IBERSOL Annual Report 2018

ANNUAL REPORT 2018 In 2018, the sensitivity analysis of the growth rate in perpetuity is presented as fol- lows: Growth rate in perpetuity Impairment Additional impairment/ (Excess) Notes over 1% of the base - -2.032.182 over 0,5% of the base 934.123 -1.098.059 base: 2,5% 2.032.182 impairment accounted value less 0,5% of the base 3.189.156 917.785 less 1% of the base 3.738.076 1.705.893 The discount rate is presented net of taxes and was calculated based on the WACC (Weighted Average Cost of Capital) methodology. In the remaining assets (CFU) the impairment tests carried out revealed that the recoverable value is more than 20% of the recorded value. Evaluations were made based on the value of use calculated based on the Discount- ed Cash Flow (DCF) method and that support the recoverability of the goodwill values. Industrial property includes: space exploitation rights (entrance rights or surface rights), trademark exploitation rights and concession rights. The group’s main operating rights relate to the franchise rights paid to international brands at the opening of the restaurants operating under the brand: 20 years in the case of Burger King and 10 years in the case of Pizza Hut and KFC, which are renew- able by others 10 years by option of the franchisee. On 31 December 2018, the group’s concessions, territorial rights and related life cy- cle are shown below: 259