FINANCIAL STATEMENTS 3Corporate financial statements as of December 31, 2017 Note 4 Notes to the financial statements: balance sheet liabilities 4.1 Shareholders’ equity Allocation In €k 12/31/2016 of profit Distribution Others 12/31/2017 (a) 440,098 - - - 440,098 Share capital Additional paid-in capital from issues, contributions and merger premiums > Issue premiums 4,906,585 - - - 4,906,585 > EOC issue premiums 174,012 - - - 174,012 > Contribution premiums 259,318 - - - 259,318 > Merger premiums 310,095 - - - 310,095 Positive merger variance 197,952 - - - 197,952 Positive canceled share variance 18,557 - - - 18,557 Statutory reserve 44,010 - - - 44,010 Other reserves > Regulated reserves - - - - - > Other reserves 168,055 - - - 168,055 (b) Retained earnings 91,393 575,552 -572,128 10,155 104,971 Net income/loss for the year 575,552 -575,552 - 269,749 269,749 TOTAL 7,185,626 - -572,128 279,904 6,893,402 (a) Composition of share capital Ordinary shares 314,356,063 314,356,063 Par value 1.40 1.40 (in €) (b) The increase in retained earnings refers to the +€10.155 thousand of dividends relating to allocated treasury shares. In accordance with shareholders’ meeting resolution as of April 18, 2017, the profit for the financial year 2016 was distributed for €572.1 million. 10.2 million dividend related to treasury shares was allocated to retained earnings. 4.2 Provisions for contingencies and losses In €k 12/31/2017 Allowance Write-backs Mergers 12/31/2016 Other provisions for contingencies and losses 44,021 22,750 -67,014 5,697 82,589 TOTAL 44,021 22,750 -67,014 5,697 82,589 The allowances mainly correspond to a provision for risk on stock > reversal of provision for risks on swaps in isolated open position options and free shares for €10.2 million, and a allowance for for €10.9 million; contingencies on equity investments in Klépierre Grand Littoral for > reversal of provision on stock options and free shares for €9.4 million and in Sanoux for €2.5 million. €7.5 million; Write-backs of provisions mainly correspond to a reversal provision for: > reversal of provision for foreign exchange loss on the SEK loan > reversal of provision for losses on FX swaps for €15.9 million; for €5.7 million. > reversal of provision for risks on Corio Lulin’s equity for €13.7 million and on Klépierre Management Deutschland’s equity investments for €9.8 million; 148 KLÉPIERRE 2017 REGISTRATION DOCUMENT