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 48 - Once the inventories and the related payables to suppliers are recognised, the changes in fair value of the foreign currency derivatives and in the value of the payables are recognised in the statement of profit or loss at each accounting close. At 31 December 2017, the Group had entered into hedging instruments on its foreign currency asset and liability positions amounting to USD 144,895 thousand, at a weighted average exchange rate of 1.1467 (USD/EUR). Hedging instruments at 31 December 2016 amounted to USD 197,523 thousand, at a weighted average exchange rate of 1.1423 (USD/EUR). Total amounts of the outstanding forward currency purchase contracts entered into by the Group at year-end 2017 and 2016: Fair value (thousands of euros) 2017 Classification Type Expiry Amount contracted (thousand euros) Ineffective portion recognised in profit or loss (thousands of euros) Assets Liabilities Currency forwards Foreign currency hedge Purchase of USD 2018 89,540 - 23 5,367 Currency forwards Foreign currency hedge Purchase of USD 2019 28,818 - - 2,166 Currency forwards Foreign currency hedge Purchase of USD 2020 7,708 - - 510 Currency forwards Foreign currency hedge Purchase of USD 2021 289 - - 21 Fair value (thousands of euros) 2016 Classification Type Expiry Amount contracted (thousand euros) Ineffective portion recognised in profit or loss (thousands of euros) Assets Liabilities Currency forwards Foreign currency hedge Purchase of USD 2017 113,477 - 8,767 3 Currency forwards Foreign currency hedge Purchase of USD 2018 52,173 - 2,832 21 Currency forwards Foreign currency hedge Purchase of USD 2019 6,266 - 282 15 Currency forwards Foreign currency hedge Purchase of USD 2020 723 - 26 - Currency forwards Foreign currency hedge Purchase of USD 2021 276 - 9 - At 31 December 2017, the estimated fair value of the Group's foreign currency derivatives, which are designated and effective as cash flow hedges, represented a financial asset of EUR 23 thousand and a financial liability of EUR 8,064 thousand (2016: asset of EUR 11,916 thousand and liability of EUR 39 thousand). The measurement method consists of estimating the present value of the future cash flows that will arise under the terms and conditions arranged by the parties for the derivative instrument. The spot price is taken to be the reference exchange rate of the European Central Bank on 31 December 2017, the swap points (offer/bid), the interest rates prevailing at the measurement date and the credit risk. The sensitivity analysis of the foreign currency derivative financial instruments demonstrates that changes of +/-10% in the USD/EUR exchange rate prevailing at year-end would give rise to changes in fair value within a range of EUR +/-12.2 million for hedges whose underlying is in force at year-end, and changes of EUR +/-2.5 million for hedges whose underlying is not yet in force and therefore affect equity. Appreciations in the USD/EUR exchange rate give rise to increases in value, and depreciations to decreases.