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PARIS, Nov. 26, 2013 (GLOBE NEWSWIRE) --
UPDATE ON STRATEGY & MEDIUM-TERM FINANCIAL TARGETS AND ANNOUNCEMENT OF TWO BOLT-ON ACQUISITIONS
Rexel, a global leader in the professional distribution of products and services for the energy world, is holding an Investor Day today in Paris, during which it will provide an update on its medium-term strategy and financial targets. In addition, it is announcing two bolt-on acquisitions.
STRATEGY UPDATEStaying the course and transforming for success in a changing energy world
Despite headwinds in key markets, Rexel has demonstrated continued resilience in performance and made significant progress in the implementation of its "Energy in Motion" company plan announced in May 2012.
Rexel's roadmap is structured around four business imperatives:
Accelerating strategic high-growth initiatives
The strategic high-growth initiatives presented in May 2012 have proven their relevance and Rexel will continue to develop:
High-potential business categories, in particular Energy Efficiency, Building Automation (incl. Home Automation) and Renewable Energies,
International customers and projects,
Dedicated vertical markets, specifically Oil & Gas and Mining.
With the exception of Renewable Energies and Mining, which have been negatively impacted by changes in government policies and adverse market conditions, all other segments have significantly outperformed the market and posted high single- to double-digit growth.
Enhancing customer-centricity for mainstream organic growth
Rexel continues to roll-out its customer-centricity model through advanced and innovative methods and tools to:
Create competitive differentiation through e-business.
Through this customer-centricity model, Rexel aims to broaden its active customer base, to multiply the number of touch points per customer and to increase the number and value of transactions per touch point. This will drive both sales and margin growth in the mainstream electrical distribution business.
Boosting growth through targeted acquisitions
Acquisitions remain a key driver, with around €650 million invested since the beginning of 2012. Two strategic acquisitions, Platt and Munro, significantly expanded the Group's footprint in the key US market as well as its Energy Efficiency portfolio, while other bolt-on acquisitions in Europe, Asia and Latin America also contributed as part of a focused M&A strategy to:
Gain market share and develop synergies in key mature countries,
Increase footprint in developing markets,
Extend portfolio of value-added services in key vertical markets.
Driving operational excellence as an enabler for profitable growth
While the Group remains focused on gross margin discipline and tight cost control, Rexel's program to structurally embed operational excellence is well underway and covers organizational simplification, further harmonization and consolidation of its IT platform, accelerated optimization of its logistics network and supply chain effectiveness measures. Through the combination of these initiatives, Rexel targets a continuous improvement in customer service, asset utilization and cost productivity.