IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 Clients and other debtors can be broken down as follows in terms of impairment: Year ended on 31st December 2021 Opening balance Currency Conversion Increases Decreases Closing balnace Clients 4 896 323 1 983 1 471 147 - 6 369 453 Other debtors 11 239 465 31 742 1 854 745 -2 230 644 10 895 308 16 135 788 33 725 3 325 892 -2 230 644 17 264 761 Clients impairment losses -2 380 688 - -420 324 126 208 -2 674 804 Other debtors impairment losses -204 014 -3 588 - - -207 602 13 551 086 30 137 2 905 568 -2 104 436 14 382 355 Year ended on 31st December 2020 Opening balance Currency Conversion Increases Decreases Closing balnace Clients 9 398 831 -3 332 597 976 -5 097 152 4 896 323 Other debtors 8 659 243 -52 356 2 638 271 -5 693 11 239 465 18 058 074 -55 688 3 236 247 -5 102 845 16 135 788 Clients impairment losses -2 378 212 - -1 178 651 1 176 176 -2 380 688 Other debtors impairment losses -207 449 6 883 -3 449 - -204 014 15 472 413 -48 805 2 054 147 -3 926 669 13 551 086 The main activity of the Group is the operation of stores of several own brands and franchises (Note 3.b), and the preferred payment method for its sales is by cash, debit card (or other type of card, for example, “cartão refeição”). With the appearance of sales platforms for home delivery, sales charged through the intermediary are grow- ing. The greater volume of credits results from the activity of delivery through Aggre- gators, from catering sales, although the advance payment model was implemented at the time of contracting the event, as well as from the supply of goods and royalties to franchisees. 399