FINANCIAL STATEMENTS Consolidated financial statements as of December 31, 2017 3 3.3 New investments over the period by operating segment (a) In €m Investment properties at fair value Investment properties at cost Investments 12/31/2017 Shopping centers 510.6 76.0 586.6 France-Belgium(b) 112.0 59.7 171.7 Scandinavia 21.6 0.0 21.6 Italy 9.2 16.3 25.5 Iberia 248.8 248.8 The Netherlands 79.4 79.4 Germany 5.7 5.7 CEE & Turkey 33.9 33.9 TOTAL 510.6 76.0 586.6 (a) Investments include acquisitions, capitalized expenses and changes in scope. (b) Including other retail properties. The main investments of the period in France-Belgium concern the In Spain, the main investments concerned the acquisition of Nueva Prado project for €59.2 million, Val d’Europe extension for €43.8 million, Condomina and in the CEE & Turkey operational segment, the change the acquisition of additional leaseholds in Blagnac for €15.2 million and of the period is related to the acquisition of an additional retail unit in the acquisition of new retail units in Riom, for €4.4 million. the Nový Smíchov shopping center in the Czech Republic. In The Netherlands, investments of the period relate mainly to the Hoog Catharijne project. Note 4 Scope of consolidation Accounting policies Scope of consolidation The Klépierre consolidated financial statements cover all those companies over which Klépierre has control, joint control or significant influence. The percentage level of control takes account of the potential voting rights that entitle their holders to additional votes whenever these rights are immediately exercisable or convertible. Subsidiaries are consolidated starting the date on which the Group gains effective control. Consolidation method The consolidation method is based on the degree of control exercised by the Company: > exclusive control: full consolidation. Control is presumed to exist when Klépierre directly or indirectly holds more than half of the Company’s voting rights. Control is also presumed to exist where the parent company has the power to direct the financial and operational policies of the Company and appoint, dismiss or convene the majority of the members of the Board of Directors or equivalent management body; > joint control and significant influence: consolidation using the equity method. Joint control exists where operational, strategic and financial decisions require unanimous agreement between the associates. The agreement is contractual: subject to bylaws and shareholder agreements. Influence is defined as the power to contribute to a Company’s financial and operating policy decisions, rather than to exercise sole or joint control over those policies. Significant influence is presumed where the Group directly or indirectly holds 20% or more of an entity’s voting rights. Investments in associates are initially recognized in the balance sheet at acquisition cost, and are subsequently adjusted by the share of the net cash generated after the acquisition and the changes in fair value; > no influence: the company is not consolidated. Changes in equity of companies consolidated using the equity method are reported on the assets side of the balance sheet under “Equity method investments” and under the corresponding item in shareholder’s equity. Goodwill on companies consolidated using the equity method is also reported under “Equity method investments”. Intercompany transactions Intercompany balances and profits resulting from transactions between Group companies are eliminated. KLÉPIERRE 2017 REGISTRATION DOCUMENT 81