FINANCIAL STATEMENTS Corporate financial statements as of December 31, 2017 3 5.3 Net financial income The Company recorded a net financial profit of €150.8 million at December 31, 2017 compared with €501.6 million profit at December 31, 2016. 5.3.1 Financial income In €k 12/31/2017 12/31/2016 Income from sale of securities - 35 (a) - 1,329 Income from interest rate swaps Income from equity investments 80,633 80,099 Positive variance from merger and canceled shares - 157,823 Interest on associates’ advances 189,164 214,884 (a) Interest on current accounts and deposits 1,233 4,200 Other revenue and financial income 7,052 6,106 Reversal of financial provisions 261,508 515,813 Transferred financial expenses 4,758 5,071 Foreign exchange gain 580 4,060 TOTAL FINANCIAL INCOME 544,928 989,420 (a) Income and expenses on swaps, borrowings and cash pools are netted. Income from equity investments correspond mainly to dividends > reversals of provisions for risks relating to equity investments for related to 2016 income and received during the period from the €11.8 million; subsidiaries: KLE 1, Klémurs, Cécoville, Klépierre Vallecas, Klépierre > reversal of the provision for exchange losses on currency swaps Alpes, Akmerkez Gayrimenkul and others (see note 3.2.1). for €16 million; Other revenue and financial income stand at €7.1 million and mainly > reversals of provisions for contingencies on swaps in isolated open include the spread of share premiums received on bonds for position for €11 million; €4.3 million and guarantee fees for €1.9 million. Reversals of financial provisions correspond to: > reversal of the provision for exchange loss on the SEK advance of €5.7 million; > write-backs of impairments of equity investments for €208.2 million; > reversal of provisions on treasury shares for €5.4 million. > write-backs of impairments of technical loss related to equity Transferred financial expenses on December 31, 2017 are composed investments for €3.4 million; mainly of bank commissions on bilateral loans and bond issues purchased during the year. 5.3.2 Financial expenses In €k 12/31/2017 12/31/2016 Interest on bonds 149,339 166,438 Interest on Polish bonds 14 2,051 Interest on associates’ advances - 154 (a) 913 5,096 Interest on loans from credit institutions Other bank interest - 1,977 Swap-related expenses(a) 34,701 - Interest on current accounts and deposits 1,704 9 Other financial expenses 15,834 67,673 Amortization allowance on bond premiums 2,267 2,941 Amortization allowance on loan issue fees 5,902 7,382 Allowances for financial provisions 170,917 234,070 Foreign exchange loss 12,559 52 TOTAL FINANCIAL EXPENSES 394,150 487,842 (a) Income and expenses on swaps, borrowings and cash pools are netted. The €19.1 million change in interest on bonds, including Polish bonds, > the decrease in interest following the repayment of the loan that was due to: matured and the partial redemption of bonds in the amount of > the increase in interest, due to the full-year effect, following the €26.9 million; transactions carried out in 2016 (Repayment and issuance of loans, > the decrease in interest on the Polish bonds in the amount of bond redemptions) in the amount of €2.2 million; €2 million following the redemption of certain bonds. > the increase in interest following two new debt issuances in the amount of €7.6 million; KLÉPIERRE 2017 REGISTRATION DOCUMENT 151