FINANCIAL AND ACCOUNTING INFORMATION carrying amount of €4,104.9 million and represent Information related to corporate governance 85% of total assets. We attest the existence, in the management report As disclosed in the note 2.1 to the financial of the Board of Directors on corporate governance, statements, a valuation al lowance is recorded of the information required by Articles L.225-37-3 when the carrying value exceeds the value in use. and L.225-37-4 of the French Commercial Code The value in use is calculated based on projected (Code de commerce). discounted cash flows, net of the indebtedness of Concerning the information given in accordance subsidiaries. with the requirements of Article L.225-37-3 and Estimates of the value in use require management L.225-37-4 of the French Commercial Code (Code to exercise judgment particularly regarding the de commerce) relating to remunerations and assumptions underlying the cash flows. benefits received by the directors and any other We deemed the valuation of investments in related commitments made in their favour, we have verified companies to be a key audit matter due to: its consistency with the financial statements, or with the underlying information used to prepare these •The significant weight of investments in financial statements and, where applicable, with subsidiaries in the total assets, the information obtained by your company from The sensitivity to changes in the data and controlling and controlled companies. Based on this • work, we attest the accuracy and fair presentation of assumptions underlying estimates. this information. How our audit addressed this risk With respect to the information relating to items We examined the procedures implemented by that your company considered l ikely to have an Rexel S.A. for determining the value in use of impact in the event of a tender or exchange offer, investments in related companies. provided pursuant to Article L.225-37-5 of the We performed the following procedures: French Commercial Code (Code de commerce), we have verified their compliance with their source •Obtained the projected discounted cash flows for documents communicated to us. Based on our the related subsidiaries, held directly or indirectly; work, we have no observation to make on this Corroborated the reasonableness of the main information. • assumptions (such as sales growth and EBITA margin) in the calculation of discounted cash Report on Other Legaland Regulatory flows, with economic environments in which the Requirements main subsidiaries operate; Appointment of the Statutory Auditors •Compared actual performance to past forecasts We were appointed as statutory auditors of Rexel to assess the reliability of projections for certain S.A. by the annual general meeting held on May 16, subsidiaries; 2012 for PricewaterhouseCoopers Audit and on Verified that the value resulting from discounted May 25, 2016 for KPMG Audit. • cash flows was adjusted from the indebtedness of As at December 31, 2017, PricewaterhouseCoopers the related entity. Audit was in the 6th year of total uninterrupted engagement and KPMG Audit in the 2 year of totalnd Verification of the Management Report and of uninterrupted engagement. the Other Documents Provided to Shareholders We have also performed, in accordance with Responsibilities of Management and Those professional standards appl icable in France, the Charged with Governance for the Financial specific verifications required by French law. Statements We have no matters to report as to the fair Management is responsible for the preparation presentation and the consistency with the financial and fair presentation of the financial statements in statements of the information given in the accordance with French accounting principles and management report of the Board of Directors and in for such internal control as management determines the other documents provided to Shareholders with is necessary to enable the preparation of financial respect to the financial position and the financial statements that are free from material misstatement, statements. whether due to fraud or error. REXEL 2017 – REGISTRATION DOCUMENT 296