IBERSOL – SGPS, SA

Publicly 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 the Porto Commercial Registry Office under registration and tax identification number 501669477

2019 ANNUAL REPORT AND CONSOLIDATED ACCOUNTS

(to approve at Shareholder´s General Meeting)

MANAGEMENT REPORT

• MANAGEMENT REPORT	3
• CORPORATE GOVERNANCE REPORT	50
• SUSTAINABILITY REPORT	107
• FINANCIAL STATEMENTS	155

1. Economic Context

1. Main Indicators
1. Message from the Chairman of the Board of Directors
1. Main Events
1. The Ibersol Group
2. 5.1 Business structure
3. 5.2 Strategic Profile of the Group
4. 5.3 Governing Bodies

6. Financial Year Activity

6.1 Restaurants
6.2 Counters
6.3 Travel and Catering

7. Consolidated Financial Analysis

1. Outlook
1. Individual Net Results and Proposed Application of Results
1. Subsequent Events
1. Acknowledgments
1. Annexes to the Management Report

1. Economic Context

Global Situation

Having peaked in mid-2018, world growth entered a period of less expansion, with a slowing of activity in the manufacturing industry and in investment. Recent data from the Central European Bank shows that the situation reached relative stability towards the end of 2019, in an atmosphere of increased trade wars between economic blocks, of political instability in some regions and uncertainty regarding the development of Brexit.

The growth of world GDP fell from 3.6% to 2.9% in 2019, reflecting a slowing of the most advanced economies in the world, and of China, and counterbalanced by the recovery and increased growth of the most important emerging economies.

The USA's GDP grew by 2.3% in 2019 based on favourable financial conditions and increases in private consumption, sustained by a robust labour market, with inflation at around 2%.

The Euro Zone grew 1.2% in 2019 sustained by favourable lending conditions, new gains in terms of employment and salary increases, a slightly expanding budget policy and steady external demand.

In 2019 the Chinese economy maintained a trajectory of gradual slowing down, that set at 6.1%, reflecting the reduction on exports and of investments, within a framework of the progressive implementation of structural reforms that tend towards a reduction in the weight of foreign trade in the economy.

The GDP of the UK grew by 1.3% in 2019. Following contraction in the second quarter, the economy bounced back, albeit modestly, towards the end of the year. Uncertainty related to Brexit limited short-term growth and conditioned long-term perspectives, depending on the nature of post-Brexit deals to be negotiated with the European Union.

The Japanese economy grew by 1.1% in 2019, a moderate growth, as a consequence of the robustness of the labour market and internal demand, as well as the favourable monetary policy and the impact of the Tokyo Olympics.

The situation in Portugal

Recently published figures from the Portuguese Central Bank and the National Statistics Institute indicate that the Portuguese economy grew by 2% in 2019, pointing to a slowdown of economic activity and reflecting a steadily vibrant internal demand – amongst which the acceleration of the GFCF stands out – and a slower growth of exports, due to less favourable external demand.

The slowing of growth in exports and industrial activity contrasts with the growth in the services sector, that has allowed for a continuation of a favourable situation in the labour market. Employment is expected to continue to grow, but at a progressively slower rate and the unemployment rate will therefore continue to diminish, from 7% in 2018 to a projected 5.6% in 2021.

The expected evolution of internal and external demand will be offset, however, by an increase in imports higher than that of exports, leading to deficit in the goods and services balance, following the surpluses registered between 2013 and 2018.

Inflation, measured according to the variation rates of the HICP, diminished significantly in 2019, from 1.2% to 0.3%, reflecting a steep drop in the price of energy.

Following significant growth in 2018 (3.1%), private consumption slowed to 2.3% in 2019, due to more moderate growth of employment and stabilisation of salary growth.

GFCF continues to be the most dynamic component in terms of spending, with corporate investment holding a special place. The strong growth of 7.3% in 2019 is closely linked to construction, especially in the residential sector and in large scale infrastructure projects, some of which benefitted from European funding.

The situation in Spain

Recent data from the OECD and the Bank of Spain point to a 2% increase in Spanish GDP in 2019, with more moderate expansion expected for the next three years, against a backdrop in which internal demand will continue to be the main engine of growth, but at a lower pace than was registered over the past years.

Decisions regarding consumption of durable goods and corporate and residential investment, that had been postponed during the crisis, were at the root of the economic upturn, in a recovery process that progressively wore itself out, which goes a long way to explaining the slowing down of internal demand, in its different components.

The reduction in external demand in the Spanish economy also contributed to a more moderate growth, but less so than in other developed EUM economies, given the lower dependence of the services sectors in regards to the fluctuations of the manufacturing industries, that are more dependent on the international markets.

The inflation rate, measured according to HICP, remains at low levels.

Job creation remained steady over 2019, but at a more moderate pace when compared to the previous year.

Despite improvements since 2014, the public debt ratio remained high in 2019 (96.6. The longterm reduction of public debt requires additional measures of budget consolidation and keeping up higher growth rates.

The Situation in Angola

Recent figures from BPI RESEARCH indicate that the Angolan economy contracted 1.1% in 2019, postponing the recovery for a fourth consecutive year.

The economic performance was strongly conditioned by the fragility of the oil sector, in a year in which average daily output dropped by 7.7%, to an average of 1.36 million daily barrels. The average price of the oil barrel fell 10.9% in 2019 to 63 dollars, contributing to a decrease in export earnings of 17.8% and of 15.8% in tax revenue. The Strategy of the National Oil and Gas Agency (ANPG) has been to auction 50 new blocks for oil drilling until 2025, nine of which in 2020, including three in the Congo and three in the Cuanza basins.

The fall in oil production and prices and the limited availability of foreign reserves led to a considerable depreciation of the Kwanza in 2019. In 2020-2021 the Kwanza is expected to continue to lose value, but at a slower rate.

Despite a drop until the end of 2019, inflation is expected to increase in 2020 due to the impact of the devaluation of the currency, the introduction of VAT, price increases of some merchandise and the withdrawal of subsidies for oil and derivatives.

The Government has been meeting the structural and economic challenges of the country head on. The agreement reached with the IMF and the World Bank is a good example of a strategy aimed at promoting more inclusive growth and improving governance. It includes a more flexible exchange policy, tax consolidation measures (elimination of fuel subsidies, implementation of VAT, among others) as well as measures aimed at improving the health and banking sectors. Some strategic investments, such as the beginning of construction of a tram system in Luanda and the installation of an automobile assembly unit in the Luanda-Bengo Special Economic Zone (ZEE) are being negotiated and planned. However, some significant risks remain, that could condition the growth of the economy, particularly the volatility of oil prices, the deterioration of the external environment and the difficulties that pertain to a transition to a less oil-dependent economy.

Final Note

The global outlook for 2020 pointed to a shallow recovery of world economic activity.

The current situation, brought on by Covid-19, is certainly cause for concern and will require special attention, since its impact is real and serious, although still unclear and unpredictable.

2. Main Operational and Financial Indicators

As of the adoption of new accounting rules, on 1 January 2019, regarding leases - IFRS16 -, the group has chosen to apply the modified retrospective method in its consolidated accounts, according to which historical figures are not updated.

To make the figures easier to compare, and since there have been no changes to the way Ibersol evaluates the operational performance of its business, the following analysis does not apply the IFRS16.

EBITDA and Ebitda Margin Operational Results and Ebit Margin

MANAGEMENT REPORT

Number of Units per Country Number of Employees

Net Debt Interest Coverage

Capex	Investments in tangible and intangible assets and investments in acquisitions
Net Financing Costs	Interest + commissions - income from debto related investments
EBIT	Operacional Results
EBITDA	Operating results less depreciation, depreciation and impairment losses of fixed assets, Goodwill and Al
Net Debt	Bonds + bank loans + other loans + financial leases + shareholder loans - cash, bank deposits, current investments, and other long-term financial applications
Gearing	Net Debt / (Net debt + Equity Capital)
EBIT Margin	EBIT / Turnover
EBITDA Margin	EBITDA / Turnover
Interest Coverage	EBITDA / Net Financing Costs
Turnover	Sales + Services Rendered

3. Message from the Chairman of the Board of Directors

Our day-to-day work at the Ibersol Group is made up of effort, dedication and a constant struggle to be up to the challenges and responsibility that comes from being a large player in the restaurant sector and, at the same time, a major job creator.

We are aware of how important our group is to the lives of many people and it is with that in mind that we open the doors of our restaurants to our clients, every day, from the north to the south of Portugal, Spain and Angola.

It is this enthusiasm that guarantees us the recognition of all the Stakeholders, Clients, Partners, Suppliers, Investors and Civil Society, day in and day out.

2019 was a particularly important year for us, as we completed our 30th anniversary, and we did so with the same passion and stamina with which we started this journey. We continued with the expansion plan that we have been implementing over the past two years, especially for brands such as Burger King and KFC.

Burger King, in particular, experienced notable growth, and the group has now reached 100 restaurants in Portugal. This growth rate is unprecedented for a modern restaurant brand in our country and represents an enormous challenge.

Our clients represent a very important part of our existence and we cannot lose sight of the fact that they are becoming increasingly demanding in terms of product, service, hygiene and general restaurant atmosphere. At every point of their consumption they are looking for a striking experience.

To add to this, our products and services are subject to an increasing level of scrutiny, constantly being evaluated and shared on social media. This is a global trend, part of the new "permanently connected" reality in which the consumer is constantly sharing his or her experiences, either through comments or images. This content sharing increasingly leads to smart shopping behaviours, in which influencers determine the consumption patterns of other consumers.

Against this backdrop we have continued along a path of operational excellence – using the tools at our disposal and the commitment of the whole team – that has helped us to overcome challenges in an increasingly changing society, with new consumption habits and new behaviours on the part of consumers.

Of equal importance is the paradigm shift that has resulted from the appearance and consolidation of aggregators and their impact on the delivery market.

The growth in sales in 2019 is a reflection of this new reality, although a group such as ours, of course, will always attempt to achieve a balance between internal sales and those generated by these new channels.

Equally important, in 2019, was our investment in the international Taco Bell brand, that we expect to become another important part of our portfolio.

In Spain, following the acquisition of the EOG, in 2016, we set ourselves to meeting and overcoming the natural challenges that come from the integration and fusion of two companies with very different cultures.

Spain is a country with a large market, in which we believe we will continue to be a big player, despite the many challenges ahead for which we need to be prepared.

In Angola the socio-economic framework remained uncertain and therefore we our approach has been to sustain the operation, both for KFC and for PH, but withholding any further expansion until the uncertainty clears.

In terms of our global operations, a word also about the importance of our teams, our staff, who have been crucial in living up to the expectation of our Clients. This is why training is an increasingly strategic pillar of our Group. It is a Human Capital challenge, because at the same time we need to train and retain talent at all levels, as well as being able to rejuvenate our teams.

The Ibersol Group has created thousands and thousands of jobs, is respected by its international partners and is composed of a fantastic team, renowned for its dedication and performance.

We expect 2020 to be a very challenging year in all the markets in which we operate, but the current situation brought on by the Covid-19 pandemic has introduced an unprecedented degree of uncertainty. We are going to have to overcome the difficulties that result from a long lockdown and the gradual reactivation of business, and this will require a change in our management processes, since the impact is going to be significant and will have lasting consequences.

We are optimists, and we know what we are capable of, so we know that we can overcome this hurdle together, with everybody's support and dedication.

4. Main Events

Business was marked by strong growth in most of our brands in Portugal, partly driven by expansion, namely Burger King's, which has passed the barrier of 100 establishments in Portugal, as well as steep growth in delivery, through the use of aggregators that have allowed us to enlarge the territorial scope of home delivery for the group's different brands.

The Travel and Catering segments also grew significantly, due to the beginning of operations in new concessions and the positive performance of the Catering segment, which benefited from the organisation of larger scale events.

Towards the end of the year, Ibersol Group made the Taco Bell ring out in Portugal, inaugurating two restaurants of this famous brand, inspired by Mexico in a Californian setting and owned by the YUM Group. With over 7.000 restaurants all over the world, Taco Bell is a reference in terms of Mexican style food.

This new chain started off with two Taco Bells – one in the Norteshopping and another in Almada Forum – and both have been very well received by Portuguese consumers.

Following a strategy of expansion and portfolio evaluation, several Pizza Hut, Burger King and KFC restaurants were also opened, and different brands of the group's portfolio, both in Portugal and in Spain were refurbished.

Throughout 2019 the Group kept up the work that had begun two years ago, of implementing a loyalty programme for its brands, in partnership with the Continente Card, the country's largest discount card in Portugal. This is a strategic and differentiating project in the modern restaurant industry.

In Spain the Travel segment continues to be a great challenge for the Group. Over the year 19 new restaurants have been converted to their final formats. The group has opened almost all the restaurants which were adjudicated to it in the tenders of the Barcelona, Gran Canária, Málaga and Alicante airports.

Also in Spain we made progress in the convergence of corporate cultures and have focused on unifying the IT systems and analysis and organization methods, as well as quality and certification processes, and analysis and report methods.

We are a business made "by People and for People".

In our pursuit of constantly striving to do more and better, we highlight the launching of the Ibersol Academy – a more global, inclusive and modern Academy, capable of training staff from different regions and endowing them with the skills that the group most needs at this time in order to develop its businesses.

In conclusion, this was a year of strategic investments, including the opening of new concepts with permanent refurbishments and the consolidation of the Burger King brand as a major player in its segment, thanks to the energy of the Ibersol Group.

5. THE IBERSOL GROUP

5.1 Business Structure

Holdings at 31 December 2019

5.2 Strategic Profile of the Group

Providing great experiences and quality of life

Consumers are increasingly demanding in relation to the experiences that brands provide. Which is why we make sure that all our brands have a varied offer, providing consumers with different experiences in terms of quality and flavour. From breakfast to lunch, day in, day out, whatever the meal, whatever the occasion, we provide our customers with well-being and a balanced diet.

This is why we developed the Viva Bem (Live Well) programme (website and blog), where we try to interact responsibly with the customer, providing information on the nutritional composition of Ibersol's products, on allergens and on how to enjoy a balanced diet and healthy lifestyle.

Focusing efforts on customer relations

Customers are the Ibersol Group's raison d'être, and so they are given full attention.

Our staff know that at the end of the day it is the customer who pays their salary and all the rest of our costs.

That is why Ibersol always aims to meet customer expectations, anticipating trends, satisfying needs and presenting increasingly solid options.

Developing and valuing our staff

The development of our staff has improved significantly and reflects our growing importance on the market. Our presence at job-fairs has been strengthened, with a new and bolder image, in line with Ibersol Culture and Values.

At a time of constant and increasingly fast digital transformation, the Ibersol Group has consolidated its presence on social media, creating and maintaining corporate pages on Instagram, Facebook and LinkedIn that allow us to strengthen our ties with a variety of stakeholders, and sharing with them where we stand and where we wish to go.

Our company is currently recognised as a "Life School" and continues to invest in the training of its staff. This investment has taken shape in the "Ibersol Academy", a global, inclusive and modern institution, capable of endowing our staff, regardless of where they are from, with the skills that the market most values at this time.

An added-value social network for the consumer

At the Ibersol Group we foster a network of emotional relations and trust, which is established between staff and customers at every working moment. This network is an integral part of the Group's DNA.

To that end, the Group continuously invests in its teams' skills, especially those of the Unit Managers and Shift Managers and in their accountability for interaction with the customers. These same Managers who make it possible to more quickly identify any changes in the consumption profile, "reading" the changing expectations and realities and relaying them, so that they are incorporated into new value propositions.

Overall management processes and logistics planning

The Ibersol Group has an organised supply chain which ensures the quality of the products it sells, from supply to sale, including logistics.

This is a single, homogeneous body, which works efficiently every day through an active quality and certification policy, including NP EN ISO 9001: Quality Management Systems and the NP EN ISO 22000: Food Safety Management Systems standard certificate, covering the management of the food chain of the Group's restaurant operations, based on the activities carried out in the various markets in which it operates.

The centralisation of the supply chain which supports the operation in Portugal, Spain and Angola, allows for gains in efficiency and productivity both in terms of the processes themselves, and in the relationship with business partners.

One of the group's principles is not to sacrifice quality for the sake of price, ever. As such, through continuous improvements to the processes for managing resources and assets, Ibersol aims to maintain lasting and consistent relations with its suppliers.

Excellence in quality and safety

An active quality, safety and certification policy, allows the Ibersol Group to strengthen its position as a major player in the restaurant sector. Its discipline and thoroughness enable it to continue to carve a path of excellence, and accumulate certifications for the quality of its operations, customer service and food safety, both in Portugal, Spain and Angola.

As far as the Ibersol Group is concerned, the certifications confirm and highlight the engagement and dedication of its teams in everything they do.

In 2019 the Ibersol Group remained on this path of continuous improvement, in tune with the principles of the norms according to which it is already certified.

In particular we'd like to stress the certification of the Group's central production unit – Ibergourmet - Produtos Alimentares, SA (UCP Modivas) – an extremely demanding GFSI norm, in terms of food safety standards: FSSC 22000 (Version 4.1) – scope: Ready to eat and ready to heat combined products and meals, sliced, fried, cooked including "sous vide", grilled, stewed, roasted, baked, packed in thermoformed plastic packages, with or without vacuum, thermosealed plastic bags with MAP, flexible plastic bags sealed, vacuum and MAP, at room temperature, chilled or frozen. (Category CIII)

The following certifications were also renewed:

NP ISO's 9001:2015, 14001:2015 e NP 4397:2008/OHSAS 18001:2007(*1): HEAD OFFICE: Management of the Ibersol Group's Restaurant Operations and VOG: Restaurant Catering Services.
NP EN ISO 22000:2005 Portugal: Head Office – Management of the Ibersol Group's restaurant operations food chain; - NP EN ISO 22000: Food Safety Management Systems in Portugal, within the scope of Management of the Food Chain of the Ibersol Group's Restaurant Operations; Restaurant/catering Services in the restaurants: Catering Estádio do Dragão; Pizza Hut-KFC-Cockpit Drinks & Tapas-Especially Terminal 1 Lisbon Airport; Burger King Alameda Shopping; Kiosks Café Alameda Shopping; KFC Alameda Shopping; Pizza Hut Alameda Shopping; Pans&Company Alameda Shopping; Burger King Colombo; Pizza Hut Colombo; Pans&Company Colombo; KFC Colombo; Burger King Norteshopping; KFC Norteshopping; Pasta-Caffé Norteshopping; Pizza Hut Norteshopping; Miit Norteshopping; Pans&Company Norteshopping; Pizza Hut Foz; Pizza Hut Matosinhos; Vog Tecmaia; Blu CoffeeShop; KFC CascaisShopping; Burger King Cascais; KFC Fórum Montijo and KFC Amadora.
NP EN ISO 22000:2005 Angola: Ibersol Angola logistics chain and restaurant operations: KFC Avenida, KFC Belas Shopping, KFC Benfica, KFC Benguela, KFC Che Guevara, KFC Drive Thru Luanda Airport, KFC Morro Bento, KFC Nova Vida, KFC Zango, Pizza Hut Nova Vida; Logistical operations at Multiparques Rangel.
NP EN ISO 9001:2015 and NP EN ISO 22000:2005 Eat Out/Spain: Supply Chain management for the Ibersol/Eat Out Group restaurant operations; Restaurant services at Pans Sabadell and Ribs Maquinista.

An active human resources management policy and respect for the environment

The Ibersol Group continues to consolidate policies for best practices in resource and waste management, as well as separation and valuation of generated waste, which are embodied in an active sustainability policy. This policy, which has proved to have positive collateral effects, has allowed for good results, with significant improvements from one year to the next.

The Group took a fresh look at the teams, energy consumption, consumables, products and waste, and above all, took on board a strong concern for changing processes and ways of doing things.

The "Recycling Used Cooking Oil Programme" is perhaps the greatest example of this sustainable mentality.

5.3 Governing Bodies

Board of Directors:

Chairman - Dr. António Carlos Vaz Pinto de Sousa

Vice-Chairman – Dr. António Alberto Guerra Leal Teixeira

Member – Professor Doutor Juan Carlos Vázquez-Dodero de Bonifaz

Audit Committee:

Chairman - Dr. Carlos Alberto Alves Lourenço;

Vice-Chairman - Dr.ª Maria José Martins Lourenço da Fonseca;

Member - Dr. Eduardo Moutinho Ferreira Santos;

Alternate – Dr. Arlindo Dias Duarte Silva;

Board of the General Meeting:

Chairwoman – Dr.ª Luzia Leonor Borges e Gomes Ferreira;

Vice-Chairwoman –Dr.ª Raquel de Sousa Rocha;

Secretary –Dr.ª Maria Leonor Moreira Pires Cabral Campello;

Remuneration Committee:

Dr. Vítor Pratas Sevilhano;
Dr. Joaquim Alexandre de Oliveira e Silva;
Dr. António Maria de Borda Cardoso;

Statutory Auditor:

KPMG & ASSOCIADOS, Sociedade de Revisores Oficiais de Contas, represented by Dr. Pedro Bouça Morais Costa or, as substitute, by Dr. Vítor Manuel da Cunha Ribeirinho

Corporate Secretary:

Secretary in Office – Dr. Berenice Príncipe; Alternate Secretary – Dr. Luís Neiva Nunes de Oliveira

6. Financial Year Activities

6.1 Restaurants

The restaurant segment is composed of 203 restaurants which generated a turnover of around 109.7 million euros.

Pizza Hut (Portugal)

Created in 1958, Pizza Hut has been present in Portugal for 29 years. It is the most comprehensive restaurant brand in the market in Portugal, seeking customer satisfaction at all times in its various services and units and offering unique combinations that give these moments added flavour.

The brand covers the mainland and islands with 98 units in operation and has sold around 6 million pizzas to 12 million customers.

During this year we kept up our Expansion and Refurbishing plan, opening new restaurants in central Leiria, Rio Tinto, in Gondomar and Baixa da Banheira, Moita. The brand also boosted its delivery services, covering 1.75 million residences, including full coverage of the most densely populated markets.

Committed to satisfying the needs of the modern consumer, Pizza Hut maintains a constant effort to modernise and renew the image of its restaurants with a new, more current and welcoming unit design, offering great comfort without neglecting the digital experience required by Customers. Examples include the restaurants in Espaço Guimarães, Marina de Lagos, Forum Castelo Branco, Ferrara Plaza (Paços de Ferreira), Marina de Portimão, Forum Aveiro, as well as important spots in Forum Almada, ArrabidaShopping (V.N de Gaia) and AlgarveShopping (Guia), Valongo, Coimbra (Praça da República) and Gaia Jardim.

In 2019 Pizza Hut invested more strongly in the brand's international communication strategy, aimed at promoting a new and more appealing, modern and current style.

This was also a year for consolidating a global growth strategy, through continued investment in training and maintaining talent and operational excellence, both in terms of service, promoting fully qualified and consistent teams, and in terms of the product, providing new and differentiating experiences.

Investment in innovative and quality products is a top priority in a business which, besides producing three different types of pizza dough every day, using fresh ingredients and 100% Mozzarella cheese, introduced new ingredients, compositions and pizza formats, such as the newly launched BFF "Bites Friends Forever", an offer inspired by one of the brand's greatest successes, Cheesy Bites, now in an individual format, the Ultimate Cheesy, the ideal Pizza for cheese lovers, as well as the relaunching of the Cheesy Bites Pepperoni and Traditional Dough, and new offers such as Country Potatoes with Bacon and Cheese.

The expansion of the Lunch Buffet and the relaunching of MY HUT represent the brand's investment in diversifying offer for weekday consumption.

Regarding home delivery, the strategy rested on launching shared menus with product abundance promotions. Should the client wish to pick up the food at the restaurant, we also have very competitive promotions, that can be shared by two or more people.

The brand has kept up its multiplatform communications strategy, with a constant and strengthened presence in "above the line" media and a stronger digital presence. Digitalisation was one of the more important aspects of the brand and included presenting the Pizza Hut APP. In 2019 the digital channel accounted for almost 50% of orders.

To keep ahead of market trends, Pizza Hut was the first to partner with aggregator delivery platforms.

Pizza Hut customers can place their orders at restaurants, by phone (222 444 222), over the Pizza Hut website, the Mobile APP and also through the television restaurant (@TV) available on the three major cable network operators. Besides this, the brand is also present in the home delivery aggregating platforms.

During the year the brand also strengthened its partnership with the Continente Card, launching Menu10, an Ibersol Group loyalty programme based on the Continent Card APP, with unique and differentiating promotional advantages.

2019 was also a year of continuous investment in careers, training processes and retention. In terms of training and certification of our staff, we kept up our commitment to our teams, in a constant effort to create a Culture of Excellence. This commitment translated into the constant skill-building of the teams (as is apparent from the investment in thousands of hours of training) and encouraging career evolution through the "Crescer+", "Developing Champions" and "Preparing Champions" programmes, as well as the @Leading A Shift (LAS) programme, aimed at Management teams and the strengthening of the ACE Programme (Assured Customer Experience – which promotes a more complete and wide-ranging operational approach).

In a constant search to improve operational efficiency through digitalisation processes, we began the implementation of "MY HACCP" a digital Checklist tool to replace the daily shift management tool that controls legal requirements in terms of food safety.

We also took important steps in terms of road safety and prevention, training 317 of our distribution and restaurant management team members, in a partnership with local police in Lisbon, Porto, Braga and Coimbra. The main goal was to raise collective awareness regarding road hazards for two-wheel vehicles, to diminish accidents and safeguard our staff.

In the field of social responsibility, Pizza Hut participated in several community outreach projects, including the Group's "Thanks to Many" initiative, which was held in partnership with the Portuguese Federation of Food Banks.

Also noteworthy is the fact that the restaurants located in Colombo Shopping Centre, Alameda Shop&Spot, NorteShopping, Foz (Porto) and Continente de Matosinhos were once again certified according to the ISO 22000 standard. These are examples of the care and strict requirements that the Brand places on its consumers' food safety.

Pizza Hut (Angola)

Angola's macro-economic context continues to place heavy pressure on business, due to a loss of purchasing power resulting from 17.5% inflation rates and a strong devaluation of the Kwanza, 56% in relation to the Euro and 60% in relation to the dollar (these being the references for imports), which in turn has limited the brand's organic growth. Therefore, our operation continued to focus on the only restaurant we operate in the country, Xyami Nova Vida.

In an attempt to circumvent this adversity, we continued to focus on specialised product offers, centred around excellent quality services, following the highest standards of Food Safety and Hygiene.

On the other hand, the strategy of raising prices was below the devaluation of the euro, allowed us to retain a high level of competitiveness in relation to other segments of the restaurant sector.

The brand saw its Marketing plan strengthened, based on modern communication, with its Facebook target-audience rising by 20% to 208 thousand fans. Instagram communication was also initiated, and the remaining communication with clients took place through the GES Portal, through digital tools. Outdoors were used to communicate with potential clients.

In terms of client evaluation, the brand has grown to 85%, one of the highest scores in all of Africa.

The brand's Social Responsibility activities included participation in the hunger relief "AD HOPE" initiative, together with KFC, and a repeat of the Slice of Africa initiative, that brought staff into contact with underprivileged children, to whom were distributed educational kits composed of books and school items.

The brand also took part in cultural events, in partnership with the Embassy of the United States, to commemorate Africanness in America.

Pizza Hut (Spain)

Ibersol opened the first three stores in 2017 and by the end of 2019 had five Pizza Huts operating in Spain: four in Vigo, focused on home delivery, and one in the Asturias.

We have continued to consolidate the operation, by maintaining investment in training and operational excellence, both in terms of services – forming complete, qualified, consistent and motivated teams – and of product, providing our clients with a differentiating experience.

To this end, during the year we launched the ACE (Assured Customer Experience) and GES (The Guest Experience Survey) programmes.

During 2019 the brand also invested in new types of innovative and exclusive pizza dough, such as Cheesy Bites, Ultimate Cheesy and the relaunching of Rolling Pizza, as well as new appetizers such as Country Potatoes with Cheese and Bacon.

2019 also saw us expand our delivery services, in partnership with aggregator platforms Glovo and Deliveroo, which led to deeper marker penetration.

This was also an important year in terms of road safety and prevention, with the implementation of the Yellow Helmet for the whole distributing team.

This programme was imported from the Portuguese market and is aimed at raising awareness about the dangers associated to driving two-wheel vehicles, increasing the visibility of drivers and contributing to a drop in accidents, thereby contributing to the safety of our distributors.

Pasta Caffé (Portugal)

Pasta Caffé – a chain of restaurants specialising in Italian food – ended 2019 with 6 restaurants.

We adjusted some of our restaurant menus, with more traditional Italian offers, to meet the desire expressed by some of our clients for comfort food.

Fast service is essential to many of our clients, which is why we have developed our value offer, known as the "Lunch Buffet", with a wide range of options at very competitive prices. The buffet offer was improved, to better serve the clients who seek out the Pasta Caffé at that time of the day.

The "Seasons" initiative was kept up during the year, allowing us to innovate and test new recipes and compositions, based on the different food families associated to Italy: pastas, pizzas and risottos. These "Seasons" have always been well received by the consumers, and the genuine Italian tastes strengthen the Italian Character.

In 2019, all the teams' training processes were maintained and the NorteShopping unit was recertified according to the NP EN ISO 22000 standard.

With regard to obtaining customer's opinions, we continued to consolidate the "Pasta Experience" programme, an on-line platform where the customer evaluates all the relevant aspects of their experience regarding service and offer, enabling them to make suggestions for improvement.

In the field of Social Responsibility, the Pasta Caffé participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

The brand also began home deliveries in the larger Porto region, through partnerships with aggregator platforms.

Pizza Móvil (Spain)

Pizza Móvil closed the year with 35 working restaurants.

The year was marked by the need to defend market share, through the launching of new products, the refashioning of value proposals, focused on competitiveness, and an investment in digital communication channels.

During the year the brand also launched new products, to increase its range, and created some unique compositions, both within the pizzas range, with the Pulled Pork Pizza, but also by adding some complements.

Pizza Móvil once again affirmed its communication, freshness and quality through the "Galicia Calidade" seal.

The brand also continues to invest in increasing awareness amongst the young, sponsoring women's football and lending its name to the Pizza Móvil League, sporting the brand on all kits.

RIBS (Spain)

Over this year Ribs refurbished several of its restaurants: Maquinista, Plenilunio y Splau and opened a new, self-owned restaurant in the Lagoh shopping centre, in Seville, having closed another in Sagunto.

Ribs – the True American Barbecue is one of Ibersol's most significant brands. It was created in Madrid, in 1991, but in terms of mission, values and know-how it is heir to the El Descanso restaurant, founded in 1968 as the first truly American steakhouse in Spain

The Ribs restaurants are American style family friendly spaces, meant to be authentic American steakhouses and decorated with exclusive articles purchased in markets, fairs and antique shops in the USA.

In 2019 the brand adopted the "live grill" concept, giving more visibility to, and really highlighting its way of grilling meat.

In terms of innovation, the brand continues to launch quality products, with a genuine and innovative offer. In 2019 pride of place went to the You Burger, fully created by the client, and to the mocktails and cocktails range of beverages.

The brand continues to invest in major American celebrations (4 July, Halloween, Thanksgiving Day, among others).

In 2019 Ribs extended its home delivery services to all its self-owned and franchised restaurants, using aggregator platforms and promoting them through specific campaigns.

The Ribs brand works tirelessly to improve its operational excellence and in 2019 it implemented an external quality control system in all its own locations and franchises.

In 2019 the Ribs La Maquinista restaurant saw it's NP ISO 22000 and NP ISO 9001 certifications renewed. Local restaurants use the same processes.

RIBS (Portugal)

The RIBS brand concept is the "True American Barbecue", and the it boasts one restaurant in Portugal.

All the dishes are prepared on the spot and grilled over 100% holm oak coal, giving them a unique and genuine taste.

The brand has operated in Portugal since 2018 and this year launched a tex mex line in its value proposal, that has led to more interest on the part of clients. This year also saw it begin home deliveries, through aggregator platforms.

In the field of Social Responsibility, Ribs participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

Santamaria (Spain)

The brand reached the end of 2019 with 13 franchise restaurants and six self-owned restaurants in the Spanish Travel sector, including in the Barcelona, Menorca, Málaga, Fuerteventura and Las Palmas airports.

The Santamaria brand was created in 1998 in Mérida, having begun its expansion through the franchise system in 2001. In 2006 it became part of the Eat Out Group.

Since its creation, Santamaria has evolved and now includes a multi-offer format, which covers all types of meals (breakfast, lunch, tea and dinner), allowing our customers to enjoy good food and good drinks, at any hour of the day.

Without sacrificing the brand's personality and cuisine, a process was initiated to give the restaurants new character and essence: the "Iberian know-how". With this proposal, the brand once again positioned itself as an Iberian specialist, focusing on experience, "savoire faire" and shining the spotlight on the main factor of the Iberian product: flavour! In the new brand identity, both concepts – knowledge and flavour – are mixed, merging the renewed traditional character of the brand with the lifestyle of Spain. Because you need to be familiar with something in order to deliver it new and improved.

The new menu stands out for its Iberian products, starters, salads, main dishes and desserts, all in very original formats of reinvented classical recipes, adapted to modern times. And let us not forget our drinks, which are famous both for their taste and the containers we serve them in.

FrescCo (Spain)

The brand reached the end of 2019 with 8 restaurants in Spain, of which three are self-owned (all in Barcelona) and 5 are franchised, spread all over Spain.

FrescCo was created in 1994 when its first restaurant opened in Barcelona, and since then it has expanded to the point where there are currently 10 restaurants in Spain. With over 25 years' experience, the brand is 100% engaged in offering its customers a choice of healthy, tasty food, using fresh, seasonal products and preparing dishes and salads inspired by Mediterranean cuisine.

The brand is renowned for offering healthy, natural and balanced food with a fixed price Buffet concept, where customers compose their own meal. The Market Buffet is the new restaurant concept launched by FrescCo in 2016, designed as an evolution of the buffet, where customers can adapt their meals according to their preferences, thanks to a new gastronomic offer based on quality-guaranteed local fresh products, created for Customers who seek a healthy and balanced diet, with the best quality-price relationship. The new establishments also have a Kitchen & Grill area, where customers can enjoy the best pizzas, grilled meat and fish, and hamburgers cooked on the spot, right before their eyes.

The three self-owned restaurants were totally remodelled and have adopted the new Market Buffet concept, which has also begun to be implemented in the remaining restaurants.

6.2. Counters

The set of brands that the Ibersol Group operates in the counters segment reached the end of 2019 with 332 restaurants and a turnover of 226.8 million euros.

KFC (Portugal)

KFC has kept its focus on the 20/20 strategy, initiated in 2015, with the aim of positioning the brand among the leaders in Modern Restaurant Services in Portugal.

The brand reached the end of 2018 with 753 employees and 30 units, including three new restaurants in the cities of Porto and Ermesinde.

Expansion, both in terms of the number of restaurants and home delivery, and the refurbishing of restaurants in Norte Shopping and Vasco da Gama contributed to keeping the brand vibrant and improving sales.

Two major projects left their mark on this year: Integrated Workforce Management (GIFT) and Win On Taste (WOT).

The FIFT project was developed to improve the management of shift schedules in the restaurants.

The Win On Taste programme was successfully launched in several countries by Yum Brands, which manages the franchise on a world level, and was developed in order to increase product quality.

In terms of staff training, the brand also launched the SoGoodToWork@KFC programme, aimed at creating and retaining talent at KFC, as well as to strengthening team leadership skills. The HeartStyles – Leading With Heart programme was also launched so as to train brand team managers to improve their workplace interpersonal relationship skills.

Regarding the brand's value offer, this year saw more activity with the launching of the Megabox and continuous presence in above the line (TV, digital and OOH) communication channels, with campaigns that contributed to a strong increase in brand notoriety. The brand's home delivery services were also improved, through aggregator platforms.

With regards to Social Responsibility, KFC participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

KFC (Angola)

KFC reached the end of 2019 with 9 restaurants in operation.

Angola's macro-economic context continues to place heavy pressure on business, due to a loss of purchasing power.

To counter these difficulties, we redesigned the brands value offer by creating new product offers and specialised menus (Double Crunch / menu of the day / Wednesday menu / streetwise menu) with very competitive prices.

This year saw the brand begin to operate home deliveries, in a partnership with a local aggregator, which contributed to an increase in sales.

We kept to our policy of launching new products, centred around customer satisfaction through excellent quality services, following the highest standards of food safety and hygiene.

The brand strengthened its digital communications plan, via Facebook and Instagram, having seen its fanbase rise to 330.000. Instagram communication kicked off with 4.800 followers and the rest of the communication continues to take place through the GES Portal, digital tools, outdoors and radio.

We continue to invest heavily in staff training, to improve the know-how of our local employees. Since last year all our restaurant managers are Angolan citizens.

We continued to participate in the AD HOPE hunger relief initiative, as part of our Social Responsibility initiative.

The brand also took part in cultural events, in partnership with the Embassy of the United States, to commemorate Africanness in America.

KFC (Spain)

In October 2019 Ibersol took another step in its internationalisation process, introducing one of its most emblematic brands to Spain, opening the country's first KFC in the Metromar Shopping Centre, in Seville,

With a new image, called K3, boasting counter service, TA and Self Order Kiosks, outside and inside terraces, KFC is revamped and more appealing than ever.

The brand also has a delivery service, using Glovo and UberEats.

Burger King (Portugal)

Burger King closed the year with 101 restaurants and launched 14 new restaurants, in Albergaria-a-Velha, Bragança, Braga, Praia da Vitória, Santa Maria da Feira, Paredes, Viana do Castelo, Vila Nova de Cerveira, Valongo, Paços de Ferreira, Oeiras, Lourinhã, Marco de Canaveses and Madeira (Santa Cruz), investing mainly in street restaurants, with a Drive Thru.

We continued with our plan to refurbish some of the more dated restaurants in several parts of the country.

Home Delivery was expanded to more restaurants: Gaia Jardim, Forum Viseu, Telheiras, Maia, Anta, Flamenga, Braga Real, Rio Tinto, Alameda Antas, Portalegre, Famalicão, Castelo Branco, Valongo, Quinta do Marquês and Santa Maria da Feira, which can now be added to the Avenida de Roma and Ferreira Borges restaurants in Lisbon, as well as those in Covilhã, Monte dos Burgos and Ponta Delgada, in the Azores.

In 2019 the brand started a home delivery service, in partnership with aggregator platforms.

We continued to invest in the democratisation of consumption, through very competitive and interesting promotions for our clients: the 2 for 5€ or 12 nuggets for 1.99€. At the same time, we innovated in the premium range, launching the Rebel Whopper, a fully vegetarian hamburger.

In 2019 we also focused more on digital communication, revamping our Burger King APP, which can now be used for ordering out. The brand has shown itself to be original and irreverent on social media, to create a stronger connection with its main target.

With regards to Social Responsibility, Burger King participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

The brand renewed certification according to ISO 22000 norms for 4 restaurants: Alameda Shopping, Norte Shopping, Colombo and Cascais.

Burger King (Spain)

The Burger King Spain restaurants operated by the Ibersol Group, reached the end of 2019 with 37 restaurants. Two of these are new and eight others were refurbished.

An important novelty in 2019 was the expansion of home delivery services to aggregator platforms.

During the year almost all the restaurants were fitted with fast ordering kiosks, which were well received by the clients.

In terms of communication, there were some very relevant nationwide campaigns centred on increasing and recovering traffic and supported by strong promotional activity.

Ibersol Group's Spanish Burger Kings were recognised by Burger King International as the Best Burger King Franchise Operators, having obtained the best Operational Audit indicators and the best Customer Satisfaction Evaluations.

Pans & Company (Portugal)

Pans & Company in Portugal reached the end of 2019 with 50 units (44 Pans & Company restaurants and six Café Pans kiosks).

During the year, and in keeping with the renovation of the restaurant's look, Pans remodelled another 12 units. At the end of 2019 a total of 39 of the brand's restaurants already sported the new Pans & Company look which, besides a new sales point image, includes an offer of a wide range of cafeteria and pastry products, prepared daily in the restaurants themselves. The investment in the cafeteria segment was bolstered by the conversion of three café stands, operated by the Ibersol Group, into autonomous sales points operated under the Cafe Pans brand, the Pans brand which has the expertise in this segment.

2019 also saw Pans & Company enter the home delivery segment in partnership with aggregator platforms and the consolidation of an agreement with the Sonae Group, which introduced the brand to the Continente Card loyalty programme, as well as a number of campaigns to launch new products (Street Pans, Vertigo Flavours and Veggies & Vegans), supported by investment in above the line communications media so as to strengthen brand notoriety and its leadership position in its segment.

With regards to Social Responsibility, Pans participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

Pans & Company (Spain)

Founded in 1991, having first opened in Barcelona, Pans & Company is one of the leading brands in the Iberian sandwiches and Coffee & Bakery market, with a presence in the Spanish, Portuguese, Italian and, as of 2019, Moroccan markets.

Pans & Company ended 2019 with 101 restaurants.

The second semester of the year was marked by the launching of a home delivery service, through aggregator platforms and an investment in refurbishment and opening of new restaurants.

In 2019 we refurbished 2 restaurants (one in Xanadú Shopping Centre, in Madrid and the second in the Parque Astur Shopping Centre, in Asturias) and opened nine new ones: Three in the retail channel (Plenilunio SC in Madrid, Lagoh SC in Seville and Denia in Alicante) and six in the Travel channel (three in Barcelona and Malaga airports and two "Café Pans alone" in the Alicante airport and AVE station in Girona).

In the sandwich range, which is the brand's main offer, mention must go to the "Street Pans" innovation campaigns, a trio of authentic "street-food" flavours, "Bocadillho de vertigo", with two 10cm tall recipes, and the relaunching of the "Pans Experience", an innovative and exclusive format.

Additionally, the brand launched "Veggies&Vegans", an exclusive selection of 100% vegetarian and vegan products, mostly made out of vegetable protein and which reflect the brand's commitment to creating innovative offers and improving its leadership position in its segment in Spain.

Miit (Portugal)

The Miit brand reached the end of 2019 with 2 operating restaurants, located in Norteshopping and in Colombo Shopping Centre, in Lisbon.

Launched at the end of 2012, Miit is a restaurant proposal centred on the provision of a healthy and balanced offer in the competitive "counter" segment in shopping centres.

As a specialist in grilled meat, the brand aims to be recognised as a tasty and healthy option in shopping centres, offering its customers high quality meats and unique side dishes, such as fruit and grilled vegetables, rustic potatoes or scented rice, for an adequate price.

The concept behind MiiT responds to a trend observed in Portuguese consumers who are increasingly aware of the need to practice a healthy and balanced diet. The brand is also, therefore, part of the Ibersol Group's institutional programme called Viva Bem (Live Well), which provides nutritional information promoting a balanced diet and healthy lifestyle.

The Miit Norteshopping saw its ISO 22000 quality standard certification renewed.

Taco Bell (Portugal)

Towards the end of the year Ibersol launched Taco Bell in Portugal. Taco Bell, owned by the YUM! Group, is a famous Californian chain that serves Mexican inspired food.

Taco Bell's Mexican inspired menu uses the highest quality ingredients, offering a wide variety of flavours, smells and textures. Products are always prepared to serve and use an original combination of fresh and tasty ingredients.

At Taco Bell you can try exclusive products such as Tacos, Burritos, Quesadillas or the innovative Crunchywrap.

The brand is positioned in the fast-food market and has the best quality-quantity-price ratio, aimed at a varied age-range, but especially focused on Millennials and Generation Z.

With over 7.000 restaurants all over the world, Taco Bell is a reference in terms of Mexican inspired food and this is one bell that Ibersol wanted to let the Portuguese hear ring out, inviting them to try the exclusive offers of this successful brand.

This new chain of restaurants started with two venues in Portugal, at Norteshopping and Almada Forum, which were inaugurated on 29 and 30 December, respectively.

6.3 Travel and Catering

The business volume of this group of 124 restaurants totalled 133 million euros.

TRAVEL (Portugal)

Business in the Travel channel is carried out in the service stations on motorways and in the Airports and is aimed at travelling clients. The units allocated to this segment are managed according to a multi-brand concept, which means more than one owned or franchised brand operates in the same space, with the aim of satisfying the needs of different consumers at various meal times, through specific concepts.

Service Stations (Portugal)

The motorway service stations are an important segment of activity for the Ibersol Group, which at the end of the year operated 24 units.

Despite a rise in traffic levels, this business segment continues to be strongly affected by the introduction of tolls on the former SCUTS (highways without tolls) and by increasing competition from the service stations with reference to restaurant services.

Sol is the umbrella brand for the urban and long-distance motorway restaurant services, through units with a modern and functional design, food proposals adjusted to the needs of consumers and with services that go well beyond those of conventional restaurants in service stations. In view of the varied profiles of those who visit the Sol units, these spaces are prepared to offer a great experience to all of them.

The Sol units are characterised by their freshly prepared food offers, at accessible prices, personalised and attentive service according to specific brands, adapted to different moments of consumption.

In these units you can find renowned self-owned or franchised restaurant brands.

Go To Coffe & Food is the cafeteria brand which is present in most Sol service stations. This brand is also present in Portuguese airports, where we operate restaurant units. In various locations, especially in cities, the Sol units include renowned international brands such as Burger King, Pans & Company and KFC.

The units also provide a variety of services, such as an independent baby changing room, a lounge area, free Wi-Fi, sockets for charging computers or mobile phones, availability of tablets and daily newspapers for perusal, sale of newspapers, magazines, last minute gifts and drive-thru.

During this year we refurbished the exterior of most of our service stations, rebranding them with the Sol brand and modernized the interior of the international Burger King brand restaurants.

With regards to Social Responsibility, Sol participated in various community outreach projects, including the "Thanks to Many" initiative, in partnership with the Portuguese Federation of Food Banks.

Airports (Portugal)

The Ibersol Group is one of the main reference operators in Portuguese airports, and is present in the Lisbon, Ponta Delgada, Santa Maria, Funchal and Porto Santo airports, with 25 points of sale, through six of its own concepts – Go To Coffe & Food, Clocks, Nove, Specially, Cockpit Coffe&Tapas and Saudade – and four international franchised brands: Pizza Hut, KFC, Burger King and Go Natural.

Catering (Portugal)

The catering of the Ibersol Group, represented by the Palace Catering and Silva Carvalho Catering brands, ended 2019 with a growth in sales relative to the previous year in the Porto and Lisbon markets. Our brands held more than 800 events and served about 530,000 customers.

We were selected to cater to 45 congresses in 2019, including 37 international events. Among these some stand out, such as the Alzheimer's & Parkinson's Diseases Congress (ADPD), which registered the largest sales volume, with about 3,000 participants over four days, followed by the European Association for Osseointegration Congress (EAO), with approximately 3,000 participants over three days and the European Academy of Allergy and Clinical Immunology Congress (EAACI), with around 1,200 participants over 5 days.

Our presence at large events, organised by important clients such as Sonae, Galp, Vodafone, the Bank of Portugal, Mercedes-Benz and Meo, not to mention Super Bock Super Rock, NOS Alive and Portugal Fashion are also worth mentioning.

During the year we consolidated efforts in team training, in areas such as client services, food safety and event safety, and developed animated training videos with a multimedia approach to all these.

The Dragão Stadium catering service and the VOG Tecmaia restaurant were certified according to NP EN ISO 22000 norms.

We consolidated our operation at the Dragão Stadium, serving around 95,000 meals in a total of 28 FC Porto games and several other events held at the club's grounds, including the UEFA Nations League, during which over 10,000 meals were served.

At the beginning of the year we took over the operation of the VOG Tecmaia restaurant, a concession that the Group has had at the Maia Science and Technology Park for 10 years, and where we served 50,000 meals alone in 2019.

In 2019 we also signed a contract with Sporting Clube de Portugal, to concession different parts of the Alvalade XXI Stadium, the João Rocha Sports Arena and the Alcochete Academy.

The Porto University Club, which we have explored exclusively since 2016, continues to be a favourite for our clients. This multifaceted space has hosted a variety of events, from private parties to corporate, and is also home to our restaurant that is open to the public from Monday to Friday, for lunch.

In terms of values and sustainability principles, catering has an active role in supporting humanitarian causes, through the donation of food and meals. In 2019, more than 35,000 meals were donated to various national institutions, such as the Casa da Sopa, in Lisbon and the Coração da Cidade, in Porto.

TRAVEL (Spain)

This division of the group manages 64 restaurant points of sale in Spain, located in 9 airports, three trains stations and other tourist installations.

These points of sale are operated by 28 brands. Some of them are the group's own brands, such as Pans & Company, Café Pans, Ribs and Santamaria, while others were created specifically for this segment, such as Breadway, Caffé di Fiore and Fire&Bread. Finally, other brands are franchised: E.A.T., GoNatural, Coffee Republic, TapaTapa, Central Café, Wok Street and Mussol, among others.

Therefore the Group has the management skills of various restaurant formats which range from Grab&Go to Fine Dining, and including Fast Food and traditional coffee shops.

2019 saw a slowing of traffic in heavily tourist dependent airports, such as the Canaries airports, which witnessed a drop of around 3%. On the other hand, traffic at other airports was up by 5.8%.

The main concern this year was in opening and refurbishing new concessions. We opened 24 restaurants in Barcelona, Alicante and Las Palmas airports and at the Girona train station. The opening of these restaurants implies installing a provisional restaurant whilst the definitive one is set up.

During the year the Group won a new contract for the Barcelona airport, and will be exploring a South American concept franchise.

7. Consolidated Financial Analysis

As of the adoption of new accounting rules, on 1 January, 2019, regarding leases - IFRS16 -, the group has chosen to apply the modified retrospective method in its consolidated accounts, according to which historical figures are not updated. To make the figures easier to compare, and since there have been no changes to the way Ibersol evaluates the operational performance of its business, the following analysis does not apply the IFRS16.

(Million euros)	2019 IFRS 16	2019 Excl./IFRS16	2018
Operating income
Sales	481,8	481,8	445,6
Rendered services	3,6	3,6	4,5
Other operating income	13,3	13,3	0.9
Total operating income	498,7	498,7	460,0
Custos Operacionais
Cost of sales	117,3	117,3	108,8
External supplies and services	105,0	164.4	149.9
Personnel costs	152,0	152,0	137,1
Amortisation, depreciation and impairment losses of TFA, Rights of Use, Goodwill and IA	86,6	32,1	29,8
Other operating costs	4,8	4.8	3.1
Total operating costs	465,8	470.7	428.8
Operating Income	32,9	28,0	31,3
EBITDA	119,5	60,1	61,0
Net financing cost	20.7	3,2	3,0
Gains (losses) in joint controlled subsidiaries - Equity method	0,1	0,1	0,0
Gain (loss) on the net monetary position	0,0	0,0	1,2
Profit before tax	12,3	24,9	29,1
Income tax expense	-5,3	-2,2	4,1

Net profit	17,6	27,1	25,1

OPERATIONAL RESULTS

Consolidated operational income amounted to 498.7 million euros, 8.4% higher than the previous year. The EBITDA margin (without IFRS16) for the same period amounted to 60.1 million euros, a drop of 1.5%. The operational results (without IFRS16) amounted to 28.0 million euros, which represents a 10.3% drop in relation to the same period.

The consolidated business volume at the end of the year reached a total of 485.4 million euros, compared to the 450.11 million euros of 2018.

Turnover	2019
	euro million	% Ch. 19/18

Sales of Restaurants	469,5	8.5%
Sales of Merchandise	12.3	-4.2%
Services Rendered	3.6	-19.5%
Net Sales & Services	485.4	7.8%

The positive evolution of the restaurant market in Portugal, along with the effects of the openings which took place in 2018 and 2019, contributed to a growth in business volume of 15.3% in Portugal.

Spain saw more moderate growth in consumption in the restaurant market. The year was marked by a reconstruction of business volume in this region, following a reduction in the restaurant share in Barcelona Airport.

The impact of the reduction in the number of concessioned restaurants in this important airport in May 2018, eased towards the end of 2019, with the opening of most of the final infrastructures of the new concessions, which contributed to a 2.4% growth in business volume, including in sales of goods and franchises.

Operations in 2019 are therefore marked by growth in Portugal, which allowed the group to minimise the TWO main impacts which affected its activity:

a) a 24% reduction of activity in Angola, in euros, in a year marked by continued recession, aggravated by 16.9% inflation and a steep devaluation of the Kwanza in relation to the euro, of 56%
b) operation in provisional spaces during the refurbishing of the new concessions in Spain.

Because of these effects, consolidated restaurant sales reached 469.5 million euros, which represents an annual increase of 8.5%, compared to the 432.8 million euros of 2018.

SALES IN RESTAURANTS	2019
	euro million	% Ch. 19/18

Restaurants	109.7	7.8%
Counters	226.8	11.0%
Concessions&Catering	133.0	5.0%
Total Sales	469.5	8.5%

In terms of segments, restaurants showed a growth of 7.8%, which highlights the performance of the Pizza Hut brand and the expansion of Ribs in Spain.

The counters segment, even including the activity of KFC Angola (which dropped around 25%), showed a solid performance, with restaurant sales up to 226.8 million euros, an 11% increase. This growth was supported by (i) the performance of the KFC and BK brands, which remained positive, as in previous quarters, with gains in market share and growth rates influenced by a larger number of operating units (ii) expansion of the home delivery coverage, using aggregators, to a larger number of units in the third quarter.

"Concessions and Catering" businesses registered a 5% increase when compared to the same period last year, due to the positive performance of the Catering activity which benefited from larger events and starting operations in three new concessions during the third quarter.

2019 also saw the conclusion of the full renovation of 19 restaurants to their definitive formats in the new Spanish concessions, which has allowed for a reduction in the negative impacts that resulted from the change in perimeter brought on by the closing and opening of restaurants in the four concessions (Barcelona, Málaga, Las Palmas and Alicante).

Over the year traffic slowed in the Canaries airports, which led to steeper losses in the second semester in the Las Palmas and Fuerteventura concessions, countering the positive performance of the units in these locations.

A total of 23 units were closed during 2019, 21 of which in Spain, including 14 franchises, and two in Italy. This was part of the network readjustment process.

Following the expansion strategy, three more franchises were opened (Pans) as well as 38 self owned restaurants, 23 of which in Portugal (Burger King, Pizza Hut and KFC) and 15 in Spain (BK, Pans, Ribs, KFC) as well as five new restaurants in the new Alicante, Málaga and Girona concessions.

Towards the end of 2019 the group also brought Taco Bell to Portugal, converting 2 restaurants to the famous Mexican food brand.

By the end of the year we were operating 354 own units in Portugal, 183 in Spain and 10 in Angola.

By the end of the year the total number of units – self owned and franchised – was 659, distributed in the following manner:

Other operational income amounted to 13.3 million euros, compared to 9.9 million euros of 2018, due to the positive differences in currency registered in the activities in Angola.

Operational Costs (without IFRS16)

Consolidated operational costs (without IFRS16) amounted to 471 million euros, which represents an increase of 9.8% compared to the previous year, now representing 97.0% of business volume (2018: 95.3%).

Gross Margin

The gross margin was 75.8% of the business volume, in keeping with the previous year.

Salaries and personnel costs

Personnel costs rose 10.8%, above the business increase of 7.8%, representing 31.3% of the turnover (2018: 30,5%).

Three factors contributed to this item: (i) the effect of the rise in minimum wage in Portugal and the revision of collective agreements in Spain (ii) high costs in training due to the opening of new units during the last quarter (iii) operating in provisional spaces and closing periods in the new airport concessions.

Supplies and External Services (without IFRS16)

Costs with supplies and external services (without IFRS16) amounted to 164.4 million euros, which represents a growth of 9.7% compared to 2018.

The increase of the relative weight of this item (without IFRS16) to 33.9% of turnover, compared to 33.3% in 2018, is largely due to the contractual conditions of new concessions in Spain and costs with home delivery commissions.

Other Operational Costs

Other operational costs amounted to 4.8 million euros and include around 1.4 million euros in fees and taxes and a further 1.9 million in reduction of assets costs, related to the closing and relocation of shops.

Amortisations and Impairment Losses (without IFRS16)

Amortisations and impairment losses (without IFRS16) in 2019 amounted to 32.1 million euros, representing 6.6% of business volume, in keeping with 2018.

Recognised impairment losses of tangible and intangible assets amounted to 4.5 million euros.

EBITDA (without IFRS16)

The EBITDA (without IFRS16) over the period amounted to 60.1 million euros, which compares to 61.0 million of the previous year and equals a reduction of 1.5% compared to 2018. This was heavily influenced by the transition to new concessions in Spain, according to new contractual terms, and the devaluation of the Angolan currency, as mentioned previously.

The gains obtained in Portugal were offset by the reduction of contributions from Spain.

The total EBITDA margin (without IFRS16) was 12.4% of business volume, compared to 13.6% in 2018.

FINANCIAL OUTCOME

The Net Financing Cost for the year was around 3.2 million euros, around 0.2 million less than in 2018.

The net interest supported (without IFRS16) and the commissions associated to these credit lines amounted to 2.9 million euros, which is equal to an average debt cost of 2.1%. The downward trajectory of the average cost of financing can be attributed to changes in interest rates in Portugal and Spain and the lower weight of the debt in Angola.

NET CONSOLIDATED OUTCOME (without IFRS16)

Result before Tax (without IFRS16)

The consolidated result before tax (without IFRS16) amounted to 24.9 million euros, representing a reduction of 14.5%, or 4.2 million euros, compared to 2018 (29.1 million euros).

Corporation tax (without IFRS16)

Corporation tax (without IFRS16) in 2019 amounts to -2.2 million euros. Tax benefits of 4.5 million euros for investments in Portugal (according to the CFI) were deducted, and the provisions regarding tax credits resulting from corporation tax calculations of previous years were reversed. The effective tax rate is negative because the tax credits used under the CFI are higher than the income tax.

Consolidated Outcome for the Year (without IFRS16)

The net consolidated outcome for the year (without IFRS16) amounted to 27.1 million euros, which, when compared to the 25.1 million euros for 2018 shows an increase of 8.2%.

FINANCIAL SITUATION

Balance

Consolidated assets (without IFRS16) amounted to 468 million euros on 31 December 2019, representing an increase of 24 million in relation to the 444 million from the end of 2018, the main transactions being:

(i) Investments in the fulfilment of the expansion plans, especially Burger King and KFC and completion of new concessions in their final formats (around 38 million euros)
(ii) Remodelling and varied investments in Portugal and Spain (around 15 million euros)
(iii) Decrease in the technical fixed asset regarding the year's amortisations and impairments (around -28 million euros)
(iv) Decrease of 4 million euros in Investments in Angolan Treasury Bonds

Consolidated liabilities (without IFRS16) amounted to 244,5 million euros on the 31 December 2019, which represents a slight increase of 3.5 million euros, compared to the final value of 2018.

On 31 December 2019 equity (without IFRS16) amounted to 224 million euros, an increase of 21 million euros compared to the end of 2018.

A total of 3.4 million euros in dividends was distributed to shareholders of Ibersol SGPS during the year.

CAPEX

In 2019, the CAPEX reached the amount of 58 million euros, which corresponds to investments in:

expansion and conversion to definitive formats: opening of 56 new restaurants (38 million euros);
refurbishing: 70 units in Portugal and Spain (15 million euros)
current miscellaneous investments worth 5 million euros.

Operational cash flow (without IFRS16) generated during the year amounted to 57 million euros, which was almost entirely enough for the financial coverage of the CAPEX.

Consolidated Net Debt (without IFRS16)

At the end of the year, interest bearing net debt (without IFRS16) amounted to 78 million euros, around 3 million euros higher than the debt at the end of 2018 (74.8 million euros).

Current liabilities (without IFRS16) are 53 million euros higher than current assets (without IFRS16) due to the financial allowance characteristic of this business.

"Gearing (without IFRS16)" (net debt/(net debt+equity)) which stood at 27% at the end of 2018, dropped to 26%.

The "Net debt to EBITDA" (without IFRS16) at the end of 2019 was 1.3 times (1.2 times in 2018) and the EBITDA ratio of interest coverage is 21 times (compared to 18 in 2018).

The group's financial structure continues to prove very solid.

8. Outlook

IMF forecasts point to a recession of 8% of GDP for Portugal and Spain, with a partial and slow recovery over the following years, namely in the sectors that depend on flow and circulation of people, as well as airports and shopping centres;

At the end of March Ibersol closed around 75% of its restaurants, restricting operations during the state of emergency to 127 restaurants in Portugal, limited to delivery and take away services;

Against this backdrop and given the impact since mid-March, Ibersol implemented a number of prevention/contingency measures and activated mechanisms to protect available jobs, so as to minimise the negative impacts for the group and its employees;

Later, at the end of April, we opened around 10 restaurants, half of which in Spain, to provide delivery, take away and drive thru.

At this point it is too early to predict the behaviour of consumers when restrictions are lifted, or the evolution of business volume, to quantify the magnitude of the impact of this crisis. As always, we will attempt to adjust costs to the evolution of demand to get the most out of our operation, until the GDP begins to return to its recent levels.

To strengthen the financial structure, the group took out new loans during the first quarter, to the tune of 30 million euros and is negotiating a restructuring of the debt which is due in 2020, as well as additional loans.

Five new restaurants were opened in 2020 and the remaining expansion programme will be adjusted to the evolution of the general situation.

9. Individual Net Results and Proposed Application of Results

During 2019 Ibersol SGPS, S.A. presented a consolidated net profit of 25,095,257.00 euros and a net profit of individual accounts of 11,081,720.77 euros.

Taking into account the foreseeable evolution of operations and the resulting deterioration of business, the Board has prudently chosen not to distribute dividends, and to approve the following distribution of results:

Legal reserve 554,087.00 € Free reserves 10,527,633.77 €

10. Subsequent Events

The World Health Organization on 11 March declared a pandemic associated with the spread of Covid-19, having been declared the "Estado de Alarma" in Spain and immediately afterwards the state of emergency in Portugal. Later, at the end of the month, the same happened in Angola. The state of emergency determined measures to contain the population and the closure of most shops and restaurants.

This situation forced the restaurants to close, leaving only those that had the possibility of making a minimum volume through take-away and delivery.

Although open, the restaurants have been operating below their normal potencial.

It is possible that the conditions for the resumption of activity during the month of May and June are created.

We plan that, in an initial phase, restaurants will work at around 50% of their normal volume, with increasing recoveries until the end of the first half of next year.

To reconcile the abrupt reduction in activity and the protection of employment, the Group's companies activated el ERTE (Expediente de Regulación Temporal de Empleo) in Spain and the simplified and normal lay-off in Portugal.

At the same time, initiatives were taken to reduce costs, renegotiate contracts, including the financial rebalancing of lease contracts and the negotiation of payment terms.

As of December 31, 2019, the Group had approximately 28 million euros of credit lines available but not used. To cover the cash flow deficits, were negotiated additional lines of 30 million euros and refinanced about 15 million euros, during the first quarter of 2020.

Additionally, it is currently in the final contacting process of around 55 million euros, which allows it to reinforce the liquidity shown in the consolidated financial statements of December 31, 2019.

Regarding the recoverability of the assets, we consider it premature to reassess at this moment the conclusions drawn in the preparation of these financial statements.

We admit that the recovery from this crisis will be relatively quick and in the medium and long term that the assumptions do not change.

11. Acknowledgments

This Board of Directors would firstly like to thank all employees of the Group for the clear dedication and enthusiasm they showed in dealing with the challenges we faced during this year.

We gratefully acknowledge the trust and preference of our customers, the cooperation of our franchisees, the Banks, as well as our Suppliers and other partners.

We likewise thank all the Shareholders for the trust they continue to place in Ibersol.

The assiduous cooperation and capacity for dialogue manifested by the Audit Committee, Auditors and Statutory Auditor when monitoring and examining the company's management must also be acknowledged.

Porto, 5 may 2020

The Board of Directors

______________________________ António Carlos Vaz Pinto de Sousa

______________________________ António Alberto Guerra Leal Teixeira

______________________________ Juan Carlos Vázquez-Dodero

Annexes to the Management Report

Responsibility Statement

In compliance with paragraph a) of number 1 of the 245th article of the Securities Code, we declare that insofar as we are aware:

the management report, the annual accounts and all other documentation pertaining to the accounts of Ibersol SGPS, SA. Demanded by law or regulation, referring to 2019, were drawn up in conformity with applicable accounting norms, providing a true and appropriate image of the assets and liabilities, the financial situation and the results of Ibersol SGPS, S.A. and the companies included in the consolidation perimeter; - the information included in the management report faithfully expresses the evolution of business, performance and the position of Ibersol SGPS, S.A. and the companies included in the consolidation perimeter, and contains a description of the main risks and uncertainties they face.

The Board of Directors

António Carlos Vaz Pinto de Sousa

______________________________

______________________________ António Alberto Guerra Leal Teixeira

______________________________ Juan Carlos Vázquez-Dodero

Article 447 of the Commercial Companies Code and Article 14, #7 of the regulations of the Portuguese Securities Market Commission (CMVM), 5/2008

Declaration of the number of shares and other transferable securities issued by the Company which are owned by members of the administrative and fiscal bodies, or directors, as well as by close relations, under the terms of article 248 B of the Securities Code, and description of the transactions regarding said securities during the year under analysis.

Board of Directors	Acquisictions/Increases (a)		Sales		Balance at
	shares	av pr	shares	av pr	31.12.2019
António Alberto Guerra Leal Teixeira
DUNBAR- SERVIÇOS E GESTÃO SA (1)					9 996
Ibersol SGPS, SA					2 520
António Carlos Vaz Pinto Sousa
CALUM- SERVIÇOS E GESTÃO SA (2)					9 996
Ibersol SGPS, SA					2 520
(1) DUNBAR- SERVIÇOS E GESTÂO SA
ATPS- S.G.P.S., SA (3)					2 840
(2) CALUM- SERVIÇOS E GESTÃO SA
ATPS- S.G.P.S., SA (3)					2 840
(3) ATPS- S.G.P.S ., SA
Ibersol SGPS, SA					19 767 058

List of Qualified Shareholdings

Shareholders who own holdings equal to or above 2% of Ibersol – SGPS, SA share capital, calculated according to the terms of article 20 of the Securities Code, in compliance with article 8, #1, line b), of the regulations of the Portuguese Securities Market Commission (CMVM), 5/2008

Shareholders	nº shares	% share capital
ATPS - SGPS, S.A. (*)
Directly	19 767 058	54,91%
António Alberto Guerra Leal Teixeira	2 520	0,01%
António Carlos Vaz Pinto Sousa	2 520	0,01%
Total attributable	19 772 098	54,92%
Magallanes Iberian Equity Fl
Total attributable	1 100 154	3,06%
Bestinver Gestion GGIIC
Total attributable	3 845 161	10,68%
River and Mercantile Asset Management LLP
Total attributable	870 648	2.42%
FMR LLC
Fidelity Managemment & Research Company	1 098 000	3,05%
GOSHA HOLDINGS SARL
Directly	1 034 313
Malgorzata Ewa MCGovern	28 268
Total attributable	1 062 581	2,95%

(*) The voting rights attributable to the ATPS are also attibutable to António Pinto Sousa and Alberto Teixeira under subparagraph b) of paragraph 1 of Article 20 and Article 21 paragraph 1, both of the CMVM Code, by virtue of the latter holding the domain of that company, in which participate indirectly in equal parts by, respectively, the companies Calum – Serviços e Gestão SA with the NIPC 513799486 and Dunbar – Serviçoes e Gestão, SA, with the NIPC 513799257, which together hold the majority of the capital ATPS.

CORPORATE GOVERNANCE REPORT

2019

IBERSOL, SGPS SA.

Publicly Listed Company, with share capital of 36,000,000 euros, with its registered office at Praça do Bom Sucesso, nºs 105/159, 9º andar, 4150-146 Oporto, registered in the Companies Register of Oporto under registration and fiscal identification number 501669477.

PART I – SHAREHOLDING STRUCTURE, ORGANIZATION AND CORPORATE GOVERNANCE

A. SHAREHOLDING STRUCTURE

1. Share Capital structure.

The share capital of Ibersol,SGPS SA. amounts to 36,000,000 Euros, fully subscribed and paid, represented by 36,000,000 ordinary registered shares with a par value of 1 euro per share, all carrying the same rights and obligations. All the shares representing the share capital are admitted to trading on the regulated market Euronext Lisbon.

2. Share transmission and ownership restrictions.

There are no restrictions under Company's By-laws, in particular under 4th and 5th articles thereof, on the transferability of the shares, nor any clause requiring consent to the transfer of the shares, nor any type of limitation on ownership of the shares.

3. Own shares.

At 31st December 2019 Ibersol,SGPS SA. held 3.599.981 of its own shares, corresponding to 9,9999% of the share capital, with a nominal value of one euro per share, at an overall acquisition cost of 11,180,516 euros (which would correspond to a percentage of about 10% of vote) – having not acquired or sold any own shares during the year of 2019.

4. Impact of change in shareholder control of the company in significant agreements.

There are no significant agreements concluded by the Company or by its subsidiaries that contain clauses aimed at establishing measures to protect against a change of control (including after a tender offer). There are no specific conditions that limit the exercise of voting rights by the shareholders of the Company or other matters liable to interfere in the success of a tender offer. There are no signed contracts with change of control clauses, either financing agreements or other, in particular in a debt issuance context.

5. Defensive measures in case of change in shareholding control.

No defensive measures, nor any regime for the renewal or revocation of such measures, have been adopted in the Company.

6. Shareholders agreements.

The Company is not aware of any shareholders' agreement that could lead to restrictions on the transfer of marketable securities or to the concerted exercise of voting rights.

II. Qualifying shareholdings and Bonds helds

7. Qualifying Shareholdings.

At 31 December 2019, according to the notifications received by the Company and in accordance with articles 16th and 20th of the Securities Code, the shareholders that have a qualifying shareholding of at least 2% of the share capital of Ibersol,SGPS SA. are as follows:

Shareholders	nº shares	% share capital
ATPS - SGPS, S.A. (*)
Directly	19 767 058	54,91%
António Alberto Guerra Leal Teixeira	2 520	0,01%
António Carlos Vaz Pinto Sousa	2 520	0.01%
Total attributable	19 772 098	54,92%
Magallanes Iberian Equity Fl
Total attributable	1 100 154	3.06%
Bestinver Gestion GGIIC
Total attributable	3 845 161	10,68%
River and Mercantile Asset Management LLP
Total attributable	870 648	2,42%
FMR LLC
Fidelity Managemment & Research Company	1 098 000	3,05%
GOSHA HOLDINGS SARL
Directly	1 034 313
Malgorzata Ewa MCGovern	28 268
Total attributable	1 062 581	2.95%

(*) The voting rights attributable to the ATPS are also attributable to António Pinto de Sousa and Alberto Teixeira under subparagraph b) of paragraph 1 of Article 20 and Article 21 paragraph 1, both of the Securities Code, by virtue of the latter's are holding the domain of that company, in which participate indirectly in equal parts respectively through CALUM – SERVIÇOS E GESTÃO, SA. with the NIPC 513799486 and DUNBAR – SERVIÇOS E GESTÃO, SA with the NIPC 513799257 – companies which together hold the majority of the share capital of ATPS SGPS, SA.

Number of shares and bonds held by the Governing Bodies members - Board of Directors and Supervisory Board

Number of Shares directly or indirectly held in Ibersol, SGPS SA:

Board of Directors:

Chairman - Dr. António Carlos Vaz Pinto de Sousa

2,520 shares of the capital of Ibersol SGPS, SA.

9,996 shares representing 99,96% of the capital of Calum – Serviços e Gestão, SA.

Calum – Serviços e Gestão, SA. holds 2,840 shares representing 25,02% of the capital of ATPS, SGPS, SA.

ATPS, SGPS, SA. on 31/12/2019, holds 19,767,058 shares representing share capital of Ibersol, SGPS, SA.

Vice-Chairman - Dr. António Alberto Guerra Leal Teixeira

2,520 shares of the capital of Ibersol SGPS, SA.

9,996 shares representing 99,96% of the capital of Dunbar – Serviços e Gestão, SA.

Dunbar – Serviços e Gestão, SA. holds 2,840 shares representing 25,02% of the capital of ATPS, SGPS, SA. ATPS, SGPS, SA. on 31/12/2019 holds 19,767,058 shares representing share capital of Ibersol, SGPS, SA.