FINANCIAL STATEMENTS Consolidated financial statements as of December 31, 2017 3 12/31/2017 12/31/2016 In €m 100% Group share 100% Group share Revenues from ordinary activities 27.1 11.9 40.1 17.9 Operating expenses -9.2 -4.1 -14.3 -6.5 Change in value of investment properties -40.0 -18.4 30.1 14.2 Financial income 1.0 0.5 0.9 0.4 Profit before tax -21.0 -10.2 56.8 26.0 Tax – – NET INCOME -21.0 -10.2 56.8 26.0 5.6 Other non-current assets Accounting policies Financial assets Financial assets include long-term financial investments, current assets representing accounts receivable, debt securities, investment securities (including derivatives) and cash. IAS 39 “Financial instruments: recognition and measurement” describes how financial assets and liabilities must be measured and recognized. Measurement and recognition of financial assets Loans and receivables These include receivables from investments, other loans and receivables. All are recognized at amortized cost, which is calculated using the effective interest rate method. The effective interest rate is the rate that precisely discounts estimated future cash flows to the net carrying amount of the financial instrument. Available-for-sale financial assets Available-for-sale financial assets include equity interests held in non-consolidated companies. Investments in equity instruments not listed in an active market and whose fair value cannot be reliably measured must be measured at cost. Cash and cash equivalents Cash and cash equivalents include cash held in bank accounts, short-term deposits maturing in less than three months, money market funds and other marketable securities. Change In €m 12/31/2016 in scope Increases Reductions Other 12/31/2017 Other long-term investments 0.1 -0.3 0.4 0.1 Loans and advances to non-consolidated companies and companies consolidated using the equity method 335.3 24.8 -57.0 -0.8 302.3 Loans 0.2 1.8 -1.9 0.1 Deposits 14.0 2.3 2.3 -2.8 -0.0 15.7 Other long-term financial investments 1.3 -0.1 -0.1 1.1 TOTAL 350.8 2.3 28.9 -62.1 -0.5 319.3 KLÉPIERRE 2017 REGISTRATION DOCUMENT 91