As a % of sales | 5.5% | 5.3% |+20 bps | 5.4% | 5.2% |
+------------------------+----------+----------+--------+--------+--------+
+-------------------------+--------+
|Constant and adjusted | |
|basis | |
+-------------------------+--------+
|Sales | +1.1% |
+-------------------------+--------+
|Gross Profit | +1.8% |
+-------------------------+--------+
|Gross profit excl. Q1 07 | +1.8% |
|non-recurring items | |
+-------------------------+--------+
|Gross margin as a % of |+20 bps |
|sales excl. Q1 07 | |
|non-recurring items | |
+-------------------------+--------+
|Operating expenses | +1.4% |
+-------------------------+--------+
|(including depreciation) | |
+-------------------------+--------+
|EBITA | +3.3% |
+-------------------------+--------+
|As a % of sales |+10 bps |
+-------------------------+--------+
|EBITA excl. Q1 07 | +4.3% |
|non-recurring items | |
+-------------------------+--------+
|As a % of sales |+20 bps |
+-------------------------+--------+
Change in Net Debt
+-------------------------+--------------+--------+---------------+-------+
|IFRS, unaudited, EUR |Nine months to| |Three months to| |
|million | | | | |
+-------------------------+--------------+--------+---------------+-------+
| |September 30th| |September 30th | |
+-------------------------+--------------+--------+---------------+-------+
| | 2008 | 2007 | 2008 | 2007 |
+-------------------------+--------------+--------+---------------+-------+
|EBITDA | 584.4 | 543.5 | 203.3 | 181.4 |
+-------------------------+--------------+--------+---------------+-------+
|Other operating revenues | (39.6) | (14.3) | (21.7) | (7.0) |
|& costs | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Change in Working capital| (74.9) | (77.9) | (52.9) |(70.3) |
+-------------------------+--------------+--------+---------------+-------+
|Net capital expenditure | 4.4 | (0.5) | (12.5) |(17.1) |
+-------------------------+--------------+--------+---------------+-------+
|Free cash flow before | 474.3 | 450.8 | 116.2 | 87.0 |
|interest and tax paid | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Net interest paid / | (133.5) |(192.4) | (52.1) |(27.2) |
|received(1) | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Income tax paid | (83.8) | (24.3) | (26.2) |(27.1) |
+-------------------------+--------------+--------+---------------+-------+
|Free cash flow after | 257.0 | 234.1 | 37.8 | 32.7 |
|interest and tax paid | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Financial investments | (1,441.6) | (32.5) | (32.4) |(10.4) |
|(net) (2) | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Change in equity | 3.5 | 999.6 | 5.7 |(10.5) |
+-------------------------+--------------+--------+---------------+-------+
|Dividends paid | (94.4) | - | - | - |
+-------------------------+--------------+--------+---------------+-------+
|Other(3) | (331.1) |1,012.3 | (77.3) | 40.9 |
+-------------------------+--------------+--------+---------------+-------+
|Decrease (increase) in | (1,606.6) |2,213.5 | (66.2) | 52.7 |
|net (debt) | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Net debt at the beginning| 1,606.6 |3,901.0 | 3,147.0 |1,740.2|
|of the period | | | | |
+-------------------------+--------------+--------+---------------+-------+
|Net Debt at the end of | 3,213.2 |1,687.5 | 3,213.2 |1,687.5|
|the period | | | | |
+-------------------------+--------------+--------+---------------+-------+
(1) Including the high yield bond redemption cost of EUR 89.6 million in Q2
07
(2) In 2008, includes mainly the cash outlay for the acquisition of 99.0%
of the shares and 100% of the convertible bonds of Hagemeyer as well as the
net proceeds of the asset swap and disposals to Sonepar.
(3) Including capitalization of the shareholders' loan (EUR 1,039.9 million
in 2007) and Hagemeyer's gross debt at the acquisition date (EUR 315.3
million in 2008)
Summarized Balance Sheet
+-------------------------+--------------------+--------------------+
|IFRS, EUR million |September 30th, 2008|December 31st, 2007 |
+-------------------------+--------------------+--------------------+
|unaudited |audited | |
+-------------------------+--------------------+--------------------+
|ASSETS | | |
+-------------------------+--------------------+--------------------+
|Goodwill & intangible |4,823.2 | 3,294.3 |
|assets | | |
+-------------------------+--------------------+--------------------+
|Property, plant & |343.8 | 272.1 |
|equipment | | |
+-------------------------+--------------------+--------------------+
|Long-term investments |60.4 | 76.8 |
+-------------------------+--------------------+--------------------+
|Deferred tax assets |223.9 | 127.4 |
+-------------------------+--------------------+--------------------+
|Total non-current assets |5,451.3 | 3,770.6 |
+-------------------------+--------------------+--------------------+
|Inventories |1,505.5 | 1,143.2 |
+-------------------------+--------------------+--------------------+
|Trade accounts receivable|2,698.6 | 2,018.5 |
+-------------------------+--------------------+--------------------+
|Other accounts |495.4 | 424.0 |
|receivables & assets | | |
|classified as held for | | |
|sale | | |
+-------------------------+--------------------+--------------------+
|Cash and cash equivalents|687.7 | 515.2 |
+-------------------------+--------------------+--------------------+
|Total current assets |5,387.2 | 4,100.9 |
+-------------------------+--------------------+--------------------+
|TOTAL ASSETS |10,838.5 | 7,871.5 |
+-------------------------+--------------------+--------------------+
|EQUITY & LIABILITIES | | |
+-------------------------+--------------------+--------------------+
|TOTAL EQUITY |3,464.1 | 3,227.3 |
+-------------------------+--------------------+--------------------+
|Interest bearing debt |3,656.0 | 1,999.1 |
+-------------------------+--------------------+--------------------+
|Other non current |614.1 | 339.9 |
|liabilities | | |
+-------------------------+--------------------+--------------------+
|Total non-current |4,270.1 | 2,339.0 |
|liabilities | | |
+-------------------------+--------------------+--------------------+
|Interest bearing debt & |244.9 | 122.7 |
|accrued interest | | |
+-------------------------+--------------------+--------------------+
|Trade accounts payable |2,164.7 | 1,659.3 |
+-------------------------+--------------------+--------------------+
|Other current liabilities|694.7 | 523.2 |
+-------------------------+--------------------+--------------------+
|Total current liabilities|3,104.3 | 2,305.2 |
+-------------------------+--------------------+--------------------+
|Total liabilities |7,374.4 | 4,644.2 |
+-------------------------+--------------------+--------------------+
|TOTAL EQUITY AND |10,838.5 | 7,871.5 |
|LIABILITIES | | |
+-------------------------+--------------------+--------------------+
Appendix 3
Senior Credit Agreement
Under the terms of the new 2008 Senior Credit Agreement put in place to
finance the acquisition of Hagemeyer, the Group is required to maintain a
leverage ratio (Net debt to LTM EBITDA) below a certain level. This
mechanism is described in note 25 of the 2007 Financial Statements
disclosed on February 14, 2008 and in Chapter 10.2.2 of the 2007 Document
de Référence.
Leverage covenant calculation
+-------------------------+--------------------+
|EUR million |September 30th, 2008|
+-------------------------+--------------------+
|Net debt at closing |3,213.2 |
|currency exchange rates | |
+-------------------------+--------------------+
|Net debt at average |3,205.1 |
|currency exchange rates | |
|(A) | |
+-------------------------+--------------------+
|LTM Adjusted EBITDA (B) |869.2 |
+-------------------------+--------------------+
|Leverage ratio (A) / (B) |3.69 |
+-------------------------+--------------------+
Leverage covenant commitment
+-----------+---------+---------+---------+---------+---------+---------+
| |31/12/08 |30/06/09 |31/12/09 |30/06/10 |31/12/10 |30/06/11 |
+-----------+---------+---------+---------+---------+---------+---------+
|Commitment | 4.75x | 4.75x | 4.50x | 4.25x | 3.90x | 3.50x |
+-----------+---------+---------+---------+---------+---------+---------+
+-----------+---------+---------+---------+---------+---------+---------+
+-----------+---------+
| |31/12/11 |
+-----------+---------+
|Commitment | 3.50x |
+-----------+---------+
+-----------+---------+
Debt mandatory repayments (until Dec 2011)
+-----------+--------------+-----------+
| Tranche | Date |EUR million|
+-----------+--------------+-----------+
|Facility A |December 2009 | 165 |
+-----------+--------------+-----------+
|Facility D | March 2010 | 370 |
+-----------+--------------+-----------+
|Facility A |December 2010 | 270 |
+-----------+--------------+-----------+
|Facility A |December 2011 | 270 |
+-----------+--------------+-----------+
+-----------+--------------+-----------+
Facility D was set-up as a bridge to a new securitization program related
to Hagemeyer's receivables
Appendix 4
Pro forma financial information
The following financial information reflects the impact the following
operations would have had on the consolidated financial statements had they
been carried out as of January 1, 2008: (i) the purchasing of all
outstanding shares and convertible bonds of Hagemeyer, (ii) the disposals
and asset swap agreed upon with Sonepar and (iii) the divestment of certain
of Hagemeyer's activities in Ireland. The methodology and assumptions on
which they are based are described in chapter 20.2 of the 2007 'Document de
Référence', registered by the 'Autorité des Marchés Financiers' (AMF) on
April 30, 2008, under number R.08-046. For 2007, adjusted gross profit and
EBITA exclude the favourable Q1 07 non-recurring items previously disclosed
and include the same amount of the same amount of share-based compensation
as in 2008 (EUR 1.6 million).
Income statement
+-------------------------+--------------------+--------------------+
|EUR million |Year-to-date to |Year-to-date to |
| |September 08 |September 07 |
+-------------------------+--------------------+--------------------+
|Constant and Adjusted | | |
+-------------------------+--------------------+--------------------+
|Sales |10,309.5 |10,086.6 |
+-------------------------+--------------------+--------------------+
|Same number of working | | |
|days | | |
+-------------------------+--------------------+--------------------+
|Adjusted gross profit |2,493.8 |2,414.0 |
+-------------------------+--------------------+--------------------+
|as a % of sales |24.2% |23.9% |
+-------------------------+--------------------+--------------------+
|Adjusted operating |(1,960.3) |(1,902.3) |
|expenses (including | | |
|depreciation) | | |
+-------------------------+--------------------+--------------------+
|Adjusted EBITA |533.5 |511.7 |
+-------------------------+--------------------+--------------------+
|as a % of sales |5.2% |5.1% |
+-------------------------+--------------------+--------------------+
+-------------------------+----------------+
|EUR million |Var 2008 / 2007 |
| | |
+-------------------------+----------------+
|Constant and Adjusted | |
+-------------------------+----------------+
|Sales | +2.2% |
+-------------------------+----------------+
|Same number of working | +2.1% |
|days | |
+-------------------------+----------------+
|Adjusted gross profit | +3.3% |
+-------------------------+----------------+
|as a % of sales | +30 bps |
+-------------------------+----------------+
|Adjusted operating | +3.0% |
|expenses (including | |
|depreciation) | |
+-------------------------+----------------+
|Adjusted EBITA | +4.3% |
+-------------------------+----------------+
|as a % of sales | +10 bps |
+-------------------------+----------------+
Reconciliation between Rexel stand-alone and Rexel pro forma
+-------------------------+---------+------------------+------------------+
|Year-to-date to September| Rexel |Retained Hagemeyer|Other restatements|
|08 | |entities and asset|related to these |
| | |swap |operations |
+-------------------------+---------+------------------+------------------+
|EUR million | | | |
+-------------------------+---------+------------------+------------------+
|Sales | 9,438.0 |871.5 |- |
+-------------------------+---------+------------------+------------------+
|Adjusted Gross profit | 2,292.2 |201.6 |- |
+-------------------------+---------+------------------+------------------+
|As a % of sales | 24.3% |23.1% |- |
+-------------------------+---------+------------------+------------------+
|Operating expenses |(1,777.3)|(188.6) |(3.0) |
|(including depreciation) | | | |
+-------------------------+---------+------------------+------------------+
|EBITDA | 584.4 |19.5 |- |
+-------------------------+---------+------------------+------------------+
|As a % of sales | 6.2% |2.2% |- |
+-------------------------+---------+------------------+------------------+
|EBITA | 509.9 |11.2 |(3.0) |
+-------------------------+---------+------------------+------------------+
|As a % of sales | 5.4% |1.3% |- |
+-------------------------+---------+------------------+------------------+
|Adjusted EBITA | 520.5 |13.0 |- |
+-------------------------+---------+------------------+------------------+
|As a % of sales | 5.5% |1.5% |- |
+-------------------------+---------+------------------+------------------+
|Other income & expenses | 26.1 |(13.7) |- |
+-------------------------+---------+------------------+------------------+
|Operating income | 536.0 |(2.5) |(3.0) |
+-------------------------+---------+------------------+------------------+
|Financial expenses (net) | (140.9) |(0.3) |(11.1) |
+-------------------------+---------+------------------+------------------+
|Net income before income | 395.1 |(2.8) |(14.1) |
|tax | | | |
+-------------------------+---------+------------------+------------------+
|Income tax | (101.1) |8.3 |(2.6) |
+-------------------------+---------+------------------+------------------+
|Net income | 294.0 |5.5 |(16.7) |
+-------------------------+---------+------------------+------------------+
+-------------------------+----------+
|Year-to-date to September|Pro forma |
|08 | |
| | |
+-------------------------+----------+
|EUR million | |
+-------------------------+----------+
|Sales | 10,309.5 |
+-------------------------+----------+
|Adjusted Gross profit | 2,493.8 |
+-------------------------+----------+
|As a % of sales | 24.2% |
+-------------------------+----------+
|Operating expenses |(1,968.9) |
|(including depreciation) | |
+-------------------------+----------+
|EBITDA | 603.9 |
+-------------------------+----------+
|As a % of sales | 5.9% |
+-------------------------+----------+
|EBITA | 518.1 |
+-------------------------+----------+
|As a % of sales | 5.0% |
+-------------------------+----------+
|Adjusted EBITA | 533.5 |
+-------------------------+----------+
|As a % of sales | 5.2% |
+-------------------------+----------+
|Other income & expenses | 12.4 |
+-------------------------+----------+
|Operating income | 530.5 |
+-------------------------+----------+
|Financial expenses (net) | (152.3) |
+-------------------------+----------+
|Net income before income | 378.2 |
|tax | |
+-------------------------+----------+
|Income tax | (95.4) |
+-------------------------+----------+
|Net income | 282.8 |
+-------------------------+----------+
Sales by geographic area
+----------------+--------+------------------+--------+------------------+
|Geographic area | Q3 08 |Var Q3 08 / Q3 07 | Q2 08 |Var Q2 08 / Q2 07 |
+----------------+--------+------------------+--------+------------------+
|In million EUR | | Constant(1) | | Constant(1) |
+----------------+--------+------------------+--------+------------------+
|Europe |1,963.2 | +0.7% |2,057.0 | +1.7% |
+----------------+--------+------------------+--------+------------------+
|of which | | | | |
+----------------+--------+------------------+--------+------------------+
|France | 589.6 | +3.8% | 629.6 | +1.9% |
+----------------+--------+------------------+--------+------------------+
|United Kingdom | 308.0 | -1.8% | 302.6 | -0.7% |
+----------------+--------+------------------+--------+------------------+
|Germany | 232.3 | +1.1% | 214.5 | +5.7% |
+----------------+--------+------------------+--------+------------------+
|Scandinavia | 227.1 | +4.7% | 250.9 | +9.9% |
+----------------+--------+------------------+--------+------------------+
|North America |1,121.6 | -1.1% |1,087.5 | -0.2% |
+----------------+--------+------------------+--------+------------------+
|Asia - Pacific | 237.9 | +5.7% | 246.1 | +8.7% |
+----------------+--------+------------------+--------+------------------+
|ACE and others | 124.9 | +0.2% | 135.9 | +11.2% |
+----------------+--------+------------------+--------+------------------+
|Group total |3,447.6 | +0.4% |3 526.5 | +1.9% |
+----------------+--------+------------------+--------+------------------+
+----------------+--------+------------------+--------+------------------+
+----------------+--------+------------------+
|Geographic area | Q1 08 |Var Q1 08 / Q1 07 |
+----------------+--------+------------------+
|In million EUR | | Constant(1) |
+----------------+--------+------------------+
|Europe |1,965.1 | +4.9% |
+----------------+--------+------------------+
|of which | | |
+----------------+--------+------------------+
|France | 617.4 | +3.4% |
+----------------+--------+------------------+
|United Kingdom | 315.8 | +1.3% |
+----------------+--------+------------------+
|Germany | 200.7 | +11.4% |
+----------------+--------+------------------+
|Scandinavia | 226.3 | +10.2% |
+----------------+--------+------------------+
|North America |1,053.1 | +1.2% |
+----------------+--------+------------------+
|Asia - Pacific | 202.3 | +8.2% |
+----------------+--------+------------------+
|ACE and others | 114.9 | +16.5% |
+----------------+--------+------------------+
|Group total |3 335.4 | +4.2% |
+----------------+--------+------------------+
+----------------+--------+------------------+
(1) At constant scope of consolidation and exchange rates and, for sales,
at same number of working days
Profitability by geographic zone
+------------------------+---------------+-------------+------------+-----+
|EUR million | Europe |North America|Asia Pacific|Other|
+------------------------+---------------+-------------+------------+-----+
|Year-to-date to | | | | |
|September 08 | | | | |
+------------------------+---------------+-------------+------------+-----+
|Sales | 5,985.3| 3,262.2| 686.3|375.7|
+------------------------+---------------+-------------+------------+-----+
|Adjusted gross profit | 1,502.9| 710.9| 167.8|112.2|
+------------------------+---------------+-------------+------------+-----+
|as a % of sales | 25.1%| 21.8%| 24.4%|29.9%|
+------------------------+---------------+-------------+------------+-----+
|Adjusted EBITA | 319.6| 164.3| 47.6| 2.0|
+------------------------+---------------+-------------+------------+-----+
| |as a % of sales| | | |
+------------------------+---------------+-------------+------------+-----+
|5.3% | 5.0%| 6.9%| 0.5%| 5.2%|
+------------------------+---------------+-------------+------------+-----+
+-------------------------+---------+
|EUR million | Total |
+-------------------------+---------+
|Year-to-date to September| |
|08 | |
+-------------------------+---------+
|Sales |10,309.5 |
+-------------------------+---------+
|Adjusted gross profit | 2,493.8 |
+-------------------------+---------+
|as a % of sales | 24.2% |
+-------------------------+---------+
|Adjusted EBITA | 533.5 |
+-------------------------+---------+
| | |
+-------------------------+---------+
|5.3% | |
+-------------------------+---------+
[1] on a reported basis: +28,8% in Q3 08 and +18.2% year-to-date
[2] The average rate was 1.52 year-to-date to September 2008, compared with
1.34 year-to-date to September 2007
[3] The closing rate was 1.43 on September 30, 2008, compared with 1.58 on
June 30, 2008
[4] Based on the purchase of all outstanding shares and convertible bonds
of Hagemeyer the disposals and asset swap with Sonepar and the divestment
of Hagemeyer's electrical distribution activities in Ireland, on April 1,
2007.
[5] Taking into account the disposals and asset swap agreed upon with
Sonepar and the divestment of certain of Hagemeyer's activities in Ireland
required by the European Commission, retained activities include:
Hagemeyer's Professional Products & Services (PPS) activities in Belgium,
the Czech Republic, Estonia, Finland, Germany (6 branches excluded),
Latvia, Lithuania, the Netherlands, Norway, Poland, Russia, Spain and the
United Kingdom, as well as Hagemeyer's ACE activities and the remaining
Hagemeyer activities in Ireland.
This information is provided by HUGIN