IBERSOL Annual Report 2018

CORPORATE GOVERNANCE REPORT e) Capital risk The Company seeks to maintain a level of own capital appropriate to its principal business (cash sales and supplier credit) and ensure its conti- nuity and expansion. The balance of the capital structure is monitored based on the financial leverage ratio (defined as net remunerated debt / net remunerated debt + equity) with the aim of staying between 35% -70%. Environmental This area of risk management is coordinated by the Quality Department and its main focus is on implementing the policy deriving from the Ib- ersol Sustainability Principles which ensures that processes and proce- dures are applied in the environment. Adoption of good environmental management practices is a matter of concern to Ibersol’s Board of Directors, which promotes a responsible, proactive approach to resource and waste management. The procedures set forth in Ibersol’s Standards Manual as regards envi- ronmental matters are focused mainly on the rational use of electricity and the recycling of used oil and packaging. Legal Ibersol, its subsidiaries and the legal business inherent to the Group have a permanent legal and advisory function dedicated to their activ- ity, which functions in articulation with the other central and business functions, in order to ensure a previous protection of interests of the Group in strict compliance with its legal duties and obligations. Legal advice is also guaranteed, at national and international level, by external professionals of recognized competence. Sector-specific The recovery of private consumption, after the severe disruption seen in recent years, mainly in Portugal, will continue to affect sales in res- taurants. To mitigate the impact on its results, the company has imple- mented rigorous cost control, with monthly monitoring of market trends and subsequent reviews of resource planning, in order to mitigate the impact of the consumption reduction. Operating as it does in the food service business, the company is also subject to the risk of epidemics, disruptions in raw materials markets and changes in consumption patterns, which can have a material impact on the financial statements. 166