FINANCIAL AND ACCOUNTING INFORMATION Consolidated statement of cash flows FOR THE YEAR ENDED DECEMBER 31, (in millions of euros) NOTE 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Operating income 322.3 397.0 Depreciation, amortization and impairment of assets and assets write off 7 – 9 264.1 167.8 Employee benefits (17.6) (26.2) Change in other provisions (26.2) 10.1 Other non-cash operating items 70.4 15.1 Interest paid (101.9) (118.8) Income tax paid (102.5) (54.6) Operating cash flows before change in working capital requirements 408.6 390.4 Change in inventories (80.0) (13.3) Change in trade receivables (25.0) (40.7) Change in trade payables (41.2) 33.9 Change in other working capital items 27.9 (5.9) Change in working capital requirements (118.4) (26.1) Net cash from operating activities 290.2 364.3 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of tangible and intangible assets (113.8) (120.8) 5 Proceeds from disposal of tangible and intangible assets 3.5 22.1 Acquisitions of subsidiaries, net of cash acquired 4 – (94.0) Proceeds from disposal of subsidiaries, net of cash disposed of 5 (23.1) 1.6 Change in long-term investments (1.2) 0.8 Net cash from investing activities (134.6) (190.2) CASH FLOWS FROM FINANCING ACTIVITIES Insuance of capital 16.1 0.5 5.2 Disposal / (Purchase) of treasury shares 0.1 1.0 Issuance of senior notes net of transaction costs 22.2 790.6 642.5 Repayment of senior notes 22.2 (819.3) (835.3) Settlement of interest rate swaps qualified as fair value hedge 0.5 5.8 Net change in credit facilities, commercial papers, other financial borrowings 22.2 (80.5) (49.8) Net change in securitization 22.2 (29.3) 15.2 Net change in finance lease liabilities 22.2 (3.0) (3.6) Dividend paid 17 (120.8) (120.3) Net cash from financing activities (261.3) (339.3) Net (decrease) / increase in cash and cash equivalents (105.7) (165.1) Cash and cash equivalents at the beginning of the period 619.3 804.8 Effect of exchange rate changes on cash and cash equivalents 50.1 (23.3) Cash and cash equivalent reclassified to assets held for sale – 2.9 Cash and cash equivalents at the end of the period 563.6 619.3 The accompanying notes are an integral part of these consolidated financial statements. REXEL 2017 – REGISTRATION DOCUMENT 217