Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. and Subsidiaries Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 2 and 29). In the event of discrepancy, the Spanish-language version prevails. 2017 CONSOLIDATED FINANCIAL STATEMENTS 47 Non-current balances drawn down at 31 December 2016 by maturity: Reconciliation between the change in financial liabilities related to financing activities and the relate cash flows in 2017: Facilities (thousands of euros) Balance at 31/12/16 Receipts Fees paid Accrued fees Balance at 31/12/17 Syndicated loan 121,500 54,714 (3,050) 1,836 175,000 Syndicated facility 20,513 12,461 - - 32,974 Bilateral facilities 38,120 18,490 - - 56,610 Total 180,133 85,665 (3,050) 1,836 264,584 15. Derivative financial instruments Foreign currency hedges The Group uses currency derivatives to hedge significant future transactions and cash flows in USD and mitigate the foreign currency risk. They relate, in all cases, to cash flow hedges for payment obligations in USD relating to the purchase of broadcasting rights (the underlying), in which the exposure to the EUR/USD exchange rate is hedged (hedged risk), which gives rise to a potential change in the cash flows payable in euros for broadcasting rights. This change affects the profit or loss of the period(s) in which the planned payment transaction has not been performed. The Group applies hedge accounting and documents the hedging relationships and measures their effectiveness as required by IAS 39. In general, on assumption of the commitment to purchase the broadcasting rights, the Group enters into a foreign currency derivative that expires on the payment dates of the payables to suppliers. A hedging relationship is arranged that covers the entire term of the derivative, i.e. the derivative is considered to be a hedging instrument from its inception (when the commitment to purchase the broadcasting rights is assumed) up to the date of payment of the contracted broadcasting rights. Changes in the fair value of the derivative are recognised temporarily in equity up to the beginning of the term of the right, and are finally reclassified from equity to profit or loss in order to offset the impact on profit or loss of changes in the value of the hedged item, as follows: - At the beginning of the term of the right (which is the date on which Atresmedia may use the broadcasting rights and, therefore, recognises the acquisition under “Inventories” in the balance sheet) the effective portion of changes in fair value from inception up to that date recognised in equity are included as an increase in/reduction of the carrying amount at which the inventories were recognised. Thousands of euros 2018 2019 Total Syndicated financing 27,000 76,478 103,478