RESILIENT PERFORMANCE IN A CHALLENGING
ENVIRONMENT
SOLID CASH FLOW GENERATION
SIGNIFICANT DEBT REDUCTION
STABLE PROPOSED DIVIDEND AT €0.75 PER
SHARE
PARIS, Feb. 13, 2014 (GLOBE NEWSWIRE) --
RESILIENT PERFORMANCE IN A CHALLENGING
ENVIRONMENT
- Sales of €13.012bn, down 3.3% on a reported basis and
down 2.7% on a constant and same-day basis ; sales sequentially
improved in Q4 (-0.9% on a constant and same-day basis after -2.7%
in Q3)
- Adj. EBITA1 margin of 5.4%, down 26bps year-on-year, in
line with the Group's operating efficiency ratio
SOLID CASH FLOW GENERATION AND
SIGNIFICANT DEBT REDUCTION
- Free cash flow of €601m before interest and tax and
€337m after interest and tax, in line with the Group's EBITDA
conversion rate
- Net debt reduced by €407m or 16% year-on-year; improved
indebtedness ratio at 2.72x EBITDA
FULL-YEAR 2014 OUTLOOK
- Sales in a range of around 1% below to around 2% above
2013 sales, on a constant and same-day basis
- Adjusted EBITA margin in a range of around 10bps below
to around 20bps above the 2013 margin, consistent with targeted
annual operating efficiency ratio of around 10bp change in adjusted
EBITA margin for each percentage point change in
sales
- Solid free cash-flow, consistent with targeted
conversion rate of at least 75% of EBITDA, before interest and tax,
and of around 40% of EBITDA, after interest and tax
Full-year 2013 key figures1 |
|
YoY change |
Sales |
€13,011.6m |
|
On a reported basis |
|
-3.3% |
On a constant and actual-day basis |
|
-3.0% |
On a constant and same-day basis |
|
-2.7% |
Adjusted EBITA |
€702.2m |
-7.6% |
As a percentage of sales |
5.4% |
|
Change in bps as a % of sales |
-26bps |
|
Reported EBITA |
€686.9m |
-10.5% |
Operating income |
€521.0m |
-19.5% |
Net income |
|
|
Net income |
€211.0m |
-33.8% |
Recurring net income |
€328.1m |
-15.1% |
Free cash flow before interest and tax |
€600.6m |
-4.3% |
Net debt at year-end |
€2,192.0m |
-15.7% |
1 See definition in the Glossary section on page
8
Rudy PROVOOST, Chairman of the
Management Board and CEO, said:
"Rexel's 2013 performance once again
confirmed the strength of its business model in a persistently
challenging environment, as well as its structural ability to
generate solid cash flow throughout the cycle. Despite a 3% decline
in organic sales, we delivered resilient profitability, driven by
gross margin discipline and strict cost control.
In line with our policy of paying out at
least 40% of recurring net income, we will propose to our
shareholders to maintain the 2014 dividend at last year's level of
€0.75 per share.
With respect to 2014, the evolution of
our sales and margin will be closely tied to the speed and
magnitude of the recovery in Europe and the US non-residential
end-market. In this context, we will continue to focus on further
developing our high-growth initiatives, enhancing cash generation
and increasing operating efficiency through margin discipline and
cost control.
Given Rexel's strong positions across
the globe, its robust business model and engaged teams, we remain
committed to our medium-term ambitions and are confident we will
drive sustained value creation for all stakeholders."
FINANCIAL REVIEW FOR THE PERIOD ENDED
DECEMBER 31, 2013
- Financial statements as of December 31, 2013 were
authorized for issue by the Management Board on February 6, 2014
and reviewed by the Supervisory Board meeting held on February 12,
2014. They have been audited by statutory auditors.
- The following terms: EBITA, Adjusted EBITA, EBITDA,
Free Cash Flow and Net Debt are defined in the Glossary section of
this document.
- Unless otherwise stated, all comments are on a constant
and adjusted basis and, for sales, at same number of working
days.
Sales of
€3,288m in Q4, down 4.4% year-on-year on a reported basis; down
0.9% year-on-year on a constant and same-day basis, reflecting a
sequential improvement over the 2.7% drop in Q3
Sales of €13,012m in FY 2013, down 3.3%
year-on-year on a reported basis; down 2.7% year-on-year on a
constant and same-day basis, reflecting challenging market
conditions in most geographies throughout the year
In the fourth quarter, Rexel posted
sales of €3,287.7 million, down 4.4% on a reported basis
and down 0.9% on a constant and same-day basis. This 0.9% drop in
Q4 represented a sequential improvement over the previous quarters:
-3.7% in Q1, -3.3% in Q2 and -2.7% in Q3. Excluding the 0.8%
negative impact due to the change in copper-based cable prices,
sales were almost stable (-0.1%) on a constant and same-day
basis.
The 4.4% drop in sales on a reported basis
included:
- A negative currency effect of €138.6 million (mainly due to the
depreciation of the US, Canadian and Australian dollars and British
pound against the euro),
- A positive effect of €22.8 million from last year's
acquisitions (mainly Munro in the US),
- A negative calendar effect of 0.2 percentage point.
The sequential improvement in sales trends on a
constant and same-day basis mainly reflected an improvement in
Europe (-1.4%, after -5.5% in Q1, -5.2% in Q2 and -4.9% in Q3),
driven by first signs of recovery in the UK and Germany, even if
these markets still posted slight sales drops in the quarter.
In the full-year, Rexel posted sales of
€13,011.6 million, down 3.3% on a reported basis and down
2.7% on a constant and same-day basis. Excluding the 0.8% negative
impact due to the change in copper-based cable prices, sales were
down 1.9% on a constant and same-day basis.
The 3.3% drop in sales on a reported basis
included:
- A negative currency effect of €367.9 million (mainly due to the
depreciation of the US, Canadian, and Australian dollars and
British pound against the euro),
- A positive effect of €334.6 million from last year's
acquisitions (mainly Platt and Munro in the US),
- A negative calendar effect of 0.3 percentage point.
Europe (55% of Group sales): -1.4% in Q4
and -4.2% in FY on a constant and same-day basis
In the fourth quarter, sales in Europe decreased
by 3.6% on a reported basis and by 1.4% on a constant and same-day
basis.
At zone level, the impact of lower photovoltaic
sales in Q4 2013 vs. Q4 2012 is not relevant; it is only relevant
for Germany and Belgium, as detailed below.
- In France, sales were broadly stable (-0.1%) and continued to
outperform the market. This very solid performance in the quarter
was driven by large projects that continued to mitigate the decline
in new construction and industrial end-market, as well as increased
renovation activity in the residential end-market in anticipation
of an announced increase in VAT (from 7% to 10% as from Jan. 1,
2014).
- In the UK, sales posted a significant sequential improvement
over the previous quarter, reflecting a gradual improvement in
market conditions. They were down 1.9% on a constant and same-day
basis, after a 7.5% drop in Q3. Excluding branch restructuring,
constant and same-day sales increased by 0.7% year-on-year, vs. a
5.7%-drop in Q3.
- In Germany, sales were down 3.9% in Q4, after a 7.6% drop in
Q3. Excluding photovoltaic, sales were down 3.3%, continuing to
reflect low activity in the construction and industrial end-markets
but significantly improving over the 7.0% recorded in Q3.
- In Scandinavia, sales grew by 0.9%, after drops of 7.0% in Q1,
5.4% in Q2 and 2.9% in Q3. This performance mainly reflected a
confirmed return to growth in Sweden (+8.1%, after +4.1% in Q3) and
a sequential improvement in Finland (-3.1%, after -13.8% in
Q3).
- In Belgium, sales declined by 6.2% in Q4 and by 3.9% excluding
photovoltaic sales.
- In the Netherlands, sales posted a 12.3% decline and remained
weak as the business continues to adapt to persistently difficult
market conditions.
- Both Switzerland (+0.9%) and Austria (-1.3%) remained very
resilient and improved performance vs. Q3 (-2.6% and -2.8%
respectively).
- Southern European countries continued to be impacted by tough
macro-economic conditions. Italy posted an 11% drop, while sales in
Spain were down 4.5% and sales in Portugal were broadly stable
(-0.1%).
North America (34% of Group sales):
-0.3% in Q4 and +0.6% in FY on a constant and same-day
basis
In the fourth quarter, sales in North America
were down 3.7% on a reported basis and broadly stable (- 0.3%) on a
constant and same-day basis. Both the US and Canada were impacted
in the quarter by extremely severe weather conditions that
continued in January.
- In the US, sales grew by 0.4% in the quarter, confirming the
recovery in the residential end-market and improved trends in
industry. It is the fourth consecutive quarter of growth resulting
in a 2.1% growth in the full-year.
- In Canada, sales were down 2.3% in the quarter (after a drop of
3.4% in the previous quarter). In the full-year, despite the
significant impact of lower sales to the mining industry in the
first three quarters of the year, sales proved rather resilient
with a 3.4% drop in sales on a constant and same-day basis.
Asia-Pacific (9% of Group sales): -1.5%
in Q4 and -5.4% in FY on a constant and same-day basis
In the fourth quarter, sales in Asia-Pacific
were down 10.7% on a reported basis, including a significant
negative effect of €33.1m from currencies (primarily the Australian
dollar against the euro) and a positive effect of €2.7m from the
acquisition of LuxLight in Singapore.
On a constant and same-day basis, sales were
down 1.5%.
- In China (c. 30% of the region's sales), sales were up 3.4%, in
the quarter, driven by solid activity in the industrial automation
segment.
- In South-East Asia (c. 5% of the region's sales), sales
continued to show strong dynamism, growing by 4.7%.
- In Australia (c. 55% of the region's sales), sales were down
8.2%, still impacted by tough macroeconomic conditions and by the
implementation of a new carbon tax since July 2012, which severely
hit mining projects. This is however a sequential improvement over
the double-digit declines recorded in the previous quarters (-13.4%
in Q1, -15.5% in Q2 and -12.8% in Q3). Excluding the impact of
branch closures, sales were down 7.2% (after -8.7% in Q3).
- In New Zealand (c. 10% of the region's sales), sales decreased
by 4.8% after a limited 0.5% drop in Q3; this deterioration mainly
reflected a more challenging base (Q4 2012 posted a 0.4% drop while
Q3 2012 posted a 14.8% drop).
Latin America (2% of Group sales): +3.5%
in Q4 and -0.5% in FY on a constant and same-day basis
In the fourth quarter, sales in Latin America
were down 9.1% on a reported basis, including a negative currency
effect of €10.2m (mainly attributable to the depreciation of the
Brazilian real and Chilean peso against the euro).
On a constant and same-day basis, sales
increased by 3.5%, reflecting contrasted performances:
- In Brazil (c. 60% of the region's sales), sales were stable and
confirmed slowing momentum already apparent in Q3 (+6.6% in Q1,
+7.8% in Q2 and +2.4% in Q3).
- In Chile (c. 30% of the region's sales), sales confirmed their
return to growth and were up 7.9% in the quarter (after +5.4% in
Q3). This compares to declines of 20.3% and 25.0% respectively in
Q1 and Q2, which were strongly impacted by the slowdown in sales to
the mining industry and challenging comparables.
- In Peru (c. 10% of the region's sales), sales increased by
9.5%.
Resilient profitability, confirming
solid operational efficiency and strict cost control, in a
challenging environment
In the fourth quarter, adjusted EBITA margin
stood at 5.83%. This represented a drop of 27bps year-on-year
(adjusted EBITA margin was 6.10 % in Q4 2012), while sales were
down by 1.1% on a constant and actual-day basis.
The 27 basis point drop year-on-year reflected:
· A 20 basis point
drop in gross margin, mainly reflecting a significant drop
(-170bps) of the gross margin of our Canadian operations, which
were adversely affected by a combination of the increased
proportion of revenues generated by major photovoltaic projects
that carry lower gross margin, lower rebates from suppliers and
increased competitive pressure due to unusually severe weather
conditions that affected the market, · A 7 basis point
increase in distribution and administrative expenses(including
depreciation) as a percentage of sales to 18.95%. Excluding
depreciation, these expenses were reduced by 0.7%, broadly in line
with the 1.1% drop in sales on a constant and actual-day basis.
In the full-year, adjusted EBITA margin
decreased by 26 basis points to 5.40% (compared to 5.66% in 2012),
while sales were down by 3.0% on a constant and actual-day
basis.
This 26 basis point drop reflected:
- A broadly stable gross margin, recording a limited drop of 4
basis points year-on-year at 24.63% (vs. 24.67% in 2012),
- A 22 basis point increase in distribution and administrative
expenses(including depreciation) as a percentage of sales to
19.23%. Excluding depreciation, these expenses were reduced by
2.0%, compared to a 3.0% drop in sales on a constant and actual-day
basis.
Reported EBITA stood at €686.9 million in the
full-year, a decrease of 10.5% year-on-year.
Reported net income impacted by one-off
financial expense, goodwill impairment and expected rise in tax
rate Recurring net income of €328m, down 15.1%
year-on-year
Operating income stood at €521.0 million in the
full-year, down 19.5% year-on-year.
- Amortization of intangibles resulting from purchase price
allocation amounted to €19.7 million (vs. €13.3 million in
2012).
- Other income and expenses amounted to a net charge of €146.2
million (vs. a net charge of €106.7 million in 2012). They included
€63.6 million of restructuring costs (vs. €49.9 million in 2012).
They also included a €67.3 million goodwill impairment charge, of
which €44.0 million were recorded at June 30 (almost entirely
related to operations in The Netherlands) and €23.3 million were
recorded at December 31 (related to operations in Brazil for €21.1
million and in Slovenia for €2.2 million).
Net financial expenses amounted to €213.5
million in the full-year (vs. €200.1 million in 2012). They
included the one-off financial expense of €23.5 million due to the
refinancing operations that took place in the first quarter. The
average effective interest rate was significantly reduced
throughout the year: it stood at 6.3% on net debt (vs. 7.0% in
2012) and at 5.4% on gross debt (vs. 6.3% in 2012).
Income tax represented a charge of €96.9 million
in the full-year. The effective tax rate was 31.5% (vs. 29.4% in
2012).
As a result of the above elements (drop in
operating income, increased restructuring costs, goodwill
depreciation, one-off financial expense and higher tax rate), net
income was down 33.8% in the full-year, at €211.0 million (vs.
€318.6 million in 2012).
Recurring net income amounted to €328.1 million
in the full-year, down 15.1% year-on-year, mainly reflecting the
drop in EBITA (see appendix 2).
Solid generation of free cash-flow
before interest and tax of €601m in the full-year
Net debt reduced by 15.7% to c. €2.2bn and indebtedness
ratio well below 3x (2.72x EBITDA)
In the full-year, free cash flow before interest
and taxwas an inflow of €600.6 million (vs. an inflow of €627.5
million in 2012). This net inflow included:
- Gross capital expenditure of €102.3 million (vs. €90.6 million
in 2012),
- Almost no change in working capital (very limited outflow of
€1.1 million), as working capital has been tightly managed
continuously.
At December 31, 2013, net debt stood at €2,192.0
million, reduced by slightly more than €400 million over the year
(€2,599.2 million at December 31, 2012).
It took into account:
- €169.3 million of net interest paid during the year,
- €94.2 million of income tax paid during the year,
- €103.2 million of favorable currency effect during the
year,
- €53.1 million of dividend paid in cash in the third
quarter.
At December 31, 2013, the indebtedness ratio
(Net financial debt / EBITDA), as calculated under the Senior
Credit Agreement terms, stood at 2.72x, vs. 2.95x at December 31,
2012. This is well in line with our objective of an indebtedness
ratio below 3 times EBITDA at year-end.
Stable proposed dividend of €0.75 per
share, in line with the Group's pay-out policy
Rexel will propose to shareholders a dividend of
€0.75 per share, representing 64% of the Group's recurring net
income (vs. 53% last year). It will be paid in cash or shares,
subject to approval at the Annual Shareholders' Meeting to be held
in Paris on May 22, 2014.
This is in line with Rexel's policy of paying
out at least 40% of recurring net income, reflecting the Group's
confidence in its structural ability to generate strong cash-flow
throughout the cycle.
OUTLOOK
Depending on the speed and magnitude of
the recovery in Europe and in the US non-residential end-market,
Rexel aims at delivering in 2014:
- Sales in a range of around 1% below to around 2% above
2013 sales, on a constant and same-day basis,
- Adjusted EBITA margin in a range of around 10bps below
to around 20bps above the 2013 margin, consistent with targeted
annual operating efficiency ratio of a change of around 10bps in
adjusted EBITA margin for each percentage point change in
sales,
- Solid free cash-flow, consistent with targeted
conversion rate of at least 75% of EBITDA, before interest and tax,
and of around 40% of EBITDA, after interest and tax.
As detailed during its Investor Day,
held on November 26, 2013, Rexel will remain focused on four
business imperatives:
- Accelerate its strategic high-growth
initiatives,
- Enhance its customer-centricity model in its mainstream
electrical distribution business,
- Boost growth through acquisitions and remain a leading
market consolidator,
- Drive operational excellence as an enabler for
profitable growth,
and confirms its medium-term
ambitions:
- Outperform the market through a combination of organic
growth and targeted acquisitions,
- Grow adjusted EBITA margin to around 6.5% within 3 to 5
years,
- Generate strong free cash-flow before interest and tax
of at least 75% of EBITDA and after interest and tax of around 40%
of EBITDA,
- Maintain a sound and balanced financial structure, with
a net-debt-to-EBITDA ratio not exceeding 3 times.
CALENDAR
April 30,
2014
First-quarter results May 22,
2014
Shareholders' Meeting in Paris July 30,
2014
Second-quarter and Half-year results October 29,
2014
Third-quarter and 9-month results
FINANCIAL INFORMATION
The financial report for the period ended
December 31, 2013 is available on the Group's website
(www.rexel.com), in the "Regulated information" section, and has
been filed with the French Autorité des Marchés Financiers.
A slideshow of the fourth-quarter &
full-year 2013 results is also available on the Group's
website.
Rexel, a global leader in the
professional distribution of products and services for the energy
world, addresses three main markets - industrial, commercial and
residential. The Group supports customers around the globe,
wherever they are, to create value and run their businesses better.
With a network of some 2,300 branches in 38 countries, and c.
30,000 employees, Rexel's sales were €13 billion in 2013. Its main
shareholders are an investor group led by Clayton, Dubilier &
Rice and Eurazeo.
Rexel is listed on the Eurolist market
of Euronext Paris (compartment A, ticker RXL, ISIN code
FR0010451203). It is included in the following indices: SBF 120,
CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600.
Rexel is also part of the following SRI indices: DJSI Europe,
FTSE4Good Europe & Global, STOXX Europe Sustainability, EURO
STOXX
Sustainability, Euronext Vigeo Europe
120 and ESI Excellence Europe. Finally, Rexel is included on the
Ethibel EXCELLENCE Investment Registers in recognition of its
performance in corporate social responsibility (CSR). For more
information, visit Rexel's web site at www.rexel.com
CONTACTS
FINANCIAL ANALYSTS / INVESTORS |
PRESS |
Marc MAILLET |
Pénélope
LINAGE |
+33 1 42 85 76 12 |
+33 1 42 85 76 28 |
marc.maillet@rexel.com |
penelope.linage@rexel.com |
Florence MEILHAC |
Brunswick:
Thomas KAMM |
+33 1 42 85 57 61 |
+33 1 53 96 83 92 |
florence.meilhac@rexel.com |
tkamm@brunswickgroup.com |
GLOSSARY
APPENDICES
Appendix 1: Segment reporting - Constant
and adjusted basis*
* Constant and adjusted = at comparable scope of consolidation
and exchange rates, excluding the non-recurring effect related to
changes in copper-based cables price and before amortization of
purchase price allocation; the non-recurring effect related to
changes in copper-based cables price was, at the EBITA level: - a
loss of €1.3 million in Q4 2012 and a loss of €2.0 million in Q4
2013 ; - a profit of €1.9 million in FY 2012 and a loss of €15.3
million in FY 2013.
GROUP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
|
3,324.1 |
3,287.7 |
-1.1% |
13,415.9 |
13,011.6 |
-3.0% |
|
on a
constant basis and same days |
|
|
-0.9% |
|
|
-2.7% |
Gross profit |
830.3 |
814.5 |
-1.9% |
3,309.8 |
3,204.7 |
-3.2% |
|
as a % of
sales |
24.98% |
24.77% |
-20bps |
24.67% |
24.63% |
-4 bps |
Distribution & adm. expenses (incl.
depreciation) |
(627.5) |
(622.9) |
-0.7% |
(2,550.2) |
(2,502.5) |
-1.9% |
EBITA |
|
202.8 |
191.6 |
-5.5% |
759.6 |
702.2 |
-7.6% |
|
as a % of
sales |
6.10% |
5.83% |
-27bps |
5.66% |
5.40% |
-26bps |
Headcount (end of period) |
30,444 |
29,852 |
-1.9% |
|
|
|
|
|
|
|
|
|
|
|
EUROPE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
|
1,898.1 |
1,853.0 |
-2.4% |
7,437.8 |
7,078.6 |
-4.8% |
|
on a constant basis and
same days |
|
|
-1.4% |
|
|
-4.2% |
o/w |
France |
659.1 |
648.1 |
-1.7% |
2,505.2 |
2,423.7 |
-3.3% |
|
on a constant basis and same days |
|
|
-0.1% |
|
|
-2.1% |
|
United Kingdom |
238.0 |
233.4 |
-1.9% |
1,005.2 |
950.7 |
-5.4% |
|
on a constant basis and same days |
|
|
-1.9% |
|
|
-5.8% |
|
Germany |
217.0 |
201.9 |
-7.0% |
867.6 |
804.0 |
-7.3% |
|
on a constant basis and same days |
|
|
-3.9% |
|
|
-6.0% |
|
Scandinavia |
234.5 |
236.6 |
+0.9% |
923.4 |
888.1 |
-3.8% |
|
on a constant basis and same days |
|
|
+0.9% |
|
|
-3.6% |
Gross |
profit |
516.3 |
500.9 |
-3.0% |
2,006.6 |
1,909.5 |
-4.8% |
|
as a % of sales |
27.20% |
27.03% |
-17bps |
26.98% |
26.98% |
stable |
Distribution & adm. expenses (incl.
depreciation) |
(367.8) |
(363.3) |
-1.2% |
(1,482.9) |
(1,442.4) |
-2.7% |
EBITA |
|
148.6 |
137.7 |
-7.3% |
523.7 |
467.1 |
-10.8% |
|
as a % of sales |
7.83% |
7.43% |
-40bps |
7.04% |
6.60% |
-44bps |
Headcount (end of period) |
17,052 |
16,750 |
-1.8% |
|
|
|
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
|
1,074.3 |
1,082.6 |
+0.8% |
4,417.6 |
4,441.1 |
+0.5% |
|
on a constant basis and same days |
|
|
-0.3% |
|
|
+0.6% |
o/w |
United States |
773.6 |
788.8 |
+2.0% |
3,151.0 |
3,217.4 |
+2.1% |
|
on a constant basis and same days |
|
|
+0.4% |
|
|
+2.1% |
|
Canada |
300.6 |
293.8 |
-2.3% |
1,266.5 |
1,223.7 |
-3.4% |
|
on a constant basis and same days |
|
|
-2.3% |
|
|
-3.4% |
Gross |
profit |
241.9 |
240.5 |
-0.6% |
969.9 |
982.3 |
+1.3% |
as a % of sales |
22.52% |
22.21% |
-31bps |
21.96% |
22.12% |
+16bps |
Distribution & adm. expenses (incl.
depreciation) |
(180.5) |
(186.7) |
+3.4% |
(738.4) |
(748.7) |
+1.4% |
EBITA |
|
61.4 |
53.8 |
-12.3% |
231.5 |
233.5 |
+0.9% |
|
as a % of sales |
5.71% |
4.97% |
-74bps |
5.24% |
5.26% |
+2bps |
Headcount (end of period) |
8,647 |
8,613 |
-0.4% |
|
|
|
|
|
|
|
|
|
|
|
ASIA-PACIFIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
|
285.5 |
282.1 |
-1.2% |
1,265.7 |
1,196.8 |
-5.4% |
|
on a constant basis and
same days |
|
|
-1.5% |
|
|
-5.4% |
o/w |
China |
86.7 |
89.6 |
+3.2% |
350.9 |
369.5 |
+5.3% |
|
on a constant basis and same days |
|
|
+3.4% |
|
|
+4.6% |
|
Australia |
145.4 |
134.0 |
-7.9% |
696.4 |
605.1 |
-13.1% |
|
on a constant basis and same days |
|
|
-8.2% |
|
|
-12.7% |
|
New Zealand |
32.2 |
30.7 |
-4.8% |
130.9 |
124.6 |
-4.8% |
|
on a constant basis and same days |
|
|
-4.8% |
|
|
-4.8% |
Gross |
profit |
56.8 |
57.6 |
+1.4% |
264.9 |
244.8 |
-7.6% |
|
as a % of sales |
19.90% |
20.43% |
+53bps |
20.93% |
20.45% |
-47bps |
Distribution & adm. expenses (incl.
depreciation) |
(47.4) |
(46.5) |
-1.9% |
(207.0) |
(195.9) |
-5.4% |
EBITA |
|
9.4 |
11.2 |
+18.5% |
57.9 |
48.9 |
-15.5% |
|
as a % of sales |
3.30% |
3.95% |
+66bps |
4.57% |
4.09% |
-48bps |
Headcount (end of period) |
2,758 |
2,705 |
-1.9% |
|
|
|
LATIN AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
|
66.2 |
69.8 |
+5.4% |
294.6 |
294.8 |
+0.1% |
|
on a constant basis and same days |
|
|
+3.5% |
|
|
-0.5% |
o/w |
Brazil |
38.5 |
38.7 |
+0.3% |
166.0 |
174.8 |
+5.3% |
|
on a constant basis and same days |
|
|
+0.0% |
|
|
+4.4% |
|
Chile |
22.3 |
25.0 |
+12.2% |
106.2 |
95.6 |
-10.0% |
|
on a constant basis and same days |
|
|
+7.9% |
|
|
-10.0% |
|
Peru |
5.4 |
6.1 |
+13.6% |
22.4 |
24.4 |
+9.0% |
|
on a constant basis and same days |
|
|
+9.5% |
|
|
+8.0% |
Gross |
profit |
14.9 |
15.2 |
+1.9% |
66.6 |
67.9 |
+1.9% |
|
as a % of sales |
22.54% |
21.78% |
-75bps |
22.61% |
23.03% |
+42bps |
Distribution & adm. expenses (incl.
depreciation) |
(14.2) |
(15.7) |
+10.6% |
(60.5) |
(67.0) |
+10.8% |
EBITA |
|
0.7 |
(0.5) |
-179.6% |
6.2 |
0.9 |
-85.2% |
|
as a % of sales |
1.03% |
-0.78% |
-181bps |
2.09% |
0.31% |
-178bps |
Headcount (end of period) |
1,775 |
1,552 |
-12.6% |
|
|
|
Appendix 2: Extract of Financial
Statements
Consolidated Income Statement
|
Reported basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
3,439.8 |
3,287.7 |
-4.4% |
13,449.2 |
13,011.6 |
-3.3% |
Gross profit |
855.7 |
812.4 |
-5.1% |
3,315.0 |
3,188.5 |
-3.8% |
|
as a % of sales |
24.9% |
24.7% |
|
24.6% |
24.5% |
|
Distribution & adm. expenses (excl.
depreciation) |
(630.1) |
(604.3) |
-4.1% |
(2,473.9) |
(2,424.6) |
-2.0% |
EBITDA |
225.6 |
208.1 |
-7.7% |
841.1 |
763.9 |
-9.2% |
|
as a % of sales |
6.6% |
6.3% |
|
6.3% |
5.9% |
|
Depreciation |
(19.4) |
(18.5) |
|
(73.7) |
(77.0) |
|
EBITA |
206.2 |
189.7 |
-8.0% |
767.4 |
686.9 |
-10.5% |
|
as a % of sales |
6.0% |
5.8% |
|
5.7% |
5.3% |
|
Amortization of intangibles
resulting
from purchase price allocation |
(4.0) |
(3.9) |
|
(13.3) |
(19.7) |
|
Operating income bef. other inc. and
exp. |
202.2 |
185.7 |
-8.2% |
754.1 |
667.2 |
-11.5% |
|
as a % of sales |
5.9% |
5.6% |
|
5.6% |
5.1% |
|
Other income and expenses |
(37.0) |
(51.3) |
|
(106.7) |
(146.2) |
|
Operating income |
165.2 |
134.4 |
-18.6% |
647.4 |
521.0 |
-19.5% |
Financial expenses (net) |
(51.1) |
(50.0) |
|
(200.1) |
(213.5) |
|
Share of profit (loss) in associates |
1.6 |
0.0 |
|
3.1 |
0.4 |
|
Net income (loss) before income
tax |
115.6 |
84.3 |
-27.1% |
450.3 |
307.9 |
-31.6% |
Income tax |
(33.4) |
(24.4) |
|
(131.7) |
(96.9) |
|
Net income (loss) |
82.2 |
59.9 |
-27.1% |
318.6 |
211.0 |
-33.8% |
Net income (loss) attr. to non-controlling
interests |
(0.2) |
0.0 |
|
0.5 |
0.4 |
|
Net income (loss) attr. to equity holders of the
parent |
82.4 |
59.9 |
-27.3% |
318.1 |
210.6 |
-33.8% |
Bridge Between Operating Income Before Other Income And
Other Expenses And Adjusted EBITA
in €m |
Q4 2012 |
Q4 2013 |
FY 2012 |
FY 2013 |
Operating income before other income and other
expenses |
202.2 |
185.7 |
754.1 |
667.2 |
Change in scope effects |
2.5 |
|
13.1 |
|
Foreign exchange effects |
-7.1 |
|
-19.0 |
|
Non-recurring effect related to copper |
1.3 |
2 |
-1.9 |
15.3 |
Amortization of intangibles resulting from PPA |
4 |
3.9 |
13.3 |
19.7 |
Adjusted EBITA on a constant basis |
202.8 |
191.6 |
759.6 |
702.2 |
Recurring Net Income
In millions of euros |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Reported net income |
82.2 |
59.9 |
-27.1% |
318.6 |
211.0 |
-33.8% |
Non-recurring copper effect |
1.3 |
2.0 |
|
-1.8 |
15.3 |
|
Other expense & income |
36.9 |
51.3 |
|
106.7 |
146.2 |
|
Financial expense |
0.0 |
0.0 |
|
-7.4 |
23.5 |
|
Tax expense |
-20.4 |
-42.7 |
|
-29.4 |
-67.8 |
|
Recurring net income |
100.1 |
70.6 |
-29.5% |
386.7 |
328.1 |
-15.1% |
Sales And Profitability By Segment
|
Reported basis (€m) |
Q4 2012 |
Q4 2013 |
Change |
FY 2012 |
FY 2013 |
Change |
Sales |
3,439.8 |
3,287.7 |
-4.4% |
13,449.2 |
13,011.6 |
-3.3% |
|
Europe |
1,923.0 |
1,853.0 |
-3.6% |
7,448.6 |
7,078.6 |
-5.0% |
|
North America |
1,124.2 |
1,082.6 |
-3.7% |
4,348.6 |
4,441.1 |
+2.1% |
|
Asia-Pacific |
315.9 |
282.1 |
-10.7% |
1,341.9 |
1,196.8 |
-10.8% |
|
Latin
America |
76.7 |
69.8 |
-9.1% |
310.0 |
294.8 |
-4.9% |
Gross profit |
855.7 |
812.4 |
-5.1% |
3,315.0 |
3,188.5 |
-3.8% |
|
Europe |
521.0 |
499.1 |
-4.2% |
2,015.2 |
1,897.4 |
-5.8% |
|
North America |
253.5 |
240.3 |
-5.2% |
945.7 |
978.5 |
+3.5% |
|
Asia-Pacific |
63.6 |
57.6 |
-9.4% |
281.2 |
244.8 |
-13.0% |
|
Latin
America |
17.2 |
15.2 |
-11.7% |
70.9 |
67.5 |
-4.8% |
EBITA |
206.2 |
189.7 |
-8.0% |
767.4 |
686.9 |
-10.5% |
|
Europe |
148.2 |
135.9 |
-8.3% |
535.4 |
455.5 |
-14.9% |
|
North America |
64.1 |
53.7 |
-16.3% |
225.6 |
230.2 |
+2.0% |
|
Asia-Pacific |
10.5 |
11.2 |
+5.9% |
60.0 |
48.9 |
-18.6% |
|
Latin
America |
0.7 |
(0.6) |
-180.5% |
6.2 |
0.5 |
-91.1% |
Impact On Sales From Acquisitions
Acquisitions |
Country |
Conso. |
Q1 2013 |
Q2 2013 |
H1 2013 |
Q3 2013 |
Q4 2013 |
FY 2013 |
|
|
as from |
|
|
|
|
|
|
Europe |
France, UK, Spain, Belgium |
misc. |
49.9 |
9.6 |
59.5 |
0.0 |
0.0 |
59.5 |
North America |
USA |
misc. |
97.3 |
105.7 |
203.0 |
27.2 |
20.4 |
250.6 |
Asia-Pacific |
Singapore |
01/01/13 |
2.8 |
2.8 |
5.7 |
2.7 |
2.7 |
11.1 |
Latin America |
Brazil, Peru |
misc. |
10.3 |
1.9 |
12.2 |
1.5 |
-0.3 |
13.4 |
Total acquisitions |
|
|
160.3 |
120.1 |
280.4 |
31.4 |
22.8 |
334.6 |
Consolidated Balance Sheet
Assets (€m) |
December 31, 2012 |
December 31, 2013 |
Goodwill |
4,369.2 |
4,111.2 |
Intangible assets |
1,035.8 |
1,038.3 |
Property, plant & equipment |
282.7 |
278.1 |
Long-term investments(1) |
79.5 |
51.7 |
Investments in associates |
10.8 |
- |
Deferred tax assets |
171.9 |
162.9 |
Total non-current assets |
5,949.9 |
5,642.2 |
Inventories |
1,426.7 |
1,389.5 |
Trade receivables |
2,123.9 |
2,062.8 |
Other receivables |
502.5 |
486.1 |
Assets classified as held for sale |
21.2 |
3.4 |
Cash and cash equivalents |
291.9 |
957.8 |
Total current assets |
4,366.2 |
4,899.7 |
Total assets |
10,316.1 |
10,541.9 |
|
|
|
Liabilities (€m) |
December 31, 2012 |
December 31, 2013 |
Total equity |
4,117.6 |
4,224.7 |
Long-term debt |
2,303.2 |
2,908.2 |
Deferred tax liabilities |
152.3 |
172.1 |
Other non-current liabilities |
474.6 |
351.4 |
Total non-current liabilities |
2,930.1 |
3,431.7 |
Interest bearing debt & accrued interests |
627.6 |
216.8 |
Trade payables |
1,937.2 |
2,009.9 |
Other payables |
703.7 |
658.8 |
Liabilities classified as held for sale |
- |
- |
Total current liabilities |
3,268.5 |
2,885.5 |
Total liabilities |
6,198.6 |
6,317.2 |
Total equity & liabilities |
10,316.1 |
10,541.9 |
1 Includes Debt hedge derivatives for €(39.8)m at December 31,
2012 and for €25.1m at December 31, 2013
Change in Net Debt
€m |
Q4 2012 |
Q4 2013 |
FY 2012 |
FY 2013 |
EBITDA |
225.6 |
208.1 |
841.1 |
763.9 |
Other operating revenues & costs(1) |
(27.9) |
(29.5) |
(92.6) |
(90.0) |
Operating cash flow |
197.7 |
178.7 |
748.5 |
674.0 |
Change in working capital(2) |
230.8 |
257.8 |
(37.2) |
(1.1) |
Net capital expenditure, of which: |
(29.6) |
(24.0) |
(83.8) |
(72.1) |
Gross capital expenditure |
(36.8) |
(34.5) |
(90.6) |
(102.3) |
Disposal of fixed assets & other |
7.2 |
10.5 |
6.8 |
30.2 |
Free cash flow before interest and tax |
398.9 |
412.4 |
627.5 |
600.6 |
Net interest paid / received(3) |
(43.6) |
(40.3) |
(169.7) |
(169.3) |
Income tax paid |
(48.5) |
(13.4) |
(143.4) |
(94.2) |
Free cash flow after interest and tax |
306.8 |
358.7 |
314.4 |
337.2 |
Net financial investment |
(125.9) |
(1.0) |
(617.5) |
(5.4) |
Dividends paid |
0.0 |
0.0 |
(143.0) |
(53.1) |
Net change in equity |
0.0 |
0.0 |
0.0 |
0.0 |
Other |
(35.3) |
54.1 |
(83.4) |
25.3 |
Currency exchange variation |
28.4 |
40.0 |
8.5 |
103.2 |
Decrease (increase) in net debt |
174.0 |
451.9 |
(521.0) |
407.2 |
Net debt at the beginning of the period |
2,773.2 |
2,643.9 |
2,078.2 |
2,599.2 |
Net debt at the end of the period |
2,599.2 |
2,192.0 |
2,599.2 |
2,192.0 |
1 Includes restructuring outflows:
- of €14.0m in Q4 2012 and €25.8m in Q4 2013
- and of €46.9m in FY2012 and €71.5m in FY 2013
2 Working Capital adjustment to reflect suppliers payments
scheduled on Dec. 31, 2013 and executed only on Jan.2nd, 2014 for
€51.9m 3 Excluding settlement of fair value hedge derivatives
Appendix 3: Working Capital
Analysis
Constant basis |
December 31, 2012 |
December 31, 2013 |
Net inventories |
|
|
as a % of sales 12 rolling months |
10.5% |
11.0% |
as a number of days |
48.2 |
49.4 |
Net trade receivables |
|
|
as a % of sales 12 rolling months |
16.0% |
16.7% |
as a number of days |
54.6 |
55.1 |
Net trade payables |
|
|
as a % of sales 12 rolling months |
14.1% |
15.2% |
as a number of days |
58.3 |
60.8 |
Trade working capital |
|
|
as a % of sales 12 rolling months |
12.4% |
12.4% |
Total working capital |
|
|
as a % of sales 12 rolling months |
11.2% |
11.4% |
Appendix 4: Headcount and branches by
geography
FTEs at end of period |
31/12/2012 |
31/12/2013 |
Year-on-Year Change |
comparable |
Europe |
17,052 |
16,750 |
-1.8% |
USA |
6,241 |
6,234 |
-0.1% |
Canada |
2,406 |
2,379 |
-1.1% |
North America |
8,647 |
8,613 |
-0.4% |
Asia-Pacific |
2,758 |
2,705 |
-1.9% |
Latin America |
1,775 |
1,552 |
-12.6% |
Other |
212 |
232 |
9.4% |
Group |
30,444 |
29,852 |
-1.9% |
|
|
|
|
Branches |
31/12/2012 |
31/12/2013 |
Year-on-Year Change |
comparable |
Europe |
1,359 |
1,306 |
-3.9% |
USA |
401 |
401 |
0.0% |
Canada |
218 |
216 |
-0.9% |
North America |
619 |
617 |
-0.3% |
Asia-Pacific |
262 |
259 |
-1.1% |
Latin America |
96 |
90 |
-6.3% |
Group |
2,336 |
2,272 |
-2.7% |
Appendix 5: Calendar, scope and change
effects on sales
To be comparable to 2014 sales, 2013 sales must
take into account the following impacts:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
Calendar effect |
0.0% |
-0.5% |
-0.3% |
+1.1% |
0.0% |
Scope effect (1) |
c. €14m |
c. €11m |
c. €12m |
c. €11m |
c. 48m |
Change effect (2) |
-2.6% |
-2.6% |
-1.0% |
+0.2% |
-1.5% |
(1) Based on acquisitions made in 2013 (mainly Lenn in Singapore
and Quality Trading in Thailand) (2) Based on following main
assumptions:
- 1 USD = €1.35
- 1 AUD = €1.50
- 1 CAD = €1.40
Appendix 6: Changes due to the
enforcement of IFRIC 21 as from January 1, 2014
IFRIC Interpretation 21 "Levies" clarifies that
the obligating event that gives rise to a liability to pay a levy
is the activity described in the relevant legislation that triggers
the payment of the levy. IFRIC Interpretation 21 applies for
accounting period starting from January, 1 2014 with retrospective
application as of January, 1 2013. In 2013, the Group reviewed the
impact of applying IFRIC Interpretation 21 and estimated the
adjustment to be an increase in shareholders' equity of € 2.6
million after tax (€3.9 million before tax) as of January 1, 2013
as a result of a timing difference in the liability recognition. In
addition, IFRIC Interpretation 21 prohibits the progressive
recognition of a liability for tax levies over the fiscal year and
rather requires the one-time recognition of the liability when the
obligating event for the payment of the levy is met. As a result of
this guidance, the Group expects that 2014 interim financial
statements will be impacted by timing differences in the
recognition of tax levies due to the adoption of IFRIC
Interpretation 21.
€m |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2013 EBITA as reported on Feb. 13, 2014 |
148.8 |
172.4 |
175.9 |
189.7 |
686.9 |
IFRIC 21 restatement |
c. (6) |
c. 2 |
c. 2 |
c. 2 |
c. 0 |
2013 EBITA as proforma for 2014 accounts |
c. 143 |
c. 174 |
c. 178 |
c. 192 |
c. 687 |
Appendix 7: PV, Wind and Mining sales in
2013
YoY change |
H1 2013 |
H2 2013 |
FY 2013 |
Photovoltaic sales |
-8.2% |
+16.8% |
+3.4% |
Wind sales |
-46.4% |
+7.4% |
-22.0% |
Mining sales |
-21.0% |
+6.2% |
-8.9% |
DISCLAIMER
The Group is exposed to fluctuations in copper
prices in connection with its distribution of cable products.
Cables accounted for approximately 15% of the Group's sales, and
copper accounts for approximately 60% of the composition of cables.
This exposure is indirect since cable prices also reflect copper
suppliers' commercial policies and the competitive environment in
the Group's markets. Changes in copper prices have an estimated
so-called "recurring" effect and an estimated so called
"non-recurring" effect on the Group's performance, assessed as part
of the monthly internal reporting process of the Rexel Group: - the
recurring effect related to the change in copper-based cable prices
corresponds to the change in value of the copper part included in
the sales price of cables from one period to another. This effect
mainly relates to the Group's sales; - the non-recurring effect
related to the change in copper-based cables prices corresponds to
the effect of copper price variations on the sales price of cables
between the time they are purchased and the time they are sold,
until all such inventory has been sold (direct effect on gross
profit). Practically, the non-recurring effect on gross profit is
determined by comparing the historical purchase price for
copper-based cable and the supplier price effective at the date of
the sale of the cables by the Rexel Group. Additionally, the
non-recurring effect on EBITA corresponds to the non-recurring
effect on gross profit, which may be offset, when appropriate, by
the non-recurring portion of changes in the distribution and
administrative expenses.
The impact of these two effects is assessed for
as much of the Group's total cable sales as possible, over each
period. Group procedures require that entities that do not have the
information systems capable of such exhaustive calculations to
estimate these effects based on a sample representing at least 70%
of the sales in the period. The results are then extrapolated to
all cables sold during the period for that entity. Considering the
sales covered, the Rexel Group considers such estimates of the
impact of the two effects to be reasonable.
This document may contain statements of future
expectations and other forward-looking statements. By their nature,
they are subject to numerous risks and uncertainties, including
those described in the Document de Référence registered with the
French Autorité des Marchés Financiers (AMF) on March 13, 2013
under number D.13-0130. 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. The forward-looking
statements contained in this communication speak only as of the
date of this communication and Rexel does not undertake, unless
required by law or regulation, to update any of the forward-looking
statements after this date to conform such statements to actual
results, to reflect the occurrence of anticipated results or
otherwise.
The market and industry data and forecasts
included in this document were obtained from internal surveys,
estimates, experts and studies, where appropriate, as well as
external market research, publicly available information and
industry publications. Rexel, its affiliates, directors, officers,
advisors and employees have not independently verified the accuracy
of any such market and industry data and forecasts and make no
representations or warranties in relation thereto. Such data and
forecasts are included herein for information purposes only.
This document includes only summary information
and must be read in conjunction with Rexel's Document de Référence
registered with the AMF March 13, 2013 under number D.13-0130, as
well as the consolidated financial statements and activity report
for the 2013 fiscal year, which may be obtained from Rexel's
website (www.rexel.com).
FULL-YEAR 2013 RESULTS
http://hugin.info/143564/R/1761511/596437.pdf
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