Bringing the city to life

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Headquarters

Millénaire 1

35, rue de la Gare

75168 Paris Cedex 19

France

Tel. : +33 (0)1 41 57 70 00

D ir e c ti o n d e la C o m m u n ic a ti o n d ’I ca d e -J u n e 2 0 0 7

www.icade.fr

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6 Bringing the city to life

Bringing the city to life

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CORPORATE GOVERNANCE...5

The Board of Directors...6

Committees of the Board of Directors...6

Management Committees...8

PRESENTATION...11

The Chairman’s Message...12

Stock Market Flotation...14

Profile...16

Background...18

Key Figures...20

Strategy...24

ICADE’S THREE MARKETS...27

A market-based organisation...28 Housing...30 Commercial Property...34 Public-Health Partnerships...38 International...42 SUSTAINABLE DEVELOPMENT...47

Icade, a sustainable development player...48

Environmental Quality...50

HUMAN RESOURCES...53

Icade’s Employees...54

Career Development / Recruitment...55

ORGANISATION CHART...57

ANNUAL ACCOUNTS at 31.12.2006...61

Consolidated financial statements...62

Notes to the consolidated financial statements...70

Statutory Auditors’ Report on the consolidated financial statements...138

Corporate financial statements...140

Statutory Auditors’ General Report on the annual accounts...162

Statutory Auditors’ Special Report on related-party agreements...164

Chairman’s Report on corporate governance...167

Statutory Auditors’ Report on the Chairman’s Report...179

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1

The Board of Directors determines the guidelines of Icade’s businesses and oversees their implementation. Subject to the powers expressly assigned during Shareholders’ Meetings, and within the confines of the corporate purpose, it deals with all matters relating to the smooth running of Icade and, through its deliberations, makes decisions on matters concerning it. The Board of Directors meets at least three times a year and whenever the interests of the company so require. It met eight times during 2006.

COMMITTEES OF THE BOARD OF DIRECTORS

In order to support it in its work, the Board of Directors has set up three specialist committees: an audit committee, a nominations’ and remuneration committee, and an investment committee.

THE AUDIT COMMITTEE

The audit committee assesses the quality of the financial information submitted to the Board of Directors and examines the regulatory accounting methods used to produce the financial statements. It supplements the work of the Statutory Auditors without replacing them. The members of the audit committee are Christian Peene (Chairman), Jérôme Gallot and Marc-Antoine Autheman. It met four times during 2006.

THE NOMINATIONS’ AND REMUNERATION COMMITTEE

The nominations’ and remuneration committee makes proposals to the Board of Directors concerning the appointment of Directors and the remuneration of the Chairman and Chief Executive Officer. The members of the nominations’ and remuneration committee are Edmond Alphandéry (Chairman), Étienne Bertier, Jérôme Gallot and François Pochard. Guy Parisot, head of Icade’s Human Resources, has been appointed as its secretary. This committee met three times during 2006.

THE INVESTMENT COMMITTEE

The investment committee makes decisions on any Icade investment or disinvestment undertaking, the value of which (or the aggregate turnover for multi-annual contracts) is over €50 million.

In respect of acquisition and interest-taking operations, the committee makes decisions on undertakings of more than €30 million.

The members of the investment committee are Étienne Bertier (Chairman), Caisse des dépôts represented by Dominique Marcel, Edmond Alphandéry and Christian Peene. It met four times during 2006.

7 Le Millénaire 1 - Parc du Millénaire

Paris, 19th_{arrondissement} 30,000 m2_{of net floor space}

Icade Emgp: investor Icade Tertial: assistant to the project owner Architect: Arte Charpentier Building certified “NF bâtiments tertiaires-Démarche HQE®” (French commercial property standard –

High Environmental Quality Approach) Icade’s future headquarters

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Corporate governance

9

MANAGEMENT COMMITTEES

THE MANAGEMENT COMMITTEE

The management committee meets every week to deal with matters relating to the finances, organisation, customers and employees of Icade. It also routinely discusses current projects.

THE STRATEGIC COMMITTEE

The strategic committee meets every six weeks to deal with the strategy and guidelines of Icade, the development of operational activities, business acquisitions and disposals, and synergy between the Business Units.

THE UNDERTAKINGS’ COMMITTEE

The undertakings’ committee is responsible for assessing and authorising all the investment or disinvestment commitments of Icade and its Business Units, whether such commitments are on or off the Group’s balance sheet. It meets twice a month and whenever the situation so requires.

It examines all projects which exceed certain thresholds. Projects referred to Icade’s undertakings’ committee are subject to prior authorisation by the undertakings’ committees and/or meetings for each market, with the latter deciding in respect of all projects without any threshold limit.

Without any threshold limit, the undertakings’ committee decides on all projects for international development, expansion into new business lines and on acquisition operations, and in respect of taking interests, the disposal of shares, businesses, mergers and partnerships.

THE HUMAN RESOURCES’ COMMITTEE

The human resources’ committee meets every two weeks to discuss human resources considerations within Icade and, in particular, to monitor major ongoing projects, report on mobility, recruitment,

legislation and legal considerations, training and the introduction and monitoring of procedures.

_{THE MEMBERS}

OF THE MANAGEMENT COMMITTEE

Étienne Bertier

Chairman and Chief Executive Officer

Marianne de Battisti

Head of the International and Communications Division

Bertrand Delannoy

Head of Finance, IT and Legal Affairs

Antoine Fayet

Head of the Housing Division

Jean-Pierre Matton

Head of the Public-Health Partnerships Division

Guy Parisot

Head of Human Resources and the Audit Division

Inès Reinmann

Head of the Commercial Property Division

From left to right: Jean-Pierre Matton, Antoine Fayet, Inès Reinmann, Étienne Bertier, Marianne de Battisti, Bertrand Delannoy and Guy Parisot.

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Presentation

Philippe Aubert

2

11 Headquarters of the Region Nord-Pas-de-Calais

Lille (59)

Architects: Delemazure - Neveux - Trace - Wilmotte Project Owner: Region Nord-Pas-de-Calais

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Annual Report 2006

12 13

A year ago, Icade set itself the target of becoming one of the main European property players. Today, this target has been achieved. The stock market flotation in April 2006 was a resounding success. It provided Icade with the financial resources to step-up its growth strategy whilst consolidating a unique “property developer” model. This major change to the company could not have taken place without the support of Caisse des dépôts and, in particular, its Managing Director, Francis Mayer, who died in December.

31 December 2005.

On account of the foregoing, the Group’s share of net income was up by a significant 198% to €_{211 million at the end of 2006. On 21 February 2007, Icade’s Board of Directors suggested that} the General Meeting of 12 April 2007 resolve to pay out a dividend of €1.35 per share, representing 60% of Icade’s consolidated net income.

Icade has a significant asset base. It is made up of 2.5 million m2_{of housing in the Île-de-France region,}

568,000 m2_{of office buildings and business premises in Paris, La Défense, Boulogne, Issy-les-Moulineaux,}

La Plaine Saint-Denis, Levallois-Perret, and 150,000 m2 _{of office buildings in the main German cities.}

The appraised value of these assets was €4.4 billion at 31 December 2006, up 41% compared to 31 December 2005, and the revalued net asset value of the investments was €2.8 billion, representing an increase of 64% compared to 31 December 2005.

FOR ICADE, 2006

was characterised by the launch of the construction of part of the 1,000 housing units being planned by Icade Capri, on land belonging to Icade Patrimoine, which shall acquire half of said housing units; by protection measures for tenants suffering rent increases following their leases no longer being subject to agreements: maximum 25% ceiling on rent versus revenue, no rent increase for tenants over 70 years old; by the filing of six building permits by Icade Pierre pour Tous for affordable housing operations; by the delivery of Millénaire 1 on the Icade Emgp site (30,000 m2_{), which will house Icade’s new headquarters;}

by the launch of the construction, by Icade Tertial, of an office building in Villejuif (15,000 m2_{) on behalf}

of Icade Foncière des Pimonts. Icade’s position as one of the leading companies in respect of public-private sector partnerships was confirmed with the 5 new contracts which it won. Icade Foncière Publique made its first major investment with the acquisition of a 30,000 m2_{office building in Levallois-Perret, which is}

rented out to the French Ministry of the Interior. The company has also stepped up its international presence through the acquisition of the property portfolio of DaimlerChrysler in Germany (150,000 m2 _and

79 hectares of property reserves). Finally, Icade Foncier

Développement concluded a large-scale operation by purchasing the former MacDonald warehouses in Paris (130,000 m2_{over 5 hectares).}

THE INVESTMENT PLAN WHICH WAS

ANNOUNCED WHEN THE COMPANY

WAS FLOATED ON THE STOCK

MARKET

IS CURRENTLY BEING

IMPLEMENTED

Buoyed-up by the success of its stock market

flotation, Icade demonstrated its ability to seize investment opportunities in France and Europe by investing €875 million during 2006.

ÉTIENNE BERTIER

The Chairman’s Message

In March 2006, Icade laid down plans to invest

€1.8 billion over 4 years. At present, almost all this amount has already been identified. Consequently, during the second half of 2007, Icade will increase the amount of its investment plan. With its strong position in its domestic market and its unique know-how as regards property restructuring and development, Icade will continue to focus on acquisitions of assets having significant value-generation potential: maintenance and reinvestment in Icade Patrimoine, Parc du Millénaire buildings and the implementation of a master plan for Icade Emgp, shopping centres at Aubervilliers and the Odysseum for Icade Emgp and Icade Foncière des Pimonts, finalisation of the operation with Immobilière Mr. Bricolage for Icade Foncière des Pimonts, acquisition of lands and international expansion.

WITH EXCEPTIONNAL RESULTS

Yet again, this year, Icade confirmed the effectiveness of its business model. Its efficient market-based (housing, commercial property and public-health partnerships) and business line-based (development, investment and services) organisation is perfectly equipped to handle specific customer problems, whether the latter are individuals, investors or users. It also allows the company to benefit from the dynamic nature of development, the solidity of the investments and the recurrence of services.

Turnover reached €1,327 million, representing a significant increase compared to 2005 (+ 12.5%), owing, in particular, to the dynamism of the housing development division. The development order book represents €478 million for the housing division and 650,000 m2_{currently being developed}

and constructed for the commercial property and the public-health partnership.

The EBITDA was up 30.6%, from €201 million in 2005 to €_{262 million in 2006, giving an EBITDA margin of 19.8% at} the end of 2006 compared with 17% at the end of 2005. This significant increase is due to the dynamism of the business and sustained productivity initiatives.

In 2006, Icade carried out an asset-arbitration programme by disposing of three SCIs (non-trading property companies) belonging to Icade Foncière des Pimonts (€93 million of income from disposals), and housing units belonging to Icade Patrimoine (€35 million). In all, the income from disposals was €125 million compared to €37 million at

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15 Annual Report 2006

14

12 April 2006 witnessed the culmination of a long human and financial adventure: the floating of Icade on the Eurolist market of Euronext Paris SA, with €700 million being raised.

This stock market flotation enabled staff to be offered the chance to be involved in the company’s operations and associated with its success (eight employees out of ten subscribed for the offer reserved for staff), for an ambitious investment plan to be implemented, both in France and in Europe, and for the company to begin to compare itself with the major property sector players.

The rise in the share price (+72% between 12 April and 29 December 2006) meant that Icade was one of the most high-profile companies on the market and highlighted investor-confidence in a company in the original position of being an integrated property developer.

Stock Market Flotation

1.12 64.70

34.18

ICADE’S SHAREHOLDING AT 31 DECEMBER 2006

(in %)

On 12 april 2006.

Caisse des dépôts Employees

Float (number of freely-traded shares in public hands)

april 06 may 06 june 06 july 06 august 06 september 06 october 06 november 06 december 06 january 07 29.12.2006 –20 % –10 % 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 %

ICADE EPRA CAC 40

€_47.85

Icade’s share price:

very sharp rise

since flotation on the stock market

**CHANGE IN THE ICADE SHARE PRICE, EPRA* AND CAC 40**

from 11.04 to 29.12.2006

27.90 €

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Annual Report 2006 16 17

Presentation

3 1 2

PROFILE

Icade is an integrated property developer involved in the three major property markets: housing for private tenants, first-time buyers or investors, commercial property (offices, business premises, leisure and shop premises) for companies and institutional investors and public and health property (communal and health facilities) for local government, authorities and public services.

Icade has crafted its organisation so as to consolidate its presence in each of these markets: development (design and development), investment (investment, ownership and arbitration), and services (management and operations).

This strategic policy allows it to provide its customers with adapted solutions and to intervene, globally, in respect of the sector’s main current problems such as public-private partnerships, the outsourcing of major asset bases or integrated-service offers. This model means that Icade has access to property resources, the enhancement of customer-relations, and limited exposure to property cycles, whilst favouring growth and constant revenue levels.

In 2006, with a view to completing this model, Icade created Icade Foncier Développement so as to acquire and enhance sites for all its structures.

The 2006 creation of Icade Reit, which holds its office assets acquired from DaimlerChrysler in Germany, also confirms the company’s European growth policy.

1 - Méridia Nice (06) 28,500 m2_{of net floor space} Icade Tertial Regions: co-developer

Architects: Reichen & Robert/ M. Benaïm/J.P. Gomis/Brante & Vollenweider Investor: Cogedim Office Partners

2 - Les Hauts de Montlouis Oullins (69) 76 housing units Icade Capri: developer Architects: F. Dreidemie/Archigroup

3 - Institut d’optique Graduate School-Campus Polytechnique

Palaiseau (91) 12,200 m2_{of net floor space}

Icade G3A: agent Designer: Serau Architectes et ingénieurs associés

Developer: GSE Project Owner: Institut d’optique Graduate School

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Annual Report 2006

18 19

Presentation

SOME KEY DATES FOR ICADE

Domaine de Villiers Draveil (91)

Icade Patrimoine: investor

COMMERCIAL

PUBLIC-HEALTH

HOUSING

_PROPERTY

_PARTNERSHIPS

1954

_CreationScic

1974

_CreationCapri G3A

1997

Creation Setrhi Acquisition

1998

_AcquisitionGFF Eurogem

2000

Acquisition Tertial Creation Emgp

2002

Acquisition Arcoba Acquisition

Foncière des Pimonts

2004

Acquisition

Eurogem

Acquiring minority interests

Capri Icade Conseil

2005

Acquiring minority interests Acquisition

Cabinet Villa

Acquisition

Foncière des Pimonts Icade Foncière Publique

Acquiring minority interests Creation

Icade Gestion Tertiaire

2006

Creation

Icade Reit BV

Creation

BACKGROUND

Since 1954, Icade, formerly known as the Société Centrale Immobilière de la Caisse des dépôts (SCIC), has been one of the major players in the French property sector. In 2004, its transformation was stepped up by the introduction of a policy of 100% control of its unlisted subsidiaries, by the continuation of its expansion in the housing market, by a significant increase in its presence in the commercial property market, by the development of the public business, by the disposal of assets which were no longer in-line with its development model (within the context of the reorganisation of the property-related activities of Caisse des dépôts) and, finally, by a first major step to establishing a presence in Germany through investment in office buildings.

Initially, and until the end of the 1980s, Icade was a service group specialised in building housing and public and para-public infrastructures. Today, it is one of the few property developers in Europe which operates on three property markets (housing, commercial, public and health), and throughout the value chain (development, investment and services).

Icade Foncier Développement

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20

CONSOLIDATED KEY FIGURES

At 31 December 2006, Icade recorded consolidated turnover of €1,327.2 million, broken-down between housing (64%), commercial property (27%) and public-health partnerships (9%). Icade continued to record two-figure growth during 2006 owing to the good performance of rent and the significant expansion of housing development.

During the same period, Icade generated EBITDA of €262.3 million, up 30.6% compared to 31 December 2005. This major increase is principally linked to the very good performance levels of housing development (+ €30.8 million) and the dynamism of the investment companies (+ €33.5 million, €20.6 million of which was for Icade Patrimoine, €9.8 million for the three commercial property investment companies and €3.1 million for Icade Foncière Publique). The EBITDA margin therefore reached a high level of 19.8% at 31 December 2006, reflecting the major productivity initiatives and the effectiveness of the company’s business model (growth, recurrence and profitability).

At 31 December 2006, income from disposals stood at €125.0 million compared to €36.9 million at 31 December 2005. This is mainly composed of the disposals of the three SCIs belonging to Icade Foncière des Pimonts (€93.3 million in income from disposals) and the disposal of the housing properties of Icade Patrimoine (€34.6 million, 227 housing units sold unitarily, and 553 housing units sold as a block).

GROWTH

12.5%

≥

TURNOVER

€

m

1,327

GROWTH

30.6%

EBITDA

€

m

262 GROWTH

198%

NET INCOME GROUP SHARE

€

m

211 GROWTH

64%

REVALUED NET ASSET VALUE (Icade proportion of 5 investment companies)

€

m

2,807

≥

Lycée Galilée Gennevilliers (92) 22,000 m2_{of net floor space}

Icade G3A: agent Architect: J.P. Lott

Project Owner: Region Île-de-France

Presentation

KEY FIGURES FOR 2006

ON A LIKE-FOR-LIKE BASIS

€million(IFRS) 31.12.2005 31.12.2006 Variation

Turnover 1,179 1,327 + 12.5%

EBITDA 201 262 + 30.6%

EBITDA/TURNOVER 17% 19,8% + 2.8pts

Income from disposals 37 125 + 237%

Net income, Group share 71 211 + 198%

Net current cash-flow 127 195 + 53.1%

Net financial debt 776 602 – 22%

Shareholders’ equity 1,161 1,786 + 54%

LTV (Loan To Value)* 25% 14% – 11 pts

Revalued liquidation net asset value (Icade proportion**) 1,709 2,807 + 64%

* Defined as the net financial debt on the value of assets. ** Including direct interests in the SCIs of Icade Patrimoine.

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Annual Report 2006

22 23

CONTRIBUTIONS TO TURNOVER

Housing turnover increased by 20.9% to €847.2 million owing to the dynamism of housing development (+ €137 million) and Icade Patrimoine (+ €11 million).

Commercial property turnover was down 2% to €352 million which was essentially due to the delivery of the “Portes d’Arcueil” office building in June 2006. Nevertheless, the commercial property investment companies saw a 6% increase in their turnover with the integration of the German property investments. Public-health partnerships turnover increased by 31% to €124.2 million owing to the development business.

CONTRIBUTIONS TO EBITDA

Icade generated EBITDA of €262.3 million, up 30.6% compared to 31 December 2005. This major increase is principally linked to the very good performance levels of housing development (+ €30.8 million) and the dynamism of the property investment companies (+ €33.5 million, €20.6 million of which was for Icade Patrimoine, €9.8 million for the three commercial property investment companies and €3.1 million for Icade Foncière Publique).

NET INCOME

The Group’s share of net income tripled between 2005 and 2006 to reach €211.3 million (€70.8 million in 2005).

REVALUED LIQUIDATION NET ASSET VALUE

The value of the asset base of Icade’s five investment companies (Icade Patrimoine, Icade Emgp, Icade Foncière des Pimonts, Icade Foncière Publique and Icade Reit), not including rights, at 31 December 2006, was €4.4 billion, up 41% compared to 31 December 2005. Icade’s share in the revalued liquidation net asset value of the five investment companies was €2.81 billion, up 64% compared to 31 December 2005.

At 31 December 2006, the Loan To Value (ratio of the net debt / value of the assets of Icade Patrimoine, Icade Emgp, Icade Foncière des Pimonts, Icade Foncière Publique and Icade Reit) was 14% owing to the capital increase carried-out during the flotation on the stock market for €70 million and the increase in the value of the assets.

A SOUND ASSET BASE

Icade Patrimoine

€

1.9 billion

TYPE OF ASSETS •44,000 intermediate housing units in Île-de-France •2.55 million m2 on 580 ha of land •Average rent: €6 /m2_/month •Value of assets: €720 /m2_/flat

HOUSING

Icade Foncière Publique

€

0.2 billion

TYPE OF ASSETS •Outsourced assets

of the State, local government bodies, private owners •Buildings rented to public users: 30,000 m2_at Levallois-Perret (rented to the Ministry of the Interior)

PUBLIC-HEALTH

PARTNERSHIPS

Icade Emgp

€

1.2 billion

TYPE OF ASSETS •Business parks in North-East Paris •372,000 m2 of offices and business premises on 76 ha Icade Reit

€

0.4 billion

TYPE OF ASSETS •150,000 m2_{of offices}

•79 ha of property reserves, 72 ha of which to be acquired during 2007 in Germany

Icade Foncière des Pimonts

€

0.7 billion

TYPE OF ASSETS •Top-end offices in

the central business district

•80,000 m2_{of rented} offices and business premises (Group’s share)

Total: €4.4 billion

Presentation

COMMERCIAL PROPERTY

* Of which international activities (2005), Icade’s parent company, Icade Foncier Développement and inter-market synergy (2005: €24.5 million - 2006: €3.5 million).

** Of which international activities (2005), Icade’s parent company, Icade Foncier Développement and inter-market synergy (2005: – €11.6 million - 2006: – €9.7 million).

HOUSING

COMMERCIAL

PUBLIC-HEALTH

PROPERTY

PATNERSHIPS

€m145 €m118 €m9

(55%of EBITDA) (45%of EBITDA)

(

3%of EBITDA

)

DEVELOPMENT

69.2

16.0

3.4

€m88(34% of total EBITDA) INVESTMENT

75.5

100.6

3.1

€m179(68% of total EBITDA) SERVICES

0.7

2.8

2.3

€m6(2% of total EBITDA) SYNERGY

HOUSING

COMMERCIAL

PUBLIC-HEALTH

PROPERTY

PARTNERSHIPS

€m847 €m352 €m124

(64%of TURNOVER) (27%of TURNOVER)

(

9%of TURNOVER

)

DEVELOPMENT

553.3

126.0

68.6

€m748(56% of TURNOVER) INVESTMENT

203.4

120.3

3.9

€m328(25% of TURNOVER) SERVICES

91.2

113.9

52.5

€m257(19% of TURNOVER) – 0.8 – 7.9 – 0.7

2006 TURNOVER:

€m

1,327*

2005/2006 TURNOVER change: + 12.5%

≥

SYNERGY – 0.2 – 1.4 – 0.1

2006 EBITDA:

€m

262**

2005/2006 EBITDA change: + 30.6%

≥

+ 33% ≥ – 26% ≥+ 74% – 5% ≥ + 6% ≥ ≥ + 7% – 1% + 50% ≥ ≥ ≥ + 80% ≥ – 28% ≥+ 25% – 35% ≥ + 37% ≥ ≥+ 11% +187% ≥ ≥ Change 2005/2006 (in €million) Change 2005/2006 (in €million)

€

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24

Presentation

A REALITY CHARACTERISED BY STRONG DEVELOPMENT

When it was floated on the stock market, Icade announced an investment plan relating to €1.8 billion from 2006 to 2009, €850 million of which has already been identified. In 2006, Icade made €_{875 million of investments, including:}

> _{the international acquisition of a portfolio of offices for €315 million;}

> _{the acquisition by Icade Foncière des Pimonts of a building developed by Icade Tertial in Villejuif} for €44 million;

> _{the acquisition by Icade Foncière Publique of an office building located in Levallois-Perret for} €_{186 million;}

> the purchase of the minority interests in Icade Emgp for €172 million and investments in the Millénaire 1 and Millénaire 2 buildings for €67 million;

> _{the renovation of Icade Patrimoine’s buildings for €52 million.}

In respect of arbitration, Icade plans to dispose of approximately 9,000 agreement-governed housing units from 2007 to 2009.

From 2006 to 2009, and in view of the investments made during the 2006 financial year, Icade is confirming its turnover growth (on average, 8 to 10%) and margin (19% EBITDA margin) targets by 2009, which were announced when it was floated on the stock market.

As a result of the foregoing, during the second half of 2007, Icade will announce a new investment plan for the 2008/2011 period.

STRATEGY

With the support of its main shareholder, Caisse des dépôts, Icade intends to strengthen its positions in each of its markets and has set its sights on becoming one of the leading property operators at European level.

ICADE’S STRATEGY INVOLVES:

> _{enhancing its property assets, within the framework of a long-term investment (building, renovation} and acquisition) and arbitration programme in order to maximise the value-creation potential of its assets;

> _{securing access to new sites, together with Icade Foncier Développement, which is designed to} acquire complex property assets in order to contribute to their enhancement;

> _{offering a complete service based on top-level expertise throughout the value chain of the businesses} in order to increase their development potential on the three markets, with each customer indeed being a potential user of all Icade’s skills;

> _{strengthening Icade’s market positions, particularly by increasing the density of its territorial network} in France and by targeted acquisitions, and developing the business in new growth markets such as urban regeneration and Public-Private Partnerships;

> diversifying its geographic presence by expanding into Southern Europe, Germany and Eastern

Europe, including by means of acquisitions;

> _{setting up common processes in the functional field (IT, management control, cash-flow, communications,} risk control), which generate savings;

> _{rolling out a sustainable development approach to cover the whole business.}

The implementation of this strategy is based on the development of three types of synergy in Icade’s business lines:

> the development of commercial synergy through knowledge of the markets and competition-watch,

by the enhancement of customer-relations and the company’s many skills. This synergy facilitates the development of joint, complete and integrated offers, in particular in the context of setting up complex or town planning operations;

> _{providing the whole company with the potential offered by Icade Foncier Développement in order} to acquire control of property reserves destined to ensure future growth. This new structure uses the huge amount of expertise deployed throughout the company and, in particular, the skills in town planning, and the geographic network of Icade’s different business lines;

> _{the implementation of common processes in the operational fields (engineering, property valuation,} rental management, safety...), which generate savings.

1

2

2 - 84, rue de Villiers Levallois-Perret (92) 30,000 m2_{of net floor space} Acquisition and lay-out of high-rise complex composed of two buildings. Icade G3A: developer

Icade Foncière Publique: investor French Ministry of the Interior: user 1 - Opéra

Villejuif (94) 15,250 m2_{of net floor space} Icade Tertial: developer Icade Foncière des Pimonts: investor

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Icade’s

three markets

3

27 Institut de la vision Paris (75)

11,410 m2_{of net floor space} Icade G3A: developer

Icade Foncière Publique: investor with Caisse des dépôts/CNCE

Architects: J. Brunet-E. Saunier Laurence Méri

Gérard Toussaint

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A MARKET-BASED STRUCTURE

Icade’s operational organisation, which is tailored to its business model, is based around three markets. All Icade’s business lines operate on each of these markets.

In early 2006, Icade established an autonomous structure to serve its three markets, Icade Foncier Développement, which is designed to secure access to new sites and to acquire complex property assets in order to contribute to their enhancement.

Icade’s three markets

29 2 - 400 Promenade des Anglais

Nice (06) 11,000 m2_{of net floor space for offices}

Icade Tertial Regions: co-developer Icade Eurogem: facility manager Architect: J.P. Cabane (Nice)

Investor: Crédit Suisse Asset Management

Users: Conseil Général, Edhec, Stryker, i-selection 1 - Les Jardins d’Aragon

Saint-Denis (93) 66 flats Icade Capri: developer Architects: Edith & Olivier Girard

3 - Hôpital Cognacq-Jay Paris 15th_{arrondissement} 16,000 m2_{of net floor space}

Icade G3A: agent Architect: Toyo Ito

Project Owner: Fondation Cognacq-Jay Operation nominated for the Équerre d’argent 2006 prize

COMMERCIAL

PUBLIC-HEALTH

HOUSING

_PROPERTY

_PARTNERSHIPS

DESIGN AND _>Icade Capri _>Icade Tertial _>Icade G3A DEVELOP >Icade Pierre pour Tous

(Development)

INVEST, >Icade Patrimoine >Icade Emgp >Icade Foncière Publique HOLD AND _>Icade Foncière des Pimonts

ARBITRATE >Icade Reit BV (Investment)

OPERATE >Icade Administration >Icade Gestion Tertiaire >Icade G3A AND MANAGE de Biens _>Icade Eurogem _>Icade Setrhi-Sétaé (Services) >Icade Eurostudiomes >Icade Conseil

>Fincas Anzizu >Icade Arcoba >Resa >Icade Italia

>Icade Benelux >Inmobiliaria de la Caisse des Dépôts España >Imsi >Icade Newreal 3 1 2

(16)

HOUSING

Icade builds, holds, rents and manages housing for private tenants, first-time buyers or investors.

Development

Icade Capri, which operates in 20 French agglomerations, builds and markets urban

apartment buildings for first-time buyers or private rental investors. At the end of 2006, its order book represented €478 million, steady in regard to 2005. Icade Capri also carries on a housing-estate development business.

Through Icade Pierre pour Tous, Icade produces housing for first-time buyers in urban-regeneration districts.

Investment

Icade Patrimoine is Icade’s housing property company, specialising in intermediate

rental accommodation in Île-de-France. With a physical occupancy rate of 98.3%, it is one of the top non-social housing lessors in France. It caters for middle class Île-de-France residents who cannot afford luxury flats, or are not entitled to subsidised housing. At the end of December 2006, the appraised value of its asset base was €_{1.9 billion (not including rights and expenses).}

Services

Icade Administration de Biens, a property manager, offers private individuals and

institutional investors a range of services including management, co-ownership management, transaction and rental marketing services.

Finally, Icade Eurostudiomes is renowned for its business developing and managing serviced-residences (mainly for students).

1 - Le Domaine d’Opale Chelles (77) 146 flats Icade Capri: developer

Architect: François de Alexandris

2 - Les allées Chateaubriand Chelles (77) 88 flats (tranche 1) 48 flats (tranche 2) Icade Capri: developer Architect: Cabinet BIK

31 Annual Report 2006 30

OUTSTANDING FEATURES

AND OUTLOOK

Development

Eight of Icade Capri’s operations won pyramide d’argent prizes, awarded by the Fédération des promoteurs-constructeurs, for aesthetics, quality of life, comfort or sustainable housing. The marketing of Terre de Seine, within the framework of the Rives de Seine co development programme in Boulogne-Billancourt (92), experienced immediate success.

Icade Pierre pour Tous delivered the Les Florianes programme in Saint-Raphaël (120 flats for first-time buyers, average price €2,100/m2_).

Investment

Icade Patrimoine, together with Icade Capri, has laid the ground-stone for the “Les Jardins Ronsard” residence in L’Haÿ-les-Roses (94). This development is part of the planned construction of 1,000 housing units (approximately 500 of which are reserved for it) on its property reserves, so as to renew its stock of intermediate accommodation in the Paris region.

Services

Icade Eurostudiomes delivered three new student halls of residence in Paris (13th

arrondissement), Montpellier and Nice, thus increasing its nation-wide stock of 303 accommodation units.

Key figures

Icade’s three markets

1 2

4,465

reserved flats and plots

44,000

Housing units held, 2.5 million m2

€1.9

billion

appraised value of assets held (+ 33% compared to 31.12.2005)

6,100

serviced flats (student halls of residence)

157,000

plots managed

(17)

STRATEGY

Icade’s strategy in the housing market involves:

>_{developing its geographic presence in housing development in growing} agglomerations and increasing the density of its coverage in France in order to increase its market share and secure its access to land;

>_{continuing the development of additional products in four fields: housing estate} business, town centre renovation / regeneration market, serviced-residences for all publics, individual houses in housing estates;

>_{making development the core synergy by facilitating the obtaining of management} mandates for accommodation services and property development projects; >developing affordable housing, both for new property through Icade Pierre pour

Tous and older property. Icade Patrimoine facilitates the acquisition of housing by their occupants by providing incentives for residential considerations (re-purchase and value guarantee);

>_{enhancing Icade Patrimoine’s asset portfolio in conjunction with local elected} representatives by the implementation of a multi-annual asset plan. A plan for re-allocating assets to social housing bodies and an acquisition and construction programme should contribute to completing Icade Patrimoine’s reorientation towards the intermediate rental accommodation segment. With around 580 hectares of land, Icade also has major potential for future development.

1 - Villa Clara Le Plessis-Trevise (94) 56 flats and 11 houses Icade Capri: developer Architect: ATTB Guy Malot Architecte

2 - Le Patio Gerland Lyon (69) 42 accommodation units

Icade Capri: developer Architects: Module Architectes/Mrs Berberian

3 - Les Vignes de la Cité Carcassonne (11) 77 flats and houses Icade Capri: developer Architect: Jean-Benoît Roux

Icade’s three markets

33

3 1

Richard Remigereau

(18)

COMMERCIAL PROPERTY

In the commercial property market, Icade develops, holds, invests and offers a full range of services.

Development

Under the corporate name, Icade Tertial, Icade develops offices, and shopping and leisure centres in the Paris region. Since the end of 2006, Icade has had a new autonomous structure, Icade Tertial Régions, which is specialised in commercial property development in regional France. The core of the customers being targeted by Icade Tertial and Icade Tertial Régions are user-companies and major national and international investors. At the end of 2006, Icade Tertial’s order book represented 114,000 m2_{of ongoing operations and 222,000 m}2_{of operations in the process of being}

set-up.

Investment

Icade Emgp, a listed company, is the precursor in France of “business parks”. Its 76.5

hectares of land and 453,820 m2_{of surface area represent an exceptional site, located}

between Paris, the Paris ring-road, the A1 motorway and Plaine Saint-Denis, with direct access to Charles-de-Gaulle airport and the Paris-Nord TGV station. Its asset base is comprised of offices, business premises, audiovisual production studios, warehouses and land. Its tenant companies represent a wide range of business sectors such as audiovisual, fashion, distribution and leisure. The appraised value of Icade Emgp was €_{m1,230 (not including rights) at 31 December 2006.}

Icade Foncière des Pimonts, another listed company, holds medium to large-sized

office blocks and is moving into the acquisition of commercial property assets. Icade Foncière des Pimonts operates an office block portfolio located in the Central Business District in Paris, La Défense, Boulogne-Billancourt and Issy-les-Moulineaux. At 31 December 2006, Icade Foncière des Pimonts held total assets of 155,363 m2_(of

which the Group’s share was 84,886 m2_{). The appraised value of Icade Foncière des}

Pimonts was €m707 (not including rights) at 31 December 2006.

Services

Icade handles the rental and operational management of commercial property for third parties and on its own behalf (property and facilities management or PFM), under the corporate names Icade Gestion Tertiaire and Icade Eurogem, project engineering under the corporate name Icade Arcoba, and property consultancy under the corporate name

Icade Conseil. This wide range of services allows the company to meet all its customers’

requirements within the framework of setting-up, developing, managing and optimising their property projects.

OUTSTANDING FEATURES

Development

Icade Tertial, specialised in the development of offices, and shopping and leisure centres, delivered Orange’s new headquarters in Arcueil (94). Les Portes d’Arcueil, the largest property development in Val-de-Marne, houses over 3,000 Orange staff in 45,000 m2_.

The tertiary development of the inner Paris suburbs is witnessing the launch by Icade Tertial of new large-scale programmes in Montrouge (13,180 m2₎

and Villejuif (15,250 m2_).

During the summer, in Montpellier, Icade Tertial began the construction of the Odysseum (50,000 m2_{), a new}

generation shopping centre. Investment

In 2006, the Millénaire 1 building (30,000 m2_{), on Icade Emgp’s site, was}

delivered and will house Icade’s new headquarters, in addition to other companies, as from June 2007.

Building work on Millénaire 2 (28,800 m2

) has commenced for scheduled delivery in June 2007.

Icade Foncière des Pimonts sold three buildings with total surface area of 34,300 m2_{. The company acquired 50%}

of the Atrium building in Boulogne-Billancourt (20,000 m2_{) and an office}

building developed in off-plan sales by Icade Tertial in Villejuif (15,250 m2_).

Services

Since 1 January 2006, Icade has combined, under the corporate name Icade Gestion Tertiaire, its commercial property management businesses (essentially offices), which were carried-on by Icade Administration de Biens in the past.

Icade’s three markets

35

2

1

2 - Le Millénaire 1 - Parc du Millénaire Paris 19th_{arrondissement} 30,000 m2_{of net floor space}

Icade Emgp: investor Icade Tertial: assistant to the project owner

Architect: Arte Charpentier Building “NF bâtiments tertiaires-Démarche HQE®” certified Future headquarters of Icade

336,000

m

2

in the order book (offices and shopping centres)

538,000

m

2 of commercial property held Appraised value of assets held:

€1.9

billion

(+ 28 % on a like-for-like basis compared to 31.12.2005)

Key figures

1 - Opéra Villejuif (94) 15,250 m2_{of net floor space} Icade Foncière des Pimonts: investor Icade Tertial: developer Architect: H. Godet

(19)

2

3

STRATEGY

Icade’s strategy in the commercial property market involves:

>_{increasing development in the shopping centre sector and in the development of} complex operations (programmes combining offices, businesses, housing, conference centres, cinemas...);

>_{consolidating its positions in Île-de-France and increasing its presence in the major} regional cities;

>_{enhancing the unique geographic set-up of Icade Emgp by gradually converting the} site from a warehouse area into a company and business park and improving both the architecture and environment of the site;

>making Icade Foncière des Pimonts the preferred vehicle for commercial and tertiary

asset outsourcing projects;

>_{becoming the leading player in property and facilities management in France and} increasing its profitability by refocusing on higher added value activities: property management, gateways and networks, security and safety;

>_{consolidating the positioning of its consultancy businesses in their upstream and} downstream synergy-federating role.

1 - Odysseum Montpellier (34) 50,000 m2_{of net floor space}

Icade Tertial: developer and marketer of the shopping centre Architects: Design International - DGLA

2 - Cap Sud Montrouge (92) 13,180 m2_{of net floor space} Icade Tertial: co-developer

Architect: J. Haour 3 - Les portes d’Arcueil Arcueil (94) 44,600 m2_{of net floor space} Icade Tertial: developer Icade Arcoba: technical studies

Architect: François Leclercq Investor: UBS User: Orange

Operation nominated for the Équerre d’argent 2006 prize

Icade’s three markets

37

(20)

PUBLIC-HEALTH PARTNERSHIPS

Icade operates in the public and health customers’ markets via its three business lines.

Development

With 13 public-private partnerships established over two years, Icade is imposing itself as one of the leaders in this emerging market. Moreover, as the leading operator in France in the field of health-related property with Icade G3A, it is also involved in the major public amenities sectors (universities, grammar schools, secondary schools), cultural, sport and leisure facilities or administrative offices. At the end of 2006, Icade G3A had an order book representing 148,000 m2 _{of ongoing operations and}

164,000 m2_{of operations in the process of being set-up.}

Investment

Since January 2006, Icade has combined its current and future public-use property within a property company, Icade Foncière Publique, which is designed to host the outsourced assets of the State, local government bodies or private owners, and to hold property rented to public users (ministries, local government bodies, hospitals, clinics, retirement homes), either on a freehold basis, or through investments in companies holding public-private partnership contracts.

Services

Icade G3A provides public amenities on behalf of public authorities, or private

amenities within the framework of mandates or project-owner support contracts.

Icade Setrhi-Sétaé is the market leader in general project management and health

equipment engineering in France. Its skills extend to all sectors: hospitals, clinics, retirement and old people’s homes, laboratories, balneotherapy and thalassotherapy facilities.

1 - Lycée Galilée Gennevilliers (92) 22,000 m2_{of net floor space}

Icade G3A: agent Architect: J.P. Lott

Project Owner: Region Île-de-France

2 - Hôtel de Police Meaux (77) 8,540 m2_{of net floor space}

Icade G3A: developer Icade Foncière Publique: investor

Architect: M. Larivière

OUTSTANDING FEATURES

Development

In 2006, Icade G3A established 5 new public-private partnerships, thus bringing the number of contracts executed by Icade over the last two years to 13. Amongst the new public-private partnerships established, the development of the diplomatic activity property centre of the French Ministry for Foreign Affairs (27,233 m2_of

net floor space – amount of the investment – €_{m50) and the reconstruction of a psychiatric} unit for the Hôpital Laborit in Poitiers (2,923 m2

of net floor space – amount of the investment: €_{m5), should be mentioned.}

Investment

In 2006, Icade Foncière Publique made its first major investment by acquiring an office building worth €m186 in Levallois-Perret (92), which is rented-out to the French Ministry of the Interior (30,000 m2

). Services

Icade G3A was chosen for a project-owner support assignment for the extension of the Bastia hospital centre. Moreover, the Institut d’Optique Graduate School (12,200 m2 _{of net floor space)}

on the campus of the École Polytechnique in Palaiseau was delivered in December 2006, 23 months after the launch of the studies.

Icade’s three markets

39

1

2

Key figures

312,000

m

2

in the order book

30,000

m

2

of offices held

€

m

123

(21)

STRATEGY

Icade’s strategy in the public-health partnerships involves:

>_{establishing itself as one of the leading companies in public-private sector} partnerships in France, expanding all forms of the public amenities development and multi-programme residential complex business;

>_{developing its role as an investor in property destined for the public sector in order} to enable its customers to have a global offer of products and services;

>_{strengthening its position as a leading company in services for the health sector} (studies, engineering, project ownership) and, more generally, for major public amenities.

1 - New diplomatic activity center French Ministry for Foreign Affairs La Courneuve (93) 27,233 m2_{of net floor space}

Icade G3A: developer Icade Foncière Publique: investor with Caisse des dépôts/Crédit foncier

Architect: H. Gaudin Engineering firm: OTH

2 - The Région’s headquarters Nord-Pas-de-Calais

Lille (59) 51,000 m2_{of net floor space}

Icade G3A: agent Architect: Delemazure - Neveux - Trace - Wilmotte

Project Owner: Region Nord-Pas-de-Calais

3 - Polyclinique de Navarre Pau (64) 16,500 m2_{of net floor space}

Combining 4 clinics: 180 beds and places Icade Setrhi-Sétaé: project manager Architect: H. Alozie

Icade’s three markets

Marc Le Blanc

2

3

1

(22)

INTERNATIONAL

Icade provides services to its customers, key international accounts, investors or users in several European countries.

During 2006, Icade confirmed its international development by acquiring a property portfolio from DaimlerChrysler, composed of office buildings and property reserves for development.

Located in Germany, this portfolio is made-up of three types of assets held by a

company created ad hoc, Icade Reit:

>_{a class-A building of 59,000 m}2_{, located in Munich-Allach, alongside the East-West}

motorway axis, in a dynamic commercial business zone, which is 89%-occupied by first-rate tenants (TSystem - Deutsche Telekom Group, MTU, Atena);

>_{office and business property currently subject to revaluation, located in Hamburg,} Frankfurt, Berlin and Stuttgart with total surface area of 90,000 m2_{, 67%-occupied;}

>_{property reserves, over a total of 79 hectares in Munich, Düsseldorf, Berlin and Bad} Homburg.

For several years, Icade has been operating in Spain, Italy and Belgium, in property, housing and commercial property service activities.

In Spain, Icade manages university halls of residence (Resa), housing property (Fincas Anzizu), carries on a property and facilities management business (Imsi), and a

development or co-development business in the commercial property and university halls of residence market. Finally, under the corporate name Inmobiliaria de la

Caisse des dépôts España, Icade ensures the commercial development of its Spanish

subsidiaries.

In Italy, Icade Italia and Icade Newreal offer their property expertise as regards property

and facilities management, whilst shifting towards audit and property transaction activities.

In Belgium, Icade Benelux carries out facilities management and property-project

steering assignments for institutional investors such as the European Commission or the European Parliament.

Icade’s three markets

1

Key figures

150,000

m

2 of commercial buildings held

79 ha

of property reserves

€

m

372

appraised value (+ 18% compared to 31.08.2006)

9,400

housing

units managed (Fincas Anzizu)

21

university

halls of

residence

5,200

beds

managed (Resa) Spain

During 2006, a new student hall of residence opened: Residencia Giner de Los Rios in Alcala de Henares.

43

2 3

OUTSTANDING FEATURES

Germany

Since the acquisition of the DaimlerChrysler property portfolio in Germany, Icade has been able to improve the physical occupancy rate of its buildings to 76% owing to having rented-out an additional 14,000 m2_.

1 and 3 - Munich Allach Germany 59,000 m2_{of offices} Icade: investor Users: TSystem-MTU-Atena 2 - Student hall of residence Giner de Los Rios Alcala de Henares Spain 330 places Icade: manager

(23)

44

STRATEGY

As a result of its strong position on its domestic market, Icade is considering European development which, with an eye to profitability, should favour investment-security. Consequently, Icade does not intend to launch development operations outside France with the exception of those which are launched with a firm promise of acquisitions or minority interests in operations conducted with a local partner. Icade will continue to actively search for growth opportunities in Southern Europe (Italy, Spain), in Germany, and in Eastern Europe, which favour recurrence and the profitability of its investments. Therefore, Icade’s European strategy involves:

>_{seeking out portfolios of residential and commercial (offices and shopping centres)} property assets, the value of which can be enhanced by a contribution from its various areas of expertise;

>_{developing new business park projects by reproducing the Icade Emgp model, by} acquiring one or two sites in a major European city, located on an airport / city centre axis, or in an urban development zone offering good potential;

>_{developing and duplicating its know-how as regards student halls of residence.}

1 - Student hall of residence Manuel Agud Querol San Sebastian Spain 300 places Icade: manager 2 - Goldsteinstrasse Frankfurt Germany 9,430 m2 Business park Icade: investor 3 - Kochstrasse Berlin Germany 11,577 m2_{of offices} Icade: investor

Icade’s three markets

1

3 2

(24)

4

Renaud Glasson 47

Sustainable

development

Lycée Galilée Gennevilliers (92)

Architect: J.P. Lott Project Owner: Region Île-de-France

(25)

ICADE, A SUSTAINABLE DEVELOPMENT PLAYER

Icade takes care to favour development which is ecologically tolerable, in particular so as to limit any negative impact of its business activities on the environment.

Over-and-above simple compliance with legal standards, Icade has taken account of environmental considerations and is particularly attentive to respect for the environment as regards development, in its property company business line, and also in the service business lines.

As a developer, in 2003, Icade introduced an environmental charter in the housing market. This charter was based on the principles established by the “Association Haute Qualité Environnementale (HQE®)” (High Environmental Quality Association).

Its principles are as follows:

> consideration of the features of the site and integration of structures into its environment which favour green areas;

> _{control of the environmental impact during the construction phase. In particular, Icade aims to reduce} nuisance caused by building sites (installation of piles without drilling noise) and to ensure the sorting, management and removal of waste generated during the construction of a property programme to the appropriate dumps;

> _{optimisation of occupants’ water and energy consumption;}

> _{raising public awareness and providing information on the initiatives implemented.}

1 - Goldsteinstrasse Frankfurt Germany Business park 9,430 m2 Icade: investor

2 - Les Chemins du Halage Mantes-la-Jolie (78) 35 flats Icade Capri: developer Architect: R. Reveau

3 - Zac Thiers Lyon Part-Dieu (69) 15,400 m2_{of net floor space}

Icade Tertial Régions: developer Architects: J. Brunet - E. Saunier Investor: Generali Assurances

Sustainable development

49 1 2 3 Séverine Unimon

(26)

50

ENVIRONMENTAL QUALITY

A PRIORITY IN ICADE’S STRATEGY

After years as a natural wasteland, and the spontaneous development or the return of species which had disappeared from the Parc du Millénaire, as part of its sustainable development and environmental protection policy, Icade Emgp sold a hectare of land to the Ville de Paris and to the Semavip, along the canal Saint-Denis, for the creation of the first Parisian ecological reserve in which an eco-system will be established – with part being aquatic and part a dry zone – allowing an environment rich in flora, fauna and birdlife, and unique in Paris, to be re-established.

Icade’s initiatives in favour of environmental protection were rewarded in 2006.

Within the framework of the nationwide competition, “Les Pyramides d’or”, organised by the Fédération

des Promoteurs-Constructeurs, Icade Capri was a prize-winner in 2006 in respect of the following programmes:

>_{Pyramide d’argent}_{in the “Price of comfort and quality of natural life” category for the “Les Jardins}

d’Harmony” programme in Montpellier (architects: Bellecour et Barberot);

>_{Pyramide d’argent}_{in the “Prix Vivrelec” category for the “Patio de l’Argonne” programme in Bordeaux} (architect: A. Loisier);

>_{Pyramide d’argent}_{in the “Property aesthetics prize” category for the “Le Mélèzium” programme in} Lille (architects: J.L. Leclercq, X. Bouffart, Atelier Quatr’A Architecture);

>_{Pyramide d’argent}_{in the “Prix Vivrelec” category and in the “Price of sustainable housing” category} for the “Fontaine d’Emeraude” programme in Cormeilles-en-Parisis (architects: I. Beguin, F. Genin, D. Nahoum);

>_{Pyramide d’argent}_{in the “Price of comfort and quality of natural life” category for the “Val Sully”} programme in Mantes-La-Jolie (architects: R. and T. Reveau).

Icade’s initiatives also relate to the fight against global warming. To this end, Icade Patrimoine is introducing contracts for the operation of communal boiler rooms in which the operator is involved in controlling energy consumption, so as to limit waste. Icade Patrimoine also intends to connect heating facilities to renewable energy networks such as, for example, on the Villejuif site for over 1,000 flats. Finally, the first carbon review of Caisse des dépôts was established by Icade Eurogem to measure the greenhouse gas emissions during the building’s life cycle.

Sustainable development

1 2

2 - Patio de l’Argonne Bordeaux (33) 16 flats Icade Capri: developer

Architect: A. Loisier 1 - Bâtiment 270

Aubervilliers (93) 9,400 m2_{of net floor space} Icade Emgp: investor Icade Tertial: assistant to the Project Owner

Architects: Brenac & Gonzalez This building has obtained HQE® certification amongst the first five certification in France “NF bâtiments tertiaires, Démarche HQE®”.

(27)

Human

resources

5

53 Cécile Paty David Nicolas Nicolas Sebti 52

(28)

ICADE’S EMPLOYEES

ICADE STAFFING LEVELS

At 31 December 2006, Icade’s total staffing level (excluding international) was 3,376 employees, compared to 3,366 at 31 December 2005.

At 31 December 2006, Icade also had 268 international employees.

In 2006, as regards hiring, there were 396 new opened-ended contracts and 406 fixed-term contracts. The total number of staff leaving Icade and its Business Units amounted to 413 people under open-ended contracts and 324 people whose fixed-term contract came to an end.

Staff turnover for the 2006 financial year was 10.46%.

CAREER DEVELOPMENT/

RECRUITMENT

INTERNAL PROMOTION

Internal promotion is one of the key factors of Icade’s human resources policy; prior to any external hiring, an internal search is conducted to verify whether any current staff have the necessary profile.

For the 2006 financial year, the mobility rate was 32%.

ONGOING TRAINING

Icade also focuses on the training of its staff. Thus, during 2006, 5,000 participants were involved in training sessions, i.e. 1.37 days’ training for each employee, for an investment of 2.07% of the payroll (not including salaries).

Since the end of 2006, the École Icade, created in partnership with the École Nationale des Ponts et

Chaussées, has been offering certain of its employees a high-level course.

For 2007, the training-orientation within Icade highlights the strategic approaches of each market and the support departments by specifically favouring complementariness between the different business lines.

Human resources

55 Vincent Rigolet 52.81% 28.26% 13.18% 5.75% 1 783 194 445 954 Housing market

Commercial property market Public-health partnership market Holding (not including international)

(29)

Organisation

chart

6

57 Musée Rodin Paris 7th_{arrondissement} Renovation of the Chapel 3,700 m2_{of net floor space} Icade G3A: agent

Architect: Agence Faloci

Diane Bartoli

(30)

58

SIMPLIFIED ORGANISATION CHART

AS AT 31.12.2006

Icade Capri

■100% Icade Capri SASU

51% Groupe Promo Midi SA 51% Icade Ellul SA

Icade Administration

de Biens

■100% Icade Administration de Biens SASU 100% GFF Institutionnels SASU 100% Icade Eurostudiomes SASU 100% Cabinet Villa SASU

Icade Patrimoine

■100% Icade Patrimoine SA

100% Foncière Commerce IDF SAS

Icade Emgp

■ 83% Icade Emgp SA

Icade

Foncière des Pimonts

■ 95% Icade Foncière des Pimonts SA

Icade España

■100% Inmobiliaria de la Caisse des dépôts España SAU

Icade Reit BV

■ 100% Icade Reit BV

Icade Italia

■ 100% Icade Italia SpA

Icade Benelux

■ 100% Icade Benelux SRL

Icade Eurogem

■100% Icade Eurogem SASU

Icade Gestion Tertiaire

■ 100% Icade Gestion Tertiaire SASU

Icade Conseil

■100% Icade Conseil SASU

Icade Arcoba

■100% Icade Arcoba SASU

Icade Tertial Régions

■100% Icade Tertial Régions SASU

PUBLIC-HEALTH

PARTNERSHIP MARKET

Icade G3A

■100% Icade G3A SASU

100% Icade Setrhi-Sétaé SASU

100% Icade Tertial SASU

Icade Foncière Publique

■ 100% Icade Foncière Publique SASU

COMMERCIAL PRO PERTY MARKET

HOUSING MARKET

(31)

60

Annual accounts

at 31

st

December 2006

Olivier Grall

7

61 Headquarters of the Region Nord-Pas-de-Calais

Lille (59)

Architects: Delemazure - Neveux - Trace - Wilmotte Project Owner: Region Nord-Pas-de-Calais

(32)

16. Other current financial assets...102

17. Cash and cash equivalents...103

18. Investment properties held for sale...103

19. Shareholders’ equity...104 20. Minority interests...106 21. Provisions...107 22. Financial debts...108 23. Trade creditors...111 24. Miscellaneous debts...111 25. Derivatives...112

26. Financial risk management...113

27. Earnings per share...115

28. Commitments to staff...116

29. Staff...119

30. Description of current

stock-option plans...119

31. Off-balance sheet commitments...124

32. Affiliated parties...125

33. Sector report...126

34. Events subsequent to the cut-off date...130 35. Interests in joint ventures...131 36. Securities valued by the

equity method...132

37. Scope of consolidation...132

38. List of unapplied standards

and interpretations...137

CONSOLIDATED BALANCE SHEET ...64 CONSOLIDATED INCOME STATEMENT...66

CONSOLIDATED

CASH FLOW STATEMENT...67

CONSOLIDATED STATEMENT OF VARIATIONS IN SHAREHOLDERS’ EQUITY ...68 NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS...70

1. Accounting principles ...70 2. Changes in the consolidation...81 3. Elements of gross operating

profit...84

4. Profit/loss from disposals...86

5. Financial profit/loss...87

6. Taxes...87 7. Goodwill...89

8. Intangible assets...91

9. Tangible assets and investment

properties...93

10. Securities available for sale...96 11. Other non-current financial assets...98

12. Stocks and WIP...100

13. Trade debtors...100

14. Building contracts and off-plan sales...101

15. Miscellaneous receivables...102

63 Le Clos Lamartine

Le Coudray-Montceaux (91) 2 buildings

(17 and 22 flats) and 22 houses Icade Capri: developer

Architect: Cabinet d’architecture 2AB

Consolidated

financial statements

at 31

st

Bringing the city to life

Headquarters

Millénaire 1

35, rue de la Gare

75168 Paris Cedex 19

France

Tel. : +33 (0)1 41 57 70 00

www.icade.fr

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Contents

Corporate

governance

1

THE MEMBERS OF THE BOARD OF DIRECTORS*

Corporate governance

THE BOARD OF DIRECTORS

COMMITTEES OF THE BOARD OF DIRECTORS

THE AUDIT COMMITTEE

THE NOMINATIONS’ AND REMUNERATION COMMITTEE

THE INVESTMENT COMMITTEE

Corporate governance

MANAGEMENT COMMITTEES

THE MANAGEMENT COMMITTEE

THE STRATEGIC COMMITTEE

THE UNDERTAKINGS’ COMMITTEE

THE HUMAN RESOURCES’ COMMITTEE

THE MEMBERS

OF THE MANAGEMENT COMMITTEE

Presentation

2

FOR ICADE, 2006

THE INVESTMENT PLAN WHICH WAS

ANNOUNCED WHEN THE COMPANY

WAS FLOATED ON THE STOCK

MARKET

IS CURRENTLY BEING

_{THE MEMBERS}

**CHANGE IN THE ICADE SHARE PRICE, EPRA* AND CAC 40**

_PROPERTY

_PARTNERSHIPS