Slide 1: Second-quarter sales & H1 2023 results
Second-quarter sales & H1 2023 results Paris, July 28, 2023 First-half 2023 financial report was authorized for issue by the Board of Directors held on July 27, 2023
Slide 2: Key highlights
Key highlights a world of eneray
Slide 3: H1 2023: A strong start to the year
H1 2023: A strong start to the year €9.8bn +8.1% 7.2% Same-day Reported sales sales growth Adjusted Ebita margin (%) o/w 6.2% in Q2 vs 7.9%1 including 87bps of non-recurring items in H1 22 €242m 1.26x FCF before Interest and tax Indebtedness ratio2 1 Comparable base 2 Net financial debt/EBITDAaL, as
Slide 4: H1 23: Sales supported by solid volumes and positive selling price
H1 23: Sales supported by solid volumes and positive selling price • Solid volumes in key geographies • Continued growth in volumes: +3.3% in Q2 after +4.1% in Q1. • Electrification trends (22% of our sales) contributing strongly - especially in Europe - growing c. 5x times faster than the rest of t
Slide 5: H1 23: Sustained high profitability & upgraded guidance
H1 23: Sustained high profitability & upgraded guidance • Strong profitability: adj. Ebita margin at 7.2% • Crossing the “above 7% level”, excluding one-off effect • +16bps improvement vs record high H1 2022 restated for one- offs • Capitalizing on implementation of Power Up 2025 strategic plan: pri
Slide 6: Q2 & H1 2023 Group financial review
Q2 & H1 2023 Group financial review
Slide 7: Reported sales up +2.8% in Q2 23
Reported sales up +2.8% in Q2 23 Actual-day evolution: +5.2% +6.2% €4,835m €4,705m -1.0% €4,594m -2.0% -0.4% Q2 2022 Forex Scope* Q2 2022 comparable Organic Calendar Q2 2023 same-day * Net effect between acquisitions (Horizon, Buckles-Smith & Trilec) and disposals (Norway & Spain) 7
Slide 8: Proven resilience in all geographies
Proven resilience in all geographies Same-day sales growth by geography Group +6.2% 4,835 Europe (50% Group sales) 4,594 North America Asia Pacific (43% Group sales) (7% Group sales) +8.3% +4.4% 2,399 Q2 22 Q2 23 +2.6% 2,104 2,257 2,016 333 322 Volume : +3.3% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Sell
Slide 9: Volumes boosted by North America in the quarter
Volumes boosted by North America in the quarter Rexel Group Europe North America +10.1% +7.2% +7.5% +5.7% +6.0% +4.3% • Sustain volume in Europe+6.4%at +3.7% +4.1% +2.8% • More difficult +4.5% base effect in NA +5.1% +4.6% +4.4% +3.3% +2.4% +2.8% • APAC impacted by lockdown in China +0.6% -0.5% Q1 Q
Slide 10: Non-cable selling prices up mid-single digit
Non-cable selling prices up mid-single digit Price increases on non-cable & cable (yoy var.) +4.1% +2.2% +5.1% +6.3% +6.5% +9.1% +9.2% +9.0% • Europe : +6.6% +2.9% +6.6% +7.2% +6.6% +3.6% +5.2% +4.7% • North America : +3.4% +2.3% -0.2% -0.6% -0.8% -1.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 N
Slide 11: Europe: Capturing sustainable electrification trends
Europe Capturing sustainable electrification trends +8.3% Q2 2023 SD sales growth Our performance • By country: • Strong growth recorded in France, Benelux and the DACH region • Market share gains in France and Germany • By product: • Solar/EV/HVAC up 31% to reach 20% of sales • c. 510bps contributi
Slide 12: North America: Capturing mega trends and improving backlog execution
North America Capturing mega trends and improving backlog execution +4.4% Q2 2023 SD sales growth Our performance • United States: • By market : Seizing robust industrial demand driven by production reshoring and O&G segment offsetting negative trends in residential. Strong resilience of our commerc
Slide 13: Adjusted Ebita margin up 16bps, excluding non-recurring items
Adjusted Ebita margin up 16bps, excluding non-recurring items +16 bps +20 bps 7.9% +92 bps 7.7% 7.2% -43 bps -87 bps -33 bps Adj. EBITA Portfolio Adj. EBITA Net non-recurring Operating Payrise inflation Other opex Adj. EBITA H1 2022 management H1 2022 items 2022 from leverage inflation H1 2023 compa
Slide 14: All geographies contributing to the adjusted Ebita improvement
All geographies contributing to the adjusted Ebita improvement Europe North America Asia-Pacific Adj. EBITA margin: 7.9% up +10bps Adj. EBITA margin: 7.6% up +13 bps Adj. EBITA margin: 2.3% up +101 bps excluding non-recurring items excluding non-recurring items excluding non-recurring items • Improv
Slide 15: Robust earnings in H1 23
Robust earnings in H1 23 €m H1 2022 H1 2023 Change +16bps restated for non-recurring items from Sales 9,083 9,763 +7.5% inventory price inflation on non-cable products, net of higher performance-linked bonuses in 2022 Adjusted EBITA1 (comparable base) 714 702 -1.7% % Adj Ebita margin 7.9% 7.2% -72bp
Slide 16: Stable indebtedness ratio amid active capital allocation
Stable indebtedness ratio amid active capital allocation €m H1 2022 H1 2023 EBITDA after Lease (EBITDAaL) 750 731 Stable WCR /sales level Change in trade working capital (369) (254) TWC as % of sales 15.2% 15.1% Notably cash-out of 2022 performance linked bonuses Change in non-trade working capital
Slide 17: Balanced financing between Sustainability-Linked Bonds and receivables financing
Balanced financing between Sustainability-Linked Bonds and receivables financing Gross debt maturity breakdown as of June 30, 2023 829 400 885 50 600 360 58 156 30 42 2023 2024 2025 2026 2027 2028 Sustainability Linked Bond Receivables financing Bilateral & SCA (unused) Medium Term Notes S&P Rating
Slide 18: Power Up 2025: One year in
Power Up 2025 One year in
Slide 19: Delivering on our strategy
Delivering on our strategy Mid-term ambitions 2022 achievements H1 2023 achievements CAGR 2022-2025 c.4%-7% 14.1% 8.1% same-day sales on average Adj. EBITA margin 7.3% 1 7.2% 6.5%-7% in 2025 Free cash flow conversion ratio over >60% (each year) 61.4% On track 2022-25 1. Including 66 bps of non-recur
Slide 20: Executing on our Power Up 2025 operational action plans
Executing on our Power Up 2025 operational action plans… “Electrifying solutions that make a sustainable future possible” Excellence Differentiation Mid-term ambitions 2022 achievements H1 2023 achievements Digital 40% in 2025 24%1 of sales 28% of sales c. x3 the number of 6² automated DC 7 automate
Slide 21: Implementing our Power Up 2025 capital allocation
… and implementing our Power Up 2025 capital allocation Mid-term ambitions 2022 achievements H1 2023 achievements Share buyback c. €400m 17% completed 30% completed c. €200m c. €480m Divestments in 2022-25 €200m - €500m of sales completed completed c. €250m c. €1bn* Acquisitions in 2022-25 up to €2b
Slide 22: Ongoing acquisition of Wasco, an HVAC leader in the Netherlands
Ongoing acquisition of Wasco, an HVAC leader in the Netherlands Leader in HVAC business Attractive multiple Strong local footprint €550m Value creation of sales in year 2 Branches DC Robust organic sales High digital sales growth since 2014 penetration c. +10% 57% CAGR 2014-2022 22
Slide 23: Positive momentum in energy transition supported by Dutch regulation
Positive momentum in energy transition supported by Dutch government regulatory framework Gas boiler ban to drive heat pump adoption in the Netherlands New build opportunities Renovation opportunities 100% 900 k units 100% 7 million Gas boilers to be Full electric heat Supply/demand gap from Homes w
Slide 24: Outlook and 2023 guidance
• 05 Outlook and 2023 guidance
Slide 25: 2023 outlook: Entering H2 with good momentum
2023 outlook Entering H2 23 with good momentum • Solid demand in most end-markets, with a high level of accumulated backlog remaining to be served • Confirmation of positive trends in electrification, driven by government policies and stimulus plans • Some contained pockets of weakness (new resident
Slide 26: 2023 guidance upgraded
2023 guidance upgraded Upper end 6.6% - 6.9% > 60% of initial guidance Same-day Adjusted EBITA margin1 Free cash flow conversion2 growth Initial guidance: 2%-6% Initial guidance: 6.3%-6.7% Current guidance: unchanged 1. Excluding (i) amortization of PPA and (ii) the non-recurring effect related to c
Slide 27: Appendix
a world of eneray
Slide 28: Sustainable energy transition trends to support future growth
Sustainable energy transition trends to support future growth Numbers of Electric cars Increasing use of copper to be increased by 10 in 2050 to support inflation 90 60 90 Million units/year 40 62 37 MT/year 60 30 25 30 8 0 0 2020 2030 2050 2020 2030 2050 Source: IAE – Global deployment of selected
Slide 29: Disclaimer
Disclaimer The Group is exposed to fluctuations in copper prices in connection with its distribution of cable products. Cables accounted for approximately 19% of the Group's sales and copper accounts for approximately 60% of the composition of cables. This exposure is indirect since cable prices als