MRM_REGISTRATION_DOCUMENT_2017

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General information on the issuer and its share capital Management report for the year ended 31 December 2017

1.7 Internal control and risk management procedures relating to the preparation and processing of accounting and financial information 1.7.1 Objectives of internal control procedures The control procedures implemented by the M.R.M. group (i.e. the Company and all entities it directly or indirectly controls) relating to the preparation and processing of accounting and financial information aim to: • Coordinate the proper circulation of accounting, financial and management information between external parties and the managers of M.R.M. group companies; and • Prevent and manage risks associated with the M.R.M. group’s activities, and the risks of errors or fraud, with particular regard to accounting and finance. Internal control cannot however provide an absolute guarantee that the Company’s objectives will be achieved. The Chief Executive Officer The Chief Executive Officer is responsible for the communication and coordination of financial information between the various parties involved in pursuit of the defined strategy. This person ensures the quality of the internal control and risk management systems. The Chief Executive Officer, the Chairman of the Board of directors and the Board of directors oversee the companies in the M.R.M. group in general and make sure that their legal, contractual, financial, fiscal and administrative obligations are fulfilled so that the Company is managed in the best and most efficient way. In the proper execution of his duties the Chief Executive Officer makes sure he is informed by the Chief Financial Officer and the Head of Asset Management about all matters relating to the Group’s buildings, takes any steps necessary to collect such information, approves the decisions taken, and alerts the competent bodies of the potentially unfavourable consequences of decisions left unresolved. The Chief Executive Officer oversees the actions of the Chief Financial Officer and the Head of Asset Management and is responsible for preparing and presenting the general budget and business plan setting out the objectives and strategy for the short and medium term. 1.7.2 Internal control parties

M.R.M. also plans to undertake three new projects in 2018: the extension of the École-Valentin shopping mall and the Aria Parc retail park and the renovation of Galerie du Palais in Tours. Altogether, the remaining budget of €21.4 million should be invested in 2018. Thus, all value-enhancement programmes identified for retail assets should, barring unforeseen events, be launched in 2018. Taking the new spaces to be created (1) into account and assuming an occupancy rate of 95% for the retail property portfolio, M.R.M. has set itself the target of a total net annualised rent for these assets of over €10 million at the end of the value-enhancement programme expected in late 2019 (excluding acquisitions or disposals), compared with €7.4 million as of 1 January 2018. Moreover, in line with its active portfolio management strategy, M.R.M. is considering the possibility of carrying out further acquisitions or disposals. 1.6 Main risks and uncertainties facing the Company The risks and uncertainties facing the Company are, on the date of this report, those which could have a material adverse impact on the Company, its business, its position, its earnings or share price, and which are important with regard to investment decisions. The Company has assessed the risks which could have a significant negative effect on its activity, its financial situation or its results (or on its capacity to achieve its objectives) and it believes that there are no significant risks other than those presented in section 2 of the 2017 Registration Document. The Company’s exposure to risks related to prices, credit, liquidity and cash, as well as its hedging policies, are detailed in section 2 of the 2017 Registration Document and in the notes to the consolidated financial statements for the year ended 31 December 2017. Measures taken by the Company to reduce the financial risks from the effects of climate change by implementing a low- carbon strategy in all areas of its business are described in paragraph 4 “Information on corporate social responsibility” of this report. 1.5 Major subsequent events None.

(1) At the Valentin shopping centre and Aria Parc.

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M.R.M. 2017 REGISTRATION DOCUMENT