OVERVIEW OF THE REXEL GROUP These can be national distribution chains as wel l respectively 7%, 57% and 36% of its 2017 sales in as independent distributors managing one or North America. several branches. Similar dynamics exist with certain independent customers who decide to gather in Asia-Pacific groups purchasing agencies in order to increase Based on its estimates and its 2017 sales, the Rexel their negotiating power in respect of professional Group considers that it is number two in Asia-Pacific distributors. and held a market share of approximately 4% in 2017. 1.4.1.2 The geographical breakdown of According to its estimates, the residential , the Rexel Group markets commercial and industrial markets represented respectively 20%, 21% and 59% of the Rexel Group’s The Rexel Group’s businesses are spread over 2017 sales in Asia-Pacific. These figures take into three main geographical regions (Europe, North account the discontinued or sold operations in 2017. America, and Asia-Pacific). The Rexel Group’s 2017 sales amounted to €13,310 million. The breakdown At December 31, 2017, the Rexel Group was located between the different zones is as follows: in 6 Asia-Pacific countries, following the disposal of the South East Asia operations in December 2017. IN MILLIONS OF EUROS IN PERCENTAGE The risks associated with the general economic Europe 7,292 55% environment are described in paragraph 2.1.1.1 “Risks North America 4,710 35% relating to the general economic environment” in Asia-Pacific 1,308 10% this Registration document. The competitive risks Total 13,310 100% are described in paragraph 2.1.1.3 “Risks relating to competition” in this Registration document. The risks The presence of the Rexel Group in a number of associated with emerging or non-mature markets countries over several continents limits its exposure are described in paragraph 2.1.1.8 “Risks relating to to the fluctuations of local economic cycles. operations in emerging or non-mature countries” in this Registration document. Europe According to its estimates, the Rexel Group is the second player in the market for the professional 1.4.2 The Rexel Group’s businesses and distribution of low and ultra-low voltage electrical competitive advantages products in Europe, with a 2017 market share of around 16%. It considers that the residential, A major player at the global level commercial and industrial markets represented The Rexel Group is a worldwide expert in the respectively 31%, 43% and 26% of its 2017 sales in professional multichannel distribution of electrical Europe. products and services for the energy world and one At December 31, 2017, the Rexel Group was located of the main players in the market of the professional in 18 European countries. It considers that it occupies distribution of low and ultra-low voltage electrical the first or second place in 13 of these countries. products in terms of both sales and number of branches. North America At December 31, 2017, the Rexel Group estimates According to its estimates and based on its 2017 that it held globally a market share of approximately sales, the Rexel Group’s market share for 2017 was 6%, al lowing it to continue to develop its market around 5% for the professional distribution of low share, in particular through external growth, while and ultra-low voltage electrical products market in remaining one of the main players in the market North America. The Rexel Group considers that it is consolidation for the professional distribution of low in one of the four leaders in this zone, with market and ultra-low voltage electrical products. shares of around 4% in the United States and 25% in Canada. This position al lows the Rexel Group to have competitive advantages compared to distributors In North America, the Rexel Group operates whose size or organization are not similar: essentially in the industrial and commercial markets and to a lesser extent in the residential market. •Meet the demands of customers operating The Rexel Group considers that the residential, in several geographical zones while offering a commercial and industrial markets represented comparable level of service and advice worldwide; REXEL 2017 – REGISTRATION DOCUMENT 20