Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 43 Taxes recognised directly in equity in 2016: Thousands of euros Increases Decreases Total Current tax: Capital increase expenses Capital reduction expenses Total current tax Deferred tax: Originating in the year: Available-for-sale financial assets Revaluation of other financial assets Government grants Effect of first-time application of new Spanish National Chart of Accounts Originating in prior years: Available-for-sale financial assets Revaluation of other financial assets Government grants 639 (639) Total deferred tax 639 (639) Total tax recognised in equity (639) 16.4 Reconciliation of accounting profit and income tax expense Reconciliation of accounting profit and income tax expense (in thousands of euros): 2017 2016 Accounting profit before tax 158,058 156,406 Tax charge at 25% 39,514 39,102 Tax credits earned in the year: Audiovisual productions Donations to not-for-profit entities Other (11,344) (11,286) (43) (16) (14,517) (14,337) (180) - Offset of tax losses: Other – Permanent differences (Note 16.2) (8,664) (8,872) Total current income tax expense for the year 19,507 15,713 Income tax adjustments Difference in income tax per tax return Change in income tax rate Other adjustments to income tax 1,259 1,259 - - 16,204 129 41 16,034 Total income tax expense recognised in profit or loss 20,766 31,917 Income tax expense for the year (in thousands of euros): 2017 2016 Current tax 12,234 10,100 Deferred tax 7,273 5,613 Total income tax expense for the year 19,507 15,713 16.5 Deferred tax assets recognised The difference between the tax charge allocated to the current year and to prior years and the tax charge already paid or payable for those years, recognised under “Deferred tax assets”, arose as a result of temporary differences on the following items: CHANGES IN DEFERRED TAX ASSETS Thousands of euros 2016 Additions Disposals Other 2017 Contingencies and charges 9,156 69 841 367 8,751 Payables 825 375 563 - 637 Other 1,994 - 168 (269) 1,558 Hedging instruments (1,593) 1,778 - 176 361 Total 10,382 2,222 1,571 275 11,307