MRM - 2020 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 2020

Changes in properties held for sale

12/31/2020

(in thousands of euros)

NET BALANCE AT OPENING

180

Works

- -

Change in fair value

Asset disposals

-180

NET BALANCE AT CLOSING

-

As of 31 December 2020, the Group no longer carries assets held for sale.

4.7 Trade receivables and related accounts

Accounting principles

Receivables are stated at fair value on initial recognition, and subsequently at amortised cost less any impairment losses.

Impairment of trade receivables is recognised when there are objective indications that the Group will not be able to recover the full amounts due as per the initial terms of the transaction. Serious financial difficulties faced by the debtor, the likelihood of bankruptcy or financial restructuring of the debtor and payment default are indicators of the impairment of a receivable. In general, the Group writes down tenant receivables older than six months by applying an impairment rate of up to 100% (depending on the risk estimated by the Group) of the pre-tax amount of the receivable minus the guarantee deposit which is kept when applicable. The Group uses the expected loss impairment model introduced in IFRS 9 by applying an average depreciation rate based on the history of healthy receivables and doubtful debts that have become irrecoverable over the last five financial years to the invoices to be established. An additional impairment loss is recognised when the calculation involving the historical average depreciation rate is greater than the impairment recognised in accordance with the accounting principle described above, for each asset class previously mentioned.

The amount of impairment is recognised in income under “Provisions and impairment”.

Trade receivables break down as follows:

12/31/2020

12/31/2019

(in thousands of euros)

Total gross trade receivables Impairment of trade receivables

5,972

6,631

-2,187 3,785

-2,961 3,670

TOTAL NET TRADE RECEIVABLES

Invoices pending

-160

-253

Rent-free periods staggered over the lease term TOTAL NET TRADE RECEIVABLES DUE

-1,774 1,851

-1,364 2,071

As of 31 December 2020, the item “Impairment on trade receivables” included provisions for impairment on trade receivables reflecting: • rent waivers, for the frst lockdown period, without compensatory measures modifying the terms of the lease within the meaning of IFRS 16, for which the protocol is not signed, for €(171) thousand; • the rent waivers that M.R.M. estimates it will grant for the second lockdown period, for €(402) thousand. See section 2.2. “Accounting treatment of support measures granted to tenants in the context of the health crisis”.

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M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT