03/05/2002 : 2001 Annual Results

REXEL FINANCIAL NEWS

2001 ANNUAL RESULTS

The consolidated financial statements of the REXEL Group for the financial year ended 31 December 2001 were approved at the meeting of REXEL's Board of Directors held on 4 March 2002 and chaired by Alain REDHEUIL.

Consolidated results (in € million)	2001	2000	Change
Sales	7,958.3	7,109.9	+ 11.9%
Gross profit	1,948.0	1,763.3	+ 10.5%
Net operating income	400.1	414.1	- 3.4%
Net income before goodwill amortisation	215.6	217.9	- 1.1%
Net income, REXEL share	179.5	193.6	- 7.3%

Following a record year in 2000, REXEL has continued its drive for growth and has demonstrated its resilience in the face of the difficult market conditions in 2001.


SUSTAINED COMMERCIAL STRATEGY
In most of the countries in which the Group operates, market conditions have deteriorated significantly over the course of 2001. The effect of this general downturn on the 2001 turnover is exaggerated by the Group's strong growth in 2000. When taking the figures on a like for like basis with respect to the group structure, exchange rates and the number of working days in the year, sales have declined by 3.6% in 2001, compared to a 6.7% increase in 2000. However, excluding North America, which was severely impacted in the second half of the year, sales were up 0.2% on a like for like basis. The Group increased its market share in all regions in which it operates. Consolidated sales for 2001 stand at € 7,958.3 million, an increase of 11.9% over the previous year.

Acquisitions made in 2001 account for annualised sales of € 238.8 million. Principal acquisitions were RYALL, ESCO and COMMERCE in the US, and KONTAKT SYSTEME in Switzerland and Germany. REXEL also finalised minor transactions which have enabled it to complement its European network. The Group has also begun operating in Russia.


SOLID RESULTS AND SIGNIFICANT DEBT REDUCTION
Gross profit has increased by 10.5% over the previous year to reach € 1,948.0 million, representing 24.5% of sales.

EBITDA (operating income before depreciation) stands at € 452.2 million. Net operating income has declined by only 3.4% to stand at € 400.1 million, being 5.0% of sales. This performance is largely due to corrective measures implemented with effect from the first quarter of 2001, as well as tight management of gross profit which, on a like for like basis, has increased by 0.2 point.

REXEL has implemented a very strict cost control programme, which has resulted in external costs remaining stable despite adverse conditions, as well as a significant reduction in the number of employees, particularly in the US. At the end of 2001, staff numbers at the Group level were down 6% on a like for like basis.

Net financial result represents a net expense of € 107.4 million compared with € 77.4 million in 2000. This increase is due to the cost of funding the acquisitions made since the second half of 2000.

Net non-recurring result represents a net expense of € 11.4 million (€ 15.2 million in 2000).

Net income before goodwill amortisation stands at € 215.6 million, down just 1.1% on the previous year (€ 217.9 million), whilst net income, REXEL share, stands at € 179.5 million, down 7.3% on the previous year (€ 193.6 million).

Debt reduction as a result of the cash-flow generated by operations, good control of working capital requirements, and the sale of Westburne's non-electrical operations in North America, has strengthen the Group's capital structure. Total shareholders' funds have increased to € 1,343.4 million from € 1,213.2 million at 31 December 2000. The Group's debt/equity ratio has shown a substantial improvement, down from 1.20 at the end of 2000 to 0.85 at 31 December 2001.


DIVIDEND LEVEL IS MAINTAINED
A resolution will be put to the Annual General Meeting to be held in Paris on Monday 13 May at 10am, to declare a net dividend of € 2.22 with a tax credit of € 0.19, being a gross dividend of € 2.41, thus maintaining the dividend at the same level as that of the previous year.


OUTLOOK FOR 2002

REXEL starts 2002 with a better cost basis and will continue its programme of expense control and organisational restructuring whilst at the same time speeding up the development of those tools (marketing, information systems and logistics) which will play a decisive role in the Group's future performance. The Group will expand the application of its commercial strategy which is essential for further development of the business. REXEL will thus be well positioned to fully benefit from any upturn in the economic situation and to continue its aggressive strategy.


REXEL, a subsidiary of PINAULT-PRINTEMPS-REDOUTE Group, is the world leader in the distribution of electrical parts and supplies. Through its network of more than 1,900 branches, the group is active in 33 countries and employs 25,000 people.