At its recent meeting, the KlÃ©pierre Supervisory Board approved the consolidated financial statements presented in accordance with IFRS, which will serve as the basis for preparing financial statements as of January 1, 2005.
The adoption of these standards will not lead to any major difference in terms of understanding KlÃ©pierre's performance. The change with respect to its key performance indicatorsâ"i.e. revenues, net current cash flow and revalued net assetsâ"is only marginal.
The Group's decision to use the cost method for the valuation and accounting treatment of its investment property, which is more consistent with KlÃ©pierre's business strategy, has no impact on these indicators.
However, for the sake of clarity and full disclosure, KlÃ©pierre will release, as of its interim June 30, 2005 reporting date, a pro forma statement that also presents the fair values of its investment property.
The only significant impact of IFRS was due to the marking to market of KlÃ©pierre's interest-rate hedging instruments, which was done before the application of IAS 32 and 39, and which results in decrease in opening balance sheet shareholders' equity of less than 5%.
New Chairman Supervisory Board
Vivien LÃ©vy-Garboua, who was appointed head of compliance for BNP Paribas in January 2005, has opted to refrain from serving as chairman of any board. Consequently, at the close of KlÃ©pierreâs annual shareholdersâ meeting on April 7, 2005, Mr. LÃ©vy-Garboua resigned from his position as Chairman of the KlÃ©pierre Supervisory Board, a position he had held since April 12, 2000. He intends to maintain his seat on the Supervisory Board, to which he was re-elected by the shareholders on April 8, 2004.
The Supervisory Board, which convened its members immediately after this yearâs annual
shareholdersâ meeting, has selected Dominique Hoenn as its new Chairman. Currently Senior
Adviser and formerly CEO of BNP Paribas, Mr. Hoenn is a member of the CollÃ¨ge de lâAutoritÃ© des MarchÃ©s Financiers. He has served on the KlÃ©pierre Supervisory Board since April 8, 2004.