MRM_REGISTRATION_DOCUMENT_2017

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General information on the issuer and its share capital

Consolidated financial statements for the year ended 31 December 2017

• Amendments to IFRS 2 – Share-based Payment (classification and measurement of share-based payment transactions) applicable as of 1 January 2018; • Amendments to IFRS 9 – Prepayment Features with Negative Compensation applicable as of 1 January 2019; • Amendments to IAS 28 – Long-term Interests in Associates and Joint Ventures applicable as of 1 January 2019; • Annual Improvements to IFRS – 2014-2016 cycle and IAS 28 applicable as of 1 January 2018; • Annual Improvements to IFRS – 2015-2017 cycle applicable as of 1 January 2019. The Group chose not to adopt the early application of these new standards and amendments. The Group assessed the impacts of the first application of these new standards and amendments, especially IFRS 9 on the recognition and measurement of financial assets and liabilities, and IFRS 15 on revenue from contracts with customers, and does not expect them to have a significant impact on its results and financial position. The statement of financial position is presented by separating current and non-current assets and liabilities: • Non-current assets consist of investment property, property, plant and equipment and intangible assets, and deposits paid; • Current assets consist of property assets held for sale, all operating and tax-related receivables, and any other assets with an initial maturity of under one year or undated; • Liabilities are classified as current or non-current depending on their due date. As a result, bank borrowings, guarantee deposits received and tax-related liabilities have been split into liabilities of under one year and liabilities of over one year, in accordance with the repayment schedules. Operating payables with a maturity of under one year constitute current liabilities. 2.2.2 Statement of consolidated comprehensive income Income and expense items recognised during the period are presented in two statements: • One statement detailing profit or loss items – the consolidated income statement; • One statement starting with profit (loss) for the period and itemising other items of comprehensive income – the consolidated comprehensive income statement. 2.2.1 Statement of consolidated financial position

The consolidated income statement thus splits out the following items: • Operating income, as defined by CNC recommendation 2009 R-03, includes recurring items of current income as well as changes in the fair value of properties, gains (losses) on disposal or the scrapping of investment properties (total or partial), and other operating income and expenses; • Financial profit (loss) is the sum of financial income and expenses, other financial income and expenses, changes in the value of financial instruments (interest rate caps and marketable securities), and discounted payables and receivables; • Net profit (loss) before tax is the sum of operating income, financial profit (loss) and other non-operating income and expenses. 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. When preparing the financial statements, the Group uses estimates and makes judgments, 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. 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 4.4. 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. As such, the valuations of the Group’s portfolio, carried out by independent appraisers, 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 Key accounting estimates and judgements

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M.R.M. 2017 REGISTRATION DOCUMENT