IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 Economic, Sectoral and Short-term Risks Business portfolio As part of strategic planning, the portfolio risks of existing businesses are identified and evaluated, as well as the most relevant new busi- nesses and projects, defining how to manage those risks. At the oper- ational level, management risks are identified and evaluated regarding the objectives of each business, and actions are planned to manage those risks, which are included and monitored in the scope of the busi- ness and functional unit plans. Operating several international brands under a franchising scheme, the Group commits to long-term contracts per restaurant that are be- ing renewed, although there is no such obligation. In particular, the res- taurants in airport concessions, attributed by tender for a determined timeframe, have no guarantee of renewal when they expire. With a view to maintaining a relationship of partnership and continuity with the franchisors, the Ibersol Group is committed to a good relationship based on transparency and mutual trust and strives to strictly fulfil all its contractual obligations and defined standards. Disposable income and purchasing power The Group’s business can be negatively affected by periods of eco- nomic recession, in particular by the deterioration in the level of house- hold consumption which, in turn, is influenced, among others, by wage policies, unemployment levels, availability of credit and interest rate levels, as well as prevailing levels of confidence and social protection. The Ibersol Group’s strategy has included and will continue to include the offer of products and services which, due to their type and price level, are accessible to society in general. Accordingly, the Group main- tains a dynamic stance which, in conjunction with the brands repre- sented and in the face of adverse socio-economic circumstances, may lead to adjustments to the portfolios of products and services made available to the market in order to guarantee a sustainable level of ac- tivity and profitability. 71