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

Note 2

Accounting principles

The main accounting methods applied in preparing the consolidated financial statements are presented below. Unless stated otherwise, these methods have been applied consistently across all periods presented.

2.1 Going concern principle The financial statements as of 31 December 2018 were prepared on the basis of the going concern principle, taking into account the operations carried out during the year and described in Section 1.2 “Highlights of the period”. financial statements in accordance with IFRS Pursuant to Regulation (EC) No 1606/2002 of 19 July 2002, the M.R.M. group’s consolidated financial statements as of 31 December 2018 were prepared in accordance with the standards and interpretations applicable at that date published by the International Accounting Standards Board (IASB) and adopted by the European Union at the date the financial statements were approved by the Board of directors. These accounting rules, which can be accessed via the European Commission’s website (https://ec.europa.eu/info/ business-economy-euro/company-reporting-and- auditing/ company-reporting/financial-reporting_en), are the international accounting standards (IAS) and international financial reporting standards (IFRS) and the interpretations by the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC). The Group’s consolidated financial statements were prepared on the basis of the historical cost principle except for investment properties, financial instruments and assets held for sale which are measured at fair value as per IAS 40, IAS 32 & 39 and IFRS 5. Preparing the financial statements in accordance with IFRS requires certain critical accounting estimates to be made. The Group is also required to exercise its judgement when applying accounting methods. The most critical areas in terms of judgement or complexity, or those for which the assumptions and estimates are material with respect to the consolidated financial statements, are set out in note 4.4 on the fair value of investment properties. On 21 February 2019, the Board of directors authorised the publication of the Group’s consolidated financial statements as of 31 December 2018. 2.2 Presentation of the consolidated

Standards, amendments and interpretations applicable as of 1 January 2018 Standards, amendments to standards and interpretations published by the IASB and presented below are applicable for financial years beginning as of 1 January 2018: • IFRS 9 – Financial Instruments (recognition and measurement of financial assets and liabilities); • IFRS 15 - Revenue from Contracts with Customers; • 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, 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;

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M.R.M. 2018 REGISTRATION DOCUMENT