FINANCIAL AND ACCOUNTING INFORMATION Sales good performance in all product categories mainly In 2017, sales in Europe amounted to €7,292.3 million, on cable. Sales in the Netherlands were up 12.9% a 1.7% increase on a reported basis, as compared to on a constant and same-day basis, confirming the €7,168.5 million in 2016. positive trend in all categories of products including photovoltaic equipment. Currency unfavorable evolution accounted for a decrease of €77.4 mi l l ion, mainly due to the In Switzerland and Austria , sales amounted depreciation of the British Pound against the Euro. respectively to €440.7 mil lion and €350.6 mil lion in 2017. Sales in Austria increased by 4.4% from The negative net effect from change in scope 2016, on a constant and same-day basis. Sales in amounted to €40.8 mi l l ion is related to the Switzerland were broadly stable at 0.1% from 2016, divestment of operations in Slovakia, Poland and on a constant and same-day basis, reflecting the Baltics completed in the second quarter of 2016. Group’s ability to face a competitive environment. On a constant and same-day basis, sales were up In Southern Europe, sales amounted to 4.2% as compared to 2016. Excluding the positive €372.4 million in 2017, a 2.7% decrease from 2016 on impact of 1.7 percentage point due to the higher a constant and same-day basis. This reflects a 7.6% copper-based cable prices compared to 2016, sales decrease in Spain (export sales were down 21.1% were up 2.5%. and domestic sales were down 6.6%), and a 6.1% In France, sales amounted to €2,659.2 mil lion in increase in Italy. 2017, an increase of 5.5% as compared to 2016 Gross profit on a constant and same-day basis, with trends improving over the quarter in the three end-markets In 2017, Europe recorded a gross profit of (residential, non-residential and industry) reflecting €1,967.6 mil lion, increasing by 2.7%, on a reported good performance in cables, Heating-Ventilating & basis, as compared to €1,915.1 million in 2016. Air-Conditioning (HVAC). On a constant basis, adjusted gross profit increased In the United Kingdom, sales amounted to by 3.7% and adjusted gross margin was broadly €843.6 mil l ion in 2017, a decrease of 2.9% from stable at 26.8% of sales. 2016 on a constant and same-day basis, reflecting Distribution & administrative expenses branch closures and underperformance in difficult environment. In 2017, distribution and administrative expenses amounted to €1,532.5 million, up 0.3%, on a reported In Germany, sales stood at €819.9 million in 2017, a basis, as compared to €1,528.3 million in 2016. 3.9% increase from 2016 on a constant and same-day On a constant basis, adjusted distribution and basis, mainly attributable to a positive copper impact administrative expenses increased by 1.9% in 2017, of 2.8 percentage points. Excluding this effect, sales representing 21.0% of sales, a 33 basis-point increase were up 1.1%, with improved performances both as compared to 21.3% in 2016, mainly driven by higher in industry notably in petrochemical and facility salaries and benefits mitigated by containment of managers. opex growth due to lower than expected corporate- In Scandinavia sales amounted to €973.9 million in hosted expenses allocated to operations. 2017, an increase of 6.5% from 2016 on a constant and same-day basis, with contrasted performances EBITA in the three countries: +13.2% in Sweden driven by In 2017, on a reported basis, EBITA amounted healthy residential and commercial end-markets, to €435.1 mi l l ion,up 12.5% as compared to +1.1% in Norway and -2.5% in Finland. €386.9 million in 2016. In Belgium and in the Netherlands,sales amounted On a constant basis, adjusted EBITA increased respectively to €374.1 mil l ion and €257.7 mil l ion by 10.9% from 2016 and adjusted EBITA margin in 2017. Sales in Belgium increased by 8.7% with a increased by 39 basis points to 5.8% of sales. REXEL 2017 – REGISTRATION DOCUMENT 204