MRM - 2018 Registration document

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General information on the issuer and its capital

Annual financial statements for the year ended 31 December 2018

The main accounting methods used are as follows:

The majority of equity investments held by M.R.M. are property companies owning one or more office or retail properties. At each reporting date, M.R.M. assesses the value of its equity investments relative to their value in use. The value in use of each subsidiary is determined with reference to the share of the net equity owned, remeasured on the basis of the present value of property assets it owns, and with reference to its outlook. Real estate assets appraised by independent appraisers at each closing. If the resulting value in use is under the net carrying amount, an impairment loss is recognised. 3.2 Other non-current financial assets These correspond to treasury shares held by M.R.M. outside the liquidity agreement. Treasury shares acquired within the framework of the liquidity agreement are presented as marketable securities. The Company has entered into an agreement on current account advances with some of its subsidiaries. These advances are classified as assets under “Other receivables”. Current accounts in credit in M.R.M.’s books at the reporting date are classified as liabilities under “Loans and other borrowings”. At each reporting date, where the net equity of subsidiaries owned by the Company is negative, the current accounts are impaired up to the amount of the share of the net equity owned. Marketable securities and treasury shares The gross amount represents the acquisition cost excluding ancillary expenses. When the net asset value falls below the gross amount, the difference is impaired. The net asset value of treasury shares is based on the average share price over the month preceding the end of the reporting period. The gross amount of other long-term securities and investment securities represents the acquisition cost excluding ancillary expenses. 5. 6. Receivables and payables Receivables and payables are stated at face value. As regards receivables, the risk of non-collection is assessed at each reporting date and an impairment loss recognised where the net asset value falls below the carrying amount. 4. Current accounts related to equity investments

1. Adoption of SIIC status On 31 January 2008, the Company opted for SIIC status with effect from 1 January 2008. The SIIC regime, introduced by Article 11 of the 2003 Budget Law, is open to listed companies with a share capital of over €15 million that are wholly engaged in property activities and grants companies having opted for SIIC status on an irrevocable basis an income tax exemption for the portion of their net profit generated from property activities subject to the following payout requirements: • 85% of profits from the letting of buildings; • 50% of capital gains from the disposal of buildings; • 100% of dividends received from subsidiaries having opted in. The adoption of SIIC status in 2008 resulted in the immediate taxation of unrealised capital gains on properties and investments in property companies at the reduced rate of 16.5% payable over four years. As such, no tax liability was recorded following the allocation of prior losses. For financial years ending on or after 31 December 2013, the payout requirements were changed as follows by the 2013 Amended Budget Law published on 3 January 2014: • 95% of profits from the letting of buildings; • 60% of capital gains from the disposal of buildings; • 100% of dividends received from subsidiaries having opted in. Non-current assets The Company applies CRC Regulations 2002-10 of 12 December 2002 and 2004-06 of 23 November 2006 on defining, recognising, measuring, depreciating, amortising and impairing assets. 3.1 Equity investments Equity investments are recognised on the statement of financial position at cost in accordance with CRC Regulation 2004-06 on defining, recognising and measuring assets. Pursuant to the option provided by Article 321.10 of the PCG (French GAAP), the Company has opted for acquisition costs to be included in the value of securities. These acquisition costs are subject to an exceptional depreciation over a period of five years. 2. 3. Non-current financial assets

M.R.M. 2018 REGISTRATION DOCUMENT

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