IBERSOL Sustainability Report 2017

ORGANISATIONAL PROFILE Interest rate risk With the exception of the Angolan Treasury Bonds, the Ibersol Group does not have any significant interest-bearing assets. Thus, profit and cash flows from investment are largely independent of fluctuations in themarket interest rate. As regards the Angolan Treasury Bonds, which are indexed to the US dollar, they also do not present a risk as they have a fixed interest rate. The Ibersol Group’s main interest rate risk stems from liabilities, namely long- term loans. Variable-rate loans expose theGroup to cash flowrisks associated with the interest rate. Fixed-rate loans expose the Group to fair value risk associated with the interest rate. With current interest rate levels, theGroup’s policy is to set interest rates for, at least, 50% of the amount owed, for long-term financing. Credit Risk The Ibersol Group’s main activity is sales paid in cash or by credit/debit card, which means there are no relevant credit risk concentrations. As regards Accounts Receivable, risk is limited to the Catering and Franchising business areas, which account for approximately 5% of consolidated turnover. The Group began monitoring accounts receivable more regularly in order to: • Control credit granted to customers; • Analyse the ageing and recoverability of accounts receivable; • Analyse the risk profile of customers. 26