IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT Methods and assumptions: As of December 31, 2019 and 2018, the methods and main assumptions used in pre- paring the impairment tests for the Group’s goodwill were as follows: 2019 2018 Portugal Spain Spain (Vidisco) Portugal Spain Spain (Vidisco) Method used Use Value Use Value Base used* Projections with perpetuity Projections with perpetuity Used Period (years) 5 5 5 5 5 5 Growth rate in perpetuity 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Discount rate for the period (WACC) 5.60% 5.20% 8.00% 5.83% 5.33% 8.60% * The discount rate presented was calculated based on the methodology WACC (Weighted Average Cost of Capital). The remaining assumptions inherent to impairment tests are specific to each seg- ment and vary according to the Board of Directors’ future estimates. The positive evolution of the economy in the countries of the Iberian Peninsula and the consequent reduction in risk rates in countries and markets, in parallel with a reduction in interest rates, lead to a slightly lower applicable rate in 2019. Results of impairment tests: In 2019, the tests performed resulted in the need to record an impairment in the amount of 4,000,000 euros in goodwill, as follows: Year 2019 Unit Recoverable amount (use value) Assets account value Impairment losses Vidisco (UGC) 3 116 746 7 116 746 4 000 000 Total 3 116 746 7 116 746 4 000 000 255