IBERSOL Annual Report 2018

Consolidated Financial Statements In 2017, an investment of approximately 2.7 million euros was made in the central kitchen in Portugal. The remaining investment mainly concerns the opening of 11 Burger King units, 4 KFC units, the opening of the concession at Santa Maria Airport (Azores) and a concession in the group Eat Out. The 2018 investments of approximately 35 million euros in tangible fixed assets, re- late to the opening of of 41 new units, mainly 10 Burger King in Portugal and 12 con- cessions in Spain. In 2018 and 2017, impairment tests were carried out for Ibersol restaurants with evi- dence of impairment. From which resulted the need to register impairment in the amount of 1.385.106 euros and 169.635 euros in 2018 and 2017, respectively, of tangi- ble fixed assets as follows: Year 2018 Unit Recoverable amount (use value) Assets account value Impairment losses Pasta Caffe (1 unit) - 211.714 211.714 Sol (2 units) - 40.976 40.976 Pizza Móvil (5 units) - 397.567 397.567 Ribs (1 unit) - 385.345 385.345 Pans & C.ª (2 units) 616.182 965.685 349.503 Total 616.182 2.001.287 1.385.106 The following assumptions were used in 2018 impairment tests: Growth rate in perpetuity Portugal 2,50% (1% real + 1,5% increase) Spain 2,50% (1% real + 1,5% increase) Discount rate for the period Portugal 5,827% Spain 5,33% The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Average Cost of Capital) methodology. The 2017 impairment test resulted in an impairment loss of € 169.635 relating to tan- gible fixed assets, as follows: 252