IBERSOL | Integrated Management Report - 2024

CORPORATE GOVERNANCE REPORT Economic, Sectoral and Short-term Risks Business portfolio The Group undertakes strategic and operational risk management of its business portfolio, including the assessment of new projects and actions to manage specific risks. It operates international brands under a franchising scheme, with long-term renewable contracts. On the other hand, Travel’s business depends on getting concessionary spaces through participation in public tenders where restaurants can be set up, meaning that the presence in these locations is not guaranteed. The Group is committed to maintaining good relationships with franchisors to ensure continuity and to comply with contractual obligations and defined standards. Strengthening its brand portfolio is also important to ensure a successful share of the Travel business’ tenders. Disposable income and purchasing power The Group’s business can be negatively affected by economic downturns due to a decrease in household consumption, which is influenced by wage policies, unemployment, credit, interest rates, confidence, and social protection. The Group offers products and services accessible to the public in general and adjusts the portfolio in accordance with adverse socioeconomic conjunctures, ensuring sustainable activity and profitability.s. Consumption habits Another potential risk for the Ibersol Group and the brands it represents is the possible inability to understand consumers’ preferences and needs and adapt to behavioral changes in time to offer innovative and attrac- tive products and concepts in a profitable manner. The ability to de- velop higher value products under competitive conditions is critical for the restaurant sector, but behavioral evolutions are difficult to predict. However, the Ibersol Group maintains a close relationship with global brands, monitors consumption trends in different markets, participates in innovation forums and has resources allocated to the development of new products. 284