Ibersol

Investor Presentation • Apr 29, 2024

Results 2023 (not audited)

Agenda

• Highlights of 2023
• Sustainability
• Business Evolution
• Consolidated KPI's
• Financial Statements
• Shareholder structure
• Subsequent Events
• Dividend Proposal
• Outlook 2024

The activity's of the Group, do not include the numbers of the 9 restaurants Burger King that we operate, as they are considered as discontinued operation treated in a specific line of the P&L.

Highlights of 2023

Highlights of 2023

• Turnover: 418.2M euros (+17.6% compared with 2022)
• Ebitda: 73.7M euros (+20.4% compared with 2022)
• Consolidated Net Result: 14.6M euros (-12.5% compared with 2022)
• 32 new restaurants in 2023 (18 in Portugal and 14 in Spain)
• Initial period of the new concession contracts at Madrid, Tenerife and Malaga airports in Spain in provisional formats
• Opening of the first two restaurants of Pret A Manger at Barcelona Airport
• More than 7.600 employees

Materiality Assessment

Strategy

01 ENVIRONMENT AND CLIMATE ACTION

•

• INCREASE EFICIENCY IN WATER AND ENERGY CONSUMPTION
• INCREASE CIRCULARITY AND RECOVERY OF WASTE
• • REDUCE THE ENVIRONMENTAL FOOTPRINT AND DECARBONIZE ACTIVITIES

02 PEOPLE AND COMMUNITIES

• PROMOTE TALENT DEVELOPMENT AND RETENTION
• PROMOTE DIVERSITY, EQUALITY AND INCLUSION ACROSS THE ORGANIZATION
• • HELP FIGHT HUNGER, VALUEING FOOD WASTE

03 GOVERNANCE AND FOOD BUSINESS

• CREATE THE SUSTAINABILITY DASHBOARD
• RESTRUCTURE THE INTEGRATED REPORT
• ENSURE TRANSPARENT AND FREQUENT COMMUNICATION WITH STAKEHOLDERS
• INCORPORATE THE ESG PRINCIPLES IN THE GOVERNANCE OF THE IBERSOL GROUP

04 PARTNERSHIPS

• REVIEW THE ENVIRONMENTAL AND SOCIAL DIMENSIONS OF THE SUPPLY CHAIN
• REINFORCE PARTICIPATION IN SECTORAL ALLIANCES LINKED TO ESG
• FORMALLY SUBSCRIBE TO THE UNITED NATIONS GLOBAL COMPACT

Some Achievements in 2023

•

•

•

•

01 ENVIRONMENT AND CLIMATE ACTION

• REDUCTION OF102 MWH (0,3%) IN ELECTRICITY CONSUMPTION FOR SAME STORE UNIVERSE IN PORTUGAL
• • INCREASE OF ELECTRICAL VEHICHES IN THE FLEET
• 475 TONNES OF USED COOKING OIL SENT FOR BIODIESEL
• OVER 5.800 TONNES OF WASTE BY NATURE (PAPER, PLASTIC, GLASS, ORGANIC, MIXED) SEPARATED AND FORWARD FOR TREATMENT

02 PEOPLE AND COMMUNITIES

• FOOD DONATION OF 39.000 MEALS (13,6 TONS) IN THE CATERING BUSINESS
• EMPLOYEES FROM OVER 36 NATIONALITIES

03 GOVERNANCE AND FOOD BUSINESS

PARTNERSHIPS

04

• RESTRUCTURATION OF THE INTEGRATED REPORT:
  • o IMPROVEMENT OF THE SUSTAINABILITY REPORT
  • o GREEN TAXONOMY AND GLOBAL REPORT INITIATIVE ALIGNMENT

FORMAL ENDORSEMENT OF THE UNITED NATIONS GLOBAL COMPACT

| Important brand portfolio with leading presence in Iberia, with 443 equity restaurants and 59 franchised units as of December 2023

(2) Includes several brands of kiosks/shops located at airports, trains stations and highways stop/petrol stations. Non-exhaustive list

| Strong track-record of growth in the last 23 years, halted only by the Covid-19 pandemic in 2020 and 2021

Revenue evolution (€ million) & brands development

(1)Corresponds to compound annual growth rate. Alternative performance measure, not audited

2023 Activity – equity restaurants

| In 2023, despite the progressive retraction of consumption by families, Ibersol's remained focused on maintaining sales volumes, guaranteeing a solid growth of 17.6% on continued operations.

Revenue evolution

€ million	2023	2022	 23/22
Restaurants	104	100	5.0%
Counters	145	118	22.5%
Concessions & Catering	154	120	28.1%
Total restaurants sales	403	339	19.3%
Merchandising and services rendered	15	18	-15.5%
Turnover	418	356	17.6%

of

2023 Restaurants

Nº of Restaurants	31.12.2022		Openings Q1 Openings Q2	Openings Q3	Openings Q4	Closures 2023	31.12.2023
PORTUGAL	296	1	1	1	15	0	314
Equity Restaurants	295	1	1	1	15	0	313
Pizza Hut	105		1		2		108
MIT+Ribs	3						3
Pans	40	1					41
Burger King	9						9
KFC	56			1	8		65
Pasta Caffé	1						1
Quiosques	8						8
Taco Bell	16				5		21
Coffee Shops	25						25
Catering	9						9
Concessions & Other	23						23
Franchise Restaurants	1						1
SPAIN	179	1	9	1	3	16	177
Equity Restaurants	116	1	9	1	3	10	120
Pizza Móvil	12						12
Pizza Hut	3						3
Burger King	0						0
Pans	29			1			30
Ribs	13					1	12
FrescCo	2					1	1
KFC	4	1			1		6
Concessions	53		9		2	රි	રદ
Franchise Restaurants	63	0	0	0	0	6	57
Pizza Mówil	4						4
Pans	36					2	34
Ribs	16					2	14
FrescCo	3					1	2
SantaMaria	4					1	3
ANGOLA	10		0	0	0	0	10
KFC	9						9
Pizza Hut	1						1
Other Locations - Franchise	2	0	0	0	0	1	1
Pans	2					1	1
Total Equity Restaurants	421	2	10	2	18	10	443
Total Franchise Restaurants	୧୧	0	0	0	0	7	ਦਰੇ
TOTAL	487	2	10	2	18	17	502

At 31th December Ibersol operated 313 equity restaurants in Portugal, 120 in Spain and 10 in Angola. At the 4th quarter of 2023, the group opened 18 of the 32 restaurants inaugurated during this year.

Financial Statements

Profit and Loss Statement

| Despite the challenges faced throughout the year, total Net Profit in 2023 of 14.6M€

Consolidated P&L evolution

€ million	2023	2022	23/22 
Turnover	418	356	17.6%
Cost of sales	(100)	(88)	14.2%
Employee expenses	(127)	(106)	20.8%
SG&A	(122)	(107)	13.9%
Other income and costs	5	6	(15.6%)
EBITDA	74	61	20.4%
EBIT	23	22	3.8%
Financial Results	(10)	(8)	26.5%
Income tax	1	2	(43)%
Net profit for continuing operations	14.6	16.7	(12.5%)
Profit from discontinued operations	1	143
Net Profit	15.4	159.9	(90.4%)

Results evolution overview

The robust growth in activity made it possible to mitigate the impact on the cost structure of slowdown in consumption and the initial period of the new concession contracts for airports in Spain in provisional formats, with a significant impact on operational results:

2

3

Stabilisation of raw material prices after the impact of inflation on food product;

The pressure to increase wage costs and the start of operations of the new concessions with lower productivity in the provisional formats led to an increase in staff costs of 20.8%;

Amortisation and impairment losses for the year totalled 50.7 million euros, of which 31.9 million euros corresponded to amortisation of rights of use, an increase of 12.1 million euros compared to 2022, due to entry into force of new lease contracts, especially the new concessions at airports in Spain.

Discontinued operations in 2022 includes the total restaurants already sold and also 9 restaurants that were still operated by the group to be transferred during 2024.

Balance Sheet 2023

| A continued strong financial position

Financial position overview

€ million	2023	2022	23/22
Assets	712	653	9.2%
Tangible and Intangible assets	157	157	(0.1)%
Rights of Use (RoU)	219	90	143.3%
Goodwill and other assets	148	168	(12.1)%
Cash and bank deposits	189	237	(20.5)%
Equity	355	384	(7.5)%
Share capital, issue premiums and reserves	361	234	54.2%
Net income	16	160	(90.3)%
Other	(21)	(10)	(111.0)%
Liabilities	357	269	32.9%
Loans	28	70	(59.4)%
Leases	229	91	152.0%
Other	100	108	(7.4)%
Capex	33	44	(24.7)%
Net bank debt	-162	-170	(5.0)%

Increase in rights of use of 129 million euros (mainly corresponding to the rights of use of the new lease contracts at airports in Spain and the recognition of the rights of use of the Alicante, Gran Canaria and Malaga concessions, after exceeding the traffic recorded in 2019);

2

1

Increase in lease liabilities totalling 138 million euros (of which 104 million related to the four new concession contracts at Madrid, Lanzarote, Tenerife and two new restaurants in Malaga and 36 million euros related to the reactivation of the Gran Canaria, Alicante and Malaga contracts);

Profit and Loss Statement (without IFRS16)

| For comparative purposes, eliminating the impact of IFRS16 on EBITDA from continuing operations, the EBITDA margin without IFRS16 would be 9.6% in 2023, which represents a reduction of 1.7p.p compared to 2022, reflecting the impact of the start of operations in the new concessions, mostly operating in provisional formats until the conversion to definitive formats and concepts is completed.

Continued Operations P&L evolution without IFRS 16

€ million	2023 Continued Operations without IFRS16	2022 Continued Operations without IFRS16	23/22 
Turnover	418	356	17.6%
Cost of sales	(100)	(88)	14.2%
Employee expenses	(127)	(106)	20.8%
SG&A	(155)	(128)	21.4%
Other income and costs	5	6	(15.6%)
EBITDA without IFRS16	40	40	0.0%
Ebitda without IFRS16 margin	9.6%	11.3%
EBIT without IFRS16	20	26	(23.2%)

Shareholder structure

| Shareholder structure – 31 December 2023

(1) ATPS, and ATPS's two directors

Source: Ibersol in compliance with article 9 nº1 of the CMVM Regulation nº 05/2008

Subsequent Events

Sale of Burger King operation

The Group has sold in the end of January eight of the nine restaurants located in concessions as planned, with no significant differences compared to the amount considered in the sale contract for the sale of these assets (6.6 million euros).

Offer to purchase the entire share capital of Medfood

We have presented to the owner's an offer to the purchase of 54% of Medfood share capital. If the seller's approves the offer and conditions, the deal could be concluded by the end of the first half of 2024.

Dividend Proposal

The Board of Directors proposes the distribution of 0,135 euros dividend per share, in a total amount of 5,718,542.90 euros.

If the company holds treasury shares, this allocation of €0.135 to each outstanding share will be maintained, reducing the overall amount of dividends paid.

Outlook 2024

After a challenging year in 2023, continued high interest rates continue to put pressure on household income and jeopardise consumption, particularly in the catering sector.

Recent forecasts from the Banks of Portugal and Spain for 2024 point to growth of 1.2 per cent and 1.6 per cent respectively, with a slowdown in inflation compared to the last two years and consequently an expected reduction in interest rates over the course of this year.

The instability in the Middle East and the continuing conflict in Ukraine, which is jeopardising the climate of security in Europe, could worsen consumer confidence. However, given the most recent indicators, particularly airport traffic, the markets most exposed to tourism in southern Europe will continue to show greater resilience, which will help to minimise the natural slowdown in consumption.

The year 2024 will also be marked by the conversion of the new concession restaurants at Lanzarote, Madrid, Tenerife and Malaga airports, which will continue to put pressure on profitability until the conversion of all the restaurants to the definitive formats and concepts is completed.

In terms of expanding our operations, we will continue with the expansion plans for the Pizza Hut, KFC and Taco Bell and Pret A Manger brands.

Before printing this document think about the environment. Thanks!

At Ibersol Group we recognize the importance of protecting the environment and ensuring the sustainable development of the Group's business.

It has always been our concern to promote environmental management practices, sensitizing all who work with us, as well as our customers. In this way we have been reducing our ecological footprint and helping to preserve the planet, which is our home.

Edifício Península Praça do Bom Sucesso,105 a 159 – 9º 4150-146 Porto Portugal Phone: +351 226 089 700 www.ibersol.pt