IBERSOL Annual Report 2018

Consolidated Financial Statements In 2018 impairment tests were made from which resulted the need to record an im- pairment loss in the amount of 2.032.182 euros, of intangible assets and goodwill as follows: Year 2018 Unit Recoverable amount (use value) Assets account value Impairment losses Sol (2 units) - 15.723 15.723 Vidisco (UGC) 7.116.287 9.132.746 2.016.459 Total 7.116.287 9.148.469 2.032.182 The following assumptions were used in 2018 impairment tests: Growth rate in perpetuity Portugal 2,50% (1% real + 1,5% inflação) Spain 2,50% (1% real + 1,5% inflação) Discount rate for the period Portugal 5,83% Spain (Brand and Goodwill) 5,33% Spain (Vidisco) 8,6% The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Average Cost of Capital) methodology. In 2018, the sensitivity analysis of the sales growth rate is presented as follows: Discount rate Impairment Additional impairment/ (Excess) Notes 7,58% - -2.032.182 8,08% 657.180 -1.375.002 8,58% 2.032.182 impairment accounted value (*) 9,08% 3.189.156 1.156.974 (1) 9,58% 4.174.578 2.142.396 (1) (1) for a perpetuity discount rate of 0.5% and 1% would result in an additional loss of € 1.156.974 and € 2.142.396, respecti- vely. 258