REXEL :Q1 2014 RESULTS (unaudited)

REXEL :Q1 2014 RESULTS (unaudited)  PARIS, April 30, 2014 (GLOBE NEWSWIRE) --                          RETURN TO ORGANIC SALES GROWTH                             RESILIENT PROFITABILITY                         FULL-YEAR 2014 TARGETS CONFIRMED  RETURN TO  ORGANIC  SALES GROWTH:  +0.4%  ON  A CONSTANT  AND  SAME-DAY  BASIS  (including negative copper effect of 1.0 percentage point)    oReturn to growth in Europe (+1.6%), driven by Northern and Central     countries; French operations remained resilient (-0.4%)   oAsia-Pacific up 3.8%, driven by China, and Latin America up 3.0%   oNorth America (-2.7%) impacted by weather conditions  RESILIENT PROFITABILITY WITH ADJUSTED EBITA MARGIN OF 4.5%    oDown 10bps year-on-year, mainly impacted by weather conditions in North     America   oSupported by ongoing cost control  FULL-YEAR 2014 TARGETS CONFIRMED  Q1 2014 key figures^1                           YoY change Sales                                  €3,067.3m  On a reported basis                             -2.7% On a constant and actual-day basis              +0.4% On a constant and same-day basis                +0.4% Adjusted EBITA                         €136.9m   -2.4% As a percentage of sales               4.5%       Change in bps as a % of sales          -10bps     Reported EBITA                         €134.2m   -6.2% Operating income                       €111.3m   -13.2% Net income                             €43.2m    +9.3% Free cash flow before interest and tax €(82.7)m  vs. €(4.2)m Net debt at end of period              €2,405.3m -12.0%  ^1 See definition in the Glossary section of this document  Rudy PROVOOST, Chairman of the Management Board and CEO, said:  "In the  first quarter,  Rexel's  organic sales  growth returned  to  positive  territory, mainly driven by a number  of countries in Europe, which more  than  offset the adverse effect of unfavorable weather conditions in North  America.  As a result  of this negative  impact and  gross margin pressure  in some  key  markets, Rexel's overall profitability decreased  slightly in the quarter  but  remains resilient  thanks to  tight cost  control and  disciplined  execution.  Considering our first-quarter performance, we confirm our targets for the year as well as our medium-term ambitions.  We remain committed to our operational action plans and our strategy  focusing  on high-growth initiatives and value-added customer propositions."  FINANCIAL REVIEW FOR THE PERIOD ENDED MARCH 31, 2014    oFinancial statements as of March 31, 2014 were authorized for issue by the     Management Board on April 23, 2014 and reviewed by the Supervisory Board     meeting held on April 29, 2014.   oFinancial statements as of March 31, 2013 have been restated for changes     in accounting policies, following the adoption of IFRIC Interpretation 21     "levies"; this restatement represented a €5.7 million negative impact on     operating income (Q1 2013 operating income stood at €133.9 million as     reported on May 2, 2013 and stands at €128.3 million after restatement).     This impact results from the timing difference in the liability     recognition of certain levies and reverses over the three following     quarters to fade over the full fiscal year.   oThe following terms: EBITA, Adjusted EBITA, EBITDA, Free Cash Flow and Net     Debt are defined in the Glossary section of this document.   oUnless otherwise stated, all comments are on a constant and adjusted basis     and, for sales, at same number of working days.  SALES  In Q1 2014, Rexel posted organic sales  growth of 0.4%, thanks to a return  to  growth in Europe  combined with a  strong performance in  China and despite  a  significant negative impact from weather conditions in North America.  In Q1 2014, Rexel posted sales of €3,067.3 million, up 0.4% on a constant  and  same-day basis and down 2.7% on a reported basis.  Excluding the 1.0%  negative impact due  to the change  in copper-based  cable  prices, sales  were  up 1.4%  on  a constant  and  same-day basis,  a  further  sequential  improvement  after   declines  of  3.1%,   2.3%,  2.0%  and   0.1%  respectively in each of the quarters of 2013.  The 2.7% drop in sales on a reported basis reflected:    oA negative currency effect of €112.3 million (mainly due to the     depreciation of the US, Canadian and Australian dollars against the euro),   oA positive effect of €12.6 million from last year's acquisitions (Lenn     International in Singapore and Quality Trading in Thailand).  Europe (57% of Group sales): +1.6% on a constant and same-day basis  In the first quarter, sales in Europe increased by 1.6% both on a reported and on a constant and same-day basis.    oIn France, sales remained very resilient and continued to outperform the     market. They were down only 0.4% year-on-year. This solid performance in     the quarter was driven by large projects and lighting sales that helped to     mitigate the difficult market conditions.   oIn the UK, sales returned to growth, posting an 0.8% increase on a     constant and same-day basis (after a 1.9% drop in Q4), mainly driven by     photovoltaic sales. Excluding the impact of branch restructuring, constant     and same-day sales increased by 3.2% year-on-year.   oIn Germany, sales returned to growth with an increase of 1.2%, (after a     3.9% drop in Q4), reflecting early signs of improvement.   oIn Scandinavia, sales grew by 6.7%, reflecting solid growth in the three     countries, with Sweden up 7.8% and Norway and Finland up 5.8%.   oIn Belgium, sales returned to growth, posting a 7.5% increase (after a     6.2% drop in Q4), mainly driven by cable sales.   oIn the Netherlands, sales were broadly stable (-0.2%), confirming the     first signs of stabilization.   oBoth Switzerland (+3.6%) and Austria (+3.0%) posted growth in sales and     improved performance vs. Q4 (+0.9% and -1.3% respectively).   oSouthern European countries (-5.5%) continued to be impacted by tough     market conditions in Spain and Italy, where sales dropped respectively by     9.9% and 4.8%. The Spanish performance reflected challenging comparables     as Q1 2013 (+8.5%) included an opportunistic boost from export activity.  North America (32% of Group sales): -2.7% on a constant and same-day basis  In the first  quarter, sales in  North America  were down 9.1%  on a  reported  basis including a  significant negative  currency effect of  €62.7m (from  the  American and  the  Canadian dollars  against  the euro)  and  down 2.7%  on  a  constant and same-day basis. Both the US and Canada were impacted by extremely severe weather conditions.    oIn the US (c. 75% of the region's sales), sales decreased by 1.9% but     increased by 1.7% excluding the impact of weather conditions, reflecting     sustained activity in the residential and industrial end-markets.   oIn Canada (c. 25% of the region's sales), sales were down 5.1% and down     0.4% excluding the impact of weather conditions, reflecting lower project     activity.  Asia-Pacific (9% of Group sales): +3.8% on a constant and same-day basis  In the  first quarter,  sales in  Asia-Pacific were  down 2.1%  on a  reported  basis, including  a  significant negative  effect  of €30.0m  from  currencies  (primarily the Australian dollar  against the euro) and  a positive effect  of  €12.6m from the  acquisition of  Lenn International in  Singapore and  Quality  Trading in Thailand. On a constant and same-day basis, sales were up 3.8%.    oIn China (c. 30% of the region's sales), sales were up 25.9%, driven by     strong activity in the industrial automation segment, the launch of a     significant lighting project and a favorable comparison basis (Q1 2013 was     -5.9%).   oIn South-East Asia (c. 10% of the region's sales), sales dropped slightly     by 2.8%.   oIn Australia (c. 50% of the region's sales), sales were down 7.3%,     reflecting persistently challenging macroeconomic conditions. Excluding     the impact of branch closures, sales were down 5.6%, a sequential     improvement over Q4 2013 (-7.2%).   oIn New Zealand (c. 10% of the region's sales), sales were down 3.3%, also     representing a sequential improvement over Q4 2013 (-4.8%).  Latin America (2% of Group sales): +3.0% on a constant and same-day basis  In the first quarter,  sales in Latin  America were down  14.6% on a  reported  basis, including a negative currency effect of €13.1m (mainly attributable  to  the depreciation of the Brazilian real and Chilean peso against the euro). On a  constant  and  same-day  basis,  sales  increased  by  3.0%,  reflecting  contrasted performances:    oIn Brazil (c. 60% of the region's sales), sales were down 2.7%, confirming     the slowdown in the market but improving throughout the quarter.   oIn Chile (c. 30% of the region's sales), sales were up 14.7% in the     quarter. This compares to declines of 20.3% in Q1 2013, which were     strongly impacted by the slowdown in sales to the mining industry.   oIn Peru (c. 10% of the region's sales), sales increased by 2.7%.  PROFITABILITY  Resilient profitability thanks to strict cost control  In the quarter,  adjusted EBITA  margin stood at  4.5%, down  10 basis  points  year-on-year (vs.  4.6 %  in  Q1 2013).  This  resilient margin  was  achieved  despite a  20 basis  point decline  in gross  margin and  thanks to  continued  strict cost control, as distribution and administrative expenses grew by  only  0.2% in the quarter,  while sales grew  by 0.4% on  a constant and  actual-day  basis.    oIn Europe, adjusted EBITA margin improved by 20 basis points. This is the     net result of a decline in gross margin, mainly due to unfavorable project     mix and increased competitive pressure, which was more than offset by a     significant reduction in distribution and administrative expenses,     reflecting strict cost control and benefits from last year's restructuring     measures.   oIn North America, adjusted EBITA margin dropped by 100 basis points,     mostly impacted by bad weather conditions. Excluding this impact, the drop     was contained to 40 basis points. It reflected a rise in gross margin,     more than offset by increased distribution and administrative expenses,     largely related to unfavorable channel mix (warehouse vs. direct sales)     and impact of the network optimization process currently underway.   oIn Asia-Pacific, adjusted EBITA margin dropped by 20 basis points as the     decline in gross margin, mainly due to unfavorable geographic mix, was not     fully offset by a reduction in distribution and administrative expenses.   oIn Latin America, adjusted EBITA margin was negative in the quarter,     impacted by a strong decline in gross margin, mainly attributable to a     negative base effect as Q1 2013 benefited from a one-off tax refund, while     distribution and administrative expenses were reduced year-on-year.  Weather conditions in North America weighed for €7.0 million on adjusted EBITA in the quarter (net impact of  lower sales and increased operating  expenses).  Excluding this impact, the adjusted EBITA margin would have been 4.6%,  stable  year-on-year.  Reported EBITA stood at €134.2 million, down 6.2% year-on-year.  NET INCOME  Reported net income up 9.3% to €43.2m  Operating income stood at €111.3 million, down 13.2% year-on-year.    oAmortization of intangibles resulting from purchase price allocation     amounted to €4.1 million (vs. €4.7 million in Q1 2013).   oOther income and expenses amounted to a net charge of €18.7 million (vs. a     net charge of €10.2 million in Q1 2013). They included €13.7 million of     restructuring costs (vs. €9.4 million in Q1 2013).  Net financial expenses  amounted to €46.3  million in the  quarter (vs.  €68.9  million in Q1 2013 that included a  one-off cost of €23.5 million relating  to  refinancing operations).  The  average  effective interest  rate  was  reduced  year-on-year: it stood at 5.1% on gross debt (vs. 6.0% in Q1 2013) and at 6.3% on net debt (vs. 6.4% in Q1 2013).  Income tax represented a charge of  €21.9 million. The effective tax rate  was  33.7% (vs. 32.2% in Q1 2013). This expected rise mainly reflects increased tax pressure in France.  Net income was up 9.3%, at €43.2 million (vs. €39.5 million in Q1 2013).  Recurring net income amounted to €58.6 million, down 7.0% year-on-year, mainly reflecting the drop in EBITA (see appendix 2).  NET DEBT  Net debt of €2.4bn, down 12.0% year-on-year  In the quarter, free cash flow before interest and taxwas an outflow of  €82.7  million (vs.  an  outflow of  €4.2  million in  Q1  2013, which  included  the  disposal of the Runcorn warehouse in the UK). This net outflow included:    oGross capital expenditure of €18.2 million (vs. €20.0 million in Q1 2013),   oAn outflow of €192.6 million from change in working capital (vs. an     outflow of €144.5 million in Q1 2013), mainly impacted by receivables.  At March 31, 2014, net debt  stood at €2,405.3 million, down 12%  year-on-year  (vs. 2,734.3 million at March 31, 2013).  It took into account:    o€38.0 million of net interest paid,   o€27.6 million of income tax paid,   o€5.1 million of favorable currency effect.  ACQUISITION  Rexel strengthens its position in Peru with the acquisition of AMP Ingenieros  At the end  of March,  Rexel acquired  the Peruvian  company, AMP  Ingenieros,  based in Arequipa, the second-largest and most industrialized city in Peru. Founded in  1991, this  company distributes  international branded  electrical  supplies, panel building and  engineering services with  a strong presence  in  the industrial end-market and  a solid expertise  in serving mining  companies  through specialized contractors. This acquisition  strengthens Rexel's  presence in  the fast-growing  Peruvian  market, where  Rexel generated  sales  of €24  million  in 2013  (through  the  acquisitions of V&F Tecnologia and Dirome in 2012), and expands its  footprint  in the South of the country. It will also increase Rexel's penetration of  the  industrial end-market and mining segment.  OUTLOOK  Rexel confirms that it aims at delivering in 2014:    oSales in a range of around 1% below to around 2% above 2013 sales, on a     constant and same-day basis,   oAdjusted EBITA margin in a range of around 10bps below to around 20bps     above the 2013 margin, consistent with targeted annual operating     efficiency ratio of a change of around 10bps in adjusted EBITA margin for     each percentage point change in sales,   oSolid free cash-flow, consistent with targeted conversion rate of at least     75% of EBITDA, before interest and tax, and of around 40% of EBITDA, after     interest and tax.  CALENDAR  May 22, 2014 Shareholders' Meeting in Paris July 30, 2014 Second-quarter and Half-year results October 29, 2014 Third-quarter and 9-month results  FINANCIAL INFORMATION  The financial report for the period ended  March 31, 2014 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 first-quarter 2014 results is also available on the Group's website.  ABOUT REXEL GROUP  Rexel, a global leader in the professional distribution of products and services for the energy world, addresses three main markets - industrial, commercial and residential. The Group supports customers around the globe, wherever they are, to create value and run their businesses better. With a network of some 2,300 branches in 38 countries, and c. 30,000 employees, Rexel's sales were €13 billion in 2013. 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, STOXX600. Rexel is also part of the following SRI indices: DJSI Europe, FTSE4Good Europe & Global, EURO STOXX Sustainability, Euronext Vigeo Europe 120 and ESI Excellence Europe. Finally, Rexel is included on the Ethibel EXCELLENCE Investment Registers in recognition of its performance in corporate social responsibility (CSR). For more information, visit Rexel's web site at www.rexel.com  CONTACTS  FINANCIAL ANALYSTS / INVESTORS  Marc MAILLET     +33 1 42 85 76 12 marc.maillet@rexel.com Florence MEILHAC +33 1 42 85 57 61 florence.meilhac@rexel.com  PRESS  Pénélope LINAGE        +33 1 42 85 76 28 penelope.linage@rexel.com Brunswick: Thomas KAMM +33 1 53 96 83 92 tkamm@brunswickgroup.com  GLOSSARY  REPORTED EBITA (Earnings Before Interest,  Taxes and Amortization) is  defined  as operating income before amortization  of intangible assets recognized  upon  purchase price allocation and before other income and other expenses.  ADJUSTED EBITA is defined as  EBITA excluding the estimated non-recurring  net  impact from changes in copper-based cable prices.  EBITDA (Earnings  Before Interest,  Taxes, Depreciation  and Amortization)  is  defined as operating  income before depreciation  and amortization and  before  other income and other expenses.  RECURRING NET  INCOME is  defined  as net  income adjusted  for  non-recurring  copper effect, other  expenses and income,  non-recurring financial  expenses,  net of tax effect associated with the above items.  FREE CASH FLOW is defined as cash from operating activities minus net  capital  expenditure.  NET DEBT is defined as financial debt less cash and cash equivalents.  APPENDICES           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 €1.1 million in Q1 2013 and a loss of €2.7 million in Q1 2014.  GROUP                                                                                                                                     Constant and adjusted basis (€m)       Q1 2013 Q1 2014 Change Sales                                            3,053.6 3,067.3 +0.4%           on a constant basis and same days                    +0.4% Gross profit                                      768.9   766.8   -0.3%           as a % of sales                        25.2%   25.0%   -20bps Distribution & adm. expenses (incl. depreciation) (628.7) (630.0) +0.2% EBITA                                            140.2   136.9   -2.4%           as a % of sales                        4.6%    4.5%    -10bps Headcount (end of period)                         30,561  29,883  -2.2%  EUROPE                                                                                                                                    Constant and adjusted basis (€m)       Q1 2013 Q1 2014 Change Sales                                            1,724.6 1,759.4 +2.0%           on a constant basis and same days                    +1.6% o/w        France                                 613.5   611.3   -0.4%           on a constant basis and same days                    -0.4%           United Kingdom                         245.3   251.2   +2.4%           on a constant basis and same days                    +0.8%           Germany                                193.8   197.7   +2.0%           on a constant basis and same days                    +1.2%           Scandinavia                            197.9   213.5   +7.9%           on a constant basis and same days                    +6.7% Gross      profit                                 479.1   483.6   +0.9%           as a % of sales                        27.8%   27.5%   -30bps Distribution & adm. expenses (incl. depreciation) (380.0) (379.9) -0.0% EBITA                                            99.0    103.6   +4.6%           as a % of sales                        5.7%    5.9%    +20bps Headcount (end of period)                         17,054  16,694  -2.1%  NORTH AMERICA                                                                                                                             Constant and adjusted basis (€m)       Q1 2013 Q1 2014 Change Sales                                            1,006.9 972.0   -3.5%           on a constant basis and same days                    -2.7% o/w        United States                          745.9   720.4   -3.4%           on a constant basis and same days                    -1.9%           Canada                                 261.0   251.6   -3.6%           on a constant basis and same days                    -5.1% Gross      profit                                221.9   215.4   -2.9% as a % of sales                                   22.0%   22.2%   +20bps Distribution & adm. expenses (incl. depreciation) (177.7) (181.9) +2.3% EBITA                                            44.1    33.5    -24.2%           as a % of sales                        4.4%    3.4%    -100bps Headcount (end of period)                         8,584   8,527   -0.7%  ASIA-PACIFIC                                                                                                                              Constant and adjusted basis (€m)       Q1 2013 Q1 2014 Change Sales                                            261.5   272.9   +4.4%           on a constant basis and same days                    +3.8% o/w        China                                  69.1    85.6    +23.9%           on a constant basis and same days                    +25.9%           Australia                              130.9   123.4   -5.7%           on a constant basis and same days                    -7.3%           New Zealand                            28.4    27.9    -1.7%           on a constant basis and same days                    -3.3% Gross      profit                                 53.0    53.9    +1.7%           as a % of sales                        20.3%   19.7%   -60bps Distribution & adm. expenses (incl. depreciation) (45.8)  (46.8)  +2.4% EBITA                                            7.2     7.0     -2.3%           as a % of sales                        2.8%    2.6%    -20bps Headcount (end of period)                         2,931   2,864   -2.3%  LATIN AMERICA                                                                                                                             Constant and adjusted basis (€m)       Q1 2013 Q1 2014 Change Sales                                            60.6    62.9    +3.8%           on a constant basis and same days                    +3.0% o/w        Brazil                                 37.3    36.3    -2.7%           on a constant basis and same days                    -2.7%           Chile                                  18.0    21.0    +16.6%           on a constant basis and same days                    +14.7%           Peru                                   5.3     5.6     +6.0%           on a constant basis and same days                    +2.7% Gross      profit                                 15.0    13.9    -6.9%           as a % of sales                        24.7%   22.1%   -260bps Distribution & adm. expenses (incl. depreciation) (14.8)  (14.4)  -3.0% EBITA                                            0.2     (0.4)   n.a.           as a % of sales                        0.3%    -0.7%   -100bps Headcount (end of period)                         1,776   1,564   -11.9%                   Appendix 2: Extract of Financial Statements  Consolidated Income Statement                     Reported basis (€m)                 Q1 2013 Q1 2014 Change Sales                                                   3,153.9 3,067.3 -2.7% Gross profit                                            787.1   764.1   -2.9%                    as a % of sales                     25.0%   24.9%    Distribution & adm. expenses (excl. depreciation)       (624.4) (610.1) -2.3% EBITDA                                                  162.6   154.0   -5.3%                    as a % of sales                     5.2%    5.0%     Depreciation                                            (19.5)  (19.8)   EBITA                                                   143.1   134.2   -6.2%                    as a % of sales                     4.5%    4.4%     Amort. of intang. resulting from purchase price         (4.7)   (4.1)    allocation Operating income bef. other inc. and exp.               138.5   130.1   -6.0%                    as a % of sales                     4.4%    4.2%     Other income and expenses                               (10.2)  (18.7)   Operating income                                        128.3   111.3   -13.2% Financial expenses (net)                                (68.9)  (46.3)   Share of profit (loss) in associates                    (0.7)   0.0      Net income (loss) before income tax                     58.6    65.1    +11.0% Income tax                                              (19.1)  (21.9)   Net income (loss)                                       39.5    43.2    +9.3% Net income (loss) attr. to non-controlling interests    (0.2)   0.1      Net income (loss) attr. to equity holders of the parent 39.7    43.1    +8.6%  Bridge Between Operating Income Before Other Income And Other Expenses And Adjusted EBITA  in €m                                                   Q1 2013 Q1 2014 Operating income before other income and other expenses 144.1   130.1 Adoption of IFRIC 21                                    -5.7     Change in scope effects                                 0.4      Foreign exchange effects                                -4.4     Non-recurring effect related to copper                  1.1     2.7 Amortization of intangibles resulting from PPA          4.7     4.1 Adjusted EBITA on a constant basis                      140.2   136.9  Recurring Net Income  In millions of euros        Q1 2013 Q1 2014 Change Reported net income         39.5    43.2    +9.3% Non-recurring copper effect 1.2     2.7      Other expense & income      10.2    18.7     Financial expense           21.3    0.0      Tax expense                 -9.2    -5.9     Recurring net income        63.0    58.6    -7.0%  Sales And Profitability By Segment   Reported basis (€m) Q1 2013 Q1 2014 Change Sales                 3,153.9 3,067.3 -2.7%  Europe              1,731.8 1,759.4 +1.6%  North America       1,069.6 972.0   -9.1%  Asia-Pacific        278.8   272.9   -2.1%  Latin America       73.7    62.9    -14.6% Gross profit          787.1   764.1   -2.9%  Europe              476.2   480.9   +1.0%  North America       234.4   215.2   -8.2%  Asia-Pacific        58.3    53.9    -7.6%  Latin America       18.2    14.0    -23.0% EBITA                 143.1   134.2   -6.2%  Europe              98.4    101.0   +2.6%  North America       47.1    33.4    -29.0%  Asia-Pacific        7.9     7.0     -10.7%  Latin America       0.1     (0.4)   n.a.  Consolidated Balance Sheet  Assets (€m)                               December 31, 2013 March 31, 2014 Goodwill                                  4,111.2           4,123.3 Intangible assets                         1,038.3           1,037.6 Property, plant & equipment               278.1             277.9 Long-term investments^(1)                 51.7              37.6 Deferred tax assets                       161.6             153.8 Total non-current assets                  5,640.9           5,630.2 Inventories                               1,389.5           1,417.0 Trade receivables                         2,062.8           2,173.9 Other receivables                         486.1             462.2 Assets classified as held for sale        3.4               3.4 Cash and cash equivalents                 957.8             655.5 Total current assets                      4,899.6           4,712.0 Total assets                              10,540.5          10,342.2                                                            Liabilities (€m)                          December 31, 2013 March 31, 2014 Total equity                              4,227.1           4,266.1 Long-term debt                            2,908.2           2,782.1 Deferred tax liabilities                  172.1             166.5 Other non-current liabilities             351.4             341.4 Total non-current liabilities             3,431.7           3,290.1 Interest bearing debt & accrued interests 216.8             279.0 Trade payables                            2,009.9           1,903.0 Other payables                            655.1             604.0 Total current liabilities                 2,881.7           2,786.1 Total liabilities                         6,313.4           6,076.1 Total equity & liabilities                10,540.5          10,342.2  1 Includes Debt hedge derivatives for €25.1m at December 31, 2013 and €5.0m at March 31, 2014  Change in Net Debt  €m                                      Q1 2013 Q1 2014 EBITDA                                  162.6   154.0 Other operating revenues & costs^(1)    (17.1)  (20.1) Operating cash flow                     145.5   133.9 Change in working capital^(2)           (144.5) (192.6) Net capital expenditure, of which:      (5.2)   (24.1) Gross capital expenditure               (20.0)  (18.2) Disposal of fixed assets & other        14.8    (5.9) Free cash flow before interest and tax  (4.2)   (82.7) Net interest paid / received^(3)        (42.8)  (38.0) Income tax paid                         (22.1)  (27.6) Free cash flow after interest and tax   (69.1)  (148.3) Net financial investment                (4.7)   (6.8) Dividends paid                          0.0     0.0 Other                                   (30.6)  (63.3) Currency exchange variation             (30.7)  5.1 Decrease (increase) in net debt         (135.1) (213.3) Net debt at the beginning of the period 2,599.2 2,192.0 Net debt at the end of the period       2,734.3 2,405.3  1 Includes restructuring outflows of €10.5m in Q1 2013 and €12.1m in Q1 2014 2 Working Capital adjustment to reflect suppliers payments scheduled on Dec. 31, 2013 and executed only on Jan. 2nd, 2014 for €51.9m 3 Excluding settlement of fair value hedge derivatives                       Appendix 3: Working Capital Analysis  Constant basis                    March 31, 2013 March 31, 2014 Net inventories                                  as a % of sales 12 rolling months 10.8%          11.1% as a number of days               53.3           53.7 Net trade receivables                            as a % of sales 12 rolling months 16.6%          17.4% as a number of days               56.0           56.4 Net trade payables                               as a % of sales 12 rolling months 13.9%          14.8% as a number of days               60.1           62.2 Trade working capital                            as a % of sales 12 rolling months 13.5%          13.7% Total working capital                            as a % of sales 12 rolling months 12.3%          12.8%                 Appendix 4: Headcount and branches by geography  FTEs at end of period 31/03/2013 31/12/2013 31/03/2014 Year-on-Year Change comparable Europe                17,054     16,750     16,694     -2.1% USA                   6,190      6,234      6,165      -0.4% Canada                2,394      2,379      2,362      -1.3% North America         8,584      8,613      8,527      -0.7% Asia-Pacific          2,931      2,883      2,864      -2.3% Latin America         1,776      1,552      1,564      -11.9% Other                 217        232        235        8.3% Group                 30,561     30,029     29,883     -2.2%                                                     Branches              31/03/2013 31/12/2013 31/03/2014 Year-on-Year Change comparable Europe                1,347      1,306      1,306      -3.0% USA                   398        401        396        -0.5% Canada                216        216        214        -0.9% North America         614        617        610        -0.7% Asia-Pacific          270        265        266        -1.5% Latin America         94         90         88         -6.4% Group                 2,325      2,278      2,270      -2.4%             Appendix 5: Calendar, scope and change effects on sales  To be  comparable  to  2014 sales,  2013  sales  must take  into  account  the  following impacts:                   Q1 actual Q2e     Q3e     Q4e     FYe Calendar effect   0.0%      -0.6%   -0.3%   +1.1%   0.0% Scope effect (1)  €12.6m    c. €10m c. €10m c. €10m c. €43m Change effect (2) -3.6%     -3.8%   -2.2%   -0.9%   -2.6%  (1) Based on acquisitions made in 2013 (mainly Lenn in Singapore and Quality Trading in Thailand) (2) Based on following main assumptions:    o1 USD = €1.38   o1 CAD = €1.52   o1 AUD = €1.49   o1 GBP = €0.83  Appendix 6: Changes due to the enforcement of IFRIC 21 as from January 1, 2014  IFRIC Interpretation  21 "Levies"  clarifies that  the obligating  event  that  gives rise to  a liability  to pay  a levy is  the activity  described in  the  relevant  legislation  that   triggers  the   payment  of   the  levy.   IFRIC  Interpretation 21 applies for accounting period starting from January 1,  2014  with retrospective  application as  of January  1, 2013.  In 2013,  the  Group  reviewed the  impact of  applying IFRIC  Interpretation 21  and estimated  the  adjustment to be an  increase in shareholders' equity  of € 2.6 million  after  tax (€3.9 million before tax)  as of January 1, 2013  as a result of a  timing  difference in the liability recognition. In addition, IFRIC Interpretation  21  prohibits the progressive recognition of a  liability for tax levies over  the  fiscal year and rather requires the one-time recognition of the liability when the obligating event for the payment of the  levy is met. As a result of  this  guidance, the Group  expects that  2014 interim financial  statements will  be  impacted by timing  differences in the  recognition of tax  levies due to  the  adoption of IFRIC Interpretation 21.  €m                            Q1    Q2     Q3     Q4     FY 2013 EBITA                    148.8 172.4  175.9  189.7  686.9 as reported on Feb. 13, 2014 IFRIC 21 restatement          (5.7) c. 2   c. 2   c. 2   c. 0 2013 EBITA                    143.1 c. 174 c. 178 c. 192 c. 687 as proforma for 2014 accounts  DISCLAIMER  The Group is exposed to fluctuations  in copper prices in connection with  its  distribution of cable products. Cables accounted for approximately 15% of  the  Group's sales, and copper accounts for approximately 60% of the composition of cables. This  exposure is  indirect  since cable  prices 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: i) 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;  ii) 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.  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  document  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 21, 2014  under number D.14-0181.  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 document  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  document  includes  only  summary  information  and  must  be  read   in  conjunction with Rexel's Document de  Référence registered with the AMF  March  21, 2014  under  number  D.14-0181,  as well  as  the  consolidated  financial  statements and activity report for the 2013 fiscal year, which may be obtained from Rexel's website (www.rexel.com).  Q1 2014 RESULTS (unaudited) http://hugin.info/143564/R/1781213/609302.pdf  HUG#1781213  
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