GECINA - REFERENCE DOCUMENT 2017

RISKS Risks

SUMMARY TABLE OF MAIN MODERATE RISKS AND CONTROL PROCESSES

Change over the 2016-2017 period

Risks

CONTROL PROCESSES

MODERATE RISK LEVEL CSR RISKS

Risks related to the sensitivity of real estate assets and changing social pressures: climate change (rising average ■ temperatures) and increased number of extreme weather events (heat waves, floods, droughts, storms); scarcity of resources and increases in ■ the prices of the raw materials (sand, water, energy, etc.) requiring the implementation of circular economy procedures; changes in urban development ■ conditions (urban diversity and territorial inclusion). Impacts: increases in insurance premiums, ■ operating costs (consumables and technical maintenance) and the construction costs of assets; deterioration in the valuation of the ■ Group’s assets; damage to its image and reputation. ■

The CSR roadmap is fully integrated in the ■ objectives and action plans of the various operational departments for the operation of the office and residential portfolio, the inclusion of environmental performance in investments and in developments. A CSR team is dedicated to leading and coordinating the strategy, raising the awareness of, and supporting, employees and monitoring changes in the issues and potential solutions. These items are explained in chapter 7 of this document (see 7.2); Gecina launched a study to analyze the impact of ■ physical risks related to climate change on its buildings in order to identify and implement the adaptation plans required for their proper operation and to measure the financial impact, in response to the requirements of Article 173 of the energy transition law for green growth (see 7.3.2); In addition, the Group is working to manage the ■ carbon footprint of its developments with the aim of optimizing the energy efficiency of the materials used via bio-sourced and recycled materials and is undertaking actions with its tenants to promote waste sorting and the circular economy (see 7.5.1 and 7.5.3); and Gecina also takes into account the environmental ■ impact of the products and services it purchases from its suppliers. It updated its ethics charter in 2017 to further its integration and that of the fight against money laundering, the financing of terrorism, and corruption (see 7.6.4 and 7.7.4). Generally, the Group follows a policy of prudent interpretation of the regulations and has set its goals beyond the regulatory obligations. With respect to legal risks: the operational departments are assisted by the ■ Legal Department in their regulatory watch and in vetting the various contracts signed within the Group. The departments also call upon external legal advisors, where necessary. Regulatory changes result in updates to standard contracts and the relevant processes. With respect to tax risks: compliance with tax regulations is supervised by ■ the Finance Department, which conducts periodic reviews, calling in external advisors whenever necessary LEGAL AND TAX RISKS

The risk is the subject of medium- and long-term action plans intended to monitor it and anticipate future changes. Despite a consistent and effective control process and close governance, this risk is growing due to the scale and increasing multiplicity of external factors.

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The Group is required to comply with ■ numerous legal and tax regulations. Changes in the nature, interpretation, application or compliance with the formalism associated with these regulations could call into question certain Gecina practices or activities, and/or adversely impact its financial position and earnings (see section 3.5.5.13 "Provisions"). Impacts: challenge to certain Gecina practices ■ or activities; adverse impacts on the Group’s ■ financial position and earnings.

As a major player in the real estate market, the Group complies with the regulations in force. The Group is permanently adapting to changes in legislation.

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GECINA - REFERENCE DOCUMENT 2017