IBERSOL | Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS 36. SUBSEQUENT EVENTS 36.1 Military conflict in Ukraine The beginning of the military conflict triggered by the invasion of Ukraine by the Russian Federation on 24th February, has resulted in high human and material loss- es, leading to a massive exodus of the population from the affected territories. This situation triggered increased uncertainty about the evolution of economies and financial markets worldwide, with the following expected: i) increase in prices of fos- sil fuels and cereals; ii) greater volatility in interest rates and an increase in the rate of inflation; iii) possible increase in cyber-attacks, which may affect public and private entities in countries that have shown support for Ukraine or imposed sanctions on Russia. Notwithstanding the fact that the Group does not have direct exposure to conflict zones, it is not possible, at the moment, to estimate the potential indirect effects that may occur, so the Group is attentive to the evolution of the conflict, taking the measures it deems appropriate for the course of the conflict. situation. No relevant impacts on the financial statements as of 31st December, 2021 have been identified as of this date. 36.2 Burger King At the end of January 2022, BK Portugal announced its decision to terminate the contract for the development of the Burger King brand in Portugal, citing failure to comply with the obligation to open 2 restaurants and remodel 3 restaurants in 2021 (in addition to the 12 inaugurated and the 7 renovations carried out in 2021). Con- sequently, the Group loses the right to build 27 restaurants during the years 2022 and 2023. As the Group does not yet hold assets or has incurred significant costs for this expansion program, there are no impacts on the Financial Statements as at 31st December 2021. On 10th March, 2022, Ibersol Group and Restaurant Brands Iberia, S.A. started ne- gotiations on an exclusive basis, regarding a potential acquisition of Burger King restaurants, operated in Portugal and Spain, for an Enterprise Value of 250 million Euros, on a cash and debt-free basis, which may be increased by up to 7 million Eu- ros, relating to the potential use of tax credits. 424