HALF-YEAR SALES UP 0.5% ON A CONSTANT AND SAME-DAY BASIS
HALF-YEAR ADJUSTED EBITA MARGIN AT 4.8% OF SALES
FULL-YEAR 2014 OUTLOOK ADJUSTED, MEDIUM-TERM OBJECTIVES UNCHANGED

HALF-YEAR SALES UP 0.5% ON A CONSTANT AND SAME-DAY BASIS
• Excluding a negative copper effect of 0.9 percentage points, sales were up 1.4% on a constant and same-day basis
• Strong sequential improvement in North America, with sales up 3.0% in Q2 (after -2.7% in Q1, impacted by extreme weather conditions)

HALF-YEAR ADJUSTED EBITA MARGIN AT 4.8% OF SALES
• Gross margin down 20bps year-on-year, largely impacted by unfavorable geographic mix and the effect of increased project activity
• Distribution and administrative expenses up 5bps, due to higher costs related to the implementation of strategic projects and investments in targeted growth initiatives

FULL-YEAR 2014 OUTLOOK ADJUSTED
• Full-year sales broadly stable year-on-year, on a constant and same-day basis
• Adjusted EBITA margin of at least 5.0% of sales
• Confirmed solid free cash-flow conversion rate
    - At least 75% of EBITDA into free-cash flow before interest and tax
    - Around 40% of EBITDA into free-cash flow after interest and tax

Rudy PROVOOST, Chairman and CEO, said:
"In the first half, Rexel posted slight organic sales growth in an environment that remained globally challenging and uncertain. Gross margin was impacted by unfavorable geographic mix and higher project activity. While we continued to be disciplined in operational cost control, business transformation costs related to the implementation of strategic projects increased in a few key countries, as well as investments in high-growth initiatives. The first-half results were also affected by a lower-than-expected performance in Canada and Australia.

Against this background, 2014 is going to be a transition year, with important leadership changes, as recently announced in North America, as well as structural investments in operational excellence and profitable growth, in order to support our medium-term ambitions. Considering the related additional costs, as well as our half-year results, we are adjusting our 2014 outlook in terms of profitability, while confirming our cash flow conversion targets and cash allocation policy to secure an attractive dividend, further improve the balance sheet and continue to invest for growth. We are committed to our strategic course in order to achieve our medium-term objectives."


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