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Page Background 1 I COMPANY ACTIVITY FOR THE FINANCIAL YEAR AND OUTLOOK FOR THE COMING YEAR 74 1.1 I Appropriation of earnings 75 2 I FINANCIAL STATEMENTS 78 2.1 I Income statement 78 2.2 I Company balance sheet 79 2.3 I Statement of cash flows 80 2.4 I Change in shareholders’ equity 80 3 I NOTES TO THE COMPANY FINANCIAL STATEMENTS 81 3.1 I Accounting principles and policies 81 3.2 I Detail of the balance sheet items 82 3.3 I Detail of main income statement items 86 3.4 I Financial commitments 86 3.5 I Subsidiaries and holdings 88 3.6 I Identity of the consolidating Company 89 3.7 I Award of performance shares 89 3.8 I Miscellaneous information 89 4 I FINANCIAL RESULTS FOR LISI S.A. OVER THE PAST FIVE YEARS 90

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COMPANY FINANCIAL STATEMENTS

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LISI 2017 FINANCIAL REPORT