BUSINESS FOR THE YEAR EPRA Performance Indicators 2 2.7.4 Financial ratios and rating As of December 31, 2017, the Group’s financing covenants remain in line with the commitments in its financing agreements. In December 2017, Standard’s & Poor’s confirmed the A- rating and its stable outlook. In August 2017, Standard & Poor’s assigned a A- rating for the first time to Steen & Strøm. Moody’s continues to assign a rating of A3 (stable outlook) to the notes initially issued by Corio N.V. 3 COVENANTS (a) Financing Ratios/Covenants Limit 12/31/2017 12/31/2016 Syndicated loans and bilateral loans Net debt/Portfolio value (“Loan to Value”) ≤ 60% 36.8% 36.8% (b) EBITDA/Net interest expenses ≥ 2.0 6.3 5.2 (c) Secured debt/Portfolio value ≤ 20% 0.7% 0.7% Portfolio value, Group share ≥ €10 bn €20.8 bn €19.9 bn (c) Bond issues Secured debt/Revalued Net Asset Value ≤ 50% 0.9% 1.1% (a) Ratios are based on the revolving credit facility 2015. (b) Exclusive of the impact of the liability management operations. (c) Exclusive of Steen & Strøm. A portion of Steen & Strøm’s debt is subject to a financial covenant that requires shareholders’ equity to be equal to at least 20% of NAV at all times. On December 31, 2017, this ratio was 53.7%. 2.8 EPRA Performance Indicators The following performance indicators have been prepared in accordance with best practices as defined by EPRA (European Public Real Estate Association) in its Best Practices Recommendations guide, available on EPRA’s website (www.epra.com). 2.8.1 EPRA Earnings EPRA Earnings is a measure of the underlying operating performance of an investment property company excluding fair value gains, investment property disposals, and limited other items that are not considered to be part of the core activity of an investment property company. 3 EPRA EARNINGS In €m, Group share 12/31/2017 12/31/2016 Earnings per IFRS income statement 1,228.6 1,191.2 Adjustments to calculate EPRA Earnings, exclude: (i) Changes in value of investment properties, development properties held for investment and other interests 825.9 828.8 (ii) Profit or losses on disposal of investment properties, development properties held for investment and other interests 6.9 23,5 (iii) Profit or losses on sales of trading properties including impairment charges in respect of trading properties - - (iv) Tax on profits or losses on disposals - - (v) Negative goodwill/goodwill impairment -1.7 - (vi) Changes in fair value of financial instruments and associated close-out costs -29.2 -28.3 (vii) Acquisition costs on share deals and non-controlling joint venture interests -0.6 - (viii) Deferred tax in respect of EPRA adjustements -190.9 -199.0 (ix) Adjustments (i) to (viii) above in respect of joint ventures (unless already included under proportional consolidation) 22.9 28.5 (x) Non-controlling interests in respect of the above -137.1 -156.8 EPRA EARNINGS 732.4 694.4 (a) 306,084,849 311,736,861 Number of shares EPRA EARNINGS PER SHARE (in €) 2.39 2.23 Company-specific adjustments Employee benefits, stock-options expenses and non-current operating expenses 13.8 7.9 Amortization allowances and provisions for contingencies and losses 14.4 18.8 Net current cash flow 760.6 721.1 (a) 306,084,849 311,736,861 Number of shares Net current cash flow per share (in €) 2.48 2.31 (a) Average number of shares, excluding treasury shares. KLÉPIERRE 2017 REGISTRATION DOCUMENT 65