FINANCIAL STATEMENTS Consolidated financial statements as of December 31, 2017 3 Note 1 Significant events of the fiscal year 2017 1.1 Investments 1.4 Share buyback program On May 22, 2017, Klépierre acquired Nueva Condomina, a Spanish On March 13, 2017, Klépierre announced a share buyback program of shopping mall in the region of Murcia, for a property value of up to €500 million. As of December 31, 2017, the Group repurchased €233 million including duties. 9,761,424 shares for a total amount of €350 million. On December 19, 2017, Klépierre purchased a new unit of the Nový Smichov shopping center in Prague for a property value of 1.5 Debt €28.6 million including duties. The other main investments realized during the period concern Klépierre raised circa €1.4 billion worth of new financing in both the ongoing projects in The Netherlands (mainly Hoog Catharijne, bond and the banking markets. These transactions mainly aimed at €78.0 million), in France Prado (€59.2 million) and Val d’Europe both replacing former debts which fell due during 2017 and financing extension (€43.8 million), Shopville Gran Reno extension in Bologne future development needs. They are detailed below: Italy (€16.2 million), and the acquisition of additional leaseholds and In February, Klépierre issued €500 million worth of new long-term extensions in Blagnac, France (€15.2 million). notes (10 years) bearing a 1.375% coupon. Shortly after, this issuance was complemented by a €100 million tap. This issuance allowed to 1.2 Main disposals cover the repayment of €615 million of 4% notes maturing in April 2017. In April, Klépierre signed two revolving credit facilities (five years) for During the year 2017, the Group completed the following disposals: an aggregate amount of €200 million. Simultaneously, €200 million > the Lillestrøm Torv shopping center in Norway (on January 23); of more expensive and shorter line was cancelled. In the meantime, agreements were found with two banks in order to extend €175 million > the Charras shopping center in France (on January 31); of undrawn facilities to 2022. > the Vigie Strasbourg shopping center in France (on March 2); At the end of June, Klépierre received banking syndicate approval > the office part of the Emporia shopping center in Sweden (on to extend the €850 million syndicated revolving credit facility signed March 31); last year for an additional year. The new final maturity on this line is now July 2022. > two shopping centers in Spain: Alicante and Augusta (on In December, Klépierre issued €500 million worth of new 15-year February 20 and May 31); notes. The coupon was set at 1.625%. The proceeds of the issuance > a newly constructed hotel shell located in Utrecht in the covered the refinancing of the bond maturing in January 2018 for Netherlands (on July 12); €291 million. > the Val Saint-Clair shopping center in France (on October 13); Simultaneously, Klépierre repurchased three existing notes which matured respectively in September 2019, February 2021 and March > the shares of company holding a land in Bulgaria (on December 28). 2021 for a total amount of €97 million. Moreover, a set of 16 retail units, a warehouse in Clamart and a land In Scandinavia, Klépierre has been active on the market by issuing were disposed in France over the period. 900 million Norwegian Kronor and 500 million Swedish Kronor in bonds in order to refinance existing loans. 1.3 Dividend On April 18, 2017, the shareholders’ meeting approved the payout of a €1.82 per share dividend in respect of the 2016 fiscal year, and proposed a cash payment. Cash dividend paid by Klépierre totaled €562 million (no dividends for treasury shares). Note 2 Significant accounting policies 2.1 Corporate reporting 2.2 Application of IFRS Klépierre is a French corporation (“Société Anonyme” or SA) subject As per Regulation (EC) No. 1126/2008 of November 3, 2008 on to French company legislation, and more specifically the provisions the application of international accounting standards, the Klépierre of the French Commercial Code. The Company’s registered office is Group’s consolidated financial statements through December 31, 2017 26, boulevard des Capucines in Paris. have been prepared in accordance with IFRS (International Financial On January 29, 2018, the Executive Board approved the consolidated Reporting Standards) published by the IASB (International Accounting financial statements of Klépierre SA for the period from January 1 to Standards Board), as adopted by the European Union and applicable December 31, 2017, and authorized their publication. on that date. Klépierre shares are admitted to trading on Euronext Paris The IFRS framework as adopted by the European Union includes (compartment A). the IFRS, the IAS (International Accounting Standards) and their interpretations (SIC and IFRIC). This framework is available on the website: http://ec.europa.eu/ internal_market/accounting/ias/index_en.htm KLÉPIERRE 2017 REGISTRATION DOCUMENT 77