Ibersol SGPS S A : Annual Report & Consolidated Accounts 2020 (to be approved at AGM 2021) (view report)

IBERSOL - SGPS, SA

Public Listed Company

Head office: Edifício Península, Praça do Bom Sucesso, n.º 105 a 159 - 9.º andar,

4150 - 146 Porto

Share Capital: 36.000.000 €

Registered at OPorto Commercial Registry with registration and tax number 501669477

ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2020

(to be approved at AGM 2021)

Management Report	2
Corporate Governance Repor	101
Financial Statements	168

Management Report

1. Message from the Chairman of the Board
2. Economic Framework
3. Main Events
4. Consolidated Financial Performance
5. Main Social, Environmental and Product Liability Indicators
6. The Ibersol Group
7. 1. Corporate culture
   2. Share structure

   6.3. Business portfolio

1. 1. Group's strategic profile
   2. Group practices
2. Financial Year Activity
3. 1. Restaurants
   2. Counters
   3. Travel, Concessions and Catering
4. Environmental Performance
5. 1. Packaging and Packaging Waste
   2. Cooking Oils
   3. Consumption of Resources
   4. Consumption Analysis
6. Social Performance
7. 1. Employee Profile
   2. Training and Education
   3. Employee Health and Safety
   4. Employee Well-being
   5. Ties to the Community

2

Management Report

1. Product Liability
2. 1. Passion for the Costumer
   2. Food Quality and Safety
3. GRI Index (Global Reporting Initiative)
4. Outlooks
5. Individual Net Results and Proposed Application of Results
6. Subsequent Facts
7. Acknowledgments
8. Annexes to the Management Report

3

Management Report

1. Message from the Chairman of the Board

The past year of 2020 was marked by the Covid-19 pandemic, that spread at a global scale, causing the world economy to slow, with a deep impact on consumer's habits and behaviour. On 11 March the World Health Organisation declared the spread of Covid-19 to be a pandemic, which led to the decreeing of states of emergency in all the locations where the Ibersol Group operates, with the population confined to their homes and a general lockdown of businesses and restaurants to block transmission chains.

This situation forced our restaurants to close, with only take-away and delivery available, cutting operations down to a much smaller scale than normal potential. Following the first wave of the pandemic, the group began a gradual reopening of its restaurants, culminating in the reopening of the restaurants located in shopping centres, in June. Restaurants located in concession areas, namely airports, opened only sporadically, in accordance with the grantors, to supply the expected passenger flow, as airspace travel restrictions were lifted.

During this very demanding process, Ibersol Group, in accordance with indications of the World Health Organisation and national Health Boards, activated contingency plans that prioritised the safety of all clients and staff and guaranteed the protection of the supply chain, in order to combine the abrupt reduction of activity and job protection.

At the same time, we had to make choices regarding financial sustainability and strict governance, namely those that directly affect cost reduction, such as renegotiating contracts in search of a renewed financial balance of the same and adjust payment schedules. Additionally, we took the appropriate measures to strengthen our financial position and, to that end, we negotiated additional credit lines, as a preventive measure to boost liquidity at a time of high uncertainty.

As the second wave of the Covid-19 pandemic spread, first in Spain and then in Portugal, the Group once again saw its operations limited, both in terms of sales channels and opening hours, due to the measures implemented in different countries and regions. Thus, since October, our business has always been limited, in terms of hours of operation and authorized services

This was, therefore, a very difficult year which tested our cohesion, but also a year that demonstrated our resilience and strength. We had already said that in the Ibersol Group we know that the path consists of effort and dedication, but as the year began nobody could have imagined the magnitude of the impact of this pandemic. However, as the year progressed, we managed to prove that we were prepared to rise to our responsibilities, being a large restaurant Group. Awareness of the importance of our operation to the lives of many people, and of our restaurants which open every day, from north to south Portugal, Spain and Angola, played an important role in our response.

The safety and trust of our clients and staff has also always been a strategic pillar of Group's activities, and these have been reflected in the implementation of very strict cleaning and disinfection, food safety, workplace health and safety standards in all the Group's restaurants, in catering events carried out by us, airport restaurants and other operations. Therefore, and

4