IBERSOL Annual Report 2018

ANNUAL REPORT 2018 Year 2017 Unit Recoverable amount (use value) Assets account value Impairment losses Pans & C.ª (1 unit) - 32.566 32.566 Pizza Movil (2 units) - 137.069 137.069 Total - 169.635 169.635 The following assumptions were used in 2017 impairment tests: Growth rate in perpetuity Portugal 2,00% (1% real + 1% increase) Spain 2,00% (1% real + 1% increase) Discount rate for the period Portugal 6,70% Spain 6,30% The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Average Cost of Capital) methodology. The positive evolution of the economy of the Península Ibérica countries and conse- quent reduction of the risk rates of countries and markets, in parallel with a reduc- tion in interest rates, leads to a lower applicable rate in 2018. In 2018, the sensitivity analysis of the discount rate is presented as follows: Discount rate Impairment Additional impairment Notes 4,80% 5,30% 5,80% 1.385.106 impairment accounted value (*) 6,30% 1.587.369 202.263 (1) 6,80% 1.795.968 410.862 (1) (1) for a discounted rate in perpetuity change of 0.5% and 1% would result in a further loss of 202.263 euros and 410.862 euros, respectively. In 2018, the sensitivity analysis of the growth rate in perpetuity is presented as fol- lows: 253