SUSTAINABLE DEVELOPMENT 4Act for People A new system reinforcing managerial support has also been rolled For example, in 2017, a sales manager for the French subsidiary was out since the end of 2017 at Group level. The employee assessment promoted following three years with the Group to head of asset process is now divided into two phases: the first is a performance management for three Central European countries and the head review with a follow-up stage mid-year, and the second is dedicated of asset management for Iberia was promoted CEO of the Dutch to employee professional development. This second phase allows subsidiary. managers to more actively support their employee’s professional These examples demonstrate the Group’s desire to promote talented development (mobility, training, etc.). This new process, which is run young employees to high office. Thus, in 2017, the average age of by the Group’s Human Resources Department applies at every level members of the Group Management Team fell two years compared of the organization so that all employees benefit from it. It will give with 2016 to 46.5 years of age. rise to specific training, in addition to the training in the conduct of assessment interviews offered to all managers. During the most recent In general, this wide-scale mobility is underpinned by local policies to appraisal interview cycle in 2016-2017, 94% of Group employees, active support employees through dedicated training, mentoring or indeed and with open-ended contracts, had such an interview with their coaching. managers. This initiative is a response to the Group’s commitment that 3 INTERNAL MOBILITY 100% of recent graduates will benefit from a personalized career development support between now and 2022. 2017 2016 In support of this policy built around developing employees, in No. 100 85 particular through their career opportunities, in 2017 the Group % of permanent workforce 8% 7% extended the talent review to 250 employees at the highest Company's positions. This process, launched in 2016, aims to identify Compensation – tool for recognizing individual the employees who stand out by virtue of their development potential performance and their motivation to grow. The compensation policy represents a management tool for the The methodology used, which is the same across the Group, is Company’s strategy. It plays a role in recognizing individual and based on specific criteria. It enables an analysis of each employee’s collective performance, rewarding value creation by employees and performance, as recorded in the employee’s annual assessment driving growth in the Company’s results over the long-term. interviews, and the employee’s potential for development as seen by the employee’s supervisor. The process also includes discussions with Within the Group, compensation comprises the following components: the Group’s top managers to develop a shared vision of the talent > a base salary, the level of which is adjusted to the local jobs within the Company. It ends with a report to the Group’s Executive market, balancing a principle of reality and necessary room for Committee that allows the development of an action plan for the improvement for the best-performing employees; following year. Possible actions include assisting employees toward intra-group mobility. > a variable compensation portion rewarding individual performance; The deliberate employee career development policy involves > collective compensation in France, with profit-sharing and geographic or functional mobility, involving some 100 positions in incentive mechanisms, i.e., the sharing of the value created by the 2017, markedly up on 2016. All recruitment involving open-ended Company among employees; contracts is examined internally by HR managers with regard to > social benefits adapted to local practices. mobility opportunities. In this way, Klépierre offers talented recruits the option of growing by developing in-depth expertise, by taking In line with the objective of validating performance, to which Klépierre on responsibility, by consolidating their leadership by managing is committed, the salary increase procedure takes place annually cross-functional projects and by enhancing their ability to grow in a following an approach harmonized at the Group level and organized multi-cultural environment. This approach is a preferred route to top around collective decisions. management positions within the Group such as general management In addition, performance shares are awarded to the Group’s top of an entity. Mobility is widely promoted within the Company, for managers (9.5% of permanent employees in 2017) to promote an example in France, through the regular publication of a newsletter alignment of interests between the Group’s shareholders and its main detailing all available positions along with interviews with employees employees. promoting their business line. The visibility provided by this system allows the Group HR Department to favor internal candidates over Moreover, in the context of improving employee experience and outside recruitment. In 2017, 31% of mobilities and 40% of promotions reducing paper consumption, pay slips for all French employees have have benefited to employees under 35 years old. been electronic since 2017. 200 KLÉPIERRE 2017 REGISTRATION DOCUMENT