2016 Registration Document

REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT — 2016 In accordance with Article 212-13 of tyhe AMF General Regulations, this Shelf Registration Document was registered with the Autorité des Marchés Financiers on March 23, 2017. This document may be used in the context of any financial operation if completed by a transaction summary in respect of which the AMF has granted a visa. This documents has been established by the issuer and is binding upon its signatories. CONTENT Message from the Chairman ............................................................. 2 06. CORPORATE SOCIAL RESPONSIBILITY PART ........145 Governance ........................................................................................ 3 6.1 Mercialys’ Corporate Social Responsibility Strategy ..........146 Our value creation model .................................................................. 4 6.2 Active sites in urban areas ....................................................151 Distribution of value ........................................................................... 6 6.3 A responsible company: controlling Key figures .......................................................................................... 8 environmental impacts .........................................................153 Mercialys on the stock market ........................................................ 10 6.4 A responsible company: develop employee Our presence ....................................................................................11 engagement..........................................................................162 Highlights of 2016 .............................................................................12 6.5 Methodology and data verification .....................................168 01. ACTIVITY REPORT ......................................................... 17 07. ORGANIZATION OF THE MERCIALYS GROUP 1.1 Mercialys completed six projects in the second half AND RELATIONS WITH CASINO GROUP of 2016, generating Euro 3 million in annualized rental COMPANIES................................................................... 177 income and a net yield of 11.0% ............................................18 1.2 Significant investments made in 2016, sustaining 7.1 Operational organization ..................................................... 178 growth in rental income and the development pipeline 7.2 Relations with Casino group companies ............................179 in the medium term .................................................................19 7.3 Mercialys organization chart – Subsidiaries 1.3 A substantial development pipeline generating and shareholdings ................................................................186 significant completions in 2017 .............................................19 08. RISK ANALYSIS ............................................................. 193 1.4 Partnership Agreement with the Casino group 8.1 Risk factors ............................................................................194 extended until the end of 2020 ............................................. 20 8.2 Insurance and risk coverage ............................................... 203 1.5 Assets disposals helping to strengthen the financial structure and finance developments .................................... 20 09. CONSOLIDATED FINANCIAL STATEMENTS ............207 1.6 A disposal plan taking LTV significantly below 40% 9.1 Statutory Auditors’ report on the consolidated at end-2017 ..............................................................................21 financial statements ............................................................. 208 1.7 EPRA NNNAV is up +5.1% over 12 months ...........................21 9.2 Financial statements ........................................................... 210 1.8 Sound financial structure .......................................................22 9.3 Notes to the consolidated financial statements .................215 02. FINANCIAL REPORT....................................................... 25 10. PARENT COMPANY FINANCIAL STATEMENTS 2.1 Financial statements ............................................................. 26 AS AT DECEMBER 31, 2016 .........................................259 2.2 Main highlights of 2016 ..........................................................29 10.1 Statutory Auditors’ report on the annual 2.3 Summary of the main key indicators for the period ..............31 financial statements .............................................................260 2.4 Review of activity ....................................................................31 10.2 Financial statements ............................................................262 2.5 Review of consolidated results ..............................................33 10.3 Notes to the parent company financial statements ........... 265 2.6 Changes in the scope of consolidation and valuation of the asset portfolio ......................................40 10.4 Statutory Auditors’ report on related agreements 2.7 Outlook ................................................................................... 42 and commitments ................................................................ 283 2.8 Subsequent events ................................................................ 42 10.5 Five-year results of the company ........................................ 289 2.9 EPRA performance measures ............................................... 43 10.6 Information on Mercialys trade payables terms ................. 289 03. PORTFOLIO AND VALUATION ...................................... 47 11. GENERAL SHAREHOLDERS’ MEETING ....................291 3.1 Portfolio valued at Euro 3,797 million including 11.1 Draft resolutions ....................................................................292 transfer taxes at December 31, 2016 .................................... 48 11.2 Statutory Auditors’ report on the issuance of share 3.2 A diversified portfolio of retail assets .................................... 49 units and other securities with maintenance and/or 3.3 Presence in areas with strong growth potential ...................50 cancellation of preferential subscription rights ..................316 3.4 Real Estate Appraisal Report prepared by Mercialys’ 11.3 Statutory Auditors’ Report on capital transactions Independent Appraisers ....................................................... 55 provided for in Resolutions 26 to 28 of the Extraordinary 04. STOCK MARKET INFORMATION ................................. 61 General Shareholders’ Meeting of April 27, 2017 ................318 4.1 Mercialys’ share performance................................................62 12. ADDITIONAL INFORMATION ..................................... 321 4.2 Share ownership structure and voting rights 12.1 General information ..............................................................322 at January 31, 2017 ................................................................. 63 12.2 Memorandum and by-laws ..................................................327 4.3 Major holdings ....................................................................... 63 12.3 Documents on display ........................................................ 333 4.4 Share buyback program ........................................................ 64 4.5 Shareholder agreement ........................................................ 66 12.4 Share capital......................................................................... 333 4.6 Dividend policy .......................................................................67 12.5 History of the Company ....................................................... 339 4.7 Communication policy .......................................................... 68 12.6 Research and development, patents and licenses ...........340 4.8 Financial calendar 2017 ......................................................... 68 12.7 Person responsible for the registration document .............341 12.8 Commission Regulation (EC) No. 809/2004 05. CORPORATE GOVERNANCE ........................................ 71 of April 29, 2009 – Cross-reference table ............................342 5.1 Board of Directors – Executive Management .......................72 5.2 Statutory Auditors ................................................................. 114 12.9 Financial report – Cross-reference table ............................ 344 5.3 Chairman’s report ..................................................................116 12.10 Board of Directors’ management report – 5.4 Statutory Auditors’ Report, prepared in accordance with cross-reference table .......................................................... 345 Article L. 225-235 of the French Commercial Code (“Code 12.11 Corporate social responsability – de commerce”), on the report prepared by the Chairman cross-reference table .......................................................... 346 of the Board of Directors of Mercialys S.A. ........................... 141 12.12 Glossary.................................................................................351 1 REGISTRATION DOCUMENT 2016 MESSAGE FROM THE CHAIRMAN growth in earnings. Our biggest success director, bringing the independence rate in terms of size was the delivery of the of your Company’s Board of Directors extension to the Espaces Fenouillet to 58.3%, and its proportion of female shopping center in Toulouse: this project, executives to 41.7%. delivered

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