Annual Report and Consolidated Accounts 2015
Growth rate in perpetuity
Portugal
3,00% (1% real + 2% inflação)
Spain
3,00% (1% real + 2% inflação)
Discount rate
Portugal
6,80%
Spain
6,00%
The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Aver-
age Cost of Capital).
SOL units impairment tests assumptions
The growth rate of sales of each unit depends on
the expected evolution of traffic in the different
sections of highways and capture rate of the ser-
vice areas particularly the restaurants. The deci-
sion to start charging tolls on highways (ex-scuts),
affected very negatively the exploitation of service
areas (gas stations and restaurants) due to the
sharp decline in traffic and, simultaneously, to the
change of consumer habits. In the last two years
we began a traffic recovery, although at a slow
pace and very differentiated from sector to sector.
The critical variables of this business (SOL units)
are identical to all other restaurants: the number
of transactions and income per transaction.
The income per transaction, that had suffered a
substantial decrease in 2012, has been recovering
with a tendency to stabilize. The evolution of the
number of transactions, in some locations, has not
increase the same way as other food businesses
because it depends on specific circumstances:
- traffic evolution and alternative conditions in
the different sections;
- capture traffic fromunits located in those sectors.
Whereas the capture seems to have been influ-
enced by factors difficult to measure:
- Weight of the “low costs” in the fuel sale offer;
- Extension the convenience stores of gas sta-
tions;
- Pace of recovery of the consumer habits in the
service areas.
Over the course of time the traffic evolution in
each section is starting to show a consistent
trend, however the evolution of customer acqui-
sition rate is, as mentioned, a variable that has
evolved in a less consistent way, due to factors
whose impact it has proved difficult to anticipate
with a reasonable degree of security, since the
previous year’s behaviour analysis does not al-
lows adequately foresee of the future evolution.
Regarding these fluctuations, the base scenario
of each year, which is translated in the annual
budget, has been suffering adjustments that had
been reflected in the referred impairments, al-
though it seeks to adopt a realistic perspective
for the long term projection.
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