GECINA - REFERENCE DOCUMENT 2017

RISKS Risks

Underlying principles The process has been identical since it was set up in 2006. As of July 3, 2017, this mechanism has been steered by the Offices Department and concerns all of Gecina’s property portfolio.

addition to the five-year visit reports already conducted), the inclusion of summaries on asbestos per site following a new visual that allows easier access to information, the integration of the new control obligations in relation to Gas and Electricity facilities within the DDT (Technical Audit File) locations, the creation of specific access channels for those conducting audits that make it possible to establish a control and exchange work flow on audit reports before their integration into the files (extended to all areas of real estate audits), the introduction of mobile applications to facilitate the preparation of occupational risk prevention and risk assessments plans in the field, and the development of the platform in order to integrate the new Gecina organizational framework. The scope of property holdings concerned (excluding Eurosic acquisition) It covers all of the Group’s activities, not including the Eurosic sites. The integration of these new real estate assets will take place during 2018. Therefore, the risk mapping and DDT module are currently used to process 186 assets ( versus 192 in 2016), 33 of which are in the process of being sold. 28 with the unit surface area < 200 sq.m, are solely monitored within the framework of DDT sale. The 38 remaining assets are discarded because they are atypical (sites under construction, under management for third parties or withdrawn from market). In 2017, changes in the scope mainly related to the finalization of the disposals of housing units across ten assets, not offset by the acquisition of two office sites, Paris-Guersant 2 and Adamas-La Défense, and the delivery of two student residences in Marseille and La Défense. Calculation method Assets are rated and ranked using measurement indicators by: the introduction of sets of different indicators adapted to ■ the method of holding (full ownership or joint ownership) and renting (multiple tenants or single tenant); the improvement of the performance of the assets over ■ and above regulatory compliance; the introduction of a rating of indicators by area, on ■ three levels modeled on the HQE ® process: standard: level corresponding to the regulatory ■ performance. It may exceed the level required by the regulation if that regulation is not considered sufficiently demanding with regard to the efficiency of buildings, efficient: standard level reached + level corresponding ■ to satisfactory performance defined by Gecina, very efficient: level corresponding to best industry ■ practices. The 18 areas are assessed: either through self-assessment by operational ■ departments and audited by an independent external auditor; or by qualified and independent external third parties. ■ The efficiency of an area on each asset is then calculated according to whether the standard, efficient and very efficient indicators were assessed and/or met.

Identify the risks

Monitor control and the process

Analyze and rank the risks

MANAGEMENT OF REAL ESTATE RISKS

Measure the risks

Handle the risks

Define the strategy to control the risks

Risk control support tool Since 2006, the Gecina group has been supported by Provexi. Provexi provides Gecina with a secure web platform, where data linked to the risks for its assets in the 18 mapped areas is centralized, structured and harmonized. All the audits required by regulation (asbestos, lead paints, etc.) and those stemming from Gecina’s strategic policy (flood, fire, operational safety, mobile telephony antennas, etc.) are integrated and controlled on this platform. Dynamic dashboards make it possible to constantly monitor buildings’ compliance with Gecina’s regulations and strategy. The action plans to be undertaken stem from the support tool, and promote a better awareness of the risks and, once addressed, boost the efficiency of the assets. Since 2011, in collaboration with Provexi, the “Technical Audit Files” (DDT) module has been added to the mechanism. It makes it possible to generate, directly on the platform, the files that need to be produced when a unit is rented or sold. Warning systems have been set up to inform operational staff of actions to be implemented or non-satisfactory controls for compiling the Technical Audit Files. A simulation tool allows projection of the compliance level of documents on the estimated date of the sale or the arrival of a new tenant. The improvements made to the mechanism over 2017 include, in particular, an adjustment of the lead and water indicators, the establishment of periodic elevator visits (in

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GECINA - REFERENCE DOCUMENT 2017