MRM_REGISTRATION_DOCUMENT_2017

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Risks Factors

Risks related to the business environment

as to avoid the acquisition of double voting rights that would enable SCOR SE to break through this threshold. However, the Company cannot guarantee that trading in its shares or shareholders acting in concert will not cause this 60% share capital threshold to be crossed.

Finally, the Company is exposed to the risk of future modifications in the SIIC regime or the interpretation of its provisions by the tax and accounting authorities, which could affect the activity, results and financial position of the Company.

Risks related to unfavourable developments in property regulations

Apart from the specific constraints mentioned above, in conducting its business the Company must comply with several restrictive regulations governing construction, town planning, operating retail space, the environment, public health and human safety.

Any modification making these regulations substantially more restrictive would entail significant costs for the Company particularly in terms of bringing property into regulatory compliance, which could have a significant impact on the revenue, results and financial position of the Company.

Litigation and exceptional circumstances

In the normal course of business, the Group may be involved in legal proceedings or be audited by tax or regulatory authorities. Each of these risks carries a financial risk and a reputational and/or image risk. To the best of the Company’s knowledge, at the date of filing this Registration Document, there was no significant litigation at Group level not reflected in the financial statements. Information on provisions for risks and litigation is detailed in note 4.11 to the consolidated financial statements in section 3.7 of this Registration Document. In 2014, a provision of €372 thousand for a tax dispute was recognised. Since the case was closed, this provision was reversed in 2017. At 31 December 2017, no provisions for risks and disputes were booked by the Group.

As of the date of this Registration Document, there is no other governmental, legal, or arbitrage procedure, including any procedure the Company knows of, that is pending or with which it is threatened, likely to have, or having had over the last twelve months, a significant impact on the financial position or profitability of the Company and/or the Group. However, M.R.M. cannot guarantee that it will remain uninvolved by any disputes in the future that are likely to have a material impact on the financial position or profitability of the Company and/or the Group.

Risks related to the business environment

2.2

Risk related to the property asset valuation

The Company’s property portfolio is appraised on 30 June and 31 December of each year. The contact details of the Group’s appraiser and the methodology used in its appraisals are set out in section 1.2.1 “The Group’s asset profile” of this Registration Document. The appraisals carried out on 31 December take the form of a detailed report while those carried out on 30 June are an update. M.R.M. uses the fair value accounting method for its

property assets in line with the option offered by IAS 40 which consists of recording investment property at its fair value and registering changes in value in the income statement. Positive or negative changes in the valuation of assets held by the various Group companies have a direct impact on Group income. In this respect, as of 31 December 2017, the change in the fair value of properties reduced Group income by €6,444 thousand.

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M.R.M. 2017 REGISTRATION DOCUMENT