OVERVIEW OF THE REXEL GROUP renewable energies and energy management, white 1.4.1 Rexel Group’s Markets and brown goods and other services and products. This offer is enhanced by combining products with 1.4.1.1 The professional distribution market for services, in particular, logistics, technical assistance, low and ultra-low voltage electrical products financing and training aiming at addressing all of the needs of its customers. A significant market As at December 31, 2017, the Rexel Group has a Based on its estimates, the Rexel Group considers network of 2,012 branches grouped around different that the professional distribution market for low and commercial brands, employing 27,125 people (ful l ultra-low voltage electrical products in which it is time equivalent). present represented around €168.8 billion worldwide The operational sectors on which the consolidated in 2017. For areas where Rexel is present, this market financial statements presented by the Rexel Group represents approximately €40.5 bil lion in Europe, are based are set forth in note 6 of the Notes to the approximately €89.7 bil lion in North America and consolidated financial statements of the Rexel Group approximately €35.9 bil l ion in Asia-Pacific. This for the year ended December 31, 2017 included in market, which demonstrated its resilience in the section 5.2 “Consolidated financial statements” of past five years, grew slightly compared to 2016, at this Registration document. constant foreign exchange rates. Breakdown between the main countries for the professional distribution of electrical products where Rexel is present :(1) COUNTRIES UNITED STATES CANADA GERMANY FRANCE UNITED KINGDOM Size (€ billion) 85.6 4.1 8.5 7.2 4.5 Exchange rate used (1 euro =) USD 1.1 CAD 1.5 – – GBP 0.85 (1)Source: Rexel estimates (depending on the data available locally, these estimates are based on the figures of local professional associations, external market analyses such as Euroconstruct, as well as internal estimates). Rexel is present in China however, the data collected do not allow estimating the market on a reliable basis. The valuation of this market does not include a • Continuous technologicalprogress (home certain number of services that exceed the simple automation or LED technology, for example) distribution of electrical products, such as the and the modernization of existing equipment. production of energy audits or complementary Customers are looking for high value added services in logistics, such as inventory management. products that offer increased functionalities, in particular in terms of security, ease of use and A growth market energy efficiency, leading to increasing demand; The Rexel Group considers that its market should A changing regulatory environment, which varies grow in volume over the long term, fol lowing the • trend in electricity consumption. This anticipated by country. The modification of safety and energy growth trend is notably driven by a combination of consumption standards constitutes a factor for macroeconomic factors such as: equipment renewal; The development of access to electricity linked to • The development of technical assistance • and maintenance services, due notably to the demographic growth and distribution; technological evolution of instal lations and •Energy issues awareness and tai lthe wi l l to customers’ increasing demand for value added increase energy efficiency of equipment; and services; •The increase in demand for safety and comfort. • The development of solutions aiming at reducing In addition to the macroeconomic factors, the Rexel energy consumption or the launch of new energy Group considers that the professional distribution solutions; and market for low and ultra-low voltage electrical • The consol idation of international customers products is driven by a combination of different looking for a value-consistent service delivery factors: offer across all countries in which they operate. REXEL 2017 – REGISTRATION DOCUMENT 18