IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 Even with reduced use of the group has contracted a significant amount of short-term lines. On December 31, 2017, the use of short term liquidity cash flow support was about 1%. Investments in term deposits and other application of 38 million euros, match 27% of liabilities paid. The following table shows the Group financial liabilities (relevant items), considering con- tractual cash-flows: to December 2018 from December 2018 to 2028 Bank loans and overdrafts 33.326.982 107.687.759 Other non-current liabilities - 179.192 Accounts payable to suppliers and accrued costs 58.946.853 - Other current liabilities 9.900.301 - Interest 2.058.064 3.604.755 Total 104.232.200 111.471.706 3.2 CAPITAL RISK a) Gearing ratio The company aims to maintain an equity level suitable to the characteristics of its main busi- ness (cash sales and credit from suppliers) and to ensure continuity and expansion. The capital structure balance is monitored based on the gearing ratio (defined as: net remunerated debt / net remunerated debt + equity) in order to place the ratio within a 35%-70% interval. On 31st December 2017 and 2016 the gearing ratio was of 31% and 42%, respectively, as fol- lows: Dec. 2017 Dec. 2016 Bank loans 141.014.741 166.791.662 Other financial assets -22.986.661 -17.480.341 Cash and bank deposits -34.902.883 -39.588.532 Net indebtedness 83.125.197 109.722.788 Equity 188.620.193 151.924.328 Total capital 271.745.390 261.647.116 Gearing ratio 31% 42% 229