FINANCIAL AND ACCOUNTING INFORMATION North America (35% of Group sales) YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % REPORTED Sales 4,710.1 4,689.1 0.4% Gross profit 1,064.1 1,022.4 4.1% Distribution and administrative expenses (884.0) (856.8) 3.2% EBITA 180.1 165.6 8.7% as a % of sales 3.8% 3.5% YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % CONSTANT BASIS ADJUSTED FINANCIAL DATA Sales 4,710.1 4,619.4 2.0% Same-day basis 2.4% Gross profit 1,060.8 1,020.6 3.9% as a % of sales 22.5% 22.1% 43 bps Distribution and administrative expenses (884.0) (844.8) 4.6% as a % of sales (18.8)% (18.3)% -48 bps EBITA 176.8 175.8 0.6% 5 as a % of sales 3.8% 3.8% Sales In Canada, sales were up 2.4% from 2016 on a In 2017, sales in North America amounted to constant and same-day basis with copper price €4,710.1 mil lion, up 0.4%, on a reported basis, as contribution of 0.3 percentage point. Sales increase compared to €4,689.1 million in 2016. was driven by strong automation demand, partly offset by lower Oil & Gas business. Currency unfavorable evolution accounted for a €72.9 mi l l ion, decrease mainly due to the Gross profit depreciation of US dollar against the Euro. In 2017, in North America, gross profit amounted On a constant and same-day basis, sales increased to €1,064.1 million, up 4.1%, on a reported basis, as compared to €1,022.4 million in 2016. by 2.4% as compared to 2016. On a constant basis, adjusted gross margin In the United States, sales were up 2.4% from 2016 increased by 43 basis points at 22.5% of sales. This on a constant and same day basis including copper gross margin improvement was mainly result from price effect accounting for a 1.4% increase. Sales better purchasing condition and pricing initiatives, were positively impacted by good momentum especially in the US. on proximity business supported by 17 branch openings and by recovery in the Oil & Gas business Distribution & administrative expenses while project business continues to be affected by In 2017, distribution and administrative expenses disruptions in the supply chain of a large supplier as amounted to €884.0 million, up 3.2%, on a reported well as wind and power projects. basis, as compared to €856.8 million in 2016. REXEL 2017 – REGISTRATION DOCUMENT 205