REXEL IN 2017 In addition to these Group initiatives, the Rexel processes. A significant and growing share of capital Group drives deep transformations to enhance its expenditure is al located to digital and IT, which profitability in key geographies, mainly the USA, accounted for 56% of the investments made in 2017 Germany, and the UK. and are expected to continue to attract a major In the USA, Rexel wi l l gradual ly move from a portion of investment over the next few years. • national / banner approach to a regional / multi- • Digitization is a lever for organic growth. The Rexel banner approach, focusing on nine key regions. Group aims to achieve 35-40% of digital sales (via Through this approach, Rexel notably aims at e-commerce and EDI in the middle-term), with gaining market share and improving profitability. three priorities: •In the UK, Rexel merged its banners, reducing – Continuing to shift countries towards the shared their number from five to two, allowing it to benefit platform developed by the Rexel Group.This from better purchasing conditions and improved shared platform already accounted for 65% of supply chain efficiency. the Group’s online sales at the end of 2017; •In Germany, Rexel focuses on the development of – Promoting customer use of the digital tools its industrial offer. available to them; and ➤ Rexel’s medium-term ambition is to continuously – Continuing to innovate,by offering new grow Adjusted EBITA and improve Adjusted functionalities. EBITA margin through enhanced gross margin, The Rexel Group also plans to digitize its back- strict cost control and turnaround of countries • that offer significant potential. office activities with the twofold objective of increasing productivity and improving customer and employee experience. This includes the Accelerating digital transformation digitization of invoicing and payment processes The digital transformation of the Rexel Group is in and the administration of human resources. progress: both with its customers and for its internal CONVENING NOTICE OF THE COMBINED SHAREHOLDERS’ MEETING 14