MRM - 2019 Universal Registration Document

3

General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2019

The main changes resulting from the first application of IFRS 16 - Leases and the possible impacts it could have on the Group’s financial statements are as follows: • under IFRS 16, tenants must recognise all leases on the balance sheet, i.e. they must record (i) a right-of-use asset consisting of the asset leased, and (ii) a lease liability consisting of the lease payments and other payments payable during the lease term. Accordingly, the Group has recognised two leases and estimated each of their probable terms. Since the impact is not material (opening impact of €3,000 recognised under shareholders’ equity, right-of-use asset of €132,000 and lease liability of €135,000 recognised at 31 December 2019, depreciation of €34,000 and interest expenses of €1,000 recognised for the 2019 financial year) the Group did not restate comparative figures for 2018. The following standards and amendments adopted by the European Union as of 31 December 2019 but with a subsequent effective date of application were not adopted in advance: • amendments to IAS 1 and IAS 8 - Definition of Material, effective from 1 January 2020; • amendments to the conceptual framework of the IFRS standards, applicable as of 1 January 2020. Texts not adopted by the European Union as of 31 December 2019: Subject to their final approval by the European Union, the standards, amendments to standards and interpretations published by IASB and presented below are applicable according to IASB as follows: • amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, effective date deferred; • amendments to IFRS 3 - Definition of a Business, effective from 1 January 2020; • amendments to IAS 1 and IAS 8 - Definition of Material, effective from 1 January 2020; • amendments to IFRS 9, IAS 39 and IFRS 7 - linked to the Interest Rate Benchmark Reform, effective from 1 January 2020; • amendments to the conceptual framework of the IFRS standards, applicable as of 1 January 2020. Standards, amendments and interpretations not mandatory as of 1 January 2019 Texts adopted by the European Union as of 31 December 2019:

The Group did not opt for the early adoption of these amendments, which will have no material impact on its results and financial position.

2.2.1 Statement of consolidated financial position

The statement of financial position is presented by separating current and non-current assets and liabilities: • non-current assets consist of investment properties, right- of-use assets, property, plant and equipment and intangible assets, and deposits paid; • current assets consist of property assets held for sale, all operating and tax-related receivables, and any other assets with an initial maturity of under one year or undated; • liabilities are classified as current or non-current depending on their due date. As a result, bank borrowings, guarantee deposits received and tax-related liabilities have been split into liabilities of under one year and liabilities of over one year, in accordance with the repayment schedules. Operating payables with a maturity of under one year constitute current liabilities. 2.2.2 Statement of consolidated comprehensive income Income and expense items recognised during the period are presented in two statements: • one statement detailing profit or loss items – the consolidated income statement; • one statement starting with net income and itemising other items of comprehensive income – the consolidated comprehensive income statement. The consolidated income statement thus splits out the following items: • operating income, as defined by CNC Recommendation No. 2009 R-03, includes recurring items of current income as well as changes in the fair value of properties, gains (losses) on disposal or the scrapping of investment properties (total or partial), and other operating income and expenses; • financial profit (loss) is the sum of financial income and expenses, other financial income and expenses, changes in the value of financial instruments (interest rate caps and marketable securities), and discounted payables and receivables; • net income before tax is the sum of operating income, financial profit (loss) and other non-operating income and expenses.

72

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT