Core Insights - Rexel reported FY 2025 sales of €19,414.6 million, reflecting a year-on-year increase of +0.7%, driven by organic growth and acquisitions [1][10] - The current adjusted EBITA margin improved to 6.0%, up +10 basis points from 5.9% in FY 2024, indicating resilience in profitability despite challenging market conditions [1][20] - Net income for FY 2025 reached €591.4 million, a significant increase of +73% compared to the previous year [1][26] - Free cash flow conversion was strong at 66.3%, or 76.4% when excluding the impact of a €124 million fine, confirming the company's cash-generative model [1][28] Financial Performance - FY 2025 operating income was €1,061.6 million, up +25.5% from €845.9 million in FY 2024, including exceptional items [1][26] - Recurring net income increased by +2.4% to €678.5 million [1][26] - Free cash flow before interest and tax was €937.8 million, reflecting a conversion rate of 76.4% when excluding the fine [1][28] Sales Growth - Same-day sales grew by +2.5% in FY 2025, with Q4 sales of €4,881.1 million showing a +3.8% increase on a same-day basis [3][7] - The company achieved a +1.8% contribution to FY 2025 sales growth from an active acquisitions strategy [3][4] - Digital sales represented 34% of total Group sales in 2025, up +226 basis points from the previous year [10] Regional Performance - North America, accounting for 46% of Group sales, saw strong growth with a +7.0% increase in FY 2025 [15][16] - Europe, which represents 48% of Group sales, experienced a slight decline of -1.1% in FY 2025 on a constant and same-day basis [11][24] - Asia-Pacific sales decreased by -0.4% in FY 2025, with Q4 sales up +4.5% on a constant and same-day basis [19][22] Strategic Initiatives - The company is executing its Axelerate 2028 strategic plan, focusing on digital transformation and cost efficiency [2][5] - Rexel completed nearly €200 million in value-creating acquisitions and divested activities in Finland and New Zealand [4][12] - A proposed dividend of €1.20 per share represents a 52% payout ratio of the Group's recurring net income [4][32] Outlook - For 2026, Rexel anticipates same-day sales growth between 3% and 5%, with a current adjusted EBITA margin expected to be around 6.2% [2][34] - The company aims to maintain a robust balance sheet with an indebtedness ratio of 2.0x as of December 31, 2025 [1][28]

Core Viewpoint - Solar Norge has successfully finalized the acquisition of Sonepar Norge for DKK 315 million, enhancing its position in the distribution of electrical, ventilation, climate, and energy solutions [1][2]. Group 1: Acquisition Details - The acquisition is characterized as a bolt-on acquisition, which will create a combined portfolio of 25,000 SKUs and generate an annual revenue of approximately DKK 2.5 billion [2]. - Sonepar Norge is projected to deliver revenue of DKK 700 million in 2026, with an EBITDA of approximately DKK -30 million due to estimated transition costs of around DKK 60 million, primarily incurred in Q1 2026 [3]. - The integration of the two businesses is expected to be completed by the end of the first half of 2026, with minimal impact on Solar Group's results for 2025, aside from acquisition costs of approximately DKK 5 million [3]. Group 2: Company Overview - Solar is a leading European sourcing and services company focused on electrical, heating and plumbing, ventilation, climate, and energy solutions, with a revenue of approximately DKK 12.2 billion in 2024 and around 2,900 employees [4][5]. - The company is committed to driving efficiency improvements and facilitating the green transition through best-in-class solutions and digital tools [5].

Financial Data and Key Metrics Changes - The profit for the year decreased to CHF 7.9 million from CHF 10.7 million, attributed to a decline in dividend income and option income [7] - The management expense ratio improved slightly to 0.54% from 0.56%, indicating good value for an investment vehicle in this sector [8] - The ordinary dividend was maintained at €0.65, with a portfolio return of 11.4%, underperforming the benchmark return of 15.2% [9][11] Business Line Data and Key Metrics Changes - The portfolio's performance was driven by significant contributors such as Temple and Webster, which increased by 127%, and other companies like Hub24 and Life360 [25] - The underperformance was partly due to the absence of strong representation in high-performing sectors like gold [14] - The company sold down positions in high-performing stocks to manage volatility and maintain dividend capacity [27] Market Data and Key Metrics Changes - The company noted a strong recovery in the market after a significant drop earlier in the year, with a return to near peak levels by June [61] - Approximately 35% of revenue from the top 20 stocks comes from offshore sources, indicating a balanced exposure to global markets [72] Company Strategy and Development Direction - The company aims to provide long-term investment returns through holdings and attractive fully franked dividends, focusing on small and mid-sized companies [5][6] - A one-for-seven rights issue was executed to raise capital, allowing for portfolio rebalancing and lower management expense ratios [16][21] - The company plans to take a patient approach to deploying capital, focusing on long-term value rather than short-term market fluctuations [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term investment approach despite short-term volatility, emphasizing the importance of patience in capital deployment [63] - The company remains cautious about the current market environment, noting that high growth companies are well-rated, which may limit capital deployment opportunities [69][70] Other Important Information - The company has a history of paying out more in dividends than it receives from share purchase plans, indicating strong shareholder demand for investment opportunities [17] - The capital raising was well-received, with a take-up rate of 119%, leading to a fair outcome for shareholders [21][23] Q&A Session Summary Question: Where is the Australian market developing in a bull market? - The company noted that earnings and valuations drive share prices, but current economic growth is not strong enough to support significant re-ratings in valuations [67][68] Question: What percentage of portfolio revenue comes from global sources? - Approximately 35% of revenue from the top 20 stocks comes from offshore, with a mix of domestic and international businesses [72][73] Question: Why does the company still hold IDP? - The company believes IDP remains the market leader in its space despite current pressures, and it is important to weather the downturn [76][78] Question: What is the view on Macquarie Technology Group's development approval? - There are concerns about development approvals due to local council issues, but the company has faith in management's long-term decisions [80][82] Question: Why was Sigma Healthcare exited from the portfolio? - The exit was due to a rapid increase in value post-merger, making it difficult to justify maintaining a position given its size and valuation [84] Question: Thoughts on Gentrack's transition? - Gentrack has evolved into a robust business, but it may need time to consolidate its growth after a rapid increase in size [90] Question: Will IPD Group pursue further acquisitions? - The company expects IPD Group to continue acquiring businesses, but these will likely be smaller and not thesis-changing [93]