Rexel. A World of Energy Press Kit

Transcription

1 Rexel A World of Energy 2013 Press Kit

2 Rexel A COMPANY ON THE MOVE p.3 A forward-looking plan ENERGY IN MOTION, AMBITIOUS OBJECTIVES FOR 2015 Profitable growth Active resources management Culture of cooperation Excellence in operations p.5 A partner of choice EXPERTISE AND EXCELLENCE TO CREATE VALUE FOR CUSTOMERS Supporting all projects, everywhere in the world Ensuring optimal accessibility through a multi-channel approach Innovating and customizing to achieve supply chain excellence Joining forces with suppliers p.7 Customized product packages and solutions ANTICIPATION AND INNOVATION TO DEVELOP THE SOLUTIONS OF TOMORROW Customized technical responses to the changing energy landscape Tailored solutions for each market p.12 A responsible, long-term commitment CORPORATE SOCIAL RESPONSIBILITY TO SUPPORT GROWTH Becoming a benchmark employer by making the difference Optimizing energy performance to lead by example The Rexel Foundation for a better energy future p.16

3 Rexel A company on the Move A global leader in the professional distribution of products and services for the energy world, Rexel plays a pivotal role in providing energy efficiency in the built environment (across residential, commercial and industrial buildings). Rexel provides the link between all the major stakeholders in the sector, from the utility companies and manufacturers to electrical contractors and, installers and the final consumer. Rexel supports hundreds of thousands of business customers in 37 countries, helping them to create value with solutions that enhance productivity and comfort. Over the past few years, Rexel has enhanced its operating excellence, doubled in size and strengthened its performance. A company that delivers results With sales of 13.4 billion, EBITA of 767 million and net income of 319 million in 2012, Rexel has developed its positions in mature markets while continuing to expand in high growth markets. A company with clear ambitions In 2012, Rexel presented Energy in Motion, its new forwardlooking company plan. This customer centric roadmap sets objectives for 2015 and clearly expresses Rexel s ambition to expand its leadership and enhance its local presence with strategic partners. The company is activating four strategic levers to accelerate its development: Profitable growth, both organically and through acquisitions. Active resource management. A culture of cooperation. Excellence in operations. Sales by region (in %) KEY FACTS & FIGURES Europe Asia-Pacific 56 North America Latin America Sales of 13.4 billion 31,000 employees 2,300 sales outlets Operations in 37 countries Estimated global market share close to 8% 40 banners 140 supply chain distribution structures 33%-owned by an investment fund consortium comprising Clayton Dubilier & Rice, Eurazeo and Bank of America Merrill Lynch Capital Partners. 3

4 A provider of customized solutions Rexel serves three main markets: Residential, with solutions to enhance energy efficiency, comfort, safety, home automation and more. Industrial, with expertise around the world to equip facilities and optimize their energy performance. Commercial, with solutions for shopping centers, sports facilities, hospitals, airports and other buildings. Rexel supplies the general and specialized contractors who equip these diverse customers, who are often focused on improving energy efficiency. A partner of choice 58% of Rexel s 31,000 employees are in direct contact with professional customers through the company s 2,300 sales outlets in 37 countries. These customers include: Electricians Service companies Manufacturers Retailers and DIY superstores A partner of choice for contractors, key accounts and manufacturers, Rexel has the unique ability to provide the same level of quality and attention to all customers, from local electricians to major contractors, to large industrial firms. Strong partnerships with SUPPLIERS Proximity to our CUSTOMERS A WIDE RANGE OF PRODUCTS ENERGY PROVIDERS Lighting Home Automation Industrial equipment Smart products SUPPLIERS Climate control Security and communication Cables Renewables Comprehensive SUPPLY CHAIN Offering (one-stop shop) ADVICE SERVICES (energy audits) BALANCED END-MARKETS 37 COUNTRIES LARGE INSTALLERS AND ELECTRICAL CONTRACTORS RESIDENTIAL Social and private housing COMMERCIAL Offices, airports and hospitals INDUSTRY Automotive, oil&gasand mining 4

5 Energy in Motion, Ambitious Objectives for 2015 With growth as its key focus, Rexel develops its strategy on the basis of an ambitious company plan called Energy in Motion. This chapter in Rexel s success story includes four strategic priorities that will create value for all stakeholders. 1. Profitable growth Objective accelerate profitable growth by: Promoting organic growth in three core areas: - High potential business categories related to energy efficiency. - Key accounts and international projects. - Vertical markets, notably oil & gas and mining. Together, these three areas are expected to achieve double-digit average annual growth, generate more than 1 billion in additional sales between 2011 and 2015, and account for 20% of total sales in Devoting around 500 million a year between 2012 and 2015 to an active acquisitions policy designed to: - Win new market share and generate synergy in key mature markets. - Strengthen Rexel s presence in high growth markets. - Broaden the company s portfolio of value-added services and presence in key vertical markets. 2. Active resource management Objective optimize the use of assets and allocation of resources to increase return on investment by: Unleashing team members potential, notably by developing specific skills, with experts specialized in business development, marketing and key account management and dedicated technicalcommercial teams. Improving asset productivity by carefully managing commercial assets, enhancing the organization and allocating more resources to the three levers of organic growth. Capitalizing on the value of the Rexel brand. Using the organization's knowledge and understanding of customer needs to develop competitive service offerings. The following values guide the way Rexel acts and interacts with stakeholders: Deliver the best customer experience. Join forces for success. Encourage to innovate. Engage people to develop their talents. Trust each other. Enjoy making a difference. 5

6 3. Culture of cooperation Objective leverage capabilities and synergies across the Group and foster value-creating partnerships with key suppliers and customers by: Encouraging teamwork. Developing quality relationships with customers. Managing strategic partnerships with key suppliers. Keeping commitments to shareholders. 4. Excellence in operations Objective enhance productivity and service levels to drive commercial effectiveness and supply chain performance. To achieve this objective, Rexel is rolling out an improved performance platform covering all aspects from supply chain optimization to e-commerce, which is expected to account for at least 15% of sales by REXEL S MISSION Rexel s mission is to support customers around the globe, wherever they are, to create value and help them run their businesses better by providing a broad range of sustainable and innovative products and services for automation, technical supply and energy management. FINANCIAL TARGETS FOR 2015 Organic growth (excluding the impact of copper) between 2011 and 2015 should outperform the weighted average GDP growth of the regions in which the Group operates by around two percentage points, thanks to a stepped-up demand for energy efficiency and the deployment of the Energy in Motion plan. Acquisitions should contribute between 3% and 5% of additional annual sales on average between 2011 and In 2015, adjusted EBITA margin should be above 6.5% Free cash flow after interest and tax should exceed 500 million in

7 Expertise and Excellence to Create Value for Customers Rexel owes its market leadership to its ability to offer the very best customer experience. A global company and local partner, Rexel knows how to develop high value-added solutions for all of its customers. Everyone at Rexel is committed to continuously improving customer service and to: Supporting all projects, everywhere in the world. Ensuring optimal accessibility through a multi-channel approach. Innovating and customizing to achieve supply chain excellence. Joining forces with supplier partners to achieve success. Rexel s unique business model and innovative methods make the difference. Local electricians and large global contractors alike find the right level of service at Rexel thanks to our local branch sales teams and international project managers. Our goal is to respond to our customers precise needs and support them with our innovative services. Pascal Martin, Group Senior Vice President, Corporate Strategy, Business Portfolio Management and New Business Development 1. Supporting all projects, everywhere in the world Thanks to its wide-reaching, interconnected network, Rexel can provide the same level of attention and quality of service to all of its customers. This can mean advising and supplying a multi-national retail chain that wants to save energy and renovate the lighting in its sales outlets, delivering a specific solution to an electrician within 24 hours at one of Rexel s 2,300 branches, supporting the deployment of a windfarm project in Canada or supplying electrical equipment to a mine in Chile at an altitude of 3,200 meters. We listen closely to our customers to constantly improve our service and identify the best solutions to help them create value. Jérémy de Brabant, Senior Vice President Customer Development 7

8 Multi-local presence With operations in 37 countries, Rexel is developing its network and local presence through an active strategy of acquisitions. This growth drive is allowing Rexel to expand or enhance its presence in strategic regions and provide even more comprehensive service to international customers. The company has made numerous acquisitions in Brazil, India and China since 2011 while continuing to intensify its presence in mature markets. In May 2012 for example, Rexel acquired Platt Electric Supply, a leading independent electrical equipment wholesaler in the western United States. In all, a total of 23 companies were acquired between 2010 and 2012, eleven of them in highgrowth countries and ten in mature markets. Together, they should lift annual sales by 3% to 5% on average between 2011 and A key partner for exceptional projects In addition to its network and sales outlets, Rexel has developed two levels of support for international projects, the first focuses on megaprojects and international contracts (Rexel International Projects Group, or IPG) and the second on key accounts (International Key Accounts, or IKA). Through Rexel IPG, created in 2009, Rexel is positioned as a key partner for large contractors on international projects. IPG supports the deployment of large projects in all locations with its strategic capabilities, which include upstream advice on specifications, and operational expertise (supply, storage and on-site teams to coordinate the project). Rexel works on megaprojects with major international construction and engineering firms such as Bechtel, Fluor, Technip and Shaw. A strategic partner for international customers Rexel offers end-to-end support through Rexel IKA for key accounts that need products and services for their projects and operations. The company leverages its network of local banners and sets up customized organizations wherever necessary for its customers, be they large contractors, manufacturers or equipment makers. 1 billion Additional sales expected from high-growth markets between 2011 and These countries should account for more than 10% of total sales in million Forecast sales through Rexel IPG and Rexel IKA in

9 In 2011, Rexel IPG was awarded the contract to supply Pascua Lama, one of the largest gold mine projects in Latin America. On site, Rexel team members handle purchasing, logistics and electrical equipment coordination with the service providers. The Pascua Lama mines where Rexel is supplying the worksite of one of Latin America's largest gold mines. 2. Ensuring optimal accessibility through a multi-channel approach For many years, Rexel has operated through a variety of strategically related sales channels, including branches, call centers, e-commerce platforms and mobile applications. By continuously anticipating customers' new sourcing habits and developing innovative channels, Rexel ensures maximum availability and accessibility for customers and makes the most of its suppliers' offerings. In short, everyone wins. Deployment of a global web platform In 2012, Rexel decided to converge the online purchasing systems of nine of its banners worldwide in a single web platform. The move produced tangible results, with an 8% increase in 2012 sales. At the same time, Rexel launched banner specific online stores accessible by smartphones in a number of countries, including France, Canada, Austria and Belgium. Creation of dedicated competence centers For specific needs, Rexel also uses dedicated competence centers in its commercial relationship with customers, notably in Germany. Implementation of electronic data interchange (EDI) systems These systems, used for key accounts, make it possible for Rexel s information systems to exchange data easily with customer systems, eliminating the need to send documents and input data. The numerous advantages include just-in-time inventory management, reliability, security and prevention of cost overruns. Rexel, Michelin s exclusive electrical equipment supplier In 2011, Michelin selected Rexel as its exclusive electrical equipment supplier. With more than 90 sites to be supplied in eight countries, Michelin is currently one of Rexel's largest customers. To serve this account efficiently and optimize the supply process, a large-scale logistics system has been deployed for end-to-end management, from order booking (using online catalogues via e-commerce sites) to delivery (with order tracking and key performance indicators). 9

10 40 online stores Rexel had 40 online stores in 2011, including three new sites in Spain, Italy and the UK and eight revamped sites in Canada, the Netherlands, Sweden and Austria. 28% Percentage of sales generated online in Austria in 2012, up 40% from We are committed to offering the best possible customer experience, whether in-store, on the phone or over the Internet. We want to deliver the same level of customer satisfaction no matter what the interface. Peter Hakanson, Group Senior Vice President, Operations 3. Innovating and customizing to achieve supply chain excellence With 2,300 sales outlets, customers located around the world and an average 45,000 SKUs (of which 35,000 available for next-day delivery), Rexel has not just one, but several supply chain organizations and solutions. The company s pride and strength is its ability to serve all customers in all locations worldwide, with the same level of quality. Thanks to three innovative, modular solutions and its supply chain excellence, Rexel is able to guarantee product availability and create value for customers. A supply chain that adapts to different regions and types of customers Rexel has deployed a supply architecture suited to the specific characteristics of its markets by leveraging a tested system based on achieving the right distance between customer and supplier locations worldwide. In order to be close enough to customers to serve them quickly, Rexel has determined that a distribution center should be able to cover requests within a 350km radius. The company has organized its supply chain with different configurations to reflect its diverse customer base, which ranges from large and small contractors to manufacturers needing maintenance for their operations, and to ensure optimal inventory management. This system includes, on the one hand, national or local logistics hubs (or large branches serving as logistics hubs) that receive items from suppliers and serve both customers and local branches, and, on the other, stand-alone branches that take deliveries from suppliers directly and respond to customer needs. Rexel has the ability to devise dedicated solutions for large projects by setting up temporary supply chain facilities on site. Innovative services for customers of all sizes Electricians and small contractors can drop by a branch early in the morning to pick up orders placed the day before. Large contractors can have their orders delivered to a branch or directly to a worksite. Manufacturers and commercial firms can be supplied on a regular basis to cover ongoing maintenance and repair needs. 10

11 50,000 SKUs 140 supply chain Number of SKUs available on distribution structures (of which 9 in France) and average for next-day delivery thanks 2,300 branches to Rexel s supply chain excellence in and quality logistics services. 37 countries By making agility its supply chain priority, Rexel optimizes flows among its 140 supply chain distribution structures (nine of which are in France) and 2,300 branches in 37 countries. Xavier Derycke, Group Supply Chain Director 4. Joining forces with suppliers Backed by a powerful culture of cooperation, Rexel has always forged strong partnerships with the different players in its industry. Working as a team in a spirit of mutually beneficial cooperation is the key to shared success. Building preferred supplier relationships With a purchasing volume of 10.7 billion in 2012, Rexel has built its supplier relations around a small number of strategic suppliers, chosen for their global reach or for their impressive development potential. Active management of the supplier portfolio at the Group level has gradually concentrated purchasing. In 2012, Rexel made more than 50% of its purchases from 25 key suppliers. Using performance indicators to continuously improve service To measure and continuously improve service quality, Rexel has initiated a performance indicator-based Service Level Agreement (SLA) program defined jointly with suppliers. The SLA covers such aspects as delivery rates, information technology, deadlines, out-of-stock rates, inventories and complaints. Joint improvement plans are deployed to address any changes in these indicators, with a focus on electronic data interchange (EDI), order placement and delivery processes and other key metrics. Participants in the program, which was launched in four countries and extended to the UK, Belgium and Finland in 2012, include Schneider Electric, Philips, Osram, Eaton and Hager. Sharing innovations to move forward together Given its daily contact with partners, Rexel also plays a major role in influencing changes in supplier portfolios and technologies, and in encouraging customers to embrace them. Rexel offers its customers training to help them obtain the most out of the products and solutions it distributes. Supplier relations are central to Rexel s business, to achieve the right alignment between supply and demand and to enlarge both their and our presence in promising geographic markets and market segments. Gonzalo Errejon, Director of Marketing & Supplier Relationship Development 11

12 Anticipation and Innovation to Develop the Solutions of Tomorrow With its Energy in Motion company plan, Rexel has clearly defined its strategic priorities. By anticipating economic and social trends, Rexel has developed with a focus on innovation and durability. Two guiding principles reflect the ambitions of the company: 1) innovate by offering forward-looking products and services in promising markets, and 2) sustainably adapt to the energy shift currently underway and to ongoing technological, social and regulatory changes. This is more than a challenge; it is the guarantee of lasting progress. Our customers businesses are becoming increasingly complex due to changing regulations governing energy use in buildings, the electrical/digital convergence and the emergence of alternative energy sources. Our goal is to support customers as they navigate these changes by continuously developing additional services to recommend, develop and deploy the solutions that will help them get ahead. Rudy Provoost, Chairman of the Management Board and CEO 1. Customized technical responses to the changing energy landscape In addition to setting out the company s priorities for 2015, the Energy in Motion plan expresses Rexel s identity, commitments and convictions. With energy efficiency and renewable energies at the center of its portfolio, Rexel intends to speed advances in electricity. The company s high value-added offerings and services are described below. Energy efficiency: tangible solutions for each situation Energy efficiency, a fundamental growth driver and strategic market for Rexel, accounted for sales of 450 million in This is expected to rise to 700 million in Within the framework of the Energy in Motion plan, the energy efficiency market covers products or services that generate a measurable direct or indirect reduction in energy use. Leading-edge services marketed by dedicated Rexel teams include: Energy audits. Consulting on projects to renovate installations and sources of consumption. Installation-related services. Training to familiarize contractors with eco-efficient equipment, as well as personalized white certificate training courses. Turnkey management of energy efficiency projects, from the initial audit to solution design and installation. Further out, Rexel hopes to offer even more comprehensive energy performance programs including after-sales service, maintenance, financing and insurance. Rexel offers a wide range of eco-efficient products, notably low-consumption lighting systems, measurement and control systems, monitoring systems and speed drives. 12

13 Complete expertise in low-voltage lighting Rexel markets an array of energy-saving lighting systems, including motion sensors, detectors, LEDs and compact fluorescent bulbs, as well as lighting-related services for construction and renovation projects. Innovative HVAC systems Rexel selects the most innovative products in terms of thermal efficiency and offers a broad range of eco-efficient heating and ventilation systems. These include control and programing systems, heat recovery ventilators, heat pumps and thermodynamic water heaters, just to name a few. Specific packages for industrial facilities Rexel also distributes high-efficiency speed drives that help reduce industrial facilities electrical consumption. Electric motors are used in variety of functions, including ventilation, pumping, mechanical drives and production line heating and cooling. They account for 70% of electricity use in industry. 80% to 90% LEDs use 80% to 90% less electricity and last 20 to 30 times longer than conventional bulbs. 65% of energy savings Heating represents 65% of the potential savings in homes, based on the average consumption of an older 100 sq.m home. Source: French Environment and Energy Management Agency (ADEME). 30% of energy savings Buildings account for 40% of global energy consumption. The potential for energy savings in residential and commercial buildings in Europe is estimated at 30%. COVENTRY GOLF CLUB Objective: reduce the Coventry Golf Club s energy consumption by 25% In the UK, Rexel worked with the Coventry Golf Club to renovate its lighting systems and install photovoltaic panels. Rexel s expertise, services and recommendations helped the club reduce its energy use by 25% and produce energy with its solar panels. 13

14 Renewable energies: quality first Renewable energies are a key growth driver for Rexel, which has been active in this segment for many years. As part of the Energy in Motion plan, products and services related to renewable energies are expected to generate 100 million in additional sales between 2011 and Rexel s offering targets two core areas in renewable energies: Photovoltaics With a focus on the residential and commercial markets, Rexel provides customers with a range of high-quality components, including solar panels and rooftop installation systems, to build their own solutions. It also designs ready-to-install customized kits. Wind power Building from a heavy initial presence in the United States, Rexel is strongly expanding its wind operations in Europe, Canada and China. The Company leverages its technical and logistical expertise to provide wind turbine manufacturers with the electrical and mechanical components they need at their production sites. Rexel also supplies equipment to connect wind turbines to the grid. Control and automation systems: making buildings smarter and safer Building automation is an extensive market for Rexel, with sales led by Europe, followed by the United States and Asia-Pacific. Building automation systems, smart control applications and energy management are the company's priority growth avenues. Rexel intends to triple its sales in this area between 2011 and 2015 as part of its Energy in Motion plan, with a longterm target of 200 million. To distribute the most effective solutions, the Group is involved in ongoing initiatives to: Strengthen supplier partnerships, so it can deliver the market's most advanced solutions for home automation (home automation products; interoperability solutions; mix of thermal electrical and electronic functions; motion sensors) and building safety and security (access control, security systems, fire alarms). Enhance its ability to support customers in selecting and implementing integrated control and management solutions for industrial, residential and commercial buildings. Rexel is a member of KNX The KNX Association plays a leading role in the drive to develop a global standard for home and building control. As the first distributor to join KNX, Rexel is committed to promoting advances in buildings and smart networks. This strategic approach is perfectly aligned with the Energy in Motion plan, since building automation and energy management systems are key growth levers for Rexel. Now a promoter of the KNX standard, which enables products from different brands to communicate and work together, Rexel is in a position to serve customers as a solutions integrator. 14

15 2. Tailored solutions for each market Rexel has developed a specialized, vertical approach for industries whose solution, supply or service needs are exceptionally critical or complex. Examples include the mining and oil industries and retail store chains. Customized offerings for win-win relationships This approach is based on specific product offerings, a dedicated organization with sales and technical teams that can be seconded to the customer's site when needed, and special customer services such as inventory management, on-site teams and technical training. For Rexel, with its recognized expertise in the oil & gas and mining industries, these vertical markets represent an opportunity to considerably enhance its presence in the value chain by offering dedicated products and services. Not only does this strengthen customer loyalty, but it also increases sales and profitability. Meeting the specific constraints of retailers With its local network, specialized teams and packaged offerings, Rexel has what it takes to meet the specific needs of retail banners. A number of large apparel retail chains in Asia, for example, have turned to Rexel for the renovation of their lighting and air conditioning systems. Working with Rexel offers two major advantages: The company s global presence makes it possible to install the same products and services in all chain outlets, ensuring the same customer experience everywhere. Rexel s eco-efficient solutions deliver significant energy efficiency gains. 680 million Sales expected from vertical market segments by Hotel Peninsula - France Located in Paris s leafy 16 th arrondissement, this Hong Kong and Shanghai Hotel establishment aims to become one of the French capital's top luxury hotels. Backed by its expertise in large project management, Rexel is involved in supplying the project and providing logistics for optimum worksite productivity. 15

16 Corporate Social Responsibility to Support Growth At Rexel, corporate social responsibility (CSR) is a key business fundamental. As a company with worldwide operations and in direct contact with its environment, Rexel is committed to developing a model of profitable growth while working to reduce climate change, promote employees personal development and support meaningful community outreach. Rexel's CSR approach is organized around four core commitments: Accelerate the distribution of electrical solutions and help bring energy advances to all. Take active steps to promote employees personal development. Decrease the company s environmental footprint. Make a difference in the communities the company operates in. GLOBAL COMPACT The Global Compact: Rexel contributes to a more responsible global economy. As a Global Compact signatory, Rexel embraces and promotes ten key principles in the areas of human rights, labor, environment and anti-corruption. 1. Becoming a benchmark employer by making the difference Rexel s 31,000 employees are a source of both strength and pride. To create a close-knit community and share a common vision for the future, Rexel has taken initiatives to: Measure employee satisfaction through surveys Designed as a management tool, the Satisfaxion in-house opinion survey is conducted among Rexel employees on a regular basis. The survey measures employee perceptions in seven areas: respect, well-being, engagement, compensation, management, communication and strategy. In 2011, respect for individuals garnered the highest number of positive responses, with 86% of those surveyed saying they were treated with respect. The company uses the survey results to implement action plans on a country-by-country basis. Develop talent with appropriate training for each profile In 2012, the number of hours of training rose to 271,750 from 214,048 the year before. Promoting skills is a key focus of Rexel's social commitment. In response to rapid changes in professions, markets and technologies, training is crucial for acquiring new expertise. Employees are offered training in areas that are aligned with their current jobs, skills, career growth outlook, local requirements and personal and collective objectives. Give employees a stake in the company s results though employee share ownership By launching three employee share purchase plans under preferential terms in 2007, 2010 and 2012, Rexel has encouraged employees to take a stake in the company's performance and increase their interest in the company s capital. The Opportunity12 plan in 2012 was open to nearly 90% of Rexel s employees in 16 countries. 16

17 2. Optimizing energy performance to lead by example For Rexel, leading by example is more than an ambition it is a daily commitment to being a clean distributor while consuming less and better. The company s clear challenges are to reduce its environmental footprint by leveraging innovative energy efficiency solutions and to develop a consistent environmental approach by defining targets, measuring progress and disclosing reliable, tangible results. By walking the talk, Rexel offers all of its stakeholders a comprehensive vision of the challenges and most effective solutions to be deployed on an everyday basis. A measurable, sustainable commitment Since 2006, Rexel has taken a proactive approach to measuring its impacts by deploying a consolidated environmental reporting process at the Group level. In anticipation of the regulatory requirements of Article 225 of France s Grenelle 2 Act, this reporting is designed to cover the entire scope of the company s consolidation. With the publication of its first carbon footprint analysis in 2006 covering six key countries and the consolidation of its annual reporting, Rexel developed real expertise in environmental management. - 18% Reduction in greenhouse gas emissions from electricity consumption between 2012 and 2011 (scope 2) - 22% Reduction in greenhouse gas emissions from product shipping by the Rexel fleet between 2010 and 2011 Reduced carbon emissions from shipping As part of the drive to decrease its environmental footprint, Rexel has renewed 25% of its European fleet, which is the largest in the Group (50% of the fleet had been upgraded in 2011). Clearly, there are several advantages to the development of e-commerce and e- procurement, characterized by EDI, paperless invoices and short contracts, and of moves to pool shipping resources. These include improved service quality through more reliable flows and a smaller environmental impact from trucks, which carry fuller loads. Recycling: extending good practices to customers In compliance with the European Waste Electrical and Electronic Equipment (WEEE) directive, Rexel recovers electrical equipment waste. As part of this commitment, the company provides customers with a selective sorting system in its branches, notably with special containers for lighting products. A number of banners even offer to collect waste directly from customer sites. As a result, Rexel collected nearly 13,270 metric tons of recovered waste through selective sorting in its branches in 2011, for a Group-wide recovery rate of 65% versus 59% in metric tons Volume of batteries collected by Rexel in

18 3. The Rexel Foundation: a key step towards a deeper commitment Since the company s creation, Rexel has participated in programs that reflect its sense of responsibility. In 2013, it is taking a new step by creating the Rexel Foundation for a better energy future under the aegis of the Fondation de France. This move will provide a new scope for the company's initiatives while allowing Rexel to continue its work with local communities and involve a larger number of employees in outreach projects. Access to sustainable energy for all a three-pronged challenge We are currently facing three major energy challenges: the increasing scarcity of energy resources, rising energy prices and the threat to our energy security. Today, 8 million people in France and 100 million people in Europe are in fuel poverty and over 1.3 billion people throughout the world do not have access to electricity. Two factors are exacerbating these issues: the world s rising population coupled with mass urbanization that has seen the demand for energy increase exponentially, and the continued waste of energy in our manufacturing and transport and current practices in the consumption of energy resources. Energy efficiency - an opportunity to develop solutions which will allow us to consume and manage our energy more efficiently Faced with these challenges, industry experts, businesses and leading policymakers agree that energy efficiency is a turnkey solution and are implementing targeted strategies. These challenges are being addressed on different levels: Environmental: the energy savings made from improved energy efficiency can help to preserve our natural resources and combat climate change by reducing carbon emissions. Economic: improved energy efficiency allows consumers to save money on their energy bills and the industry to drive profitability through a more competitive business model Social: improved energy efficiency provides greater comfort and a better quality of life. It can also help fight fuel poverty by improving access to energy for the most disadvantaged populations in society. By improving access to energy efficiency for all, we can transform our lives, our economies and beat fuel poverty. Through our commitment and in partnership with our employees, our clients, our suppliers and with society at large, the Rexel Foundation can become a catalyst for progress in energy efficiency. Pascale Giet, Vice-Chairman of the Rexel Foundation for a better energy future, Senior Vice President, Communication and Sustainable Development, Rexel Group 18

19 Through its expertise and proximity to its customers and partners both on an international and local level, Rexel believes that: Energy progress is a value creator, not just for the economy, but for society at large because energy provides the foundation for everything we do it powers heating, transport, communications, industry. The energy efficiency value chain is an ecosystem where no one player is master and in which the multiplier effect can make a real difference, this is why we need a global vision to meet the challenges and a partnership approach to accelerate the energy transition. Backed by the courage of its convictions and the support of the Fondation de France, the launch of the Rexel Foundation for a better energy future is testament to Rexel s social and environmental commitment to the communities in which it operates. With this commitment, Rexel is setting a strategic challenge for all its stakeholders: to improve access to energy efficiency for all. Four guiding principles The Foundation follows in the footsteps of the Group's past and present commitments with four guiding principles that provide direction and frame all of its projects: Principle 1: Socially innovative Projects should drive social progress, improve quality of life and provide improved access to sustainable sources of energy for the most disadvantaged in society. Principle 2: Environmentally friendly and providing energy savings Projects should have a significant positive environmental impact and provide energy savings to end-users: increasing access to energy efficiency for all with cost effective energy efficiency solutions. Principle 3: Collaborative and partnership driven Projects should be based on an open approach to collaboration with all stakeholders to improve understanding and raise awareness among key players in the industry as well as among the general public. Principle 4: Repeatable and Scalable Projects should be both repeatable and scalable enabling the large scale adoption of energy efficiency. 19

20 Three areas of involvement The Rexel Foundation s mission is to improve access to energy efficiency for all and is based on three key pillars: Knowledge Improve understanding and raise awareness of energy efficiency Support charitable community-based projects Community Projects Research Encourage innovation through research and educational projects Improve understanding and raise awareness of energy efficiency Demystify and promote energy efficiency through the publication of studies and the organization of workshops with the energy community and end-users. Encourage innovation through research and educational projects Support laboratory research programs by awarding grants to young researchers. Research projects can be focused on affecting behavioral change in energy consumption, on low carbon microgeneration based on small scale renewable energy and storage solutions or on improving the performance of energy efficiency products and technology in home automation, smart controls, heating ventilation and insulation. These programs will target students and researchers at the start of the career ladder in Europe, North America, Latin America and the Asia-Pacific regions where Rexel's local presence means it can oversee the projects. Support charitable community-based projects Form partnerships with NGOs, social entrepreneurs and other foundations, with a priority on the countries in which Rexel operates. The Rexel Foundation for a better energy future will support sustainable actions that help to affect behavioral change, upgrade the living conditions of the most disadvantaged populations in society and provide training for entrepreneurs specializing in energy efficiency. The beneficiaries will be disadvantaged populations from the OECD countries as well as from developing countries. 20