FINANCIAL AND ACCOUNTING INFORMATION On a constant and actual number of working days The table below summarizes the impact on sales basis, sales increased by 2.9% including a negative evolution of the number of working days, changes in calendar impact of 0.6 percentage point. scope and in currency effects: Q1 Q2 Q3 Q4 YEAR-TO-DATE Growth on a constant and same-day basis 0.6% 2.8% 5.2% 5.4% 3.5% Number of working days effect 4.1% (2.7)% (1.1)% (2.7)% (0.6)% Growth on a constant and actual-day basis 4.8% 0.1% 4.1% 2.7% 2.9% Changes in scope effect (0.8)% (0.4)% (0.1)% (0.5)% (0.5)% Foreign exchange effect 1.2% 0.1% (2.4)% (3.6)% (1.2)% Total scope and currency effects 0.4% (0.3)% (2.5)% (4.1)% (1.7)% Growth on a reported basis(1) 5.1% (0.2)% 1.4% (1.5)% 1.0% (1)Growth on a constant basis and actual number of working days compounded by the scope and currency effects. Gross profit allocated to Germany, €34.5 million to Finland and In 2017, gross profit amounted to €3,264.2 million, €13.0 million to New Zealand. Following lower than up 2.9%, on a reported basis, as compared to expected 2017 performance, the Group adjusted €3,172.8 million in 2016. downwards its trading prospects resulting in impairment losses recognition; On a constant basis, adjusted gross profit increased by 3.5% and adjusted gross margin increased by • €68.7 million divestment loss due to the disposal 16 basis points up to 24.4% of sales, reflecting an of Lenn International Pte. Ltd for €11.1 million and increase in North America while it decreased in Asia- Rexel South East Asia for €57.6 million; Pacific and remained stable in Europe. €44.1 million restructuring costs (€59.3 million in • Distribution & administrative expenses 2016) associated with (i) business transformation In 2017, distribution and administrative expenses programs (US, UK, Sweden); (ii) branch network, amounted to €2,670.0 million, up 1.4%, on a reported logistics optimization and back office optimization; basis, as compared to €2,633.2 million in 2016. (iii) the shut-down of the Oil & Gas business in Thailand, as result of market decline; (iv) changes On a constant basis,adjusted distribution in corporate senior management. and administrative expenses increased by 3.0% mainly driven by North America and Europe. They Net Financial expenses represented 20.1% of sales in 2017 compared to In 2017, net financial expenses stood at €145.9 million, 20.0% in 2016, a 3 basis-point deterioration. as compared to €146.3 million in 2016. EBITA In 2017, net financial expenses were impacted by the In 2017, EBITA stood at €594.3 million, up 10.1%, on €18.8 mil lion one-off expense relating to the early a reported basis, as compared to €539.6 million in redemption of the 5.25% USD330 mil l ion senior 2016. notes due 2020 (refinanced through the issuance of On a constant basis, adjusted EBITA increased by 2.625% €300.0 million notes due 2024) and the 3.25% 6.1% to €580.1 mil lion and adjusted EBITA margin €500 mil l ion senior notes due 2022 (refinanced stood at 4.4% of sales, up 13 basis points year-on- through the issuance of 2.125% €500.0 million notes year. due 2025). In addition, a €10.9 million non-recurring expenses associated with the discounting of letters Other income and expenses of credit due from overseas financial institutions was In 2017, other income and expenses represented recognized in net financial expenses (€3.6 million in a net expense of €253.0 mil lion (€124.0 mil lion in 2016). 2016), consisting mainly of: In 2016, net financial expenses included a €16.3 million •€133.7 mi l l ion goodwi l l impairment expense one-off expense relating to the early redemption of (€46.8 mil l ion in 2016) of which €86.2 mil l ion the €650 mil lion senior notes due 2020 and the REXEL 2017 – REGISTRATION DOCUMENT 202