OVERVIEW OF THE REXEL GROUP Gross capital expenditure made during 2017, 2016 1.7.3 Principal investments contemplated and 2015 respectively represented 0.8%, 0.9% and As of the date of this Registration document, no 0.9% of the consolidated sales of the Rexel Group. significant financial investment, other than those Investments made during 2017 are described in mentioned in paragraph 1.3 “Recent acquisitions paragraph 5.1.2.1 “Cash flow” of this Registration and disposals” of this Registration document have document and were financed through cash assets. been the subject of firm commitment with respect to third parties. 1.7.2 Principal investments underway Capital expenditure of the Rexel Group, mainly in New customer-relations electronic marketing relation to its information systems, to the acceleration and development solutions are being deployed in of the digitalization, to its logistical resources and to Europe, in North America and in the Pacific. its branch network, represent general ly between €100 and €150 million, on an annual basis. In several countries, a plan for the evolution and harmonization of information technology tools is also in progress. In the United States, an extension and renewal plan of its branch network is ongoing throughout the territory. 1.8 REGULATIONS The wholesale distribution of electrical equipment is As a non-manufacturing distributor, the Rexel Group subject to the regulations of ordinary law in matters strives to put into place adequate measures in order of product liability and environmental responsibility. to comply with said Directive. 1.8.1 Product liability The “WEEE” Directive As a non-manufacturing distributor, the Rexel The 2002/96/EC Directive of the European Group could be held liable for the products which Parliament and of the Council of January 27, 2003, it distributes. know as the “WEEE” Directive, pertaining to waste from household electrical and electronic equipment, The Rexel Group’s liability is general ly covered by in other words, which is intended for end-users, the legal obligations of the manufacturers or the requires the selective col lection of electrical and warranties and insurance coverage obtained from electronic waste, selective processing of certain the manufacturers and transferred to the clients. components, and waste recovery through recycling (material and energy recovery). The WEEE Directive 1.8.2 Environmental regulations also sets out the obligation for the manufacturer to The Group’s activities are subject to environmental label devices with reference to European standards regulations such as listed in paragraph 4.3.2 “Risk (in particular, the French standard NF EN 50149 Management and Compliance” of this Registration responds to this requirement) as wel l as to affix a document. The Rexel Group is also subject to pictogram on each one of the items of household specific local environmental regulations in the electrical and electronic equipment, indicating that various countries where it operates. such products are subject to selective col lection. In this framework, the Rexel Group offers, for each The “RoHS” Directive sale, to take back a product of the same kind, to be Directive 2002/95/EC of the European Parliament col lected by the eco-organizations which manage and of the Council of January 27, 2003, modified the relevant recycling facilities. The Rexel Group by Directive 2011/65/EU of July 1, 2011, known as considers the impact from such mechanism to be the “RoHS” (Restriction of Hazardous Substances) minor, and that it complies with such regulations in Directive, prohibits the use of certain dangerous the countries where it has been implemented. substances in electrical and electronic equipment. REXEL 2017 – REGISTRATION DOCUMENT 32