IBERSOL | Integrated Management Report 2022

STRATEGIC FRAMEWORK Consumption habits The potential inability of the Group and its brands to adequately understand consumer preferences or customer needs, to adapt to their changing behaviour in a timely manner, or to implement innovative and attractive offers and concepts in a cost-effective manner, may negatively affect its operating results, financial condition, and prospects. On the other hand, the Group’s ability to develop and offer higher value products under competitive conditions is a critical capacity in the current context of the restaurant sector, and these developments are dependent on behavioural evolutions, which can be difficult to predict and monitor. However, the Ibersol Group maintains a close relationship with some of the world’s leading brands, makes permanent efforts to monitor consumption trends in different markets, participates in national and international forums for innovation in the sector, and has its own resources permanently allocated to developing newproducts, both for its own brands and to complement the standard offer of the brands it represents. Commodity prices Most commodity prices, especially soft commodities (e.g., coffee, co- coa, sugar, corn, wheat, soybeans, fruits, livestock, etc.) are expected to retreat in 2023 in the face of a significant slowdown in global de- mand growth, but a limited increase in supply means prices will re- main high. Prices for energy products, most base metals and several agricultural products rose in 2021 and again in February 2022 follow- ing the start of the war in Ukraine. While commodity prices are not expected to be the main cause of rising headline inflation in 2023, as they were in 2021-22, several relevant sources of risk remain, notably China (geopolitical positioning), climate change and the continuation of the conflict in Ukraine. Most notably, the war in Ukraine will continue to affect agricultural commodity markets in 2023. Global supply chain disruptions resulting from the Covid-19 pandemic will decrease by 2023. Together with increased production volumes of 72