Rexel: FREE CASH FLOW CONVERSION UNDER IFRS 16

FREE CASH FLOW CONVERSION UNDER IFRS 16

Following our H1 2019 earnings call, Rexel’s share price has been impacted by a misunderstanding that arose concerning how we define the conversion of EBITDA into FCF before Interest and Tax after the adoption of the IFRS 16 standard. 

During the conference call, we confirmed our FY 2019 ambition of an improvement of our conversion ratio to around 60%, compared to 51% in 2018 and 55% in 2017.   

For the sake of clarity, the cash conversion ratio has to be applied to « EBITDA post IFRS 16 » reduced by « lease payments » disclosed on a separate line in the cash flow statement. 

Free Cash Flow generation remains a priority for Rexel. 

ABOUT Rexel GROUP

Rexel, worldwide expert in the multichannel professional distribution of products and services for the energy world. The Group supports its residential, commercial and industrial customers by providing a tailored and scalable range of products and services in energy management for construction, renovation, production and maintenance.

Rexel operates through a network of nearly 2,000 branches in 26 countries, with almost 27,000 employees. The Group’s sales were €13.37 billion in 2018.

Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker RXL, ISIN code FR0010451203). It is included in the following indices: SBF 120, CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600. Rexel is also part of the following SRI indices: FTSE4Good, STOXX® Global ESG Leaders, Ethibel Sustainability Index Excellence Europe, Euronext Vigeo Eiris Eurozone 120 and Dow Jones Sustainability Index Europe, in recognition of its performance in corporate social responsibility (CSR).

For more information, visit Rexel’s web site at www.rexel.com.

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Attachment

• 2019 08 01 - PR Free Cash Flow Conversion under IFRS 16