IBERSOL Sustainability Report 2018

CORPORATE PROFILE Liquidity risk Liquidity risk management implies maintaining a sufficient amount in cash and bank deposits, the feasibility of consolidating floating debt by using a suitable amount of credit facilities and the ability to liquidate market positions. Cash flow needs are managed based on annual planning, which is reviewed every quarter and adjusted on a daily basis. In accordance with the dynamics of the underlying busi- nesses, the Ibersol group flexibly manages commercial paper and negotiates credit lines available at all times. Capital Risk The Ibersol group seeks to maintain a level of equity capital suited to the characteristics of its main business (cash sales and supplier cred- it) and to ensure continuity and growth. The balance of the capital structure is monitored based on the financial leverage ratio (defined as: net remunerated debt/net remunerated debt + equity capital), with the purpose of situating it in the 35%-70% bracket. 26