THIRD-QUARTER
& 9-MONTH 2012 RESULTS (unaudited)
Financial statements at Sept. 30,
2012 were authorized for issue by the Management Board on October
24, 2012.
REPORTED
SALES UP 7.2% IN Q3 AND 6.8% IN THE 9 MONTHS
RESILIENT
PERFORMANCE IN A CHALLENGING ENVIRONMENT
FULL-YEAR
PROFITABILITY AND CASH-FLOW TARGETS CONFIRMED
NEW STRATEGIC
ACQUISITION IN THE US
SOLID GROWTH IN REPORTED
SALES
- Reported sales up 7.2% in
Q3 and up 6.8% in the 9 months
- Strong contribution from
acquisitions and positive currency effect more than offset the
decrease in organic sales
RESILIENT PERFORMANCE IN
INCREASINGLY CHALLENGING CONDITIONS
- Q3: Reported EBITA up 3.9%
and Adjusted EBITA1 margin of
5.6%
- 9 months: Reported EBITA up
8.2% and Adjusted EBITA1 margin of
5.6%
FULL-YEAR PROFITABILITY AND
CASH-FLOW TARGETS CONFIRMED
NEW STRATEGIC ACQUISITION IN
THE US: MUNRO DISTRIBUTING COMPANY
At September 30 |
Q3
2012 |
YoY
Change |
9m 2012 |
YoY
Change |
On a reported basis |
|
|
|
|
Sales (€m) |
3,441.3 |
+7.2% |
10,009.4 |
+6.8% |
% change
constant & same-day |
|
-3.6% |
|
-0.8% |
EBITA (€m) |
190.8 |
+3.9% |
561.2 |
+8.2% |
EBITA margin (as a % sales) |
5.5% |
-20bps |
5.6% |
+10bps |
Operating income (€m) |
172.0 |
+3.9% |
482.2 |
+1.4% |
Net income (€m) |
85.3 |
+1.3% |
236.4 |
-7.8% |
Recurring net income (€m) |
96.4 |
+0.3% |
286.7 |
+10.0% |
Free cash flow before interest and tax paid
(€m) |
103.8 |
-34.8% |
228.6 |
-3.4% |
Net debt end of period (€m) |
|
|
2,773.2 |
+22.2% |
On a constant and adjusted basis1 |
|
|
|
|
Gross profit (€m) |
834.0 |
-3.3% |
2,456.0 |
+0.3% |
Gross margin (as a % sales) |
24.2% |
+20bps |
24.5% |
+20bps |
EBITA (€m) |
191.7 |
-8.2% |
558.1 |
+1.7% |
EBITA margin (as a % sales ) |
5.6% |
-20bps |
5.6% |
+10bps |
1
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; an extract of financial
statements is presented in Appendix.
Rudy PROVOOST, Chairman of
the Management Board and CEO, said:
"In the past
quarter, we demonstrated the resilience of our business model
despite a challenging environment. Supported by acquisitions and
driven by our Energy in Motion initiatives, Rexel posted solid
growth in reported sales and reported EBITA. The strategic
acquisition of Munro announced today is a further demonstration of
our commitment to increase our footprint in the US market and
expand our offer in Energy Efficiency solutions.
In an increasingly uncertain macroeconomic
context, we target mid- to high- single-digit growth in reported
sales and reported EBITA for the year and confirm our targets of
profitability and cash generation with an adjusted EBITA margin of
5.7% and free cash-flow before interest and tax of around
€600m."
Financial
review for the period ended September 30, 2012
Unless otherwise
stated, all comments are on a constant and adjusted basis and, for
sales, at same number of working days
Reported
sales: +7.2% in Q3 and +6.8% in the 9 months, supported by solid
contribution from acquisitions and a positive currency
effect
Constant and
same-day sales evolution: -3.6% in Q3, reflecting the economic
slowdown and challenging comparables vs. Q3 2011; -0.8% in the 9
months
In the third quarter, Rexel
recorded sales of €3,441.3 million, up 7.2% on a reported basis and
down 3.6% on a constant and same-day basis. Excluding the negative
1.0 percentage point impact due to the change in copper-based cable
prices, sales were down 2.6% on a constant and same-day basis.
The 7.2% rise in sales on a
reported basis included:
· A positive currency effect
of €191.4 million (mainly due to the appreciation of the USD, the
CAD, the GBP and the AUD against the euro),
· A net positive effect of
€191.5 million from changes in the scope of consolidation
(acquisitions: €193.4 million minus divestments: €1.9 million),
which accelerated in Q3 due to the consolidation of Platt as from
July 1,
· A negative calendar effect
of 0.6 percentage point.
On a constant and same-day basis,
sales reflected increasingly challenging conditions in Rexel's
end-markets:
-
Slowing momentum from industry,
-
Persistently low level of residential
construction,
-
Weak activity in the commercial end-market,
impacted by postponement of projects,
as well as challenging
comparables: Q3 2011 was the strongest quarter last year (+7.5% on
a constant and same-day basis).
In the nine months, Rexel recorded
sales of €10,009.4 million, up 6.8% on a reported basis and down
0.8% on a constant and same-day basis. Excluding the negative 0.9
percentage point impact due to the change in copper-based cable
prices, sales were slightly up (+0.1%) on a constant and same-day
basis.
The 6.8% rise in sales on a
reported basis included:
· A positive currency effect
of €410.5 million (mainly due to the appreciation of the USD, the
CAD, the GBP and the AUD against the euro),
· A net positive effect of
€281.3 million from changes in the scope of consolidation
(acquisitions: €346.2 million minus divestments: €64.9
million),
· A positive calendar effect
of 0.2 percentage points.
Europe (55%
of Group sales): -5.2% in Q3 and -2.5% in 9m on a constant and
same-day basis
In the third quarter, sales in
Europe decreased by 0.7% on a reported basis, including a positive
impact of €67.8 million from the consolidation of Eurodis and
Toutelectric in France, Wilts in the UK, La Grange in Belgium and
Erka in Spain.
On a constant and same-day basis,
sales slowed sequentially: -5.2% in Q3 vs. -2.7% in Q2. Excluding
photovoltaic, sales were down 4.6% in Q3.
In France, sales were down 4.9%
in Q3 (vs. -2.8% in the previous quarter), reflecting lower demand
from the industrial end-market as well as a slowdown in residential
and commercial construction.
In the UK, sales were down 3.3% in
Q3, in line with the previous quarter and against very challenging
comparables (Q3 2011 was the strongest quarter last year at
+11.0%). Excluding photovoltaic and the impact of the branch
optimization program that was implemented in recent quarters (438
branches at September 30, 2012 vs. 452 branches at September 30,
2011), sales were down only -1.6% in Q3 (vs. -2.5% in the previous
quarter).
In Germany, sales were down 5.1%,
in Q3 (vs. -5.4% in the previous quarter). Excluding photovoltaic,
sales were down 3.4% in Q3 (vs. +0.1% in the previous quarter),
reflecting slowing momentum from the industrial end-market and
lower export activity
In Belgium, sales were down 13.9%,
in Q3. Excluding photovoltaic, sales were down 6.8% (vs. -0.4% in
the previous quarter), impacted by delayed commercial projects and
lower residential activity.
In the Netherlands, sales posted a
9.6% decline in Q3, continuing to reflect difficult market
conditions and the business transformation underway.
In both Switzerland and Austria,
sales grew in Q3, respectively by 2.3% and 4.2%.
In Scandinavia, sales decreased by
3.3% in Q3. They were up 1.4% in Norway, while Sweden and Finland
were down respectively 5.2% and 6.4%, reflecting challenging
macroeconomic conditions in both countries.
Southern European countries posted
a decline of 11.8% in Q3, largely due to the continued poor
performance of Spain (-16.8%) and Italy (- 8.4%), while Portugal
posted an increase of 4.6%, helped by export activity.
North
America (32% of Group sales): +0.1% in Q3 and +3.2% in 9m on a
constant and same-day basis
In the third quarter, sales in
North America were up 22.5% on a reported basis, including a
positive effect of €116.1 million from exchange rates (USD and CAD
against the euro) and a further positive effect of €100.8 million
resulting from the consolidation of Liteco (Canada) as from January
2012 and, more significantly, from the acquisition of Platt (US) as
from July 2012. Platt represented €86.0 million out of the €100.8
million scope effect in the quarter.
On a constant and same-day basis,
sales were broadly flat (+0.1%), reflecting contrasting situations:
-1.8% in the US and +5.0% in Canada.
In the US, sales were down 1.8% in
Q3, reflecting challenging comparables (Q3 2011 was the strongest
quarter last year: +9.2% on a constant and same-day basis). On a
24-month basis, sales were up 8.9% in Q3 2012 (vs. Q3 2010) in line
with the 8.7% growth posted in Q2 2012 (vs. Q2 2010).
In Canada, sales were up 5.0%,
despite a challenging base effect (constant and same-day growth was
+11.2% in Q3 2011). Growth continued to be driven by the industrial
end-market, particularly in the mining and oil & gas
segments.
Asia-Pacific
(10% of Group sales): -9.0% in Q3 and -4.4% in 9m on a constant and
same-day basis
In the third quarter, sales in
Asia-Pacific were up 0.9% on a reported basis, including a positive
effect of €40.9 million from favorable exchange rates (primarily
the appreciation of the AUD against the euro).
On a constant and same-day basis,
sales were down 9.0% in Q3.
In China (c. 25% of the region's
sales), sales were down 7.4%, reflecting a strong decline in wind
sales and extremely challenging comparables as Q3 2011 was the
strongest quarter last year, notably due to the positive impact of
a large project operated by Gexpro China (+33.3% on a constant and
same-day basis). Excluding wind, sales were up 1.1% in Q3.
In Australia (c. 60% of the
region's sales), sales were down 8.5%, still impacted by difficult
macroeconomic conditions but also by the implementation of a new
carbon tax as from July 1, that severely hit mining and
projects.
In New Zealand (c. 10% of the
region's sales), sales were down 14.8%, still reflecting the poor
macroeconomic environment, branch closures (50 branches at
September 30, 2012 vs. 61 branches at September 30, 2011) and delay
in post-earthquake reconstruction.
Latin
America (3% of Group sales): +4.3% in Q3 and +5.4% in 9m on a
constant and same-day basis
In the third quarter, sales in
Latin America were up 47.7% on a reported basis, including a
positive effect of €24.6 million resulting from the consolidation
of Delamano and Etil in Brazil and V&F Tecnologia in Peru.
On a constant and same-day basis,
sales were up 4.3% due to strong performance in Chile (+15.9%) and
Peru (+15.8%), while sales in Brazil were slightly down (-2.0%),
impacted by slower momentum in industry and the integration process
of the recently acquired Delamano.
Resilient profitability in
Europe and improvement in North America (87% of sales) despite
increasingly challenging macroeconomic conditions; Asia-Pacific and
Latin America under pressure
In the third quarter,
EBITA[1] margin
decreased by 20 basis points and stood at 5.6%.
This 20 basis point drop
reflected:
-
A 20 basis point improvement in gross margin, to
24.2%,
-
An increase in distribution and administrative
expenses[2] as a
percentage of sales (from 18.20% in Q3 2011 to 18.66% in Q3 2012):
these expenses were reduced by 1.8% while sales decreased by 4.2%
on a constant and actual-day basis.
By geography:
-
Europe demonstrated very strong resilience with
stable EBITA1 margin of
6.5% (sales were down 5.9% in the quarter on a constant and
actual-day basis),
-
North America continued to improve its
EBITA1 margin by
20bps to 5.4% (sales were flat in the quarter on a constant and
actual-day basis),
-
Asia-Pacific posted a 230bp drop in
EBITA1 margin to
5.1%, impacted by the strong decline in sales (down 9.7% in the
quarter on a constant and actual-day basis) and adverse geographic
mix,
-
Latin America posted a 220bp drop in
EBITA1 margin to
1.5% (although sales were up 1.2% in the quarter on a constant and
actual-day basis), impacted by strong inflation in personnel costs
and expense due to building a strong national platform in
Brazil.
Europe and North America, which
demonstrated either very resilient or improved EBITA1
margin, represent over 85% of Group sales.
In the nine months,
EBITA1 margin
improved by 10 basis points and stood at 5.6%
This 10bp improvement
reflected:
-
A 20bp improvement in gross margin, to
24.5%,
-
An increase in distribution and administrative
expenses2 as a percentage of sales (from 18.87% in 9m 2011 to
18.96% in 9m 2012): these expenses were reduced by 0.1% while sales
decreased by 0.6% on a constant and actual-day basis.
Reported
EBITA up 3.9% in Q3 and up 8.2% in the nine months
Reported EBITA reached €190.8
million in the quarter, up 3.9% year-on-year, and €561.2 million in
the nine months, up 8.2% year-on-year, boosted by acquisitions and
a positive currency effect.
Operating
income up 3.9% in Q3 and 1.4% in the nine months
Recurring
net income up 10.0% in the nine months; reported net income
impacted by rise in tax rate
In the nine months, operating
income was up 1.4% at €482.2 million.
-
Amortization of purchase price allocation
amounted to €9.3 million (vs. €13.1 million in 9m 2011).
-
Other income and expenses amounted to a net
charge of €69.7 million (vs. a net charge of €29.9 million in 9m
2011, which benefited from the net proceeds from the disposals of
HBA and Kompro for €26.1 million). They included €27.6 million of
goodwill impairment (already accounted for as of June 30 and mainly
due to weaker than expected performance in the Netherlands and in
New Zealand). They also included €28.2 million of restructuring
costs (vs. €15.2 million in 9m 2011).
In the nine months, net income
stood at €236.4 million vs. €256.3 million in 9m 2011. The 7.8%
decrease was mainly attributable to the rise in the effective tax
rate: as expected, this rate increased to 29.5% in 9m 2012 vs.
21.2% in 9m 2011, which benefited from the recognition of
prior-year losses carried forward.
It included:
-
Net financial expenses for €149.0 million
(vs. €152.1 million in 9m 2011). The average effective interest
rate for the nine months stood at 7.2% (flat vs. 9m 2011).
-
Income tax represented a charge of €98.3
million (vs. €68.5 million in 9m 2011), as explained above.
-
Share of profit/loss in associates was a
profit of €1.5 million (vs. a profit of €1.2 million in 9m
2011).
In the nine months, recurring net
income amounted to €286.6 million, up 10.0% year-on-year (see
appendix 2).
Positive
free cash-flow before interest and tax3 of €228.6
million in the nine months
Temporary
rise in indebtedness ratio to slightly above 3 times EBITDA at
September 30, 2012 (vs. 2.80x at September 30, 2011) due to the
impact of the payment of Platt in early July
In the nine months, free cash flow
before interest and tax[3] was an
inflow of €228.6 million (vs. an inflow of €236.6 million in 9m
2011). This inflow included:
-
Net capital expenditure of €54.2 million,
-
A €268.0 million outflow from change in working
capital, resulting from stronger sales, higher inventories and
lower level of trade payables.
At September 30, 2012, net debt
stood at €2,773.2 million, vs. 2,270.2 million at September 30,
2011 and vs. 2,078.2 million at December 31, 2011. It took into
account:
· €491.6 million
of net financial investment, of which €338.1 million in Q3 largely
attributable to the payment of Platt in early July,
· €126.1 million
of net interest paid,
· €94.9 million
of income tax paid,
· €143.0 million
of dividend paid in cash,
· €19.9 million
of unfavorable currency effect.
At the end of September, the
indebtedness ratio (Net financial debt / EBITDA), as calculated
under the Senior Credit Agreement terms, stood at 3.07 (vs. 2.80x
at September 30, 2011 and vs. 2.40x at December 31, 2011). This
level was temporarily impacted by the payment of Platt in early
July. It will return to around 2.8 times at the end of the year
(including the impact of the two acquisitions announced below),
thanks to the strong seasonality of cash flow generation during
Q4.
Two new acquisitions in line
with Rexel's external growth strategy and Energy in Motion
plan
Rexel reached an agreement
yesterday to acquire Munro Distributing Company, an innovative
electrical products & services distributor specializing in
energy efficiency and conservation solutions in the Eastern US and
California. This acquisition significantly reinforces Rexel's
position in the US as a premier provider of energy efficiency
solutions. The combination of Rexel's robust energy platform -
within its Gexpro and Rexel Inc. banners - and Munro Distributing
Company will create an energy efficiency solutions offering of
unrivaled scope in the U.S. market, in line with Rexel's Energy in
Motion strategic plan.
Munro Distributing Company's history of innovative energy
efficiency solutions and strong partnerships with energy services
companies (ESCOs) and utilities will create significant value for
the Group.
Founded in 1951 and based in Massachusetts, the company operates 12
branches located in 5 states (Massachusetts, Rhode Island, New
York, New Jersey and California) and employs about 185 people. It
should post annual sales of c. €115 million this year (vs. €88
million in 2011).
This acquisition represents c. €115 million (enterprise value) for
Rexel and it will be accretive by the end of 2013. The transaction,
subject to customary conditions, should close in early December and
Munro Distributing Company's operations should be consolidated from
December 1.
In early August, Rexel acquired
one of the leading players in Peru, Dirome. This acquisition
expands Rexel's footprint in the fast-growing Peruvian market and
strengthens its presence in the mining industry, one of the
priorities of Rexel's Energy in Motion company plan.
With its experience in distributing a broad offer of electrical
products to large industrial and service companies, small and
medium-sized contractors and retail operators, Dirome offers strong
geographical and business complementarity with V&F Tecnologia,
which Rexel acquired in October 2011.
Founded in 1996, Dirome operates 4 branches (2 in Trujillo, 1 in
Piura and 1 in Lima), employs 55 people and serves the Peruvian
coast from North to South. It should post annual sales of c. €10
million in 2012.
This acquisition will be accretive by the end of 2013 and Dirome's
operations are consolidated as from October 1.
In a
macroeconomic environment that has slowed continuously since the
beginning of the year, Rexel, driven by its acquisition strategy,
targets:
-
Mid- to high-single digit
growth in reported sales (vs. previous
target of "organic growth above weighted GDP average
growth"),
-
Mid- to high-single digit
growth in reported EBITA (new
target).
Despite the increasingly uncertain
macroeconomic context, Rexel confirms its profitability and
cash-flow targets:
-
Adjusted EBITA1
margin of 5.7% (in line with the
previously-announced target of "at least 5.7%"),
-
Free cash-flow before
interest and tax of around €600 million (unchanged).
February 12,
2013
Fourth-quarter and full-year 2012 results
May 2,
2013
First-quarter 2013 results
July 26,
2013
Second-quarter and half-year 2013 results
October 31,
2013
Third-quarter and 9-month 2013 results
The financial report for the
period ended September 30, 2012 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 third-quarter
& 9-month 2012 results is also available on the Group's
website.
Rexel, a global leader in the
distribution of sustainable and innovative products and services
for automation, technical supply and energy management, addresses
three main markets - industrial, commercial and residential. The
Group supports customers around the globe, wherever they are, to
create value and run their business better. With a network of some
2,200 branches in 37 countries, and over 28,000 employees, Rexel's
sales were €12.7 billion in 2011. Its majority shareholders are an
investor group led by Clayton, Dubilier & Rice, Eurazeo and
BAML Capital Partners.
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, FTSE4Good, STOXX600, STOXX Europe
Sustainability and ASPI Eurozone.
Financial Analysts / Investors |
Press |
Marc MAILLET |
Karolina ADAMKIEWICZ |
+33 1 42 85 76 12 |
+33 1 42 85 76 39 |
mmaillet@rexel.com |
kadamkiewicz@rexel.com |
Florence MEILHAC |
Brunswick: Thomas KAMM |
+33 1 42 85 57 61 |
+33 1 53 96 83 92 |
fmeilhac@rexel.com |
tkamm@brunswickgroup.com |
Rexel has elected for early
adoption of revised IAS 19 "Employee Benefits" following its
endorsement by EU on June 6, 2012. The early adoption of this
amendment improves information of the Group's financial situation,
in particular the presentation in the financial statements of the
surplus or deficit of pension funds. Accounting policy changes have
been applied retrospectively of of January 1, 2011 and comparative
information are available in the consolidated financial
statements.
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 €8.8 million in Q3
2011 and a loss of €0.9 million in Q3 2012;
- a loss of €0.4 million in 9m
2011 and a profit of €3.1 million in 9m 2012.
GROUP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis
(€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
|
3,593.7 |
3,441.3 |
-4.2% |
10,065.1 |
10,009.4 |
-0.6% |
|
on a constant basis and same
days |
|
|
-3.6% |
|
|
-0.8% |
Gross profit |
862.7 |
834.0 |
-3.3% |
2,447.5 |
2,456.0 |
+0.3% |
|
as a % of sales |
24.0% |
24.2% |
+20bps |
24.3% |
24.5% |
+20bps |
Distribution & adm. expenses (incl. depreciation) |
(653.9) |
(642.3) |
-1.8% |
(1,899.0) |
(1,897.9) |
-0.1% |
EBITA |
|
208.8 |
191.7 |
-8.2% |
548.6 |
558.1 |
+1.7% |
|
as a % of sales |
5.8% |
5.6% |
-20bps |
5.5% |
5.6% |
+10bps |
Headcount (end of period) |
30,927 |
30,400 |
-1.7% |
30,927 |
30,400 |
-1.7% |
EUROPE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis
(€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
|
1,944.9 |
1,829.3 |
-5.9% |
5,690.1 |
5,525.6 |
-2.9% |
|
on a constant
basis and same days |
|
|
-5.2% |
|
|
-2.5% |
o/w |
France |
606.6 |
576.9 |
-4.9% |
1,882.8 |
1,825.5 |
-3.0% |
|
on a constant basis and same
days |
|
|
-4.9% |
|
|
-2.5% |
|
United Kingdom |
294.9 |
281.3 |
-4.6% |
806.4 |
794.5 |
-1.5% |
|
on a constant basis and same
days |
|
|
-3.3% |
|
|
-1.5% |
|
Germany |
241.1 |
225.5 |
-6.5% |
669.3 |
650.5 |
-2.8% |
|
on a constant basis and same
days |
|
|
-5.1% |
|
|
-2.3% |
|
Scandinavia |
239.9 |
228.6 |
-4.7% |
682.1 |
688.4 |
+0.9% |
|
on a constant basis and same
days |
|
|
-3.3% |
|
|
+1.3% |
Gross |
profit |
500.8 |
482.6 |
-3.6% |
1,498.6 |
1,489.4 |
-0.6% |
|
as a % of
sales |
25.7% |
26.4% |
+70bps |
26.3% |
27.0% |
+70bps |
Distribution & adm. expenses (incl. depreciation) |
(373.8) |
(364.1) |
-2.6% |
(1,124.4) |
(1,108.2) |
-1.4% |
EBITA |
|
127.0 |
118.4 |
-6.7% |
374.2 |
381.2 |
+1.9% |
|
as a % of
sales |
6.5% |
6.5% |
stable |
6.6% |
6.9% |
+30bps |
Headcount (end of period) |
17,818 |
17,230 |
-3.3% |
17,818 |
17,230 |
-3.3% |
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis
(€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
|
1,181.4 |
1,181.3 |
0.0% |
3,078.5 |
3,224.4 |
+4.7% |
|
on a constant basis and same
days |
|
|
+0.1% |
|
|
+3.2% |
o/w |
United States |
838.2 |
826.0 |
-1.4% |
2,125.6 |
2,209.8 |
+4.0% |
|
on a constant basis and same
days |
|
|
-1.8% |
|
|
+1.8% |
|
Canada |
343.3 |
355.3 |
+3.5% |
952.9 |
1,014.6 |
+6.5% |
|
on a constant basis and same
days |
|
|
+5.0% |
|
|
+6.5% |
Gross |
profit |
255.7 |
258.2 |
+1.0% |
659.7 |
693.1 |
+5.1% |
as a % of sales |
21.6% |
21.8% |
+20bps |
21.4% |
21.5% |
+10bps |
Distribution & adm. expenses (incl. depreciation) |
(194.0) |
(194.5) |
+0.2% |
(528.6) |
(530.7) |
+0.4% |
EBITA |
|
61.7 |
63.7 |
+3.3% |
131.1 |
162.4 |
+23.9% |
|
as a % of sales |
5.2% |
5.4% |
+20bps |
4.3% |
5.0% |
+70bps |
Headcount (end of period) |
8,378 |
8,485 |
1.3% |
8,378 |
8,485 |
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA-PACIFIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis
(€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
|
390.8 |
352.9 |
-9.7% |
1,071.9 |
1,026.0 |
-4.3% |
|
on a constant
basis and same days |
|
|
-9.0% |
|
|
-4.4% |
o/w |
China |
103.3 |
97.2 |
-5.8% |
264.3 |
274.9 |
+4.0% |
|
on a constant basis and same
days |
|
|
-7.4% |
|
|
+3.2% |
|
Australia |
226.7 |
203.8 |
-10.1% |
634.2 |
599.9 |
-5.4% |
|
on a constant basis and same
days |
|
|
-8.5% |
|
|
-5.5% |
|
New Zealand |
41.0 |
34.4 |
-16.1% |
115.6 |
100.1 |
-13.4% |
|
on a constant basis and same
days |
|
|
-14.8% |
|
|
-12.5% |
Gross |
profit |
88.5 |
74.6 |
-15.7% |
238.2 |
218.2 |
-8.4% |
|
as a % of
sales |
22.6% |
21.1% |
-150bps |
22.2% |
21.3% |
-90bps |
Distribution & adm. expenses (incl. depreciation) |
(59.4) |
(56.4) |
-5.0% |
(172.2) |
(168.1) |
-2.4% |
EBITA |
|
29.1 |
18.1 |
-37.6% |
66.0 |
50.1 |
-24.2% |
|
as a % of
sales |
7.4% |
5.1% |
-230bps |
6.2% |
4.9% |
-130bps |
Headcount (end of
period) |
2,920 |
2,794 |
-4.3% |
2,920 |
2,794 |
-4.3% |
|
|
|
|
|
|
|
|
LATIN AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant and adjusted basis
(€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
|
76.7 |
77.6 |
+1.2% |
224.4 |
233.2 |
+3.9% |
|
on a constant basis and same
days |
|
|
+4.3% |
|
|
+5.4% |
o/w |
Brazil |
49.1 |
47.3 |
-3.5% |
137.1 |
135.8 |
-0.9% |
|
on a constant basis and same
days |
|
|
-2.0% |
|
|
+0.3% |
|
Chile |
24.3 |
26.2 |
+8.0% |
77.9 |
86.1 |
+10.6% |
|
on a constant basis and same
days |
|
|
+15.9% |
|
|
+12.9% |
|
Peru |
3.4 |
4.1 |
+19.3% |
9.4 |
11.3 |
+20.4% |
|
on a constant basis and same
days |
|
|
+15.8% |
|
|
+18.5% |
Gross |
profit |
17.3 |
18.1 |
+4.7% |
48.8 |
53.8 |
+10.1% |
|
as a % of sales |
22.5% |
23.3% |
+80bps |
21.8% |
23.1% |
+130bps |
Distribution & adm. expenses (incl. depreciation) |
(14.4) |
(16.9) |
+17.4% |
(40.7) |
(48.3) |
+18.6% |
EBITA |
|
2.9 |
1.2 |
-58.5% |
8.1 |
5.5 |
-32.1% |
|
as a % of sales |
3.7% |
1.5% |
-220bps |
3.6% |
2.4% |
-120bps |
Headcount (end of period) |
1,614 |
1,685 |
4.4% |
1,614 |
1,685 |
4.4% |
Appendix
2
Extract of
Financial Statements
Consolidated
Income Statement
|
Reported basis (€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
3,210.8 |
3,441.3 |
+7.2% |
9,373.3 |
10,009.4 |
+6.8% |
Gross profit |
761.9 |
833.1 |
+9.3% |
2,294.5 |
2,459.3 |
+7.2% |
|
as a % of sales |
23.7% |
24.2% |
|
24.5% |
24.6% |
|
Distribution & adm. expenses (excl. depreciation) |
(560.4) |
(623.3) |
+11.2% |
(1,721.0) |
(1,843.7) |
+7.1% |
EBITDA |
201.5 |
209.7 |
+4.1% |
573.5 |
615.6 |
+7.3% |
|
as a % of sales |
6.3% |
6.1% |
|
6.1% |
6.2% |
|
Depreciation |
(17.9) |
(18.9) |
|
(54.8) |
(54.4) |
|
EBITA |
183.6 |
190.8 |
+3.9% |
518.7 |
561.2 |
+8.2% |
|
as a % of sales |
5.7% |
5.5% |
|
5.5% |
5.6% |
|
Amortization of purchase price allocation |
(3.9) |
(4.2) |
|
(13.1) |
(9.3) |
|
Operating income bef. other inc. and
exp. |
179.7 |
186.6 |
+3.8% |
505.6 |
551.9 |
+9.2% |
|
as a % of sales |
5.6% |
5.4% |
|
5.4% |
5.5% |
|
Other income and expenses |
(14.1) |
(14.6) |
|
(29.9) |
(69.7) |
|
Operating income |
165.6 |
172.0 |
+3.9% |
475.7 |
482.2 |
+1.4% |
Financial expenses (net) |
(54.4) |
(52.0) |
|
(152.1) |
(149.0) |
|
Share of profit (loss) in associates |
1.1 |
1.3 |
|
1.2 |
1.5 |
|
Net income (loss) before income
tax |
112.3 |
121.3 |
+8.1% |
324.8 |
334.7 |
+3.0% |
Income tax |
(28.1) |
(36.0) |
|
(68.5) |
(98.3) |
|
Net income (loss) |
84.2 |
85.3 |
+1.3% |
256.3 |
236.4 |
-7.8% |
Net income (loss) attr. to non-controlling interests |
0.6 |
0.6 |
|
1.0 |
0.7 |
|
Net income (loss) attr. to equity holders of the
parent |
83.6 |
84.7 |
+1.3% |
255.3 |
235.7 |
-7.7% |
Recurring Net
Income
In millions of euros |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Reported net income |
84.2 |
85.3 |
+1.3% |
256.3 |
236.4 |
-7.8% |
Non-recurring copper effect |
8.6 |
0.9 |
|
0.6 |
-3.1 |
|
Other expense & income |
14.2 |
14.6 |
|
29.9 |
69.7 |
|
Financial expense |
3.1 |
0.0 |
|
13.1 |
-7.4 |
|
Tax expense |
-13.9 |
-4.4 |
|
-39.4 |
-9.0 |
|
Recurring net income |
96.1 |
96.4 |
+0.3% |
260.5 |
286.7 |
+10.0% |
Sales and
profitability by segment
|
Reported basis (€m) |
Q3 2011 |
Q3 2012 |
Change |
9m 2011 |
9m 2012 |
Change |
Sales |
3,210.8 |
3,441.3 |
+7.2% |
9,373.3 |
10,009.4 |
+6.8% |
|
Europe |
1,842.2 |
1,829.3 |
-0.7% |
5,480.3 |
5,525.6 |
+0.8% |
|
North America |
964.5 |
1,181.3 |
+22.5% |
2,712.9 |
3,224.4 |
+18.9% |
|
Asia-Pacific |
349.7 |
352.9 |
+0.9% |
953.0 |
1,026.0 |
+7.7% |
|
Latin America |
52.6 |
77.6 |
+47.7% |
162.1 |
233.2 |
+43.9% |
Gross profit |
761.9 |
833.1 |
+9.3% |
2,294.5 |
2,459.3 |
+7.2% |
|
Europe |
467.9 |
482.7 |
+3.2% |
1,442.5 |
1,494.2 |
+3.6% |
|
North America |
203.7 |
257.9 |
+26.6% |
577.6 |
692.2 |
+19.8% |
|
Asia-Pacific |
76.6 |
73.8 |
-3.6% |
210.3 |
217.6 |
+3.5% |
|
Latin America |
12.3 |
18.0 |
+46.1% |
36.4 |
53.7 |
+47.5% |
EBITA |
183.6 |
190.8 |
+3.9% |
518.7 |
561.2 |
+8.2% |
|
Europe |
119.3 |
118.6 |
-0.5% |
368.7 |
385.8 |
+4.6% |
|
North America |
48.4 |
63.4 |
+31.0% |
114.4 |
161.5 |
+41.2% |
|
Asia-Pacific |
25.4 |
17.4 |
-31.4% |
59.8 |
49.5 |
-17.2% |
|
Latin America |
2.1 |
1.1 |
-48.7% |
6.5 |
5.4 |
-16.4% |
Impact on
sales from changes in the scope of consolidation
Acquisitions |
Country |
Conso. |
Q3 2012 |
9m 2012 |
|
|
as from |
|
|
Europe |
France, UK, Spain, Belgium |
misc. |
67.8 |
136.0 |
North America |
Canada, USA |
misc. |
100.8 |
123.7 |
Asia-Pacific |
China, India |
01/07/11 |
0.2 |
23.1 |
Latin America |
Brazil, Peru |
misc. |
24.6 |
63.4 |
Total acquisitions |
|
|
193.4 |
346.1 |
Divestments |
Country |
Deconso. |
Q3 2012 |
9m 2012 |
|
|
as from |
|
|
ACE |
ACE |
01/07/11 |
-1.9 |
-64.9 |
Total divestments |
|
|
-1.9 |
-64.9 |
Net impact on sales |
|
|
191.5 |
281.2 |
Consolidated
Balance Sheet
Assets (€m) |
December
31, 2011 |
September 30, 2012 |
Goodwill |
4,002.2 |
4,348.2 |
Intangible assets |
935.7 |
1,045.5 |
Property, plant & equipment |
261.7 |
276.1 |
Long-term investments(1) |
97.1 |
89.9 |
Investments in associates |
11.8 |
11.2 |
Deferred tax assets |
153.2 |
164.9 |
Total non-current
assets |
5,461.7 |
5,935.8 |
Inventories |
1,240.8 |
1,468.6 |
Trade receivables |
2,122.9 |
2,316.8 |
Other receivables |
476.2 |
473.4 |
Assets classified as held for sale |
3.7 |
3.3 |
Cash and cash equivalents |
413.7 |
251.6 |
Total current assets |
4,257.3 |
4,513.7 |
Total assets |
9,719.0 |
10,449.5 |
|
|
|
Liabilities (€m) |
December
31, 2011 |
September 30, 2012 |
Total equity |
4,042.5 |
4,132.8 |
Long-term debt |
2,182.3 |
2,557.6 |
Deferred tax liabilities |
111.3 |
163.0 |
Other non-current liabilities |
437.2 |
471.2 |
Total non-current
liabilities |
2,730.8 |
3,191.8 |
Interest bearing debt & accrued interests |
333.5 |
503.2 |
Trade payables |
1,903.3 |
1,926.1 |
Other payables |
708.9 |
695.6 |
Liabilities classified as held for sale |
0.0 |
0.0 |
Total current
liabilities |
2,945.7 |
3,124.9 |
Total liabilities |
5,676.5 |
6,316.7 |
Total equity &
liabilities |
9,719.0 |
10,449.5 |
1 Includes Fair
value hedge derivatives for €23.8 million at December 31, 2011 and
for €36.0 million at September 30, 2012
Change in Net
Debt
€m |
Q3 2011 |
Q3 2012 |
9m 2011 |
9m 2012 |
EBITDA |
201.5 |
209.7 |
573.5 |
615.6 |
Other operating revenues & costs(1) |
(10.8) |
(19.5) |
(40.9) |
(64.8) |
Operating cash
flow |
190.7 |
190.2 |
532.6 |
550.8 |
Change in working capital |
(16.5) |
(69.0) |
(253.9) |
(268.0) |
Net capital expenditure, of which: |
(15.1) |
(17.4) |
(42.1) |
(54.2) |
Gross capital expenditure |
(16.0) |
(20.2) |
(60.4) |
(53.8) |
Disposal of fixed assets &
other |
0.9 |
2.8 |
18.3 |
(0.4) |
Free cash flow before
interest and tax |
159.1 |
103.8 |
236.6 |
228.6 |
Net interest paid / received |
(43.8) |
(44.7) |
(115.2) |
(126.1) |
Income tax paid |
(24.1) |
(27.1) |
(71.6) |
(94.9) |
Free cash flow after interest
and tax |
91.2 |
32.0 |
49.8 |
7.6 |
Net financial investment(2) |
41.2 |
(353.1) |
(14.0) |
(491.6) |
Dividends paid |
(0.1) |
0.0 |
(105.3) |
(143.0) |
Net change in equity |
0.0 |
(0.2) |
88.4 |
0.0 |
Other |
(15.1) |
(13.4) |
(36.6) |
(48.1) |
Currency exchange variation |
(23.6) |
19.9 |
20.8 |
(19.9) |
Decrease (increase) in net
debt |
93.6 |
(314.8) |
3.1 |
(695.0) |
Net debt at the beginning of the
period |
2,363.8 |
2,458.4 |
2,273.3 |
2,078.2 |
Net debt at the end of the
period |
2,270.2 |
2,773.2 |
2,270.2 |
2,773.2 |
(1) Includes restructuring outflows of :
(2) Q3 2012 includes €338.1 million of
acquisitions (net of cash) and 9m 2012 includes €473.1 million of
acquisitions (net of cash)
Appendix
3
Working
Capital Analysis
Constant basis |
September 30, 2011 |
September 30, 2012 |
Net inventories |
|
|
as a % of sales 12
rolling months |
10.0% |
10.3% |
as a number of days |
|
|
Net trade receivables |
|
|
as a % of sales 12
rolling months |
18.2% |
17.2% |
as a number of days |
|
|
Net trade payables |
|
|
as a % of sales 12
rolling months |
14.9% |
13.8% |
as a number of days |
|
|
Trade working capital |
|
|
as a % of sales 12
rolling months |
13.3% |
13.6% |
Total working capital |
|
|
as a % of sales 12
rolling months |
11.8% |
12.4% |
Appendix
4
Headcount and
branches by geography
FTEs at end of period |
30/09/2011 |
31/12/2011 |
30/09/2012 |
Change |
comparable |
Europe |
17,818 |
17,710 |
17,230 |
-3.3% |
USA |
6,017 |
6,078 |
6,070 |
0.9% |
Canada |
2,361 |
2,397 |
2,414 |
2.2% |
North America |
8,378 |
8,475 |
8,485 |
1.3% |
Asia-Pacific |
2,920 |
2,926 |
2,794 |
-4.3% |
Latin America |
1,614 |
1,661 |
1,685 |
4.4% |
Other |
197 |
204 |
206 |
4.6% |
Group |
30,927 |
30,976 |
30,400 |
-1.7% |
|
|
|
|
|
Branches |
30/09/2011 |
31/12/2011 |
30/09/2012 |
Change |
comparable |
Europe |
1,396 |
1,389 |
1,377 |
-1.4% |
USA |
413 |
406 |
395 |
-4.4% |
Canada |
223 |
221 |
218 |
-2.2% |
North America |
636 |
627 |
613 |
-3.6% |
Asia-Pacific |
299 |
293 |
278 |
-7.0% |
Latin America |
83 |
85 |
89 |
7.2% |
Group |
2,414 |
2,394 |
2,357 |
-2.4% |
Appendix
5
Senior Credit
Agreement
The €1.3bn SCA comprises two revolving credit
facilities:
-
a 3-year multi-currency revolving credit
facility in an amount of €200m (the initial amount was €600m and
was reduced to €400m after one year and to €200m after two years),
named "Facility A"
-
a 5-year multi-currency revolving credit
facility in an amount of €1.1bn, named "Facility B"
The applicable margin levels vary according to the
IR thresholds (IR = Indebtedness Ratio, i.e. adjusted consolidated
net debt to adjusted consolidated EBITDA of the last 12 months), as
indicated below:
Indebtedness Ratio (IR) |
IR sup. or equal to 5.0x |
IR sup. or equal to 4.5x and inf. to
5.0x |
IR sup. or equal to 4.0x and inf. to
4.5x |
IR sup. or equal to 3.5x and inf. to
4.0x |
IR sup. or equal to 3.0x and inf. to
3.5x |
IR sup. or equal to 2.5x and inf. to
3.0x |
IR inf. to 2.5x |
Facility A |
4.25% |
3.50% |
3.00% |
2.50% |
2.00% |
1.75% |
1.50% |
Facility B |
4.50% |
3.75% |
3.25% |
2.75% |
2.25% |
2.00% |
1.75% |
In addition, the margin applicable to both
facilities shall be increased by an utilisation fee equal to:
-
25bps if the total amount drawn under both
facilities is comprised between 33% and 66% of the total
commitment;
-
50bps if the total amount drawn under both
facilities equals or exceeds 66% of the total commitment.
The applicable financial covenants are the
following:
- Commitment to keep indebtedness ratio below
thresholds:
Date |
30 june 2010 |
31 dec. 2010 |
30 june 2011 |
31 dec. 2011 |
30 june 2012 |
Thereafter |
Covenant |
5.15x |
4.90x |
4.50x |
4.00x |
3.75x |
3.5x |
- Commitment to suspend dividend payments as long
as IR equals or exceeds 4.00x
- Commitment to limit capital expenditure to 0.75%
of sales as long as IR equals or exceeds 4.00x
The SCA contains customary clauses
for this type of agreement. These include clauses restricting the
ability of Rexel Group companies to pledge their assets, carry out
mergers or restructuring programs, borrow or lend money or provide
guarantees. In particular, the Rexel Group has no restriction on
acquisitions if the Indebtedness Ratio does not exceed 3.50x and
has an acquisition basket of up to €200 million for each 12-months
period if the Indebtedness Ratio equals or exceed 3.50x.
DISCLAIMER
The Group is
exposed to fluctuations in copper prices in connection with its
distribution of cable products. Cables accounted for approximately
17% 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 (principally, the variable
portion of compensation of sales personnel, which accounts for
approximately 10% of the variation in gross profit).
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 press
release 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 15, 2012 under number D.12-0164.
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 press release 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 press
release includes only summary information and must be read in
conjunction with Rexel's Document de Référence registered with the
AMF March 15, 2012 under number D.12-0164, as well as the
consolidated financial statements and activity report for the 2011
fiscal year, which may be obtained from Rexel's website
(www.rexel.com).
[1] 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
[2]Including depreciations
[3]Cash from operating activities minus net
capital expenditure and before net interest and income tax paid
Thrid-quarter & 9-month 2012
results (non audited)
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: REXEL via Thomson Reuters ONE
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