IBERSOL | Integrated Management Report 2022

Consolidated Financial Statements The value of the decreases essentially corresponds to the effect of the sale of Burger King, in the amount of 88.941.949 euros, as per note 6.7. The transfer to discontinued operations respects Burger King restaurants located in concessions, essentially Ser- vice Areas, whose sale will be completed by 30 November 2023. An impairment in the amount of 2.5 million euros was recognized and an impairment reversal of around 1 million euros was recognized, as per note 6.5.2. Under the expansion and development contracts with the brands, the Group assumed the commitment to invest in tangible and intangible fixed assets associated with new store openings and refurbishments, as per note 11.2. 6.4. Right of use assets Accounting policies Initial recognition and measurement A lease is defined as a contract or part of a contract that conveys the right to use an asset for a certain period of time in exchange for consideration. The Group’s leases respect, fundamentally, lease agreements for stores and commercial spaces and for the equipment used in these spaces. The Group is also a lessee in con- tracts for the leasing of vehicles and other equipment. More than 90% of leasing con- tracts refer to the leasing of spaces whose characteristics differ according to the space in which they are located and which, in general, can be summarized: - Leases in Shopping Centers: are, as a rule, for a period of 6 years, with a fixed monthly income or an income based on monthly sales, if this is greater than the fixed income - Leases in street locations: these are normally for longer periods of 10 to 20 years with a fixed monthly income, with the tenant having the option of terminating the lease for a shorter period. There are other contracts that are concluded for shorter terms and there is the lessee’s right to successive renewals up to a maximum term, which is generally 20 years. - Leases in concession spaces: for the contractual period with a variable income de- pending on annual sales subject to a guaranteed minimum annual value. There are lease agreements that provide for variable rents. In the case of Airports in Spain, pursuant to Law 13/2021, the minimum annual rents depend on the traffic of the Airports until the traffic for the year 2019 is reached, whereby variable rent contracts are considered until such traffic is reached. 428