IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements Other operating income in the years ending on 31 December 2017 and 2016 are broken down as follows: Other operating income 2017 2016 Supplementary income (1) 8.005.191 5.876.673 Indemnification (2) - 2.397.758 Compensations (3) 532.289 415.595 Gains in fixed assets 734.570 1.752 Operating grants 120.836 154.367 Impairment adjustments reversion (debts receivable) 119.940 156.468 Reduction of provision (Note 19) 105.000 - Investment grants 45.461 79.507 Other operating gains 117.749 7.850 9.781.036 9.089.970 (1) Mainly from revenues from contracts with franchisees (Eat Out Group) and suppliers and, in 2016, there is an additional amount of € 951 thousand, from non-recurring services rendered to third parties. (2) As a result of the formalization of the agreement entered into with Ascendi, non-recurring income of € 2.397.758 was recorded in operating income corresponding to compensation for loss of traffic in former scuts (free highways). (3) Traffic loss compensation for the 2017 and 2016 financial years, as in the agreement referred to in (2). 27. NET FINANCING COST Net financing cost in the years ending on 31st December 2017 and 2016 are broken down as follows: 2017 2016 Interest paid 4.733.959 2.786.616 Interest earned (1) -1.356.240 -2.554.156 Currency exchange differences -66.524 -95.540 Payment discounts obtained -10.751 -10.625 Other financial costs and income 2.097.166 1.069.130 5.397.610 1.195.425 (1) In 2017 and 2016, essentially related to (a) interest on treasury bonds and term deposits. (b) in addition Aenor’s compensation interest. It was agreed not to install the Service Areas of Guimarães, Fafe and Paredes and the respective concession rights that gave rise to the receipt of contractual interest in the amount of 1.570.323. The detail of other financial costs and income, is presented as follows: 2017 2016 Bank services (1) 1.228.783 790.990 Financial instruments - cash flow hedge (Note 20) 120.519 -66.666 Commercial paper programmes charges 698.732 325.608 Other commissions 78.819 96.830 Other financial cost and gains -29.687 -77.632 2.097.166 1.069.130 (1) Amount referring essentially to bank commissions on guarantees and commissions on treasury bonds transactions in Angola. 270