Rexel recently hosted a Capital Markets Day in Paris to present an update on its strategic roadmap and unveil its new and upgraded medium-term financial ambitions.
Over the past few years, Rexel has built a very strong foundation based on the combination of several building blocks which together constitute a winning formula:
- Tech-driven operations, making best use of digital, AI and automation
- A wide array of value-added services that greatly expand our traditional role and address our customers’ most pressing challenges
- A consistent focus on sustainability
- Value-creating M&A
- Engaged associates with strong expertise and customer focus
- A track record of executing and delivering
Going forward, this solid foundation will allow Rexel to benefit from the secular trends shaping its end markets. In particular, the electrification of everything is opening broad areas of opportunities that can be addressed selectively, capitalizing on Rexel’s existing strengths.
Rexel is unveiling upgraded medium-term financial targets:
- Sales growth potential of between 5% and 8%, with targeted M&A representing between 2% and 3%
- Adjusted EBITA margin above 7%
- High-single digit growth in Earnings Per Share (EPS)
- An average conversion rate of 65% of EBITDAaL into Free Cash Flow before interest and tax
These will be supported by our capital allocation priorities:
- A dividend payout of at least 40%
- Share buybacks of between 50 million euros and 150 million euros per year
- A contribution of M&A to sales of between 2% and 3%
- Annual capital expenditure progressing in line or below top line growth
- A targeted net financial debt / EBITDAaL leverage ratio of around 2.0x