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 56 Net gain/(loss) on changes in fair value in 2017 and 2016 by item: Thousands of euros 2017 2016 Hedging instruments (Note 15) (13,714) (6,074) Other non-current liabilities (Note 13) (163) (845) Total (13,877) (6,919) b) Exchange differences This item includes the exchange gains and losses arising on the Group's commercial transactions, relating mainly to the purchase of audiovisual productions in foreign currencies. c) Financial loss This item in the consolidated statement of profit or loss for 2017 includes mainly the interest expense on bank borrowings. In 2017, finance costs amounted to EUR 7,221 thousand and finance income to EUR 2,314 thousand. In 2016, finance costs amounted to EUR 6,157 thousand and finance income to EUR 2,553 thousand. d) Impairment and gains/(losses) on disposal of financial assets This item in the consolidated statement of profit or loss includes impairment losses on financial assets recognised in the year, determined on the basis of an analysis of the recoverability of the investments, including investments in companies accounted for using the equity method, and the net gains or losses arising from the disposal of these assets and assets held for sale. The balance at 31 December 2017 related mainly to the impairment arising on the adjustment to fair value of non-current investments, of EUR 2,671 thousand, and the losses on the disposal of these instruments, of EUR 2,110 thousand. The balance at 31 December 2016 related mainly to the impairment arising on the adjustment to fair value of non-current investments, of EUR 5,366 thousand, and the gains on the disposal of these instruments, of EUR 1,221 thousand.