FINANCIAL STATEMENTS 3Consolidated financial statements as of December 31, 2017 3.1.5 Appendices NOTE 1 SIGNIFICANT EVENTS OF THE FISCAL 6.3 Non-recovered rental expenses 103 YEAR 2017 77 6.4 Owners’ building expenses 103 1.1 Investments 77 6.5 Other operating revenue 103 1.2 Main disposals 77 6.6 Depreciation and impairment allowance 1.3 Dividend 77 on tangible and intangible assets 103 1.4 Share buyback program 77 6.7 Change in value of investment properties 103 1.5 Debt 77 6.8 Income from disposals of investment properties and equity investments 103 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES 77 6.9 Net cost of debt 103 2.1 Corporate reporting 77 NOTE 7 TAXES 104 2.2 Application of IFRS 77 2.3 Use of material judgments and estimates 78 NOTE 8 EXPOSURE TO RISK AND HEDGING 2.4 Translation of foreign currencies 79 STRATEGY 108 2.5 Distinction between liabilities and equity 79 8.1 Interests rate risk 108 2.6 Net earnings per share 79 8.2 Liquidity risk 109 NOTE 3 SEGMENT INFORMATION 79 8.3 Currency risk 110 3.1 Segment earnings 79 8.4 Counterparty risk 110 3.2 Investment properties detailed by operating 8.5 Equity risk 110 segment 80 NOTE 9 FINANCE AND GUARANTEE COMMITMENTS 110 3.3 New investments over the period by operating 9.1 Commitments given 110 segment 81 9.2 Mutual commitments 111 NOTE 4 SCOPE OF CONSOLIDATION 81 9.3 Commitments received 111 9.4 Shareholders’ agreements 112 NOTE 5 NOTES TO THE FINANCIAL STATEMENTS: 9.5 Commitments under operating leases – Lessors 113 BALANCE SHEET 82 5.1 Goodwill 82 NOTE 10 EMPLOYEE COMPENSATION 5.2 Intangible assets 84 AND BENEFITS 114 5.3 Property, plant and equipment 85 10.1 Payroll expenses 114 5.4 Investment properties 86 10.2 Employees 114 5.5 Equity method investments 90 10.3 Employee benefits 115 5.6 Other non-current assets 91 10.4 Stock-options 118 5.7 Trade accounts and notes receivable 92 10.5 Performance shares 118 5.8 Other receivables 92 NOTE 11 ADDITIONAL INFORMATION 121 5.9 Cash and cash equivalents 92 5.10 Shareholders’ equity 93 11.1 Transactions with related parties 121 5.11 Current and non-current financial liabilities 94 11.2 Post-employment benefit plans 122 5.12 Hedging instruments 99 11.3 Compensation for Executive Board 5.13 Non-current provisions 101 and Executive Committee 122 5.14 Social and tax liabilities and other liabilities 101 11.4 Contingent liabilities 122 11.5 Subsequent events 122 NOTE 6 NOTES TO THE FINANCIAL STATEMENTS: 11.6 Statutory Auditors’ fees 122 COMPREHENSIVE INCOME STATEMENT 102 11.7 Identity of the consolidating companies 122 6.1 Gross rental income 102 11.8 List of consolidated entities 123 6.2 Land expenses (real estate) 102 76 KLÉPIERRE 2017 REGISTRATION DOCUMENT