Rexel Second Quarter Earnings Overview - FY July 2025

Speaker: Masar Zama, Group CFO of Rexel

Key Highlights:

• Strong Organic Growth: Continued execution and strong performance across all business areas.
• Partnership with Adobe: New integration between Rexel’s platform and Adobe Express.
• Capital Efficiency: Recognized a one-time profit of 1 billion yen from the sale of Hako Bell shares.
• Increased Dividend and Net Income Forecast.

Future Direction

• Transitioning to an end-to-end technology platform for small businesses.
• Focus areas: B2B eCommerce, software, and finance.
• Commitment to quality growth with profits, cash flow, and a healthy balance sheet.

Business Transformation and Growth Strategy

• eCommerce Expansion: Through organic growth and mergers and acquisitions (M&A).
• AI and Ecosystem Development: Transforming to become AI-native and establishing a comprehensive ecosystem.

Partnership with Adobe

• Integration will allow users to utilize Adobe Express’s generative AI design features on Rexel's platform.

Strengths and Market Analysis

• Total Addressable Market (TAM): Large and expanding across eCommerce, software, and finance sectors.
• Recognition and Infrastructure: Strong brand recognition among SMEs and robust technology infrastructure.

M&A Activities

• 2025 Overview: Screened over 200 companies, submitted six letters of intent, completed two deals.
• Focus Areas: Existing and new products/services, expansion in markets and vertical integration.

Financial Performance Q2 2025

• Strong Revenue and Profit Growth: Tracking towards high-end guidance for 2025.
• Dividends and EPS Revised: Increase due to sale of Hako Bell shares.
• Segment Performance: Strong organic and inorganic growth, particularly in marketing and procurement platforms.
• SG&A and Investment: Ongoing investment in technology and advertising.

Balance Sheet and Capital Allocation

• Convertible Bonds and Loans: Specific measures affecting balance sheet structure.
• Capital Efficiency: Focused on maximizing returns on invested capital through strategic growth and efficiency measures.

Challenges and Adjustments

• Revenue Impact Factors: Postal price increase and invoice system changes affecting card and stamp sales.
• Strategic Adjustments: Focus on Rexel Enterprise growth and adapting to market demands.

Medium-Term Financial Policy

• Targets: Aiming for 10 billion yen in EBITA by 2027, with strategic investments and shareholder return programs in place.

Additional Notes

• Recent Changes: Adjustments in CEO incentive structures and reactions to external market events (e.g., Fuji Television).

Conclusion

• Strong Outlook: Focused on continued growth and addressing market challenges.
• Engagement Opportunity: Invitation for further inquiries and engagements via IR communication.

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• For further questions or meeting requests, contact: [email protected]