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

• IAS 40 - Transfers of Investment Property; • amendments to IFRS 2 – Share-based Payment (classification and measurement of share-based payment transactions); • annual improvements to IFRS – 2014-2016 cycle – IFRS 1 and IAS 28. These amendments did not have a material impact on the Group’s results and financial position. IFRS 9 on financial instruments replaces IAS 39, applicable until 31 December 2017. The main changes resulting from this new standard and the possible impacts it could have on the Group’s financial statements are as follows: • impairment of trade and financial receivables: IFRS 9 introduces an impairment model based on expected loss instead of recognised loss as under IAS 39. To this end, the Group applies an average depreciation rate based on the history of healthy receivables and doubtful debts that have become irrecoverable over the last five financial years to the invoices to be established. An additional impairment loss is recognised when the calculation involving the historical average depreciation rate is greater than the impairment recognised in accordance with the accounting principle described in Note 4.6 of the Appendix to the consolidated financial statements, for each asset class previously mentioned. Since the overall impacts are not material (opening impact of €26 thousand recognised under shareholders’equity, and the reversal of €15 thousand in 2018) the Group did not restate comparative figures for 2017; • renegotiation of financial liabilities: IFRS 9 modifies the accounting treatment applicable to financial debt modification, exchange and restructuring operations that do not pre-empt derecognition. Given the absence of historical debt that was subject to restructuring in the financial statements as of 31 December 2018, the Group has not identified any impact relating to the implementation of this part of the standard. Texts adopted by the European Union as of 31 December 2018 The following standards and amendments adopted by the European Union as of 31 December 2018 but with a subsequent effective date of application were not adopted in advance: • IFRS 16 – Leases: applicable as of 1 January 2019; • amendments to IFRS 9 – Prepayment Features with Negative Compensation: applicable as of 1 January 2019; • IFRIC 23 - Uncertain Income Tax Treatments: applicable as of 1 January 2019. Standards, amendments and interpretations not mandatory as of 1 January 2018

Texts not adopted by the European Union as of 31 December 2018 Subject to their final approval by the European Union, standards, amendments to standards and interpretations published by the IASB and presented below are applicable according to the IASB as follows: • amendments to IAS 28 – Long-term Interests in Associates and Joint Ventures applicable as of 1 January 2019; • amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture date of adoption postponed; • amendments to IAS 19 - Employee Benefits, in connection with accounting for plan amendments, curtailments and settlement: applicable as of 1 January 2019; • amendments to IFRS 3 - Definition of a Business: applicable as of 1 January 2020; • amendments to IAS 1 and IAS 8 – The definition of material: applicable as of 1 January 2020; • amendment to the conceptual framework of the IFRS standards: applicable as of 1 January 2020; • Annual improvements to IFRS – 2015-2017 cycle: applicable as of 1 January 2019. The Group did not opt for the early adoption of these amendments, they will have no material impact on its results and financial position. 2.2.1 Changes in scope In 2018, there were no changes in M.R.M.’s scope of consolidation. 2.2.2 Consolidated income statement Consolidated gross rental revenues from properties totalled €9,531 thousand, reflecting rents and other rental income in the Group’s portfolio, a decrease of 14.9% compared with 2017. Gross rental revenues decreased 3.0% compared with 2017 on a like-for-like basis. Unrecovered property expenses were down 15.1% compared with 2017 and amounted to €2,867 thousand, resulting in net rental revenues of €6,664 thousand. Net recurring operating expenses, amounting to €3,001 thousand in 2018, were down 22.0% compared with 2017 and comprised operating expenses of €2,455 thousand (vs €2,758 thousand in 2017, a decrease of 11.0%), net provisions of €230 thousand (vs a net provision reversal of €337 thousand in 2017) and other net operating expenses of €316 thousand (vs €1,428 thousand in 2017).

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M.R.M. 2018 REGISTRATION DOCUMENT