FINANCIAL STATEMENTS 3Consolidated financial statements as of December 31, 2017 Deferred taxes are composed of: Cash flow Change Change in hedging Asset, liability Other In €m 12/31/2016 in scope net income reserves reclassifications changes 12/31/2017 Investment properties -1,418.8 2.8 -193.0 0.2 24.1 -1,584.8 Derivatives 7.1 -2.2 -0.2 4.7 Losses carried forward 45.9 -12.5 -0.0 -1.3 32.0 Other items -10.0 -0.0 10.3 0.3 -0.3 0.3 Total for entities in a net liability position -1,375.7 2.8 -195.7 -2.2 -1.9 25.1 -1,547.7 Investment properties 0.9 -1.1 -0.2 1.5 1.2 Derivatives 23.3 -11.8 11.5 Losses carried forward 15.1 -0.5 -0.0 -0.9 13.8 Other items 1.4 -4.2 -0.3 1.1 -2.0 Total for entities in a net asset position 40.7 -5.3 -11.8 1.9 -1.0 24.5 NET POSITIONS -1,334.9 2.8 -201.0 -14.1 24.0 -1,523.2 The deferred tax in the income statement shows a charge of tax loss carried forward capitalized for all entities within the Group is €201.0 million and is mainly comprised of: three to nine years in average. > a €194.1 million expense resulting from the variation of deferred Non-capitalized deferred taxes on tax losses carried forward amount taxes on temporary differences arising from the changes in the fair to €259.6 million at December 31, 2017 compared to €255.1 million at market value and the tax value of investment properties; December 31, 2016. > a €13.0 million expense, resulting from the use of losses carried The “Change in scope” column mainly corresponds to the effect of the forward partially offset by the activation of losses of the period; first consolidation of Nueva Condomina in Spain and the disposals of > a €6.1 million gain related to the variation of other balance sheet the Swedish office building Emporia and of the Norvegian shopping temporary differences (including deferred taxes on translation center Lillestrøm Torv. differences and derivatives). The “Other changes” column, showing a variation of €24.0 million, The ordinary tax losses carried forward are capitalized when their mainly records the effect of currency fluctuations. realization is deemed probable. The expected time scale for recovering 106 KLÉPIERRE 2017 REGISTRATION DOCUMENT