MRM_REGISTRATION_DOCUMENT_2017

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Risks Factors

Risks related to the business environment

Environmental risks related to public health

The Company’s activities are subject to laws and regulations relating to the environment and public health. These laws and regulations concern in particular the ownership or use of facilities that may be a source of pollution or have an impact on public health (especially epidemics in shopping centres), the presence or use of toxic substances or materials in construction, their storage and manipulation. If the thresholds set by these regulations were to become stricter, the Company could be exposed to additional costs. Some Company properties are exposed to problems related to public health and safety, especially asbestos and legionnaires’ disease. Although the monitoring of such problems may primarily involve suppliers and subcontractors, the Company may nevertheless be held liable if it fails to meet its obligation to monitor and control the facilities it owns. Such problems could have a negative impact on the financial position, the results and the reputation of the Company, and also on its capacity to sell, let or refurbish an asset or to use it as collateral on a loan. The Company’s retail assets are subject to specific regulations covering the safety of people (“ERP” public safety regulations).

Although the managers of these assets are responsible for taking the necessary measures in relation to these regulations, any breaches of these obligations could have a negative effect on the Company’s reputation and the traffic in its shopping centres. Climate or health risks could also have consequences in terms of the number of visitors to its shopping centres, a reduction in revenue for the traders and lost rent for the Company on the site concerned, and also in terms of the Company’s image. In addition, if the sites for planned shopping centres are on a flood plain, they may be refused planning permission. Plans to extend shopping centres are also affected by the progressive introduction of RPP (Risk Prevention Plans) by local authorities. These RPPs can prevent the extension of a given shopping centre and represent a significant loss in earnings for the Company. Energy consumption, details of the policy covering the environmental impact of the Group’s business activities, and company certification initiatives are presented in the CSR Report contained in paragraph 4 of the management report appearing in section 3.6 of this Registration Document.

Dependence on third parties

The terms of the property asset management consultancy agreement between M.R.M. and its subsidiaries and CBRE Global Investors are described in section 5 “Significant Contracts” of this Registration Document and were negotiated in the interest of the Company and its subsidiaries. However, this agreement expired during the 2017 financial year.

As such, the success of the Group’s real estate operations is no longer underpinned by the efficient implementation of CBRE Global Investors services as required under the terms of the agreement.

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M.R.M. 2017 REGISTRATION DOCUMENT