GECINA - REFERENCE DOCUMENT 2017

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RISKS Risks

Risks

Change over the 2016-2017 period

CONTROL PROCESSES

MODERATE RISK LEVEL DIGITAL AND TECHNOLOGICAL RISKS

Risks related to the change in the external IT environment. These risks consist primarily of the risks related to physical and software security, information flows, loss of information, failure in the IT security system, and cyberattacks. Impacts: data processing failure; ■ loss or destruction of IT equipment, ■ data and archives; cost of repair or reconstruction. ■

management of this risk is monitored by the ■ Department of Information Systems through: 24/7 monitoring of the information systems, ■ an IT watch, increasing employee awareness of ■ electronic and technological risks, a Committee that meets bi-monthly, and monthly ■ reporting of the main security indicators; software security applications (antiviruses, firewalls, ■ filtering, encryption systems, etc.); the existence of procedures such as the procedure ■ for backup and storage on the network space, internal procedures to monitor systems operations, a procedure governing archives, and the validation procedures when software is acquired/installed; penetration tests conducted annually by an external ■ company; IT charter distributed on the Intranet. ■

This risk is considered to be trending upward. This is due to the evolving external environment, the increased computerization of business line processes and objects and the standardization of Gecina/Eurosic applications currently under way. The Group has strengthened its control process for this purpose.

See chapter 1 for the four main risks.

6.1.3

ADDITIONAL INFORMATION ABOUT CERTAIN RISK FACTORS

Risks linked to a drop in the financial occupancy rate of its buildings, primarily in office buildings

6.1.3.1

combined with an increase in operating expenses borne by the Group, resulting from the fact that Gecina cannot recharge part of the overheads relating to the vacant premises, together with rehabilitation expenses before the property is put back on the market. Should Gecina be unable to attract enough tenants to rent its offices and maintain a satisfactory financial occupancy rate and rental income, this could adversely affect its revenues, operating income, profitability and valuation of its property holdings.

The average financial occupancy rate of the Group’s buildings was 95.4% at the end of December 2017. When the current leases expire, Gecina may be unable to renew or lease the assets concerned as rapidly as it expects and with terms as favorable as those of the current leases. The vacancy of some premises could have a negative impact on Group results for several reasons: the absence of rent

RENTAL VOLUME BY THREE-YEAR COMMERCIAL LEASE TERMS

2018

2019

2020

2021

2022

2023

2024 > 2024

In € million Offices

111

117

100

RENTAL VOLUME BY COMMERCIAL LEASE AGREEMENTS EXPIRY SCHEDULE