Ibersol

Earnings Release • Nov 20, 2015

IBERSOL – SGPS, SA

Publicly Listed Company

Registered office: Praça do Bom Sucesso 105/159, 9th floor, Porto

Share Capital: Euro 20.000.000 Commercial Registry : Oporto under the number 501669477 Fiscal Number: 501669477

CONSOLIDATED RESULTS 9M15

(not audited)

• Consolidated Turnover of 155.5 million euros Increase of 13,5% over 9M14
• Consolidated EBITDA of 23.6 million euros YoY EBITDA increased 31,1%
• Consolidated Net Profit of 9.3 million euros Increased 33.8%when compared to 9M14

REPORT

Activity

Turnover for the first nine months of 2015 amounted to 155.5 million which compares with 137.1 million euros in 9M2014.

The positive evolution of the private spending mainly in Portugal, coupled with the expansion programme accomplished last year, contributed to a growth of 13.5% .

By the end of the 3rd quarter'15 turnover amounted to 58 million euros, corresponding to a growth of 11.5% thus confirming the trend of the previous quarters.

The growing recovery verified last year fuelled an increase of the sales, with a less effect over the restaurants segment, showing a growth of 2.9%.

The largest increases were noted in the counter concepts (38%) and catering business (32%), which benefited from a relevant increase of the number of events mainly in the Lisbon area.

In Portugal, during the first month months of the year we closed eleven less profitable restaurants; opened four Burger King "drive-in" (Abóboda, Caldas da Rainha, Maia and Oeiras) and in the refurbished food court of the Lisbon airport we settled a KFC (replacing Pans) and a franchise "Go Natural".

In Spain we closed an own Pizza Móvil restaurant and two franchised ones.

Angola, saw the opening of the second restaurant in 2Q2015, making a total of six restaurants in operation.

By the end of 3Q2015 the Group reached 367 own restaurants (minus two than in 3Q2015), as shown below:

Nº of Stores	2014		2015
	31-Dec	Openings	Transfer	Closings	30-Sep
PORTUGAL	301	6		11	296
Own Stores	300	6		11	295
Pizza Hut	92			3	89
Okilo	8			2	6
Pans+Roulotte	54			3	51
Burger King	44	4			48
KFC	18	1		1	18
Pasta Caffé	12			1	11
Quiosques	9				9
Flor d`Oliveira	1			1	0
Cafetarias	35				35
Catering (SeO,JSCCe Solinca)	6				6
Concessions & Other	21	1			22
Franchise Stores	1				1
SPAIN	86	0		3	83
Own Stores	67	0		1	66
Pizza Móvil	34			1	33
Burger King	33				33
Franchise Stores	19			2	17
ANGOLA	4	2			6
KFC	4	2			6
Total Own stores	371	8		12	367
Total Franchise stores	20	0		2	18
TOTAL	391	8		14	385

Results

Consolidated net income at the end of 9M2015 amounted to 9.3 million euros, 2.3 million euros more than the homologous period.

Gross margin corresponds to 76.2% of turnover, inferior to the same period of 2014 (76.8%). A stronger promotional activity during this Summer and the alteration of the concepts mix, strengthening the counters contribution, resulted in a slight reduction of the margin .

The adjustment of costs to lower levels of activity carried out in the past three years translates into a more flexible cost structure that provides significant leverage of the profitability whenever it registers a turnover growth. In fact, there was a dilution of the weight of the different items:

• Staff costs: increase of 11.6%, below sales evolution, thus representing 30.4% of turnover (9M14: 31.0%). The sales increase allowed a more efficient management of the staff and so it has been decided a partial reimplementation of the incentive policy discontinued over the last years.

• Supplies and services: 7.1% increase, below sales increase, representing 31.0% of turnover, 1.9 pp less than in the same period of 2014. Higher marketing costs by 20% have been compensated by the dilution of the remaining fixed costs.

A tight costs control together with an increase in sales allowed a substantial recovery of the operating costs. EBITDA increased by 5.6 million euros and amounted to 23.6 million euros, ie 31% more yoy.

EBITDA margin stood at 15.2 % of turnover comparing with 13.2% in 9M2014, reflecting the improvement of the activity.

Consolidated EBIT margin, 10,3 of turnover, corresponds to an operating profit of 15,9 million euros.

Consolidated financial results were negative in 3.9 million euros, about 2.6 million euros higher than 9M2014, which corresponds to the amount of potential exchange differences recognized in Angola at 30 September.

The average cost of funds decreased to 3.5%, although affected by the impact of the financing raised in Angola, that represent about 15% of total contracted financing, with interest rates much higher than the Group average.

Balance Sheet

Total Assets amounted to about 230 million euros and equity stood at 134 million euros, representing about 58% of assets.

As a characteristic of this business, the current assets are lower than the current liabilities. The financial allowance stood at 32 million euros, slightly above the amount shown at the end of 2014.

CAPEX reached 13 million euros. Expansion absorbed circa 9.5 million euros and the remaining spent in the refurbishment of some restaurants.

The net debt on September 30, 2015 amounted to 16.9 million euros, 8.4 million euros lower than the figure recorded at 9M2014

The cash flow generated by the operations, 23 million euros, allowed to finance all the investments and to reduce the debt.

Own Shares

During 9M2015 own shares transactions were not carried out. On the 30th September the company held 2,000,000 own shares, representing 10% of the share capital, for an amount of 11,179,644 euros, corresponding to an average price per share of 5.59 euros.

Outlook

It is expected that the market trend persists and so a 4th semester in line is foreseeable, althoug with a slight slowdown, as the basis for comparison are increasingly higher.

Since the end of 3Q2015, and line with Capex, we opened two Burger King restaurants, and expect to open another two for Burger King and two for Pizza Hut. In Portugal.

In Angola, is it expected that the devaluation will continue and consequently the rise of inflation, which should determine negative impacts on the financial results of the Group and private spending in that market. Two restaurants are being built there, one KFC and one Pizza Hut. Their opening is likely to occur before the year end.

Porto, 17th de November 2015

______________________________ António Alberto Guerra Leal Teixeira

______________________________ António Carlos Vaz Pinto de Sousa

______________________________ Juan Carlos Vázquez-Dodero

In compliance with paragraph c) of section 1 of article 246 of the Securities Market Code each member of the board identified below declares that to the best of their knowledge:

• (i) the consolidated financial statements of Ibersol SGPS, SA, referring to the first nine months, were drawn up in compliance with applicable accounting rules and provide a true and suitable picture of the assets and liabilities, financial situation and results of Ibersol SGPS, S.A., and the companies included in the consolidation perimeter; and
• (ii) the interim management report includes a fair review of the important events that have occurred in the first nine months of this year and the evolution of business performance and the position of all the companies included in consolidation.

António Alberto Guerra Leal Teixeira Chairman of Board Directors António Carlos Vaz Pinto Sousa Member of Board Directors Juan Carlos Vázquez-Dodero Member of Board Directors

Ibersol S.G.P.S., S.A.

Consolidated Financial Statements

30th September 2015

IBERSOL S.G.P.S., S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION ON 30th SEPTEMBER 2015 AND 31st DECEMBER 2014 (values in euros)

ASSETS	Notes	30-09-2015	31-12-2014
Non-current
Tangible fixed assets	7	134.284.496	132.110.000
Goodwill	8	40.594.588	40.594.588
Intangible assets	8	13.672.625	13.493.705
Deferred tax assets		543.650	531.418
Financial assets - joint controlled subsidiaries		2.468.471	2.448.856
Other financial assets		397.204	370.058
Other non-current assets		1.416.929	1.487.814
Total non-current assets		193.377.963	191.036.439
Current
Stocks		6.889.144	5.937.327
Cash and bank deposits		19.665.379	13.566.782
Income tax receivable		65.996	9.859
Other current assets	15	10.061.084	8.955.678
Total current assets		36.681.603	28.469.646
Total Assets		230.059.566	219.506.085
EQUITY AND LIABILITIES
EQUITY
Capital and reserves attributable to shareholders
Share capital Own shares		20.000.000 -11.179.644	20.000.000 -11.179.644
Conversion Reserves		-914.231	68.631
Legal Reserves		4.000.001	4.000.001
Other Reserves & Retained Results		107.457.711	100.691.623
Net profit in the year		9.307.049	7.756.088
		128.670.886	121.336.699
Non-controlling interest		4.935.546	4.976.886
Total Equity		133.606.432	126.313.585
LIABILITIES
Non-current
Loans		21.656.561	24.028.060
Deferred tax liabilities		7.834.517	7.702.843
Provisions		861.962	32.118
Other non-current liabilities		246.925	268.561
Total non-current liabilities		30.599.965	32.031.582
Current Loans		14.878.073	14.803.757
Accounts payable to suppl. and accrued costs		37.890.711	36.534.101
Income tax payable		1.549.641	1.257.399
Other current liabilities	15	11.534.744	8.565.661
Total current liabilities		65.853.169	61.160.918
Total Liabilities		96.453.134	93.192.500
Total Equity and Liabilities		230.059.566	219.506.085

FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER, 2015 AND 2014 (values in euros) IBERSOL S.G.P.S., S.A. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Notes	30-09-2015	30-09-2014
Operating Income
Sales	5	155.040.312	136.617.922
Rendered services	5	502.358	436.426
Other operating income		1.644.135	1.355.030
Total operating income		157.186.805	138.409.378
Operating Costs
Cost of sales		37.084.999	31.765.035
External supplies and services		48.288.923	45.072.324
Personnel costs		47.341.376	42.428.362
Amortisation, depreciation and impairment losses	7 e 8	7.703.793	7.386.052
Other operating costs		823.774	1.105.649
Total operating costs		141.242.865	127.757.422
Operating Income		15.943.940	10.651.956
Net financing cost	16	-3.854.092	-1.219.446
Gaisn (losses) in joint controlled subsidiaries - Equity method		19.618	-27.132
Profit before tax		12.109.466	9.405.378
Income tax expense		2.843.756	2.482.115
Net profit		9.265.710	6.923.263
Other comprehensive income:
Change in currency conversion reserve (net of tax and that can be
recycled for results)		-982.862	65.594
TOTAL COMPREHENSIVE INCOME		8.282.848	6.988.857
Net profit attributable to:
Owners of the parent		9.307.049	6.968.528
Non-controlling interest		-41.340	-45.265
		9.265.709	6.923.263
Total comprehensive income attributable to:
Owners of the parent		8.324.187	7.034.122
Non-controlling interest		-41.340	-45.265
		8.282.847	6.988.857
Earnings per share:	9
Basic		0,52	0,39
Diluted		0,52	0,39

IBERSOL S.G.P.S., S.A. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THIRD TRIMESTER OF 2015 AND 2014 (values in euros)

		3rd TRIMESTER (unaudited)
	Notes	2015	2014
Operating Income
Sales	5	57.790.437	51.846.665
Rendered services	5	164.783	134.796
Other operating income		510.440	450.292
Total operating income		58.465.660	52.431.753
Operating Costs
Cost of sales		13.783.464	11.361.954
External supplies and services		17.194.643	16.735.082
Personnel costs		16.291.908	14.773.539
Amortisation, depreciation and impairment losses	7 e 8	2.602.447	2.368.054
Other operating costs		300.087	406.559
Total operating costs		50.172.549	45.645.188
Operating Income		8.293.111	6.786.565
Net financing cost	16	-1.492.847	-149.870
Gaisn (losses) in joint controlled subsidiaries - Equity method		11.963	-10.353
Profit before tax		6.812.227	6.626.342
Income tax expense		1.665.235	1.731.499
Net profit		5.146.992	4.894.843
Other comprehensive income:
Change in currency conversion reserve (net of tax and that can be
recycled for results)		-459.385	65.743
TOTAL COMPREHENSIVE INCOME		4.687.607	4.960.586
Net profit attributable to:
Owners of the parent		5.121.788	4.890.766
Non-controlling interest		25.203	4.077
		5.146.991	4.894.843
Total comprehensive income attributable to:
Owners of the parent		4.662.403	4.956.509
Non-controlling interest		25.203	4.077
		4.687.606	4.960.586
Earnings per share:	9
Basic		0,28	0,27
Diluted		0,28	0,27

IBERSOL S.G.P.S., S.A.Statement of Alterations to the Consolidated Equityfor the nine months period ended 30th September, 2015 and 2014

(value in euros)

		Ass ign ed har eho lde to s rs
	Not e	Sh Ca ital are p	Ow n Sh are s	Co rsio nve n Res erv es	Leg al Res erv es	Oth er Res & erv es Ret ain ed Res ults	Net Pro fit	Tot al p nt are ity equ	No n llin tro con g inte t res	Tot al Equ ity
Bal n 1 Ja 201 4 anc e o nua ry		20. 000 .00 0	11. 179 .64 4 -	19. 045 -	4.0 00. 001	98. 105 .16 1	3.5 76. 462	114 .48 2.9 35	4.9 57. 161	119 .44 0.0 96
Ch in t he iod ang es per : lica tion of the lida ted fit f 20 13:
App co nso pro rom T sfe and ain ed ults r to ret ran res erv es res						2.5 86. 462	2.5 86. 462			-
Co rsio - A la nve n re ser ves ngo				65. 594			-	- 65. 594		65.
Net lida ted inc e in the nin ont h p erio d co nso om e m										594
Sep end ed 30 tem ber 20 14 on							6.9 68. 528	6.9 68. 528	45. 265 -	6.9 23. 263
Tot al c han in the riod ges pe		-	-	65. 594	-	2.5 86. 462	4.3 82. 066	7.0 34. 122	45. 265 -	6.9 88. 857
Net ofit pr							6.9 68. 528	6.9 68. 528	45. 265 -	6.9 23. 263
Tot al c hen sive inc om pre om e								7.0 34. 122	45. 265 -	6.9 88. 857
Tra ctio wit h c ital s in the riod nsa ns ap ow ner pe
App lica tion of the lida ted fit f 20 13: co nso pro rom P aid div ide nds
							-99 0.0 00 -99 0.0 00	990 .00 0 - 990 .00 0		990 .00 0 - -99 0.0
		-	-	-	-	-		-	-	00
Bal n 3 0 S ber 20 14 ept anc e o em		20. 000 .00 0	11. 179 .64 4 -	46. 549	4.0 00. 001	100 .69 1.6 23	6.9 68. 528	120 .52 7.0 57	4.9 11. 896	125 .43 8.9 53
Bal Ja n 1 201 5 anc e o nua ry		20. 000 .00 0	11. 179 .64 4 -	68. 631	4.0 00. 001	100 .69 1.6 23	7.7 56. 088	121 .33 6.6 99	4.9 76. 886	126 .31 3.5 85
Ch in t he iod ang es per :
App lica tion of the lida ted fit f 20 14: co nso pro rom
T sfe and ain ed ults r to ret ran res erv es res						6.7 66. 088	6.7 66. 088 -	-		-
Co rsio - A la nve n re ser ves ngo				-98 2.8 62				-98 2.8 62		982 .86 2 -
Net lida ted inc e in the nin h p erio d ont co nso om e m end ed Sep ber 30 tem 20 15 on							9.3 07. 049	9.3 07. 049	41. 340	9.2 65. 709
Tot al c han in the riod ges pe		-	-	-98 2.8 62	-	6.7 66. 088	2.5 40. 961	8.3 24. 187	- 41. 340	8.2 82.
Net ofit pr							9.3 07. 049	9.3 07. 049	- 340 41. -	847 9.2 65. 709
Tot al c hen sive inc om pre om e								8.3 24. 187	41. 340 -	8.2 82. 847
Tra ctio wit h c ital s in the riod nsa ns ap ow ner pe
App lica tion of the lida ted fit f 20 14: co nso pro rom
P aid div ide nds							-99 0.0 00	990 .00 0 -		990 .00 0 -
		-	-	-	-	-	-99 0.0 00	990 .00 0 -	-	-99 0.0 00
Bal n 3 0 S ber 20 15 ept anc e o em		20. 000 .00 0	11. 179 .64 4 -	914 .23 1 -	4.0 00. 001	107 .45 7.7 11	9.3 07. 049	128 .67 0.8 86	4.9 35. 546	133 .60 6.4 32

IBERSOL S.G.P.S., S.A. Consolidated Cash Flow Statements for the nine months period ended 30 September, 2015 and 2014

(value in euros)

September 30 Note 2015 2014 Cash Flows from Operating Activities Flows from operating activities (1) 22.957.272 18.581.134 Cash Flows from Investment Activities Receipts from: Financial investments 5.640 Tangible fixed assets 19.287 37.975 Intangible assets Investment benefits 84.525 97.954 Interest received 108.161 128.374 Payments for: Financial Investments 27.147 65.816 Tangible fixed assets 12.493.611 12.948.444 Intangible assests 1.104.996 650.867 Flows from investment activities (2) -13.413.781 -13.395.184 Cash flows from financing activities Receipts from: Loans obtained 2.193.687 890.520 Payments for: Loans obtained 3.959.399 9.422.288 Amortisation of financial leasing contracts 61.483 Interest and similar costs 1.311.923 1.585.070 Dividends paid 990.000 990.000 Flows from financing activities (3) -4.067.635 -11.168.321 Change in cash & cash equivalents (4)=(1)+(2)+(3) 5.475.856 -5.982.372 Perimeter changes effect Exchange rate differences effect -185.111 552.218 Cash & cash equivalents at the start of the period 13.471.613 21.404.814 Cash & cash equivalents at end of the period 19.132.580 14.870.224		Nine months period ending on

IBERSOL SGPS, S.A.

ANNEX TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(Values in euros)

1. INTRODUCTION

IBERSOL, SGPS, SA ("Company" or "Ibersol") has its head office at Praça do Bom Sucesso, Edifício Península n.º 105 a 159 – 9º, 4150-146 Porto, Portugal. Ibersol's subsidiaries (jointly called the Group), operate a network of 383 units in the restaurant segment through the brands Pizza Hut, Pasta Caffé, Pans & Company, Kentucky Fried Chicken, Burger King, O' Kilo, Roulotte, Café Sô, Quiosques, Pizza Móvil, Miit, Sol, Sugestões e Opções, Silva Carvalho Catering e Palace Catering, coffee counters and other concessions. The group has 367 units which it operates and 18 units under a franchise contract. Of this universe, 83 are headquartered in Spain, of which 66 are own establishments and 17 are franchised establishments, and 6 in Angola.

Ibersol is a public limited company listed on the Euronext of Lisbon.

2. MAIN ACCOUNTING POLICIES

The main accounting policies applied in preparing these consolidated financial statements are identical to those used in preparing information for the periods ended September 30 and December 31, 2014, as described in the complete financial statements for the prior year presented.

2.1 Presentation basis

These consolidated financial statements were prepared according to the International Financial Reporting Standards (IFRS), as applied in the European Union and in force on 01 January 2015, mainly with the international standard nº. 34 – Interim Financial Report.

3. IMPORTANT ACCOUNTING ESTIMATES AND JUDGMENTS

There where no substantially differences between accounting estimates and judgments applied on 31 December 2014 and the accounting values considered in the nine months period ended on the 30 September 2015.

4. INFORMATION ABOUT THE COMPANIES INCLUDED IN THE CONSOLIDATION AND OTHER COMPANIES

4.1. The following group companies were included in the consolidation on 30th September 2015 and 30th September and 31st December 2014:

			% Shareholding
Company	Head Office	Sep-15	Dec-14	Sep-14
Parent company
Ibersol SGPS, S.A.	Porto	parent	parent	parent
Subsidiary companies
Iberusa Hotelaria e Restauração, S.A.	Porto	100%	100%	100%
Ibersol Restauração, S.A.	Porto	100%	100%	100%
Ibersande Restauração, S.A.	Porto	80%	80%	80%
Ibersol Madeira e Açores Restauração, S.A.	Funchal	100%	100%	100%
Ibersol - Hotelaria e Turismo, S.A.	Porto	100%	100%	100%
Iberking Restauração, S.A.	Porto	100%	100%	100%
Iberaki Restauração, S.A.	Porto	100%	100%	100%
Restmon Portugal, Lda	Porto	61%	61%	61%
Vidisco, S.L.	Vigo - Espanha	100%	100%	100%
Inverpeninsular, S.L.	Vigo - Espanha	100%	100%	100%
Ibergourmet Produtos Alimentares, S.A.	Porto	100%	100%	100%
Ferro & Ferro, Lda.	Porto	100%	100%	100%
Asurebi SGPS, S.A.	Porto	100%	100%	100%
Charlotte Develops, SL	Madrid-Espanha	100%	100%	100%
Firmoven Restauração, S.A.	Porto	100%	100%	100%
IBR - Sociedade Imobiliária, S.A.	Porto	98%	98%	98%
Eggon SGPS, S.A.	Porto	100%	100%	100%
Anatir SGPS, S.A.	Porto	100%	100%	100%
Lurca, SA	Madrid-Espanha	100%	100%	100%
Q.R.M.- Projectos Turísticos, S.A	Porto	100%	100%	100%
Sugestões e Opções-Actividades Turísticas, S.A	Porto	100%	100%	100%
RESTOH- Restauração e Catering, S.A	Porto	-	-	100%
Resboavista- Restauração Internacional, Lda	Porto	100%	100%	100%
José Silva Carvalho Catering, S.A	Porto	100%	100%	100%
(a) Iberusa Central de Compras para Restauração ACE	Porto	100%	100%	100%
(b) Vidisco, Pasta Café Union Temporal de Empresas	Vigo - Espanha	100%	100%	100%
Maestro - Serviços de Gestão Hoteleira, S.A.	Porto	100%	100%	100%
SEC - Eventos e Catering, S.A.	Porto	100%	100%	100%
IBERSOL - Angola, S.A.	Luanda - Angola	100%	100%	100%
HCI - Imobiliária, S.A.	Luanda - Angola	100%	100%	100%
Parque Central Maia - Activ.Hoteleiras, Lda	Porto	-	-	100%
Gravos 2012, S.A.	Porto	98%	98%	80%
Companies controlled jointly
UQ Consult - Serviços de Apoio à Gestão, S.A.	Porto	50%	50%	50%

(a) Company consortium agreement that acts as the Purchasing and Logistics Centre and provides the respective restaurants with raw materials and maintenance services. (b) Union Temporal de Empresas which was founded in 2005 and that during the year functioned as the Purchasing Centre in Spain by providing raw materials to the respective restaurants.

The subsidiary companies were included in the consolidation by the full consolidation method. UQ Consult, the Jointly controlled entity, was subject to the equity method according to the group's shareholding in this company.

The shareholding percentages in the indicated companies imply an identical percentage in voting rights.

4.2. Alterations to the consolidation perimeter

4.2.1. Acquisition of new companies

The group did not buy any subsidiary in the nine months period ended on 30 September 2015.

4.2.2. Disposals

The group did not sell any of its subsidiaries in the nine months period ended on 30 September 2015.

5. INFORMATION PER SEGMENT

Ibersol monitors the business based on following segmentation:

SEGMENT		BRANDS
Restaurants	Pizza Hut	Pasta Caffe	Flor d'Oliveira Pizza Movil
Counters	KFC	O'Kilo	Miit	Burguer King	Pans/Bocatta	Coffee Counter
Other business	Sol (SA)	Concessões Catering		Convenience stores

The results per segment for the nine month period ended on 30 September 2015 and 2014 were as follows:

			Other, write off
30 SEPTEMBER 2015	Restaurants	Counters	Concessions and Catering	and adjustments	Total Group
Total sales and services	50.817.834	85.523.575	18.954.361	246.901	155.542.670
Operating cash-flow (EBITDA)	5.823.082	14.916.432	2.908.462	-244	23.647.733
Amortisation, depreciation and impairment losses	2.169.933	4.027.688	1.322.108	184.064	7.703.793
Operating income (EBIT)	3.653.149	10.888.744	1.586.354	-184.308	15.943.940

			Other, write off
			Concessions	and
30 SEPTEMBER 2014	Restaurants	Counters	and Catering	adjustments	Total Group
Total sales and services	49.366.758	70.289.684	17.098.233	299.673	137.054.348
Operating cash-flow (EBITDA)	4.670.771	10.740.191	2.665.055	-38.008	18.038.008
Amortisation, depreciation and impairment losses	2.104.051	3.168.022	1.606.105	507.874	7.386.052
Operating income (EBIT)	2.566.719	7.572.169	1.058.951	-545.882	10.651.956

Transfers or transactions between segments are performed according to normal commercial terms and in the conditions applicable to independent third parties.

6. UNUSUAL AND NON-RECURRING FACTS AND SEASON ACTIVITY

No unusual facts took place during the nine months period ended 30 September 2015.

In the restaurant segment season activity is characterized by an increase of sales in the months of July, August and December, witch leads to a greater activity on the third trimester of the year compared with the first semester. The previous years have evidenced that, in comparable perimeter and with an equal distribution of openings and closings, in the period that understands the nine first months of the year, sales are about 75% of annual volume and, with the dilution effect of the fixed costs with the increase of the activity, the operating income represents about 85%.

7. TANGIBLE FIXED ASSETS

In the nine months period ended 30 September 2015 and in the year ending on 31 December 2014, entries in the value of tangible fixed assets, depreciation and accumulated impairment losses were as follows:

	Land and buildings	Equipment	Other tangible fixed Assets	Tangible Assets in progress (1)	Total
1 January 2014
Cost	137.645.431	69.148.910	15.714.983	2.246.141	224.755.467
Accumulated depreciation	31.624.056	52.577.587	12.909.260	-	97.110.902
Accumulated impairment	5.846.597	615.812	62.515	-	6.524.924
Net amount	100.174.778	15.955.512	2.743.209	2.246.141	121.119.640
31 December 2014
Initial net amount	100.174.778	15.955.512	2.743.209	2.246.141	121.119.640
Changes in consolidat perimeter	-	-	-	-	-
Currency conversion	420.771	103.958	18.384	148.796	691.909
Additions	8.000.737	3.456.236	1.702.727	9.231.887	22.391.587
Decreases	277.608	160.181	3.745	17	441.551
Transfers	2.056.779	-	574	-2.061.943	-4.590
Depreciation in the year	3.425.120	3.991.117	814.494	-	8.230.731
Deprec. by changes in the perim.	-	-	-	-	-
Impairment in the year	3.416.264	-	-	-	3.416.264
Impairment reversion	-	-	-	-	-
Final net amount	103.534.073	15.364.408	3.646.655	9.564.864	132.110.000
31 December 2014
Cost	145.874.413	70.718.503	17.057.427	9.564.864	243.215.209
Accumulated depreciation	34.496.057	54.791.463	13.348.258	-	102.635.777
Accumulated impairment	7.844.284	562.633	62.515	-	8.469.432
Net amount	103.534.073	15.364.408	3.646.655	9.564.864	132.110.000
	Land and buildings	Equipment	Other tangible fixed Assets	Tangible Assets in progress (1)	Total
30 September 2015
Initial net amount	103.534.073	15.364.408	3.646.655	9.564.864	132.110.000
Changes in consolidat perimeter	-	-	-	-	-
Currency conversion	-1.682.819	-371.364	-85.963	-905.886	-3.046.032
Additions	7.838.501	2.168.033	1.164.390	640.818	11.811.742
Decreases	63.908	106.716	4.604	0	175.227
Transfers	4.732.186	1.355.596	621.077	-6.635.634	73.224
Depreciation in the year	2.798.423	3.077.432	613.356	-	6.489.211
Deprec. by changes in the perim.	-	-	-	-	-
Impairment in the year	-	-	-	-	-
Impairment reversion	-	-	-	-	-
Final net amount	111.559.610	15.332.525	4.728.199	2.664.162	134.284.496
30 September 2015
Cost	153.800.360	72.337.207	18.512.936	2.664.162	247.314.667
Accumulated depreciation	35.656.310	56.498.800	13.736.044	-	105.891.153
Accumulated impairment	6.584.441	505.883	48.694	-	7.139.018
Net amount	111.559.610	15.332.525	4.728.199	2.664.162	134.284.496

(1) changes in 2014 and 2015 are due, mainly, to KFC restaurants in Angola.

Investments for the year 2014 and 2015 on fixed assets in the amount of about, respectively, 13 and 11 million euros are related to the opening of new units and renovation of the existing ones, in Portugal and in Spain. The balance of the end of the period refers essentially to units Burger King to open.

8. INTANGIBLE ASSETS AND GOODWILL

Goodwill and intangible assets are broken down as follows:

	Sep-15	Dec-14
Goodwill	40.594.588	40.594.588
Intangible assets	13.672.625	13.493.705
	54.267.213	54.088.293

In the nine months period ended 30 September 2015 and in the year ending on 31 December 2014, entries in the value of intangible assets, amortization and accumulated impairment losses were as follows:

		Industrial	Other intangible	Intangible Assets in
	Goodwill	property	Assets	progress (1)	Total
1 January 2014
Cost	42.370.687	21.249.053	5.296.349	2.410.920	71.327.009
Accumulated amortization	-	7.488.729	4.933.428	-	12.422.157
Accumulated impairment	1.861.678	1.210.397	70.110	-	3.142.185
Net amount	40.509.009	12.549.927	292.811	2.410.920	55.762.668
31 December 2014
Initial net amount	40.509.009	12.549.927	292.811	2.410.920	55.762.668
Changes in consolidat. perimeter	-	-	-	-	-
Currency conversion	-	47.787	20	17.895	65.702
Additions	85.579	924.064	39.904	62.763	1.112.310
Decreases	-	5.023	2.103	-	7.126
Transfers	-	-699.941	699.941	-3.608	-3.608
Amortization in the year	-	1.118.603	421.851	-	1.540.454
Amortiz. by changes in the perimeter	-	-	-	-	-
Impairment in the year	-	1.301.200	-	-	1.301.200
Impairment reversion	-	-	-	-	-
Final net amount	40.594.588	10.397.011	608.722	2.487.970	54.088.292
31 December 2014
Cost	42.456.266	21.231.044	5.969.250	2.487.970	72.144.530
Accumulated amortization	-	8.322.510	5.290.418	-	13.612.928
Accumulated impairment	1.861.678	2.511.522	70.110	-	4.443.310
Net amount	40.594.588	10.397.012	608.722	2.487.970	54.088.293

	Goodwill	Industrial property	Other intangible Assets	Intangible Assets in progress (1)	Total
30 September 2015
Initial net amount	40.594.588	10.397.012	608.722	2.487.970	54.088.293
Changes in consolidat. Perimeter	-	-	-	-	-
Currency conversion	-	-90.037	-	-43.510	-133.547
Additions	-	1.269.248	64.844	80.985	1.415.077
Decreases	-	16.530	3.589	-	20.119
Transfers	-	66.401	-	-62.762	3.639
Amortization in the year	-	827.703	258.425	-	1.086.128
Amortiz. by changes in the perimeter	-	-	-	-	-
Impairment in the year	-	-	-	-	-
Impairment reversion	-	-	-	-	-
Final net amount	40.594.588	10.798.391	411.552	2.462.683	54.267.215
30 September 2015
Cost	42.456.266	22.374.459	5.945.715	2.462.683	73.239.123
Accumulated amortization	-	9.066.114	5.494.348	-	14.560.462
Accumulated impairment	1.861.678	2.509.954	39.815	-	4.411.447
Net amount	40.594.588	10.798.391	411.552	2.462.683	54.267.215

(1) intangible assets in progress balance refers mainly to the 3 new concessions yet to be open, in service areas of the following motorways: Guimarães, Fafe and Paredes. These service areas are still in the design stage and waiting for platforms delivery. It is contractually expected the refund of the amount paid, corresponding to the contract beginning platforms delivery, or full refund in case the final decision is not to build.

Industrial property includes group's concessions and territorial rights.

Goodwill is broken down as shown bellow:

	Sep-15	Dec-14
Restaurants	11.104.988	11.104.988
Counters	25.349.831	25.349.831
Concessions and Catering	3.874.469	3.874.469
Other, write off and adjustments	265.300	265.300
	40.594.588	40.594.588

9. INCOME PER SHARE

Income per share in the nine months period ended 30 September 2015 and 2014 was calculated as follows:

	Sep-15	Sep-15
Profit payable to shareholders	9.307.049	6.968.528
Mean weighted number of ordinary shares issued	20.000.000	20.000.000
Mean weighted number of own shares	-2.000.000	-2.000.000
	18.000.000	18.000.000
Basic earnings per share (€ per share)	0,52	0,39
Earnings diluted per share (€ per share)	0,52	0,39
Number of own shares at the end of the year	2.000.000	2.000.000

10. DIVIDENDS

At the General Meeting of 30th April 2015, the company decided to pay a gross dividend of 0,055 euros per share (0,055 euros in 2014), representing a total value of 990.000 euros for outstanding shares (990.000 euros in 2014), settled on May 29th, 2015.

11. CONTINGENT ASSETS AND LIABILITIES

The group has contingent liabilities regarding bank and other guarantees and other contingencies related with its business operations (as licensing, advertising fees, food hygiene and safety and employees, and the rate of success of these processes is historically high in Ibersol). No significant liabilities are expected to arise from the said contingent liabilities.

On 30th September 2015 and 31st December 2014, responsibilities not recorded by the companies and included in the consolidation consist mainly of bank guarantees given on their behalf, as shown below:

	Sep-15	Dec-14
Bank guarantees	1.788.189	1.884.411

Bank guarantees are related mainly to concessions and rents.

On early October 2013, a joint administrative action against the Portuguese State, was brought by the subsidiary Iberusa Hotelaria e Restauração, S.A., whose cause of action falls in extensive property damage caused by the current and future implementation of Iberusa signed contracts under the Public-Private Partnerships, concerning several highway concessions where Iberusa explores, in different service areas, several establishments, under the various sub-conceded contracts.

12. COMMITMENTS

No investments had been signed on the Balance Sheet date which had not taken place yet.

13. IMPAIRMENT

Changes in the nine months period ended 30 September 2015 and in the year ending on 31 December 2014, under the heading of asset impairment losses were as follows:

	Sep-15
			Impairment
	Starting balance	Cancellation	assets disposals	Losses in the Year	Impairment reversion	Closing balance
Tangible fixed assets	8.469.432	-	-1.330.414	-	-	7.139.018
Consolidation differences	1.861.678	-	-	-	-	1.861.678
Intangible assets	2.581.631	-	-31.862	-	-	2.549.769
Stocks	74.981	-	-	-	-	74.981
Other current assets	1.386.567	-	-	72.035	-50.175	1.408.427
Other non current assets	158.512	-	-	-	-	158.512
	14.532.802	-	-1.362.276	72.035	-50.175	13.192.385

			Dec-14
			Impairment
	Starting balance	Cancellation	assets disposals	Losses in the Year	Impairment reversion	Closing balance
Tangible fixed assets	6.524.924	-	-1.471.757	3.416.264	-	8.469.432
Consolidation differences	1.861.678	-	-	-	-	1.861.678
Intangible assets	1.280.506	-	-75	1.301.200	-	2.581.631
Stocks	74.981	-	-	-	-	74.981
Other current assets	1.167.468	-	-	262.543	-43.444	1.386.567
Other non current assets	-	-	-	158.512	-	158.512
	10.909.557	-	-1.471.832	5.138.520	-43.444	14.532.802

14. FINANCIAL RISK MANAGEMENT

14.1 Financial risk factors

The group's activities are exposed to a number of financial risk factors: market risk (including currency exchange risk, fair value risk associated to the interest rate and price risk), credit risk, liquidity risk and cash flow risks associated to the interest rate. The group maintains a risk management program that focuses its analysis on financial markets to minimise the potential adverse effects of those risks on the group's financial performance.

Financial risk management is headed by the Financial Department based on the policies approved by the Board of Directors. The treasury identifies, evaluates and employs financial risk hedging measures in close cooperation with the group's operating units. The Board provides principles for managing the risk as a whole and policies that cover specific areas, such as the currency exchange risk, the interest rate risk, the credit risk and the investment of surplus liquidity.

a) Market risk

i) Currency exchange risk

The currency exchange risk is very low, since the group operates mainly in the Iberian market. Bank loans are mainly in euros and acquisitions outside the Euro zone are of irrelevant proportions.

Although the Group holds investments outside the euro-zone in external operations, in Angola, although the reduced size of the investment, the low oil price is condition a shortage of foreign currency in Angola and the depreciation of Kwanza is a risk to consider. Angolan branch loans in the amount of 2.125.000 USD does not provide material exposure to currency exchange rate due to its reduced amount and to the strong correlation between USA dollar and local currency. The remaining loans are in local currency, the same as the revenues. Mainly commercial liabilities in foreign currency amount to 1.579.639 USD and 6.507.370 EUR.

Based on simulations performed on September 30, 2015, a decline of over 5% AOA, keeping everything else constant, would have a negative impact on net income for the period of 350 thousand euros

Currency exchange rate used for conversion of the transactions and balances denominated in Kwanzas, were respectively:

Sep-15
Euro exchange rates	(x	Rate on September,	Average interest rate
foreign currency per 1 Euro)		30 2015	September 2015
Kwanza de Angola (AOA)		152,346	130,634
Dec-14
Euro exchange rates	(x	Rate on December,	Average interest rate
foreign currency per 1 Euro)		31 2014	year 2014
Kwanza de Angola (AOA)		124,984	131,044

ii) Price risk

The group is not greatly exposed to the merchandise price risk.

iii) Interest rate risk (cash flow and fair value)

Since the group does not have remunerated assets earning significant interest, the profit and cash flow from investment activities are substantially independent from interest rate fluctuations.

The group's interest rate risk follows its liabilities, in particular long-term loans. Loans issued with variable rates expose the group to the cash flow risk associated to interest rates. Loans with fixed rates expose the group to the risk of the fair value associated to interest rates. At the current interest rates, in financing of longer maturity periods the group has a policy of totally or partially fixing the interest rates.

The unpaid debt bears variable interest rate, part of which has been the object of an interest rate swap. The interest rate swap to hedge the risk of a 10 million euros (commercial paper programmes) loan has the maturity of the underlying interest and the repayment plan identical to the terms of the loan.

Based on simulations performed on 30 September 2015, an increase of 100 basis points in the interest rate, maintaining other factors constant, would have a negative impact in the net profit of 127 thousand euros.

b) Credit risk

The group's main activity covers sales paid in cash or by debit/credit cards. As such, the group does not have relevant credit risk concentrations. It has policies ensuring that sales on credit are performed to customers with a suitable credit history. The group has policies that limit the amount of credit to which these customers have access.

c) Liquidity risk

Liquidity risk management implies maintaining a sufficient amount of cash and bank deposits, the feasibility of consolidating the floating debt through a suitable amount of credit facilities and the capacity to liquidate market positions. Treasury needs are managed based on the annual plan that is reviewed every quarter and adjusted daily. Related with the dynamics of the underlying business operations, the group's treasury strives to maintain the floating debt flexible by maintaining credit lines available.

The Group considers that the short-term bank loans are due on the renewal date and that the commercial paper programmes matured on the dates of denunciation.

At the end of the third quarter, current liabilities reached 66 million euros, compared with 37 million euros in current assets. This disequilibrium is, on one hand, a financial characteristic of this business and, on the other hand, due to the use of commercial paper programmes in witch the Group considers the maturity date as the renewal date, regardless of its initial stated periods. In order to ensure liquidity of the short term debt it is expected in the year 2015 the renewal of the commercial paper programmes (10.000.000 euros). However, in case of need, cash and cash equivalents and cash flows from operations are sufficient to settle current loans.

On September 30, 2015, the use of short term liquidity cash flow support was of 5%. Investments in term deposits of 2,2 million match 6% of liabilities paid.

The following table shows the Group financial liabilities (relevant items), considering contractual cash-flows:

	to September 2016	from September 2016 to 2021
Bank loans and overdrafts	4.784.663	11.879.937
Commercial paper	10.000.000	9.500.000
Suppliers of fixed assets c/ a	5.530.453	-
Suppliers c/ a	21.624.124	-
Leasing suppliers	93.410	276.624
Other creditors	11.645.447	246.925
Accrued costs	10.736.134	-
	Total 64.414.231	21.903.486

d) Capital risk

The company aims to maintain an equity level suitable to the characteristics of its main business (cash sales and credit from suppliers) and to ensure continuity and expansion. The capital structure balance is monitored based on the gearing ratio (defined as: net remunerated debt / net remunerated debt + equity) in order to place the ratio within a 35%-70% interval.

On 30th September 2015 the gearing ratio was of 11% and on 31st December 2014 of 17%, as follows:

		Set-15	Dec-14
Bank loans		36.534.634	38.831.817
Cash and bank deposits		-19.665.379	-13.566.782
Net indebtedness		16.869.255	25.265.035
Equity		133.606.432	126.313.585
Total capital		150.475.687	151.578.620
	Gearing ratio	11%	17%

Given the current constraints of the financial markets and despite the goal of placing the gearing ratio in the range 35% -70%, prudently, in September 2015 we have only a 11% ratio.

14.2 Estimated fair value

The fair value of financial instruments commercialised in active markets (such as publicly negotiated derivatives, securities for negotiation and available for sale) is determined based on the listed market prices on the consolidated statement of financial position date. The market price used for the group's financial assets is the price received by the shareholders in the current market. The market price for financial liabilities is the price to be paid in the current market.

The nominal value of accounts receivable (minus impairment adjustments) and accounts payable is assumed to be as approximate to its fair value. The fair value of financial liabilities is estimated by updating future cash flows contracted at the current market interest rate that is available for similar financial instruments.

15. OTHER CURRENT ASSETS AND LIABILITIES

Other current assets and liabilities on 30 September 2015 and 31st December 2014 are broken down as follows:

Other current assets

	Sep-15	Dec-14
Clients	3.905.710	3.733.279
State and other public entities	157.345	219.434
Other debtors	3.769.544	3.331.421
Advances to suplliers	819.072	321.639
Accruals and income	808.798	1.042.710
Deferred costs	2.019.113	1.693.763
Other current assets	11.479.582	10.342.246
Accumulated impairment losses	1.418.498	1.386.568
	10.061.084	8.955.678
Other current liabilities
	Sep-15	Dec-14
Other creditors (1)	4.188.863	1.603.073
State and other public entities	5.906.943	5.587.781
Deferred income	1.438.938	1.374.807
	11.534.744	8.565.661

(1) unlike 2014, on 2015 wages of the month of September, were paid in early October 2015 (2.464.515 euros), due to the change of procedures in the payroll period (from the 26 of n-1 month to the 25 of n month changed to 01-30 of month n), thereby fulfilling with all legal requirements of the Social Security services.

16. NET FINANCING COST

Net financing cost on 30th September 2015 and 31st December 2014 are broken down as follows:

	2015	2014
Interest paid	842.264	1.105.226
Interest earned	-27.302	-83.720
Currency exchange differences (1)	2.508.943	-248.590
Payment discounts obtained	-6.249	-4.469
Other financial costs and income	536.436	450.999
	3.854.092	1.219.446

(1) in the second quarter, the devaluation of Kwanza (AOA) against major currencies, with particular emphasis on the USD gave potential unfavorable exchange differences in Angola for updating of assets and liabilities in foreign currency.

17. TRANSACTIONS WITH RELATED PARTIES

The following entities have a qualifying shareholding, with over 10% of voting rights in the group:

• António Carlos Vaz Pinto de Sousa – 1.400 shares (*)

• António Alberto Guerra Leal Teixeira 1.400 shares (*)

• Bestinver Gestion 2.848.917 shares
• ATPS SGPS, SA 983.701 shares
• IES SGPS, SA 9.998.000 shares

(*) each holds 50% of ATPSII- SGPS, which in turn holds directly or indirectly, ATPS –SGPS and IES-SGPS.

After deducting own shares, there are still 23% of shares dispersed among other shareholders.

- UQ Consult, S.A. – joint undertakings

With regard to the balances and transactions with related parties, the overall value of the Group balances and transactions with the joint venture UQ Consult was, respectively, 725.076 e 1.757.828 euros.

Remuneration and benefits assigned to directors

The company shareholder ATPS-S.G.P.S., S.A., which signed a service-rendering contract with the subsidiary Ibersol Restauração, SA, provides services of administration and management to the group. ATPS-S.G.P.S., S.A.. And, under contract with Ibersol Restauração, S.A., has the obligation to ensure that its administrators, António Carlos Vaz Pinto de Sousa and Antonio Alberto Guerra Leal Teixeira, manage the group without incur in any additional charge. The company does not pay directly to its administrators any remuneration.

18. SUBSEQUENT EVENTS

There were no subsequent events as of 30 September 2015 that may have a material impact on these financial statements.

19. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved by the Board of Directors and authorised for emission on 17th November 2015.