IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 Credit risk The Ibersol Group’s main activity is paid for in cash, or credit, or debit cards, so there are no relevant concentrations of credit risk. In home delivery sales, through Aggregators, it is these who charge clients and transfer money according to weekly summaries, within one or two weeks. Regarding clients, the risk is limited to the Catering and Franchise busi- nesses, which represent around 3.8% of consolidated business volume. The Group has taken to monitoring payments due more regularly, with the aim of: • Controlling credit granted to clients; • Analysing the maturity and recoverability of the values due; • Assessing client profile risks. Liquidity risk Management of liquidity risk entails keeping a sufficient value in cash and bank deposits, the viability of consolidating the floating debt through an adequate amount of credit facilities, and the ability to liq- uidate market positions. Management of treasury needs is carried out based on annual planning, which is reviewed quarterly and adjusted daily. In line with underlying business dynamics, the Ibersol Group has been conducting a flexible management of the commercial paper and negotiation of readily available credit lines. Capital risk The Ibersol Group seeks to maintain a level of own capital adequate to the characteristics of its main business (cash sales and suppliers’ credit), and to ensure continuity and expansion. Balance of the capital structure is monitored based on the financial leverage ratio (defined as: net remunerated debt/net remunerated debt + own capital), with the goal of fixing it in the 50% - 75% bracket. 71