GECINA - REFERENCE DOCUMENT 2017

09

ADDITIONAL INFORMATION Statutory Auditors

Evaluation of financial fixed assets (Note 4.3.3.2. to the financial statements)

Description of risk A number of liability claims and lawsuits have been filed against Gecina, directly and indirectly, by third parties. Note 4.3.6.1. to the financial statements describes certain transactions and/or commitments in Spain and the alleged issue of four promissory notes and letters of guarantee by Gecina SA in favor of a Spanish company named Arlette Dome SL, and provides details of the legal proceedings relating to these transactions and the accounting treatment applied. We deemed the accounting treatment of these transactions and/or commitments to be a key audit matter given the amounts at stake and the inherent uncertainty involved due to the complexity of pending or potential legal proceedings. examining the accounting methods and controls ■ implemented by management to report on these transactions; obtaining the analyses of Gecina and its advisors on the ■ transactions in question, which, where appropriate, we corroborated with response to our request for external confirmation from the Company’s legal counsel; conducting interviews with management in order to gain ■ an understanding of Gecina’s defense strategy and arguments before the various courts involved; assessing the appropriateness of the accounting ■ treatment applied by the Company in light of all these aspects; assessing the appropriateness of the disclosures ■ provided in the notes to the financial statements. Verification of the management report and of the other documents provided to the shareholders In accordance with professional standards applicable in France, we have also performed the specific verifications required by French law. Information given in the management report with respect to the Company’s financial position and the financial statements We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents provided to the shareholders with respect to the financial position and the financial statements. Information with respect to corporate governance We attest that the Board of Directors’ report on corporate governance sets out the information required by articles L.225-37-3 and L.225-37-4 of the French Commercial Code. Concerning the information given in accordance with the requirements of article L.225-37-3 of the French Commercial Code relating to remuneration and benefits received by corporate officers and any other commitments made in their favor, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your Company from companies controlling it or controlled by it. Based on this work, we attest to the accuracy and fair presentation of this information. How our audit addressed this risk Our work consisted in:

Description of risk At December 31, 2017, financial fixed assets amounted to €8,347 million, or 68% of the Company’s assets. When there is an indication of long-term impairment of securities, loans, receivables and other capitalized assets, an impairment loss is recorded. Impairment is determined on the basis of various criteria, including net asset value, profitability and strategic value. For investments in real estate companies, the criterion used is generally the net asset value, which includes unrealized capital gains on real estate assets evaluated at fair value (determined with support from real estate experts). Estimating impairment loss requires that the Company’s management exercise judgment, in order to determine the appropriate assumptions to be used. Given the significant amount of these assets and the degree of judgment involved in management’s determination of the main assumptions used, as well as the high sensitivity of the value of use of the assets to these assumptions, we deemed this issue to be a key audit matter. How our audit addressed this risk We carried out the following procedures: verifying the appropriateness of management’s ■ evaluation methods; verifying, on a sample basis, the inputs used to estimate ■ the net asset values, and in particular for the appraisal of real estate companies: verification that recorded equity can be reconciled with ■ the accounts of the companies evaluated, verification that adjustments made to equity in order to ■ calculate the net asset value, mainly by including unrealized capital gains on the real estate assets, are estimated at their fair value by management, with support from real estate experts; verifying the impairment recorded with respect to losses ■ in equity interests and their related receivables, by reconciling the net asset value with the carrying amount; assessing the appropriateness of the disclosures ■ provided in the notes to the financial statements. Accounting treatment of transactions and/or commitments in Spain (Note 4.3.6.1. to the financial statements)

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