MERLIN Properties Annual Report 2021

MERLIN Properties | 89 The reconciliation with IFRS metrics appears in the table hereafter Financial debt The financial debt is calculated as the sum of any amount owed by the Group in the short and long- term as a result of loans, credits, bonds, debentures, and in general any instrument of a similar nature The financial debt is a performance metric widely used by investors to assess the level of risk, as well as the rating agencies and creditors to evaluate the level of indebtedness The reconciliation with IFRS metrics appears in the table hereafter Percentage of debt at a fixed rate or with interest rate hedges The percentage of debt at a fixed rate or with interest rate hedges is calculated as the sum of fixed-rate financial debt and variable-rate financial debt with associated interest rate change hedging transactions in relation to the Group’s financial debt The percentage of debt at a fixed rate or with interest rate hedges is a performance metric widely used by investors to assess the level of risk, as well as the rating agencies and creditors to evaluate the company exposure to interest rate movements Given the nature of the metric, it is not possible to reconcile it with the Group financial statements but the main information is available in the consolidated financial statements Average cost of debt The average cost of debt is calculated as the ratio between the passing interest cost including derivatives corresponding to interest bearing debt and the Group’s financial debt The average cost of debt is a performance metric widely used by investors to assess the cost of borrowed funds, as well as the rating agencies and creditors to evaluate the capacity to fulfill interest obligations. Given the nature of the metric, it is not possible to reconcile it with the Group financial statements but the main information is available in the consolidated financial statements Liquidity position The liquidity position is calculated as the sum of the Group’s cash plus the amount corresponding to receivables from corporate transactions, the treasury stock position at market value, and the undrowned credit facilities available The liquidity position is a performance metric widely used by investors to assess the level of financial flexibility, as well as the rating agencies and creditors to evaluate the capacity to meet debt maturities The reconciliation with IFRS metrics appears in the table hereafter Net debt The net debt is calculated as the financial debt less cash and cash equivalents (e.g. disposal receivables or treasury stock) The net debt is a performance metric widely used by investors to assess the level of risk, as well as the rating agencies and creditors to evaluate the level of indebtedness The reconciliation with IFRS metrics appears in the table hereafter Investment in energy efficiency improvements The investment in energy efficiency improvements is defined as investments aimed at measuring, controlling, or directly or indirectly reducing, energy consumption or carbon footprint in all assets over which we have operational control This performance metric, although not widely used by investors, rating agencies or creditors, is provided to assess the level of investments in ESG (environmental, social and corporate governance) measures Given the nature of the metric, it is not possible to reconcile it with the Group financial statements, but the main information is available in the consolidated financial statements Total tax contribution Total Tax Contribution (TTC) measures the contribution made by a company or group of companies to the different governments. In general, both taxes borne, and taxes collected are imputed to each fiscal year, on a cash basis • Taxes borne are those taxes that have entailed an effective cost for the companies, such as taxes on profits, social security contributions payable by the company, and certain environmental taxes • Taxes collected are those that have been paid as a consequence of the company’s economic activity, without entailing a cost for the companies other than managing them, such as withholding taxes levied on employees This performance metric, although not widely used by investors, rating agencies or creditors, is provided to assess the amount of taxes collected or paid by the company Given the nature of the metric, it is not possible to reconcile it with the Group financial statements