FINANCIAL AND ACCOUNTING INFORMATION Accompanying Notes notes due 2020 representing US$330 mil l ion in principal amount and the 3.25% €500 million senior 1. General information notes due 2022 (see note 22.1). Rexel was incorporated on December 16, 2004. For the year ended December 31, 2016 Shares of Rexel were admitted to trading on the Eurolist market of Euronext Paris on April 4, 2007. To optimize its financing structure, Rexel early repaid The group consists of Rexel and its subsidiaries the 5.125% €650 mil l ion senior notes due 2020 (hereafter referred to as “the Group” or “Rexel”). and refinanced this amount through the issuance of a 3.50% €650 mil l ion senior notes due 2023. The Group is mainly involved in the business of the Rexel also early redeemed US$170 million out of its distribution of low and ultra-low voltage electrical 5.25% US$500 million senior notes due 2020 (see products to professional customers. It serves the note 22.1). needs of a large variety of customers and markets in the fields of construction, industry, and services. 3. Significant accounting policies The product offering covers electrical instal lation equipment, conduits and cables, lighting, security and communication, climate control, tools, and white 3.1 Statement of compliance and brown goods. The principal markets in which The consolidated financial statements (hereafter the Group operates are in Europe, North America referred to as “the financial statements”) for the (United States and Canada) and Asia-Pacific (mainly year ended December 31, 2017 have been prepared in Australia, New Zealand and China). in accordance with International Financial Reporting These consolidated financial statements cover the Standards (IFRS) as adopted by the European period from January 1 to December 31, 2017 and Union, as well as the standards of the International were authorized for issue by the Board of Directors Accounting Standards Board (IASB) which are in on February 13, 2018. force at December 31, 2017. 5 IFRS has adopted by the European Union can be 2. Significant events of the year ended consulted on the European Commission’s website December 31, 2017 and December 31, 2016 (http://ec.europa.eu/internal_market/accounting/ ias/index_en.htm). For the year ended December 31, 2017 Rexel South East Asia divestment 3.2 Basis of preparation In 2017, the Group divested from all of its operations The financial statements are presented in euros in South East Asia fol lowing strategic priority and al l values are rounded to the nearest tenth to place greater focus on the most attractive of a mil l ion, unless otherwise stated. Totals and geographies and businesses. These divestments sub-totals presented in the consolidated financial include operations in Thailand, Indonesia, Singapore, statements are first computed in thousands of euros Vietnam, the Philippines, Macau and Malaysia and and then rounded to the nearest tenth of a million. were completed in two sale transactions effective Thus, the numbers may not sum precisely due to this on May 25, 2017 for Lenn International Pte Ltd and rounding effect. on December 19, 2017 for the remaining. The preparation of financial statements in These transactions resulted in disposal losses before accordance with IFRS requires management to tax of €68.7 million (see note 5). make judgments, estimates, and assumptions that Refinancing transactions affect the application of accounting policies and reported amounts of assets, liabilities, income and Rexel entered into two refinancing transactions expenses. Actual results may differ from these with the aim of extending its debt maturity profile estimates. Estimates and underlying assumptions and optimizing its overal l cost of financing. Rexel are reviewed frequently, and thus the effect of issued 2.625% €300 million senior notes due 2024 changes in accounting estimates is accounted for in March 2017 and 2.125% €500 million senior notes from the date of the revision. due 2025 in November 2017. Proceeds received from these issuances were used to early repay the Information related to the main estimates and remaining outstanding 5.25% US$500 million senior judgments made on the application of accounting REXEL 2017 – REGISTRATION DOCUMENT 219