FINANCIAL AND ACCOUNTING INFORMATION East Asia contributed for €98.6 million in sales and line items other than sales for this effect, as it is not €-5.1 million in EBITA considered relevant. Excluding the effects of exchange rate fluctuations Accordingly, in the fol lowing discussion of the Fluctuations in currency rates against the euro Group’s consol idated results, some or al l of the affect the value of the Group’s sales, expenses and fol lowing information is provided for comparison other balance sheet items as wel l as the income purposes: statement. By contrast, the Group has relatively • On a constant basis, which means excluding the low exposure to currency transaction risk, as cross- effect of acquisitions and disposals and the effect border transactions are limited. To neutralize the of fluctuations in exchange rates. Such information currency translation effect on the comparability of is used for comparison of sales; its results, the Group restates its comparative period On a constant and same-day basis, which means results at the current year’s exchange rates. • on a constant basis (as described above) and Excluding the non-recurring effect related restated for the effect of different numbers of to changes in copper price working days in each period. Such information is To analyze the financial performance on a constant used only for comparisons related to sales; and adjusted basis, the estimated non-recurring effect • On a constant basis adjusted,which means on a related to changes in copper-based cable prices, constant basis (as described above) and adjusted as described in paragraph “Impact of changes for the estimated non-recurring effect related in copper price” above, is excluded from the to changes in copper-based cable prices. Such information presented for both the current and the information is used for comparisons of gross previous periods. Such information is referred to as profit, distribution and administrative expenses, “adjusted” throughout this activity report. and EBITA. This information is not generated directly by the Group’s accounting systems but Excluding the effects of different numbers is an estimate of comparable data in accordance of working days in each period on sales with the principles explained above. The Group’s sales in a given period compared with The Group uses the “EBITA” and “Adjusted EBITA” another period are affected by the number of working measures to monitor its performance. Neither EBITA days, which changes from one period to another. In nor Adjusted EBITA is an accepted accounting the analysis of its consol idated sales, the Group measure under IFRS. The table below reconciles neutralizes this effect by proportional ly adjusting reported operating income before other income and the comparative sales number of the comparative other expenses to Adjusted EBITA on a constant period to match with the current period’s number basis. of working days. No attempt is made to adjust any YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Operating income before other income and other expenses 575.3 521.0 Changes in scope of consolidation – 2.5 Foreign exchange effects – (5.2) Non-recurring effect related to copper (14.2) 10.0 Amortization of the intangible assets recognized as part of the allocation of the purchase price of acquisitions 19.0 18.7 Adjusted EBITA on a constant basis 580.1 546.8 REXEL 2017 – REGISTRATION DOCUMENT 200