MRM - 2019 Universal Registration Document

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General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2019

Equity management The Group’s policy is to maintain a solid capital base so as to retain the trust of investors, creditors and the markets, and to sustain future growth. The Board of directors keeps a close watch on the return on equity, defined as operating income divided by total equity. The Group’s debt to equity ratio represents net debt expressed as a percentage of the fair value of its properties excluding transfer taxes. As of 31 December 2019, the net debt was €64,881,000, including a cash surplus of €12,266,000, and the fair value of properties excluding transfer taxes was €168,070,000. The Group’s debt to equity ratio stood at 38.6% compared with 36.8% as of 31 December 2018. The Company concluded a liquidity agreement with Invest Securities under which it occasionally buys treasury shares on the market. The frequency of these purchases depends on share prices and trading activity.

Information on the number of shares outstanding As of 31 December 2019, the number of shares making up the share capital was 43,667,813 with a par value of €1 per share, unchanged from 31 December 2018. As of 31 December 2018, the Group held 70,508 treasury shares. The Company acquired 28,665 and sold 62,978 treasury shares in the year through its liquidity contract with Invest Securities. As of 31 December 2019, the Group held 36,195 treasury shares. Excluding treasury shares, there were 43,631,618 shares outstanding as of 31 December 2019 compared with 43,597,305 a year earlier. Expenses related to the share capital increase In 2019, no expenses related to a share capital increase were recorded directly as a reduction in equity.

4.12 Provisions

Accounting principles

A provision is booked when the Group has an obligation to a third party arising from a past event, settlement of which is likely or certain to result in an outflow of resources to this third party and this can be reliably estimated. This obligation may be legal, regulatory or contractual. It may also result from the entity’s past practices, its stated policy or sufficiently overt public commitments that have created a legitimate expectation amongst the relevant third parties that it will assume certain responsibilities. The estimated amount of a provision reflects the outflow of resources the Group would incur to settle its obligation. It is estimated on the basis of information known at the date of issue of the financial statements. Where the time value effect is material, the amount of the provision is determined by discounting estimated resource outflows at a rate based on a pre-tax risk-free market interest rate, plus – where applicable – risks specific to the relevant liability.

As for 31 December 2018, no provisions were recognised at 31 December 2019.

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M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT