IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 to the risk of the fair value associated to the interest rate. With the current level of interest rates, the Group’s policy on longer- term loans is to fix interest rates of up to 50% of the amount due. Credit risk The Ibersol Group’s main activity is carried out with sales paid by cash or debit or credit card, so there are no relevant credit risk concen- trations. In home sales through Aggregators, these collect from the clients and transfer the money by weekly summary within eight or fifteen days. In relation to customers, the risk is limited to Catering and Franchising businesses that represent about 7.3% of consolidated turnover. The Group regularly monitors its accounts receivable to: • Control the credit granted to customers; • Analyse the ageing and recoverability of receivables; • Analyse the risk profile of clients. Liquidity risk Liquidity risk management implies maintaining sufficient cash and bank deposits, the viability of consolidating floating debt through an adequate amount of credit facilities and the ability to liquidate market positions. Treasury needs are based on an annual plan, which is re- viewed quarterly and adjusted daily. In accordance with the dynamics of the underlying businesses, the Ibersol Group has been carrying out a flexible management of commercial paper and permanently negoti- ating the available credit lines. Capital risk The Ibersol Group seeks to maintain a level of equity capital that is ap- propriate to the characteristics of the main business (cash sales and supplier credit) and to ensure continuity and expansion. The balance of the capital structure is monitored based on the financial leverage ratio (defined as: net interest-bearing debt / net interest-bearing debt + equity), aiming to place it in the 50%-75% range. 69