IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 recovery in the medium term to pre-Covid-19 levels. Sensitivity analyses were also performed on the main assumptions used in the base calculation, with impairment losses only occurring in very conservative scenarios. Methods and assumptions: In order to determine the recoverable amount of goodwill, the value in use was con- sidered based on the 5-year business and perpetuity projections. The methods and main assumptions used in preparing the impairment tests for the Group’s goodwill were as follows: WACC 2021 Growth rate for residual value WACC 2020 Growth rate for residual value Portugal - Quick Service 6,7% 2,0% 7,3% 2,0% Portugal - Restaurants & Catering 7,3% 2,0% 7,6% 2,0% Portugal - Travel 7,8% 2,0% 8,5% 2,0% Spain - Quick Service 6,4% 2,0% 6,6% 2,0% Spain - Restaurants 6,9% 2,0% 6,9% 2,0% Spain - Travel 7,5% 2,0% 8,5% 2,0% Angola - Quick Service 15,7% 2,0% 20,8% 2,0% The discount rate presented was calculated based on the WACC methodology (Weighted Average Cost of Capital). In 2021, with the effects of the pandemic on the restaurant sector and in particular in the locations most dependent on the recovery of tourist traffic, impairment tests were carried out on Goodwill, based on the expectations of recovery of tourist flows, namely air traffic in Europe, that have been taking place in recent months. The publication of Ley 13/21 (introductory note), clarified the rules in force for mini- mum rents at airports in Spain and with the publication of new forecasts from the airspace regulatory authorities, the Group adjusted Travel projections, considering a recovery of traffic from 2019 to 2024 and future rents as established in the afore- mentioned law. The discount rates adopted correspond to the estimated weighted average cost of capital (WACC) estimated for each of the segments operated in Portugal and Spain with the highest risk in those segments that have a tendency of greater resistance to the recovery from the pandemic crisis. As previously mentioned, impairment analyzes of assets associated with the travel segment, namely airports in Spain, were carried out based on the effects arising from the application of Law 13/2021, as well as the most recent traffic estimates from Eurocontrol, which point to for a 2024 recovery of 2019 traffic. 385