IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 The acquisition by concentration of business activities corresponds to the tangible fixed assets acquired as part of the Medfood business (note 6.1). The investment in 2023 of around 29.3 million euros essentially refers to the opening of 10 KFC, 5 Taco Bell, 3 Pizza Hut, 1 Pans and the new concessions for the Airports of Spain, Madrid, Malaga, Lanzarote and Tenerife. The amount of currency conversion in 2023 resulted from the sharp devaluation of the kwanza in that year. In 2024, the investment of 26 million euros relates mainly to 5 Taco Bell, 3 Pans, 2 Pizza Hut, 12 KFC, 1 Ribs and 1 Pret a Manger, in Portugal and Spain, 1 KFC and 1 Pizza Hut in Angola, a brewery at Madeira Airport and the investment in the new concessions at Spanish Airports, 6 Pret a Manger, 1 KFC, 1 Pizza Hut and 7 other brands. The value of tangible assets in progress at 31 December 2024, in the amount of 2.6 million euros, refers to investments made for future openings. 6.5. Right of use assets Accounting policies Initial recognition and measurement A lease is defined as a contract or part of a contract that conveys the right to use an asset for a certain period of time in exchange for consideration. The Group’s leases respect, fundamentally, lease agreements for stores and commercial spaces and for the equipment used in these spaces. The Group is also a lessee in con- tracts for the leasing of vehicles and other equipment. More than 90% of leasing con- tracts refer to the leasing of spaces whose characteristics differ according to the space in which they are located and which, in general, can be summarized: - Leases in Shopping Centers: are, as a rule, for a period of 6 years, with a fixed monthly income or an income based on monthly sales, if this is greater than the fixed income - Leases in street locations: these are normally for longer periods of 10 to 20 years with a fixed monthly income, with the tenant having the option of terminating the lease for a shorter period. There are other contracts that are concluded for shorter terms and there is the lessee’s right to successive renewals up to a maximum term, which is generally 20 years. - Leases in concession spaces: for the contractual period with a variable income de- pending on annual sales subject to a guaranteed minimum annual value. There are lease agreements that provide for variable rents. In the case of Airports in Spain, pursuant to Law 13/2021, the minimum annual rents depend on the traffic of the Airports until the traffic for the year 2019 is reached, whereby variable rent contracts are considered until such traffic is reached. 409