MRM - 2020 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 2020

The main accounting methods used are as follows:

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 fnancial 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. 3.2 The Company has entered into an agreement on current account advances with its subsidiaries. These advances are classified as assets under “Other receivables”. The current accounts in credit in M.R.M.’s books at the reporting date are classified as liabilities under “Loans and other borrowings”. At each reporting date, where the net equity of subsidiaries owned by the Company is negative, the current accounts are impaired up to the amount of the share of the net equity owned. Marketable securities and treasury shares The gross amount represents the acquisition cost excluding ancillary expenses. When the inventory value falls below the gross value, the difference is impaired. The inventory value of treasury shares is based on the average share price over the month preceding the end of the reporting period. The gross amount of other long-term securities and investment securities represents the acquisition cost excluding ancillary expenses. 5. 6. Receivables and payables Receivables and payables are stated at face value. As regards receivables, the risk of non-collection is assessed at each reporting date and an impairment loss recognised where the inventory value falls below the book value. Provisions The provisions are valued in accordance with the provisions of CRC Regulation No. 2000-06. Provisions have in particular been funded for the negative net equity of property holding companies owned, less provisions already recognised on the asset side on current accounts. 7. 4. C urrent accounts related to equity investments

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A doption of the status as a listed property investment company ( société d’investissement immobilier cotée – SIIC)

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; • 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. Fixed assets The Company applies CRC Regulations 2002-10 of 12 December 2002 and 2004-06 of 23 November 2006 on defining, recognising, measuring, depreciating, amortising and impairing assets. Equity securities The equity investments are recognised in 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 2. 3. Financial assets 3.1

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT

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