GECINA - REFERENCE DOCUMENT 2017

03

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Covenants The company’s main credit facilities are accompanied by contractual clauses relating to compliance with certain financial ratios, determining interest rates charged and early repayment clauses, the most restrictive of which are summarized below:

Balance at 12/31/2016

Balance at 12/31/2017

Benchmark standard

Net debt/revalued block value of property holding (excluding duties)

Maximum 55% / 60% 42.4% 29.4%

EBITDA (excluding disposals)/net financial expenses

Minimum 2.0x

5.6x

4.9x

Outstanding secured debt/revalued block value of property holding (excluding duties) Revalued block value of property holding (excluding duties, in € million)

Maximum 25% 3.6% 6.5%

Minimum 6.0 / 8.0

19.6

12.2

Change of control clauses For bonds maturing in December 2018, February 2019, March 2019, April 2019, July 2019, August 2019, July 2020, July 2021, June 2022, November 2022, January 2023, May 2023, November 2023, June 2024, January 2025, June 2026, June 2027, January 2028, January 2029 and June 2032, a change of control leading to the downgrading of the credit rating to “Non-Investment Grade” not raised to “Investment Grade” within 120 days, can lead to early repayment of the loan.

Financial instruments 3.5.5.12.2 The financial instruments (Level 2 instruments as defined by IFRS 7 and IFRS 13) held by the Group are hedging instruments. The financial instruments held by the Group are traded on the over-the-counter market and valued on the basis of valuation models using observable inputs.

PORTFOLIO OF DERIVATIVES

Maturity or effective date More than 5 years

Maturity or effective date < 1 year

Maturity or effective date 1 to 5 years

Outstanding 12/31/2018

Outstanding 12/31/2022

Outstanding 12/31/2017

In €’000

PORTFOLIO OF OUTSTANDING DERIVATIVES Fixed-rate receiver swaps

234,565 (175,565) 745,000 (45,000)

59,000 (59,000) 700,000 (400,000)

0

0

Fixed-rate payer swaps

300,000 (300,000)

Selling of puts and calls on fixed rate payer swaps Purchasing of puts and calls on fixed rate receiver swaps

0 0

0 0

0 0

0 0

0 0 0 0 0

0 0 0 0 0

Caps (purchases)

1,856,800 (195,000)

1,661,800 (1,661,800)

Caps (sales) Floors sales

0 0

0 0

0 0

0 0

TOTAL

2,836,365 (415,565) 2,420,800(2,120,800)

300,000 (300,000)

PORTFOLIO OF DERIVATIVES WITH DELAYED EFFECT Fixed-rate receiver swaps

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0

0

0

0

Fixed-rate payer swaps

0 400,000 400,000 (400,000)

Selling of puts and calls on fixed rate payer swaps Purchasing of puts and calls on fixed rate receiver swaps

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

Caps (purchases)

Caps (sales) Floors sales

TOTAL

0 400,000 400,000 (400,000)

TOTAL PORTFOLIO OF DERIVATIVES Fixed-rate receiver swaps

234,565 (175,565) 745,000 (45,000)

59,000 (59,000)

0

0

Fixed-rate payer swaps

700,000

0 700,000 (700,000)

Selling of puts and calls on fixed rate payer swaps Purchasing of puts and calls on fixed rate receiver swaps

0 0

0 0

0 0

0 0

0 0 0 0 0

0 0 0 0 0

Caps (purchases)

1,856,800 (195,000)

1,661,800 (1,661,800)

Caps (sales) Floors sales

0 0

0 0

0 0

0 0

TOTAL

2,836,365 (415,565) 2,420,800(1,720,800)

700,000 (700,000)

Future interest cash flows on derivatives

0 (5,019)

0

(549)

0 15,702

86 GECINA - REFERENCE DOCUMENT 2017

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