PROFILE
d) Liquidity Risk
The recent evolution of the financial markets gives greater relevance to the
liquidity risk. The systematic financial planning based on the cash-flows
forecasting in more than one scenario, and for periods longer than one year,
became a crucial for the Group. The short term liquidity is based in the an-
nual planning, which is reviewed quarterly and adjusted daily. Taking into
consideration the dynamics of the underlying businesses, the intra-Group
cash pool has been performing a flexible management of the commercial
paper and negotiating credit lines available at all times. The policy of open
dialogue with all financial partners has contributed to a relationship with a
good level of trust. To the detriment of cost, the Group favoured the financing
lines that have already been contracted, even though they are seldom used.
e) Capital Risk
The corporation makes efforts to maintain an equity capital level adequate
to the characteristics of the main business (cash sales and supplier credit)
and to ensure continuity and expansion. The balance of the capital structure
is tracked based on the financial leverage ratio (defined as: net remunerated
debt / net remunerated debt + own capital) with the purpose of situating it
in the 35%-70% bracket.
Environmental
The management of this risk area is done by the Quality Department, and
it involves the implementation of the Sustainability Principles, in order to
adopt practices more sustainable and efficient in all areas of operation of
the Ibersol Group.
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