A dynamic year
In 2014, Rexel was able to demonstrate the robustness of its business model with sales climbing to slightly more than €13bn over the year.
2014 can be described as a dynamic year for Rexel with important progress in developing our strategic growth areas and reinforcing our operational capabilities, as well as the implementation of a one-tier board governance model in line with the evolution of the shareholding structure.
Overall, we were able to demonstrate the robustness of our business model with sales climbing to slightly more than €13bn over the year, mostly driven by organic growth from North America.
Our operating margin was on target at 5.0% and we generated strong free cash flow before interest and tax of just above €560m.
We have also confirmed our dividend policy of paying out at least 40% of recurring net income and have maintained the 2015 dividend at last year’s level of €0.75 per share.
A streamlined organization
Rexel has reinforced its organizational effectiveness across the US, Canada and Europe.
To reinforce Rexel’s commitment to increase its organizational effectiveness and to leverage synergy and scale across both the US and Canada, Rexel appointed Brian McNally to the position of Executive Vice-President and CEO of Rexel North America in August 2014.
In 2015, we further reinforced the accountability structure at regional level by placing all our European operations under a single regional leader, with the appointment of Patrick Berard as Senior Vice President Europe, effective July 1st.
Focus on strategic drivers
In a persistently challenging market environment, we further expanded our high-growth categories, as well as our international customers and projects business, and vertical markets.
In a persistently challenging market environment, we further expanded our high-growth categories, such as energy efficiency, building automation and renewable energy, as well as our international customers and projects business, and vertical markets such as mining.
We continue to optimize our logistics network in order to reinforce operational efficiency, asset and cost productivity, and improve customer service levels.
We are also working closely with our suppliers to put more advanced customer and product segmentation methods in place in order to drive more effective pricing and enhance commercial margins.
Furthermore, we are building a strong IT backbone and digital platform to enable the implementation of a fully-fledged multi-channel customer centricity model.
Customer centricity at work
Multi-channel is about putting
the customer at the center.
Rexel is able to provide a comprehensive multi-channel offering that meets the
customer’s needs and is at the core of Rexel’s customer
Multi-channel is about putting the customer at the center by giving them better access and a greater choice about how they interact with Rexel. Whether it is to make a transaction, ask for advice or get technical and commercial support, being able to provide a comprehensive multi-channel offering that meets the customer’s needs is at the core of Rexel’s customer centricity model.
In this context and with the support of all our major suppliers, we are transforming our business from a branch-centric to a transactional customer-centric model that capitalizes on all touch points - points of sale or service in branch, sales reps, remote support centers and tech centers, online stores, mobile apps, EDI exchange - to offer a seamless customer experience allowing our customers to make their purchase how, when and where they want.
Solutions for a better energy world
We are using the opportunities offered by the convergence of digital technology with the
energy world to help our customers manage their energy more efficiently, more simply
and with greater control, comfort and security.
Customer centricity is also about offering solutions on the basis of innovative and sustainable products and services that meet today’s and future customer needs. In that respect, we are using the opportunities offered by the convergence of digital technology with the energy world to develop value propositions that help our customers manage their energy more efficiently, more simply and with greater control, comfort and security, solutions such as the Energeasy suite of services, ranging from Energeasy Solar for photovoltaic applications to Energeasy Connect, which enables home automation.
This also fits with the Group’s sustainable development policy, which is based on five key pillars:
- developing innovative energy management solutions for our customers,
- improving the environmental performance of our operations,
- engaging and supporting our employees by guaranteeing good working conditions and motivating career opportunities,
- working closely with our suppliers and partners to promote responsible practices in the value chain,
- focusing our community involvement on helping people win the battle against fuel poverty.
Against this background, Rexel is providing support and expertise to drive greater access to energy efficiency for all through the work of the Rexel Foundation for a better energy future. To date, 21 projects have been launched with a positive impact on the lives of more than 100,000 people living across 13 countries.
As a signatory to the United Nations Global Compact since 2011, Rexel has also affirmed its commitment to the respect of human rights and labor standards, the protection of the environment, and the fight against corruption across the Group.
Staying the course
By focusing on our levers of
performance, we are determined
to deliver sustainable results
and create value for our stakeholders.
Armed with a unique understanding of the customer, Rexel aims at working closely with its stakeholders and partners to accelerate its development in strategic high-growth areas, strengthen market positions through a combination of organic and external growth, drive operational excellence and further enhance the portfolio.
By focusing on these levers of performance, we are determined to deliver sustainable results and create significant value for our shareholders.