FINANCIAL AND ACCOUNTING INFORMATION 5.1.1.2 Comparison of financial results as of December 31, 2017 and as of December 31, 2016 Rexel Group’s consolidated financial results The following table sets out Rexel’s consolidated income statement for 2017 and 2016, in millions of euros and as a percentage of sales. YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % REPORTED Sales 13,310.1 13,162.1 1.1% Gross profit 3,264.2 3,172.8 2.9% Distribution and administrative expenses (1) (2,669.9) (2,633.2) 1.4% EBITA 594.3 539.6 10.1% Amortization (2) (19.0) (18.7) 1.5% Operating income before other income and expenses 575.3 521.0 10.4% Other income and expenses (253.0) (124.0) 104.1% Operating income 322.3 397.0 (18.8)% Net financial expenses (145.9) (146.3) (0.3)% Income taxes (71.5) (116.4) (38.6)% Net income 104.9 134.3 (21.9)% 5 as a % of sales 0.8% 1.0% (1) Of which depreciation and amortization. (99.8) (97.1) 2.8% (2) Amortization of the intangible assets recognized as part of the allocation of the purchase price of acquisitions. YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % CONSTANT BASIS ADJUSTED FINANCIAL DATA Sales 13,310.1 12,939.2 2.9% Same-day basis 3.5% Gross profit 3,249.6 3,138.7 3.5% as a % of sales 24.4% 24.3% Distribution and administrative expenses (2,669.5) (2,591.9) 3.0% as a % of sales (20.1)% (20.0)% EBITA 580.1 546.8 6.1% as a % of sales 4.4% 4.2% Sales • The negative net effect from change in scope In 2017, Rexel’s consol idated sales amounted to amounted to €61.4 million, reflecting divestments €13,310.1 million, as compared to €13,162.1 million in made in South East Asia in the fourth quarter of 2016. 2017, partly offset by the acquisition of Brohl & Appell in the USA in the first quarter of 2016. On a reported basis, sales were up 1.1% year-on-year, including a negative currency impact of 1.2% and a On a constant and same-day basis, sales were up negative net effect from changes in scope of 0.5%. 3.5% with Europe up 4.2%, North America up 2.4% and Asia-Pacific up 3.4%. Excluding a 1.4 percentage •The negative impact of currency amounted to point positive impact due to higher copper-based €161.6 mil lion, mainly due to the depreciation of cable prices, sales were up 2.1% as compared to US Dollar and the British Pound against the Euro. 2016. REXEL 2017 – REGISTRATION DOCUMENT 201