IBERSOL Annual Report 2018

Consolidated Financial Statements IBERSOL SGPS, S.A. ANNEX TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31 DECEMBER 2018 (Values in euros) 1. INTRODUCTION IBERSOL, SGPS, SA (“Group” or “Ibersol”) has its head office at Praça do Bom Suc- esso, Edifício Península n.º 105 a 159 – 9º, 4150-146 Porto, Portugal. Ibersol’s sub- sidiaries (jointly called the Group), operate a network of 641 units in the restaurant segment through the brands Pizza Hut, Pasta Caffé, Pans & Company, Ribs, FresCo, SantaMaria, Kentucky Fried Chicken, Burger King, O’ Kilo, Roulotte, Quiosques, Piz- za Móvil, Miit, Sol, Sugestões e Opções, Silva Carvalho Catering e Palace Catering, coffee counters and other concessions. The group has 516 units which it operates and 125 units under a franchise contract. Of this universe, 292 are headquartered in Spain, of which 175 are own establishments and 117 are franchised establishments, and 10 in Angola. As a result of the purchase of the Eat Out group (note 5.2.1) in 2016, the con- solidated statements of comprehensive income and cash flows for 2017 include 12 months of activity, against the two months in 2016, so that the general headings had significant increases. Ibersol is a public limited company listed on the Euronext of Lisbon. Ibersol SGPS parent company is ATPS - SGPS, S.A.. 2. MAIN ACCOUNTING POLICIES The main accounting policies applied in preparing these consolidated financial statements are described below. 2.1 PRESENTATION BASIS These consolidated financial statements were prepared according to the Interna- tional Financial Reporting Standards (IFRS), as applied in the European Union and in force on 01 January 2018. The consolidated financial statements have been prepared in accordance with the historical cost principle, changed to fair value in the case of derivative financial in- struments. With the exception of the initial application of new standards (section 2.2), the ac- counting policies adopted at 31 December 2018 are the same as those adopted in the preparation of the financial statements as at 31 December 2017. The preparation of the financial statements requires estimates and management judgments, as disclosed in Note 4. 212