IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 Sectorial and Circumstantial Risks Business Portfolio In terms of strategic planning, existing business portfolio risks are evaluated and identified, new businesses and more relevant projects are evaluated, and the management strategies of those risks are de- fined. In operational terms the management risks of the goals of each business are identified and evaluated, and steps to manage them are planned, which are then included and monitored within the scope of the businesses and the working units. When exploring different international brands through franchise, the Group celebrates long-term contracts that have been renewed, even though there is no obligation to do so. In particular, there is no guar- antee that restaurants in airport concessions, which are attributed through tenders for a certain period, will have their leases renewed when these expire. With the aim of keeping up partnership and conti- nuity relations with franchisers, the Ibersol Group invests in good rela- tionships, based on transparency and mutual trust, and seeks to thor- oughly fulfil all its contractual obligations and defined standards, with a view to operational excellence. Available income The Group’s businesses can be negatively affected by periods of eco- nomic recession, especially through the deterioration of family con- sumption levels that, in turn, are influenced, among others, by current salary policies, unemployment levels, available credit and interest rates, as well as confidence levels and social security measures. The Ibersol Group’s strategy has included, and will continue to include, products and services that, due to their type and price level, are accessible to society at large. Therefore, the Group maintains a dynamic posture that, in tandem with the represented brands, and faced with adverse social and economic circumstances, can lead to adjustments in prod- uct portfolios and services provided to the market, so as to ensure a level of activity and sustainable profitability. 73