MERLIN Properties Annual Report 2021

| 57 Outlook / R+D information / others In 2022, MERLIN expects to continue with high occupancy rates and the maintenance of strong cash flow due to the long remaining lease period (5.4 years from 31 December 2021, weighted by each tenant rents) The Company also expects to continue with the rotation strategy (acquisition and disposals) of assets that fit within its investment strategy. To this end, it holds a cash & equivalents position of € 980 million. In this regard, in 2021, in accordance to our best estimates, average payment period to suppliers was 34 days. The Company uses interest rates hedging financial instruments to manage the exposure to the interest rates fluctuation in its financing. The Company Policy consists of maintaining the net noncurrent financial debt from third parties at fix rate. To achieve the target, the Company operates with interest rates swaps that hedge their corresponding loans. Regarding R+D and other innovative initiatives, MERLIN has promoted several technological projects to position the company in the vanguard of customer solutions and internal management. Among them it can be highlighted: • Special projects: - Sensorisation program for office buildings (in partnership with Signify) and shopping centers (in partnership with Vodafone). – Photovoltaic Project. - Implementation of third-party technologies (e.g. KeepEyeOnBall, Mayordomo and Fillit). - Customer experience app. • Sponsoring: agreement with Fifth Wall, the largest venture capital firm focused on the global real estate industry and property technology for the Built World.