IBERSOL | Annual Report 2021

The Ibersol Group Consumption trends An eventual inability on the part of the Group to adequately read con- sumer preferences or client’s needs, to adapt to behaviour changes, or to create or implement innovative and attractive concepts and offers in a timely and profitable way, can have a negative effect on its Opera- tional Results, financial situation and outlook. From the point of view of competition, the Group’s ability to develop and provide higher value products in competitive conditions is critical, in the current context of the restaurant sector. These developments all depend on the evolution of behaviour, that the Group can find difficult to predict and follow. In the same way, Group operations, especially in the concessions & catering segment, depend on international and regional travel, that can be negatively affected by periods of economic recession, as well as by local or global events or trends, including pandemics, growing digitalisation, remote working and weather conditions. Finally, the food sector is always exposed to epidemics, supply market distortions, availability of human resources and their possible impact on the fulfilment of contracts and on financial reports. Brand reputation The success and reputation of the Ibersol Group is closely linked to the success and reputation of the international brands that it repre- sents and develops in the markets in which it works, and that make up a large part of the Group’s activity. Through its commitment to re- specting international contracts and operational norms that, for start- ers, ensure the supply of products and services that conform to the brands’ standards, Ibersol acquires a set of opportunities and benefits, but also several challenges and responsibilities related to the commu- nication and image management of said brands, with all the positive or not so positive aspects that this can entail. In this regard, besides the natural operational and strategic accompaniment of the business and frequent interactions with partners, the Ibersol Group keeps a close eye on markets, with constant monitoring of relevant national and in- ternational clippings and, in particular, the brands affected and their 74