GECINA - REFERENCE DOCUMENT 2017

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Impacts of the business combination 3.5.6.9 This account represents exclusively the costs incurred as part of the acquisition of Eurosic, i.e. €28.6 million

Net financial expenses 3.5.6.10 Net financial expenses specifically include (i) interest, coupons or dividends, received or paid, to be received or to be paid, on financial assets and liabilities including hedge financial instruments; (ii) net gains and losses on assets held for trading (UCITS and other shares held for the short term) and (iii) straight line depreciation of premiums on option and periodic premiums on option; (iv) the straight line depreciation of the cost of arranging these loans and credit lines.

12/31/2016

12/31/2017

In €’000

Interests and expenses on bank loans Interests and expenses on bond borrowings

(24,915) (69,375)

(22,836) (69,852)

03

Interests on finance leases

(231)

(404)

Interest expenses on hedging instruments

(5,317)

(1,207) (2,388)

Other financial costs

(140) (190)

Losses from translation differentials

(24)

Capitalized interests on projects under development

16,144 (84,024)

6,464

FINANCIAL COSTS

(90,246)

Interest income on hedging instruments

2,774

0

Other financial income

836

2,680

Gains from translation differentials

0

0

FINANCIAL INCOME

3,610

2,680

NET FINANCIAL EXPENSES

(80,414)

(87,566)

The average cost of the drawn debt was 1.3% in 2017.

Change in value of derivatives 3.5.6.11 and debts

Financial instruments net (current and non-current) decrease by €43 million. Based on the portfolio at December 31, 2017, the change in fair value of the derivatives portfolio, as a result of a 0.5% increase in the interest rate, would be €26 million recognized in income. A 0.5% interest rate cut would result in a change in fair value of -€26 million recorded in income. The Group holds all financial instruments to hedge its debt. None of them is held for speculative purposes.

Based on the existing hedge portfolio and taking into account contractual conditions at December 31, 2017, and the anticipated debt in 2018, a 0.5% increase in the interest rate would generate an additional expense in 2018 of €7,9 million. An interest rate decrease of 0.5% would lead to a drop in financial expenses in 2018 of €7,9 million.

Taxes 3.5.6.12

12/31/2016

12/31/2017

In €’000

Income tax

29

(31)

Additional contribution to corporate income tax

1,741

(9)

CVAE

(3,838)

(3,207)

Tax credits

77

63

Repayment of tax credits

(1,038) (3,029) (2,275)

RECURRING TAXES Non-recurring taxes

(3,184)

(362)

Tax credits

0

24

Deferred taxes

(1,619) (6,923)

0

TOTAL

(3,521)

95

GECINA - REFERENCE DOCUMENT 2017