Consolidated net debt
At year’s end net paid remunerated debt stood at 28.1
million euros, an amount similar to the end 2011 debt
figure (28.3 million euros). Short term banking debt is
constituted by the issuance of commercial paper with
possibilities of redemption in 2013.
The gearing (net debt/(net debt + equity capital)) which
at end 2011 was 19.8% fell to 19.4%.
The “net debt over EBITDA” indicator was 1.6 times at
end 2012 (1.2 times in 2011) and the EBITDA to interest
coverage ratio was 7 times (compared to 10 in 2011).
Given ongoing credit restrictions and uncertainties in finan-
cial markets, the company, which in 2011 carried out oper-
ations to consolidate a large part of the short-termbanking
debt, proceeded during this financial year to set the debt’s
interest rate with more maturity (20 million euros).
The Group’s financial structure continues to be very ro-
bust.
Risks and uncertainties
Risk management is one of the components of society’s
culture and is present throughout the Organization, in
all processes. It is the responsibility of all managers and
employees at the different organizational levels.
Risk management is developed with the goal of creat-
ing value by managing and controlling uncertainties and
threats that can affect Group companies from a stand-
point of operational continuity, with a view to taking ad-
vantage of business opportunities.
In the strategic planning scope existing business port-
folio risks are identified and assessed. New businesses
and more significant projects are also developed and
strategies to manage those risks determined.
At operational level, themanagement risks associated to
the goals of each business are identified and assessed
and actions planned to manage those risks, which are
included and monitored in the scope of the business
plans and functional units.
In order to ensure compliance with set procedures the
group’s main internal control systems are regularly eval-
uated.
Internal control and monitoring of internal control sys-
tems are conducted by the Executive Committee. The
specific nature of the business means there are risk ar-
eas. We call attention to the following:
- Food hygiene and quality;
- Workplace safety and hygiene;
- Financial;
- Environmental.
The sharp drop in consumption during the last year and
uncertainty about performance of the economies of
Spain and Portugal lead us to anticipate negative evolu-
tion of the sector and Group sales. To mitigate the effect
on results the company has implemented rigorous cost
controls with monthly monitoring of market evolution
and consequent revision of resource usage planning.
On the other hand, as a food sector operator, epidemics
or disruptions in raw material markets as well as even-
tual changes in the consumption pattern can have a ma-
jor impact on the financial statements.
Own shares
During the financial year the company did not perform
any transactions involving own shares.
At 31 December 2012 the company held 2,000,000
shares (10% of the capital) with a nominal value of 1
euro each, for an overall acquisition value of 11,179,643
euros.
10. Note on activity of the Non-Executive Mem-
ber of the Board of Directors
The non-executive member of the Ibersol Board of Di-
rectors, Professor Juan Carlos Vázquez-Dodero, took
part in 6 meetings of the Board of Directors, i.e. in 60%
of the meetings held. He was provided beforehand with
all information and documentation concerning the mat-
Consolidated financial analysis
78
