IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 the sale of Burger King-branded restaurants in 2022. These investments are spread across the largest banks operating in the Portuguese market and have maturities not exceeding 180 days. Whithout cash surpluses, the Group’s primary interest rate risk would stem from liabilities, in particular long-term borrowings. Loans issued at variable rates expose the Group to cash flow risk associated to the interest rate, whereas loans issued at fixed rates expose the Group to fair value risk associated to the interest rate. The Group’s policy for longer-term financing is to fix interest rates on up to 50% of the outstanding debt. Credit risk The Ibersol Group has no relevant credit risk concentrations, since its main activity is carried out with sales paid in cash or by debit or credit card. However, in relation to the Catering and Franchising businesses that represent about 5.3% of the consolidated turnover, the Group regu- larly monitors the accounts receivable, controlling the credit granted, analysing the ageing and recoverability of the receivables and the cus- tomers’ risk profile. In relation to home sales through Aggregators, the Group receives the money within eight or fifteen days. Liquidity risk The Ibersol Group manages liquidity risk by maintaining an adequate cash balance and ensuring its ability to liquidate market positions. An- nual cash flow planning is reviewed quarterly and adjusted on a daily basis. A flexible approach is adopted regarding commercial paper man- agement and the negotiation of available credit lines, in line with the underlying business dynamics. Capital risk The Ibersol Group seeks to maintain an adequate level of equity to ensure the continuity and expansion of the business. The balance of the capital structure is monitored based on the financial leverage ratio, which is in- tended to be kept within the 50% to 75% range. Exceptionally, after the sale of the Burger King business, it was below this range. 283