MRM // 2022 Universal Registration Document

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General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2022

4.9 Derivatives

Accounting principles

The Group classifies its financial assets on the basis of the following categories: • at fair value through the statement of comprehensive income; • as loans and receivables. The classification depends on the reasons for acquiring the financial assets.

Financial assets at fair value through the statement of comprehensive income In this category, the Group classifies the derivatives to which it subscribes. Derivatives are initially recognised at fair value, with attributable transaction costs recognised in income when incurred. They are remeasured at fair value at each reporting date with any changes in fair value recognised in income under “Financial profit (loss)”. For the Group, this relates to instruments put in place to reduce interest-rate risk (solely interest rate caps – see “Derivatives” below). The fair value of these instruments at the reporting date was based on valuations supplied by the issuing financial institutions employing valuation techniques using observable market data. Loans, deposits, sureties and other non-current receivables These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets apart from those maturing over twelve months after the reporting date. These are classified as non-current assets (these assets are initially recognised at fair value and subsequently measured at amortised cost). Derivatives The Group uses derivatives to reduce its exposure to market risks stemming from interest rate fluctuations.

Derivatives are used as part of the Group’s policy for managing interest rate risk.

The Group uses derivatives to hedge its variable-rate debt against interest rate risk (cash flow hedging).

Given the nature of its debt, the Group elected not to apply hedge accounting as defined by IAS 39 and classifies financial assets and liabilities held as such as “Financial assets and liabilities at fair value through profit or loss”. All derivatives are therefore recognised in the statement of financial position at fair value, and any changes from one period to the next are recognised in the statement of comprehensive income under “Financial profit (loss)”. The valuation of such financial instruments is supplied quarterly by the issuing financial institutions employing valuation techniques using observable market data.

As of 31 December 2022, all of the Group’s debt bore interest at variable rates.

The Group has contracted financial instruments (caps) that have not been considered for accounting purposes as hedging instruments, but as financial assets recognised at fair value through profit or loss. As of 31 December 2022, 77% of the Group’s bank debt was covered by these caps. These financial instruments were initially recognised as assets at their fair values, which are provided by the issuing institutions.

M.R.M. 2022 UNIVERSAL REGISTRATION DOCUMENT

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