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

In particular, the Audit Committee hears the Statutory Auditors on: • their plan and methodology for auditing the financial statements; • the main choices made in preparing the financial statements and, where possible, alternative options to accounting choices made by the Company, indicating, in the latter case, the accounting treatment they prefer; • the examinations, verifications and tests they completed; • the main risks not reflected in the financial statements (in particular, market risks and significant off-balance sheet commitments); • any problems they encountered when performing their duties; and • any limitations placed on their audits. The Audit Committee examines the main areas of risks and uncertainties on the corporate and consolidated financial statements (including the interim statements) identified by the Statutory Auditors, their auditing approach and any difficulties encountered in the execution of their assignment. The Audit Committee also examines the methods used to ensure the reliability of the accounting and financial information provided to shareholders and the market. The examination process differs depending on whether the financial information distributed is periodic or permanent information. The examination of the methods used to ensure the reliability of the periodic financial information occurs in the context of the examination of the methods used to prepare and check the financial statements. This examination will in principle be conducted prior to any official announcement by the Company. 1.7.3 Preparing and monitoring the accounting and financial information provided to shareholders The preparation of the corporate and consolidated financial statements is entrusted to chartered accountants working closely with the Chief Executive Officer, the Chief Financial Officer, the Audit Committee and the Board of directors, and the main options to be adopted in terms of the choice of accounting methods are discussed in advance by the chartered accountants, the Statutory Auditors, the Chief Executive Officer, the Finance Department, the Audit Committee and, if necessary, the Board of directors. The preparation of the accounting and financial information distributed to shareholders relies on the collaboration between the Chief Executive Officer, the Chief Financial Officer, the Audit Committee, the Board of directors (if necessary), and the external parties involved (chartered accountants and Statutory Auditors).

The property managers The property managers manage the receipts and expenditures relating to the properties, in accordance with the accounting regulations in force in France. They are responsible for the electronic recording of payments, payment reminders, settlements, disputes and their results, so that the Head of Asset Management can have access to clear and up-to- date information. Property managers are also responsible for property and facilities management of the Company’s buildings. In particular, they draw up budgets for operating charges and works and rebill these to tenants. The agreements between the property managers and the Group subsidiaries provide for and organise the information and reporting obligations to which the property managers must adhere in performing their duties. Whenever necessary, the property managers provide the Head of Asset Management and the Finance Department with the information required to prepare tax and social security returns. Every month, the information required to ensure that the accounting records are properly maintained is sent to the Finance Department as soon as possible. This information is reviewed by the Finance Department, which may approach the property managers directly for further details or clarifications. The Audit Committee The Audit Committee monitors the processes used to prepare the corporate and consolidated financial statements and assesses the validity of the methods selected to process significant transactions. It reports to the Board of directors. This work is performed in conjunction with the work of the Statutory Auditors. It focuses primarily on the methods used to establish and examine the financial statements. To perform its duties, the Audit Committee mainly: • consults with any persons of its choice, in particular the Chief Executive Officer, the Chief Financial Officer, the Head of Asset Management and the Statutory Auditors; • interviews accounting managers or property appraisers within the Group; • checks the existence of internal procedures used to maintain, prepare and check the financial statements and the existence of internal control systems and risk management systems; and • verifies significant transactions when these could give rise to a conflict of interest.

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M.R.M. 2018 REGISTRATION DOCUMENT