IBERSOL Annual Report 2018

Consolidated Financial Analysis CAPEX In 2018, the CAPEX reached the amount of 39 million euros, which cor- responds to investments in: - expansion: opening of 39 new restaurants (24 million euros); - remodelling: 64 units in Portugal and Spain (11 million euros); - current miscellaneous investments worth 3.5 million euros. There was also divestment, through closing of 24 units, with little impact on asset value. Operational cash flow generated during the year amounted to 44.3 mil- lion euros, which was sufficient for the financial coverage of the CAPEX. Consolidated Net Debt At the end of the year, interest bearing net debt amounted to 74.8 mil- lion euros, around 8.5 million euros lower than the debt at the end of 2017 (83.4 million euros). “Gearing” (net debt/(net debt+equity)) which stood at 31% at the end of 2017, dropped to 27%. The “Net debt to EBITDA” at the end of 2018 was 1.2 times (1.3 times in 2017) and the EBITDA ratio of interest coverage is 18 times (compared to 15 in 2017). The group’s financial structure continues to prove very solid. 116