IBERSOL Annual Report 2018

ANNUAL REPORT 2018 Outlook In Portugal, sales growth is expected to slow down in line with what has occurred in recent months, while growth in Spain will be very moderate. Over the third quarter all units won through the 2018 tenders at the Barcelona, Gran Canária, Málaga and Alicante airports, in Spain, are ex- pected to be opened with their definitive concepts. In Angola a drop in consumption is expected, with the resulting fall in transactions. Inability to raise prices at the same rate as devaluation will result in a decrease of operational profit. As far as openings, we will try to keep to our expansion plan at the rate of previous years in Portugal, whereas in Spain we will have selective openings of Pans and Ribs. The market of home delivery operators has opened an opportunity for brands that have the capacity to serve this market but didn´t have scale to do it alone. In January 2019, IFR16 is mandatory, with a strong impact on the finan- cial statements. After reviewing all the contracts, namely the lease and concession agreements, we estimate that the recognition of the right to use the Asset and the corresponding Lease Liability will be between 260 and 290million euros, adopting the modified retrospective method. 119