MRM - 2020 Universal Registration Document

3

General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2020

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 2020, the net debt was €66,628 thousand, including a cash surplus of €10,213 thousand, and the fair value of properties excluding transfer taxes was €160,950 thousand. The Group’s debt to equity ratio stood at 41.4% compared with 38.6% as of 31 December 2019. 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 2020, 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 2019. As of 31 December 2019, the Group held 36,195 treasury shares. The Company acquired 103,781 and sold 94,887 treasury shares in the year through its liquidity contract with Invest Securities. As of 31 December 2020, the Group held 45,089 treasury shares. Excluding treasury shares, there were 43,622,724 shares outstanding as of 31 December 2020 compared with 43,631,618 a year earlier. Expenses related to the share capital increase In 2020, 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 out ow 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 re ects the out ow 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 out ows 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 2019, no provisions were recognised as of 31 December 2020.

90

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT