MRM - 2019 Universal Registration Document

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General information on the issuer and its share capital

Corporate financial statements for the financial year ended 31 December 2019

Simplification of the Group ownership structure In 2019, Noratlas, a non-trading property company ( société civile immobilière ) wholly owned by M.R.M., sold the last of its buildings. It underwent dissolution without liquidation through the universal transfer of its assets to M.R.M., thus simplifying the Group’s ownership structure and narrowing its scope of consolidation, which now comprises six instead of seven entities. Accounting policies and methods (French Commercial Code - Article R.123-196-1 & 2; PCG (French GAAP) Article 531–1/1) The financial statements are prepared in accordance with Articles L.123-12 to L.123-28 of the French Commercial Code, the ANC Regulation on the French GAAP ( Plan comptable général – PCG), and the regulations of the French Accounting Regulations Committee ( Comité de la réglementation comptable – CRC). General accounting conventions were applied in accordance with the principle of prudence and the following basic assumptions: • consistency of accounting methods; • matching principle; • going concern. The recommendations set out in the Professional Guide for companies in the sector have been observed. The financial year covers a period of twelve months from 1 January to 31 December 2019. Accounting items are measured using the historical cost method. The notes or tables provided below form an integral part of the annual financial statements. The main accounting methods used are as follows: On 31 January 2008, the Company opted for SIIC (French real estate investment trust) status with effect from 1 January 2008. The SIIC regime, introduced by Article 11 of the 2003 French Finance Act, 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: • 95% of profits from the letting of buildings; • 70% of capital gains from the disposal of buildings; 1. Adoption of the status as a listed property investment company ( société d’investissement immobilier cotée – SIIC)

• 100% of dividends paid by subsidiaries having also opted for the SIIC tax regime. 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. Non-current assets The Company applies CRC Regulations Nos. 2002-10 of 12 December 2002 and 2004-06 of 23 November 2006 on defining, recognising, measuring, depreciating, amortising and impairing assets. Equity investments The equity investments are recognised on the statement of financial position at cost in accordance with CRC Regulation No. 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. The majority of the equity investments held by M.R.M. are property companies owning one or more 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 the 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. Other non-current financial assets These correspond to treasury shares held by M.R.M. outside the liquidity agreement. The treasury shares acquired within the framework of the liquidity agreement are presented as marketable securities. 2. 3. Non-current financial assets 3.1 3.2

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Current accounts related to equity investments

The Company has entered into an agreement on current account advances with its subsidiaries. These advances are classified as assets under “Other receivables”.

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M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT