GROUP OVERVIEW 1 Internal control and risk management 1.9.5.2 Account closing process and consolidation Compliance with the tax obligations under the various SIIC/SOCIMI The accounts are consolidated by the Consolidation Department regimes in the countries in which the Group operates is audited by for the entire scope of the Group. Data for the consolidation system the Group Tax Department in cooperation with the local Finance used at almost all Klépierre’s main subsidiaries is provided by the Departments. Finance Department in each country via interfaces with the local The clarity of financial reporting and the pertinence of accounting accounts. Off-balance sheet commitments are also held centrally in methods are overseen by the Audit Committee, in tandem with the it by consolidated unit. Statutory Auditors. Financial reporting and accounting data is then The consolidated financial statements are prepared using a process presented to and commented on by the Supervisory Board. laid down in instructions and predicated on a detailed schedule circulated to all the Finance Departments to ensure that deadlines are 1.9.5.3 Financial communication met and that the data provided complies with the Group’s accounting The Group Communications Department directly reports to the standards. Executive Board and is responsible for the Group’s financial reporting The principal accounting controls carried out at each quarterly close obligations vis-à-vis the market authorities. It is tasked with producing, in the consolidation process are: drafting and distributing the financial reporting documents published > controls on changes in the scope of consolidation; with a view to presenting the Group’s various activities to shareholders, institutional investors and financial analysts, explaining its results and > analysis of and supporting evidence for all consolidation outlining its expansion strategy. adjustments; The financial reporting team continuously monitors the reporting > analysis of and explanations for all deviations from budgets and obligations, with the support of the Legal Department. The disclosure forecasts. of information to the financial markets takes place according to a precise schedule that is circulated internally. With support from At each quarterly close, the Accounting Department coordinates an various units, the team designs the financial press releases, and internal certification process for the accounting data reported by the earnings and theme-based presentations. It coordinates the country, as well as the controls performed, in which the CFO for each preparation of all the various parts of the financial report (registration country certifies: document) and ensures that it is distributed. In conjunction with the > the reliability and compliance of the accounting data provided Legal Department, it makes sure that information is provided in line compared to the regulations in force and Group standards; with the required deadlines and in compliance with the relevant laws and regulations. > smooth operation of the accounting internal control system, safeguarding the quality of the accounting data; > significant events that occurred after the close of the accounts and their financial impact on the consolidated financial statements. 38 KLÉPIERRE 2017 REGISTRATION DOCUMENT