IBERSOL Sustainability Report 2017

SUSTAINABILITY REPORT 2017 Liquidity risk Liquidity risk management implies maintaining a sufficient amount in cash and bank deposits, the feasibility of consolidating floating debt by using a suitable amount of credit facilities and the ability to liquidate market positions. Cash flow needs are managed based on annual planning, which is reviewed every quarter and adjusted on a daily basis. In accordance with the dynamics of the underlying businesses, the Ibersol Group flexibly manages commercial paper and negotiates credit lines available at all times. Capital Risk The Ibersol Group seeks tomaintain a level of equity capital suited to the char- acteristics of its main business (cash sales and supplier credit) and to ensure continuity and growth. The balanceof the capital structure ismonitored basedon the financial leverage ratio (defined as: net remunerated debt/net remunerated debt + equity capital), with the purpose of situating it in the 35%-70% bracket. 27