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 64 The detail for 2016 is as follows: CHANGES IN DEFERRED TAX ASSETS Thousands of euros 2015 Additions Disposals Other Effect of change in tax rate IFRS adjustments 2016 Contingencies and charges 12,514 2,866 2,149 (222) 11 - 13,020 Payables 224 762 60 - - - 927 Hedging instruments (954) (639) - - - - (1,593) Tax effect of assets at fair value 392 - 256 (152) 16 - - Other 4,938 3,948 863 480 (13) (3,702) 4,789 Total 17,114 6,938 3,327 105 15 (3,702) 17,143 The changes in deferred tax assets recognised in "Other" include mainly the difference between the estimated tax for 2016 and the tax return actually filed with the taxation authorities. The deferred tax assets table includes hedging instruments, which are not included in the temporary differences or deferred tax assets in the tables in Note 22.c), since for tax purposes they are recognised directly in equity. “IFRS adjustments” includes the elimination of the tax effect of amortisation of goodwill of Uniprex, which is not allowed under IFRS. “Inclusions in the scope of consolidation” includes deferred tax assets of Smartclip, acquired in July 2017 (see Note 4). At 31 December 2017, the Group had EUR 122,236 thousand of unused tax credits, arising mainly on investment in audiovisual and film productions. Of the total unused tax credits, the Group has recognised EUR 121,728 thousand. Amount Limit 25,225 2026 18,985 2027 12,986 2028 23,500 2029 15,108 2030 15,009 2031 11,423 2032 122,236 In 2014, the Group acquired ownership interests of 40% and 14% in the Enelmar and Producciones Ramsés economic interest groupings (EIGs). In view of the particular nature of income taxation of EIGs (including the recognition of tax credits and tax losses to the partners), in 2016 the Group recognised a tax loss amounting to EUR 2,597 thousand.