IBERSOL | Annual Report 2020

Consolidated Financial Statements IBERSOL SGPS, S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2020 (Values in euros) 1. INTRODUCTION IBERSOL, SGPS, SA (Group or Ibersol) with head office at Praça do Bom Sucesso, Edifício Península n.º 105 a 159 – 9º, 4150-146 Porto, Portugal. Ibersol’s subsidiaries (jointly called “the Group”), operate a network of 659 units in the restaurant seg- ment through the brands Pizza Hut, Pasta Caffé, Pans & Company, Ribs, FresCo, SantaMaria, Kentucky Fried Chicken, Burger King, O’ Kilo, Quiosques, Pizza Móvil, Miit, Taco Bell, Sol, Silva Carvalho Catering e Palace Catering, coffe counters and other concessions. The group has 531 units which it operates and 92 units under a franchise contract. Of this universe, 362 are based in Portugal, of which 361 are owned and 1 franchised, and 248 are based in Spain, spread over 160 own establish- ments and 88 franchisees, and 10 in Angola and 3 in other locations. Ibersol is a public limited company listed on the Euronext of Lisbon. Ibersol SGPS parent company and ultimate parent entity is ATPS - SGPS, S.A.. COVID 19 2020 is marked by the Covid-19 pandemic outbreak that spread worldwide, stop- ping global economic activity, with profound impacts on consumer behaviours and habits. On 11 March the World Health Organization declared a pandemic associated with the spread of Covid-19, and a state of emergency was declared in all geographical locations in which the Group operates, which determined measures to contain the population and the closure of the majority of commerce and restaurants in order to halt the transmission of the virus. As a result, we closed the restaurants that were unable to continue to operate through take-away, drive thru and delivery services, even if they were below their normal potential. Gradually, at the beginning of the second semester, there was an upturn in activ- ity, adjusted to the norms that aimed to guarantee safety and reduce the risk of infection, through the application of constraints to certain businesses, in order to guarantee social distance. During this period, the Group’s activity was conditioned by the following measures: - 50% reduction in the capacity of restaurants; - limitation of the opening hours of shopping malls in the region of Lisboa and Vale do Tejo; - interruption of air corridors in England and Germany; - absence of an audience at football stadiums and no events. After the summer, there was an increase in the number of infections, which led to a second wave and the consequent worsening of the imposed conditions, with the 308