MRM // 2022 Universal Registration Document

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Information on M.R.M.’s activities

Presentation of the Company

LSA ranking of french retailers shows return to normal

Visitors are definitely returning. Moreover, retailers are keen to occupy top locations in the run-up to the 2024 Olympic Games. Avenue Montaigne in the Parisian “Golden Triangle” is highly sought after. It also has a prime rent of €16,000 / m 2 . Other main streets in the “Golden Triangle” are picking up again, such as rue Pierre Charron, where the vacancy rate has fallen considerably. Creation of the Conseil national de commerce (national retail council) Olivia Grégoire, Minister for SMEs, Retail, Craft and Tourism, has announced the creation of the Conseil national du commerce (CNC) on 1 December 2022. This gives operational expression to the “Assises du commerce” of December 2021. Thierry Mandon, former State Secretary for Simplification, will take the helm. €24 million will be allocated to the CNC in 2023 “to run 10 to 30 demonstration projects”. Companies and associations may be asked to contribute. In partnership with local authorities, this body will help business stakeholders through a number of priority missions, i.e.: • represent, promote retail and draft proposals by June 2023; • help retailers to adapt their businesses to current environmental challenges. The Tascom, a tax on retail floor space that affects the entire retail sector, is apparently not mentioned. While presenting this entity, Olivia Grégoire spoke about retail zones, where she believes 72% of French people’s spending takes place and which will have to be reassessed. The CNC will be required to examine its use of agricultural and forestry land, while expediting discussions on mixed uses. This should make retail more resilient, by being better integrated within communities rather than peripheral to them. Limiting the siting of stores in the suburbs is also one of the priorities of “Action Cœur de Ville 2” for 2023-2026. It has a budget of €5 billion for medium-sized towns, of which 20% is for retail players.

LSA’s Top 100 French retailers by sales in 2021 shows a return to normal following the disruption caused by the pandemic in 2020. Nevertheless, several retailers are yet to return to their pre-crisis levels. The combined sales of the 100 largest retailers in France are expected to increase by 5.8% in 2021, to €344 billion. E.Leclerc remains comfortably in the lead with sales of €51.2 billion in 2021 from 734 points of sale (+€3.4 billion vs 2020). Two thirds of the combined sales of the list are generated by large and medium-sized stores. The E.Leclerc group, Intermarché, Carrefour Hyper, Super U, Carrefour Market, Lidl and Auchan take the top seven places respectively, and account for half of the combined sales of the 100 largest retailers. Sectors boosted by the pandemic (e-commerce, DIY/ garden, etc.) have continued their momentum. For example, Leroy Merlin, in 9 th place, achieved sales of almost €9 billion (+12.67%). However, these increases should be seen in perspective. Although the sales increases are considerable, they come on the heels of a year of decline with the pandemic; a catch-up effect is therefore underway. Factors that disrupted business in 2021 included fewer tourists for certain types of shops, such as department stores (Printemps, Galeries Lafayette, Le Bon Marché). [...] Total investment in retail since the beginning of the year stands at €5.6 billion (+76% year-on-year). €0.9 billion was invested in Q4 2022, the lowest figure for a Q4 since 2014 (-26% vs Q4 2021). The sector will account for 20% of investment in 2022 (compared to an average of 17% over the last 10 years and just 11% in 2021). The number of major transactions during the year was unprecedented. Deals for over €100 million accounted for more than 50% of the investment in retail assets. Portfolios represent a smaller proportion of investment (36%) as investors were more selective. The market was largely driven by French players (78%). Among the other main nationalities, 12% were from Canada, 5% from the UK, 3% from the US and 1% from Germany. Outstanding year for investment in 2022 despite a slowdown in Q4

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M.R.M. 2022 UNIVERSAL REGISTRATION DOCUMENT