IBERSOL | 2019 Annual Report

Consolidated Financial Statements The following table shows the Group financial liabilities (relevant items), considering contractual cash-flows: to December 2020 from December 2020 to 2039 Bank loans and overdrafts 46 399 315 74 763 367 Liability for leases 53 777 115 286 206 086 Other non-current liabilities - 6 146 Accounts payable to suppliers and accrued costs 67 704 058 - Other current liabilities 4 576 409 - Total 172 456 898 360 975 599 3.2. CAPITAL RISK a) Gearing ratio The company aims to maintain an equity level suitable to the characteristics of its main business (cash sales and credit from suppliers) and to ensure continuity and expansion. The capital structure balance is monitored based on the gearing ratio (defined as: net remunerated debt / net remunerated debt + equity) in order to pla- ce the ratio within a 35%-70% interval. On 31st December 2019 and 2018 the gearing ratio was of 26% and 27%, respectively, as follows: Dec/2019 (w/ IFRS 16) 31/12/2019 (n/a IFRS 16) Dec/2018 Liability for leases 339 983 201 - - Bank loans 121 162 682 132 095 130 132 143 772 Other financial assets -15 626 772 -15 626 772 -19 608 860 Cash and bank deposits -38 424 757 -38 424 757 -37 931 124 Net indebtedness 407 094 354 78 043 602 74 603 788 Equity 214 228 476 223 729 770 203 170 093 Total capital 621 322 830 301 773 371 277 773 881 Gearing ratio 66% 26% 27% 238