OVERVIEW OF THE REXEL GROUP 1.3 RECENT ACQUISITIONS AND DISPOSALS The acquisitions and disposals completed The acquisitions and disposals completed during during the years ended December 31, 2016, and the year ended December 31, 2017 are described December 31, 2015, are respectively described in the in notes 4 and 5 of the Notes to the consolidated Registration document filed with the Autorité des financial statements of the Rexel Group for the year marchés financiers on March 31, 2017, under number ended December 31, 2017, included in section 5.2 D.17-0272 and in the Registration document filed “Consol idated Financial Statements” of this with the Autorité des marchés financiers on April 7, Registration document. 1 2016, under number D.16-0299. 1.4 BUSINESS AND STRATEGY The Rexel Group considers itself to be one of the The breakdown of the Rexel Group’s sales in 2017 leading global distributors in low and ultra-low by end-market is as follows: voltage electrical products in 2017 in terms of sales NORTH AMERICA and number of branches. At December 31, 2017, it 7% operated in 26 countries spread mainly over three Residential geographical regions: Europe, North America and Commercial 57% Asia-Pacific. Industrial 36% EUROPE In 2017, the Rexel Group’s consolidated sales reached Residential 31% €13,310 mil l ion, of which 55% was generated in Commercial 43% Europe, 35% in North America and 10% in Asia- Industrial 26% Pacific. Rexel Group generated a 2017 Adjusted ASIA-PACIFIC EBITA of €580 mil lion, representing 4.4% of 2017 20% consolidated sales. Residential Commercial 21% The Rexel Group targets three end-markets: Industrial 59% The residential market, which mainly covers the REXEL GROUP • use of electrical products in housing, building Residential 22% complexes, buildings and public housing, as part Commercial 45% of their construction, extension, renovation or Industrial 33% upgrading; For these three end-markets, the Rexel Group is •The commercial market, covering the use of a key l ink of the value chain between electrical electrical products in stores, health institutions, equipment providers and customers and end-users. schools, offices, hotels, public facilities as wel l The Rexel Group offers its solutions and services to as energy power plants, publ ic networks a wide range of customers, in particular electrical and transport infrastructure, as part of their equipment contractors, end-users with internal construction, extension, maintenance, renovation installation departments, parts manufacturers and or upgrading; panel builders, industrial companies and tertiary The industrial market, which covers the use of companies. This diversity allows the Rexel Group to • avoid being dependent on any customer, although electrical products in plants and other industrial the degree of customer concentration in some sites, either as part of their construction or countries or product ranges can be higher than in extension, or for maintenance, renovation or others. The Rexel Group’s ten largest customers upgrading.The balanced breakdown of its activity represented less than 4% of the Rexel Group sales between these three end-markets (industrial, in 2017. commercial and residential) and between the geographic regions al lows the Rexel Group to The Rexel Group’s products offer can be broken reduce the effects of a downturn in a given end- down into eight fami l ies: electrical instal lation market within a country or region, thus driving a equipment, cables and conduits, lighting, security resilient global business. and communication, cl imate control , tools, REXEL 2017 – REGISTRATION DOCUMENT 17