1. CREATING A HUMAN CITYANNUAL REPORT REFERENCE DOCUMENT 2013 A GREAT ICADE FOR MAJOR CITIES CREATOR OF VALUE AT THE REGIONAL LEVEL EXPERTISE AND EFFICIENCY AN URBAN MODEL IMPROVING WELL-BEING

2. CONTENTS 2 CREATOR OF VALUE AT THE REGIONAL LEVEL The Great Icade 2 Icade, a regional player 4 A collective dynamic 6 8 A GREAT ICADE FOR MAJOR CITIES A great real-estate investment company 10 A successful urban transformation 12 A strategic asset management 16 18 AN URBAN MODEL IMPROVING WELL-BEING Achievements and outlooks 20 Headquarters reecting excellence 26 Bringing innovation to life 28 High Quality Ageing 30 Imagining together 32 An approach enhancing quality 38 Anticipating peoples healthcare needs 40 44 EXPERTISE AND EFFICIENCY With Silic, Icade sees the big picture 46 A stronger expertise 48 Territorial offices 50 The Executive Committee 52 The Board of Directors 54 Performance 56 PART 1: CORPORATE 3. BRINGING LIFE TO THE CITY Icades mission is to bring life to the city. Commercial real-estate investment company and developer of offices, residential property and public facilities, Icade supports major cities in their development, and reinforces the real-estate strategy of its major corporate clients. It also creates value at the regional level. Analysing, anticipating, designing and building cities that offer hous- ing, work, education, healthcare and social interaction, and introduc- ing urban diversity into business areas, Icade works in collaboration with its partners to provide an integrated response to the major challenges of urban development. Thanks to the arrival of Silic, Icade is currently undergoing an extraor- dinary acceleration in its development. With more than 60years of experience, this Great Icade can capitalise on three key strengths: conrmed nancial solidity; strengthened skills and expertise; a rec- ognised capacity for innovation. In light of all these strengths, more than ever before Icade brings life to a more sustainable and more human city. 4. CREATOR OF VALUE AT THE REGIONAL LEVEL THE GREAT ICADEFollowing its merger with Silic, Icade is now the leading office property company in Europe, with property assets concentrated in the most strategic areas of Greater Paris. A RADICALLY TRANSFORMED AND EXPANDED PORTFOLIO CHANGE IN TOTAL ASSETS (IN MILLIONS OF EUROS(2) EXCL. DUTIES) Strategic assets (business parks and offices in France) Alternative assets (healthcare) Non-strategic assets (shops, warehouses, Germany and residential property) (1) In proportion to Icade Sants stake. (2) In square metres. Number of leases Land reserves(2) X2 Dec. 2013 Dec. 2013 1,000,000 2,000,000 X2 Dec. 2013 Dec. 2013 864 1,851 Total surface area of the portfolio(1) +66% Dec. 2013 Dec. 2013 1,863,000 3,085,000 Annualised rents(1) +58% Dec. 2013 Dec. 2013 502,908,000 317,362,000 +43.6% 9,063 Dec. 2013Dec. 2012 939 4,292 6,313 7,497 1,083 1,066 Strategic and alternative 94% Strategic and alternative 85% (1) 499 (1) Restated according to 2013 classication. (2) In proportion to Icade Sants stake. Icade Icade and Silic ANNUAL REPORT REFERENCE DOCUMENT 20132 5. HEALTHCARE Leading healthcare real-estate company, with 59 establishments. Icade Sant has assets of 1.89 billion. Leases with a residual lifetime of more than nine years. *As at 31 December, 2013. 474 million in rental income* 9.1 billion in assets, representing 3.1 million square metres, 70% of which is offices and business parks 1st healthcare real-estate company in France A GREAT REAL-ESTATE INVESTMENT COMPANY FOR GREATER PARIS 2008 Adoption of strategy focusing on real-estate investment and commercial property. Launch of Icade Sant. 2007 Merger of ve existing real-estate investment companies (Icade, Icade Patrimoine, Icade EMGP, Icade Foncire des Pimonts and Icade Foncire Publique) into a single entity called Icade. Adoption of the SIIC (French REIT) regime. 2009 Takeover of SIICInvest. 2010 Continued concentration on commercial property: Disposal of 39,000 housing units for 2 billion as well as other non-strategic assets Acquisition of 1.5 billion of commercial property assets through the merger with Compagnie La Lucette (CLL) Expansion of the Clinics portfolio. END OF 2011 Announcement of the planned combination with Silic. END OF 2013 Completion of merger between Icade and Silic. COMMERCIAL PROPERTY Eight business parks located in four strategic zones in the Ile-de-France region, representing 1,467,332m2* leased to more than 1,000companies. With 2million square metres of buildable land reserves, Icade has the highest proportion of assets close to Greater Paris Express stations. Icades new portfolio of offices and business parks, 99% of which is in the Ile-de-France region, is valued at 7.5 billion. A partner to large cities and the third-largest French developer. *Number of square metres constructed. 1st office real-estate company in Europe 3 6. YVELINES 18 Pont de Svres CEA Saint-Aubin Saint-Quentin Universit Versailles- Chantiers Cergy LIGNE18 LIGNE18 ICADE, AREGIONAL PLAYER CREATOR OF VALUE AT THE REGIONAL LEVEL with the needs of the various stakeholders in the city, Icades experts offer their support to clients at every stage in the real-estate decision-making cycle. This culture of co-working allows Icade toconrm Based on over 60 years of experience as a developer of major French cities, Icade is an essential player in Greater Paris, with 9.1 billion of assets, 502.9 million in annualised rents and two million square metres of buildable land reserves. The merger with Silic has further strengthened its model, its expertise and its portfolio, which is divided between four major commercial zones in the Ile-de-France region. Icade is involved in three strategic development zones in Greater Paris, particularly beneting from the Grand Paris Express project: in the north-east with Roissy- Charles-de-Gaulle and Saint-DenisAubervilliers, to the west with La Dfense-Nanterre and in the south with Orly-Rungis. To meet The North Normandy regional division was reshaped on March 1, 2014: The northern part of the region joined the Eastern France regional division to form the North East regional division, led by Antoine Marre The Normandy part joined the Western France regional division to form the North West regional division, led by Jean-Michel Boussac. NORTH NORMANDY WESTERN FRANCE SOUTH WEST MEDITERRANEAN EASTERN FRANCE RHNE-ALPES AUVERGNE ILE-DE- FRANCE Lyons Marseilles Bordeaux Strasbourg Paris Nantes ICADE AND THE REGIONS itspresence in the other major cities such as Bordeaux, Lyons and Strasbourg. Icade is a pioneer, a provider of new solutions for a more sustainable and more human city. ANNUAL REPORT REFERENCE DOCUMENT 20134 7. VAL-DE-MARNE ESSONNE HAUTS- DE-SEINE VAL-DOISE SEINE- ET-MARNE SEINE- SAINT-DENIS PARIS 11 11 16 TGV TGV TGV TGV 16 17 17 15 15 15 14 1418 Rosny-Bois Perrier Champigny Centre Le Bourget RER Clichy Montfermeil Aulnay Noisy-Champs Le Mesnil-Amelot Massy TGV La Dfense Roissy CDG Saint-Denis- Pleyel Roissy Paris Nord 2 LIGNE15 LIGNE15 LIGNE14 LIGNE15 LIGNE11 LIGNE16 LIGNE17 LIGNES16et17 On the ground, the Grand Paris Express will involve the construction of 72new stations, with everything to be created around them. Serge GRZYBOWSKI, Chairman and Chief Executive Officer of Icade. N Business parks Offices ICADES PORTFOLIO IN THE ILE-DE-FRANCE REGION DATE OF OPENING OF GRAND PARIS EXPRESS METRO LINES Before 2030 After 2030 TGV STATION Existing M14 M15, M16, M17 M11 M18 M11 M18 Planned AIRPORT TGV 5 8. CREATOR OF VALUE AT THE REGIONAL LEVEL In 2015, a new building, Millnaire 3 (32,000 m2 net surface area), will open its doors to welcome nearly 1,600 employees from the French Ministry of Justice. A lot of public administrations have already moved into the business parks in North-East Paris, including the Regional Health Agency, DIRECCTE (directorate for regional companies, competition, consumers, labour and employment), the Tribunal de police (local criminal court) and Urssaf (family allowance contribution collection agency). This is also true for many leading companies, such as Club Med, Ifop, Sage, Saint Louis Sucre and, soon, Veolia Environnement. LIVING COMMUNITY CONSTRUCTION COMPANIES ARCHITECTS SUBCONTRACTORS TRADE FEDERATIONS TRANSPORT PROVIDERS ENERGY COMPANIES LOCAL STAKEHOLDERS (SHOPS, ASSOCIATIONS, TRANSPORT PROVIDERS) STUDENTS AND YOUNG ADULTS IN TRAINING USERS CLIENTS COMPETITORS PARTNERS CERTIFICATION AND/OR VERIFICATION BODIES INSURANCE COMPANIES A COLLECTIVE DYNAMIC WORKING COMMUNITY DEVELOPERS RESEARCHERS Tramway T7, which opened in November 2013, now links Villejuif-Louis Aragon with Athis-Mons in about 30minutes. Serving Orly-Rungis zone and the Villejuif business park, the tramway improves Icades development potential as well as the living environment along the RD7, by supporting and promoting the development of the 10cities it passes through. The T7 connects to several existing or planned lines: RERC, metro line 7, TVM, Orlyval and the future lines 14 and 18 of the Grand Paris Express. ANNUAL REPORT REFERENCE DOCUMENT 20136 9. PUBLIC COMMUNITY On May 31, 2013, a large number of Icade employees joined around 800runners to climb the 954steps, 50oors and 230 m of the Tour First in La Dfensethe highest skyscraper in France a vertical running race called VertiGO. This rst socially-responsible vertical urban race was included among the ve winners of the Trophes Sporsora awards ceremony, held on January 20, 2014 in the Grand Amphithtre of the Sorbonne. All funds raised (80,000) were donated to the charities Sport Sans Frontires, promoting education through sport, and ATEurope. The event, organised by Sport Sans Frontires, Icade and Beacon Capital Partners, also aimed to re-appropriate urban complexes. Icades Seniors think-tank considers the ageing population as a sustainable development focus for the regions. Through its recommendations, it attempts to demonstrate that it is possible to adapt the city to the lifestyles of elderly people. The ageing population represents not only an opportunity for regions and public-private players, but also a challenge requiring Icade to question how it brings life to the city. SOCIAL COMMUNITY STATUTORY AUDITORS SHAREHOLDERS (INCLUDING THE CAISSE DES DPTS) AMF (FRENCH FINANCIAL MARKETS AUTHORITY) FINANCIAL JOURNALISTS FRENCH LABOUR INSPECTORATE OCCUPATIONAL MEDICINE ANALYSTS RATING AGENCIES BANKS UNIONS EMPLOYEES MINISTRIES PUBLIC RESEARCHERS SGP (SOCIT DU GRAND PARIS) REGIONAL AUTHORITIES MUNICIPALITIES STIF (SYNDICAT DES TRANSPORTS DILE-DE-FRANCE) INTERCOMMUNAL AUTHORITIES POLITICIANS MEDIA INVESTORS Further having been assigned BBB+ rating by Standard&Poors, Icade placed two successfull bond borrowings on the market. In September2013, that have been very well received by European investors. These comprised two tranches: one for 500million, maturing at ve years and four months, and a second for 300million, maturing at 10years. This bond market fund-raising is in line with the companys strategy of diversication of sources of funding. Its objective is to extend the average term and reduce the average cost of its debt. FINANCIAL COMMUNITY 7 10. AGREATREAL- ESTATEINVESTMENT COMPANY Strengthening our business model by becoming the leading office property investment company inEurope. P. 10-11 ASUCCESSFUL URBAN TRANSFORMATION Maintaining a relationship of trust with our clients to anticipate their real-estate needs. P. 12-15 P. 16-17 ASTRATEGICASSET MANAGEMENT Ensuring the companys solidity and fundamentals through sound investments. ANNUAL REPORT REFERENCE DOCUMENT 20138 11. A GREAT ICADE FOR MAJOR CITIESIcade plays an active role in supporting French urban trends, acting as the strategic partner of major cities and a creator of value across all regions. 9 12. 10 13. CHAIRMANS MESSAGE The deed is doneSilic has joined Icade to create the leading office property investment company in Europe and a major player in Greater Paris. 2013 was a year of achievements, of nancial, operational and human successes, culmi- nating in the merger with Silic and its social, cultural and asset integration. Financially, we have demonstrated the relevance of our economic model and our investor strategy. With the success of the two bond issues we launched for 800million and Icade Sants latest capital increase, investors condence and interest have been conrmed this year by the award of a BBB+ rating for Icade by Standard&Poors. Operationally, 2013 featured high-quality new tenants and lease renewals, conrming the effectiveness of the client and key accounts strategy we adopted since 2011. Diversity of its sales offering, strategically-located sites in the major development areas of Greater Paris: Icade is now in a fantastic position to offer its clients bespoke solutions and provide them with long-term support in implementing their real-estate strategy. With a reinforced presence at the regional level in the leading business districts, the real-estate investment department has also conrmed itself as a partner in the development of major cities, able to deliver buildings as complete new parts of the city, including offices, housing and public facilities. In human terms, 2013 was a year lled with challenges and victories. Successfull chal- lenge for the Silic teams, rstly, with the opportunity for growth they gained by becoming part of our joint business. Victory for Icade employees, secondly, with the addition of new talents to their business lines. In addition to the obvious complementary skills and expertise of the 1,575employees who are now this Great Icade, it was individual human and professional dedication which made possible the success of this merger. More condent than ever in Icades unifying power, we are proud of what we have achieved and rmly believe in the new possibilities open to us in 2014. Icade is now in afantastic position tooffer its clients bespoke solutions and provide them with long-term support in implementing their real-estate strategy. Serge GRZYBOWSKI, Chairman and Chief Executive Officer of Icade. A GREAT REAL-ESTATE INVESTMENT COMPANY 11ANNUAL REPORT REFERENCE DOCUMENT 2013 14. A GREAT ICADE FOR MAJOR CITIES represents a Lyons development model closely asso- ciating the actions of the local authority with those of private players. A model which Icade has successfully incorporated and embodied in a project embraced by the people of Lyons. SergeGrzybowski: In Lyons as in other large cities, Icade is called on to develop entire districts, microcosms of the city, with all that implies in terms of soft transport, management of ows, and the right balance between jobs and housing and services and infrastructure. Icade, in association with architecture rm Herzog & de Meuron, was appointed to develop PlotA3, a phase2 urban ele- ment of Lyon Conuence project, on which construction will begin in 2015 (phase1 will be completed in 2016). We have already supported other urban operations in Greater Lyons, illustrating the extent to which we share Serge GRZYBOWSKI, Chairman and Chief Executive Officer of Icade. Lyon Conuence is currently one of the most important urban construction projects in France, reecting a new vision of the city and urban development. Cross-interview with three key players who share the same ambition for Lyons and the same desire to innovate. In what ways is Lyon Conuence project, including Plot A3, representative of a new urban ambition? Grard Collomb: In the 18th century, the conuence of the River Sane and the River Rhne was an area of pestilent swampland. Later, production activities unwelcome in the heart of the city were banished there. Ten years ago, following the departure of the MIN (National Interest Market) for Corbas, it became partly a gigantic forgotten industrial wasteland behind Perrache station, behind the arches as was commonly said in Lyons. Today a new district is rising up on the peninsula, extending the historic centre and doubling its surface area. A rare urban project in Europe, an important challenge for the city and an opportunity for its inhabitants, since the site will continue to welcome thousands of new houses and jobs. La Conuence also A SUCCESSFUL URBAN TRANSFORMATION ANNUAL REPORT REFERENCE DOCUMENT 201312 15. with Grard Collomb the same vision of the city, the same convictions concerning the potential offered by Lyons and the keys to its success. We will be implement- ing this vision and these convictions on a large scale, in a project which exemplies the 21st century. This city aims to embody the city of tomorrow by promoting the districts history and memory. Isnt this dialogue between past and future, heritage and innovation, the key to a successful urban transformation? G.C.: History has left La Conuence with a built heritage of which we are the custodians. So during this second phase of development of La Conuence, relating to the land of the old market station, we have decided to keep about 25% of the market buildings, which will be renovated for new uses. On the peninsula, we will have both a memory of the past, contemporary buildings designed by talented local and international architects and this beautiful natural city which landscape designer Michel Desvigne has planned. This new district testi- es to an ambition to construct Lyons by combining the most innovative architecture with the redeveloped heritage. The city is evolving, but its traditional identity remains strong. Our developer and architect partners have assimilated this Lyons identity to propose future solutions responding to the needs of today without disowning history. S.G.: These urban transformations must draw on what already exists to give depth and roots to the new achievements. That is the foundation of an intelligent city. Here, some of the former market buildings have been demolished while others have been renovated and converted to quickly accommodate cultural and sporting activities. The strength of the La Conuence project lies in considering the evidence of the past not as ruins, but as pioneering elements of the new urban centre under construction. Christine Binswanger: The elements retained, such as the market building, also have great architectural value. The project is also linked to the urban memory in another way. Over the centuries, the architectural history of Lyons has two complementary atmospheres: on the Sane side, the diversity of architectures is combined with a varied range of colours, rejuvenated since the redevelopment of old Lyons over recent decades; on the Rhne side, the traditional 19th century city presents more monumental faades and a simpler colour palette. The project has drawn inspiration from this, proposing varying shades of white to rmly root the project in the identity of Lyons. Christine BINSWANGER, Architect and partner with the firm Herzog & de Meuron. Grard COLLOMB, Senator and mayor of Lyons, and chairman of Greater Lyons. 13 16. A GREAT ICADE FOR MAJOR CITIES The specications for PlotA3 set out a lot of urban development principles, including diversity. Can you tell us how the project addresses this? G.C.: The shared ambition is to make this extension of the city centre, which is well connected to the rest of the city by public transport, a model of diversity, both socially and in terms of usage. PlotA3, and more generally La Conuence, should not be a detached district. The whole project is being constructed to favour living together. Social diversity is reected in the space set aside for social housing and affordable housing, and the interspersion of owners and tenants across the whole development. Functional diversity, through the mixture of residential properties, offices, shops, educational establishments and cultural facilities, local services available on the plot and inside the buildings themselves. Diversity of usage, through spatial devel- opment prioritising sociability and interaction between the people who will live and work there. C.B.: Diversity has an architectural expression. The project is creating a new type of citydenser, more diverse, more open, more surprising. The compact and coherent urban space leaves room for dual-aspect plots of varying types, offering vistas and a great rich- ness of potential experiences. There is no standard height either. Some buildings offer future residents completely new views over their city and the surround- ing area. Other lower views offer more intimacy and comfort. Diversity is also evident in the strong presence of nature in the city, with the rediscovery of the river and abundance of trees. The absence of systematic alignment of buildings allows the creation of courtyard gardens opening onto lush residential plots. The notion of a walkable city is also emphasised. How do you interpret these words in practice? G.C.: For several years now, Greater Lyons has been at the cutting edge in terms of responsible mobility. We have developed public transport, launched a car-sharing scheme using the Sunmoov system in La Conuence and Bluely in the rest of Lyons and put in place a soft transport plan for 2009-2020. La Conuence is con- nected to public transport networksincluding the river via the waterbus launched in 2012. But we are clearly giving priority to bicycles and walking within this new urban landscape. Like this district, the sustainable city will be a city in which it will be enjoyable to stroll in complete safety. C.B.: In PlotA3, communal car parks will be easily acces- sible from outside. Once you have parked, you will get around the district on foot. Apart from the streets, public spaces include the network of courtyard gardens, linked to each other by footpaths leading to the public facili- ties, services and shops. New bridges are also planned to link the peninsula to the rest of the city. Diversity has an architectural expression. The project is creating a new type of city denser, more diverse, more open, surprising. Christine BINSWANGER, Architect and partner with the firm Herzog & de Meuron. Urban transformations must draw on what already exists to give depth and roots to the new achievements. That is the foundation of an intelligent city. Serge GRZYBOWSKI, Chairman and Chief Executive Officer of Icade. ANNUAL REPORT REFERENCE DOCUMENT 201314 17. S.G.: Cars will also be assigned their rightful place in this walkable city. To address mobility needs, a car sharing schemelaunched in phase onewill be extended to this district, in particular PlotA3. The eet will include around 30electric vehicles powered by means of pho- tovoltaic solar panels installed on buildings. Thanks to V2G (Vehicule-to-Grid) technology, the buildings will be able to reuse the energy stored in the vehicles batteries when they are not being used! This integrated energy management within the plot will allow the district to contribute to Lyon Conuence smart grid*. An illustration of the alliance of living together and the intelligent city as pillars in the construction of the city of the future? S.G.: These two dimensions are inseparable. Tackling the challenge of the intelligent city will enable us to con- struct a sociable and environmentally-friendly city. The project also incorporates a strong innovation dimension. LaConuence is the meeting point of architectural crea- tivity and the most advanced technologies. To that end, Icade has instigated technological partnerships both with large national companies and regional and local start-ups. This is reected in pioneering programmes such as giving the plot intelligent management of energy resources and needs. This management occurs at the level of each apartment, the plot and the district, with a social network function allowing inhabitants to exchange useful information, best practice and projects. Here, as elsewhere, Icades approach is based on strong values to develop, with its partners, a way of designing the city of the future and bringing it life. G.C.: From the outset, La Conuence was planned as a model district with the capacity to combine moder- nity, sociability and solidarity. That is why we wanted to bring together the leading operators in the project. The architecture, as well as being creative, must meet two key objectives: quality of life and environmental performance. The meeting between people, energies and ideas which characterises La Conuence embodies the promise of this new urban living. *Power grid which aims to optimise all sections of the network. Confluence promotes a Lyons development model closely associating the actions of the local authority with those of private players. Grard COLLOMB, Senator and mayor of Lyons, and chairman of Greater Lyons. GRARD COLLOMB AND SERGE GRZYBOWSKI at the inauguration of the SpiWest building in Lyons. 15 18. A GREAT ICADE FOR MAJOR CITIES A STRATEGIC ASSET MANAGEMENT FLEXIBILITY Icades assets are located in the most promising areas or resilient areas, ensuring the real-estate exibility which the market needs. Whether it involves forming joint ventures, offering immediately available real estate or sites adapted to all needs, Icades teams have access to the property required to offer turnkey solutions. The controlled transformation of regions through the conversion of some business parks into housing units allows optimisation of the existing portfolio. With an expanded and diversied portfolio since its merger with Silic, Icades rental offer is in line with the best market standards and covering a particularly wide range of rents (100/m2 to 700/m2 ). SURFACE AREAS OF BUSINESS PARKS AND OFFICES IN THE ILE-DE-FRANCE REGION Paris 176,326 m2 La Dfense/ Near La Dfense 409,582 m2 Western Crescent 156,126 m2 Inner and outer suburbs 1,320,358 m2 TOTAL 2,062,392 m2 ANNUAL REPORT REFERENCE DOCUMENT 201316 19. 33% 67% PROPORTION OF SERVICE ORDER 2013 OFFICE CERTIFICATIONS (IN SQ. M. NET SURFACE AREA) QUALITY Icades environmental requirements combine a strict certication policy (HQE, ISO14001, NF, etc.) for its assets, ambitious objectives in terms of reducing energy consumption and a marked ambition to improve local quality of life, particularly by ensuring the establishment of projects and added services. Business parks with responsible management 10 parks ISO 14001-certied out of 14. General HQE Operations OMS (Operational Management System) applied since 2011 on Silic parks and certication underway for Icade parks. Exemplary parks for sustainable mobility: 3+0$%. /+"//!0/%*0$!(! !.*! region are close to future Grand Paris Express stations 20. .#!/0,.%20!1/%*!//,.'.+//! by a tramway (T7 in Orly-Rungis) +.,+.0!!+)+%(%053. ".+) Avere-France in 2012 **+20%+** /1/0%*(! !2!(+,)!*0 awards from the Caisse des Dpts for electric river shuttles in 2013. NF HQE Commercial Property NF HQE Commercial and BREEAM BALANCE Over the long term, business parks are ripe for creating value. Following its merger with real-estate investment company Silic, Icade has doubled its land reserves and development capacities. Including all its land reserves, the company is now capable of developing two million square metres of offices and housing. Over the long term, business parks with vast land reserves are ripe for creating value. Cash-ows are also secured by its subsidiary Icade Sant, which has won its place as a leader over the past six years. This allows Icade to generate recurring, secure cash-ows. 17 21. BUILDINGLONG- TERMEDPROJECTS Providing global solutions and designing complete parts of the city by incorporating all players usages. INNOVATINGWITH STAKEHOLDERS Humanising cities and favouring projects functional and generational diversity. ANTICIPATING HEALTHCARENEEDS Developing our acquisitions in the healthcare eld to expand the range of treatment. P. 20-27 P. 28-39 P. 40-43 ANNUAL REPORT REFERENCE DOCUMENT 201318 22. AN URBAN MODEL IMPROVING WELL-BEINGOffering our clients much more than real estate: a human and sustainable environment for companies and their employees. 19 23. AN URBAN MODEL IMPROVING WELL-BEING ACHIEVEMENTS AND OUTLOOKSDeveloping projects, disposing of its mature assets, reinvesting in buildings, creating valuethat is Icades contribution to the real-estate lifecycle. Icades approach also involves innovation. Whether it involves designing a housing project such as the Parc des Closbilles in Cergy, building innovative head offices like that of Veolia Environnement or rehabilitating industrial wasteland like the Macdonald warehouse in Paris, Icade anticipates the needs of its clients, regions and inhabitants. Icade aims to integrate buildings into their environment and works in collaboration with all stakeholders to make the most of the existing land and develop multidimensional projects. Reecting both the functional diversity of urban spaces and the environmental protection, Icade designs build- ings and districts which respect the highest market standards, while taking into account the latest urban transportation and residential trends. The projects combine offices, public facili- ties, residential property and shops, and strive to intelligently create a denser urban fabric. MERGER ACQUISITION DISPOSAL DELIVERY INAUGURATION ANNUAL REPORT REFERENCE DOCUMENT 201320 24. CONTINUATION OF ICADE SANTS ACQUISITIONS Finalisation of the acquisition of eight new establishments with xed 12-year leases. BIHOME (VILLEURBANNE) Inauguration of the rst apartment based on the BIHOME concept, responding to new modes of urban living: independent cohabitation of people and usages. JANUARY FEBRUARY MARCH 2013 MuCEM (MARSEILLES) Created through a public-private partnership with the Ministry of Culture and Communications, the Centre of Conservation and Resources at MuCEM (muse des Civilisations de lEurope et de la Mditerrane) has a total surface area of 13,000m2 , including 8,000m2 of storage. APRIL SALE OF THE REAL-ESTATE ENGINEERING DIVISION The three real-estate engineering subsidiaries Arcoba, Gestec and Setrhi-Staewere sold to the Artelia group. MILLNAIRE 5 (AUBERVILLIERS) AND PARC DU PONT DE FLANDRE (PARIS 19) The company Numergy leases 1,930m2 of offices in the Millnaire5 building and Maif, 2,820m2 of offices in the 026 building in the Parc du Pont de Flandre. MARCH 22 JANUARY 2 MARCH 13 APRIL 8 21 25. AN URBAN MODEL IMPROVING WELL-BEING INAUGURATION OF THE FOURTH ELECTRIC RIVER SHUTTLE Named Flandre, this shuttle boasts numerous technical innovations and increases services to the Parc du Millnaire in Aubervilliers. OPENING OF ICADE SANTS CAPITAL Announcement of afurther capital increase of 110million carried out with a new institutional investor via an OPCI (real-estate mutual fund). ACQUISITIONS BY ICADE SANT LUnion clinic and Le Marquisat 39,358m2 , 532beds, 39million. Operating group: Ramsay Sant. La Loire private hospital (Saint- tienne) 31,000m2 , 305beds, 58million including duties. Operating group: Gnrale de Sant. AUGUSTMAY MAY 22 JULYJUNE CAR-SHARING SCHEME WITH ELECTRIC VEHICLES Signature of an agreement to test the concept of electric vehicles for the C-Zen car-sharing scheme, developed by the company Courb in Lyons. JULY 12 LA FACTORY BUILDING (BOULOGNE- BILLANCOURT) Signature of an undertaking to sell relating to La Factory, a building with a total surface area of 13,800m2 over seven levels, for 103million. MAY 27 JUNE 6 RUSHMORE BUILDING (VRY) The SPIP (prison integration and probation department) chooses the Rushmore building to lease 2,200m2 of office space. DELIVERY OF PRLUDE (BORDEAUX) New office building with HQE (High Environmental Quality) certication and BBC (low-energy building) labelling, over a net surface area of 9,347m2 over eight oors (including the ground oor). DELIVERY OF EQHO (LA DFENSE) Office tower with a surface area of 79,200m2 GLA over 42levels, the vertical campus includes 5,922workstations and multiple services distributed over the building. JULY 2 SIGNATURE PROJECT LAUNCH MERGER ACQUISITION DISPOSAL DELIVERY INAUGURATION CONSTRUCTION BEGINS FIRST STONE JUNE JUNE 19 ANNUAL REPORT REFERENCE DOCUMENT 201322 26. COMPLETION OF 3$125$0$b7(PARIS 13) Signature of a real-estate development contract with AG2R La Mondiale for the construction of a new building with 15,000m2 of offices and 990m2 of shops on PlotT6C in the Paris Rive Gauche ZAC. ODYSSEUM SHOPPING CENTRE (MONTPELLIER) Sale to Klpierre of securities in this open-air shopping and leisure centre, containing 120shops and restaurants over more than 50,000m2 . LAYING OF THE FOUNDATION STONE OF THE PARC DES CLOSBILLES (CERGY) The Parc des Closbilles, a mixed project of almost 55,000m2 including 865housing units, received the following certications: HQE Urban Development (approach certied by Certiva), NF Housing-HQE, BBC-effinergie+ (2012 thermal regulations), Habitat & Environment (H&E) and Qualitel. In April, Icade was awarded a Pyramide dargent (silver award) for this project. OCTOBERSEPTEMBER NOVEMBER DECEMBER COMPLETELY NEW PARTNERSHIP WITH PHILIPS To build the city of the future together, this partnership involves the design of innovative solutions relating to lighting and healthcare technology applied to real estate. OCT. 21 COMPLETION OF THE MERGER BETWEEN ICADE AND SILIC Creation of the leading office real-estate company in Europe, with a portfolio of 9.1billion of assets, the leading office real-estate company in the Ile-de-France region and the leading healthcare real-estate company in France, with 59establishments. DEC. 31 2013 SEPT. 23 LAYING OF THE FOUNDATION STONE OF 9(57(7b2 (AUBERVILLIERS) With a total net surface area of 12,000m2 , this residence will comprise 168collective housing units for rst- time buyers, distributed over two buildings, A and B, with eight oors (including the ground oor). INAUGURATION OF TRAMWAY LINE T7 The Parc Orly-Rungis is the rst business park in the Ile-de-France region to be crossed by an RATP tramway. Plans to create an exit from the A106 motorway to access the Parc Orly-Rungis were approved. NOV. 16 DELIVERY OF AMBRE (LYONS) PlotM, Ambre, has a total net surface area of 12,300m2 . SEPT. DEC. 3 DEC. 2 23 27. AN URBAN MODEL IMPROVING WELL-BEING DELIVERY OF PUSHED SLAB (PARIS 13) Project with a net surface area of 18,900m2 over six oors. DELIVERY OF THE BUILDING QUBEC (ORLY-RUNGIS) This office building with ve oors (including the ground oor) and asurface area of 12,000m2 is built around a vast landscaped garden, is aiming for double HQE-BREEAM certication and the BBClabel. REOPENING OF PARIS ZOOLOGICAL PARK Renovation project in a public-private partnership with the National Natural History Museum. The worksite, launched in 2011, involves almost 350employees and is on schedule. DELIVERY OF THE BUILDING /(b*$5$1&((PARIS 20) This urban planning project responds to three objectives: dig out several basement levels below the local RATP bus station, develop offices above (30,000m2 over ve levels) and equip the city with a crche and college over approximately 3,500m2 . REDEVELOPMENT OF MACDONALD WAREHOUSES (PARIS 19) A mixed project (housing, offices, businesses, shops and public facilities) with a total surface area of 167,000m2 and more than 600m2 of faade. Delivery of offices planned for June2014 and housing in July2015. DELIVERY OF THE DOCKS (STRASBOURG) Conversion of the former Seegmuller warehouse, on the Andr Malraux peninsula: this project includes shops, offices, a cultural and creative centre, a higher education space and 67housing units. 2014 2017 DELIVERY OF THE BUILDING MILLNAIRE 3 3$5,6b 28. This complex will house the Ministry of Justice and 1,600 of its employees over a net surface area of almost 32,000 m2 . It will comply with HQE standards as well as the BBC and BREEAM Very Good labels. DELIVERY OF OPALE-LYONS With a surface area of around 12,400m2 , the building is located at the entrance to the Girondins ZAC. EARLY 2015 2015 SPRING 2014 2015 2014 2014 2014-2015 ANNUAL REPORT REFERENCE DOCUMENT 201324 29. DELIVERY OF VEOLIA ENVIRONNEMENT HEADQUARTERS (AUBERVILLIERS) With a surface area of 45,000m2 , it will consolidate all Veolia Environnements historic sites and accommodate more than 2,000employees. '(/,9(5 65 Number of employees DIVERSITY IN RESIDENTIAL PROPERTY PRODUCTION (AS A %) Tax exemptions Social housing First-time buyers Second-time buyers Investment without tax exemptions Miscellaneous 24.6 21 29.8 11.6 4.5 8.5 127 66 COMPANYS GHG* REDUCTION COMMITMENT: to achieve factor4, i.e. a 3% reduction per year in carbon emissions. For construction: by systematically carrying out GHG assessments with a Life-Cycle Assessment (LCA) approach. For operation: by investing in metering systems to reduce consumption. For transport: by stepping up work on company travel plans and offering innovative soft transport services. *Greenhouse gas. Supervising the new intergenerational action plan is the priority for 2014. Maximum average regulatory PEC Average CEP for Icades development operations 63 68. PART 2 FINANCIAL AND LEGAL REPORT CREATING A HUMAN CITYANNUAL REPORT REFERENCE DOCUMENT 2013 69. ICADE 2013 FINANCIAL AND LEGAL REPORT SUMMARY CHAPTER 1 ITEMS OF BUSINESS .................................................................................................... 1 ,QFRPH VWDWHPHQW DV DW b'HFHPEHU .............................................................................................................. $FWLYLWLHV DQG UHVXOWV................................................................................................................................................................3 $GMXVWHG QHW DVVHW YDOXH DV DW b'HFHPEHU ............................................................................................ 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CHAPTER 4 ICADE INDIVIDUAL ANNUAL ACCOUNTS AND SILIC FINAL ACCOUNTS ..................... 111 ,&$'( ,1',9,'8$/ $118$/ $&&28176 .................................................................................................................... )LQDQFLDO VWDWHPHQWV.......................................................................................................................................................... 1RWHV WR WKH QDQFLDO VWDWHPHQWV........................................................................................................................................ 116 .H HYHQWV RI WKH QDQFLDO HDU................................................................................................................................... 116 $FFRXQWLQJ PHWKRGV DQG SULQFLSOHV........................................................................................................................ 1RWHV RQ WKH EDODQFH VKHHW............................................................................................................................................ 1RWHV RQ WKH LQFRPH VWDWHPHQW.................................................................................................................................. 2EDODQFHVKHHW FRPPLWPHQWV.............................................................................................................................. 2WKHU LQIRUPDWLRQ................................................................................................................................................................. 143 67$78725< $8',7256 5(3257 21b7+(b$118$/b),1$1&,$/b67$7(0(176................................... 146 6,/,&b ),1$/ $&&28176 $7 '(&(0%(5 .................................................................................................... 148 &RPSDUDWLYH EDODQFH VKHHWV.................................................................................................................................................... 148 &RPSDUDWLYH SURW DQG ORVV VWDWHPHQWV......................................................................................................................... 1RWHV WR WKH DFFRXQWV................................................................................................................................................................... 151 *HQHUDO SULQFLSOHV DSSOLHG WR GUDZ XS DFFRXQWV .............................................................................................. 151 0DLQ DFFRXQWLQJ PHWKRGV............................................................................................................................................... 151 +HGJH LQVWUXPHQW SRUWIROLR UHVWUXFWXULQJ RSHUDWLRQ.................................................................................. 153 67$78725< $8',7256 5(3257 21 6,/,& ),1$/ $&&28176................................................................... 154 CHAPTER 5 CHAIRMAN OF THE BOARDS REPORT ..................................................................... 155 &RUSRUDWH JRYHUQDQFH ....................................................................................................................................................... 156 3URFHGXUHV RI LQWHUQDO FRQWURO DQG ULVN PDQDJHPHQW................................................................................. 6WDWXWRU $XGLWRUV UHSRUW SXUVXDQW WR $UWLFOH /b RI WKH )UHQFK &RPPHUFLDO &RGH RQbWKHb,FDGHV &KDLUPDQ RI WKH %RDUGV UHSRUW..................................................................................... 177 CHAPTER 6 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY ................................. $ &65 SROLF WKDW LV DQ LQWHJUDO SDUW RI WKH VWUDWHJ RI ,FDGH WKH ZRUOGFODVV UHDO HVWDWH EXVLQHVV....................................................................................................................................................................... *RDOV PHWKRGV DQG LQGLFDWRUV..................................................................................................................................... 183 70. ICADE 2013 FINANCIAL AND LEGAL REPORT &RPPLWWHG WHDPV ................................................................................................................................................................. 183 6WDNHKROGHUV KDYH WKHLU VD........................................................................................................................................... %XLOGLQJV DQG SDUNV IRU D VXVWDLQDEOH FLW............................................................................................................ 6XPPDU DQ HQKDQFHG &65 SROLF WRGD WR KHOS EXLOG WKH VXVWDLQDEOH FLW RI WRPRUURZ............................................................................................................................................................................... $SSHQGL[ &RQFRUGDQFH WDEOH LQ &KDSWHUb ZLWK $UWLFOHb5b RI WKH )UHQFK &RPPHUFLDO &RGH UHODWLQJ WR WKH WUDQVSDUHQF UHTXLUHPHQWV IRU EXVLQHVVHV LQ VRFLDO DQG HQYLURQPHQWDO PDWWHUV $UWLFOHbb )UHQFK *UHQHOOH , (QYLURQPHQW $FW 71. ....... 6WDWXWRU $XGLWRUV LQGHSHQGHQW WKLUGSDUW UHSRUW RQ FRQVROLGDWHG VRFLDO HQYLURQPHQWDO DQG VRFLHWDO LQIRUPDWLRQ SXEOLVKHG LQ WKH PDQDJHPHQW UHSRUW....................... 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CHAPTER 11 '2&80(176 $&&(66,%/( 72b7+( 38%/,&............................................................... &+$37(5 CORRESPONDENCE TABLE...................................................................................... &RUUHVSRQGHQFH WDEOH.................................................................................................................................................................. 7KHPHEDVHG WDEOH RI WKH QDQFLDO UHSRUW..................................................................................................................... 72. ICADE 2013 FINANCIAL AND LEGAL REPORT 73. ICADE 2013 FINANCIAL AND LEGAL REPORT 1 ITEMS OFBUSINESS ,QFRPH VWDWHPHQW DV DW b'HFHPEHU ........... $FWLYLWLHV DQG UHVXOWV .......................................... 3 .H JXUHV ........................................................... +LJKOLJKWV ........................................................................ 5 2XWORRN ............................................................................ 5 %XVLQHVV DFWLYLWLHV DQG UHVXOWV ............................. 6 $GMXVWHG QHW DVVHW YDOXH DV DWbb'HFHPEHU ..................................... 3.1. 9DOXDWLRQ RI SURSHUW DVVHWV........................................ 9DOXDWLRQ RI SURSHUW GHYHORSPHQW DQG VHUYLFHV EXVLQHVVHV ..................................................................... 3.3. &DOFXODWLQJ (35$ QHW DVVHW YDOXH ................................ (35$ UHSRUWLQJ DV DW b'HFHPEHU ............. (35$ DGMXVWHG QHW DVVHW YDOXH VLPSOH QHW DQG WULSOH QHW 74. .. (35$ HDUQLQJV IURP 3URSHUW ,QYHVWPHQW ........................... 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As a% of revenues 29.4% 84.8% 25.6% 80.2% Depreciation charges net of investment grants (215.6) 0.5 (215.1) (176.8) 0.5 (176.3) Charges and reversals related to loss in value RQbWDQJLEOH QDQFLDO DQG RWKHU FXUUHQW DVVHWV (72.1) (11.2) (83.3) (87.2) 16.2 (71.0) 3URWORVV 82. IURP GLVSRVDOV 122.4 (1.6) 120.8 80.8 (0.9) 79.9 23(5$7,1* 352),7/266 83. 84. 85. As a% of revenues 19.1% 47.6% 13.4% 37.9% ),1$1&,$/ 352),7/266 86. 87. 88. 89. 90. 91. 92. 6KDUH LQ SURILW RI FRPSDQLHV FRQVROLGDWHG EbWKH HTXLW PHWKRG 93. 94. 7D[ RQ SURWORVV 95. (39.2) 28.7 (10.4) (37.2) 26.8 (10.4) 3URW IURP RWKHU DFWLYLWLHV 0.0 53.2 53.2 0.0 27.7 27.7 1(7 352),7/266 96. 1(7 352),7/266 97. *5283 6+$5( of which Property Investment Division net SURWORVV 98. *URXS VKDUH 75.0 75.0 27.2 27.2 RI ZKLFK QHW SURWORVV 99. *URXS VKDUH IURP other activities 51.9 51.9 25.5 25.5 (35$ ($51,1*6 )520 3523(57< ,19(670(17b 100. 1(7 &855(17 &$6+ )/2: 'DWD SHU VKDUH Average diluted number of shares in circulation 60,865,381 51,795,086 1HW SURWORVV 101. *URXS VKDUH 2.08 1.02 EPRA Earnings from Property Investment 3.52 3.56 1HW FXUUHQW FDVK RZ 4.59 4.54 102. 7KH GHWDLOHG FDOFXODWLRQ RI WKH (35$ (DUQLQJV IURP 3URSHUW ,QYHVWPHQW LV SURYLGHG LQ FKDSWHU SRLQW (35$ UHSRUWLQJ DV DW b'HFHPEHU 1% 7KH UHLQIRUFHPHQW RI ,FDGHV SURSHUW LQYHVWPHQW EXVLQHVV ZLWK WKH 6LOLF PHUJHU UHTXLUHV D FKDQJH WR WKH ZD WKH *URXSV UHVXOWV DUH SUHVHQWHG 7KH main changes compared with the financial year 2012 are as follows: L 103. SUHVHQWDWLRQ RI WKH LQFRPH VWDWHPHQW LQ PDQDJHPHQW IRUPDW IRFXVHG RQ WKH SURSHUW LQYHVWPHQW DFWLYLW LQFOXGLQJ WKH KROGLQJ 104. ZKLFK PDLQO stands out from the consolidated income statement via the inclusion of results from property development and service activities via a single line RI FRQWULEXWLRQ WR WKH *URXSV QHW SURILW LL 105. EHVLGHV WKH QHW FXUUHQW FDVK IORZ LQWURGXFWLRQ RI (35$ (DUQLQJV IURP 3URSHUW ,QYHVWPHQW 106. ICADE 2013 FINANCIAL AND LEGAL REPORT 3 1 ,7(06 2)b%86,1(66 $&7,9,7,(6 $1' 5(68/76 $FWLYLWLHV DQG UHVXOWV .(< ),*85(6 b 107. 108. ,QGLFDWRUV DUH UHVWDWHG WR WDNH DFFRXQW RI ,FDGH 6DQW PLQRULW LQWHUHVWV 6&+('8/( 2) /($6(6 DV RI DQQXDOLVHG UHQW 109. 0 5 10 15 20 25 >2022202220212020201920182017201620152014 13.5% 14% 8.1% 5.3% 5.4% 4.4% 11.3% 2.3% 15% 20.7% (35$ ($51,1*6 )520 3523(5< ,19(670(17 LQbPLOOLRQV RI HXURV DQG HXURVVKDUH 110. 0 50 100 150 200 250 2012 2013 184 214 3.56/share 3.52/share ),;(' 5(6,'8$/ 7(50 2) /($6(6b 111. HDUV 112. 5.0 5.1 4.9 4.6 4.1 3.9 3.9 3.6 Commercial property Strategic assets 2 3 4 5 6 2013201220112010 113. ,FDGH 6LOLF SURIRUPD JXUHV 3523(57< '(9(/230(17 %$&./2* LQbPLOOLRQV RI HXURV 114. 0 200 400 600 800 1,000 1,200 2013201220112010 811 1,028 1,082 1,012 ,)56 5(176 LQbPLOOLRQ RI HXURV 115. $1' ),1$1&,$/ 2&&83$1&< 5$7( DV 116. 288 365 339 503 CurrentIFRSrent 0 100 200 300 400 500 2013201220112010 0 20 40 60 80 100 91.0% 94.8% 94.2% 87.8% 88.7% 93.4% 92.6% 85.5% Commercial property Strategic assets %86,1(66$&7,9,7< 117. ICADE 2013 FINANCIAL AND LEGAL REPORT 1 ,7(06 2)b%86,1(66 $&7,9,7,(6 $1' 5(68/76 9$/8$7,21 2) $66(76 LQbPLOOLRQV RI HXURV 118. H[FOXGLQJ GXWLHV 85% 89% 94% Strategicassets Alternativeassets Non-strategicassets 0 2,000 4,000 6,000 8,000 10,000 Dec. 2013June 2013Dec. 2012 4,292 1,0431,083 499 688 6,313 6,049 9,063 939 4,318 7,497 1,066 (35$ 75,3/( 1(7 1$9 LQbPLOOLRQV RI HXURV DQG HXURVVKDUH 119. 0 1,000 2,000 3,000 4,000 5,000 6,000 Dec. 2013June 2013Dec. 2012 4,190 4,079 5,704 80,7/share 78,9/share 77,3/share 5$7(6 2) 5(7851 DV 120. excl. duties 0 1 2 3 4 5 6 7 8 9 Total Commercial property Commercial non-strategic portfolio Alternative assets Strategic assets June2013Dec.2012 Dec.2013 7.1% 7.2% 7.4% 7.3% 7.2% 7.4% 6.9% 6.9% 6.9% 9.0% 8.1% 8.9% /2$1 72 9$/8( /79 121. DV 122. b 123. 0% 10% 20% 30% 40% Dec. 2013June 2013Dec. 2012 36.7% 36.2% 38.2% 124. ,QFOXGHV WKH EDODQFH VKHHW YDOXH RI 333V QDQFLDO OLDELOLWLHV $9(5$*( &267 2) '(%7 DV 125. 0% 1% 2% 3% 4% Dec. 2013June 2013Dec. 2012 3.83% 3.84% 3.83% 6&+('8/( 2) '5$:1 '2:1 '(%7 LQbPLOOLRQV RI HXURV 126. 585 577 578 811 187 122 148 573 759 0 100 200 300 400 500 600 700 800 900 2022 and beyond 20212020201920182017201620152014 ),1$1&,1*,1',&$7256 $66(7,1',&$7256 127. 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