MRM - 2018 Registration document

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General information on the issuer and its capital

Consolidated financial statements for the financial year ended 31 December 2018

8.5 Property asset valuation risk The Group’s property portfolio is appraised twice a year. The valuation of the property portfolio depends on a number of factors, relating primarily to the balance between supply and demand on the market, economic conditions and applicable regulations, which can vary substantially, directly affecting the value of the Company’s assets and indirectly affecting the various LTV ratios giving an indication of the Group’s credit risk.

The appraised value of the Group’s properties and their final value on disposal may not be identical. In addition, such valuations are based on a number of assumptions which may not prove to be correct. Because the Group’s property assets are booked at market value by outside appraisers, the value thereof can be affected by variations in the bases used in the valuation methods (property market trends, mainly in terms of received rents, changing interest rates especially with regard to the discount and capitalisation rates employed).

Note 9

Financing commitments and guarantees

9.1 Commitments given

The commitments given primarily comprise:

31/12/2018

(in thousands of euros)

82,346

Debts guaranteed by collateral (principal and related) (1)

Guarantees and sureties

-

(1) Face value of borrowings.

Certain bank accounts of subsidiaries have been pledged to financial institutions.

9.2 Commitments received The commitments received comprise tenant guarantees for a total of €1,510 thousand.

Note 10

Employee remuneration and benefits

10.1 Workforce and payroll expenses In 2018, as in 2017, the average number of employees was four. Payroll expenses including social security charges (and including the remuneration paid to the Chief Executive Officer

in his capacity as a corporate officer) came to €894 thousand in 2018, compared with €1,037 thousand in 2017. Information on the remuneration of corporate officers is given in Section 4 of the 2018 Registration Document.

10.2 Employee benefits

Accounting principles

IAS 19 requires that any current or future benefits or remuneration granted to employees or a third party be recognised over the vesting period.

As of 31 December 2018, M.R.M., which has only four salaried employees, considered that pension liabilities in respect of defined benefit plans were not significant and therefore did not value its liability in this respect.

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M.R.M. 2018 REGISTRATION DOCUMENT