MRM - 2018 Registration document

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General information on the issuer and its capital Management report for the year ended 31 December 2018

1.5 Foreseeable changes and outlook With the sale of the Group’s entire office asset portfolio, M.R.M.’s strategy to refocus its activity on commercial real estate is now complete. With a solid financial structure, M.R.M. has made progress in its substantial investment programme designed to enhance the value of its retail properties. This represents a total projected investment of €35.5 million, of which €21 million was committed as of 31 December 2018, making for total cumulative commitments of €34 million as at 31 December 2018. After the completion in 2016 of works to reconfigure and relet 5,000m 2 in the Sud Canal shopping centre in Saint- Quentin-en-Yvelines, and to renovate and reposition the Les Halles du Beffroi shopping centre in Amiens, in 2017 full ownership of the Aria Parc retail park in Allonnes was acquired, the reconfiguration and extension of the Carré Vélizy complex in Vélizy-Villacoublay were completed, and the first stage of the value-enhancement programme for the Passage de la Réunion shopping centre in Mulhouse was completed, 2018 was marked by: • the completion of extension work on the Aria Parc retail park in Allonnes to house a 3,300m 2 Maison Dépôt store; • the launch of the partial reconfiguration and expansion of the Valentin shopping centre, the largest programme in the investment portfolio, with a view to opening it to the public in early 2020. The renovation of the Galerie du Palais in Tours, which will be renamed Le Passage du Palais, is scheduled to start in the first quarter of 2019. The aim is to improve the customer experience by implementing the “Synergies Centre by M.R.M.” concept which focuses on modern design, exchange services and proximity. This will also include the creation of rest and sharing areas as well as WiFi access. Phase 2 of the renovation of the Le Passage de la Réunion shopping centre in Mulhouse will include the reconfiguration of office space and the arrival of new retail units on the ground floor. Taking the new spaces to be created into account and assuming an occupancy rate of 95% for the retail property portfolio, M.R.M. has confirmed its total net annualised rent objective for its retail assets of over €10 million at the end of the value-enhancement programme expected in early 2020 (excluding acquisitions or disposals), compared with €8.2 million as of 1 January 2019. Moreover, in line with its active portfolio management strategy, M.R.M. is considering the possibility of carrying out further acquisitions or disposals.

1.6 Main risks and uncertainties facing the Company The risks and uncertainties facing the Company are, on the date of this report, those which could have a material adverse impact on the Company, its business, its position, its earnings or share price, and which are important with regard to investment decisions. The Company has assessed the risks which could have a significant negative effect on its activity, its financial situation or its results (or on its capacity to achieve its objectives), and it believes that there are no significant risks other than those presented in Section 2 of the 2018 Registration Document. The Company’s exposure to risks related to prices, credit, liquidity and cash, as well as its hedging policies, are detailed in Section 2 of the 2018 Registration Document and in the notes to the consolidated financial statements for the year ended 31 December 2018. Measures taken by the Company to reduce the financial risks from the effects of climate change by implementing a low- carbon strategy in all areas of its business are described in paragraph 4 “Information on corporate social responsibility” of this report. 1.7 Internal-control and risk-management procedures relating to the preparation and processing of accounting and financial information 1.7.1 Objectives of the internal control procedures The control procedures implemented by the M.R.M. Group (i.e. the Company and all entities it directly or indirectly controls) relating to the preparation and processing of accounting and financial information aim to: • coordinate the proper circulation of accounting, financial and management information between external parties and the managers of M.R.M. group companies; and • prevent and manage risks associated with the M.R.M. group’s activities, and the risks of errors or fraud, with particular regard to accounting and finance. Internal control cannot however provide an absolute guarantee that the Company’s objectives will be achieved.

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M.R.M. 2018 REGISTRATION DOCUMENT