OVERVIEW OF THE REXEL GROUP consumption management or fire safety) allow the A strong local leadership Rexel Group to improve the value of its offer. Based on its 2017 sales, the Rexel Group is one The Rexel Group has acquired the technical mastery of the main player in its three main geographical of all product families corresponding to the needs zones: North America, Europe and Asia-Pacific. of electrical contractors. Its close relations with its The countries in which Rexel considers that it has key strategic suppliers make it a privileged contact a market share over 15% represent close to 60% between contractors and suppliers. of its sales. The Rexel Group is convinced of the In a limited number of segments suitable for their importance of reaching a critical size on each of the development and corresponding to products that markets where it is present in order to guarantee are not part of its core business, the Rexel Group also the qual ity and profitabil ity of its operations in distributes its own-brand products (for example, the such country. The Rexel Group therefore must give BizLine brand), on which it generates on average priority to its investments in countries where this higher margins than those obtained in equivalent critical size has been reached or is reachable. product categories under suppliers’ brands. The Rexel Group’s local leadership is primarily based on the following factors: Added-value services adapted to customer needs The Rexel Group positions itself for its customers • Its ability to offer customers a range of products as a technical solutions supplier. It enhances the and services adapted to local needs, and that is value of its product offer by combining it with varied more comprehensive than other independent added-value services. These services are carried out distributors; by qualified personnel benefiting from continuous • An extensive network offering a good fit with training that al lows them to master technological customers’ needs in terms of proximity to their changes. operations; The services provided by the Rexel Group allow its The development of multi-brand commercial • customers to handle the technical changes involved networks that help increase the Rexel Group’s in the distributed products families and support market share in countries where it is already them along their projects. These services notably significant; include: • A logistics organization adapted to customer •Training, support for automation programming demand and market density; and support for drafting cabling diagrams; Electrical installations design services; • Its ability to employ qualified personnel with deep • knowledge of the local market and to provide •Support for major projects, inter alia international, them with ongoing training; and in particular for logistics needs; • Its attractiveness for suppl iers as a leading •Outsourcing programs for the supply chain, in distributor in a given geographicalzone to particular in the area of inventory and assembly promote their products. management, distribution of spare parts and the outsourcing of logistics services; At December 31, 2017, the Rexel Group had 2,012 Provision of turnkey solutions and the calculation branches. By geographical zone, the number of • branches changed as follows between December 31, of potential savings, in particular in the areas of 2015 and December 31, 2017: energy efficiency; and •Financing services adapted to their profiles. AT DECEMBER 31, These services are generally integrated into the offer (Number of branches) 2017 2016(1) 2015(1)(2) price, and are not, therefore, invoiced separately, Europe 1,183 1,196 1,234 thus contributing to increasing the value of the Rexel North America 574 560 567 Group’s distributor role. In addition, these services are part of a customer loyalty and development Asia-Pacific 255 250 246 pol icy, in particular, through the widening of Total 2,012 2,006 2,047 skil ls to products incorporating the most recent (1)Excluding South East Asia. technological evolutions. (2) Excluding Latin America. REXEL 2017 – REGISTRATION DOCUMENT 22