Rexel : Press Release – First-Quarter 2024 Sales

FIRST-QUARTER 2024 SALES

Q1 same-day sales down (4.6)%, in line with expectations, mostly from high comparable base

Resilient core ED business; positive contribution from acquisitions

FY 24 guidance confirmed

• Q1 24 sales stood at €4,707.4m, down (4.6)% on a same-day basis, in line with expectations, on high electrification comparable base, notably in solar activity in Europe
• • Restated for electrification (22% of sales, down c.(12)%) and cable, core ED activity remained resilient, with a limited decline of (0.8)%
  • Stable non-cable pricing and price increase in our core products. Restated for electrification, non- cable pricing rose by +0.7%
  • Cable pricing at (1.5)% from high copper prices in Q1 23 and continued price normalization in North America beginning at end-Q2 23
• Resilience of our non-residential market and industrial automation business, especially in North America
• Further market share gains in our key countries (including France, Germany and Switzerland) demonstrating the solidity of our model
• Improvement in backlogs in North America, providing visibility
• Digital penetration rate at 31% of sales in Q1 24, up +273bps
• Continued focus on margin resilience, leveraging the key initiatives of the Power Up 2025 plan
• Active capital allocation in the quarter
• • Solid M&A pipeline
  • • End-April,Rexel reached an agreement to acquire Itesa, reinforcing its position in the security & communication business in France
  • Share buyback for €23m in the quarter, or €223m on a cumulative basis since the launch of the plan
• 2024 outlook confirmed: Stable to slightly positive same-day sales growth with high comparable base in H1 2024, adjusted EBITA margin between 6.3% and 6.6% and conversion of free cash flow before interest and tax above 60%

Guillaume TEXIER, Chief Executive Officer, said:

"Rexel delivered a solid performance in the first quarter, amidst an anticipated more challenging environment. Our core electrical distribution business, excluding electrification categories and cables, was resilient, supported by healthy demand in non-residential markets and industrial automation as well as positive pricing on non-cable products. Electrification activities were impacted as expected by a high 2023 comparable base but continued to grow by double digits over two years. The start of the year is in line with our expectations and demonstrates the solidity and resilience of our model, allowing us to confirm our 2024 guidance. We are also announcing an acquisition in France focused on the datacom/security space. Rexel continues to focus on value-enhancing acquisitions to strengthen its growth profile and increase its exposure to secular trends."

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Sales review for the period ended March 31,2024

• Unless otherwise stated, all comments are on a constant and adjusted basis and, for sales, at same number of working days.

SALES

In Q1, sales were down (4.5)% year-on-year on a reported basis and (4.6)% on a constant and same-day basis.

Key figures (€m)	Q1 2024	YoY change
Sales on a reported basis	4,707.4	(4.5)%
On a constant and actual-day basis		(6.0)%
On a constant and same-day basis		(4.6)%

In the first quarter 2024, Rexel posted sales of €4,707.4m,down (4.5)% on a reported basis, supported by the scope effect. They include:

• Constant and same-day sales evolution of (4.6)%, including a (3.1)% contribution from volume, a stable selling price on non-cable products and a negative price of (1.5)% on cable products
• A calendar effect of (1.5)%, which will reverse in the course of the year
• A positive net scope effect of +2.2%, mainly resulting from the Wasco acquisition in the Netherlands, completed in September 2023
• A negative (0.5)% currency effect, mainly due to the depreciation of the US dollar against the euro

	% mix 2024	SD sales growth	ow price	ow volume
Core ED	63 %	(0.8)%	+0.7%	(1.5)%
Electrification	22 %	(11.7)%	(1.9)%	(9.8)%
Cable	15 %	(8.2)%	(9.4)%	+1.2%
Total	100 %	(4.6)%	(1.5)%	(3.1)%

On a constant and same-day basis, sales were down (4.6)% (or (6.0)% on a constant and actual-day basis). More specifically:

• The four product categories related to electrification (Solar, Electric Vehicle charging infrastructure, HVAC and Industrial Automation), represented 22%1 of sales and decreased by (11.7)% in Q1 (group contribution: -280bps) as a result of a challenging comparable base, a negative price effect in solar panels and lower demand. In particular, the lack of visibility on government regulations and low electricity prices have temporarily reduced the immediate payback from installing photovoltaic solutions. Overall, the longer-term growth drivers remain intact, notably driven by the net zero agendas and government policies.
• The pricing environment for non-cable products (stable contribution in the quarter) was favorable for the majority of our offer and more than offset the temporary negative carryover effect on limited categories of non-cable products (solar panels and some Industrial Automation products in China). Restated for electrification, non-cable prices were up +0.7% in the quarter.

1 Including positive scope effect and added product categories (notably in HVAC segment)

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• The cable price contribution stood at (1.5)% in Q1 2024, due to a high comparable base (copper prices hit a year-high in Q1 23) and price normalization largely in North America, which started end of Q2 2023.
• We posted further growth in digitalization in all three geographies, with digital sales now representing 31% of sales in Q1 2024, up +273bps compared to Q1 2023. Europe reached 42% of digital sales (up +381bps), North America is now at 21% (up +200bps) and Asia-Pacific is at 8% of sales, up +244bps.

Europe (52% of Group sales): (6.9)% in Q1 on a constant and same-day basis

In the first-quarter,sales in Europe decreased by (4.0)% on a reported basis, including:

• Constant and same-day sales evolution of (6.9)%. This includes a negative volume contribution of (5.3)%, reflecting the high comparable base from electrification, notably solar. Selling price contributed negatively for (1.6)% ((0.6)% on non-cable products and (1.0)% on cable products).
• A negative calendar effect of (1.5)%
• A positive net scope effect of +4.3%, resulting from the recent acquisition of Wasco in the Netherlands, offsetting the disposal of Rexel's business in Norway
• A positive currency effect of +0.5%, mainly due to the appreciation of the Swiss Franc and British pound against the euro

	Key figures (€m)		% of the		Q1 2024	YoY change
		region's sales
	Europe				2,425.6	(6.9)%
	ow France		39%		940.8	(1.9)%
	Benelux		17%		409.5	(10.6)%
	Germany		10%		248.1	(10.1)%
	UK		9%		210.3	(6.2)%
	Nordics		8%		193.5	(19.9)%
	Switzerland		7%		181.1	+8.1 %

More specifically:

• Restated for electrification and cable, core ED business was down a limited (3.2)%, contributing for -200bps, with positive pricing.
• Electrification categories were down (17.6)% (contributing for -400bps), notably explained by solar activity
• Cable pricing contributed for -100bps in the quarter

Looking at trends by country:

• Sales in France decreased slightly by (1.9)%, including several effects:
• • Further market share gains driven by numerous initiatives aiming at providing valuable and differentiated services to our customers
  • Demand from small contractors, especially in heat pumps, temporarily impacted by lack of visibility on regulation.

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• Benelux, Germany, the Nordics and Austria faced a high base effect on electrification, notably solar.
• The integration of Wasco is in line with plan. The business was resilient in the quarter, driven by a favorable regulatory environment
• In the UK, sales were down (6.2)%, or down a limited (1.6)% restated for the contribution of a large public project with the Department of Education (DofE). Our new automated distribution center, which opened in mid-2023, allowed us to gain market share in the London area.
• Sales in Switzerland stood at +8.1%, further gaining market share with positive momentum in all markets.

North America (42% of Group sales): (1.1)% in Q1 on a constant and same-day basis

In the first-quarter,sales in North America were down (3.7)% on a reported basis, including:

• Constant and same-day sales growth of (1.1)%, including a stable volume contribution of +0.1%, positive pricing contribution of +1.1% on non-cable products, and (2.3)% on cable products.
• A negative calendar effect of (1.5)%
• A negative currency effect of (1.1)%, mainly due to the depreciation of the US and Canadian dollars against the euro

	Key figures (€m)		% of the		Q1 2024	YoY change
		region's sales
	North America				1,995.9	(1.1)%
	ow United States		82 %	1,634.2	(1.5)%
	Canada		18 %	361.7	+1.0%

In North America, the overall good performance was driven by our capacity to capture reshoring trends and to enhance backlog execution.

• Core ED business, excluding electrification and cables, was up +2.4%, contributing for +150bps
• Electrification categories were down a limited (3.2)% (contributing for -70bps), with positive trends in EV charging stations notably driven by a contract with US Postal, and resilient industrial automation activity, offsetting lower demand in solar, mostly in California
• Non-cableprices excluding electrification were positive (contributing for +40bps) and cable prices were negative (contributing for -230bps).

Specifically, in our 2 countries :

• In the US, slight decline in same-day sales evolution at (1.5)% in Q1 2024
• • By market: Resilience in non-residential and industrial automation. Residential (7% of sales) remains challenging
  • By region: Positive momentum in Southeast region (incl. Mayer) and in Florida
  • By business: Project activity driven by strong backlog execution
  • US backlog is up 4% vs Q4 2023, notably driven by datacenter, retail, water/wastewater and entertainment. It is equivalent to 2.5 months of sales. It remains at a high level, combining good execution in the quarter and strong order intake.

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• In Canada, sales were up +1.0% on a same-day basis, notably thanks to project activity in the non- residential segment. Utilities and mining markets contributed positively to the quarter while industrial automation was resilient in the quarter.
• • Canada backlog is stable vs Q4 2023 and equivalent to 3.6 months of sales.

Asia-Pacific (6% of Group sales): (7.7)% in Q1 on a constant and same-day basis

In the first-quarter,sales in Asia-Pacific were down (13.2)% on a reported basis, including:

• Constant and same-day sales evolution of (7.7)%, including a negative volume contribution of (5.5)%, and a negative price effect of (2.2)% ((2.1)% on non-cable products and a broadly stable contribution of (0.2)% on cable products)
• A negative calendar effect of (0.8)%
• A negative currency effect of (5.1)%, mainly due to the depreciation of the Australian dollar and the Chinese Renminbi against the euro.

	Key figures (€m)		% of the		Q1 2024	YoY change
		region's sales
	Asia-Pacific				285.9	(7.7)%
	ow Australia		48 %	136.2	+1.3%
	China		36 %	103.5	(19.9)%

• In the Pacific, sales decreased by (1.9)% on a constant and same-day basis:
• • In Australia, sales were up +1.3%, driven by residential and small-andmid-size electricians, notably. Backlog remain solid, leveraging improved customer services. Electrification contributed positively.
  • In New Zealand, sales dropped by (17.6)% in Q1 24 in a recessionary environment for the past four quarters.
• In Asia, sales declined by (14.1)% on a constant and same-day basis:
• • In China, same-day sales declined (19.9)%, reflecting weak market demand coupled with a temporary oversupply situation in industrial automation activity since mid-2023, driving negative prices and volumes. In addition, the quarter faced a challenging base effect as Q1 2023 benefited from the re-opening of the country post-Covid lockdown in Q4 22.
  • In India, sales were up 25.0% on strong industrial demand.

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Rexel enters into an agreement to buy Itesa, a specialist in security solutions in France

Rexel announces it has reached an agreement to acquire Itesa, a leading B to B distributor of security solutions in France.

Itesa is well positioned with a network of 15 branches in France and generated turnover of EUR 78 million in 2023 through a strong presence in the alarm and video segments, accounting for close to 75% of its sales. Headquartered in Marseille and founded in 1978, Itesa is a family-owned business and has 158 employees.

The transaction is projected to be accretive to Rexel's earnings per share in year 1 and value-creating in year 2, fully in line with the Group's commitment.

The transaction remains subject to the French competition authority and is expected to close in H2.

Outlook

We confirm our full-year objectives. We anticipate for 2024, at comparable scope of consolidation and exchange rates:

• Stable to slightly positive same-day sales growth, with a high comparable base in H1
• Adjusted EBITA1 margin of between 6.3% and 6.6%
• Free cash flow conversion2 above 60%

1. Excluding (i) amortization of PPA and (ii) the non-recurring effect related to changes in copper-based cable prices.
2. FCF Before interest and tax/EBITDAaL

NB: The estimated impacts per quarter of (i) calendar effects by geography, (ii) changes in the consolidation scope and (iii) currency fluctuations (based on assumptions of average rates over the rest of the year for the Group's main currencies) are detailed in appendix 2

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CALENDAR

May 15, 2024	Detachment date of the dividend
May 17, 2024	Dividend payment
June 7, 2024	Capital Markets Day in Paris
July 30, 2024	H1 2024 results
October 30, 2024	Q3 2024 sales
FINANCIAL INFORMATION

A slideshow of the first-quarter 2024 sales is available on the Group's website.

ABOUT REXEL GROUP

Rexel, worldwide expert in the multichannel professional distribution of products and services for the energy world, addresses three main markets: residential, commercial, and industrial. The Group supports its residential, commercial, and industrial customers by providing a tailored and scalable range of products and services in energy management for construction, renovation, production, and maintenance. Rexel operates through a network of more than 1,950 branches in 19 countries, with more than 27,000 employees. The Group's sales were €19.2 billion in 2023.

Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker RXL, ISIN code FR0010451203). It is included in the following indices: MSCI World, CAC Next 20, SBF 120, CAC Large 60, CAC 40 ESG, CAC SBT 1.5 NR, CAC AllTrade, CAC AllShares, FTSE EuroMid, and STOXX600. Rexel is also part of the following SRI indices: FTSE4Good, Dow Jones Sustainability Index Europe, Euronext Vigeo Europe 120 and Eurozone 120, STOXX® Global ESG Environmental Leaders, and S&P Global Sustainability Yearbook 2022, in recognition of its performance in terms of Corporate Social Responsibility (CSR).

For more information, visit www.rexel.com/en.

CONTACTS

FINANCIAL ANALYSTS / INVESTORS
Ludovic DEBAILLEUX	[phone]	[e-mail]
PRESS
Brunswick: Thomas KAMM	[phone]	[e-mail]

GLOSSARY

REPORTED EBITA (Earnings Before Interest, Taxes and Amortization) is defined as operating income before amortization of intangible assets recognized upon purchase price allocation and before other income and other expenses.

ADJUSTED EBITA is defined as Reported EBITA excluding the estimated non-recurring net impact from changes in copper-based cable prices.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income before depreciation and amortization and before other income and other expenses.

EBITDAaL is defined as EBITDA after deduction of lease payment following the adoption of IFRS16.

RECURRING NET INCOME is defined as net income restated for non-recurring copper effect, other expenses and income, non-recurring financial expenses, net of tax effect associated with the above items.

FREE CASH FLOW is defined as cash from operating activities minus net capital expenditure.

NET DEBT is defined as financial debt less cash and cash equivalents. Net debt includes debt hedge derivatives.

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APPENDIX

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 cable prices and before amortization of purchase price allocation.

GROUP
Constant and adjusted basis (€m)	Q1 2023	Q1 2024	Change
Sales	5,010.1	4,707.4	(6.0)%
on a constant basis and same days			(4.6)%
EUROPE
Constant and adjusted basis (€m)	Q1 2023	Q1 2024	Change
Sales	2,648.3	2,425.6	(8.4)%
on a constant basis and same days			(6.9)%
France	973.6	940.8	(3.4)%
on a constant basis and same days			(1.9)%
United Kingdom	227.7	210.3	(7.7)%
on a constant basis and same days			(6.2)%
Germany	282.4	248.1	(12.2)%
on a constant basis and same days			(10.1)%
Nordics	245.4	193.5	(21.2)%
on a constant basis and same days			(19.9)%
NORTH AMERICA
Constant and adjusted basis (€m)	Q1 2023	Q1 2024	Change
Sales	2,049.3	1,995.9	(2.6)%
on a constant basis and same days			(1.1)%
United States	1,685.5	1,634.2	(3.0)%
on a constant basis and same days			(1.5)%
Canada	363.7	361.7	(0.6)%
on a constant basis and same days			+1.0%
ASIA-PACIFIC
Constant and adjusted basis (€m)	Q1 2023	Q1 2024	Change
Sales	312.6	285.9	(8.5)%
on a constant basis and same days			(7.7)%
China	129.2	103.5	(19.9)%
on a constant basis and same days			(19.9)%
Australia	136.6	136.2	(0.3)%
on a constant basis and same days			+1.3%
New Zealand	27.5	22.3	(19.0)%
on a constant basis and same days			(17.6)%
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Appendix 2: Calendar, scope and currency effects on sales

Based on the assumption of the following average exchange rates:
€ 1.00	=	USD 1.06
€ 1.00	=	CAD 1.47
€ 1.00	=	AUD	1.66
€ 1.00	=	GBP	0.85

and based on acquisitions/divestments to date, 2023 sales should take into account the following estimated impacts to be comparable to 2024:

		Q1	Q2e	Q3e	Q4e	FYe
Scope effect at Group level	108.7	137.3	74.1	-	320.1
as % of 2024 sales	+2.2%	+2.8%	+1.6%	-%	+1.7%
Currency effect at Group level	(26.5)	30.4	44.0	11.3	59.2
as % of 2024 sales	(0.5)%	+0.6%	+0.9%	+0.2%	+0.3%
Calendar effect at Group level	(1.5)%	+0.6%	+1.4%	+1.5%	+0.5%
Europe		(1.5)%	+0.9%	+2.6%	+0.4%	+0.5%
USA	(1.5) %	-%	-%	+3.6%	+0.4%
Canada	(1.6) %	+1.6%	+1.6%	+1.7%	+0.8%
North America		(1.5)%	+0.3%	+0.3%	+3.2%	+0.5%
Asia		- %	-%	-%	+0.5%	+0.1%
Pacific	(1.5) %	+1.5%	+1.7%	+1.7%	+0.8%
Asia-Pacific		(0.8)%	+0.8%	+1.0%	+1.2%	+0.5%

Appendix 3: Analysis of change in revenues (€m)

Q1		Europe	North America	Asia-Pacific		Group
Reported sales 2023	2,526.4	2,072.2	329.3		4,927.9
+/- Net currency effect	+0.5%	(1.1)%	(5.1)%	(0.5)%
+/- Net scope effect	+4.3%	- %	- %	+2.2%
=Comparable sales 2023	2,648.3	2,049.3	312.6		5,010.1
+/- Actual-day organic growth, of which:	(8.4)%	(2.6)%	(8.5)%	(6.0)%
Constant-same day excl. cable price effect	(5.9)%	+1.2%	(7.5)%	(3.1)%
Cable price effect	(1.0)%	(2.3)%	(0.2)%	(1.5)%
			(1.1)%	(7.7)%
Constant-same day incl. Cable price effect		(6.9)%	(4.6)%
Calendar effect	(1.5)%	(1.5)%	(0.8)%	(1.5)%
=Reported sales 2024		2,425.6	1,995.9	285.9		4,707.4
YoY change	(4.0)%	(3.7)%	(13.2)%	(4.5)%

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Appendix 4: Historical copper price evolution

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