GECINA - REFERENCE DOCUMENT 2017

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

GROSS DEBT HEDGING

12/31/2017 5,146,010 (234,565) 4,911,445 3,388,685 234,565 3,623,250 (745,000) 2,878,250 (1,856,800)

In €’000

FIXED-RATE GROSS DEBT

Fixed-rate debt converted to floating rate RESIDUAL DEBT AT FIXED RATE GROSS DEBT AT FLOATING RATE Fixed-rate debt converted to floating rate

GROSS DEBT AT FLOATING RATE AFTER CONVERSION OF DEBT TO FLOATING RATE

Fixed- rate payer swaps and activated caps/ floors UNHEDGED GROSS DEBT AT FLOATING RATE

Caps purchases

Caps sales

0

03

FLOATING RATE DEBT

1,021,450

The fair value of hedging instruments, as recorded on the balance sheet, breaks down as follows:

Eurosic acquisition

Transfer between items

Change of valuation 12/31/2017

12/31/2016

values Acquisitions Disposals

In €'000

Non-current assets

0

15,362

0 0

0 0

2,373

17,735

Current assets

1,537

4,897

(349)

(3,947)

2,138

Non-current liabilities

(31,013)

(3,320)

0 13,330

349 14,145 (6 ,509)

Current liabilities

0

(410)

0

0

0

163

(247)

TOTAL

(29,476)

16,529

0 13,330

0 12,734 13,117

Financial instruments (current and non-current assets and liabilities) increase by €43 million (of which €17 million due to Eurosic acquisition values). This can be explained by: the restructuring of financial instruments for €13 million; ■ the €13 million increase in value related to the change in rates in 2017 and the timing impact. ■

Provisions 3.5.5.13

Eurosic acquisition

Write- backs Utilizations

Reclas- sification 12/31/2017

12/31/2016

values Allocations

In €’000

Tax reassessments

9,141

0

3 (2,141) 659 (1,018)

0 0 0

0 0 0 0

7,002

Employee benefit commitments

14,647

867

15,155

Spain commitments

4,800

0

0

0

4,800 9,796

Other disputes

12,450 41,038

1,156

2,272 (1,922)

(4,160) (4,160)

TOTAL

2,023 2,933 (5,081)

0 36,753

Some companies within the consolidation have been the subject of tax audits leading to notifications of tax reassessments, the majority of which are contested. These tax reassessments for a total amount of €170 million are contested by the company and are essentially not accrued as a provision. At December 31, 2017, the total amount accrued as a provision for the fiscal risk is €7 million, based on the assessments of the company and its advisers. Furthermore, the company has several ongoing litigations with the French tax administration, which could result today, in the reimbursement of a maximum amount of nearly €14 million. This amount is related to the corporate income tax paid in 2003 when several Group companies opted for the SIIC tax regime. These amounts, which could be

recovered at various dates in light of the various ongoing proceedings, were expensed at the time of payment and therefore no longer appear on the company’s balance sheet. The Group has also, directly or indirectly, been the subject of liability actions and court proceedings instigated by third parties. Based on the assessments of the company and its advisers, there is no risk that is not accrued, which would be likely to significantly impact the company’s earnings or financial situation. Employee benefit commitments (€15,2 million) concern supplemental pensions, lump-sum retirement benefits, and anniversary premiums. They are valued by independent experts.

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GECINA - REFERENCE DOCUMENT 2017