2013

SONEPAR IS THE WORLD’S NUMBER ONE B-TO-B DISTRIBUTOR OF ELECTRICAL PRODUCTS AND RELATED SOLUTIONS

38 COUNTRIES

MARIE-CHRISTINE COISNE-ROQUETTE, EXECUTIVE CHAIRMAN 2 45 YEARS OF EXPERTISE A DYNAMIC GROUP 4 FRANCK BRUEL, CHIEF EXECUTIVE OFFICER 6 SONEPAR EXECUTIVE COMMITTEE 8 190 FINANCIAL COMMENTARY 10 ENTITIES NEWS FROM THE REGIONS 12

2,300 PASSION FOR YOUR BUSINESS 14 BRANCHES CLOSE TO OUR CUSTOMERS 16 SUPPLIERS OF CHOICE 18 WOMEN AND MEN WITH COMMITMENT 20 36,000 NETWORK DYNAMICS 22 ASSOCIATES A DECENTRALIZED GLOBAL ORGANIZATION 24 SOUTHERN 26 207,000 NORTHERN EUROPE 30 34 ORDERS PER DAY ASIA-PACIFIC 38 SOUND CORPORATE GOVERNANCE 42

16.3 INTERNATIONAL PRESENCE OF SONEPAR 44 BILLION OF SALES MAJOR PROJECTS AROUND THE WORLD 46 inc.

inc.

inc.

inc. MARKETS

NORTH AMERICA 680 branches 36% OF SALES 10% OTHERS

9% SERVICES & UTILITIES CUSTOMERS

27% INDUSTRY

SOUTHERN EUROPE 815 branches 24% OF SALES

17% PRODUCTS CABLE % & WIRES 33 INFRASTRUCTURE % & INDUSTRIAL 9 AUTOMATION % 15 % % SAFETY LIGHTING 6 13 & TOOLS HVAC & BUILDING RENEWABLE AUTOMATION & ENERGY CONSTRUCTION inc.

1969 CREATION BY HENRI COISNE " WHAT COUNTS IS WHAT LASTS, TO LAST WE NEED TO ADAPT. "

NORTHERN EUROPE 480 branches 32% OF SALES MARIE-CHRISTINE COISNE-ROQUETTE EXECUTIVE CHAIRMAN " I WOULD LIKE TO THANK ALL OF OUR ASSOCIATES FOR THEIR HARD WORK AND DAILY DEDICATION. "

54% INSTALLERS

FRANCK BRUEL CHIEF EXECUTIVE OFFICER “ WE OPTIMIZE OUR STRUCTURE AND PROCESSES EVERY DAY TO OFFER THE BEST TO OUR CUSTOMERS, THE BEST DISTRIBUTION NETWORK TO OUR SUPPLIERS, AND THE BEST OPPORTUNITIES TO ASIA-PACIFIC OUR ASSOCIATES. ” 325 branches 8% OF SALES

SONEPAR EXECUTIVE COMMITTEE (SEC) BASED ON THE LONG-TERM VISION OF SONEPAR’S SHAREHOLDERS, THE SEC HAS ESTABLISHED FOUR GUIDING PRINCIPLES FOR SUSTAINABLE AND 7% RESPONSIBLE OPERATIONS. SPECIALITIES 9% & OTHERS SAFETY & TOOLS MARIE-CHRISTINE COISNE-ROQUETTE EXECUTIVE CHAIRMAN

I WOULD LIKE TO THANK ALL OF OUR ASSOCIATES FOR THEIR HARD WORK AND DAILY DEDICATION.

4 SONEPAR MISSION STATEMENT

What we believe 2013 was a tough year in the electrical products Sonepar is an independent, family-owned group focused distribution business. But, as always, Sonepar on B-to-B distribution. We thrive on our unique balance of local empowerment and global reach. succeeded in adapting in new ways, developing new responses and seizing new opportunities. So I would like to thank all of our associates for their hard work and daily dedication. 2013 was also a transitional year for our Group— What we do in terms of corporate governance. That transition has gone well. Today, Franck Bruel, our Chief Our job is to make our customers’ lives easier, Executive Officer, and the Sonepar Executive so we dedicate ourselves to understanding and satisfying their needs. While our core business is Committee effectively direct operations with the in the electrical market, we serve customers through support of our shareholders through our family multiple channels of distribution, with an expanding holding company Colam Entreprendre. range of products, services and solutions.

2014 will be a year of confirmation: events should confirm that the values guiding us for 45 years are still part of our DNA and present in every one of our operating companies around the world, and Who we are for every single associate. Because our history is a vital asset for developing our business, we are We drive our long-term, profitable and sustainable lucky to have it. What should also be confirmed is growth by: that all our people have taken on board our Group’s • Striving for lasting loyalty from our new organizational approach and philosophy, Customers thanks to our Sonepar Governance Corpus, which encompasses our Governance Charter, our • Securing the engagement of our skilled and passionate Associates Mission Statement and our new Mission Letter, presented in these pages. • Building strong partnerships with our preferred Suppliers But above all, 2014 will be a year of major ambition • Aligning ourselves with the vision and for Sonepar and its associates. We will be setting commitment of our Shareholders out to conquer new markets, so that together we can meet the challenges that lie ahead.

What we want To become La Référence for all our stakeholders.

5 Sesco, Toronto, .

A DYNAMIC GROUP

6 “BUILDING ON ITS SOUND FAMILY SHAREHOLDING STRUCTURE, SONEPAR MOVES FORWARD WITH ITS INVESTMENTS AND INTERNATIONAL DEVELOPMENT.”

7 FRANCK BRUEL CHIEF EXECUTIVE OFFICER

WE OPTIMIZE OUR STRUCTURE AND PROCESSES EVERY DAY TO OFFER THE BEST SERVICE TO OUR CUSTOMERS, THE BEST DISTRIBUTION NETWORK TO OUR SUPPLIERS AND THE BEST OPPORTUNITIES TO OUR ASSOCIATES.

8 We have held up well through the economic downturn, We optimize our structure and processes every day to offer maintaining or even improving our market share in 2013. We the best service to our customers, the best distribution owe our performance to the trust our customers have placed network to our suppliers, and the best opportunities to our in us, the enthusiasm of our teams, and the involvement of our associates. suppliers. Our 2013 sales were on par with 2012. We would like to thank our teams who have contributed to Our autonomous growth fell 1%, but the many initiatives and this day-to-day success for their creativity, commitment and innovations launched across all regions created effective enthusiasm. growth drivers that more than offset the negative impact of contracting markets, the price of copper, and exchange With the trust gained from Marie-Christine Coisne-Roquette rates. The recession has taken more of a toll on Northern and the Board of Directors, we have begun working with and Southern Europe and than it has on Asia and the Sonepar Executive Committee (SEC) to put the vision North America, where various factors contributed to stronger expressed by the family shareholders into action by performance, especially in the second half of the year. updating the Mission Statement, originally drawn up in 2000. We have also drafted a version to apply to operations: We concentrated on adapting to the market. This enabled a Mission Letter addressed to our managers that sets out us to take the decline in earnings in stride and guarantees the four pillars of our development, while leaving room for our independence and longevity. Large-scale efforts were a wide variety of initiatives and reaffirming the value of our deployed to trim operating costs, especially in Southern diversity. We expect the environment in 2014 to be similar Europe, and maintain our profitability. to that of 2013.

A number of high-impact projects are under way in areas Our priorities remain the same. Our goals to surpass such as IT, logistics, e-business and branch design. Each market growth, serve customers more effectively and set aims to improve performance now and over the long-term. standards as “La Référence” in our sector remain intact. We have developed our cross-business services to respond At the same time, we will continue to carefully monitor more effectively to market expectations. And we have hired costs while upholding our action plans launched in 2013 more management staff in the Asia-Pacific region and to reach our productivity goals. In 2014, we will also be created the positions of Group General Counsel and VP investing the largest budget in our history. This clearly Group Communications. Furthermore, we continue to invest in shows how confident we are in the future, reflecting training, not only to help our associates advance and develop both our entrepreneurial drive and the trust of our family our talent in sales and management, but also to guide our shareholders. customers through changes in standards and techniques. 16.3 98% BILLION EUROS OF THE SALES ARE MADE IN OF SALES THE 27 COUNTRIES WHERE SONEPAR IS NUMBER 1, 2 OR 3

9 HEADED BY CHIEF EXECUTIVE OFFI- CER FRANCK BRUEL, THE SONEPAR SONEPAR EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE (SEC) IS THE GROUP’S SUPREME EXECUTIVE AN INTERNATIONAL PRESENCE The SEC members are : BODY. TOGETHER WITH THE BOARD The SEC’s eight members are from five diffe- • Fr anck Bruel, Chief Executive Officer OF DIRECTORS, THE SEC SETS rent national backgrounds, attesting to the • François Poncet, Chief Financial Officer SONEPAR’S STRATEGY AND GOALS Group’s international scope. In concert with • Patrick Salvadori, Johan Verbeek, AND SHAPES ITS FUTURE DIRECTION. the Executive Chairman, the SEC defines the Dave Gabriel and Keith Moss, IN 2013, THE SEC UPDATED THE strategic focus and objectives for Sonepar. Region Presidents SONEPAR MISSION STATEMENT AND • Herbert Willmy, Executive VP, PRODUCED AN OPERATIONAL VER- The Group’s decentralized structure makes Global Sourcing & Services SION FOR GROUP MANAGERS CALLED it all the more essential for the SEC to • Pier re Soussand, Senior VP, THE MISSION LETTER. ensure the success of work in the field and Group Human Resources its conformity with those broader objectives. As a first communication channel, the SEC is a crucial contributor to Sonepar’s diversity. “LA RÉFÉRENCE”

“La RéféRence” The SEC establishes organizational rules Based on the long-term vision of Sonepar’s and procedures for the entire Group and shareholders, the Sonepar Executive ensures that they are upheld. It also faci- Committee has established four guiding litates internal audit assignments, whose principles for sustainable and responsible purpose is to verify the relevance and operations. They are what underpin implementation of those rules and proce- our shared ambition of becoming dures. Its members, who are either regional “La Référence” for all our stakeholders: or functional managers, head the Sonepar Customers, Associates, Suppliers and international committees. Shareholders.

10

The Mission leTTer To sonepar leaDers From left to right: Patrick Salvadori, Dave Gabriel, Johan Verbeek, Franck Bruel, François Poncet, Herbert Willmy, Keith Moss and Pierre Soussand.

A MISSION LETTER FOR A BEING OUR CUSTOMERS’ BORN DECENTRALIZED ORGANIZATION FIRST CHOICE TO GROW Based on the clearly defined powers Sonepar strives to be the business partner Sonepar’s growth cannot be viewed in allotted to it in the Sonepar Governance its customers can’t do without—by making isolation from the growth of its stakehol- Charter, the SEC produced a Mission life easier for them and anticipating their ders. In all its distribution channels and Letter in 2013. The Mission Letter inclu­ expectations. A market leader like Sonepar in all its target markets, the Group builds des the Group’s values and summarizes must set standards of excellence for the density through a combination of organic the key components of Sonepar’s industry. In doing so, the Group promotes and acquisition growth. business and business development. innovation and supports its suppliers. It translates into operational terms the SUSTAINABLE basic principles set forth in the Mission OUR PEOPLE MAKE THE PROFITABILITY IS Statement. As a reference work for all DIFFERENCE FUNDAMENTAL Sonepar entities, the Mission Letter provides all Group managers with the Guided by its underlying values, Sonepar Sonepar continually invests in its organi- means to act in support of sustainable invests in developing the skills of its zation to give its customers and suppliers and responsible operations, based on people and constantly seeking out new the benefit of consistent and sustainable four guiding principles. Last of all, it talent. The Group considers on-the-job operational excellence. restates the Group’s ambition to become safety essential and upholds that principle By leveraging experience and best prac- “La Référence” for its business partners, across its entire workforce. Sonepar aims tices from across the Group, Sonepar while nurturing its considerable diversity. to be an employer of choice. boosts growth and drives profitability.

11 FRANÇOIS PONCET CHIEF FINANCIAL OFFICER

2013 was a year of economic slowdown long-term access to that kind of funding Sonepar’s policy is to take calculated risks around the world, particularly in Europe. gives us the leeway we need to keep our that do not jeopardize its current business The positive impact of acquisitions and business growing. or its long-term viability. To achieve its the many initiatives undertaken within growth targets while maintaining the Sonepar made it possible to offset a Apart from a few local facilities, our efficiency of a decentralized organization, modest 1% decrease in autonomous centrally-run treasury department holds the Group has strengthened its internal growth, lower copper prices and an unfa- all of the Group’s financial resources control function. Internal control standards vorable exchange rate for the . As a and manages automated cash pooling, involve a self-assessment process that is result, the Group kept annual sales up at which is operational in most Sonepar facilitated by the use of common software €16.3 billion. countries. for monitoring purposes. Sonepar’s internal audit work has also been stepped Although the lackluster economy pushed As part of its drive for constant pro- up. The aim is to ensure not only that earnings down, Sonepar still managed gress, the Group produces reporting and assignments are successfully carried out, to put its finances on a sounder footing, consolidation work monthly for actual but that internal audit recommendations reducing its debt and improving its finan- results and on a quarterly basis for are followed. cial ratios after distributing €136 million forecasts in order to give Sonepar exe- in dividends. Thanks to a healthy balance cutives “precision tools” for managing a sheet combined with long-term ambi- business with increasing scope. WITH EXPECTED GROWTH IN tion, the Group is in a position to invest NORTH AMERICA AND ASIA IN 2014, more than ever before in 2014. The annual consolidated financial OUR GROUP WILL BE TAKING FULL statements, which are audited by the Audit ADVANTAGE OF ITS SOUND FINAN- In 2013, Sonepar arranged for greater Committee and certified by the statutory CIAL UNDERPINNINGS TO SUSTAIN financing by securing both bank and auditors, are drawn up in accordance with ITS GROWTH WITH CONFIDENCE non-bank loans of over €600 million, IFRS. This enables the Group to use these AND DETERMINATION. bringing its committed loan facilities to international standards as a common a total of €3 billion. Our medium- and financial management language.

12 FINANCIAL COMMENTARY

SALES PERFORMANCE

Despite the tough economic environment, Sonepar’s sales remained stable in 2013 at €16.3 billion, with growth averaging 10% a year over the past few years.

16.3 16.3 14.7 12.8 13.4 11.9 10.5 9.4 7.7 6.6 6.6 7.0 5.8 6.4 4.3 4.8

16.3BILLION EUROS IN 2013 1998 2013

FINANCIAL STRUCTURE AND DEBT

Sonepar has leveraged its sound financial position to secure its financing and guarantee its long-term development.

SIMPLIFIED BALANCE SHEET

FIXED ASSETS CURRENT ASSETS

TOTAL EQUITY TAXES & PROVISIONS CURRENT LIABILITIES NET DEBT ASSETS LIABILITIES

DEC.-13 DEC.-14 DEC.-15 DEC.-16 DEC.-17 DEC.-18 DEC.-19 DEC.-20 DEC.-21 DEC.-22 DEC.-23

COMMITTED CREDIT LINES GROSS FINANCIAL DEBT EXCLUDING ACQUISITIONS

31 DECEMBER 2013 FIGURES

13 NEWS FROM THE REGIONS

PATRICK SALVADORI, SOUTHERN REGION PRESIDENT 3.9 billion euros EUROPE 815 branches Brazil In response to a troubled economic Italy climate in Europe, the Southern Europe Monaco region went on reorganizing its structures Romania and stepped up investment to be able to offer its customers the kind of service they expect from a market leader. In Brazil, where we have continued to grow strongly, Sonepar has been scoring new customer % wins with innovative solutions in all of our OF SALES business lines. 24

DAVE GABRIEL, NORTH REGION PRESIDENT

AMERICA 5.8 billion euros 680 branches North America is building a world-class organization by growing organically, Canada Dominican Republic investing in acquisitions, innovative services and solutions, the development Panama Puerto Rico of our people, and hiring the best talent. Trinidad and Tobago In the years to come, we will continue USA to focus on becoming “La Référence”, setting the standard in all of our markets for our customers and suppliers. % 36 OF SALES

14 JOHAN VERBEEK, NORTHERN REGION PRESIDENT 5.2 billion euros EUROPE 480 branches Czech Rep. Luxembourg With business trending downward in our mature markets, we focused in 2013 on innovative solutions that make life Hungary easier for our customers, delivering increa- singly tailored, effective service. To sustain growth in 2014, we will be combining innovation, expertise, and top-quality ser- vice—something our associates already % achieve on a day-to-day basis! 32 OF SALES

KEITH MOSS, ASIA- REGION PRESIDENT

PACIFIC 1.4 billion euros 325 branches “Building Tomorrow Today” was the region’s strategic development theme for 2013, which Australia New Zealand Singapore was a pivotal year in our long-term plan to India South Korea become the dominant electrical distributor Indonesia Thailand Malaysia Vietnam in Asia-Pacific. The critical task facing us was laying the foundations and erecting the building of tomorrow. We did that while continuing to execute on our three axes of growth: strengthening our core business, broadening the number of customers served % and the products offered, and continuing OF SALES investment in strategic acquisitions. 8

15 Sesco, Toronto, Canada. PASSION FOR YOUR BUSINESS

16 “SONEPAR’S OVERRIDING AIM IS TO HELP ITS CUSTOMERS SUCCEED BY ENSURING THE QUALITY OF ITS PRODUCTS, SOLUTIONS AND SERVICES ON OFFER.”

17 CLOSE TO OUR CUSTOMERS

SONEPAR CATERS TO THE ENTIRE SPECTRUM OF ELECTRICITY-RELATED BUSINESSES IN THE MARKETS IN WHICH IT OPERATES: RESIDENTIAL, INDUSTRIAL, COMMERCIAL AND UTILITIES. THROUGH MULTIPLE INITIATIVE DISTRIBUTION CHANNELS, SONEPAR OFFERS A CONSTANTLY EXPANDING RANGE OF PRODUCTS, SERVICES AND SOLUTIONS AND STRIVES TO MAKE LIFE EASIER FOR ITS CUSTOMERS. ITS KNOWLEDGEABLE STAFF PROVIDES BlueWay—the Sonepar HIGH VALUE-ADDED ADVICE. sustainability reference Sonepar Group entities around the world market energy-saving and energy efficiency products under the BlueWay label. Four product categories have CLOSE TO OUR CUSTOMERS In addition to conventional delivery been designated: lighting; heating, Sonepar offers the best products and (pick-up at branches, delivery to customer ventilation, and air conditioning; solutions that are fine-tuned to customer premises or worksites), Sonepar offers industry; home automation. ADEME needs, along with a variety of order and new options, including onsite vending (the French Environment and Energy delivery options for all customer catego- machines, standard inventory items Management Agency) assists Sonepar ries, from individual contractors to large delivered in secure containers, and France in setting performance criteria installation companies and from indus- temporary branches at worksites. Such for products to qualify for this label. trial firms to end users. Customers can solutions are continually updated to At the same time, suppliers have place orders at branches, over the phone, accommodate changing techniques committed to an eco-design approach. via webshops (even from smartphones and customer needs. Merchandising at Sonepar France has also linked and tablets), or by direct Electronic Data branches is optimized regularly thereby up with the French Occupational Interchange (EDI), e-procurement and constantly enriching the onsite experience Therapy Association to roll out a punch out. (showcasing new offers, providing product BlueWay Mieux Vivre (Better Living) information, introducing new solutions) product range designed to provide and offering increasingly relevant greater accessibility and to empower technical and commercial advice. individuals with impaired mobility.

B-TO-B CUSTOMERS IN ALL SECTORS 27% 10% INDUSTRY OTHERS

54% 9% INSTALLERS SERVICES & UTILITIES

18 B-TO-B DISTRIBUTOR OF ELECTRICAL PRODUCTS AND RELATED SOLUTIONS

INITIATIVE

“What can we do for you Onsite station, Sonepar Deutschland, Ratingen, Germany. today?” Sonepar companies do everything A SOLUTION-DRIVEN NETWORK SKILLED AND PASSIONATE PEOPLE they can to meet the needs of their Sonepar identifies and selects the In keeping with company values, customers and make their lives equipment and solutions best suited the 36,000 Sonepar associates are easier. Options for product delivery to each market and then makes them dedicated listeners who respect customer and availability are continually available through its network. With the concerns. These responsive and creative updated as expectations evolve. support of technical specialists, sales company members work passionately For example, Sonepar Deutschland engineers at Sonepar branches help on a daily basis to make life easier for delivers electrical products, personal customers arrive at effective technical their customers. Moreover, Sonepar’s protective gear and consumables solutions relevant to their needs, adding commitment to service is a long-term affair directly to installers at construction considerable value to projects of any scope that fosters strong customer loyalty—in sites in secure containers, whether and in any area (e.g. lighting, HVAC, energy some cases over several generations. the orders are placed online or from efficiency, automation). Finally, alongside Job-related training likewise ensures that the worksite. Sonepar’s full-service companies are all Sonepar associates keep up with the A similar approach to distribution, entities focused on providing cable and latest developments in their line of work. termed Customized Project wires, datacom solutions, HVAC equipment, Sonepar also offers technical training to its Packaging, has been developed and other equipment. customers. in Sweden at Elektroskandia Sverige. To enhance convenience for customers, several subsidiaries • Wiring Devices • Wiring Devices • Alarms and Safety have created networks of “satellite” • Alarms and Safety • Home Automation branches, as in Poland and France. inc. • Heating, Ventilation and • Heating, Ventilation and Air inc. Air Conditioning (HVAC) Likewise, to save valuable time for Conditioning (HVAC) • Cable and Wires inc. • Indoor and inc.Outdoor customers working at downtown • Building Automation • Lighting construction sites, city shops have • Lighting • Cable and Wires • Voice-Data-Image (VDI) been opened in Finland, France, • Protection • Networks • Photovoltaic Energy Latvia and Norway. And finally, Sonepar entities in Mexico, Canada and Asia have installed vending • Industrial Automation • Network Cable machines directly on the premises • Cable • MV/LV Switchgear • Power Distribution of their industrial customers. • Distribution and • Control Substation Cabinets • Lighting • Distribution Transformers • Safety • Accessories • Enclosures • Tools and Consumables

19 SUPPLIERS OF CHOICE

SONEPAR IS A HIGH VALUE-ADDED GLOBAL PARTNERSHIPS SUPPLY-CHAIN EFFICIENCY DISTRIBUTOR OFFERING TRUSTED GLOBAL BRAND NAMES AND Sonepar maintains long-term partnership Around the world, Sonepar adjusts its RECOGNIZED LOCAL PRODUCTS ties with its suppliers. When manufac- supply-chain structure to market needs TO ITS CUSTOMERS. SONEPAR turers entrust the distribution of their and characteristics and guarantees ASSOCIATES HAVE THE EXPERTISE products to Sonepar, they know they are that its customers enjoy accurate and REQUIRED TO SELECT SUPPLIERS gaining access to a network of branches on-time delivery. The Group continually WHO DELIVER MAXIMUM spanning 38 countries and a sales and invests in its logistics systems to provide RELIABILITY, SAFETY AND PRODUCT technical staff capable of promoting first-class service and delivery methods SOPHISTICATION. IN EACH OF ITS their offers. The Group takes part in new tailored to specific project requirements MARKETS, THE SONEPAR NETWORK product launches and helps its partners and technological configurations. Its STRIVES TO BE “LA RÉFÉRENCE”— identify and anticipate market expec- experts work on optimizing the supply SETTING THE STANDARD FOR THE tations and customers’ needs. Sonepar chain to offer top-quality service at a QUALITY AND PERFORMANCE OF works with them to develop action plans reasonable price. ALL PRODUCTS, SOLUTIONS AND designed to facilitate the dissemination of SERVICES ON OFFER. their innovations to the various markets.

NorthEast Electrical Distributors, Boston, USA.

A WIDE SPECTRUM OF PRODUCTS 33% 6% 9% INFRASTRUCTURE & HVAC & SAFETY INDUSTRIAL AUTOMATION RENEWABLE & TOOLS ENERGY Sonepar constantly strives to adjust to customer needs, distributing a broad range of products selected from suppliers of choice. 17% 15% 13% 7% CABLE & WIRES LIGHTING BUILDING SPECIALITIES MANAGEMENT & OTHERS

20 “ENERGY SAVING WEEK” SONEPAR INTERNATIONAL SERVICES

Since 2011, Sonepar has been holding Sonepar International Services (SIS) provides both internal service for Group an annual Group-wide sustainable companies and external service for supplier partners. SIS also analyzes market development event called “Energy segments to guide suppliers and all Sonepar operating companies in their Saving Week” (ESW). In the course growth. of that week, Group companies in different countries implement a variety SIS, Product Management Teams (PMT) and the International Supplier Com- of initiatives to promote energy-saving mittee (ISC) identify, select and promote innovative products and services. products and solutions, raise awareness After upgrading international PMT structures (from global to regional) and and educate customers and associates re-segmenting products in 2013, the Group now has a clearer view of markets about energy efficiency, recycling and and can roll out business initiatives that make a difference at the local level. more. Encouraged by success in the previous years, Sonepar USA expanded SIS has further refined its tools for scanning the environment and provides its the scope of the concept in 2013 with a partners and Group operating companies with both ad hoc and periodic stu- month-long program of “Energy Saving dies (Watson online survey) to, for example, assess service quality and survey Weeks”. Each country organization customer needs and expectations. designs its own ESW activities, ranging from customer conferences The range of market analysis services offered by SIS has helped our internatio- and seminars to BlueWay product nal partners grow faster than other suppliers. promotions and internal contests with awards for the best ideas. INITIATIVE

Join Sonepar in Sustainable Development Leadership In cooperation with two of Sonepar’s top suppliers, SIS and the Lighting PMT conducted two international campaigns in 2013 to promote LED products in over 24 countries. Through presentations, demonstrations and workshops, Sonepar operating companies promoted this new technology and the relevant related solutions. During these international campaigns, the sale of LED products doubled, far outpacing all products in the lighting category.

21 WOMEN AND MEN WITH COMMITMENT

THE WHOLESALING BUSINESS recruit and develop talent, the various ASSOCIATE SHAREHOLDING: LONG- IS ALL ABOUT SHARING AND country organizations have put in place TERM DEVELOPMENT INTERACTING—THAT’S WHY HUMAN their own talent management arrange- The desire of shareholders to give mana- RESOURCES ARE A KEY COMPONENT ments geared to local realities. The Inter- gers a stake in their company and a por- OF SONEPAR’S DEVELOPMENT. national Human Resources Committee tion of the value it creates is very much a (IHRC) has identified the development of reality at Sonepar. Over the past several SONEPAR: EMPLOYER OF CHOICE such arrangements as a priority objec- years, the Group has offered its mana- tive for 2014. gers a variety of Associate Shareholding To a large extent, Sonepar owes its sta- Plans. The first beneficiaries of Fidelity tus as “La Référence” (standard-setter) in SONACADEMY: A SUCCESSFUL Share Plans acquired stock in 2013. B-to-B electrical equipment distribution TRAINING INITIATIVE Under a variety of programs, several to the skill, passion, efficiency and pro- thousand associates currently hold fessionalism of its 36,000 associates. Sonepar places a premium on training shares, either outright or in the form of Integrating newcomers and imbuing to instill an entrepreneurial mindset, stock options. them with the Group’s values are a key encourage managerial ability, develop day-to-day concern. skills and more. In 2013, the Sonepar Leadership Program (SLP), one of the PRIORITY STATUS FOR TALENT key programs established by the Group’s DEVELOPMENT corporate university Sonacademy, com- pleted its third year. More than a simple The recruitment drive, employer bran- training program, it has become an ding campaign and other initiatives important tool for building cohesion launched in 2013 were so successful within Sonepar. that they have been continued and extended to many other countries. Given the increasing awareness among ope- rational managers and their Human Resources managers of the need to

DEP, Bangkok, Thailand.

22 INITIATIVE

An intergenerational alliance in Italy INITIATIVE To ensure that know-how gets passed on and that tomorrow’s associates receive adequate training, Sonepar A culture of safety at the Lumen Italia has initiated a program called Distribution Center the “Intergenerational alliance” Thanks to a policy of educating to foster connections between associates in workplace health experienced associates and and safety, the Lumen Distribution newcomers to the organization. “Duos” Center in Canada has gone for over are formed on a voluntary basis so that 500 consecutive business days with senior managers can prepare younger no injuries (October 2012 to March colleagues as their successors. 2014). Each day, management draws This extremely popular initiative has employee attention to a different energized the entire company and safety issue—an ongoing approach helped renew its workforce, while to training that has fostered a strong building a powerful sense of belonging. culture of safety. A warm-up program at the start of each shift and an annual course on ergonomic material handling also contributes to the company’s outstanding track record.

Lumen Distribution Center, Pointe-Claire, Montréal, Canada.

23 OUR SHARED NETWORK DYNAMICS VALUES

THE INTERNATIONAL COMMITTEES ARE THE GROUP’S NETWORK OF EXPERTS IN ITS OPERATIONAL SPECIALTIES AND ARE CHAIRED BY MEMBERS OF THE SONEPAR EXECUTIVE COMMITTEE (SEC). REGULAR MEETINGS ARE HELD PASSION TO RELAY INFORMATION FROM Sustains and heightens daily THE FIELD, DISSEMINATE BEST on-the-job commitment PRACTICES AND HIGHLIGHT STRATEGIES AND SOLUTIONS WITH BOTH LOCAL AND INTERNATIONAL RELEVANCE. INTERNATIONAL FINANCE COMMITTEE (IFC) A NETWORK OF INTERNATIONAL The IFC focuses on supporting opera- COMMITTEES tions, developing internal controls, upda- ting reporting and management stan- dards, while working to further optimize PEOPLE E-BUSINESS COMMITTEE (EBC) the Group’s financing operations. The key to business growth

The EBC supports the development of INTERNATIONAL HUMAN e-business by promoting high value- RESOURCES COMMITTEE (IHRC) added solutions and an unmatched online purchase experience. In October The IHRC tracks how human resources 2013, the Group’s e-business specia- are managed in each country, deve- lists got together to report on projects lops shared processes and supports the underway and market trends. A great Group’s efforts to develop talent. SYNERGIES deal was shared constructively. By learning from each other, INTERNATIONAL LOGISTICS we boost efficiency INFORMATION & COMMUNICATION COMMITTEE (ILC) TECHNOLOGY COMMITTEE (ICT) The ILC assists Group operating compa- The ICT is responsible for outlining nies with supply chain optimization in Group IT strategy and evaluating all their specific markets. At the end of 2013, major IT investment proposals. In 2013, a large number of Sonepar logistics spe- the committee worked on unifying Enter- cialists met in Washington D.C. to share prise Resource Planning (ERP) across the latest achievements and ongoing Sonepar companies and developed new projects. PROFIT intra-Group communication tools. Profit is what keeps us free and independent

24 NETWORK DYNAMICS OUR SHARED VALUES

PRODUCT MANAGEMENT TEAMS INITIATIVE (PMT) Under the guidance of the ISC, the PMTs are a focal point of communication LIM Award 2013: At the behest of the Inter- among specialists from the Group’s main national Logistics Committee (ILC), more product lines. In 2013, they were reorga- than 60 Sonepar logistics experts from nized according to Sonepar regions to 15 countries met at a four-day Logistics Info enhance local market penetration. CUSTOMER Meeting (LIM) to share experience, learn Provide maximum technical expertise through strong customer relationships about projects in progress, and discover SONEPAR INTERNATIONAL KEY best practices. At the event, the 2013 LIM ACCOUNTS (SIKA) Award went to the L&H Group in Australia for a supply-chain optimization initiated SIKA offers multi-country Key Account cus- program in the West of the country that will tomers a single point of negotiation and cut customer delivery time by one third. solutions adapted to their needs. In 2013, Sonepar stepped up its efforts to manage and develop business with these customers by defining narrower geographic areas.

RESPECT SONEPAR JUNIOR COMMITTEE (SJC) The bedrock of all our relationships Established in 1991, this incubator for future executives brings together younger managers from all Sonepar locations for three-year terms of office in one of three working groups: Europe, North America and INTERNATIONAL SUPPLIERS Asia-Pacific. The members meet regularly to COMMITTEE (ISC) work on case studies assigned to them by Sonepar’s top management. After spending “LA RÉFÉRENCE” The ISC proposes and coordinates interna- the first two years on a regional SJC, they To be “La Référence”: Both a challenge tional policy for dealing with the Group’s join the global SJC in their third year. and an incentive for all of us to do better suppliers, based on guidelines set by the SEC. The committee assists the suppliers SPECIAL-FOCUS BODIES selected, encourages and supports new initiatives and gives the Product Manage- TAX AND INSURANCE ment Teams their assignments. In 2013, the ISC was busy with upgrading its The tax and insurance team is a division international structures and with gearing within Sonepar International Services (SIS) FUTURE product segmentation more effectively to whose role is to make tax expertise avai- Focusing on the future means seizing market realities. lable to Sonepar subsidiaries. every opportunity to ensure that Sonepar survives and thrives

25 Sonepar Brasil, Sao Paulo, Brazil. A DECENTRALIZED GLOBAL ORGANIZATION

26 A DECENTRALIZED “SONEPAR BOASTS A WEALTH OF DIVERSITY IN ITS OPERATING COMPANIES ACROSS THE GLOBE AND TAKES A GLOBAL ORGANIZATION LOCAL APPROACH TO ITS MARKETS.”

27 BELGIUM MILLION EUROS 434 IN SALES SOUTHERN ALEXANDER DEWULF GROWING LEADERSHIP IN A WEAKER MARKET Cebeo gained market share once again in all product and customer categories with an expanded offer of product-related solutions. The “Cebeo Technology 2013” trade show was a major success, attracting over 7,000 visitors. The EUROPE company’s Do-It-Yourself business likewise REGION PRESIDENT had a good year.

PATRICK SALVADORI Cebeo has continued to invest in ways to inform, support and serve its customers more effectively. Further energy will be devoted to optimizing geographic cove- rage and developing e-business.

CEBEO, Lighting showroom, Deurne, Belgium.

28 BRAZIL INITIATIVE MILLION EUROS In 2014, Sonepar Brasil will be sustai- IN SALES ning the momentum with a broader offer 240 and innovative approaches to promoting HERVÉ SALMON products and solutions. A new branch concept in Brazil To make daily life easier and save time for installers and small-scale contractors, Dimensional has STRONGER CUSTOMER RELATIONSHIPS opened a One Stop Shop—a Sonepar Brasil has continued to fine- branch with a dedicated area that tune its organization by encouraging allows customers to view and try the dissemination of best practices out new products and technologies. across a country with a complex legal Already operational in the United environment. Service has been further States, this sales format offers enhanced through greater staff involve- a complete range of products ment with customer service issues. to meet customer needs, from electrical equipment and tools to datacom products and personal protective gear. This new approach will be gradually rolled out at other points of sale.

Dimensional, Campinas, Brazil.

29 FRANCE INITIATIVE MILLION EUROS The company has continued to deploy IN SALES its skill labels in HVAC and industrial 2 502 products, offering customers increasing PATRICK SALVADORI support with their projects. NRA Lighting: skill label The 30 branches that have In addition, e-business is rapidly expan- received the NRA Lighting skill In 2013, Sonepar France maintained ding with the help of onsite events, label in France and the hundred its leadership position in a particularly training, loyalty programs and intense or so lighting experts working troubled market by investing heavily to communication work within the sales for them select and develop enhance customer service. network. technical and decorative lighting solutions tailored to each INVESTING IN CUSTOMER SERVICE Sonepar France’s Ile-de-France and individual business or residential Sonepar France forged ahead with Nord-Est regional logistics platforms project, combining light-fixture branch renovation in order to showcase are up and running, and will soon be design with engineering products and services more efficiently. joined by the Sonepar France Sud-Est intelligence. Branches were redesigned to meet exis- and Sonepar France Sud-Ouest facili- To promote its NRA Lighting skills, ting needs and anticipate future client’s ties. All are equipped with cutting-edge France’s number-one specialist expectations. With the concept of Libre technology to optimize order processing lighting company, Sonepar France Accès Pro (free access to professionals), and delivery. joined forces with the Réunion the company is working to enhance cus- des Musées Nationaux-Grand tomer traffic flow within the branches, In 2014, Sonepar France will pursue Palais (National museums – make life easier for customers and make further innovation to ensure top-quality Grand Palais) to support the information and forms of assistance customer service. The company will be exhibition “DYNAMO, un siècle de more readily available. The success of focusing in particular on its Lighting label lumière et de mouvement dans the “Elec-City” approach has led to the of excellence through enhanced skill sets, l’art, 1913-2013”. opening of a second outlet in central targeted action plans and better product All of Sonepar’s full-service Paris. assortment. Last of all, an innovative points of sale receive support approach to energy efficiency will be from the branches that have rolled out. earned the NRA Lighting label— branches with a dedicated lighting sales team, a special offer, a showroom, and a high value-added, referral-based approach. All NRA Lighting experts are graduates of a certified training program. To find out more, visit the NRA Lighting website at: nralighting.sonepar.fr

DYNAMO exhibition, Sonepar France with RMN-Grand Palais, Paris, France.

30 ITALY MILLION EUROS INITIATIVE 412 IN SALES CARLO MAZZANTINI Shining the spotlight on LED in Milan In November 2013, Sonepar Italia INNOVATING IN HARD TIMES inaugurated Light Urban Center Sonepar Italia has increased its share of Experience (LUCE) in the city of a market trending downward. Milan. With floor space totaling 200 sq. m., the new center has Organized into three regions, the com- capitalized on the experience of pany has improved market density in the MAT’ Electrique in Lyon, France. three regions that now make up its struc- More than 900 products are ture in Italy. A new self-service branch exhibited in spaces that recreate the format has been introduced in the North, office, meeting room, hotel room, with a skill center and standing exhibi- display case, or fashion boutique to tion area to facilitate customer access demonstrate the real-life potential to innovative services and solutions. In of LED lighting. The kick-off event addition to the structural adjustments offered Sonepar experts an excellent required, new talent has been recruited opportunity to assist customers in to make the sales force as proactive as designing their lighting plans. possible.

Sonepar Italia will be leveraging the transformations and projects carried SPAIN out in 2013 to achieve strong, targeted MILLION EUROS growth in 2014. 245 IN SALES LUIS ARCONADA ROMANIA MILLION EUROS Even in a market trending downward, IN SALES Sonepar Ibérica has sought to build 12 a denser network and to strengthen its DAN GEORGIA number-one status through targeted acquisitions. At the same time, the com- pany has been optimizing its structures Supported by efficient logistics, ARC to deliver enhanced customer service Electronic posted high growth in sales while lowering market access costs. to both installers and manufacturers, despite a decrease of about 15% in the ADJUSTING TO THE MARKET overall market. The addition of a new 2014 will be another year of adjustment branch has given the company better to market needs for Sonepar Ibérica. geographic coverage. To keep pace with customer demand, new product ranges will be rolled out In 2014, there will be additional invest- at branches in Northwestern Spain, and ments, particularly in e-business. subsequently offered across the network. LUCE, Milan, Italie.Italy.

31 CENTRAL CLUSTER STEFAN STEGEMANN NORTHERN AND HOLGER HECKLE AUSTRIA MILLION EUROS 164 IN SALES ERNEST LEMPERS

STRENGTHENING EXISTING TOOLS EUROPE While Sonepar’s performance was in line REGION PRESIDENT with the overall market in 2013, its photovol- taic panel sales soared by more than 30%. JOHAN VERBEEK Sonepar Österreich has gradually reaped the benefits of the Central Cluster’s best practices and tools so that it can respond more effectively to market expectations.

These efficiency gains and a plan to boost geographic coverage allow Sonepar Öster- reich to start 2014 with full confidence.

CZECH REPUBLIC MILLION EUROS 44 IN SALES JAROSLAV CHRTEK AND JIRI LOUDA

A distressed market, including a 10% falloff in construction, pushed the company’s sales down. Online sales continued to grow briskly and market coverage expanded. Sonepar Ceská Republika completed the integration process with i-center, an entity acquired in 2012.

In 2014, the company will be focusing on sales analysis and support tools and on improved logistics. Langweid Central Distribution Center, Germany.

32 GERMANY HUNGARY MILLION EUROS INITIATIVE MILLION EUROS 2 361 IN SALES 26 IN SALES STEFAN STEGEMANN ZOARD RICHTER AND HOLGER HECKLE Reusing cable drums The people at Sonepar Deutschland Region Süd took SERVICE EXCELLENCE the initiative to innovate, in Sonepar Magyarorszàg has maintained Germany’s electrical equipment market cooperation with logistics, by sales volume in a weak market through was down 5% in 2013. But Sonepar reusing wooden cable drums promotions, technical training for asso- Deutschland fared better than its peer that were previously scrapped ciates, a strong focus on manufacturing group in this challenging environment, after being used once. The customers and by holding a Sonepar investing further in logistics (in the laser-marked drums are now tradeshow and road shows. Back-office Northwest and the East) and levera- recovered at worksites so that optimization likewise supported perfor- ging the boom in products related to there is less waste to eliminate. mance. renewable energy and energy efficiency. In 2013, more than 5,000 cable Customer events like regional “Sonepar drums were salvaged in this way. In 2014, the company will be further Partnertreff” trade shows, training pro- expanding its geographic coverage. grams, and dedicated marketing action plans all helped give this product range greater prominence.

To attract new talent, Sonepar Deutschland continued to promote its brand name as an employer “Think future, create future” on social networks.

With customer relationship as the key to operational excellence, Sonepar Deutschland will be stepping up its on-the-ground presence in 2014 through action plans to build greater involvement among manufacturing partners. The company will continue to work toward enhanced geographic coverage.

On January 1, 2014, ETS, an electrical equipment distributor with a focus on white goods and a workforce of forty, became part of Sonepar Deutschland. The staff has been busy migrating IT data to the systems and web shop already in place at Sonepar Deutschland. Thanks to the involvement of all associates, ETS was fully operational by January 2, 2014.

Scrapped cable drums, Sonepar Deutschland Region Süd, Germany.

33 SWITZERLAND MILLION EUROS NETHERLANDS vehicles and solar panels. An inno- IN SALES vative solar panel planner enables 223 installers to provide quotes and DAVID VON OW directly take orders online. During the NETHERLANDS “Energy Saving Week” in May 2013, MILLION EUROS Technische Unie equipped all its In 2013, Sonepar Suisse outperformed IN SALES branches with the “Wecycle” waste col- the market with the help of a powerful 1 092 lection system. e-business tool and a new, innovative JAN JANSE AND customer loyalty program. At the same JAN FERWERDA OPERATIONAL EXCELLENCE time, back-office reorganization conti- (AS OF JAN. 14, 2014) The supply chain was also upgraded in nued and a branch was opened in 2013 to offer better service while redu- Muttenz, near Basel. cing inventory, shorten delivery time in ENHANCED LEADERSHIP STATUS cooperation with suppliers, and facilitate As part of its ongoing drive to serve In a market trending steeply downward, setup procedures for customers. Five customers more effectively, in 2014 Technische Unie significantly outper- branches were completely made over Sonepar Suisse will continue develop- formed its peers. The company thereby into service centers to meet the expec- ment of its state of the art e-business enhanced its leadership status and tations of individual installation contrac- solutions and will deploy a country-wide increased its market share, particularly tors, including easier access to products supply-chain program. by leveraging its new e-business plat- and solutions and extensive technical form (Mijn TU). Ubel, a distributor of advice. complex valves and accessories, joined Technische Unie in July 2013. In 2014, Technische Unie will aim for higher growth and continue to invest Focusing increasingly on sustai- in improved staff quality. Top priorities nable development, Technische Unie include developing business and explo- expanded its product range with com- ring new markets, e-business, industrial INITIATIVE plete systems for recharging electric customers and new services.

Technische Unie: installers. These dedicated webshops the e-business benchmark were designed in coordination with in the Netherlands customers to ensure their relevance Technische Unie played a pioneering to each specific type of business. The role as far back as 1998, opening result is that website ergonomics and one of the first electrical equipment functionalities, available information, webshops in the Netherlands. In and product ranges are adjusted to their 2013, the company once again took target audiences. the lead, creating webshops tailored These websites translate into added to the various customer categories, value for customers, saving them from individual contractors to large valuable time and ensuring that they installation firms, from industrial get the products they need from among customers to sanitary product the many thousands of items on offer.

34 FINLAND POLAND NORDIC CLUSTER MILLION EUROS MILLION EUROS ANDERS WESTMARK 366 IN SALES 99 IN SALES MIKA HÖIJER WIESLAW ROMANCZUK

A new city shop opened its doors in The company continued its drive to create BALTIC COUNTRIES downtown Helsinki, and SLO expanded a denser sales network, opening five “satel- MILLION EUROS its head office branch. At the same time, lite” branches, and promotional campaigns IN SALES SLO launched targeted campaigns to have boosted sales. The company stren- 66 continue with efforts to serve the indus- gthened its partnership with Schneider HEIKI LIISER trial automation market effectively. Electric, with eleven branches approved by the end of 2013. Alfa-Elektro was named The Spring Fair organized by SLO in the Best Electrical Equipment Distributor in Sonepar has strengthened its position in Finnish capital offered an opportunity to Poland by a high-profile industry magazine. all three Baltic countries: acquaint a large number of visitors and - Estonia: SLO Eesti customers with the latest innovations in In 2014, the company will be further - Latvia: SLO Latvia electrical equipment. SLO also took part expanding its geographic coverage. Spe- - Lithuania: SLO Lithuania in the Network 2013 show held in Tam- cial emphasis will also be placed on tech- pere and the Helsinki Automation Fair. nical training for staff. Heiki Liiser was appointed as the new Managing Director of SLO Eesti, effec- In 2014, the primary focus will be on tive as of September 1, 2013. He also the back-office (particularly the supply SWEDEN became the Baltic countries Managing chain) and e-business solutions for cus- MILLION EUROS Director as of January 1, 2014, following tomers. IN SALES the retirement of Pekka Syrjäkari. 638 ANDERS NORDLÖW SLO Latvia stepped up its presence in NORWAY the energy market and opened a city MILLION EUROS shop in downtown Riga. The company IN SALES SERVICE AND NEW CONTRACTS will also enhance its geographic cove- 112 Elektroskandia Sverige has maintained its rage. LARS HAMBORG number-one position in electrical equipment distribution. Thanks to high-quality service, SLO Lithuania, which celebrated its tenth the company has deepened its partnerships birthday in 2013, has strongly developed SETTING THE STAGE FOR FURTHER with key accounts and won new multi-year its solar power-related business. CONQUEST contracts. A wide variety of initiatives have A city shop branch was opened in down- been taken under the leadership of a stren- town Trondheim, Norway’s third largest gthened management team. Branches city. The logistics platform is also up and have been opened at customer worksites, running and a highly efficient IT system highlighting the company’s versatility in is now fully operational. Otra Norge has adapting to customer needs as they arise. A gained a much deeper footprint in ship- new branch was opened in Nacka, the ligh- building and has been supplying 4G ting product range was extended and the network radio antenna kits to telecom Cylinda domestic appliance range is now carriers. Service business and e-business number-two in the Swedish market. sales are also on the rise. In 2014, the company will be targeting small In 2014, the company will continue to and medium-sized installers, while new expand its geographic coverage. branches will be opened to heighten cus- tomer convenience.

35 CANADA MILLION EUROS 991 IN SALES FRANÇOIS ANQUETIL

NORTH GREATER OPERATIONAL AND SALES STRENGTH Despite considerable pressure in all business segments, Sonepar Canada has maintained its position in the mar- ket, thanks to an extended sales network, new IT infrastructure, operational staff involvement with suppliers and a stron- AMERICA ger leadership team. REGION PRESIDENT Sonepar Canada has contributed to growth in the mining, gas and oil indus- DAVE GABRIEL tries by offering tailored service. In 2013, Texcan had an outstanding year, offering improved customer tracking tools, while Lumen achieved greater geographic coverage, opening a first branch outside of Quebec province.

ENHANCING SERVICE, MANAGING TALENT The agenda for 2014 includes construc- tion of efficient supply-chain platforms and further optimization of internal synergies.

Recruitment, management, training and discovery of new talent are priorities shared by all Sonepar Canada entities.

Century Vallen, Edmonton, Canada.

36 MEXICO MILLION EUROS INITIATIVE IN SALES 369 SONEPAR MEXICO URCESINO PALACIOS BARRO VALLEN PROVEEDORA CAMILO KURI Connected vending machines machines are connected to Vallen In Mexico, Vallen Proveedora offers to Proveedora’s IT system, which install vending machines dispensing automatically replenishes supplies GREATER NETWORK DENSITY AND equipment and personal safety gear and handles invoicing, and to the HIGHER ADDED VALUE SOLUTIONS on the premises of its industrial customer’s IT system, which tracks Sonepar Mexico succeeded in increa- customers. By inserting special chip the daily cost per worker and per sing overall sales in a difficult environ- cards into the machines, employees department. This experiment has been ment marked by a reduction of more can obtain protective gloves, earplugs, successful enough to encourage other than 10% in residential business. That dust masks and similar items at the Sonepar companies to follow suit. success was driven by a combination of workplace. These high-tech vending effective merchandising at all branches, greater network density as a result of the addition of several new branches in the Mexico City area and the Southeast of the country and increased business with manufacturing customers.

In 2014, all Sonepar Mexico warehouses will be equipped with computerized infor- mation management.

By delivering higher value-added solu- tions, particularly to oil and gas indus- tries customers, Vallen Proveedora once again booked double-digit sales growth and cemented its market leadership in safety equipment.

In 2014, Vallen Proveedora will focus on growth of its full-service business, installation of new vending machines, the opening of warehouses geared to specific customers and renewal of major contracts in the oil and gas industries.

37 MILLION EUROS To meet the growing needs of the oil and DEVELOPING TALENT IN SALES gas industries, Crawford Electric opened The Sales & Operations Leadership 4 457 six new branches in Texas and Louisiana. Development program accelerated in DAVE GABRIEL 2013 to keep pace with training needs SOPHISTICATED E-BUSINESS SOLUTIONS for future managers at Sonepar USA. In 2013, pioneering e-business solutions INVESTMENTS AND NETWORK DENSITY were introduced to enhance customer Even with a slow economy, Sonepar USA experience, particularly product search has maintained its market leadership and ordering tools. New related services and increased its sales. The company such as online quote management and has invested in technical services, invoice payment have been rolled out. e-business, training and logistics. These investments will continue in 2014, to improve operational and customer ser- vice efficiency, the foundation of sustai- nable growth.

eLink, the e-business solution for busy contractors! eLink, a solution developed for the Sonepar USA e-business platform, allows customers to obtain quotes and place orders in less than five minutes. This not only saves time, it also eliminates faxes, phone calls and possible data entry errors. Viking Electric Supply, Minneapolis, USA. All it takes is a simple document attached to an email to automatically generate a quote sent to the customer in PDF format, seven days a week. In addition, a variety of options enable eLink to adapt to the requirements of customer IT systems.

INITIATIVE

38 NorthEast Electrical Distribution, Boston, USA.

39 INDIA MILLION EUROS 4 IN SALES ASIA- PER LINDEBERG ESK India was confronted in 2013 with a noteworthy slowdown in its core mobile telecommunications business due to chan- ging legislation. Nevertheless, the company succeeded in improving results by diver- sifying its product range and broadening its customer base.

PACIFIC In 2014 a new business line focused on dis- REGION PRESIDENT tributing products and services to industrial customers will start in the eastern part of KEITH MOSS the country, thus creating whole new vistas for ESK India.

INITIATIVE PACIFIC SUB-REGION ROBIN NORRIS

Making life easier for installers AUSTRALIA In the current troubled economic MILLION EUROS environment, Sonepar teams in IN SALES Australia have been focusing on their core markets. They have 582 ROBIN NORRIS launched a host of initiatives aimed at small- and medium- scale installers, dubbed “NOW”. This flexible project began with The Australian economy slowed conside- multiple improvements to the rably in 2013. A large number of mining e-business platform, including industry projects were cancelled or shel- a more powerful search engine, ved and a number of infrastructure and real-time delivery tracking and public sector investments were postponed. mobile applications. At the But despite lower sales, the L&H Group same time, L&H Group created and its subsidiaries (L&H, Auslec, Pacific a pocket-sized catalog listing Datacom and Specialized Lighting Solu- the products available at its tions) managed to outperform the market. branches.

40 NEW ADDING MORE VALUE SOUTHEAST ASIA Substantial investments were made in ZEALAND SUB-REGION 2013 to deliver customer service with MILLION EUROS higher added value. 79 IN SALES ALEX CHEANG L&H and Auslec focused on serving small STEVE PRIEST and medium-sized installers through the The Group’s business in Southeast Asia e-business platform “NOW”. Backing up was reorganized in 2013. All the ope- that effort was the publication of a series A SUCCESSFUL FIRST YEAR WITH SONEPAR rating companies in this sub-region are of catalogs, including a pocket-sized ver- For Corys Electrical, which joined the now overseen by Alex Cheang, the Pre- sion of the existing catalog called “Branch Group at the end of 2012, 2013 was a sident of Southeast Asia. This new orga- in a Book” that includes over 5,000 items. transitional year that involved adapting nization promises to generate greater to Sonepar’s unique culture with the synergies between associates in the Electrical Wholesale Services (EWS), an aid of IT tools already operating across various countries. electric products distributor based in New the Group. The company redeployed its South Wales (NSW) that supplies MRO field sales force, sustaining a high level (Maintenance, Repair and Operations) of activity throughout the year, while at equipment, joined Sonepar Asia-Pacific the same time implementing a branch INDONESIA in 2013. remodeling plan. MILLION EUROS IN SALES In 2014, Corys Electrical will be conti- 8 FANAH JAYA nuing in both directions. CHIN HON LIM

In 2013, Fanah Jaya was confronted with a downturn in Indonesia’s telecom market.

Its focus in 2014 will be to develop its lighting and MRO (Maintenance, Repair and Operations) business.

Corys, Penrose, New Zealand.

41 MALAYSIA SINGAPORE THAILAND MILLION EUROS MILLION EUROS MILLION EUROS IN SALES IN SALES IN SALES 151 HAGEMEYER MALAYSIA 43 HAGEMEYER SINGAPORE 61 DEP HON WENG LEONG CÉLINE LOH SUCHART BANDITHSUWAN KVC INDUSTRIAL SUPPLIES CABLE SOLUTIONS HAGEMEYER THAILAND FRANCIS SA LAWRENCE TAM WANNAPORN BOONLUKA OAKWELL DISTRIBUTION SONIC AUTOMATION BENG TIN LOW SUROTE PANASAHATHAM

KVC, the Group’s leading brand name in Malaysia, consolidated its market lea- Sonepar’s operating companies Cable dership by enhancing its product offering Solutions and Hagemeyer Singapore GROWING AND INVESTING IN THE in the projects it carried out. Geographic experienced outstanding business FUTURE coverage and customer mix both impro- growth in 2013, with Hagemeyer Singa- The Thai economy was hurt by apprecia- ved during the year. The entities acquired pore winning important contracts. Hage- tion of the Thai baht just as the yen was in 2012 (Electplus, SeeWide PJ and Top meyer Singapore invested in a major losing ground (Japan being the leading Building Supplies) were successfully warehouse a short distance across the foreign investor in the country), particularly integrated. border in Malaysia and can now supply in the first six months of 2013. its expanding international customer Hagemeyer Malaysia posted higher base more effectively, while contributing Sonepar’s three main operating compa- results in 2013 and signed major new to the country’s future growth. nies in Thailand—Hagemeyer Thailand, contracts with large international manu- an MRO (Maintenance, Repair and Ope- facturers. Oakwell Distribution, a leader in the rations) supplier, Sonic Automation, an supply of electrical, mechanical pro- automation equipment provider, and DEP, ducts and services to Asia’s offshore oil electrical products distributor—all enlisted and gas industries, has joined Sonepar, their staff to increase market differentia- effective October 31, 2013. tion through enhanced customer service. Hagemeyer Thailand rolled out a new e-business solution, DEP opened another branch to extend its geographic footprint and Sonic Automation invested in recrui- ting new talent to provide more sales assis- tance and expertise to customers.

INITIATIVE

Geographic expansion in Thailand its first distribution center at Khon Kean, DEP, an electrical products distributor in Thailand’s booming Northeast. The present in the Bangkok area for over company will be expanding to other 20 years, joined the Group in 2012. parts of the country in 2014. Less than one year later, DEP opened

42 In acquiring the Oakwell Group, Sonepar GREATER CHINA Hagemeyer China, Fengruite, Hite and gained entry to markets in both South Foshan Shunching Supermoon entities Korea and Vietnam, where it serves cus- DAVID YUNG catering to panel builders and OEM’s tomers in the oil and gas industries. (Original Equipment Manufacturers), also enjoyed buoyant growth in 2013. In September 2013, David Yung joined SOUTH KOREA Sonepar as Greater China President In addition, these operating companies with responsibility for Sonepar’s enhanced their geographic coverage, BENG TIN LOW business in the People’s Republic of thanks in particular to the Go West China, Hong Kong and Macao. strategy pursued by Hagemeyer China to more effectively cover the fast-growing western part of the country.

PEOPLE’S Electric Fever China, a cable and wire VIETNAM distribution company established in REPUBLIC OF 2012, had a very good year in 2013. BENG TIN LOW CHINA MILLION EUROS Elektroskandia China, a supplier of kits IN SALES to wireless carriers, continued to assist its 384 customers with 4G network deployment. DAVID YUNG

SUCCESSFUL DIVERSIFICATION HONG KONG Witjoint Automation, an industrial auto- mation wholesaler, had a record year in & MACAO 2013. By distributing a broad range of MILLION EUROS related electrical products for industry, IN SALES Witjoint consolidated its position as spe- 37 cialist in automation equipment. ALVIN MOK This successful diversification strengthe- ned the company’s status as an essen- tial electrical supplier to its customers. Supermoon maintained its drive to conquer the lighting segment through large-scale programs, winning both new projects and contracts. Marketing has been strengthened to support these initiatives.

Supermoon, Hong Kong.

43 SOUND CORPORATE GOVERNANCE

SONEPAR’S FAMILY SHAREHOL- SONEPAR recommendations on the results. It also DER BASE IS A KEY STRENGTH, GOVERNANCE carries out an annual review of each of GUARANTEEING THAT THE GROUP BODIES Sonepar’s four regions in the presence of MAINTAINS ITS VALUES AND the Regional president. The Group’s sup- INDEPENDENCE. AT SONEPAR, COR- port and head-office functions are likewise SHAREHOLDERS’ MEETING PORATE GOVERNANCE SERVES TO reviewed. Thanks to the high-quality, fully FURTHER COLLECTIVE GOALS AND As the primary forum for exchanging transparent work performed by general STRENGTHENS THE GROUP’S WILL information on the Group’s business, management and the wealth of details AND ABILITY TO ADAPT. shareholders’ meetings give Sonepar’s available for each business line, the THE CHANGES ACCOMPLISHED indirect shareholders—family members Board of Directors can anticipate and later IN 2013 WERE ALL PART OF THIS and executives who own shares through approve any strategic directions proposed. ONGOING EFFORT: THE ROLES OF Sonepack and Sonedis—the opportunity As the Board’s natural connecting link, the CHAIRMAN AND CHIEF EXECUTIVE to question General Management about Executive Chairman has access to any fur- OFFICER WERE SEPARATED, THE corporate strategy. In addition to enabling ther information or analysis that she may SONEPAR EXECUTIVE COMMITTEE Colam Entreprendre, the majority family deem useful to her work. WAS GIVEN GREATER SCOPE, THE shareholder, to vote, shareholders’ mee- CORPORATE GOVERNANCE CHARTER tings include lively discussions that benefit As in large publicly listed companies, the WAS OVERHAULED, THE BOARD OF everyone. Board draws upon the work performed DIRECTORS ADOPTED NEW RULES by two committees, the Audit Committee OF PROCEDURE, AN INTERNAL AUDIT THE BOARD OF DIRECTORS AND ITS and the Compensation Committee. This CHARTER WAS DRAFTED. COMMITTEES enables the Board to make decisions comfortably on even the most sensitive CORPORATE and complex issues. For example, the Audit GOVERNANCE The Board of Directors is composed of figures from the business world, family Committee has worked on major risks and entrepreneurs, and former Sonepar execu- the quality of internal controls. The Com- GROUP GOVERNANCE CHARTER tives. Meeting at least once each quarter, pensation Committee paved the way for the Board thoroughly examines Group per- the adoption of an appropriate executive

OPERATIONAL formance with the help of reliable repor- compensation policy and helped design GOVERNANCE ting tools and makes observations and Associate Shareholding Plans.

44 SOUND CORPORATE GOVERNANCE

Honorary Chairman: Henri Coisne, Chairman: Marie-Christine Coisne-Roquette, Board members: Michel Bon, Henri Paul Coisne, Stéphane Coisne, Denis Gonseth, Frank H. Lakerveld, Paul-René Lambert, Christian Maurin, José Menéndez, José Pena Rich Möller, Olivier Verley.

GENERAL MANAGEMENT INTERNAL AUDIT ment, particularly in relation to controls The Chief Executive Officer has extensive The internal audit group has been tas- and compliance, since the Group’s inter- powers for successfully directing Sonepar’s ked by the charter adopted in 2013 with nal control work relies on their input. business in accordance with the Group’s identifying and measuring the main development strategy, its values and rules operational risks confronting the Group, DEVELOPMENTS IN 2014 of security. making suggestions on how to prevent and reduce those risks and ensuring the The Group is rolling out the Sonepar SONEPAR’S GOVERNANCE reliabililty of its figures. Its audit assign- Governance Corpus, which encom- CHARTER ments are monitored and followed up passes Sonepar’s Governance Charter, with recommendations to general and Mission Statement and Mission Letter. Updated to reflect the Group’s new struc- local management. The internal audit ture, the Governance Charter embodies group now has a larger staff, both at the José Menéndez, whose term of office on Sonepar’s philosophy and upholds tried- Sonepar head office and in the various the Board of Directors has come to an end, and-tested management principles. countries, enabling it to implement an has chosen not to seek a new term. The It sets forth the respective rights and ambitious audit program (72 assign- Board of Directors wishes to thank him duties of each governance body, the ments in 2013). for his powerful, effective commitment shareholders and the operational mana- to the Group over the last forty years. As gers. Furthermore, the Charter calls upon OPERATIONAL MANAGEMENT an executive, he collaborated with Henri managers to adopt virtuous behavior, for Coisne in defining Sonepar’s values, example by avoiding any acts or deci- Due to Sonepar’s decentralized struc- helped drive its international expansion, sions that they might find hard to uphold ture, operational managers have been and worked to ensure effective family in public, and upon all associates to given responsibility for developing Group succession. As a Board member, he question their superiors whenever they sales activity—and they do so by levera- enriched the work of the Board with his have doubts. ging best practices that have proven to experience and business knowledge and be effective. In return for the trust placed chaired the Audit Committee until 2011. in them, Sonepar expects operational managers to show unflagging commit-

45 INTERNATIONAL PRESENCE OF SONEPAR

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47 MAJOR PROJECTS AROUND THE WORLD

Odeon Tower, Monaco, Cecci, Cabus et Raulot (appliances).

Volkswagen concession, Ingolstadt, Germany, DEG (cable, installation material, lighting).

48 Qingcaosha water reservoir, Shanghai, China, WitJoint (medium voltage variable frequency drive).

Leiden University College, The Hague, Netherlands, Technische Unie (solutions and onsite intelligent logistics device).

Exxon Mobil Corporate Campus, Houston, USA, Crawford Electric (lighting and accessories, electrical conduits).

49 Bantrel Surmont SAGD mine, North Alberta, Canada, Texcan (cable).

Hospital Angeles, Puebla, Mexico, Sonepar Mexico (cable and accessories, Ritz Hotel, Paris, France, energy transformation and distribution). Franco Belge (cable, appliances).

Cruise Terminal Kai Tak, Hong Kong, Supermoon (lighting and installation material).

50 United Nations Headquarters, New York, USA, Airbus Hall 225, Hamburg, Germany, Cooper Electric Supply (lighting, building Sonepar Deutschland (lighting). technical management, safety).

Government office, Hong Kong, Supermoon (lighting and installation material).

51 Published by Sonepar Group Communications • May 2014 • Produced by Caribara Communication www.caribara.com • Photo credits: Dominik Obertreis, Philippe Gérardin & Franck Marcelin & Franck Philippe Gérardin Dominik Obertreis, credits: • Photo www.caribara.com Communication Caribara by • Produced 2014 • May Communications Sonepar Group Published by

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