Rexel Sa · EURONEXT:RXL
Rexel Sa — Rexel Sa Ord — Q2 2024 Earnings Presentation
20 slides from Rexel Sa's earnings presentation, Jul 30, 2024
Slide 1: Second-quarter sales & H1 2024 results
Second-quarter sales & H1 2024 results Paris, July 30, 2024 First-half 2024 financial report was authorized for issue by the Board of Directors held on July 29, 2024
Slide 2: Key highlights
Key highlights
Slide 3: H1 2024: A resilient first half, leveraging our transformation
H1 2024: A resilient first half, leveraging our transformation €9.6bn -3.5% 6.0% Same-day Reported sales sales growth Adjusted Ebita margin (%) -4.5% in Q1 & +1.8% in Q2 -4.6% in Q1 & -2.4% in Q2 €335m 1.9x FCF before Interest and tax Indebtedness ratio1 FCF conversion at 53% 1 Including Talley acqu
Slide 4: Solid activity in North America offsetting less active European markets
Solid activity in North America offsetting less active European markets • North America • Resilient and slightly positive volumes in Q2 as in Q1 • Healthy backlog, progressing in Q2 vs. Q1 and remaining high (3 months) • Solid activity in select verticals (infrastructure, datacenters) • Europe • Cor
Slide 5: Sequential improvement in Q2 vs. Q1
Sequential improvement in Q2 vs. Q1 Q1 2024 Q2 2024 % mix SD sales o/w o/w SD sales o/w o/w (in contrib.) 2024 evolution Price Volume evolution Price Volume Core ED1 78% -1.8% -1.0% -0.7% -0.4% -0.6% +0.2% Electrification 22% -2.8% -0.5% -2.4% -2.0% -0.9% -1.1% Total 100% -4.6% -1.5% -3.1% -2.4% -1.
Slide 6: Self-help action plans leading to strong profitability and cash performance
Self-help action plans leading to strong profitability and cash performance • Action plans activated in most countries • Gross margin optimization: price, mix, purchasing • Productivity: Headcount reduction broadly in line with volume decrease in H1 • Internal actions on opex above decrease in volum
Slide 7: Q2 & H1 2024 Group financial review
Q2 & H1 2024 Group financial review
Slide 8: Q2 reported sales up +1.8%, supported by significant M&A contribution
Q2 reported sales up +1.8%, supported by significant M&A contribution +3.4% €5,015m +0.5% €4,922m +0.3% €4,835m -2.4% • Q2 24 reported sales up +1.8%: • Positive contribution from Wasco and Talley acquisitions more than offset organic decline Actual-day evolution -1.9% Q2 2023 Forex Acquisitions Q2
Slide 9: Resilience in North America & recovery in APAC in Q2
Resilience in North America & recovery in APAC in Q2 Group -2.4% (Q2) -4.6% (Q1) 5,015 4,922 Europe (50% Group sales) North America Asia Pacific (43% Group sales) (7% Group sales) -4.5% (Q2) -6.9% (Q1) -0.9% (Q2) +4.1% (Q2) Q2 23 Q2 24 -1.1% (Q1) -7.7% (Q1) 2,541 2,450 2,146 2,129 Selling price evol
Slide 10: Q2 sales in Europe improving on easier electrification base effect
Q2 sales in Europe improving on easier electrification base effect By country By product category • Muted overall demand in Europe, with sequential improvement driven by easier base effect Improvement vs Q1 in all product segments • Sales in core ED1 business down a limited 1.1% in • Further outperf
Slide 11: Strong backlog execution in Q2 in North America
Strong backlog execution in Q2 in North America By country/region By product category • Sales in core ED1 business broadly flat, with • United States: positive volume • Non-residential and industrial automation, mitigating lower demand in ED in industrial • Lower demand in solar (down 34%, contribut
Slide 12: Strong cost control action plans allowed to successfully protect profitability
Strong cost control action plans allowed to successfully protect profitability 7.3% +7 bps • GM facing comparison with high H1 23 (boosted by +5.7% non-cable pricing effect) -58 bps +52 bps 6.0% • H1 24 GM in line with 2023 exit rate (H1 24 -84 bps @25% vs H2 23 @25.2%) -35 bps -10 bps • Cost contro
Slide 13: H1 2024 recurring net income at €341m
H1 2024 recurring net income at €341m Main P&L items Other income & expenses €(6)m Including €4m in restructuring €574m €341m Net financial expenses €(96)m Recurring net income Adjusted EBITA (vs €455m in H1 23) Effective interest rate at 4.3% (vs. 3.4% in H1 2023) Income tax €(128)m Effective tax r
Slide 14: Significant cash inflow from working capital management
Significant cash inflow from working capital management, notably responsive inventory management Main FCF items Trade working capital €(150)m €629m Stable TWCR/sales at 15.2% €335m 53% conversion Non-trade working capital Free cash flow EBITDAaL €(78)m before interest & tax Net capex €(57)m Gross ca
Slide 15: Balanced capital allocation between acquisitions and return to shareholders
Balanced capital allocation between acquisitions and return to shareholders Free cash flow Main FCF items before interest & tax €335m Financial investment €413m €117m €768m €(503)m Dividend Free cash flow €357m Increase innetnet Change in debtdebt after interest & tax Post-cash-out for net interest
Slide 16: Strengthened financial structure with first Schuldschein issue
Strengthened financial structure with first Schuldschein issue Gross debt maturity breakdown and liquidity at June 30, 20241 1000 1,000 4 800 400 50 6 600 Recent operations 882 700 €m 400 600 577 37 200 400 13 27 120 20 45 80 0 2024 2025 2026 2027 2028 2029 2030 Senior Notes Schuldschein Medium term
Slide 17: Outlook
Outlook a world of energy
Slide 18: 2024 outlook confirmed, in the lower end of the range
2024 outlook confirmed, in the lower end of the range In a more complex environment, notably marked by political uncertainties and a more competitive market, Rexel confirms its guidance, with same-day sales growth and adjusted Ebita margin expected in the lower end of the initial range1 Stable to sl
Slide 19: Implementing our strategic roadmap to achieve our midterm ambitions
Implementing our strategic roadmap to achieve our midterm ambitions • Using M&A as an additional growth engine and investing in “acceleration” businesses • 3.2% sales added in H1 through acquisitions • Acquisition of Talley (USA, datacom) & Itesa (France, security) • Acquisition of Electrical Suppli
Slide 20: Disclaimer
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 als