Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 35 Inventoriable in-house productions are expected to be amortised in full and approximately EUR 159,000 thousand of external production rights will be amortised in 2018 (see Note 4.6). 12.- Equity and shareholders’ equity Shareholder structure at year-end 2017: % ownership Grupo Pasa Cartera, S.A. Unipersonal 41.70 Ufa Film und Fernseh GMBH 18.65 Imagina Media Audiovisual, S.L. 3.58 Mediaproducción, S.L. Unipersonal 0.65 Treasury shares 0.35 Other shareholders 35.07 Total 100 In April 2017, Mediaproducción, S.L. Unipersonal, whose sole shareholder is Imagina Media Audiovisual, S.L., absorbed, in a merger by absorption, subsidiary Mediapro Contenidos, S.L. Unipersonal, the previous holder of shares of the Company representing 0.65% of its share capital. There are agreements among the main shareholders that guarantee the Company’s shareholder stability, the grant of mutual rights of acquisition on their shares, the undertaking not to take control of the Company or to permit a third party to do so, and also include management agreements, as described in the Annual Corporate Governance Report. At 31 December 2016 and 2016, the share capital of the Company amounted to EUR 169,300 thousand and was represented by 225,732,800 fully subscribed and paid shares of EUR 0.75 par value each, which carry the same rights. The shares of the Company are admitted to trading on the Spanish Stock Market Interconnection System (Continuous Market). 12.1 Reserves Under the Spanish Companies Act, the Company must earmark an amount equal to 10% of profit for the year to a legal reserve until such reserve reaches at least 20% of the capital. The legal reserve can be used to increase capital by the amount exceeding 10% of the increased capital amount. Except for this purpose, until the legal reserve exceeds the limit of 20% of share capital, it can only be used to offset losses, if there are no other reserves available. At 31 December 2017, the legal reserve was fully allocated (EUR 33,860 thousand). This item also includes a restricted amount of EUR 281 thousand related to “Reserve for the adjustment of share capital to euros”. As a result of the capital reduction made in 2006, a reserve of EUR 8,333 thousand was established, equal to the par value of the redeemed shares, which may only be used if the same requirements as those for the reduction of share capital are met, pursuant to Article 335.c of the Spanish Companies Act. The remaining reserves are unrestricted.