MRM // 2021 Universal Registration Document

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General information on the issuer and its share capital

Consolidated nancial statements for the nancial year ended 31 December 2021

As such, the valuations of the Group’s portfolio, carried out by an independent appraiser, could vary significantly depending on the sensitivity of the following data: • the market rental value of the Company’s portfolio; • the yield, calculated on the basis of yields used in the property market. Since these data are tied to the market, they may vary significantly in the current context. They may thus have a material upward or downward impact on the fair value measurement of the property portfolio. 2.3.1 Climate change issues The Group’s fnancial statements include issues related to climate change and sustainable development through its investment and expenditure policy to meet the applicable regulatory frameworks and the Climate Plan adopted by the Group as part of its CSR policy. Thus, annual resources have been identifed to fnance the actions to be undertaken, and the bank refnancing carried out by the Group in 2021 was an opportunity to set up a credit line partly intended to fnance investments supporting the objectives that M.R.M. is committed to in environmental matters. For the most part, climate-related issues are taken into account when determining the fair value of investment properties in accordance with IAS 40 and the valuation of the Group’s other assets through the rules provided for in IAS 36 relating to impairment tests. In particular, it was considered that there was no indication of impairment related to climate change and that the useful lives used until then for the impairment tests did not need to be reviewed.

Other items of comprehensive income include income and expenses (including adjustments and reclassifications) that are not recognised in profit or loss as required or permitted by certain IFRS.

2.3 Critical accounting estimates and judgements

When preparing the financial statements, the Group uses estimates and makes judgements, which are regularly updated and are based on historical information and other factors, in particular forecasts regarding future events deemed reasonable in light of the circumstances. 2.3.1 Fair value of the real estate portfolio The estimates carrying a substantial risk of causing a material adjustment to the carrying amount of assets and liabilities during the subsequent period primarily involve the calculation of the fair value of the property portfolio, which is notably based on the valuation of the portfolio by independent appraisers using the methods described in note 4.5. Financial market instability has resulted in a significant drop in the number of representative transactions. Transactions completed in an economic crisis may not reflect the estimates of the independent appraisers. Given the estimative nature of such valuations, it is possible that the income from the sale of certain properties may substantially differ from the valuation made, even were a sale to take place within a few months of the reporting date.

Note 3 Scope of consolidation

3.1 Consolidation methods

The financial statements of subsidiaries are fully consolidated from the date control is obtained and are no longer consolidated when control is transferred outside the Group. The consolidated financial statements include all of the subsidiary’s assets, liabilities, income and expenses. Equity distinguishes between Group share and minority shares. As of 31 December 2021, all entities within the scope of consolidation were wholly controlled by the Group and were therefore fully consolidated.

3.1.1 Subsidiaries Subsidiaries are companies controlled by the Group. A subsidiary is controlled where the Group has the power to directly or indirectly manage the financial and operating policies of the entity so as to obtain benefits from its activities. In general, subsidiaries are deemed to be controlled when M.R.M. directly or indirectly holds more than 50% of the voting rights.

M.R.M. 2021 UNIVERSAL REGISTRATION DOCUMENT

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