OVERVIEW OF THE REXEL GROUP The Rexel Group analyses its sales based on legal entity would not be relevant. Breakdown of geographic areas, to which the legal entities sales by geographic area is detailed in section 5.1 referred to above belong based on their localization. “Activity Report” of this Registration document. Therefore, an analysis of sales with a breakdown by 1.6 PROPERTY AND EQUIPMENT The real estate strategy of the Rexel Group prioritizes Netherlands, Norway, Portugal, Slovenia, Spain, 1 operating leases as a predominant mode of occupancy Sweden and United Kingdom), in North America of its commercial and logistical sites. This gives it (United States) and in Asia-Pacific (Australia, China greater operational flexibility, enabling it to continually and New Zealand). The logistics centers are mainly adapt to developments in the market. For the past leased and have an average surface area which fifteen years, the Rexel Group has thus used sales and ranges between 10,000 square meters, for those leasebacks for the majority of its real estate assets. situated in Europe (excluding France) and 17,000 As of December 31, 2017, the property portfolio of the square meters, for those situated in France; and Rexel Group consisted primarily of the following sites: • 2,012 branches located in Europe, North America The registered office of Rexel, located in Paris and Asia-Pacific. The points of sale are mixed-use • (France), leased and having a surface area of 10,200 sales and storage buildings located in craft or square meters, as well as the administrative seats industrial areas of activity, with an average surface of the Rexel Group’s operational entities, located area of approximately 1,000 square meters. The in Europe, in North America and in Asia-Pacific, branches are primarily leased. which are mainly leased. The registered office of The real estate assets of the Rexel Group do not Rexel and the administrative headquarters of the contain any item of significant value with respect operational entities house the management and to the Rexel Group, taken as a whole, and no operational functions of the Rexel Group; investment of such type is foreseen. These assets •50 logistics centers situated in Europe (France, are not burdened with sureties which could affect Austria, Belgium, Finland, Germany, Italy, the their current use or value. 1.7 INVESTMENTS 1.7.1 Investments completed The table below presents the details of the capital expenditures as well as of investments in subsidiaries and divestments for each of the years ended December 31, 2017, 2016 and 2015: (in millions of euros) 2017 2016 2015 2015-2017 Total Capital expenditure Information systems / Digital 62.8 54.0 58.8 161.0 Renovation and opening of branches 26.3 20.2 28.6 72.4 Supply chain 15.1 23.0 16.5 55.0 Other 8.3 18.6 17.6 47.8 Total gross capital expenditure 112.5 115.8 121.5 349.8 Change in fixed assets suppliers payable 1.3 5.0 (1.3) 5.0 Disposals of fixed assets (3.5) (22.1) (5.0) (30.6) Total net capital expenditure 110.3 98.7 115.2 324.2 Acquisitions and disposals of subsidiaries Investments – 94.0 28.2 122.2 Divestments (23.1) (1.6) (11.6) (36.3) Total acquisitions and disposals of subsidiaries (23.1) 92.4 16.6 85.9 REXEL 2017 – REGISTRATION DOCUMENT 31