GLOSSARY Senior workers Klépierre opted for the SIIC status in 2003. In 2008, tax provisions facilitating the sale of real estate assets to a SIIC (provisions of Pursuant to applicable law in France, any employee who is aged 55 Article 201 E, I of the French General Tax Code) commonly referred or more is considered to be a senior worker with respect to career to as SIIC 3, were extended until December 31, 2011. Reduced taxation management. For recruitment, the threshold is set at 50. The Group applicable to capital gains realized on the sale of properties sold to a entered into an agreement pertaining to the employment of senior SIIC under this regime is not longer in force (since January 1, 2012). workers in October 2009. Further provisions, commonly referred as SIIC 4 and SIIC 5 which went into effect on January 1, 2010, stipulate that no shareholder, acting Shopping center alone or in concert with others, may control more than 60% of the equity capital of a company that has opted for the SIIC status. In the A group of at least 20 stores and services that form a Gross Leasable event of non-compliance with this threshold, the Company would lose Area (GLA) of at least 5,000 sq.m., designed, built and managed as the SIIC status. a single entity. Specialty leasing SIIC (société d’investissement immobilier The term specialty leasing refers to a series of services offering a cotée – REIT) wide range of communication media to retail chains to promote their products (in-store and out-of-store poster campaigns for shopping Tax regime allowed under Article 208-C of the French General Tax centers, plasma screens, event organization, temporary lets for Code that allows joint stock companies that are publicly listed and promotional purposes, etc.). Klépierre Brand Ventures is the Group’s whose stated equity capital exceeds 15 million euros, optionally special-purpose entity dedicated to this activity. and subject to certain conditions, as part of their primary business activity of acquiring and/or constructing buildings for the purpose of leasing them and direct or indirect ownership of equity in corporations Stakeholders whose business purpose is identical, to qualify for corporate tax exemption on: Any individual or group that may affect or be affected by the accomplishment of the objectives of the organization. Stakeholders > earnings from the rental of buildings, provided that 95% of such may be inside the Group (employees) or external to it (clients, earnings are distributed to shareholders before the end of the suppliers, shareholders, lenders, etc.). fiscal year that follows the year in which they are earned; > the capital gains realized on the sale of buildings, equity in Yield rate partnerships or in subsidiaries that have opted for SIIC status, provided that 60% of these capital gains are distributed to This rate, which unlike the cap rate allows us to determine a transfer shareholders before the end of the second fiscal year that follows duties included value, is used by independent appraisers to estimate their generation; the value of the Group’s property portfolio. It is defined on the > dividends received from subsidiaries that qualify for SIIC status basis of an analysis of comparable recent transactions and criteria when these dividends arise as a result of profits and/or capital specific to the type of asset under consideration (location, sales gains that are exempt from tax under the SIIC arrangements, area, rental reversion potential, possibility of extensions, percentage subject to the provision they are 100% distributed in the course ownership, etc). of the fiscal year that follows the year in which they were granted. 306 KLÉPIERRE 2017 REGISTRATION DOCUMENT