MRM - 2019 Universal Registration Document

3

General information on the issuer and its share capital Management report for the financial year ended 31 December 2019

Beyond that, M.R.M plans to continue letting its vacant premises. Taking the newly created spaces into account and assuming an occupancy rate of 95% for the portfolio, M.R.M. has confirmed its total annualised net rent target for its retail assets of over €10 million (excluding acquisitions or disposals), compared with €8.5 million as of 1 January 2020. M.R.M. will continue to look at trends in the rental and investment markets, with a view to carrying out further acquisitions, and launching portfolio rotation through asset 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 significant 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 Chapter 2 of the 2019 Universal Registration Document. The Company’s exposure to risks related to prices, credit, liquidity and cash, as well as its hedging policies, are detailed in the notes to the consolidated financial statements for the financial year ended 31 December 2019. 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 Section 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.

1.7.2 Internal control parties

The Chief Executive Officer The Chief Executive Officer is responsible for the communication and coordination of financial information between the various parties involved in pursuit of the defined strategy. This person ensures the quality of the internal control and risk management systems. The Chief Executive Officer, the Chairman of the Board of directors and the Board of directors oversee the companies in the M.R.M. group in general and make sure that their legal, contractual, financial, fiscal and administrative obligations are fulfilled so that the Company is managed in the best and most efficient way. In the proper execution of his duties the Chief Executive Officer makes sure he is informed by the Chief Financial Officer and the Head of Asset Management about all matters relating to the Group’s buildings, takes any steps necessary to collect such information, approves the decisions taken, and alerts the competent bodies of the potentially unfavourable consequences of decisions left unresolved. The Chief Executive Officer oversees the actions of the Chief Financial Officer and the Head of Asset Management and is responsible for preparing and presenting the general budget and business plan setting out the objectives and strategy for the short and medium term. The Chief Financial Officer Among other things the Chief Financial Officer is responsible for: • gathering operational, financial and accounting information to prepare the activity reports and annual, interim, quarterly and monthly regulatory information, if necessary; • coordinating and supervising the work of the different parties involved (e.g. property managers, chartered accountants, lawyers, consultants) with a view to establishing said reports; • supervising the preparation of the corporate and consolidated financial statements, within the given deadlines, in accordance with the laws and accounting standards in force, in particular with IFRS; • ensuring that the Company’s financial and accounting information is comprehensive and consistent; • establishing and monitoring the Group’s bank financing;

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT

51