FINANCIAL STATEMENTS Statutory Auditors’ report on the financial statements 3 Verification of the management report and of In preparing the financial statements, management is responsible the other documents provided to shareholders for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and We have also performed, in accordance with professional standards using the going concern basis of accounting unless it is expected to applicable in France, the specific verifications required by French law. liquidate the Company or to cease operations. Information provided in the Management Report The Audit Committee is responsible for monitoring the financial and in the other Documents provided reporting process and the effectiveness of internal control and to the Shareholders risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures. We have no matters to report as to the fair presentation and the The financial statements were approved by the Executive Board. consistency with the financial statements of the information given in the Executive Board’s management report and in the other documents provided to the Shareholders with respect to the financial position and Statutory Auditors’ responsibilities the financial statements. for the audit of the financial statements Report on Corporate Governance Objectives and audit approach We confirm the existence in the Supervisory Board’s Report on Our role is to issue a report on the financial statements. Our Corporate Governance of the information required by Articles objective is to obtain reasonable assurance about whether the L. 225-37-3 and L. 225-37-4 of the French Commercial Code (Code financial statements as a whole are free from material misstatement. de commerce). Reasonable assurance is a high level of assurance, but is not a Concerning the information given in accordance with the requirements guarantee that an audit conducted in accordance with professional of Article L. 225-37-3 of the French Commercial Code (Code de standards will always detect a material misstatement when it exists. commerce) relating to remunerations and benefits received by the Misstatements can arise from fraud or error and are considered members of the Executive Board and of the Supervisory Board and material if, individually or in the aggregate, they could reasonably be any other commitments made in their favor, we have verified its expected to influence the economic decisions of users taken on the consistency with the financial statements, or with the underlying basis of these financial statements. information used to prepare these financial statements and, where As specified in Article L. 823-10-1 of the French Commercial Code applicable, with the information obtained by your company from (Code de commerce), our statutory audit does not include assurance controlling and controlled companies. Based on this work, we attest on the viability of the Company or the quality of management of the the accuracy and fair presentation of this information. affairs of the Company. Regarding the information on factors that your Company considered As part of an audit conducted in accordance with professional could have a potential incidence in case of public takeover or swap standards applicable in France, the statutory auditor exercises bid, given in accordance with the requirements of Article L. 225-37-5 professional judgment throughout the audit and furthermore: of the French Commercial Code (Code de commerce), we have verified they are in accordance with the underlying documentation > identifies and assesses the risks of material misstatement of the provided to us. Based on this work, we have no matter to report on financial statements, whether due to fraud or error, designs and this information. performs audit procedures responsive to those risks, and obtains Other information audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material In accordance with French law, we have verified that the required misstatement resulting from fraud is higher than for one resulting information concerning the purchase of investments and controlling from error, as fraud may involve collusion, forgery, intentional interests and the identity of the shareholders and holders of the voting omissions, misrepresentations, or the override of internal control; rights has been properly disclosed in the management report. > obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the Report on other legal and circumstances, but not for the purpose of expressing an opinion regulatory requirements on the effectiveness of the internal control; > evaluates the appropriateness of accounting policies used and the Appointment of the Statutory Auditors reasonableness of accounting estimates and related disclosures made by management in the financial statements; We were appointed as statutory auditors of Klépierre by your Annual General Meeting held on June 28, 2006 for Deloitte & Associés and > assesses the appropriateness of management’s use of the going held on April 19, 2016 for Ernst & Young Audit. concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events As at December 31, 2017, Deloitte & Associés was in the 12th year or conditions that may cast significant doubt on the Company’s of total uninterrupted engagement and Ernst & Young Audit ability to continue as a going concern. This assessment is based nd in the 2 year. on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the Company Responsibilities of Management to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty exists, there is a requirement and those charged with governance to draw attention in the audit report to the related disclosures in for the financial statements the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein; Management is responsible for the preparation and fair presentation > evaluates the overall presentation of the financial statements of the financial statements in accordance with French accounting and assesses whether these statements represent the principles and for such internal control as management determines underlying transactions and events in a manner that achieves fair is necessary to enable the preparation of financial statements that presentation. are free from material misstatement, whether due to fraud or error. KLÉPIERRE 2017 REGISTRATION DOCUMENT 157