IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated financial analysis CAPEX In 2017 the CAPEX amounted to 33.5 million euros, corresponding to the in- vestment in: - expansion: 19 new restaurants opened (18.2 million euros); - new central production center in Portugal (2.7 million euros); - remodelling: 65 units in Portugal and Spain (10.2 million euros); - various current expenses (2.3 milion euros) Divestment occurred due to the closing of 21 units with no relevant impact on the assets value. Cash flow generated during the financial year was 67 million euros, an amount enough to ensure financial coverage of CAPEX. Net consolidated debt At year’s end net remunerated debt stood at 83.4 million euros, 26.4 million euros lower than debt at the end of 2016 (109.8 million euros). Short term bank debt consists of Commercial Paper Programme issues redeemable in 2018 and medium and long term debt that matures in 2018. The gearing ratio (net debt/(net debt + equity)), which at end 2016 was 42%, decrease to 31%. The indicator for net debt over EBITDA at end 2017 was 1.3 times (2.3 in 2016) and the EBITDA interest coverage ratio was 15 times (compared to 21 in 2016). The Group’s financial structure, continues to be very robust. 114