IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements In 2017 and 2016, impairment tests were carried out for Ibersol restaurants with evidence of impairment. From which resulted the need to register impairment in the amount of 817.744 euros and 169.635 euros in 2016 and 2017, respectively, of tangible fixed assets as follows: Ano 2016 Unit Recoverable amount (use value) Assets account value Impairment losses Pans (1 unit) - 169.966 169.966 Pasta Caffe (1 unit) - 110.000 110.000 Miit (1 unit) - 172.219 172.219 Pizza Movil (3 units) 173.077 351.244 178.167 Pans & C.ª (10 units) 584.154 770.366 187.392 Total 757.231 1.573.795 817.744 The following assumptions were used in 2016 impairment tests: Growth rate in perpetuity Portugal 2,00% (1% real + 1% price increase) Spain 2,00% (1% real + 1% price increase) Discount rate Portugal 6,70% Spain 6,20% The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Average Cost of Capital) methodology. The 2017 impairment test resulted in an impairment loss of € 169.635 relating to tangible fixed assets, as follows: Year 2017 Unit Recoverable amount (use value) Assets account value Impairment losses Pans & C.ª (1 unit) - 32.566 32.566 Pizza Movil (2 units) -126.161 137.069 137.069 Total -126.161 169.635 169.635 The following assumptions were used in 2017 impairment tests: Growth rate in perpetuity Portugal 2,00% (1% real + 2% price increase) Spain 2,00% (1% real + 2% price increase) Discount rate Portugal 6,70% Spain 6,30% 242