16.3 - Sonepar

2013
SONEPAR IS THE WORLD’S NUMBER ONE B-TO-B DISTRIBUTOR
OF ELECTRICAL PRODUCTS AND RELATED SOLUTIONS
38
COUNTRIES
45
YEARS OF EXPERTISE
190
ENTITIES
2,300
BRANCHES
MARIE-CHRISTINE COISNE-ROQUETTE, EXECUTIVE CHAIRMAN 2
A DYNAMIC GROUP 4
FRANCK BRUEL, CHIEF EXECUTIVE OFFICER 6
SONEPAR EXECUTIVE COMMITTEE 8
FINANCIAL COMMENTARY 10
NEWS FROM THE REGIONS 12
PASSION FOR YOUR BUSINESS 14
CLOSE TO OUR CUSTOMERS 16
SUPPLIERS OF CHOICE 18
36,000
ASSOCIATES
207,000
ORDERS PER DAY
WOMEN AND MEN WITH COMMITMENT 20
NETWORK DYNAMICS 22
A DECENTRALIZED GLOBAL ORGANIZATION 24
SOUTHERN EUROPE 26
NORTHERN EUROPE 30
NORTH AMERICA 34
ASIA-PACIFIC 38
SOUND CORPORATE GOVERNANCE 42
16.3
BILLION EUROS OF SALES
INTERNATIONAL PRESENCE OF SONEPAR 44
MAJOR PROJECTS AROUND THE WORLD 46
inc.
inc.
MARKETS
NORTH AMERICA
680 branches
36
%
OF SALES
10%
OTHERS
9%
CUSTOMERS
SERVICES &
UTILITIES
27%
INDUSTRY
SOUTHERN EUROPE
815 branches
24
%
OF SALES
PRODUCTS
17%
CABLE
& WIRES
33%
INFRASTRUCTURE
& INDUSTRIAL
AUTOMATION
15%
LIGHTING
6%
HVAC &
RENEWABLE
ENERGY
13%
BUILDING
AUTOMATION &
CONSTRUCTION
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
ASIA-PACIFIC
“ 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. ”
325 branches
8
%
OF SALES
SONEPAR EXECUTIVE COMMITTEE (SEC)
7%
9
%
SAFETY
& TOOLS
SPECIALITIES
& OTHERS
BASED ON THE LONG-TERM VISION OF SONEPAR’S
SHAREHOLDERS, THE SEC HAS ESTABLISHED FOUR
GUIDING PRINCIPLES FOR SUSTAINABLE AND
RESPONSIBLE OPERATIONS.
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
Who we are
2013 was a tough year in the electrical products
distribution business. But, as always, Sonepar
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.
Sonepar is an independent, family-owned group focused
on B-to-B distribution. We thrive on our unique balance
of local empowerment and global reach.
2013 was also a transitional year for our Group—
in terms of corporate governance. That transition
has gone well. Today, Franck Bruel, our Chief
Executive Officer, and the Sonepar Executive
Committee effectively direct operations with the
support of our shareholders through our family
holding company Colam Entreprendre.
What we do
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
for every single associate. Because our history is
a vital asset for developing our business, we are
lucky to have it. What should also be confirmed is
that all our people have taken on board our Group’s
new organizational approach and philosophy,
thanks to our Sonepar Governance Corpus,
which encompasses our Governance Charter, our
Mission Statement and our new Mission Letter,
presented in these pages.
But above all, 2014 will be a year of major ambition
for Sonepar and its associates. We will be setting
out to conquer new markets, so that together we
can meet the challenges that lie ahead.
Our job is to make our customers’ lives easier,
so we dedicate ourselves to understanding
and satisfying their needs. While our core business is
in the electrical market, we serve customers through
multiple channels of distribution, with an expanding
range of products, services and solutions.
What we believe
We drive our long-term, profitable and sustainable
growth by:
•S
triving for lasting loyalty from our
Customers
•S
ecuring the engagement of our skilled and
passionate Associates
•B
uilding strong partnerships with our
preferred Suppliers
•A
ligning ourselves with the vision and
commitment of our Shareholders
What we want
To become La Référence for all our stakeholders.
5
Sesco, Toronto, Canada.
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,
maintaining or even improving our market share in 2013. We
owe our performance to the trust our customers have placed
in us, the enthusiasm of our teams, and the involvement of our
suppliers. Our 2013 sales were on par with 2012.
Our autonomous growth fell 1%, but the many initiatives and
innovations launched across all regions created effective
growth drivers that more than offset the negative impact
of contracting markets, the price of copper, and exchange
rates. The recession has taken more of a toll on Northern
and Southern Europe and Australia than it has on Asia and
North America, where various factors contributed to stronger
performance, especially in the second half of the year.
We concentrated on adapting to the market. This enabled
us to take the decline in earnings in stride and guarantees
our independence and longevity. Large-scale efforts were
deployed to trim operating costs, especially in Southern
Europe, and maintain our profitability.
A number of high-impact projects are under way in areas
such as IT, logistics, e-business and branch design. Each
aims to improve performance now and over the long-term.
We have developed our cross-business services to respond
more effectively to market expectations. And we have hired
more management staff in the Asia-Pacific region and
created the positions of Group General Counsel and VP
Group Communications. Furthermore, we continue to invest in
training, not only to help our associates advance and develop
our talent in sales and management, but also to guide our
customers through changes in standards and techniques.
16.3
BILLION EUROS
OF SALES
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.
We would like to thank our teams who have contributed to
this day-to-day success for their creativity, commitment and
enthusiasm.
With the trust gained from Marie-Christine Coisne-Roquette
and the Board of Directors, we have begun working with
the Sonepar Executive Committee (SEC) to put the vision
expressed by the family shareholders into action by
updating the Mission Statement, originally drawn up in
2000. We have also drafted a version to apply to operations:
a Mission Letter addressed to our managers that sets out
the four pillars of our development, while leaving room for
a wide variety of initiatives and reaffirming the value of our
diversity. We expect the environment in 2014 to be similar
to that of 2013.
Our priorities remain the same. Our goals to surpass
market growth, serve customers more effectively and set
standards as “La Référence” in our sector remain intact.
At the same time, we will continue to carefully monitor
costs while upholding our action plans launched in 2013
to reach our productivity goals. In 2014, we will also be
investing the largest budget in our history. This clearly
shows how confident we are in the future, reflecting
both our entrepreneurial drive and the trust of our family
shareholders.
98
%
OF THE SALES ARE MADE IN
THE 27 COUNTRIES WHERE
SONEPAR IS NUMBER 1, 2 OR 3
9
HEADED BY CHIEF EXECUTIVE OFFICER FRANCK BRUEL, THE SONEPAR
EXECUTIVE COMMITTEE (SEC) IS
THE GROUP’S SUPREME EXECUTIVE
BODY. TOGETHER WITH THE BOARD
OF DIRECTORS, THE SEC SETS
SONEPAR’S STRATEGY AND GOALS
AND SHAPES ITS FUTURE DIRECTION.
IN 2013, THE SEC UPDATED THE
SONEPAR MISSION STATEMENT AND
PRODUCED AN OPERATIONAL VERSION FOR GROUP MANAGERS CALLED
THE MISSION LETTER.
“La RéféRence”
10
SONEPAR EXECUTIVE COMMITTEE
AN INTERNATIONAL PRESENCE
The SEC’s eight members are from five different national backgrounds, attesting to the
Group’s international scope. In concert with
the Executive Chairman, the SEC defines the
strategic focus and objectives for Sonepar.
The SEC members are :
• Franck Bruel, Chief Executive Officer
• François Poncet, Chief Financial Officer
• Patrick Salvadori, Johan Verbeek,
Dave Gabriel and Keith Moss,
Region Presidents
• Herbert Willmy, Executive VP,
Global Sourcing & Services
• Pierre Soussand, Senior VP,
Group Human Resources
The Group’s decentralized structure makes
it all the more essential for the SEC to
ensure the success of work in the field and
its conformity with those broader objectives.
As a first communication channel, the SEC
is a crucial contributor to Sonepar’s diversity.
“LA RÉFÉRENCE”
The SEC establishes organizational rules
and procedures for the entire Group and
ensures that they are upheld. It also facilitates internal audit assignments, whose
purpose is to verify the relevance and
implementation of those rules and procedures. Its members, who are either regional
or functional managers, head the Sonepar
international committees.
Based on the long-term vision of Sonepar’s
shareholders, the Sonepar Executive
Committee has established four guiding
principles for sustainable and responsible
operations. They are what underpin
our shared ambition of becoming
“La Référence” for all our stakeholders:
Customers, Associates, Suppliers and
Shareholders.
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
DECENTRALIZED ORGANIZATION
Based on the clearly defined powers
allotted to it in the Sonepar Governance
Charter, the SEC produced a Mission
Letter in 2013. The Mission Letter inclu­
des the Group’s values and summarizes
the key components of Sonepar’s
business and business development.
It translates into operational terms the
basic principles set forth in the Mission
Statement. As a reference work for all
Sonepar entities, the Mission Letter
provides all Group managers with the
means to act in support of sustainable
and responsible operations, based on
four guiding principles. Last of all, it
restates the Group’s ambition to become
“La Référence” for its business partners,
while nurturing its considerable diversity.
BEING OUR CUSTOMERS’
FIRST CHOICE
Sonepar strives to be the business partner
its customers can’t do without—by making
life easier for them and anticipating their
expectations. A market leader like Sonepar
must set standards of excellence for the
industry. In doing so, the Group promotes
innovation and supports its suppliers.
OUR PEOPLE MAKE THE
DIFFERENCE
Guided by its underlying values, Sonepar
invests in developing the skills of its
people and constantly seeking out new
talent. The Group considers on-the-job
safety essential and upholds that principle
across its entire workforce. Sonepar aims
to be an employer of choice.
BORN
TO GROW
Sonepar’s growth cannot be viewed in
isolation from the growth of its stakeholders. In all its distribution channels and
in all its target markets, the Group builds
density through a combination of organic
and acquisition growth.
SUSTAINABLE
PROFITABILITY IS
FUNDAMENTAL
Sonepar continually invests in its organization to give its customers and suppliers
the benefit of consistent and sustainable
operational excellence.
By leveraging experience and best practices from across the Group, Sonepar
boosts growth and drives profitability.
11
FRANÇOIS PONCET
2013 was a year of economic slowdown
around the world, particularly in Europe.
The positive impact of acquisitions and
the many initiatives undertaken within
Sonepar made it possible to offset a
modest 1% decrease in autonomous
growth, lower copper prices and an unfavorable exchange rate for the euro. As a
result, the Group kept annual sales up at
€16.3 billion.
Although the lackluster economy pushed
earnings down, Sonepar still managed
to put its finances on a sounder footing,
reducing its debt and improving its financial ratios after distributing €136 million
in dividends. Thanks to a healthy balance
sheet combined with long-term ambition, the Group is in a position to invest
more than ever before in 2014.
In 2013, Sonepar arranged for greater
financing by securing both bank and
non-bank loans of over €600 million,
bringing its committed loan facilities to
a total of €3 billion. Our medium- and
12
CHIEF FINANCIAL OFFICER
long-term access to that kind of funding
gives us the leeway we need to keep our
business growing.
Apart from a few local facilities, our
centrally-run treasury department holds
all of the Group’s financial resources
and manages automated cash pooling,
which is operational in most Sonepar
countries.
As part of its drive for constant progress, the Group produces reporting and
consolidation work monthly for actual
results and on a quarterly basis for
forecasts in order to give Sonepar executives “precision tools” for managing a
business with increasing scope.
The annual consolidated financial
statements, which are audited by the Audit
Committee and certified by the statutory
auditors, are drawn up in accordance with
IFRS. This enables the Group to use these
international standards as a common
financial management language.
Sonepar’s policy is to take calculated risks
that do not jeopardize its current business
or its long-term viability. To achieve its
growth targets while maintaining the
efficiency of a decentralized organization,
the Group has strengthened its internal
control function. Internal control standards
involve a self-assessment process that is
facilitated by the use of common software
for monitoring purposes. Sonepar’s
internal audit work has also been stepped
up. The aim is to ensure not only that
assignments are successfully carried out,
but that internal audit recommendations
are followed.
WITH EXPECTED GROWTH IN
NORTH AMERICA AND ASIA IN 2014,
OUR GROUP WILL BE TAKING FULL
ADVANTAGE OF ITS SOUND FINANCIAL UNDERPINNINGS TO SUSTAIN
ITS GROWTH WITH CONFIDENCE
AND DETERMINATION.
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
BILLION EUROS IN 2013
12.8
4.3 4.8
7.7
6.6 6.6 7.0
5.8 6.4
9.4
10.5
11.9
14.7
13.4
1998
16.3 16.3
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
COMMITTED CREDIT LINES
23
C.DE
22
C.DE
21
C.DE
20
C.DE
19
C.DE
18
C.DE
17
C.DE
16
C.-
C.DE
DE
15
LIABILITIES
14
C.DE
DE
C.-
13
ASSETS
GROSS FINANCIAL DEBT EXCLUDING ACQUISITIONS
31 DECEMBER 2013 FIGURES
13
NEWS FROM THE REGIONS
SOUTHERN
EUROPE
In response to a troubled economic
climate in Europe, the Southern Europe
region went on reorganizing its structures
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
business lines.
NORTH
AMERICA
North America is building a world-class
organization by growing organically,
investing in acquisitions, innovative
services and solutions, the development
of our people, and hiring the best talent.
In the years to come, we will continue
to focus on becoming “La Référence”,
setting the standard in all of our markets
for our customers and suppliers.
14
PATRICK SALVADORI,
REGION PRESIDENT
3.9 billion euros
815 branches
Belgium
Brazil
France
Italy
Monaco
Romania
Spain
24
%
OF SALES
DAVE GABRIEL,
REGION PRESIDENT
5.8 billion euros
680 branches
Canada
Dominican Republic
Mexico
Panama
Puerto Rico
Trinidad and Tobago
USA
36
%
OF SALES
NORTHERN
EUROPE
With business trending downward in
our mature markets, we focused in 2013
on innovative solutions that make life
easier for our customers, delivering increasingly tailored, effective service. To sustain
growth in 2014, we will be combining
innovation, expertise, and top-quality service—something our associates already
achieve on a day-to-day basis!
ASIAPACIFIC
“Building Tomorrow Today” was the region’s
strategic development theme for 2013, which
was a pivotal year in our long-term plan to
become the dominant electrical distributor
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
investment in strategic acquisitions.
JOHAN VERBEEK,
REGION PRESIDENT
5.2 billion euros
480 branches
Austria
Czech Rep.
Estonia
Finland
Germany
Hungary
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Sweden
Switzerland
32
%
OF SALES
KEITH MOSS,
REGION PRESIDENT
1.4 billion euros
325 branches
Australia
China
India
Indonesia
Malaysia
New Zealand
Singapore
South Korea
Thailand
Vietnam
8
%
OF SALES
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
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
HIGH VALUE-ADDED ADVICE.
CLOSE TO OUR CUSTOMERS
Sonepar offers the best products and
solutions that are fine-tuned to customer
needs, along with a variety of order and
delivery options for all customer categories, from individual contractors to large
installation companies and from industrial firms to end users. Customers can
place orders at branches, over the phone,
via webshops (even from smartphones
and tablets), or by direct Electronic Data
Interchange (EDI), e-procurement and
punch out.
B-TO-B CUSTOMERS
IN ALL SECTORS
In addition to conventional delivery
(pick-up at branches, delivery to customer
premises or worksites), Sonepar offers
new options, including onsite vending
machines, standard inventory items
delivered in secure containers, and
temporary branches at worksites. Such
solutions are continually updated to
accommodate changing techniques
and customer needs. Merchandising at
branches is optimized regularly thereby
constantly enriching the onsite experience
(showcasing new offers, providing product
information, introducing new solutions)
and offering increasingly relevant
technical and commercial advice.
27%
10%
INDUSTRY
54%
INSTALLERS
18
OTHERS
9%
SERVICES
& UTILITIES
INITIATIVE
BlueWay—the Sonepar
sustainability reference
Sonepar Group entities around the
world market energy-saving and energy
efficiency products under the BlueWay
label. Four product categories have
been designated: lighting; heating,
ventilation, and air conditioning;
industry; home automation. ADEME
(the French Environment and Energy
Management Agency) assists Sonepar
France in setting performance criteria
for products to qualify for this label.
At the same time, suppliers have
committed to an eco-design approach.
Sonepar France has also linked
up with the French Occupational
Therapy Association to roll out a
BlueWay Mieux Vivre (Better Living)
product range designed to provide
greater accessibility and to empower
individuals with impaired mobility.
B-TO-B DISTRIBUTOR OF ELECTRICAL
PRODUCTS AND RELATED SOLUTIONS
INITIATIVE
Onsite station, Sonepar Deutschland, Ratingen, Germany.
A SOLUTION-DRIVEN NETWORK
SKILLED AND PASSIONATE PEOPLE
Sonepar identifies and selects the
equipment and solutions best suited
to each market and then makes them
available through its network. With the
support of technical specialists, sales
engineers at Sonepar branches help
customers arrive at effective technical
solutions relevant to their needs, adding
considerable value to projects of any scope
and in any area (e.g. lighting, HVAC, energy
efficiency, automation). Finally, alongside
Sonepar’s full-service companies are
entities focused on providing cable and
wires, datacom solutions, HVAC equipment,
and other equipment.
In keeping with company values,
the 36,000 Sonepar associates are
dedicated listeners who respect customer
concerns. These responsive and creative
company members work passionately
on a daily basis to make life easier for
their customers. Moreover, Sonepar’s
commitment to service is a long-term affair
that fosters strong customer loyalty—in
some cases over several generations.
Job-related training likewise ensures that
all Sonepar associates keep up with the
latest developments in their line of work.
Sonepar also offers technical training to its
customers.
inc.
• Wiring Devices
• Alarms and Safety
• Home Automation
• Heating, Ventilation and Air
Conditioning (HVAC)
• Indoor and inc.
Outdoor
• Lighting
• Cable and Wires
• Protection
• Photovoltaic Energy
• Industrial Automation
• Cable
• Power Distribution
• Control
• Lighting
• Safety
• Enclosures
• Tools and Consumables
inc.
• Wiring Devices
• Alarms and Safety
• Heating, Ventilation and
Air Conditioning (HVAC)
• Cable and Wires
• Building Automation
• Lighting
• Voice-Data-Image (VDI)
• Networks
• Network Cable
• MV/LV Switchgear
•D
istribution and
Substation Cabinets
• Distribution Transformers
• Accessories
“What can we do for you
today?”
Sonepar companies do everything
they can to meet the needs of their
customers and make their lives
easier. Options for product delivery
and availability are continually
updated as expectations evolve.
For example, Sonepar Deutschland
delivers electrical products, personal
protective gear and consumables
directly to installers at construction
sites in secure containers, whether
the orders are placed online or from
the worksite.
A similar approach to distribution,
termed Customized Project
Packaging, has been developed
in Sweden at Elektroskandia
Sverige. To enhance convenience
for customers, several subsidiaries
have created networks of “satellite”
branches, as in Poland and France.
Likewise, to save valuable time for
customers working at downtown
construction sites, city shops have
been opened in Finland, France,
Latvia and Norway. And finally,
Sonepar entities in Mexico, Canada
and Asia have installed vending
machines directly on the premises
of their industrial customers.
19
SUPPLIERS OF CHOICE
SONEPAR IS A HIGH VALUE-ADDED
DISTRIBUTOR OFFERING TRUSTED
GLOBAL BRAND NAMES AND
RECOGNIZED LOCAL PRODUCTS
TO ITS CUSTOMERS. SONEPAR
ASSOCIATES HAVE THE EXPERTISE
REQUIRED TO SELECT SUPPLIERS
WHO DELIVER MAXIMUM
RELIABILITY, SAFETY AND PRODUCT
SOPHISTICATION. IN EACH OF ITS
MARKETS, THE SONEPAR NETWORK
STRIVES TO BE “LA RÉFÉRENCE”—
SETTING THE STANDARD FOR THE
QUALITY AND PERFORMANCE OF
ALL PRODUCTS, SOLUTIONS AND
SERVICES ON OFFER.
GLOBAL PARTNERSHIPS
SUPPLY-CHAIN EFFICIENCY
Sonepar maintains long-term partnership
ties with its suppliers. When manufacturers entrust the distribution of their
products to Sonepar, they know they are
gaining access to a network of branches
spanning 38 countries and a sales and
technical staff capable of promoting
their offers. The Group takes part in new
product launches and helps its partners
identify and anticipate market expectations and customers’ needs. Sonepar
works with them to develop action plans
designed to facilitate the dissemination of
their innovations to the various markets.
Around the world, Sonepar adjusts its
supply-chain structure to market needs
and characteristics and guarantees
that its customers enjoy accurate and
on-time delivery. The Group continually
invests in its logistics systems to provide
first-class service and delivery methods
tailored to specific project requirements
and technological configurations. Its
experts work on optimizing the supply
chain to offer top-quality service at a
reasonable price.
NorthEast Electrical Distributors, Boston, USA.
A WIDE SPECTRUM OF PRODUCTS
33%
6%
INFRASTRUCTURE &
INDUSTRIAL AUTOMATION
HVAC &
RENEWABLE
ENERGY
9%
SAFETY
& TOOLS
Sonepar constantly strives to adjust to customer
needs, distributing a broad range of products
selected from suppliers of choice.
17%
CABLE & WIRES
20
15%
LIGHTING
13%
BUILDING
MANAGEMENT
7%
SPECIALITIES
& OTHERS
“ENERGY SAVING WEEK”
Since 2011, Sonepar has been holding
an annual Group-wide sustainable
development event called “Energy
Saving Week” (ESW). In the course
of that week, Group companies in
different countries implement a variety
of initiatives to promote energy-saving
products and solutions, raise awareness
and educate customers and associates
about energy efficiency, recycling and
more. Encouraged by success in the
previous years, Sonepar USA expanded
the scope of the concept in 2013 with a
month-long program of “Energy Saving
Weeks”. Each country organization
designs its own ESW activities,
ranging from customer conferences
and seminars to BlueWay product
promotions and internal contests with
awards for the best ideas.
Join Sonepar in Sustainable
Development Leadership
SONEPAR INTERNATIONAL SERVICES
Sonepar International Services (SIS) provides both internal service for Group
companies and external service for supplier partners. SIS also analyzes market
segments to guide suppliers and all Sonepar operating companies in their
growth.
SIS, Product Management Teams (PMT) and the International Supplier Committee (ISC) identify, select and promote innovative products and services.
After upgrading international PMT structures (from global to regional) and
re-segmenting products in 2013, the Group now has a clearer view of markets
and can roll out business initiatives that make a difference at the local level.
SIS has further refined its tools for scanning the environment and provides its
partners and Group operating companies with both ad hoc and periodic studies (Watson online survey) to, for example, assess service quality and survey
customer needs and expectations.
The range of market analysis services offered by SIS has helped our international partners grow faster than other suppliers.
INITIATIVE
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
IS ALL ABOUT SHARING AND
INTERACTING—THAT’S WHY HUMAN
RESOURCES ARE A KEY COMPONENT
OF SONEPAR’S DEVELOPMENT.
SONEPAR: EMPLOYER OF CHOICE
To a large extent, Sonepar owes its status as “La Référence” (standard-setter) in
B-to-B electrical equipment distribution
to the skill, passion, efficiency and professionalism of its 36,000 associates.
Integrating newcomers and imbuing
them with the Group’s values are a key
day-to-day concern.
PRIORITY STATUS FOR TALENT
DEVELOPMENT
The recruitment drive, employer branding campaign and other initiatives
launched in 2013 were so successful
that they have been continued and
extended to many other countries. Given
the increasing awareness among operational managers and their Human
Resources managers of the need to
DEP, Bangkok, Thailand.
22
recruit and develop talent, the various
country organizations have put in place
their own talent management arrangements geared to local realities. The International Human Resources Committee
(IHRC) has identified the development of
such arrangements as a priority objective for 2014.
SONACADEMY: A SUCCESSFUL
TRAINING INITIATIVE
Sonepar places a premium on training
to instill an entrepreneurial mindset,
encourage managerial ability, develop
skills and more. In 2013, the Sonepar
Leadership Program (SLP), one of the
key programs established by the Group’s
corporate university Sonacademy, completed its third year. More than a simple
training program, it has become an
important tool for building cohesion
within Sonepar.
ASSOCIATE SHAREHOLDING: LONGTERM DEVELOPMENT
The desire of shareholders to give managers a stake in their company and a portion of the value it creates is very much a
reality at Sonepar. Over the past several
years, the Group has offered its managers a variety of Associate Shareholding
Plans. The first beneficiaries of Fidelity
Share Plans acquired stock in 2013.
Under a variety of programs, several
thousand associates currently hold
shares, either outright or in the form of
stock options.
INITIATIVE
An intergenerational alliance
in Italy
To ensure that know-how gets passed
on and that tomorrow’s associates
receive adequate training, Sonepar
Italia has initiated a program called
the “Intergenerational alliance”
to foster connections between
experienced associates and
newcomers to the organization. “Duos”
are formed on a voluntary basis so that
senior managers can prepare younger
colleagues as their successors.
This extremely popular initiative has
energized the entire company and
helped renew its workforce, while
building a powerful sense of belonging.
INITIATIVE
A culture of safety at the Lumen
Distribution Center
Thanks to a policy of educating
associates in workplace health
and safety, the Lumen Distribution
Center in Canada has gone for over
500 consecutive business days with
no injuries (October 2012 to March
2014). Each day, management draws
employee attention to a different
safety issue—an ongoing approach
to training that has fostered a strong
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
VALUES
PASSION
Sustains and heightens daily
on-the-job commitment
NETWORK DYNAMICS
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
TO RELAY INFORMATION FROM
THE FIELD, DISSEMINATE BEST
PRACTICES AND HIGHLIGHT
STRATEGIES AND SOLUTIONS WITH
BOTH LOCAL AND INTERNATIONAL
RELEVANCE.
A NETWORK OF
INTERNATIONAL
COMMITTEES PEOPLE
The key to business growth
SYNERGIES
By learning from each other,
we boost efficiency
PROFIT
Profit is what keeps us free
and independent
24
E-BUSINESS COMMITTEE (EBC)
The EBC supports the development of
e-business by promoting high valueadded solutions and an unmatched
online purchase experience. In October
2013, the Group’s e-business specialists got together to report on projects
underway and market trends. A great
deal was shared constructively.
INFORMATION & COMMUNICATION
TECHNOLOGY COMMITTEE (ICT)
The ICT is responsible for outlining
Group IT strategy and evaluating all
major IT investment proposals. In 2013,
the committee worked on unifying Enterprise Resource Planning (ERP) across
Sonepar companies and developed new
intra-Group communication tools.
INTERNATIONAL FINANCE
COMMITTEE (IFC)
The IFC focuses on supporting operations, developing internal controls, updating reporting and management standards, while working to further optimize
the Group’s financing operations.
INTERNATIONAL HUMAN
RESOURCES COMMITTEE (IHRC)
The IHRC tracks how human resources
are managed in each country, develops shared processes and supports the
Group’s efforts to develop talent.
INTERNATIONAL LOGISTICS
COMMITTEE (ILC)
The ILC assists Group operating companies with supply chain optimization in
their specific markets. At the end of 2013,
a large number of Sonepar logistics specialists met in Washington D.C. to share
the latest achievements and ongoing
projects.
OUR SHARED
VALUES
INITIATIVE
LIM Award 2013: At the behest of the International Logistics Committee (ILC), more
than 60 Sonepar logistics experts from
15 countries met at a four-day Logistics Info
Meeting (LIM) to share experience, learn
about projects in progress, and discover
best practices. At the event, the 2013 LIM
Award went to the L&H Group in Australia
for a supply-chain optimization initiated
program in the West of the country that will
cut customer delivery time by one third.
INTERNATIONAL SUPPLIERS
COMMITTEE (ISC)
The ISC proposes and coordinates international policy for dealing with the Group’s
suppliers, based on guidelines set by the
SEC. The committee assists the suppliers
selected, encourages and supports new
initiatives and gives the Product Management Teams their assignments. In 2013,
the ISC was busy with upgrading its
international structures and with gearing
product segmentation more effectively to
market realities.
PRODUCT MANAGEMENT TEAMS
(PMT)
Under the guidance of the ISC, the PMTs
are a focal point of communication
among specialists from the Group’s main
product lines. In 2013, they were reorganized according to Sonepar regions to
enhance local market penetration.
SONEPAR INTERNATIONAL KEY
ACCOUNTS (SIKA)
CUSTOMER
Provide maximum technical expertise
through strong customer relationships
SIKA offers multi-country Key Account customers a single point of negotiation and
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.
SONEPAR JUNIOR COMMITTEE (SJC)
RESPECT
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
Asia-Pacific.The members meet regularly to
work on case studies assigned to them by
Sonepar’s top management. After spending
the first two years on a regional SJC, they
join the global SJC in their third year.
“LA RÉFÉRENCE”
To be “La Référence”: Both a challenge
and an incentive for all of us to do better SPECIAL-FOCUS BODIES TAX AND INSURANCE
The tax and insurance team is a division
within Sonepar International Services (SIS)
whose role is to make tax expertise available to Sonepar subsidiaries.
FUTURE
Focusing on the future means seizing
every opportunity to ensure that
Sonepar survives and thrives
25
Sonepar Brasil, Sao Paulo, Brazil.
A DECENTRALIZED
GLOBAL ORGANIZATION
26
“SONEPAR BOASTS A WEALTH OF DIVERSITY IN ITS
OPERATING COMPANIES ACROSS THE GLOBE AND TAKES A
LOCAL APPROACH TO ITS MARKETS.”
27
SOUTHERN
EUROPE
REGION PRESIDENT
PATRICK SALVADORI
CEBEO, Lighting showroom, Deurne, Belgium.
28
434
BELGIUM
MILLION EUROS
IN SALES
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
company’s Do-It-Yourself business likewise
had a good year.
Cebeo has continued to invest in ways to
inform, support and serve its customers
more effectively. Further energy will be
devoted to optimizing geographic coverage and developing e-business.
INITIATIVE
A new branch concept in Brazil
To make daily life easier and save
time for installers and small-scale
contractors, Dimensional has
opened a One Stop Shop—a
branch with a dedicated area that
allows customers to view and try
out new products and technologies.
Already operational in the United
States, this sales format offers
a complete range of products
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.
240
BRAZIL
MILLION EUROS
IN SALES
HERVÉ SALMON
In 2014, Sonepar Brasil will be sustaining the momentum with a broader offer
and innovative approaches to promoting
products and solutions.
STRONGER CUSTOMER RELATIONSHIPS
Sonepar Brasil has continued to finetune its organization by encouraging
the dissemination of best practices
across a country with a complex legal
environment. Service has been further
enhanced through greater staff involvement with customer service issues.
Dimensional, Campinas, Brazil.
29
INITIATIVE
NRA Lighting: skill label
The 30 branches that have
received the NRA Lighting skill
label in France and the hundred
or so lighting experts working
for them select and develop
technical and decorative lighting
solutions tailored to each
individual business or residential
project, combining light-fixture
design with engineering
intelligence.
To promote its NRA Lighting skills,
France’s number-one specialist
lighting company, Sonepar France
joined forces with the Réunion
des Musées Nationaux-Grand
Palais (National museums –
Grand Palais) to support the
exhibition “DYNAMO, un siècle de
lumière et de mouvement dans
l’art, 1913-2013”.
All of Sonepar’s full-service
points of sale receive support
from the branches that have
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
2 502
FRANCE
MILLION EUROS
IN SALES
PATRICK SALVADORI
In 2013, Sonepar France maintained
its leadership position in a particularly
troubled market by investing heavily to
enhance customer service.
INVESTING IN CUSTOMER SERVICE
Sonepar France forged ahead with
branch renovation in order to showcase
products and services more efficiently.
Branches were redesigned to meet existing needs and anticipate future client’s
expectations. With the concept of Libre
Accès Pro (free access to professionals),
the company is working to enhance customer traffic flow within the branches,
make life easier for customers and make
information and forms of assistance
more readily available. The success of
the “Elec-City” approach has led to the
opening of a second outlet in central
Paris.
The company has continued to deploy
its skill labels in HVAC and industrial
products, offering customers increasing
support with their projects.
In addition, e-business is rapidly expanding with the help of onsite events,
training, loyalty programs and intense
communication work within the sales
network.
Sonepar France’s Ile-de-France and
Nord-Est regional logistics platforms
are up and running, and will soon be
joined by the Sonepar France Sud-Est
and Sonepar France Sud-Ouest facilities. All are equipped with cutting-edge
technology to optimize order processing
and delivery.
In 2014, Sonepar France will pursue
further innovation to ensure top-quality
customer service. The company will be
focusing in particular on its Lighting label
of excellence through enhanced skill sets,
targeted action plans and better product
assortment. Last of all, an innovative
approach to energy efficiency will be
rolled out.
DYNAMO exhibition, Sonepar France with RMN-Grand Palais, Paris, France.
30
412
ITALY
MILLION EUROS
IN SALES
CARLO MAZZANTINI
INNOVATING IN HARD TIMES
Sonepar Italia has increased its share of
a market trending downward.
Organized into three regions, the company has improved market density in the
three regions that now make up its structure in Italy. A new self-service branch
format has been introduced in the North,
with a skill center and standing exhibition area to facilitate customer access
to innovative services and solutions. In
addition to the structural adjustments
required, new talent has been recruited
to make the sales force as proactive as
possible.
Sonepar Italia will be leveraging the
transformations and projects carried
out in 2013 to achieve strong, targeted
growth in 2014.
12
ROMANIA
MILLION EUROS
IN SALES
DAN GEORGIA
Supported by efficient logistics, ARC
Electronic posted high growth in sales
to both installers and manufacturers,
despite a decrease of about 15% in the
overall market. The addition of a new
branch has given the company better
geographic coverage.
In 2014, there will be additional investments, particularly in e-business.
INITIATIVE
Shining the spotlight on LED
in Milan
In November 2013, Sonepar Italia
inaugurated Light Urban Center
Experience (LUCE) in the city of
Milan. With floor space totaling
200 sq. m., the new center has
capitalized on the experience of
MAT’ Electrique in Lyon, France.
More than 900 products are
exhibited in spaces that recreate the
office, meeting room, hotel room,
display case, or fashion boutique to
demonstrate the real-life potential
of LED lighting.The kick-off event
offered Sonepar experts an excellent
opportunity to assist customers in
designing their lighting plans.
245
SPAIN
MILLION EUROS
IN SALES
LUIS ARCONADA
Even in a market trending downward,
Sonepar Ibérica has sought to build
a denser network and to strengthen its
number-one status through targeted
acquisitions. At the same time, the company has been optimizing its structures
to deliver enhanced customer service
while lowering market access costs.
ADJUSTING TO THE MARKET
2014 will be another year of adjustment
to market needs for Sonepar Ibérica.
To keep pace with customer demand,
new product ranges will be rolled out
at branches in Northwestern Spain, and
subsequently offered across the network.
LUCE, Milan, Italie.
Italy.
31
NORTHERN
164
EUROPE
CENTRAL CLUSTER
STEFAN STEGEMANN
AND HOLGER HECKLE
REGION PRESIDENT
JOHAN VERBEEK
AUSTRIA
MILLION EUROS
IN SALES
ERNEST LEMPERS
STRENGTHENING EXISTING TOOLS
While Sonepar’s performance was in line
with the overall market in 2013, its photovoltaic panel sales soared by more than 30%.
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 Österreich to start 2014 with full confidence.
44
CZECH
REPUBLIC
MILLION EUROS
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
2 361
GERMANY
MILLION EUROS
IN SALES
STEFAN STEGEMANN
AND HOLGER HECKLE
SERVICE EXCELLENCE
Germany’s electrical equipment market
was down 5% in 2013. But Sonepar
Deutschland fared better than its peer
group in this challenging environment,
investing further in logistics (in the
Northwest and the East) and leveraging the boom in products related to
renewable energy and energy efficiency.
Customer events like regional “Sonepar
Partnertreff” trade shows, training programs, and dedicated marketing action
plans all helped give this product range
greater prominence.
INITIATIVE
26
Reusing cable drums
The people at Sonepar
Deutschland Region Süd took
the initiative to innovate, in
cooperation with logistics, by
reusing wooden cable drums
that were previously scrapped
after being used once. The
laser-marked drums are now
recovered at worksites so that
there is less waste to eliminate.
In 2013, more than 5,000 cable
drums were salvaged in this way.
HUNGARY
MILLION EUROS
IN SALES
ZOARD RICHTER
Sonepar Magyarorszàg has maintained
sales volume in a weak market through
promotions, technical training for associates, a strong focus on manufacturing
customers and by holding a Sonepar
tradeshow and road shows. Back-office
optimization likewise supported performance.
In 2014, the company will be further
expanding its geographic coverage.
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
223
SWITZERLAND
MILLION EUROS
IN SALES
NETHERLANDS
DAVID VON OW
In 2013, Sonepar Suisse outperformed
the market with the help of a powerful
e-business tool and a new, innovative
customer loyalty program. At the same
time, back-office reorganization continued and a branch was opened in
Muttenz, near Basel.
As part of its ongoing drive to serve
customers more effectively, in 2014
Sonepar Suisse will continue development of its state of the art e-business
solutions and will deploy a country-wide
supply-chain program.
INITIATIVE
1 092
NETHERLANDS
MILLION EUROS
IN SALES
JAN JANSE AND
JAN FERWERDA
(AS OF JAN. 14, 2014)
ENHANCED LEADERSHIP STATUS
In a market trending steeply downward,
Technische Unie significantly outperformed its peers. The company thereby
enhanced its leadership status and
increased its market share, particularly
by leveraging its new e-business platform (Mijn TU). Ubel, a distributor of
complex valves and accessories, joined
Technische Unie in July 2013.
Focusing increasingly on sustainable development, Technische Unie
expanded its product range with complete systems for recharging electric
Technische Unie:
the e-business benchmark
in the Netherlands
Technische Unie played a pioneering
role as far back as 1998, opening
one of the first electrical equipment
webshops in the Netherlands. In
2013, the company once again took
the lead, creating webshops tailored
to the various customer categories,
from individual contractors to large
installation firms, from industrial
customers to sanitary product
34
vehicles and solar panels. An innovative solar panel planner enables
installers to provide quotes and
directly take orders online. During the
“Energy Saving Week” in May 2013,
Technische Unie equipped all its
branches with the “Wecycle” waste collection system.
OPERATIONAL EXCELLENCE
The supply chain was also upgraded in
2013 to offer better service while reducing inventory, shorten delivery time in
cooperation with suppliers, and facilitate
setup procedures for customers. Five
branches were completely made over
into service centers to meet the expectations of individual installation contractors, including easier access to products
and solutions and extensive technical
advice.
In 2014, Technische Unie will aim for
higher growth and continue to invest
in improved staff quality. Top priorities
include developing business and exploring new markets, e-business, industrial
customers and new services.
installers. These dedicated webshops
were designed in coordination with
customers to ensure their relevance
to each specific type of business. The
result is that website ergonomics and
functionalities, available information,
and product ranges are adjusted to their
target audiences.
These websites translate into added
value for customers, saving them
valuable time and ensuring that they
get the products they need from among
the many thousands of items on offer.
NORDIC CLUSTER
ANDERS WESTMARK
66
BALTIC COUNTRIES
MILLION EUROS
IN SALES
HEIKI LIISER
366
FINLAND
MILLION EUROS
IN SALES
MIKA HÖIJER
A new city shop opened its doors in
downtown Helsinki, and SLO expanded
its head office branch. At the same time,
SLO launched targeted campaigns to
continue with efforts to serve the industrial automation market effectively.
Sonepar has strengthened its position in
all three Baltic countries:
- Estonia: SLO Eesti
- Latvia: SLO Latvia
- Lithuania: SLO Lithuania
The Spring Fair organized by SLO in the
Finnish capital offered an opportunity to
acquaint a large number of visitors and
customers with the latest innovations in
electrical equipment. SLO also took part
in the Network 2013 show held in Tampere and the Helsinki Automation Fair.
Heiki Liiser was appointed as the new
Managing Director of SLO Eesti, effective as of September 1, 2013. He also
became the Baltic countries Managing
Director as of January 1, 2014, following
the retirement of Pekka Syrjäkari.
In 2014, the primary focus will be on
the back-office (particularly the supply
chain) and e-business solutions for customers.
SLO Latvia stepped up its presence in
the energy market and opened a city
shop in downtown Riga. The company
will also enhance its geographic coverage.
SLO Lithuania, which celebrated its tenth
birthday in 2013, has strongly developed
its solar power-related business.
112
NORWAY
MILLION EUROS
IN SALES
LARS HAMBORG
SETTING THE STAGE FOR FURTHER
CONQUEST
A city shop branch was opened in downtown Trondheim, Norway’s third largest
city. The logistics platform is also up and
running and a highly efficient IT system
is now fully operational. Otra Norge has
gained a much deeper footprint in shipbuilding and has been supplying 4G
network radio antenna kits to telecom
carriers. Service business and e-business
sales are also on the rise.
In 2014, the company will continue to
expand its geographic coverage.
99
POLAND
MILLION EUROS
IN SALES
WIESLAW ROMANCZUK
The company continued its drive to create
a denser sales network, opening five “satellite” branches, and promotional campaigns
have boosted sales. The company strengthened its partnership with Schneider
Electric, with eleven branches approved by
the end of 2013. Alfa-Elektro was named
Best Electrical Equipment Distributor in
Poland by a high-profile industry magazine.
In 2014, the company will be further
expanding its geographic coverage. Special emphasis will also be placed on technical training for staff.
638
SWEDEN
MILLION EUROS
IN SALES
ANDERS NORDLÖW
SERVICE AND NEW CONTRACTS
Elektroskandia Sverige has maintained its
number-one position in electrical equipment
distribution. Thanks to high-quality service,
the company has deepened its partnerships
with key accounts and won new multi-year
contracts. A wide variety of initiatives have
been taken under the leadership of a strengthened management team. Branches
have been opened at customer worksites,
highlighting the company’s versatility in
adapting to customer needs as they arise. A
new branch was opened in Nacka, the lighting product range was extended and the
Cylinda domestic appliance range is now
number-two in the Swedish market.
In 2014, the company will be targeting small
and medium-sized installers, while new
branches will be opened to heighten customer convenience.
35
NORTH
AMERICA
REGION PRESIDENT
DAVE GABRIEL
991
CANADA
MILLION EUROS
IN SALES
FRANÇOIS ANQUETIL
GREATER OPERATIONAL AND SALES
STRENGTH
Despite considerable pressure in all
business segments, Sonepar Canada
has maintained its position in the market, thanks to an extended sales network,
new IT infrastructure, operational staff
involvement with suppliers and a stronger leadership team.
Sonepar Canada has contributed to
growth in the mining, gas and oil industries 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 construction 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
369
MEXICO
MILLION EUROS
IN SALES
SONEPAR MEXICO
INITIATIVE
URCESINO PALACIOS BARRO
VALLEN PROVEEDORA
CAMILO KURI
GREATER NETWORK DENSITY AND
HIGHER ADDED VALUE SOLUTIONS
Sonepar Mexico succeeded in increasing overall sales in a difficult environment marked by a reduction of more
than 10% in residential business. That
success was driven by a combination of
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.
Connected vending machines
In Mexico, Vallen Proveedora offers to
install vending machines dispensing
equipment and personal safety gear
on the premises of its industrial
customers. By inserting special chip
cards into the machines, employees
can obtain protective gloves, earplugs,
dust masks and similar items at the
workplace. These high-tech vending
machines are connected to Vallen
Proveedora’s IT system, which
automatically replenishes supplies
and handles invoicing, and to the
customer’s IT system, which tracks
the daily cost per worker and per
department. This experiment has been
successful enough to encourage other
Sonepar companies to follow suit.
In 2014, all Sonepar Mexico warehouses
will be equipped with computerized information management.
By delivering higher value-added solutions, particularly to oil and gas industries 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
4 457
UNITED STATES
MILLION EUROS
IN SALES
DAVE GABRIEL
INVESTMENTS AND NETWORK DENSITY
Even with a slow economy, Sonepar USA
has maintained its market leadership
and increased its sales. The company
has invested in technical services,
e-business, training and logistics. These
investments will continue in 2014, to
improve operational and customer service efficiency, the foundation of sustainable growth.
To meet the growing needs of the oil and
gas industries, Crawford Electric opened
six new branches in Texas and Louisiana.
SOPHISTICATED E-BUSINESS SOLUTIONS
In 2013, pioneering e-business solutions
were introduced to enhance customer
experience, particularly product search
and ordering tools. New related services
such as online quote management and
invoice payment have been rolled out.
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.
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
Viking Electric Supply, Minneapolis, USA.
DEVELOPING TALENT
The Sales & Operations Leadership
Development program accelerated in
2013 to keep pace with training needs
for future managers at Sonepar USA.
NorthEast Electrical Distribution, Boston, USA.
39
ASIAPACIFIC
REGION PRESIDENT
KEITH MOSS
INITIATIVE
4
MILLION EUROS
IN SALES
PER LINDEBERG
ESK India was confronted in 2013 with
a noteworthy slowdown in its core mobile
telecommunications business due to changing legislation. Nevertheless, the company
succeeded in improving results by diversifying its product range and broadening its
customer base.
In 2014 a new business line focused on distributing products and services to industrial
customers will start in the eastern part of
the country, thus creating whole new vistas
for ESK India.
PACIFIC SUB-REGION
ROBIN NORRIS
Making life easier for
installers
In the current troubled economic
environment, Sonepar teams in
Australia have been focusing on
their core markets. They have
launched a host of initiatives
aimed at small- and mediumscale installers, dubbed “NOW”.
This flexible project began with
multiple improvements to the
e-business platform, including
a more powerful search engine,
real-time delivery tracking and
mobile applications. At the
same time, L&H Group created
a pocket-sized catalog listing
the products available at its
branches.
40
INDIA
582
AUSTRALIA
MILLION EUROS
IN SALES
ROBIN NORRIS
The Australian economy slowed considerably in 2013. A large number of mining
industry projects were cancelled or shelved and a number of infrastructure and
public sector investments were postponed.
But despite lower sales, the L&H Group
and its subsidiaries (L&H, Auslec, Pacific
Datacom and Specialized Lighting Solutions) managed to outperform the market.
ADDING MORE VALUE
Substantial investments were made in
2013 to deliver customer service with
higher added value.
L&H and Auslec focused on serving small
and medium-sized installers through the
e-business platform “NOW”. Backing up
that effort was the publication of a series
of catalogs, including a pocket-sized version of the existing catalog called “Branch
in a Book” that includes over 5,000 items.
Electrical Wholesale Services (EWS), an
electric products distributor based in New
South Wales (NSW) that supplies MRO
(Maintenance, Repair and Operations)
equipment, joined Sonepar Asia-Pacific
in 2013.
79
NEW
ZEALAND
MILLION EUROS
IN SALES
STEVE PRIEST
A SUCCESSFUL FIRST YEAR WITH SONEPAR
For Corys Electrical, which joined the
Group at the end of 2012, 2013 was a
transitional year that involved adapting
to Sonepar’s unique culture with the
aid of IT tools already operating across
the Group. The company redeployed its
field sales force, sustaining a high level
of activity throughout the year, while at
the same time implementing a branch
remodeling plan.
In 2014, Corys Electrical will be continuing in both directions.
SOUTHEAST ASIA
SUB-REGION
ALEX CHEANG
The Group’s business in Southeast Asia
was reorganized in 2013. All the operating companies in this sub-region are
now overseen by Alex Cheang, the President of Southeast Asia. This new organization promises to generate greater
synergies between associates in the
various countries.
8
INDONESIA
MILLION EUROS
IN SALES
FANAH JAYA
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
151
MALAYSIA
MILLION EUROS
IN SALES
HAGEMEYER MALAYSIA
HON WENG LEONG
KVC INDUSTRIAL SUPPLIES
FRANCIS SA
KVC, the Group’s leading brand name
in Malaysia, consolidated its market leadership by enhancing its product offering
in the projects it carried out. Geographic
coverage and customer mix both improved during the year. The entities acquired
in 2012 (Electplus, SeeWide PJ and Top
Building Supplies) were successfully
integrated.
Hagemeyer Malaysia posted higher
results in 2013 and signed major new
contracts with large international manufacturers.
43
SINGAPORE
MILLION EUROS
IN SALES
HAGEMEYER SINGAPORE
CÉLINE LOH
CABLE SOLUTIONS
LAWRENCE TAM
OAKWELL DISTRIBUTION
BENG TIN LOW
Sonepar’s operating companies Cable
Solutions and Hagemeyer Singapore
experienced outstanding business
growth in 2013, with Hagemeyer Singapore winning important contracts. Hagemeyer Singapore invested in a major
warehouse a short distance across the
border in Malaysia and can now supply
its expanding international customer
base more effectively, while contributing
to the country’s future growth.
Oakwell Distribution, a leader in the
supply of electrical, mechanical products and services to Asia’s offshore oil
and gas industries, has joined Sonepar,
effective October 31, 2013.
61
THAILAND
MILLION EUROS
IN SALES
DEP
SUCHART BANDITHSUWAN
HAGEMEYER THAILAND
WANNAPORN BOONLUKA
SONIC AUTOMATION
SUROTE PANASAHATHAM
GROWING AND INVESTING IN THE
FUTURE
The Thai economy was hurt by appreciation of the Thai baht just as the yen was
losing ground (Japan being the leading
foreign investor in the country), particularly
in the first six months of 2013.
Sonepar’s three main operating companies in Thailand—Hagemeyer Thailand,
an MRO (Maintenance, Repair and Operations) supplier, Sonic Automation, an
automation equipment provider, and DEP,
electrical products distributor—all enlisted
their staff to increase market differentiation 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 recruiting new talent to provide more sales assistance and expertise to customers.
INITIATIVE
Geographic expansion in Thailand
DEP, an electrical products distributor
present in the Bangkok area for over
20 years, joined the Group in 2012.
Less than one year later, DEP opened
42
its first distribution center at Khon Kean,
in Thailand’s booming Northeast. The
company will be expanding to other
parts of the country in 2014.
In acquiring the Oakwell Group, Sonepar
gained entry to markets in both South
Korea and Vietnam, where it serves customers in the oil and gas industries.
SOUTH KOREA
BENG TIN LOW
GREATER CHINA
DAVID YUNG
In September 2013, David Yung joined
Sonepar as Greater China President
with responsibility for Sonepar’s
business in the People’s Republic of
China, Hong Kong and Macao.
VIETNAM
BENG TIN LOW
Hagemeyer China, Fengruite, Hite and
Foshan Shunching Supermoon entities
catering to panel builders and OEM’s
(Original Equipment Manufacturers), also
enjoyed buoyant growth in 2013.
384
PEOPLE’S
REPUBLIC OF
CHINA
MILLION EUROS
IN SALES
In addition, these operating companies
enhanced their geographic coverage,
thanks in particular to the Go West
strategy pursued by Hagemeyer China
to more effectively cover the fast-growing
western part of the country.
Electric Fever China, a cable and wire
distribution company established in
2012, had a very good year in 2013.
Elektroskandia China, a supplier of kits
to wireless carriers, continued to assist its
customers with 4G network deployment.
DAVID YUNG
SUCCESSFUL DIVERSIFICATION
Witjoint Automation, an industrial automation wholesaler, had a record year in
2013. By distributing a broad range of
related electrical products for industry,
Witjoint consolidated its position as specialist in automation equipment.
This successful diversification strengthened the company’s status as an essential electrical supplier to its customers.
37
HONG KONG
& MACAO
MILLION EUROS
IN SALES
ALVIN MOK
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 SHAREHOLDER BASE IS A KEY STRENGTH,
GUARANTEEING THAT THE GROUP
MAINTAINS ITS VALUES AND
INDEPENDENCE. AT SONEPAR, CORPORATE GOVERNANCE SERVES TO
FURTHER COLLECTIVE GOALS AND
STRENGTHENS THE GROUP’S WILL
AND ABILITY TO ADAPT.
THE CHANGES ACCOMPLISHED
IN 2013 WERE ALL PART OF THIS
ONGOING EFFORT: THE ROLES OF
CHAIRMAN AND CHIEF EXECUTIVE
OFFICER WERE SEPARATED, THE
SONEPAR EXECUTIVE COMMITTEE
WAS GIVEN GREATER SCOPE, THE
CORPORATE GOVERNANCE CHARTER
WAS OVERHAULED, THE BOARD OF
DIRECTORS ADOPTED NEW RULES
OF PROCEDURE, AN INTERNAL AUDIT
CHARTER WAS DRAFTED.
CORPORATE
GOVERNANCE
GROUP GOVERNANCE CHARTER
OPERATIONAL
GOVERNANCE
44
SONEPAR
GOVERNANCE
BODIES
SHAREHOLDERS’ MEETING
As the primary forum for exchanging
information on the Group’s business,
shareholders’ meetings give Sonepar’s
indirect shareholders—family members
and executives who own shares through
Sonepack and Sonedis—the opportunity
to question General Management about
corporate strategy. In addition to enabling
Colam Entreprendre, the majority family
shareholder, to vote, shareholders’ meetings include lively discussions that benefit
everyone.
THE BOARD OF DIRECTORS AND ITS
COMMITTEES
The Board of Directors is composed of
figures from the business world, family
entrepreneurs, and former Sonepar executives. Meeting at least once each quarter,
the Board thoroughly examines Group performance with the help of reliable reporting tools and makes observations and
recommendations on the results. It also
carries out an annual review of each of
Sonepar’s four regions in the presence of
the Regional president. The Group’s support and head-office functions are likewise
reviewed. Thanks to the high-quality, fully
transparent work performed by general
management and the wealth of details
available for each business line, the
Board of Directors can anticipate and later
approve any strategic directions proposed.
As the Board’s natural connecting link, the
Executive Chairman has access to any further information or analysis that she may
deem useful to her work.
As in large publicly listed companies, the
Board draws upon the work performed
by two committees, the Audit Committee
and the Compensation Committee. This
enables the Board to make decisions
comfortably on even the most sensitive
and complex issues. For example, the Audit
Committee has worked on major risks and
the quality of internal controls. The Compensation Committee paved the way for
the adoption of an appropriate executive
compensation policy and helped design
Associate Shareholding Plans.
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
The Chief Executive Officer has extensive
powers for successfully directing Sonepar’s
business in accordance with the Group’s
development strategy, its values and rules
of security.
The internal audit group has been tasked by the charter adopted in 2013 with
identifying and measuring the main
operational risks confronting the Group,
making suggestions on how to prevent
and reduce those risks and ensuring the
reliabililty of its figures. Its audit assignments are monitored and followed up
with recommendations to general and
local management. The internal audit
group now has a larger staff, both at the
Sonepar head office and in the various
countries, enabling it to implement an
ambitious audit program (72 assignments in 2013).
SONEPAR’S GOVERNANCE
CHARTER
Updated to reflect the Group’s new structure, the Governance Charter embodies
Sonepar’s philosophy and upholds triedand-tested management principles.
It sets forth the respective rights and
duties of each governance body, the
shareholders and the operational managers. Furthermore, the Charter calls upon
managers to adopt virtuous behavior, for
example by avoiding any acts or decisions that they might find hard to uphold
in public, and upon all associates to
question their superiors whenever they
have doubts.
OPERATIONAL MANAGEMENT
Due to Sonepar’s decentralized structure, operational managers have been
given responsibility for developing Group
sales activity—and they do so by leveraging best practices that have proven to
be effective. In return for the trust placed
in them, Sonepar expects operational
managers to show unflagging commit-
ment, particularly in relation to controls
and compliance, since the Group’s internal control work relies on their input.
DEVELOPMENTS IN 2014
The Group is rolling out the Sonepar
Governance Corpus, which encompasses Sonepar’s Governance Charter,
Mission Statement and Mission Letter.
José Menéndez, whose term of office on
the Board of Directors has come to an end,
has chosen not to seek a new term. The
Board of Directors wishes to thank him
for his powerful, effective commitment
to the Group over the last forty years. As
an executive, he collaborated with Henri
Coisne in defining Sonepar’s values,
helped drive its international expansion,
and worked to ensure effective family
succession. As a Board member, he
enriched the work of the Board with his
experience and business knowledge and
chaired the Audit Committee until 2011.
45
INTERNATIONAL
PRESENCE
OF SONEPAR
46
R
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,
energy transformation and distribution).
Ritz Hotel, Paris, France,
Franco Belge (cable, appliances).
Cruise Terminal Kai Tak, Hong Kong,
Supermoon (lighting and installation material).
50
Airbus Hall 225, Hamburg, Germany,
Sonepar Deutschland (lighting).
United Nations Headquarters, New York, USA,
Cooper Electric Supply (lighting, building
technical management, safety).
Government office, Hong Kong,
Supermoon (lighting and installation material).
51
25 RUE D’ASTORG
75008 PARIS - FRANCE
TEL. +33 (0)1 58 44 13 13
WWW.SONEPAR.COM
Dimensional, Limeira, Brazil.
Published by Sonepar Group Communications • May 2014 • Produced by Caribara Communication www.caribara.com • Photo credits: Dominik Obertreis, Philippe Gérardin & Franck Marcelin