259400T6ZDQIMDBGDN42-20241231-0-en

AMREST GROUP Consolidated Financial Statements

for the the year ended 31 December 2024

Contents



Consolidated income statement for the year ended 31 December 2024..............................................................................................................	5
Consolidated statement of comprehensive income for the year ended 31 December 2024 .............................................................................	6
Consolidated statement of financial position as at 31 December 2024 ................................................................................................................	7
Consolidated statement of cash flows for the year ended 31 December 2024 ...................................................................................................	8
Consolidated statement of changes in equity for the year ended 31 December 2024 .......................................................................................	9
Notes to the Consolidated Financial Statements ......................................................................................................................................................	10
1. General information on AmRest Group .........................................................................................................................................................	10
2. Group Structure ................................................................................................................................................................................................	11
3. Basis of preparation ........................................................................................................................................................................................	12
4. Use of judgements and estimates ..................................................................................................................................................................	13
5. Segment reporting ............................................................................................................................................................................................	14
6. Revenues ...........................................................................................................................................................................................................	15
7. Operating costs and losses .............................................................................................................................................................................	16
8. Other operating income and expenses .........................................................................................................................................................	16
9. Finance income and costs ...............................................................................................................................................................................	16
10. Income taxes ...................................................................................................................................................................................................	17
11. Property, plant and equipment ......................................................................................................................................................................	19
12. Leases ..............................................................................................................................................................................................................	20
13. Intangible assets .............................................................................................................................................................................................	21
14. Goodwill ............................................................................................................................................................................................................	22
15. Net impairment of non-financial assets .......................................................................................................................................................	23



16. Trade and other receivables .........................................................................................................................................................................	27
17. Cash and cash equivalents ...........................................................................................................................................................................	27
18. Other assets ....................................................................................................................................................................................................	27
19. Equity ................................................................................................................................................................................................................	28
20. Non-controlling interests ................................................................................................................................................................................	30
21. Earnings per share .........................................................................................................................................................................................	32
22. Loans and borrowings ....................................................................................................................................................................................	32
23. Share-based payments ..................................................................................................................................................................................	34
24. Employee information ....................................................................................................................................................................................	36
25. Provisions ........................................................................................................................................................................................................	37
26. Trade payables and other liabilities ............................................................................................................................................................	38
27. Financial instruments .....................................................................................................................................................................................	38
28. Tax risks and uncertain tax positions ...........................................................................................................................................................	40
29. Future commitments and contingent liabilities ...........................................................................................................................................	41
30. Assets held for sale and discontinued operations .....................................................................................................................................	41
31. Transactions with related entities .................................................................................................................................................................	43
32. Audit fees .........................................................................................................................................................................................................	44
33. Events after the reporting period ..................................................................................................................................................................	44
34. Material accounting policies ..........................................................................................................................................................................	45
a. Basis of consolidation ............................................................................................................................................................................	45
b. Foreign currency .....................................................................................................................................................................................	45
c. Non-current assets held for sale and discontinued operations ........................................................................................................	46
d. Revenues .................................................................................................................................................................................................	46
e. Government grants .................................................................................................................................................................................	47
f. Income tax .................................................................................................................................................................................................	47
g. Leases ......................................................................................................................................................................................................	48
h. Property, plant and equipment ..............................................................................................................................................................	48
i. Franchise, license agreements and other fees ...................................................................................................................................	49
j. Intangible assets ......................................................................................................................................................................................	49
k. Goodwill ....................................................................................................................................................................................................	50
l. Impairment of non-financial assets ........................................................................................................................................................	50
m. Investment properties ............................................................................................................................................................................	51
n. Inventories ...............................................................................................................................................................................................	51
o. Cash and cash equivalents ...................................................................................................................................................................	51
p. Financial assets ......................................................................................................................................................................................	52
q. Financial liabilities ...................................................................................................................................................................................	53
r. Derivative financial instruments and hedge accounting ....................................................................................................................	53
s. Share-based payments and employee benefits .................................................................................................................................	54
t. Provisions ..................................................................................................................................................................................................	54
u. Equity ........................................................................................................................................................................................................	55
35. Changes in accounting policies, reclassification and restatement of comparatives summary ...........................................................	55
36. Standards issued but not yet effective ........................................................................................................................................................	56
Signatures of the Board of Directors ....................................................................................................................................................................	57


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Consolidated income statement for the year ended 31 December 2024


		YEAR ENDED
	Note	31 December 2024	31 December 2023
Continuing operations
Restaurant sales	5,6	2,397.0	2,265.9
Franchise and other sales		159.3	165.7
Total revenue	5 ,6	2,556.3	2,431.6
Restaurant expenses:
Food and merchandise	7	(656.3)	(644.3)
Payroll and other employee benefits	7	(606.4)	(555.3)
Royalties	7	(121.3)	(112.5)
Occupancy, depreciation and other operating expenses	7	(725.1)	(682.4)
Franchise and other expenses	7	(124.1)	(128.9)
Gross Profit		323.1	308.2
General and administrative expenses	7	(176.8)	(170.6)
Net impairment losses on financial assets	27	(1.3)	(2.6)
Net impairment losses on non-financial assets	15	(50.9)	(38.6)
Other operating income/expenses	8	24.1	7.1
Profit/loss from operations		118.2	103.5
Finance income	9	3.7	9.0
Finance costs	9	(87.5)	(63.5)
Profit/loss before tax		34.4	49.0
Income tax expense	10	(20.9)	(4.6)
Profit/loss for the period from continuing operations		13.5	44.4

Discontinued operations
Profit/loss for the period from discontinued operation	30	-	6.5

Profit/loss for the period		13.5	50.9
Attributable to:
Shareholders of the parent		8.5	44.9
Non-controlling interests		5.0	6.0


		YEAR ENDED
	Note	31 December 2024	31 December 2023
Earnings per share for profit/loss from continuing operations attributable to the ordinary equity holders of the company:
Basic earnings per ordinary share in EUR	21	0.04	0.18
Diluted earnings per ordinary share in EUR	21	0.04	0.18
Earnings per share for profit/loss attributable to the ordinary equity holders of the company:
Basic earnings per ordinary share in EUR	21	0.04	0.21
Diluted earnings per ordinary share in EUR	21	0.04	0.21

The above consolidated income statement should be read in conjunction with the accompanying notes.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Consolidated statement of comprehensive income for the year ended

31 December 2024


		YEAR ENDED
	Note	31 December 2024	31 December 2023
Profit/loss for the period		13.5	50.9
Other comprehensive income/loss
Exchange differences on translation of disposed operation		-	(8.4)
Exchange differences reclassified on loss of control	30	-	28.6
Exchange differences on translation of foreign operations		(2.8)	(7.1)
Net investment hedges	19	0.5	9.5
Income tax related to net investment hedges	19	-	(1.7)
Other comprehensive income/loss for the period		(2.3)	20.9
Total comprehensive income/loss for the period		11.2	71.8
Attributable to:
Shareholders of the parent		6.2	65.5
Non-controlling interests		5.0	6.3

Total comprehensive income/loss for the period attributable to owners arises from:
Continuing operations		11.2	45.1
Discontinued operations		-	26.7

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Consolidated statement of financial position as at 31 December 2024


	Note	31 December 2024	31 December 2023
Assets
Property, plant and equipment	11	649.6	580.4
Right-of-use assets	12	896.3	825.6
Goodwill	14	212.5	253.3
Intangible assets	13	238.2	236.7
Investment properties	18	1.2	1.2
Other non-current assets	18	24.3	23.0
Deferred tax assets	10	57.6	55.0
Total non-current assets		2,079.7	1,975.2
Inventories	18	33.1	34.9
Trade and other receivables	16 , 27	76.1	102.4
Income tax receivables		2.3	1.3
Other current assets	18	8.6	10.4
Cash and cash equivalents	17	139.6	227.5
Assets classified as held for sale	30	29.0	-
Total current assets		288.7	376.5
Total assets		2,368.4	2,351.7
Equity
Share capital	19	22.0	22.0
Reserves	19	170.8	174.1
Retained earnings		187.0	193.7
Translation reserve	19	(7.2)	(4.4)
Equity attributable to shareholders of the parent		372.6	385.4
Non-controlling interests	20	15.8	15.3
Total equity		388.4	400.7
Liabilities
Loans and borrowings	22 , 27	580.9	571.4
Lease liabilities	12	781.1	715.9
Provisions	25	17.9	17.8
Deferred tax liability	10	34.9	35.2
Other non-current liabilities and employee benefits	26	7.4	6.2
Total non-current liabilities		1,422.2	1,346.5
Loans and borrowings	22 , 27	36.5	52.5
Lease liabilities	12	188.8	171.1
Provisions	25	7.3	6.2
Trade payables and other liabilities	26	308.8	362.9
Income tax liabilities		6.5	11.8
Liabilities directly associated to assets held for sale	30	9.9	-
Total current liabilities		557.8	604.5
Total liabilities		1,980.0	1,951.0
Total equity and liabilities		2,368.4	2,351.7

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Consolidated statement of cash flows for the year ended 31 December 2024


		YEAR ENDED
	Note	31 December 2024	31 December 2023
Cash flows from operating activities
Profit/loss for the period		13.5	50.9
Adjustments for:
Amortisation and depreciation		260.0	243.1
Net interest expense		80.4	59.1
Foreign exchange result		3.8	(4.0)
Result on disposal of property, plant and equipment and intangibles		(0.6)	(0.9)
Result on sale of discontinued operation	30	-	(3.5)
Impairment of non-financial assets		50.9	38.6
Share-based payments		7.2	6.0
Tax expense		20.9	5.5
Other		(1.1)	(1.9)
Working capital changes:	17
Change in trade and other receivables and other assets		17.6	(14.0)
Change in inventories		(1.0)	1.0
Change in payables and other liabilities		(14.3)	8.3
Change in provisions and employee benefits		0.7	0.7
Cash generated from operations		438.0	388.9
Income tax paid		(29.5)	(18.4)
Net cash from operating activities		408.5	370.5
Cash flows from investing activities
Net cash outflows on acquisition		(0.3)	(0.9)
Net proceeds from the sale of the business	30	-	61.6
Proceeds from the sale of property, plant and equipment, and intangible assets		1.6	-
Purchase of property, plant and equipment		(207.1)	(185.9)
Purchase of intangible assets		(8.7)	(11.2)
Proceeds from investment property		-	3.4
Net cash from investing activities		(214.5)	(133.0)
Cash flows from financing activities
Purchase of treasury shares		(10.5)	(6.6)
Proceeds from loans and borrowings	22	42.5	615.4
Repayment of loans and borrowings	22	(51.6)	(636.6)
Payments of lease liabilities including interests paid	12	(179.0)	(168.8)
Transaction costs paid	22	(8.2)	(4.5)
Interest paid	22	(44.9)	(35.2)
Interest received		2.9	4.9
Dividends paid to equity holders of the parent	19	(15.2)	-
Dividends paid to non-controlling interest		(4.5)	(2.1)
Net cash from financing activities		(268.5)	(233.5)
Net change in cash and cash equivalents		(74.5)	4.0
Effect of foreign exchange rate movements		-	(6.1)
Balance sheet change of cash and cash equivalents		(74.5)	(2.1)
Cash and cash equivalents, beginning of period		227.5	229.6
Cash and cash equivalents presented in the statement of financial position	17	139.6	227.5
Cash and cash equivalents presented as assets classified as assets held for sale	30	13.4	-
Total cash and cash equivalents, end of period		153.0	227.5

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Consolidated statement of changes in equity for the year ended 31 December 2024


		ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT
	Note	Share capital	Reserves	Retained earnings	Translation reserve	Total	Non- controlling interest	Total equity
As of 1 January 2024		22.0	174.1	193.7	(4.4)	385.4	15.3	400.7
Profit/loss for the period		-	-	8.5	-	8.5	5.0	13.5
Other comprehensive income/loss		-	0.5	-	(2.8)	(2.3)	-	(2.3)
Total comprehensive income/loss		-	0.5	8.5	(2.8)	6.2	5.0	11.2
Dividends paid to equity holders of the parent	19	-	-	(15.2)	-	(15.2)	-	(15.2)
Dividends to non-controlling interests	19	-	-	-	-	-	(4.5)	(4.5)
Purchases of treasury shares	19	-	(10.5)	-	-	(10.5)	-	(10.5)
Share-based payments	19	-	6.7	-	-	6.7	-	6.7
As of 31 December 2024		22.0	170.8	187.0	(7.2)	372.6	15.8	388.4


		ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT
	Note	Share capital	Reserves	Retained earnings	Translation reserve	Total	Non- controlling interest	Total equity
As of 1 January 2023		22.0	166.5	148.8	(17.2)	320.1	11.1	331.2
Profit/loss for the period		-	-	44.9	-	44.9	6.0	50.9
Other comprehensive income/loss		-	7.8	-	12.8	20.6	0.3	20.9
Total comprehensive income/loss		-	7.8	44.9	12.8	65.5	6.3	71.8
Dividends to non-controlling interests	19	-	-	-	-	-	(2.1)	(2.1)
Purchases of treasury shares	19	-	(6.6)	-	-	(6.6)	-	(6.6)
Share-based payments	19	-	6.4	-	-	6.4	-	6.4
As of 31 December 2023		22.0	174.1	193.7	(4.4)	385.4	15.3	400.7

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Notes to the Consolidated Financial Statements

1. General information on AmRest Group

AmRest Holdings SE (“The Company”, “AmRest”) was incorporated in the Netherlands in October 2000. Since 2008 the

Company operates as European Company (Societas Europaea, SE). The company is domiciled in Spain.

Paseo de la Castellana 163, 28046 Madrid, Spain is the Company’s registered office as of 31 December 2024 and has

not changed during the year 2024.

Hereinafter the Company and its subsidiaries shall be referred to as the “Group” or “AmRest Group”.

The shares of AmRest Holdings SE are listed in the Warsaw Stock Exchange (“WSE”) and in all four Spanish stock

exchanges through the Spanish Automated Quotation System (Sistema de Interconexión Bursátil – SIBE).

The Group is the largest independent chain restaurant operator in Central and Eastern Europe. The Group is also

conducting its operations in Western Europe and China. The Group’s principal place of business is Europe.

The Group operates Kentucky Fried Chicken (“KFC”), Pizza Hut (“PH”), Burger King (“BK”) and Starbucks (“SBX”)

restaurants through its subsidiaries in Poland, the Czech Republic (hereinafter Czechia), Hungary, Slovakia, Serbia,

Croatia, Bulgaria, Romania, Germany, France, Austria, Slovenia and Spain, on the basis of franchise rights granted.

Starting from October 2016 the Group as a master-franchisee has the right to grant a license to third parties to operate

Pizza Hut Express and Pizza Hut Delivery restaurants (sub-franchise) in countries of Central and Eastern Europe, while

ensuring a certain share of restaurants operated directly by AmRest. Since November 2024, AmRest does not operate

Pizza Hut restaurants in the French market. In December 2024 the Group signed an agreement to separate the business

operations with SCM Sp. z o.o. (“SCM”) that is a majority owned subsidiary. In 2023 AmRest sold its KFC business in

Russia. Further details are presented in note 30.

In Spain, Portugal and Andorra the Group operates its own brand La Tagliatella. In China the Group operates its own

brand Blue Frog. Both businesses are based on operating equity and franchise restaurants supported by the central

kitchens located in Spain (La Tagliatella) and in China (Blue Frog) that produce and deliver products to the whole

network.

In 2018 the Group acquired the Bacoa and Sushi Shop brands, as a result of which it operates licensed restaurants in

Spain (Bacoa) and proprietary and franchise Sushi Shop restaurants in France, Belgium, Spain, Switzerland, United

Kingdom, Luxembourg, United Arab Emirates and Saudi Arabia. Bacoa is a primarily premium burger concept in Spain

and Sushi Shop is one of the major operators of the European chains of restaurants for sushi, sashimi and other

Japanese specialties.

The table below summarizes key types of AmRest Group activities including area of that activities and a franchisor name

(if applicable) as of 31 December 2024.


ACTIVITY PERFORMED THROUGH OWN BRANDS
Brand	Franchisor	Area of the activity
La Tagliatella	Own brand	Spain, Portugal
Blue Frog	Own brand	China
Sushi Shop	Own brand	France, Spain, Switzerland, Luxembourg, UK
ACTIVITY WHERE AMREST IS A FRANCHISOR (OWN BRAND OR BASED ON MASTER-FRANCHISE AGREEMENTS)
Brand	Franchisor	Area covered by the agreement
La Tagliatella	Own brand	Spain, Andorra
Blue Frog	Own brand	China
Sushi Shop	Own brand	France3, Belgium, United Arab Emirates, Saudi Arabia, UK
Bacoa1	Own brand	Spain
Pizza Hut Express, Delivery	Pizza Hut Europe Limited, Pizza Hut Europe S.a.r.l	Hungary, Czechia, Poland, Slovakia, Slovenia
ACTIVITY WHERE AMREST IS A FRANCHISEE
Brand	Franchisor	Area covered by the agreement
KFC	YUM! Restaurants Europe Limited and its affiliates and ISHKFC GmbH	Poland, Czechia, Hungary, Bulgaria, Serbia, Croatia, Spain, Germany, France, Austria, Slovenia
Pizza Hut Dine-In	Pizza Hut Europe Limited	Poland
Pizza Hut Express, Delivery	Pizza Hut Europe Limited	Poland, Czechia, Hungary, Slovakia
Burger King	Burger King Europe GmbH, Rex Concepts BK Poland S.A,and Rex Concepts BK Czech S.R.O.	Poland, Czechia, Bulgaria, Slovakia, Romania
Starbucks 2	Starbucks Coffee International, Inc/Starbucks EMEA Ltd., Starbucks Manufacturing EMEA B.V.	Poland, Czechia, Hungary, Romania, Bulgaria, Germany, Slovakia, Serbia

1) Bacoa restaurants are currently operated under trademark license agreements.

2) AmRest, through AmRest Sp. z o.o. owns 82% and Starbucks owns 18% of the share capital of the companies in Poland (AmRest Coffee Sp. z o.o),

Czechia (AmRest Coffee s.r.o.) and Hungary (AmRest Kavezo Kft.). Upon occurrence of an event of default, both AmRest and Starbucks (as the case

may be, acting as non-defaulting shareholder) will have the option to purchase all of the shares of the other shareholder (the defaulting shareholder) in the

terms and conditions foreseen in the corresponding agreements. In the event of a deadlock, Starbucks will have, in the first place, the option to purchase

all the shares of AmRest and, if Starbucks does not exercise that option, AmRest will have the option to purchase all the shares of Starbucks, in the terms

and conditions foreseen in the corresponding agreements. In the event of a change of control in AmRest Holdings, Starbucks will have the right to

increase its participation in each of the companies up to 100%.

3) In October 2024, 21 franchisees of the French network sued Sushi Shop Management before the Paris Commercial Court, accusing it of contractual

breaches with respect to supplies, communication, know-how and assistance provided, which in their view are grounds for a request for the judicial

termination of their franchise agreements. Sushi Shop Management formally denies all the allegations made against it. Given the current state of the

dispute, there is a significant risk that some of these franchisees will leave the franchise network in the near future.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Where AmRest acts as a franchisee, the agreements are signed for individual restaurants to operate under a franchised

brand. The majority of the agreements are entered into for a 10-year period with the possibility of further extension. Under

the agreements AmRest is required to pay an agreed initial fee when the restaurant opens, and variable royalties and

marketing fees.

AmRest operates Starbucks stores under license agreements entered into per each country where the brand is present.

2. Group Structure

As of 31 December 2024 , the Group comprised the following subsidiaries:


Company name	Registered office	Parent/non-controlling undertaking	Owner-ship interest and total vote	Date of effective control
Holding activity
AmRest TAG S.L.U.	Madrid, Spain	AmRest Sp. z o.o.	100.00%	March 2011
AmRest China Group PTE Ltd	Singapore	AmRest Holdings SE	100.00%	December 2012
Bigsky Hospitality Group Ltd	Hong Kong, China	AmRest China Group PTE Ltd	100.00%	December 2012
New Precision Ltd	Birkirkara, Malta	AmRest China Group PTE Ltd	100.00%	December 2012
Horizon Consultants Ltd.	Birkirkara, Malta	AmRest China Group PTE Ltd	100.00%	December 2012
GM Invest SRL	Brussels, Belgium	AmRest TAG S.L.U.	100.00%	October 2018
Sushi Shop Group SAS	Courbevoie, France	GM Invest SRL	9.47%	October 2018
Sushi Shop Group SAS	Courbevoie, France	AmRest TAG S.L.U.	90.53%	October 2018
AmRest France SAS	Courbevoie, France	AmRest Holdings SE	100.00%	December 2018
Sushi Shop Management SAS	Courbevoie, France	Sushi Shop Group SAS	100.00%	October 2018
Sushi Shop Luxembourg SARL	Luxembourg	Sushi Shop Group SAS	100.00%	October 2018
Sushi Shop Switzerland SA	Fribourg, Switzerland	Sushi Shop Management SAS	100.00%	October 2018
Restaurant, franchise and master-franchise activity
AmRest Sp. z o.o.	Wroclaw, Poland	AmRest Holdings SE	100.00%	December 2000
AmRest s.r.o.	Prague, Czechia	AmRest Holdings SE	100.00%	December 2000
AmRest Kft	Budapest, Hungary	AmRest Sp. z o.o.	100.00%	June 2006
AmRest Coffee Sp. z o.o.	Wroclaw, Poland	AmRest Sp. z o.o.	82.00%	March 2007
AmRest Coffee Sp. z o.o.	Wroclaw, Poland	Starbucks Coffee International,Inc.	18.00%	March 2007
AmRest EOOD	Sofia, Bulgaria	AmRest Holdings SE	100.00%	April 2007
AmRest Coffee s.r.o.	Prague, Czechia	AmRest Sp. z o.o.	82.00%	August 2007
AmRest Coffee s.r.o.	Prague, Czechia	Starbucks Coffee International,Inc.	18.00%	August 2007
AmRest Kávézó Kft	Budapest, Hungary	AmRest Sp. z o.o.	82.00%	August 2007
AmRest Kávézó Kft	Budapest, Hungary	Starbucks Coffee International,Inc.	18.00%	August 2007
AmRest d.o.o.	Belgrade, Serbia	AmRest Sp. z o.o.	100.00%	October 2007
Restauravia Food S.L.U.	Madrid, Spain	AmRest TAG S.L.U.	100.00%	April 2011
Pastificio Service S.L.U.	Madrid, Spain	AmRest TAG S.L.U.	100.00%	April 2011
AmRest Adria d.o.o.	Zagreb, Croatia	AmRest Sp. z o.o.	100.00%	October 2011
AmRest GmbH i.l. 1	Cologne, Germany	AmRest TAG S.L.U.	100.00%	March 2012
AmRest Adria 2 d.o.o.	Ljubljana, Slovenia	AmRest Sp. z o.o.	100.00%	August 2012
Frog King Food&Beverage Management Ltd	Shanghai, China	Bigsky Hospitality Group Ltd	100.00%	December 2012
Blue Frog Food&Beverage Management (Shanghai) Ltd.	Shanghai, China	New Precision Ltd	100.00%	December 2012
Shanghai Kabb Western Restaurant Ltd	Shanghai, China	Horizon Consultants Ltd.	100.00%	December 2012
AmRest Skyline GmbH i.l. 2	Cologne, Germany	AmRest TAG S.L.U.	100.00%	October 2013
AmRest Coffee EOOD	Sofia, Bulgaria	AmRest Sp. z o.o.	100.00%	June 2015
AmRest Coffee S.R.L.	Bucharest, Romania	AmRest Sp. z o.o.	100.00%	June 2015
AmRest Food S.R.L.	Bucharest, Romania	AmRest Sp. z o.o.	100.00%	July 2019
AmRest Coffee SK s.r.o.	Bratislava, Slovakia	AmRest s.r.o.	99.00%	December 2015
AmRest Coffee SK s.r.o.	Bratislava, Slovakia	AmRest Sp. z o.o.	1.00%	December 2015
AmRest Coffee Deutschland	Munich, Germany	AmRest Kaffee Sp. z o.o.	23.00%	May 2016
Sp. z o.o. & Co. KG	Munich, Germany	AmRest TAG S.L.U.	77.00%	May 2016
AmRest DE Sp. z o.o. & Co. KG 5	Munich, Germany	AmRest Kaffee Sp. z o.o.	100.00%	December 2016
Kai Fu Food and Beverage Management (Shanghai) Co. Ltd	Shanghai, China	Blue Frog Food&Beverage Management Co. Ltd	100.00%	December 2016
Kai Fu Food and Beverage Management (Shanghai) Co. Ltd	Shanghai, China	Blue Frog Food&Beverage Management Co. Ltd	100.00%	December 2016
LTP La Tagliatella Portugal, Lda	Lisbon, Portugal	AmRest TAG S.L.U.	100.00%	February 2017
LTP La Tagliatella II Franchise Portugal, Lda 3	Lisbon, Portugal	AmRest TAG S.L.U.	100.00%	April 2019
AmRest AT GmbH	Vienna, Austria	AmRest Sp. z o.o.	100.00%	March 2017
AmRest Topco France SAS	Courbevoie, France	AmRest France SAS	100.00%	May 2017
AmRest Delco France SAS	Courbevoie, France	AmRest Topco France SAS	100.00%	May 2017
AmRest Opco SAS	Courbevoie, France	AmRest France SAS	100.00%	July 2017
AmRest Coffee SRB d.o.o.	Belgrade, Serbia	AmRest Holdings SE	100.00%	November 2017
AmRest Chamnord SAS	Courbevoie, France	AmRest Opco SAS	100.00%	March 2018


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


Company name	Registered office	Parent/non-controlling undertaking	Owner-ship interest and total vote	Date of effective control
AmRest SK s.r.o.	Bratislava, Slovakia	AmRest s.r.o.	100.00%	April 2018
AmRest Pizza GmbH 5	Munich, Germany	AmRest DE Sp. z o.o. & Co. KG	100.00%	June 2018
Sushi Shop Restauration SAS	Courbevoie, France	Sushi Shop Management SAS	100.00%	October 2018
Sushi House SA	Luxembourg	Sushi Shop Luxembourg SARL	100.00%	October 2018
Sushi Shop London Pvt LTD	London, UK	Sushi Shop Group SAS	100.00%	October 2018
Sushi Shop Belgique SA	Bruxelles, Belgium	Sushi Shop Group SAS	100.00%	October 2018
Sushi Shop Louise SA	Bruxelles, Belgium	Sushi Shop Belgique SA	100.00%	October 2018
Sushi Shop UK Pvt LTD	Charing, UK	Sushi Shop Group SAS	100.00%	October 2018
Sushi Shop Anvers SA	Bruxelles, Belgium	Sushi Shop Belgique SA	100.00%	October 2018
Sushi Shop Geneve SA	Geneva, Switzerland	Sushi Shop Switzerland SA	100.00%	October 2018
Sushi Shop Lausanne SARL	Lasanne, Switzerland	Sushi Shop Switzerland SA	100.00%	October 2018
Sushi Shop Madrid S.L.U.	Madrid, Spain	Sushi Shop Management SAS	100.00%	October 2018
Sushi Shop Zurich GMBH	Zurich, Switzerland	Sushi Shop Switzerland SA	100.00%	October 2018
Sushi Shop Nyon SARL	Nyon, Switzerland	Sushi Shop Switzerland SA	100.00%	October 2018
Sushi Shop Vevey SARL	Vevey, Switzerland	Sushi Shop Switzerland SA	100.00%	November 2019
Sushi Shop Fribourg SARL	Fribourg, Switzerland	Sushi Shop Switzerland SA	100.00%	November 2019
Sushi Shop Yverdon SARL	Yverdon, Switzerland	Sushi Shop Switzerland SA	100.00%	November 2019
Sushi Shop Morges SARL	Moudon, Switzerland	Sushi Shop Switzerland SA	100.00%	October 2020
AmRest Franchise Sp. z o.o.	Wrocław, Poland	AmRest Sp. z o.o.	100.00%	December 2018
Financial services and others for the Group
AmRest LLC	Wilmington, USA	AmRest Sp. z o.o.	100.00%	July 2008
AmRest Work Sp. z o.o.	Wroclaw, Poland	AmRest Sp. z o.o.	100.00%	March 2012
La Tagliatella SAS	Courbevoie, France	AmRest TAG S.L.U.	100.00%	March 2014
AmRest Kaffee Sp. z o.o.	Wroclaw, Poland	AmRest Sp. z o.o.	100.00%	March 2016
AmRest Estate SAS	Courbevoie, France	AmRest Opco SAS	100.00%	September 2017
AmRest Leasing SAS	Courbevoie, France	AmRest Opco SAS	100.00%	September 2017
AmRest Global S.L.U.	Madrid, Spain	AmRest Holdings SE	100.00%	September 2020
Supply services for restaurants operated by the Group
SCM Czech s.r.o.4	Prague, Czechia	SCM Sp. z o.o.	90.00%	March 2007
SCM Czech s.r.o.4	Prague, Czechia	Ondrej Razga	10.00%	March 2007
SCM Sp. z o.o.4	Warsaw, Poland	AmRest Sp. z o.o.	51.00%	October 2008
		R&D Sp. z o.o.	33.80%
		Beata Szafarczyk-Cylny	5.00%
		Zbigniew Cylny	10.20%
AmRest Foodservice Sp. z o.o.6	Wroclaw, Poland	AmRest Sp. z o.o.	100.00%	December 2024

1) On 25 November 2016 AmRest TAG S.L.U., the sole shareholder of AmRest GmbH, decided to liquidate this company. The liquidation process has not

been finished up until the date of authorization of these consolidated financial statements.

2) On 12 October 2023 AmRest TAG S.L.U., the sole shareholder of AmRest Skyline GmbH, decided to liquidate this company. The liquidation process

has not been finished up until the date of authorization of these consolidated financial statements.

3) On 31 October 2024 AmRest TAG S.L.U., the sole shareholder LTP La Tagliatella II Franchise Portugal Lda, decided to liquidate this company. On 18

February 2025 the company was deregistered.

4) In December 2024, the Group signed an agreement that is subject to the fulfilment of certain conditions, which are expected to be met on or before 31

March 2025, and by means of which 51% of the shares which AmRest Sp. z o.o. holds in SCM Sp.z o.o. will be sold to R&D Sp. z o.o. Details in the note

30.

5) On 23 January 2025, the Court has registered the merger between AmRest DE Sp. z o.o. & Co. KG and AmRest Pizza GmbH. From that date, AmRest

Pizza GmbH has ceased to exist. Yet, its rights and obligations were, from a trade law perspective and on the basis of the date of AmRest Pizza Gmbh’s

closing balance sheet, retroactively transferred to AmRest DE Sp. z o.o. & Co. KG as successor company effective from 1 October 2024.

6) On 3 December 2024 AmRest Sp. z o.o. acquired 100% shares of Gunsana Sp. z o.o. for the purchase price below EUR 0.1 million. In 2025 the name

of the company was changed to AmRest Foodservice Sp. z o.o.

Other changes to the Group Structure that occurred in 2024:

• on 27 January 2023 Sushi Shop Management SAS and VANRAY S.r.l., shareholders of Sushi Shop Milan SARL, decided to liquidate this

company. On 5 April 2024 the company was deregistered,

• on 31 December 2023 AmRest Holdings SE, the sole shareholder of AmRest Acquisition Subsidiary Ltd, decided to liquidate this company. On

6 December 2024 the company was deregistered.

3. Basis of preparation

These consolidated financial statements have been prepared in accordance with the International Financial Reporting

Standards as adopted by the European Union (“IFRS”) and other provisions of the financial reporting applicable in Spain.

These consolidated financial statements were authorised for issue by the Company’s Board of Directors on 26 February

2025.

Unless disclosed otherwise, the amounts in these consolidated financial statements are presented in euro (EUR),

rounded to full millions with one decimal place.

Details of the Group’s accounting policies are included in note 34.

The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those

followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December

2023 , except for the adoption of new standards, interpretations, and amendments to standards effective as of 1 January

2024, as described below and in the note 35. Several amendments and interpretations apply for the first time in 2024, but

do not have any material impact on the Group’s policies. The Group has not early adopted any other standard,

interpretation or amendment that has been issued but is not yet effective.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

The Group has prepared these consolidated financial statements on the basis that it will continue to operate as a going

concern.

4. Use of judgements and estimates

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal

the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.

Estimates and judgments are continually verified, and are based on professional experience and various factors,

including expectations of future events, that are deemed to be justified in given circumstances. Revisions to estimates are

recognised prospectively. Actual results may differ from these estimates.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which

are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong.

Judgements

Determination of the lease term, whether the Group is reasonably certain to exercise extension or termination options

For a majority of contracts the Group holds options for extension/termination of the lease period, on specified conditions.

The Group’s practice is to assess the reasonableness of exercising options one year before the decision deadline,

because in that time all relevant facts and circumstances to make such a decision can be generally available. The Group

considers, for example, latest performance of the restaurant, brand strategy revised during budgeting process,

comparison of lease fees to the market average, length of the non-cancellable period of a lease and significance of

leasehold improvements recently undertaken (or expected to be undertaken).

The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which

significantly affects the amount of lease liabilities and right-of-use assets recognised.

Assets held for sale

In December 2024, the Group signed an agreement to separate the business operations between the AmRest Group and

SCM Sp. z o.o. (“SCM”). SCM is a majority owned subsidiary. Based on an analysis of the facts and circumstances

related to the transaction, the Group assessed that the sale transaction is highly probable and the assets and liabilities of

the SCM business meet the criteria to be classified as held for sale. Consequently, the Group applied IFRS 5 for the

presentation and measurement of the assets and liabilities of that disposal group. Further details are presented in note

30.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next

financial year, are described below. The Group based its assumptions and estimates on available parameters when the

consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,

however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such

changes are reflected in the assumptions when they occur.

Impairment of non-financial assets including goodwill

Impairment losses are recognised whenever the carrying value of an asset or group of assets that are part of one cash

generating unit or a group of cash generating units exceeds its recoverable amount, which is the higher of its fair value

less costs of disposal and its value in use. The recoverable amount is determined based on a discounted cash flow (DCF)

models. The cash flows are derived from the budgets and forecasts. The recoverable amount is sensitive to the discount

rates used for the DCF model as well as the expected future growth margins, sales growths, and the growth rate used for

extrapolation purposes. Accounting policies for impairment testing of non-financial assets are disclosed in note 34. The

key assumptions used to determine the recoverable amount of the different CGUs, including a sensitivity analysis, are

disclosed and further explained in note 15.

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation

model, which depends on the terms and conditions of the grant. This estimation may also require determination of the

most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield,

and making assumptions about them. The assumptions and models used for estimating fair value for share-based

payment transactions are disclosed in note 23.

Recognition of provisions for potential tax obligations and uncertain tax provisions

Recognition of provision requires estimates of the probable outflows of resources embodying economic benefits and

defining the best estimates of the expenditures required to settle the present obligation at the end of the reporting period.

The Group operates in various tax jurisdictions. Regulations concerning VAT, corporate income tax and social contribution

charges are frequently amended. The applicable regulations may have unclear aspects, leading to differing opinions on

the legal interpretation of tax legislation among tax authorities and between these authorities and enterprises.

Tax reports and other matters (e.g. customs or foreign currency transactions) may be audited by authorities competent to

impose substantial penalties and fines, whereas any additional tax liabilities assessed during such audits have to be paid

together with interests. Consequently, the figures presented and disclosed in these consolidated financial statements may

change in the future if a final decision is issued by tax inspection authorities.

Details of current tax inspections open in Group entities are presented in note 28.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be

available against which the losses can be utilised. Significant management judgement is required to determine the

probability that in the future taxable profit will be available against which the deductible temporary difference can be

utilised. Details of deferred tax assets are disclosed in note 10.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

International Tax Reform – Pillar Two Model Rules – Expected changes to income tax legislation

In 2021 an agreement was reached between 136 countries for a two-pillar approach to international tax reform (‘the

OECD agreement’). Amongst other things, Pillar Two seeks to apply a global minimum effective tax rate of 15%. The

OECD agreement is likely to see changes in corporate tax rates in a number of countries in the next few years.

By December 2024, all countries in which AmRest has entities have implemented Pillar Two regulations, with the

exception of China and the United States. Further details are disclosed in note 10.

Climate change: risk analysis and financial impacts

All companies face risks and opportunities arising from the climate and need to make strategic decisions in this area. The

impacts of climate risks on financial statements are broad and potentially complex, and will depend on the specific risks of

the sector. When the future is analysed, probability scenarios are presented where not only the physical consequences of

climate change are assessed, but also the changes in environmental regulations to face it.

Both physical risks and transitional risks pose a number of threats and opportunities to overall financial stability,

potentially influencing financial markets in the future. Climate risk has been incorporated into the estimates and

judgments in relation to the future used for accounting purposes, although they do not present significant differences with

those used in previous years.

5. Segment reporting

AmRest as a Group of dynamic developing entities running operations in many markets and various restaurant business

segments is under constant analysis of the Board of Directors. The Board is also constantly reviewing the way business

is analysed and adjusts it accordingly to changes in the Group’s structure as a consequence of strategic decisions.

Group produces various reports, in which its business activities are presented in a variety of ways. Operating segments

are set on the basis of management reports used by the Board when making strategic decisions. The Board of Directors

analyses the Group’s performance by geographical breakdown in divisions described in the table below.

Own restaurant and franchise business is analysed in three operating segments presenting Group’s performance in

geographic breakdown. Geographical areas are identified based on the similarity of products and services, similar

characteristics of the production process and of the customer base, and economic similarities (i.e. exposure to the same

market risks). Fourth segment includes in general non-restaurant business. Details of the operations presented in each

segment are presented below:


Segment	Description
Central and Eastern Europe (CEE)	Restaurant operations and franchise activity in:
	• Poland – KFC, Pizza Hut, Starbucks, Burger King,
	• Czechia – KFC, Pizza Hut, Starbucks, Burger King,
	• Hungary – KFC, Pizza Hut, Starbucks,
	• Bulgaria – KFC, Starbucks, Burger King,
	• Croatia, Austria, Slovenia – KFC,
	• Slovakia – Starbucks, Pizza Hut, Burger King,
	• Romania – Starbucks, Burger King,
	• Serbia – KFC, Starbucks.
Western Europe	Restaurant operations together with supply chain and franchise activity in:
	• Spain – KFC, La Tagliatella, Sushi Shop, Bacoa,
	• France – KFC, Sushi Shop, Pizza Hut (until October 2024, when the franchise agreement was early terminated),
	• Germany – Starbucks, KFC,
	• Portugal and Andorra – La Tagliatella,
	• Belgium, Switzerland, Luxembourg, United Kingdom and other countries with activities of Sushi Shop.
China	• Blue Frog operations in China.
Other	Segment Other includes global support functions such as e.g. Executive Team, Controlling, Global Finance, IT, Global Human Resources, Treasury and Investors Relations. Segment Other also includes expenses related to M&A transactions not finalised during the period, whereas expenses related to finalised merger and acquisition are allocated to applicable segments. Additionally, Other includes non-restaurant businesses performed by AmRest Holdings SE, SCM Sp. z o.o. and its subsidiaries and other minor entities performing holding and/or financing services.

When analysing the results of particular business segments the Board of Directors draws attention primarily to EBITDA

reached, which is not an IFRS measure.

The segment information has been prepared in accordance with the accounting policies applied in these consolidated

financial statements.

Segment measures and the reconciliation to profit/loss from operations for the year ended 31 December 2024 and for the

comparative year ended 31 December 2023 is presented below.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


YEAR ENDED
31 December 2024	CEE	Western Europe	China	Other	Total
Restaurant sales	1,483.7	824.7	88.6	-	2,397.0
Franchise and other sales	0.8	73.8	3.8	80.9	159.3
Segment revenue	1,484.5	898.5	92.4	80.9	2,556.3
EBITDA	305.1	135.4	18.7	(28.8)	430.4
Depreciation and amortisation	143.1	97.7	18.1	1.1	260.0
Net impairment losses on financial assets	0.2	1.1	-	-	1.3
Net impairment losses on other assets	4.6	46.0	0.3	-	50.9
Profit/loss from operations	157.2	(9.4)	0.3	(29.9)	118.2
*Capital investment	141.1	47.6	3.6	1.6	193.9

*Capital investment comprises additions and acquisition in property, plant and equipment and intangible assets.


YEAR ENDED
31 December 2023	CEE	Western Europe	China	Other	Total
Restaurant sales	1,341.2	830.3	94.4	-	2,265.9
Franchise and other sales	0.9	72.5	5.5	86.8	165.7
Segment revenue	1,342.1	902.8	99.9	86.8	2,431.6
EBITDA	267.2	118.9	20.5	(27.4)	379.2
Depreciation and amortisation	124.6	91.0	18.1	0.8	234.5
Net impairment losses on financial assets	-	2.1	0.2	0.3	2.6
Net impairment losses on other assets	2.0	35.8	0.8	-	38.6
Profit/loss from operations	140.6	(10.0)	1.4	(28.5)	103.5
*Capital investment	143.1	58.4	8.4	1.4	211.3

*Capital investment comprises additions and acquisition in property, plant and equipment and intangible assets.

Information on geographical areas

Significant geographical regions are disclosed below with their key characteristics:


		YEAR ENDED
		31 December 2024	31 December 2023
Revenue from external customers	Poland	773.0	670.1
	Spain	365.4	338.7
	Czechia	334.2	324.7
	France	304.7	321.2


		31 December 2024	31 December 2023
Total of non-current assets other than financial instruments and deferred tax assets	Poland	576.6	476.3
	Spain	437.8	430.3
	France	361.8	406.2
	Czechia	204.2	185.9

6. Revenues

The Group operates chains of own restaurants under own brands as well as under franchise license agreements.

Additionally, the Group operates as franchisor (for own brands) and master-franchisee (for a franchised brand) and

develops chains of franchisee businesses, organizing marketing activities for the brands and supply chain. Consequently,

the Group analyses two streams of revenue:

• Restaurant sales,

• Franchise and other sales.

This is reflected in the format of Group’s consolidated income statement. Details of revenues streams are also presented

in note 34d. Additional disaggregation by geographical market is included in the note 5.

Restaurant sales

Restaurant revenues are the most significant source of revenues representing over 94% of total revenues.

Group's customers are mainly individual guests, that are served in the restaurants, therefore the Groups’ customer base

is widely spread. There are no significant concentrations of revenues risks. Payments for the restaurant sales are settled

generally immediately in cash or by credit, debit and other cards. There are no material credit risks related to this type of

operations.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

7. Operating costs and losses

The table below presents an additional analysis of operating expenses by nature:


	YEAR ENDED
	31 December 2024	31 December 2023
Food, merchandise and other materials	780.3	774.9
Payroll	611.2	551.9
Social security and employee benefits	141.2	136.7
Royalties	123.6	115.2
Utilities	115.7	122.7
Marketing expenses	110.5	98.5
Delivery fees	94.9	87.2
Other external services	118.9	115.8
Occupancy cost	28.0	30.7
Depreciation of right-of-use assets	147.1	136.8
Depreciation of property, plant and equipment	103.2	87.8
Amortisation of intangible assets	9.7	9.9
Other	25.7	25.9
Total cost by nature	2,410.0	2,294.0

Summary of operating expenses by functions:


	YEAR ENDED
	31 December 2024	31 December 2023
Restaurant expenses	2,109.1	1,994.5
Franchise and other expenses	124.1	128.9
General and administrative expenses	176.8	170.6
Total costs	2,410.0	2,294.0

8. Other operating income and expenses

Details of other operating income and expenses are presented in the table below:


	YEAR ENDED
	31 December 2024	31 December 2023
Refunds, compensations and insurance claims	12.5	0.3
Supply chain services	4.3	5.6
Government assistance	1.0	0.6
Gains/losses on disposal and liquidation of non-current assets	0.6	0.9
Reversal (creation) of provision	(0.6)	(2.8)
Other income	6.3	2.5
Total other operating income and expenses	24.1	7.1

Other operating income and expenses for the year ended 31 December 2024 consists mainly of retail tax refund in the

amount of EUR 9.3 million and VAT refund in the amount of EUR 3.0 million.

9. Finance income and costs

Finance income for the year ended 31 December 2024 consists mainly of income from bank and other interests in the

amount of EUR 2.9 million and other income in the amount of EUR 0.8 million. For the year ended 31 December 2023

finance income represents mainly bank and other interests received in the amount of EUR 4.0 million, net gain from

exchange differences in the amount of EUR 4.7 million and other income in the amount of EUR 0.3 million.

Finance costs for the year ended 31 December 2024 and 2023 consist mainly of bank and lease interests.


	YEAR ENDED
	31 December 2024	31 December 2023
Interest expense	45.2	33.6
Interest expense on lease liabilities	38.1	29.3
Net cost from exchange differences	3.8	-
Other	0.4	0.6
Total finance cost	87.5	63.5


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

10. Income taxes


	YEAR ENDED
	31 December 2024	31 December 2023
Current tax	(24.1)	(20.6)
Deferred tax	3.2	16.0
Income tax recognised in the income statement	(20.9)	(4.6)

Deferred tax asset
Opening balance	55.0	44.5
Closing balance	57.6	55.0

Deferred tax liability
Opening balance	35.2	43.0
Closing balance	34.9	35.2
Change in deferred tax assets/liabilities	2.9	18.3


Change in deferred tax assets/liabilities from continuing operation	2.9	15.4
Change in deferred tax assets/liabilities from discontinued operation	-	2.9

Temporary differences in the calculation of deferred tax related to the following items:


	Asset		Liability
	31 December 2024	31 December 2023	31 December 2024	31 December 2023
Leases	192.6	176.2	180.1	165.5
Property, plant and equipment and intangible assets	16.9	17.7	47.6	45.9
Tax losses carried forward	25.7	25.4	-	-
Provisions and other liabilities	13.2	10.9	0.9	1.5
Trade and other receivables	0.3	0.1	-	-
Other differences	2.9	3.4	0.3	1.0
Total temporary differences	251.6	233.7	228.9	213.9
The offset of tax	(194.0)	(178.7)	(194.0)	(178.7)
Net total amount	57.6	55.0	34.9	35.2

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against

current tax liabilities and when the deferred taxes relate to the same fiscal authority. The current financial situation and

strategic plans allowed to consider the level of recognised deferred tax assets to be reasonable.

Changes in deferred tax asset and liabilities were recognised as follow:


	YEAR ENDED
	31 December 2024	31 December 2023
Change in deferred tax assets/liabilities of which:	2.9	18.3
Change in deferred tax assets/liabilities of which:	2.9	18.3
Deferred taxes recognised in the income statement	3.2	16.0
Deferred tax of discontinued operation	-	2.9
Deferred taxes related to assets classified as held for sale	(0.2)	-
Deferred taxes recognised in other comprehensive income - net investment hedges	-	(1.7)
Deferred taxes recognised in equity - valuation of share-based payments	-	0.4
Exchange differences	(0.1)	0.7

The Group operates in various tax jurisdictions. Income taxes and deferred taxes were measured using tax rates enacted

or substantively enacted at the reporting date in particular countries. Deferred tax assets and liabilities were measured at

the tax rates that are expected to apply in the year when the asset is or the liability is settled, based on tax rates (and tax

laws) that have been enacted or substantively enacted at the reporting date.

Income tax on the Group’s profit before tax differed from the theoretical amount which would be obtained if the weighted

average nominal tax rate applicable to consolidated companies was applied:


	YEAR ENDED
	31 December 2024	31 December 2023
Profit before tax	34.4	49.0
Income tax calculated according to domestic tax rates applicable to income in particular countries*	(0.2)	0.9
Impairment of goodwill	10.3	7.4
Tax losses for the current period for which no deferred tax asset was recognised	3.4	4.9
Effect of local taxes reported as income tax	3.2	3.3


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


	YEAR ENDED
	31 December 2024	31 December 2023
Change of assumptions on deferred tax asset from tax losses related to previous years	2.5	(4.6)
Tax effect of liquidations of subsidiaries	(3.9)	(5.5)
Utilization of tax losses not recognised in prior periods	(1.0)	(2.6)
Permanent differences and changes in estimates	6.6	1.3
Change in tax rates	-	(0.5)
Corporate income tax in the income statement	20.9	4.6

*The applicable weighted average nominal tax rate amounted to (0.6)% (for the period ended 31 December 2023: 1.8%).

As of 31 December 2024 the Group had the following tax losses for which no deferred tax asset was recognised:


	2024	Expiry date	2023	Expiry date
Expire	21.3	2025 – 2030	22.7	2024 – 2029
Never expire	224.9		193.6
Tax losses in respect of which no deferred tax asset was recognised	246.2		216.3

The Group analysed recoverability of deferred taxes on tax losses based on the guidance in IAS 12. Group subsidiaries

analysed the periods in which tax losses can be utilised, whether there were sufficient taxable temporary differences

related to the same tax authority and tax jurisdiction, and if the entity will create taxable profits in the periods in which

unused tax losses can be utilised.

The Group analysed business plans and cash flows forecasts of subsidiaries in terms of recoverability of deferred tax

assets recognised. As a starting point, the Group used projections from goodwill impairment tests to estimate future tax

payments. The balances of tax losses for which deferred taxes were recognised were verified against projected tax cash

outflows. In case projections for the business unit changed, the deferred tax assets were reassessed in terms of

recoverability.

The total tax effect for the period ended 31 December 2024 of tax losses for the current period for which no deferred tax

asset was recognised amounted EUR 3.4 million. As of 31 December 2024 deferred tax was recognised on tax losses in

Germany on the trade tax rate of 15%, on top of that the deferred tax was recognised on the corporate income tax rate of

15,82% at the shareholders level.

The table below presents tax rate by country applicable for the year 2024 and 2023.


	Income tax rates		Deferred tax assets and liabilities rates
Country	2024	2023	2024	2023
Spain	25.0%	25.0%	25.0%	25.0%
Poland	19.0%	19.0%	19.0%	19.0%
Czechia	21.0%	19.0%	21.0%	21.0%
Hungary	9.0%	9.0%	9.0%	9.0%
Serbia	15.0%	15.0%	15.0%	15.0%
Bulgaria	10.0%	10.0%	10.0%	10.0%
Malta	35.0%	35.0%	35.0%	35.0%
Germany*	15.0%	15.0%	15.0%	15.0%
France	25.0%	25.0%	25.0%	25.0%
Croatia	18.0%	18.0%	18.0%	18.0%
Hong Kong	16.5%	16.5%	16.5%	16.5%
China	25.0%	25.0%	25.0%	25.0%
Romania	16.0%	16.0%	16.0%	16.0%
Slovakia**	21.0%	21.0%	24.0%	21.0%
Slovenia	22.0%	19.0%	22.0%	22.0%
Austria	23.0%	24.0%	23.0%	23.0%
Portugal**	21.0%	21.0%	20.0%	21.0%
UK***	19.0%	19.0%	19.0%	19.0%
Switzerland****	8.5%	8.5%	8.5%	8.5%
Italy	24.0%	24.0%	24.0%	24.0%
Luxembourg**	17.0%	17.0%	16.0%	17.0%
Belgium	25.0%	25.0%	25.0%	25.0%

*Tax rates in Germany consist of two components: 15% of trade tax and 15.82% of corporate income tax.

**From 1 January 2025 tax rates in Slovakia, Portugal and Luxembourg have changed.

***The main rate of corporation tax in UK is 25%. This main rate applies to companies with profits in excess of GBP 250,000. For companies with profits

below GBP 50,000, a lower rate of 19% is applicable.

****Tax rates in Switzerland consist of two components: 8.5% of direct federal corporate income tax and canton/communal corporate income tax at

different rates for each canton. The overall approximate range of the maximum CIT rate on profit before tax for federal, cantonal, and communal taxes is

between 11.9% and 21.0%, depending on the company’s location of corporate residence at a specific capital of a canton/communal.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

International Tax Reform – Pillar Two Model Rules

In 2021 there was agreement reached between 136 countries for a two-pillar approach to international tax reform (‘the

OECD agreement’). Amongst other things, Pillar Two seeks to apply a global minimum effective tax rate of 15%.

On 21 December 2024, the Spanish Official State Gazette published Law 7/2024 of 20 December 2024 (Global Minimum

Tax Law), which implements a top-up tax for large multinational and domestic groups in Spain. The approval of the Global

Minimum Tax Law complies with the transposition obligation of the European Union Council Directive 2022/2523 of 15

December 2022 (EU Pillar Two Directive).

Global Minimum Tax Law is applicable to multinational groups with revenues higher than EUR 750 million which are taxed

at a minimum effective rate of 15% wherever they operate. Global Minimum Tax Law is retroactive from 31 December

2023, applying also for fiscal year 2024. The AmRest Group, as a large multinational Group, is subject to said top-up tax.

For the purposes of the Global Minimum Tax regulations approved in Spain, the Mexican entity Grupo Far-Luca, S.A. de

C.V. is considered the ultimate parent company. Due to the fact that Mexico has not implemented the Global Minimum

Tax regulations as of 31 December 2024, AmRest Holdings SE prepares the safe harbour computations for the entities of

the AmRest Group including in its Global Minimum Tax perimeter those entities owned by the ultimate parent company

which operate in the same jurisdictions as AmRest.

To determine the potential impacts of Global Minimum Tax, AmRest management has performed the analysis of the

application of Transitional Safe Harbours that has been established according to the Law in line with OECD guidelines

and EU Directive. These transitional safeguards are intended to facilitate adaptation to Pillar Two regulations and would

be applicable for AmRest to fiscal years 2024 to 2026. Therefore, if any of these safeguards are met in all countries

where AmRest operates, the additional amount to be paid (top-up tax) will be zero.

Based on management’s assessment of Transitory Safe Harbours, the application of the Pillar Two legislation for markets

covered by AmRest Group does not have material impact on its current tax expense for fiscal year 2024.

Regarding deferred taxes, AmRest applies the IAS 12 exception to recognizing and disclosing information about deferred

tax assets and liabilities related to Pillar Two income taxes.

11. Property, plant and equipment

The table below presents changes in the value of property, plant and equipment in 2024 and 2023:


2024	Leasehold improvements, land, buildings	Restaurants equipment and vehicles	Furniture and other assets	Assets under construction	Total
PPE as of 1 January	286.9	181.3	43.6	68.6	580.4
Additions	4.6	7.1	1.4	172.1	185.2
Depreciation (Note 7)	(44.7)	(43.0)	(15.5)	-	(103.2)
Impairment (Note 15)	(4.5)	(0.1)	-	-	(4.6)
Disposals, liquidations	(0.2)	(0.3)	(0.8)	(0.6)	(1.9)
Transfers	92.7	68.4	25.6	(189.5)	(2.8)
Transfer to assets classified as held for sale	(0.1)	(1.4)	(0.1)	(1.5)	(3.1)
Exchange differences	(0.3)	0.2	-	(0.3)	(0.4)
PPE as of 31 December	334.4	212.2	54.2	48.8	649.6
Gross book value	743.6	508.7	157.7	48.8	1,458.8
Accumulated depreciation and impairments	(409.2)	(296.5)	(103.5)	-	(809.2)
Net book value	334.4	212.2	54.2	48.8	649.6


2023	Leasehold improvements, land, buildings	Restaurants equipment and vehicles	Furniture and other assets	Assets under construction	Total
PPE as of 1 January	263.3	153.4	36.8	48.0	501.5
Acquisitions	-	-	0.7	-	0.7
Additions	5.1	14.1	2.7	181.2	203.1
Depreciation (Note 7)	(39.6)	(37.7)	(13.6)	-	(90.9)
Impairment (Note 15)	(1.0)	(0.2)	(1.4)	0.1	(2.5)
Loss of control	(25.6)	(7.9)	(2.0)	(1.6)	(37.1)
Disposals, liquidations	(0.3)	(0.8)	(0.1)	(0.3)	(1.5)
Transfers	81.9	58.4	20.1	(161.5)	(1.1)
Exchange differences	3.1	2.0	0.4	2.7	8.2
PPE as of 31 December	286.9	181.3	43.6	68.6	580.4
Gross book value	661.5	446.6	132.6	69.1	1,309.8
Accumulated depreciation and impairments	(374.6)	(265.3)	(89.0)	(0.5)	(729.4)
Net book value	286.9	181.3	43.6	68.6	580.4

Due to the nature of the Group business the balance of the property, plant and equipment consists of assets in over 1.8

thousand properties. There are no individually significant assets.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Depreciation was charged as follows:


	YEAR ENDED
	31 December 2024	31 December 2023
Costs of restaurant operations	99.9	87.5
Franchise expenses and other	1.4	1.4
General and administrative expense	1.9	2.0
Total depreciation	103.2	90.9
from continuing operation	103.2	87.8
from discontinued operation	-	3.1

Increasing the average useful lives of property, plant and equipment by 10% would lead to a decrease in depreciation for

the year ended 31 December 2024 by around EUR (9.4) million. Increasing the average useful lives of property, plant and

equipment by 10% would lead to a decrease in depreciation for the year ended 31 December 2023 by around EUR

(8.3) million.

12. Leases

The Group leases over 1.8 thousand properties to operate restaurants. Lease terms are negotiated on an individual basis

and contain a wide range of different terms and conditions, depending on local lease practice and legal framework.

Additionally, in some countries, the Group leases cars, equipment, as well as properties for administration or storage

purposes and company flats.

The table below presents the reconciliation of the right-of-use assets and lease liabilities for years ended 31 December

2024 and 2023:


	Right-of-use assets			Lease liabilities
2024	Restaurant properties	Other	Total right-of-use assets	Total liabilities
As of 1 January	801.5	24.1	825.6	887.0
Additions – new contracts	66.6	6.4	73.0	72.0
Remeasurements and modifications	151.8	0.5	152.3	150.2
Depreciation (Note 7)	(140.6)	(6.5)	(147.1)	-
Impairment (Note 15)	(5.1)	-	(5.1)	-
Interest expense (Note 9)	-	-	-	38.1
Payments	-	-	-	(179.0)
Exchange differences	(0.9)	-	(0.9)	2.1
Transfer to assets and liabilities classified as held for sale	-	(0.5)	(0.5)	(0.4)
Disposals, liquidations	(0.7)	(0.3)	(1.0)	(0.1)
As of 31 December	872.6	23.7	896.3	969.9


	Right-of-use assets			Lease liabilities
2023	Restaurant properties	Other	Total right-of-use assets	Total liabilities
As of 1 January	793.0	20.3	813.3	878.7
Additions – new contracts	75.5	5.0	80.5	80.3
Remeasurements and modifications	136.5	6.4	142.9	140.7
Depreciation (Note 7)	(136.1)	(5.9)	(142.0)	-
Impairment (Note 15)	(7.3)	-	(7.3)	-
Interest expense (Note 9)	-	-	-	30.2
Payments	-	-	-	(168.8)
Exchange differences	5.2	0.1	5.3	1.0
Loss of control	(63.6)	(1.5)	(65.1)	(73.0)
Disposals, liquidations	(1.7)	(0.3)	(2.0)	(2.1)
As of 31 December	801.5	24.1	825.6	887.0

The following are the remaining contractual maturities of lease payments at the reporting date. The amounts are gross

and undiscounted and include contractual interest payments.


	31 December 2024	31 December 2023
Up to 1 year	193.6	177.7
Between 1 and 3 years	317.1	275.8
Between 3 and 5 years	229.2	205.7
Between 5 and 10 years	285.5	257.7
More than 10 years	195.9	182.7
Total contractual lease payments	1,221.3	1,099.6
Future finance costs of leases	251.4	212.6
Total lease liabilities	969.9	887.0


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Depreciation was charged as follows:


	YEAR ENDED
	31 December 2024	31 December 2023
Costs of restaurant operations	141.3	136.9
General and administrative expenses	5.8	5.1
Total depreciation	147.1	142.0
from continuing operation	147.1	136.8
from discontinued operation	-	5.2

The Group recognised rent expenses from short-term leases of EUR 0.9 million, leases of low-value assets of EUR

5.5 million and variable lease payments of EUR 24.0 million for the year ended 31 December 2024.

During the year ended 31 December 2023, the Group recognised rent expenses from short-term leases of EUR

0.7 million, leases of low-value assets of EUR 6.0 million and variable lease payments of EUR 23.3 million.

Total cash outflow for leases amounted to EUR 209.4 million in the year ended 31 December 2024. Out of that EUR

179.0 million was presented in financing activity as repayment of lease liabilities and EUR 30.4 million in operating activity

as lease payments not included in the lease liabilities.

During the year ended 31 December 2023, total cash outflow for leases amounted to EUR 198.8 million. Out of that EUR

168.8 million was presented in financing activity as repayment of lease liabilities and EUR 30.0 million in operating activity

as lease payments not included in the lease liabilities.

Impairment test procedures, assumptions used and tests’ results are disclosed in note 15.

Additional information about lease payments and lease term

The Group’s lease payments are often charged as a higher of fixed payment and turnover based payment. The Group

recognised the excess of turnover based rent as variable lease payments. In such cases, variable lease payments

depend on the restaurant's revenue level. In the year ended 31 December 2024, the total value of variable payments

represented 13% of fixed lease payments (2023: 14%).

13. Intangible assets

The table below presents changes in the value of intangible assets in 2024 and 2023:


2024	Own brands	Licenses for franchise brands	Relations with franchisees and customers	Other intangible assets	Total
IA as of 1 January	153.3	21.5	23.4	38.5	236.7
Additions	-	5.9	-	2.8	8.7
Amortisation (Note 7)	(0.2)	(3.6)	(2.4)	(3.5)	(9.7)
Impairment (Note 15)	-	(0.1)	-	(0.1)	(0.2)
Disposals, liquidations	-	(0.4)	-	(0.1)	(0.5)
Transfers	-	0.4	-	2.4	2.8
Exchange differences	0.1	-	-	0.3	0.4
IA as of 31 December	153.2	23.7	21.0	40.3	238.2
Gross book value	156.1	53.7	51.9	84.3	346.0
Accumulated amortisation and impairments	(2.9)	(30.0)	(30.9)	(44.0)	(107.8)
Net book value	153.2	23.7	21.0	40.3	238.2


2023	Own brands	Licenses for franchise brands	Relations with franchisees and customers	Other intangible assets	Total
IA as of 1 January	153.8	22.9	25.8	33.9	236.4
Additions	-	3.8	-	7.3	11.1
Amortisation (Note 7)	(0.3)	(3.9)	(2.4)	(3.6)	(10.2)
Impairment (Note 15)	-	0.3	-	0.3	0.6
Loss of control	-	(2.4)	-	(0.1)	(2.5)
Disposals, liquidations	-	(0.5)	-	(0.7)	(1.2)
Transfers	-	0.5	-	0.6	1.1
Exchange differences	(0.2)	0.8	-	0.8	1.4
IA as of 31 December	153.3	21.5	23.4	38.5	236.7
Gross book value	155.8	47.5	51.9	87.2	342.4
Accumulated amortisation and impairments	(2.5)	(26.0)	(28.5)	(48.7)	(105.7)
Net book value	153.3	21.5	23.4	38.5	236.7


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Amortisation was charged as follows:


	YEAR ENDED
	31 December 2024	31 December 2023
Costs of restaurant operations	4.6	4.7
Franchise expenses and other	1.8	1.8
General and administrative expense	3.3	3.7
Total amortisation	9.7	10.2
from continuing operation	9.7	9.9
from discontinued operation	-	0.3

Impairment test procedures, assumptions used and tests’ results are disclosed in note 15.

The Group believes that brands do not generate cash inflows that are largely independent of other groups of assets. For

some Group brands, cash inflows from the franchisee business are partially independent of other cash inflows, however,

these do not represent the value of the whole brand. Brands are used to support restaurant business development and

revenues from sales of products under certain brands are not capable of being split between revenue for the brand and

revenue for costs of production. Consequently, brands are not a cash-generating unit and are not tested on a standalone

basis. Such assets are tested together with their relevant goodwill values. The results of the test are presented in note 15.

The table below presents details of proprietary brands as of 31 December 2024:


Brand	Useful life	Level of goodwill test	Gross value	Accumulated amortisation	Impairment	Net value
La Tagliatella	indefinite	Spain – La Tagiatella and KFC	65.0	-	-	65.0
Sushi Shop	indefinite	Sushi Shop (all markets)	86.1	-	-	86.1
Blue Frog	definite	China – Blue Frog	5.0	(2.9)	-	2.1
Total			156.1	(2.9)	-	153.2

Other intangible assets include key monies in the amount of EUR 18.0 million (EUR 18.0 million as of 31 December

2023), sales and business intelligence systems of EUR 17.2 million (EUR 10.6 million as of 31 December 2023),

exclusivity rights and other.

14. Goodwill

Goodwill recognised on business combinations is allocated to the group of CGUs that is expected to benefit from the

synergies of the business combination.

The table below presents goodwill allocated to particular levels on which it is monitored by the Group. In all cases is not

higher than the operating segment level:


2024	1 January	Increases (provisional)	Impairment	Transfer to assets classified as held for sale	Exchange differences	31 December
Sushi Shop (all markets)	111.8	-	(41.1)	-	-	70.7
Spain – La Tagiatella and KFC	91.4	-	-	-	-	91.4
China – Blue Frog	19.8	-	-	-	0.7	20.5
France – KFC	14.0	-	-	-	-	14.0
Germany – Starbucks	8.6	-	-	-	-	8.6
Hungary - KFC	3.2	-	-	-	(0.2)	3.0
Romania – Starbucks	2.5	-	-	-	-	2.5
Czechia – KFC	1.4	-	-	-	-	1.4
Poland – Other	0.6	-	-	(0.2)	-	0.4
Total	253.3	-	(41.1)	(0.2)	0.5	212.5


2023	1 January	Increases (provisional)	Impairment	Transfer to assets classified as held for sale	Exchange differences	31 December
Sushi Shop (all markets)	141.0	-	(29.2)	-	-	111.8
Spain – La Tagiatella and KFC	90.9	0.5	-	-	-	91.4
China – Blue Frog	21.1	-	-	-	(1.3)	19.8
France – KFC	14.0	-	-	-	-	14.0
Germany – Starbucks	8.6	-	-	-	-	8.6
Hungary - KFC	3.1	-	-	-	0.1	3.2
Romania – Starbucks	2.5	-	-	-	-	2.5
Czechia – KFC	1.4	-	-	-	-	1.4
Poland – Other	0.6	-	-	-	-	0.6
Total	283.2	0.5	(29.2)	-	(1.2)	253.3

Impairment test procedures, assumptions used and tests’ results are disclosed in note 15.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

15. Net impairment of non-financial assets

Details of impairment losses recognised:


		YEAR ENDED
Note		31 December 2024	31 December 2023
Net impairment of property, plant and equipment	11	4.6	2.5
Net impairment of intangible assets	13	0.2	(0.6)
Net impairment of right-of-use assets	12	5.1	7.3
Net impairment of goodwill	14	41.1	29.2
Net impairment of inventories and other assets		(0.1)	0.2
Net impairment losses of non-financial assets		50.9	38.6

Restaurant level tests

The Group periodically reviews the carrying amounts of its non-financial non-current assets to determine whether there is

any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated for the

purpose of impairment testing.

The recoverable amount of an asset is determined at the level of a single restaurant as the smallest unit (or set of assets)

generating cash flows that are largely independent of the cash inflows generated by other assets or groups of assets.

Restaurant assets include amongst others property, plant and equipment, intangible assets and right-of-use assets.

Impairment indicators defined by the Group are described in note 34l.

Impairment indicators are reviewed and respective impairment tests for restaurants are performed twice a year.

The recoverable amount of the cash-generating unit (CGU) is determined based on a value in use calculation for the

remaining useful life, determined by lease expiry date or restaurant closure date (if confirmed), using the discount rate for

each individual country.

For recoverable value calculations of value in use, the Group uses cash flow projections based on financial budgets that

require relevant judgments and estimates. Cash flow projections are prepared for individual restaurants. As a starting

point, the Group uses the most recent budgets and forecasts prepared on the level of brands in certain countries. Next,

those assumptions are enhanced or worsened, to reflect the best estimate for expected cash projections of the analysed

restaurants, if needed. Individual projections for sales and costs may depend on restaurant’s main streams of revenues

(different for take-away business, dine-in, food courts), cost pressure in various markets, supply chain related elements or

marketing actions.

The main assumptions used to determine the value in use were:

• sales growth projections dependent on sales mix and sales channels for a given restaurant,

• EBITDA margin,

• projections period (useful life of rental agreement),

• a discount rate based on the weighted average cost of capital.

Except for discount rates, the Group does not disclose quantitative ranges for the main assumptions used in restaurant

tests. The amounts assigned to each of these parameters reflect the Group's experience adjusted for expected changes

in the forecast period and corrected by local specifics and characteristics of a given restaurant. This reflects the specifics

of Group’s operations, where business is conducted through multiple, individually small operating units.

Discounts rates applied are shown in the table below.


	Post-tax discount rate 31 December 2024	Implied pre-tax discount rate 31 December 2024	Implied pre-tax discount rate 30 June 2024	Implied pre-tax discount rate 31 December 2023
Spain	9.3%	12.4%	13.4%	13.5%
Germany	7.4%	10.5%	11.4%	11.4%
France	8.0%	10.7%	11.5%	11.2%
Poland	10.1%	12.5%	13.5%	14.6%
Czechia	8.5%	10.7%	11.4%	11.4%
Hungary	11.7%	12.9%	14.0%	15.3%
China	8.4%	11.2%	12.0%	12.3%
Romania	11.8%	14.0%	15.4%	15.9%
Serbia	12.6%	14.9%	16.3%	16.9%
Bulgaria	10.2%	11.3%	12.5%	12.3%
Croatia	10.3%	12.6%	13.8%	13.9%
Slovakia	9.0%	11.4%	12.3%	12.1%
Portugal	9.1%	11.6%	12.6%	14.1%
Austria	8.3%	11.0%	11.8%	11.8%
Slovenia	9.3%	11.5%	12.4%	13.4%
Switzerland	7.1%	8.3%	9.1%	9.7%
Luxembourg	7.8%	10.4%	11.0%	10.9%
United Kingdom	8.3%	11.0%	11.9%	11.9%

The implied pre-tax discount rate was determined as post-tax discount rate grossed-up by the standard tax rate

applicable in each country.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Details of impairment losses recognised for each category of assets (property, plant and equipment, right-of-use assets,

intangible assets or goodwill) are presented in notes 11, 12, 13 and 14.

Recognised impairment losses do not relate to any individual significant items, but to numerous restaurants tested during

the year.

Summary of impairment tests results on the level of restaurants for the year ended 31 December 2024 is presented in the

table below:


2024	Impairment loss	Impairment reversals	Net/Total
Number of units tested			258
Units with impairment/reversal recognised	83	61
Impairment of property, plant and equipment and intangible assets	(8.3)	3.5	(4.8)
Impairment of right-of-use assets	(7.9)	2.8	(5.1)
Five highest individual impairment loss/reversals totalled	(5.4)	2.0
Average impairment loss/ reversal per restaurant	(0.2)	0.1

Summary of impairment tests results on the level of restaurants for the year ended 31 December 2023 is presented in the

table below:


2023	Impairment loss	Impairment reversals	Net/Total
Number of units tested			332
Units with impairment/reversal recognised	116	89
Impairment of property, plant and equipment and intangible assets	(8.2)	6.3	(1.9)
Impairment of right-of-use assets	(10.8)	3.5	(7.3)
Five highest individual impairment loss/ reversals totalled	(4.1)	2.6
Average impairment loss/ reversal per restaurant	(0.2)	0.1

Business (goodwill) level tests

The impairment tests are performed at least once a year for businesses where goodwill is allocated. Goodwill is tested

together with intangibles (including those with indefinite useful lives), property plant and equipment and right-of-use

assets allocated to tested group of cash generating units (CGUs) that represent the business to which goodwill is

allocated.

Annual mandatory impairment tests for goodwill are made in 4th quarter. Goodwill impairment tests are also performed

when impairment indicators are identified (arising from internal or external sources of information).

The recoverable amount is assessed using the discounted cash flows method, assuming organic growth of the business.

Cash flow projections are based on financial budgets that require judgment and other estimates that include, among

others, sales levels, EBITDA margin levels, and the discount and growth rates at long term.

Present value technique model (discounted cash flow) is used to determining recoverable amount. The cash flows are

derived from the most recent budgets, plans for next year and forecasts for the following years. The 5th year normalized

projections are used to extrapolate cash flows into the future if the 5th year represents a steady state in the development

of the business. The adjustments may be necessary to reflect the expected development of the business (normalization

of cash flows). Growth rates do not exceed the long-term average growth rate for the products, industries, or country or

market in which the asset is used.

The recoverable amount is most sensitive to the discount rate used, growth rate used for extrapolation purposes, the

weighted average budgeted EBITDA margins and restaurant sales growths. EBITDA margin represents EBITDA divided

by total sales. The weighted average budgeted EBITDA margin is calculated as an average for the 5 years projection

period i.e. without any impact of the residual value element. Budgeted revenues are used as weights. Average restaurant

sales growth refers to arithmetical average growth rates for restaurant sales reflected in impairment models.

Following approach towards determination of key assumptions is used by the Group:

• discount rate represents the current market assessment of the risks specific to business, calculated using

weighted average cost of capital formula based on market inputs,

• growth rate (for residual value) is based on forecasts included in industry reports,

• budgeted EBITDA margin is based on past performance and expectations for the future,

• sales growth rate is based on past performance and expectations of market development and current industry

trends in future.

The Group carries out a sensitivity analysis for the impairment tests performed. The sensitivity analysis examines the

impact of changes in below factors assuming other factors remain unchanged:

• discount rate applied,

• weighted average budgeted EBITDA margin,

• growth rate for residual value,

• restaurant sales growth.

The objective of such a sensitivity analysis is to determine if reasonable possible changes in the main financial

assumptions would lead to an impairment loss being recognised.

For discount rate, growth rate for residual value, weighted average budgeted EBITDA margin, a reasonable possible

change was determined as 10% of the input data. Consequently, each impairment test has a different level of a

reasonable change in inputs, which can be determined by multiplying the base input data used in the impairment test by

10%. Additionally the Group performed sensitivity analysis on the expected changes in restaurant sales growths. In that


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

case Group determines reasonable change individually for each business tested. Usually this is in a range of 3-5%

decrease of estimated sales revenues in each year of projection.

Test results for YE 2024

The main input assumptions used in test performed as of year end 2024 are as follows:


2024	Post-tax discount rate	Implied pre-tax discount rate	Growth rate for residual value	Average restaurant sales growth 2025-2029	Weighted average budgeted EBITDA margin
Sushi Shop (all markets)	8.0%	10.0%	1.8%	2.3%	16.7%
Spain - La Tagiatella and KFC	9.3%	11.5%	2.2%	5.9%	22.2%
France - KFC	8.0%	9.7%	1.8%	4.4%	13.6%
Germany - Starbucks	7.4%	9.1%	2.0%	11.3%	19.6%
China - Blue Frog	8.4%	10.0%	2.0%	9.9%	22.2%
Romania - Starbucks	11.8%	13.1%	2.6%	8.8%	19.8%
Czechia - KFC	8.5%	10.2%	2.0%	8.5%	23.3%
Hungary - KFC	11.7%	12.6%	2.9%	10.0%	20.7%

Implied discount rate was calculated individually for each goodwill impairment tests made.

For all units, the recoverable amount exceeded the carrying amount and no impairment loss was recognised. The

sensitivity analysis performed for all units, except for Sushi Shop showed that reasonably possible change in any of the

key assumptions used would not lead to the recognition of impairment losses.

Results of the sensitivity analysis for Sushi Shop Group business unit

The table presents the scenario where changes in assumptions would lead to the potential impairment. For the remaining

scenarios, no impairment risk was identified.


Input/change in input	(Increase)/Decrease in impairment loss
Weighted average budgeted EBITDA margin value - in model (16.7%)
-10% of base value	(7.6)

Test results for HY 2024

The main input assumptions used in test performed as of 30 June 2024 are as follows:


HY 2024	Post-tax discount rate	Implied pre-tax discount rate	Growth rate for residual value	Average restaurant sales growth 2025-2029	Weighted average budgeted EBITDA margin
Sushi Shop (all markets)	8.6%	10.6%	1.8%	1.9%	15.4%

The impairment loss of EUR 41.1 million was recognised for goodwill of Sushi Shop business unit. The main factors that

lead to recognition of impairment included: a further increase in the discount rate applied to the future cash flows of the

French business and a revision of the growth expectations of the Sushi Shop business for the coming years.

Results of sensitivity analysis for Sushi Shop Group business unit

The following table presents what change in impairment loss would be accounted for if respective input data were

changed by tested percentage, assuming the remaining parameters remain stable.


Input/change in input	(Increase)/Decrease in impairment loss
Discount rate - in model post-tax discount rate (8.6%)
-10% of base value	28.4
-5% of base value	13.2
+5% of base value	(11.6)
+10% of base value	(22.0)
Growth rate for residual value - in model (1.8%)
-10% of base value	(3.9)
-5% of base value	(2.0)
+5% of base value	2.0
+10% of base value	4.1
Weighted average budgeted EBITDA margin value - in model (15.4%)
-10% of base value	(29.8)
-5% of base value	(14.9)
+5% of base value	13.5
+10% of base value	29.8
Restaurant Sales
-5% in each year of projection	(16.5)
-3% in each year of projection	(9.9)
+3% in each year of projection	9.9
+5% in each year of projection	16.5


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

The following table shows the values to discount rate and growth rate under which recoverable amount in the model

would equal to carrying amount of tested unit (assuming the remaining input in model unchanged).


Input value	Post-tax discount rate	Growth rate
Applied in model	8.6%	1.8%
When carrying amount of CGU equals to recoverable amount	7.7%	2.7%

Comparative information for the YE 2023

The key assumptions used in year end 2023 test were as follows:


2023	Post-tax discount rate	Implied pre-tax discount rate	Growth rate for residual value	Average restaurant sales growth 2024-2028	Weighted average budgeted EBITDA margin
Sushi Shop (all markets)	8.4%	10.2%	1.8%	5.6%	14.0%
Spain – La Tagiatella and KFC	10.1%	12.5%	1.9%	4.7%	19.4%
France – KFC	8.4%	10.1%	1.8%	4.8%	12.2%
Germany – Starbucks	8.0%	10.2%	2.2%	16.6%	22.1%
China – Blue Frog	9.2%	11.1%	2.1%	11.0%	21.9%
Romania – Starbucks	13.4%	15.2%	2.9%	9.5%	24.5%
Czechia – KFC	9.2%	10.8%	2.3%	8.5%	22.5%
Hungary – KFC	13.9%	14.8%	3.4%	10.7%	20.7%

The impairment loss of EUR 29.2 million was recognised for goodwill of Sushi Shop business unit. The main factors that

led to recognition of impairment loss were the reduction in profitability of the brand, affected by the increase in the price of

fresh salmon, and the increase in the discount rates.

For all other units the recoverable amount exceeded the carrying amount and no impairment loss was recognised.

Additionally, based on the sensitivity analysis performed a reasonably possible change in any of the key assumptions

used would not lead to recognition of impairment losses i.e. carrying amount would not exceed the recoverable amount.

Results of sensitivity analysis for Sushi Shop Group business unit

The following table presents what change in impairment loss would be accounted for if respective input data were

changed by tested percentage, assuming the remaining parameters remain stable.


Input/change in input	(Increase)/Decrease in impairment loss
Discount rate - in model post-tax discount rate (8.4%)
-10% of base value	29.2
-5% of base value	16.9
+5% of base value	(14.9)
+10% of base value	(28.1)
Growth rate for residual value - in model (1.8%)
-10% of base value	(5.4)
-5% of base value	(2.7)
+5% of base value	2.8
+10% of base value	5.7
Weighted average budgeted EBITDA margin value - in model (14.0%)
-10% of base value	(36.0)
-5% of base value	(18.0)
+5% of base value	18.0
+10% of base value	29.2
Restaurant Sales
-5% in each year of projection	(10.0)
-3% in each year of projection	(6.0)
+3% in each year of projection	6.0
+5% in each year of projection	10.0

The following table shows the values to discount rate and growth rate under which recoverable amount in the model

would equal to carrying amount of tested unit (assuming the remaining input in model unchanged).


Input value	Post tax discount rate	Growth rate
Applied in model	8.4%	1.8%
When carrying amount of CGU equals to recoverable amount	7.7%	2.6%


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

16. Trade and other receivables

As of 31 December 2024 and 2023 the balances of trade and other receiva bles were as follows:


	Note	31 December 2024	31 December 2023
Trade receivables		31.1	45.1
Other tax receivables		35.2	34.4
Credit cards, coupons and food aggregators receivables		20.7	33.8
Loans and borrowings		0.3	0.3
Other		2.5	2.6
Allowances for receivables	27	(13.7)	(13.8)
Total		76.1	102.4

Information about the impairment of trade receivables and the Group’s exposure to credit risk, foreign currency risk and

interest rate risk can be found in note 27.

17. Cash and cash equivalents

Cash and cash equivalents as of 31 December 2024 and 31 December 2023 are presented in the table below:


	31 December 2024	31 December 2023
Cash at bank	123.6	213.9
Cash in hand	10.9	13.6
Cash equivalents	5.1	-
Total cash	139.6	227.5

Reconciliation of working capital changes as of 31 December 2024 and 31 December 2023 is presented in the table

below:


2024	Change in trade and other receivables	Change in inventories	Change in other assets	Change in payables and other liabilities	Change in other provisions and employee benefits
Balance sheet change	26.3	1.8	0.5	(52.9)	1.2
Change in investment liabilities	-	-	-	21.9	-
Debt transaction	-	-	-	8.2	-
Transfer to assets and liabilities classified as held for sale	(9.0)	(2.8)	-	9.4	0.1
Exchange differences	(0.2)	-	-	(0.9)	(0.6)
Working capital changes	17.1	(1.0)	0.5	(14.3)	0.7


2023	Change in trade and other receivables	Change in inventories	Change in other assets	Change in payables and other liabilities	Change in other provisions and employee benefits
Balance sheet change	(13.3)	2.6	3.7	25.3	0.9
Loss of control	(2.6)	(2.0)	(3.9)	11.3	-
Change in investment liabilities	-	-	-	(17.2)	-
Debt transaction	-	-	-	(7.6)	-
Exchange differences	1.3	0.4	0.8	(3.5)	(0.2)
Working capital changes	(14.6)	1.0	0.6	8.3	0.7

18. Other assets

Other currents assets

As of 31 December 2024 and 2023 the balances of other current assets consists mainly of prepayments for IT and digital

services, utilities, marketing, insurance and other services.

Investment properties

As of 31 December 2024 the balance of investment properties consists of the unsold part of the investment property in

Poland.

Other non-currents assets

As of 31 December 2024 and 2023 the balances of other non-current assets were as follows:


	31 December 2024	31 December 2023
Deposit for rentals	23.4	22.6
Other	0.9	0.4
Total other non-currents assets	24.3	23.0


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Inventories

As of 31 December 2024 and 2023, inventories cover mainly food and packaging used in the restaurants and stocks in

central kitchen for sale by La Tagliatella restaurants. Inventories are presented at net value including write-downs.

19. Equity

Share capital

There were no changes in share capital of the Company in year 2024.

All shares issued are subscribed and fully paid. The par value of each share is EUR 0.1. As of 31 December 2024 and as

of 31 December 2023 the Company had 219,554,183 shares issued.

All the shares are ordinary shares and have the same economic and voting rights. There are no shares committed to be

issued under options, employee share schemes and contracts for the sale of shares.

To the best of AmRest’s knowledge as of 31 December 2024, in accordance with the information publicly available,

AmRest Holdings had the following shareholder structure:


Shareholder	Number of shares and votes at the Shareholders’ meeting	% of shares and votes at the Shareholders’ meeting
FCapital Dutch S.L.*	147,203,760	67.05%
FYNVEUR S.C.A.	11,612,680	5.29%
Nationale-Nederlanden PTE SA	10,742,600	4.89%
PTE Allianz Polska SA	9,531,792	4.34%
Other Shareholders	40,463,351	18.43%

* Mr. Carlos Fernández González indirectly controls the majority of the shareholding and voting rights in FCapital Dutch, S.L. (direct shareholder of the

stake appearing in the above table).

To the best of AmRest’s knowledge as of 31 December 2023, in accordance with the information publicly available,

AmRest Holdings had the following shareholder structure:


Shareholder	Number of shares and votes at the Shareholders’ meeting	% of shares and votes at the Shareholders’ meeting
FCapital Dutch S.L.*	147,203,760	67.05%
Artal International S.C.A.	11,366,102	5.18%
Nationale-Nederlanden OFE	10,718,700	4.88%
PTE Allianz Polska SA	9,531,792	4.34%
Other Shareholders	40,733,829	18.55%

* Mr. Carlos Fernández González indirectly controls the majority of the shareholding and voting rights in FCapital Dutch, S.L. (direct shareholder of the

stake appearing in the above table).

Dividends paid and received

In the period covered by these consolidated financial statements the parent entity of the Group has paid an interim cash

dividend against the results of fiscal year 2024 in the amount of 0.07 gross euros per share. The total dividend paid to

equity holders of the parent amounted to EUR 15.2 million.

The Group has paid a dividend to non-controlling interests of: AmRest Coffee s.r.o. in the amount of EUR 3.6 million,

SCM Sp. z o. o. in the amount of EUR 0.7 million and SCM Czech s.r.o. in the amount of EUR 0.2 million. The total

dividend paid to non-controlling interest amounted to EUR 4.5 million.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Reserves

The structure of Reserves is as follows:


2024	Share premium	Outstanding share-based payments	Settled share- based payments	Treasury shares	Hedges valuation	Transactions with NCI	Total Reserves
As of 1 January	236.3	18.8	(35.4)	(9.9)	(4.1)	(31.6)	174.1
Net investment hedges	-	-	-	-	0.5	-	0.5
Total comprehensive income	-	-	-	-	0.5	-	0.5
Purchases of treasury shares	-	-	-	(10.5)	-	-	(10.5)
Value of disposed treasury shares	-	-	(2.0)	2.0	-	-	-
Share-based payments - reclassifications	-	(1.7)	1.7	-	-	-	-
Share-based payments - remeasurements	-	7.1	-	-	-	-	7.1
Share-based payments - tax withholding requirements	-	-	(0.4)	-	-	-	(0.4)
Total share-based payments	-	5.4	(0.7)	2.0	-	-	6.7
Total distributions and contributions	-	5.4	(0.7)	(8.5)	-	-	(3.8)
As of 31 December	236.3	24.2	(36.1)	(18.4)	(3.6)	(31.6)	170.8


2023	Share premium	Outstanding share-based payments	Settled share- based payments	Treasury shares	Hedges valuation	Transactions with NCI	Total Reserves
As of 1 January	236.3	15.5	(38.1)	(3.7)	(11.9)	(31.6)	166.5
Net investment hedges	-	-	-	-	9.5	-	9.5
Income tax related to net investment hedges	-	-	-	-	(1.7)	-	(1.7)
Total comprehensive income	-	-	-	-	7.8	-	7.8
Purchases of treasury shares	-	-	-	(6.6)	-	-	(6.6)
Value of disposed treasury shares	-	-	(0.4)	0.4	-	-	-
Share-based payments - reclassifications	-	(3.1)	3.1	-	-	-	-
Share-based payments - remeasurements	-	6.0	-	-	-	-	6.0
Share-based payments - deferred tax effect	-	0.4	-	-	-	-	0.4
Total share-based payments	-	3.3	2.7	0.4	-	-	6.4
Total distributions and contributions	-	3.3	2.7	(6.2)	-	-	(0.2)
As of 31 December	236.3	18.8	(35.4)	(9.9)	(4.1)	(31.6)	174.1


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Share premium

Share premium reflects the surplus over the nominal value of the share capital increase and additional contributions to

equity without issue of shares made by shareholders prior to becoming a public entity.

There were no transactions within share premium in 2024.

Treasury shares

As of 31 December 2024 the Group had 2,927,790 treasury shares for a total purchase value of EUR 18.4 million,

presented as treasury shares. As of 31 December 2023 the Group had 1,412,446 treasury shares for a total purchase

value of EUR 9.9 million.

Transactions with NCI

This item reflects the impact of accounting for transactions with non-controlling interests (NCI). In 2024 the Group has

paid dividends to non-controlling shareholders in the amount of EUR 4.5 million. In 2023 the Group has paid dividends to

non-controlling shareholders in the amount of EUR 2.1 million.

Hedges valuation

The Group is exposed to foreign currency risk associated with its investments in foreign subsidiaries, which is managed

by applying net hedge investment strategies.

Until December 2023, the Group had assigned part of the Syndicated Bank Loan 2017 in foreign currencies as a hedging

instrument for net investments. In December 2023, when the Syndicated Bank Loan 2017 debt was fully repaid, the

hedging relationship ceased.

In December 2023, AmRest Group signed a new financing agreement referred to as the Syndicated bank loan 2023.

Part of the debt was taken by AmRest Holdings in PLN. The Group assigned the amount of PLN 508.0 million as a

hedging instrument for the net investment in its Polish subsidiary. As of 31 December 2024 and 31 December 2023 the

value of the net investment hedge resulting from the Syndicated bank loan 2023 amounted to PLN 508.0 million.

Another part of the debt was taken by AmRest Sp. z o.o. in EUR. The Group assigned the amount of EUR 156.0 million

as a hedging instrument for the net investment in its Spanish subsidiaries. As of 31 December 2024 and 31 December

2023 the value of the net investment hedge resulting from the Syndicated bank loan 2023 amounted to EUR 156.0

million.

During the years ended 31 December 2024 and 2023 the hedges were fully effective.

For all net investment hedges, exchange gains or losses arising from the translation of liabilities that are hedging

instruments are charged to other comprehensive income. During the year ended 31 December 2024 the total hedge

valuation recognised in other comprehensive income amounted to EUR 0.5 million. During the year ended 31 December

2023 the total hedge valuation recognised in other comprehensive income amounted EUR 9.5 million, and deferred tax

related to net investment hedges amounted to EUR (1.7) million.

Translation reserves

The balance of translation reserves depends on the changes in the foreign exchange rates. Total change in translation

reserves allocated to shareholders of the parent in year 2024 amounted to EUR (2.8) million. The most significant impact

had a change in Hungarian forint of EUR (2.7) million, Czech crown of EUR (0.8) million, Polish zloty of EUR (0.2) million

and Chinese yuan of EUR 1.3 million.

Total change in translation reserves in year 2023 amounted to EUR 12.8 million (including recycling of translation reserve

in Russia of EUR 28.6 million). The most significant impact on that balance had a change in Russian rouble in the amount

of EUR (8.4) million. Other significant changes result from change of Chinese yuan of EUR (2.7) million, Czech crown of

EUR (1.5) million, Hungarian forint of EUR 1.2 million and Polish zloty of EUR (5.0) to EUR.

20. Non-controlling interests

Key compositions of non-controlling interests are presented in the table below:


	31 December 2024	31 December 2023
SCM Sp. z o.o.	7.0	4.8
SCM Czech s.r.o	3.0	2.4
AmRest Coffee Sp. z o.o.	2.6	1.6
AmRest Coffee s.r.o.	2.4	5.7
AmRest Kávézó Kft	0.8	0.9
Sushi Shop Milan SARL	-	(0.1)
Non-controlling interests	15.8	15.3


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

As of 31 December 2024 and 31 December 2023 the summarised financial information for each subsidiary that has non-controlling interests is as follows:

Summarised balance sheet


31 December 2024	AmRest Coffee s.r.o.	AmRest Kávézó Kft	AmRest Coffee Sp. z o. o.	SCM Sp. z o.o.	SCM Czech s.r.o.	Sushi Shop Milan SARL
Current assets	8.5	5.1	3.0	20.0	5.4	-
Current liabilities	10.8	7.4	14.1	8.1	1.6	-
Total current net assets	(2.4)	(2.3)	(10.9)	12.0	3.9	-
Non-current assets	31.3	16.6	43.5	4.0	-	-
Non-current liabilities	14.5	9.2	20.2	0.2	-	-
Total non-current net assets	16.8	7.4	23.2	3.8	-	-
Net assets	14.4	5.0	12.3	15.8	3.9	-

31 December 2023	AmRest Coffee s.r.o.	AmRest Kávézó Kft	AmRest Coffee Sp. z o. o.	SCM Sp. z o.o.	SCM Czech s.r.o.	Sushi Shop Milan SARL
Current assets	18.1	4.7	2.5	15.5	7.0	0.2
Current liabilities	11.4	7.2	12.1	8.3	3.1	-
Total current net assets	6.7	(2.6)	(9.4)	7.3	4.0	0.2
Non-current assets	31.8	18.7	32.5	2.9	0.1	-
Non-current liabilities	17.2	10.8	16.8	0.2	-	-
Total non-current net assets	14.5	7.9	15.6	2.6	0.1	-
Net assets	21.2	5.2	6.1	9.9	4.1	0.2

Summarised income statement


Year ended 31 December 2024	AmRest Coffee s.r.o.	AmRest Kávézó Kft	AmRest Coffee Sp. z o.o.	SCM Sp. z o.o.	SCM Czech s.r.o.	Sushi Shop Milan SARL
Total sales	46.1	30.1	59.7	63.4	21.3	-
Profit before tax	3.0	0.3	5.0	9.3	1.9	0.7
Income tax expense/income	0.7	0.2	-	1.5	0.3	-
Profit/loss for the period	2.3	0.1	5.0	7.8	1.6	0.7
Profit/loss for the period allocated to NCI	0.4	-	0.9	2.8	0.8	0.1


Year ended 31 December 2023	AmRest Coffee s.r.o.	AmRest Kávézó Kft	AmRest Coffee Sp. z o.o.	SCM Sp. z o.o.	SCM Czech s.r.o.	Sushi Shop Milan SARL
Total sales	47.4	28.1	51.8	54.8	36.8	0.1
Profit before tax	6.3	2.6	5.9	7.0	1.6	0.4
Income tax expense/income	1.1	0.5	(1.0)	1.4	0.4	-
Profit/loss for the period	5.2	2.2	6.9	5.6	1.3	0.4
Profit/loss for the period allocated to NCI	0.9	0.4	1.2	2.8	0.6	0.1

There are no significant restrictions on the possibility of access to the assets or their use and settlement of obligations for the subsidiaries having a non-controlling interest.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

21. Earnings per share

As of 31 December 2024 and 2023 the Company had 219,554,183 shares issued.

Table below presents calculation of basic and diluted earnings per share ("EPS") for the year 2024 and 2023.

Basic EPS is calculated by dividing net profit attributable to shareholders of the parent by the weighted average number

of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing net profit attributable to shareholders of the parent by the weighted average number

of ordinary shares outstanding during the year, adjusted by the weighted average number of ordinary shares that would

be issued on conversion of all dilutive potential ordinary shares into ordinary shares.


	YEAR ENDED
EPS calculation	31 December 2024	31 December 2023
Net profit attributable to shareholders of the parent (EUR millions)	8.5	44.9
Weighted average number of ordinary shares for basic EPS (in thousands)	217,229	218,875
Weighted average number of ordinary shares for diluted EPS (in thousands)	217,841	219,097
Basic earnings per share (EUR)
From continuing operations attributable to the ordinary equity holders of the company	0.04	0.18
From discontinued operation	-	0.03
Total basic earnings per share attributable to the ordinary equity holders of the company (EUR)	0.04	0.21
Diluted earnings per share (EUR)
From continuing operations attributable to the ordinary equity holders of the company	0.04	0.18
From discontinued operation	-	0.03
Total diluted earnings per share attributable to the ordinary equity holders of the company (EUR)	0.04	0.21

Reconciliation of weighted average number of ordinary shares for basic EPS:


	YEAR ENDED
Weighted average number of ordinary shares (in thousands)	31 December 2024	31 December 2023
Weighted average number of ordinary shares (in thousands)	31 December 2024	31 December 2023
Shares issued at the beginning of the period	219,554	219,554
Effect of treasury shares held	(2,404)	(756)
Effect of share-based payments vested	79	77
Weighted average number of ordinary shares for basic EPS	217,229	218,875

Reconciliation of weighted average number of ordinary shares for diluted EPS:


	YEAR ENDED
Weighted average number of ordinary shares for diluted EPS (in thousands)	31 December 2024	31 December 2023
	31 December 2024	31 December 2023
Weighted average number of ordinary shares for basic EPS	217,229	218,875
Effect of share-based payments unvested	612	222
Weighted average number of ordinary shares for diluted EPS	217,841	219,097

The intrinsic value of the vested SOP and MIP options is included in the calculation of basic EPS, from the date on which

options vest. The LTI plans are included in the calculation of basic EPS if vested and if the performance conditions are

met at the reporting date.

The intrinsic value of unvested SOP and MIP options is included in the calculation of diluted EPS, to the extent to they are

dilutive. The unvested LTI plans are included in the calculation of diluted EPS if performance conditions are met at the

reporting date and to the extent to which are dilutive. Details relating to the share-based payments are disclosed in note

23.

Instruments that could potentially dilute basic earnings per share in the future, but were antidilutive as of 31 December

2024 included 8,840 thousand of options for SOP and MIP plans and 3,412 thousand of shares for LTI plans (8,841

thousand of options for SOP and MIP plans and 2,629 thousand of shares for LTI plans as of 31 December 2023).

22. Loans and borrowings

The Group had the following balances of loans and borrowings:


	31 December 2024	31 December 2023
Non-current
Syndicated bank loan	574.8	549.5
Other bank loans	6.1	21.9
Total non-current	580.9	571.4
Current
Syndicated bank loan	17.7	-
Schuldscheinedarlehen (SSD) Bonds	-	35.9
Other bank loans	18.8	16.6
Total current	36.5	52.5
Total	617.4	623.9


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Key characteristics of loans and borrowings:


Currency	Country	Loans/bonds	Effective interest rate	Final maturity	31 December 2024	31 December 2023
EUR	Poland, Spain	Syndicated bank loan 2023	3M EURIBOR+margin	2028	431.7	391.1
PLN	Poland, Spain	Syndicated bank loan 2023	3M WIBOR+margin	2028	160.8	158.4
EUR	Spain	SSD Bonds	Fixed	n/a	-	26.4
EUR	Spain	SSD Bonds	6M EURIBOR+margin	n/a	-	9.5
EUR	Spain	Bilateral loans	3M EURIBOR+margin	2025	5.0	2.5
EUR	France	State supported loan(SSL)	Fixed	2026	14.5	23.3
EUR	Spain	State supported loan(SSL)	Fixed	2026	5.4	11.7
EUR	Germany	Bank loans/overdrafts	Euro Short-Term Rate (€STR)+margin	2025	-	1.0
Total					617.4	623.9

The Group is required to meet certain ratios as agreed with financing institutions. Those covenants were met as of

31 December 2024.

Tables below presents the reconciliation of loans and borrowings as of 31 December 2024 and 31 December 2023:


2024	Syndicated bank loan 2023	Syndicated bank loan 2017	SSD Bonds	Bilateral loans	SSL loans	Other borrowings	Total
As of 1 January	549.5	-	35.9	2.5	35.0	1.0	623.9
Repayments	-	-	(35.5)	-	(15.1)	(1.0)	(51.6)
New loans	40.0	-	-	2.5	-	-	42.5
Interest expense	42.6	-	1.6	-	0.9	0.1	45.2
Payment of interests	(41.9)	-	(2.0)	-	(0.9)	(0.1)	(44.9)
Exchange differences	2.3	-	-	-	-	-	2.3
As of 31 December	592.5	-	-	5.0	19.9	-	617.4


2023	Syndicated bank loan 2023	Syndicated bank loan 2017	SSD Bonds	Bilateral loans	SSL loans	Other borrowings	Total
As of 1 January	-	567.3	35.9	-	50.5	-	653.7
Repayments	-	(569.2)	-	(51.5)	(15.9)	-	(636.6)
New loans	560.4	-	-	54.0	-	1.0	615.4
Interest expense	1.9	27.1	1.3	2.0	1.1	0.2	33.6
Payment of interests	-	(31.0)	(1.3)	(2.0)	(0.7)	(0.2)	(35.2)
Transaction costs	(12.1)	-	-	-	-	-	(12.1)
Exchange differences	(0.7)	5.8	-	-	-	-	5.1
As of 31 December	549.5	-	35.9	2.5	35.0	1.0	623.9

In December 2023 the Group signed Syndicated Bank Loan agreement. Various transaction costs directly attributable to

the issuance of that loan were deducted from the initial fair value of the new debt and are included in the calculation of

the amortized cost of the borrowing. The payment of EUR 8.2 million of those transaction costs was made during the year

ended 31 December 2024 and was presented as a financial outflow in the cash flow statement.

Regarding the Syndicated Bank Loan agreement, and in accordance with the provisions of the financing agreement, on

23 December 2024, a modification was signed to include certain sustainability objectives thereby converting the

agreement into a sustainability linked loan.

Available credit limits

The Group had the following unused credit limits and available tranches as of 31 December 2024 and 31 December

2023:


	31 December 2024	31 December 2023
Available Tranche B of Syndicated bank loan 2023	70.0	110.0
Syndicated bank loan 2023 credit line	130.0	130.0
Credit line Spain	-	2.5
Credit line Poland	4.7	4.6
Credit line Germany	5.8	5.1
Credit line Czechia	2.3	2.3
Total	212.8	254.5


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Collaterals on borrowings

The Group granted several guarantees to finance institutions under the previous syndicated bank loan agreement. Those

guarantees were fully cancelled together with the repayment of that loan, which took place on 14 December 2023.

The new Syndicated Bank Loan 2023 is jointly and severally guaranteed by the Borrowers (AmRest Holdings SE and

AmRest Sp. z o. o.) and other Group companies, in particular, AmRest S.R.O., AmRest Coffee Deutschland Sp. z o. o. &

Co.KG, AmRest DE Sp. z o. o. & Co.KG, AmRest Kft, AmRest Coffee SRL, AmRest Tag S.L.U., Restauravia Food S.L.U.,

Pastificio Service S.L.U.

Additionally, pledge on the shares of Sushi Shop Group and AmRest France SAS has been established as security for

the bank financing.

23. Share-based payments

There are several share-based payments plans in AmRest Group as of 31 December 2024. Since 2021 the Group

introduced share-based payments programs referred as Long Term Incentive plan (LTI). Earlier, the Group was granting

options within programs referred as Stock Option (SOP) and Management Incentive Plans (MIP).

The only cash-settled Stock Option plan has been fully settled in 2024. All remaining share-based payments plans as of

31 December 2024 are equity-settled.

Summary of share-based payments balances recognised as equity

The Group recognises costs of equity-settled share-based payments programs in reserve capital. The total reserves

related to share-based payments not exercised, without deferred tax effect, as of 31 December 2024 and 31 December

2023 are presented in a table below:


	31 December 2024	31 December 2023
LTI 2021	1.6	3.1
LTI 2022	4.5	2.0
LTI 2023	2.5	0.2
LTI 2024	0.2	-
SOP	12.3	12.0
MIP	3.1	2.8
Total	24.2	20.1

Summary of share-based payments recognised in income statement

The total costs recognised in income statement for share-based payments for the years ended 31 December 2024 and

31 December 2023 are presented below:


	YEAR ENDED
	31 December 2024	31 December 2023
LTI 2021	0.9	2.0
LTI 2022	2.5	1.8
LTI 2023	2.3	0.2
LTI 2024	0.2	-
SOP	1.0	1.5
MIP	0.2	0.5
Total	7.1	6.0

Long Term Incentive Plans (LTI)

In 2021 the Group introduced Long Term Incentive (LTI) Program which is addressed to members of the management

team and other relevant personnel of the Group. Participants of the LTI plans have the opportunity to receive AmRest

shares. Under each annual program participants are granted three tranches with different vesting periods. The number of

shares to be finally received by participant that stays within Group during vesting period is linked to the Group’s

performance defined as realization of Global EBITDA for three years following the date of approval of each annual grant.

The rights under the LTI Plans are granted as an amount (denominated in payroll currency of each participant). The grant

date for each annual plan takes place at the vesting date of the 1st tranche. At the grant date the LTI rights are evaluated

and converted into number of shares, and subsequently the shares are transferred to the participant’s brokerage account.

As a rule, there are no cash settlement alternatives under LTI plans.

The number of shares to be received is determined according to the following formula:

N = [(Grant ÷ ExRate) ÷ VWAP] × M,

where:

• Grant is the value allocated to participant, denominated in payroll currency,

• ExRate is the average exchange rate for the month preceding the vesting date of the 1st tranche that is

applicable to the payroll currency being converted into EUR,

• VWAP is the volume weighted average price of AmRest share expressed in EUR, during the month preceding

the vesting date of the 1st tranche,

• M is the multiplier which depends on the degree of non-market performance conditions realization (minimum 0%,

maximum 200%).


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

The principal terms and conditions of LTI plan as of 31 December 2024 are presented in the table below:


LTI Plan	Approval date	Vesting date of each tranche	Grant date	Performance condition factor
LTI 2021	23 December 2021	60% : 31 May 2024 20% : 31 May 2025 20% : 31 May 2026	31 May 2024	Global EBITDA 2021-2023
LTI 2022	30 November 2022	60% : 31 May 2025 20% : 31 May 2026 20% : 31 May 2027	31 May 2025	Global EBITDA 2022-2024
LTI 2023	29 November 2023	60% : 31 May 2026 20% : 31 May 2027 20% : 31 May 2028	31 May 2026	Global EBITDA 2023-2025
LTI 2024	13 November 2024 16 January 2025 (France)	60% : 31 May 2027 20% : 31 May 2028 20% : 31 May 2029	31 May 2027	Global EBITDA 2024-2026
LTI 2024	13 November 2024 16 January 2025 (France)	60% : 31 May 2027 20% : 31 May 2028 20% : 31 May 2029	31 May 2027	Global EBITDA 2024-2026

LTI Plans that reached the grant date

LTI 2021

The LTI 2021 reached the grant date on 31 May 2024. Conversion into shares was done in accordance with formula

described above. Fair value of share for LTI 2021 was determined based on the actuary valuation as EUR 6.0 per share.

At the grant date the first tranche of the plan vested (in the amount of 456 thousand of shares). Tranche 2nd and 3rd are

fully unvested.

The Board of Directors approved alternative cash settlement of the first tranche of LTI 2021 for selected part of the plan.

Employees received the cash equivalent of vested shares. As a result of that modification EUR 0.1 million has been

reclassified as employee benefits from reserves.

The table below presents reconciliation of the movement in the number of shares of LTI 2021 plan in the year ended

31 December 2024.


2024 (thousands of shares)	LTI 2021
Outstanding as of 1 January	-
Converted to shares on grant date	760
Transferred to participants	(398)
Forfeited	(13)
Modified (settled in cash)	(21)
Outstanding as of 31 December	328
Vested	40
Unvested	288

LTI Plans that didn’t reach the grant date yet

LTI 2022-2024

In November 2024 new LTI 2024 plan was approved with fair value EUR 8.5 million. In January 2025 a sub plan of LTI

2024 granted to employees of the French entities was approved with fair value EUR 0.9 million.

In November 2023 LTI 2023 was approved with fair value EUR 9.8 million.

Cost of plans recognised in income statement are calculated taking into account fair values adjusted by the multiplier M

and recognised over time based on the vesting scheme. LTI 2022-2024 will be finally evaluated and converted into

shares at the grant date of each plan. Those programs are fully unvested.

Details of each LTI plan recognised in equity and in the income statement is presented in the tables above.

Stock Option and Management Incentive Plans

Stock Option Plans and Management Incentive Plans are share option plans. Under these plans, entitled participants

received the options at agreed exercise prices. Annual plans consists of 3 tranches each, with vesting period of 3, 4 and 5

years. Participants are entitled to exercise options and receive shares if remain within the Group during the vesting

periods. Options vest when the terms and conditions relating to the period of employment are met. The plans do not

provide any additional market conditions for vesting of the options. Vested options can be exercised within 10 years from

the grant date of each program, otherwise they expire. The fair value of option plans was measured using the Black-

Scholes formula and determined by an external actuary.

As of 31 December 2024 there are 5 share option plans:

• Stock Option Plan (SOP 2005-2016) – currently plan is fully vested and partially exercised,

• Stock Option Plan (SOP 2017-2019) – currently plan is fully vested and partially exercised,

• Management Incentive Plan (MIP 2017-2019) – currently plan is fully vested and not exercised,

• Stock Option Plan (SOP 2020) – plan will be fully vested in October 2025 and is partially exercised,

• Management Incentive Plan (MIP 2020-2021) – plan will be fully vested in May 2026 and is not exercised.

The key terms and conditions for the share options plans as of 31 December 2024 are presented in the table below:


Grant date	Terms and conditions for vesting of the options	Option exercise price in EUR
SOP 2005-2016
9 December 2015	1-5 years, 20% per annum	3.14
30 April 2016	1-5 years, 20% per annum	5.35


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


Grant date	Terms and conditions for vesting of the options	Option exercise price in EUR
SOP 2017-2019
30 May 2017	3-5 years, 60% after 3rd year, 20% after 4th and 5th year	8.14
30 April 2018		10.91
1 October 2018		10.63
10 December 2018		9.40
30 April 2019		9.62
MIP 2017- 2019
1 October 2018	3-5 years, 33% per annum	14.54
26 March 2019		14.49
13 May 2019		12.10
SOP 2020
13 July 2020	3-5 years, 60% after 3rd year, 20% after 4th and 5th year	4.99
1 October 2020	3-5 years, 60% after 3rd year, 20% after 4th and 5th year	5.78
MIP 2020-2021
10 February 2020	3-5 years, 33% per annum	15.10
1 October 2020		7.90
1 February 2021		7.71
23 March 2021		6.08
1 May 2021		9.50

The number of options, movements in number of options and weighted average of the exercise prices (WAEP) of options

during the year ended 31 December 2024 and 2023 are presented in table below:


Number of options 2024 (in thousands)	WAEP in EUR	MIP 2020-2021	SOP 2020	MIP 2017- 2019	SOP 2017-2019	SOP 2005-2016
At the beginning of the period	8.14	2,400	2,031	700	3,710	255
Granted during the period	-	-	-	-	-	-
Exercised during the period	4.73	-	(9)	-	-	(43)
Expired during the period	9.25	-	-	-	(113)	(3)
Forfeited during the period	6.22	-	(36)	-	(5)	-
Outstanding at the end of the period	8.68	2,400	1,986	700	3,592	209
- including exercisable as of the end of the period	8.87	1,400	1,604	700	3,592	209

Number of options 2023 (in thousands)	WAEP in EUR	MIP 2020-2021	SOP 2020	MIP 2017- 2019	SOP 2017-2019	SOP 2005-2016
At the beginning of the period	8.56	2,400	2,443	700	4,707	468
Granted during the period	-	-	-	-	-	-
Exercised during the period	4.11	-	-	-	-	(99)
Expired during the period	9.05	-	-	-	(901)	(114)
Forfeited during the period	6.52	-	(412)	-	(96)	-
Outstanding at the end of the period	8.14	2,400	2,031	700	3,710	255
- including exercisable as of the end of the period	8.45	600	1,222	533	3,388	255

The weighted average share price at the dates of exercise of the options was EUR 6.11 in 2024 and EUR 6.17 in 2023.

The weighted average remaining contractual life for the share options outstanding as of 31 December 2024 was

4.7 years (2023: 5.6 years).

24. Employee information

Below information is disclosed based on the reporting requirement established in Spanish Mercantile Law and Spanish

Commercial Code:

AmRest Group average annual employment distributed by professional category:


	31 December 2024	31 December 2023
Senior Executives	8	8
Office employees	2,360	2,323
Restaurant employees	42,666	43,831
Total	45,034	46,162


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Year end distribution of the Group employees and members of the Board of Directors by gender:


	31 December 2024		31 December 2023
	Female	Male	Female	Male
Board of Directors (not employees)	3	4	3	4
Senior Executives	-	8	-	8
Office employees	1,355	992	1,304	965
Restaurant employees	23,621	19,283	24,308	18,879
Total	24,979	20,287	25,615	19,856

In 2024 Spanish AmRest Group companies employed on average 25 people with a disability greater than or equal to 33%

(19 in 2023).

25. Provisions

Changes in the balance of provisions are presented in the table below:


2024	Asset retirement obligation	Court and legal proceedings	Provision for tax risks	Franchise and development agreements risks	Other provisions	Total
As of 1 January	9.4	5.1	0.7	5.5	3.3	24.0
Increases	0.9	5.2	-	1.7	1.1	8.9
Releases	(0.1)	(2.1)	-	(0.2)	(1.5)	(3.9)
Usage	(0.1)	(0.7)	(0.6)	(1.2)	(1.2)	(3.8)
Exchange differences	-	-	-	-	-	-
As of 31 December	10.1	7.5	0.1	5.8	1.7	25.2
Presented as short-term	-	0.8	-	5.6	0.9	7.3


2023	Asset retirement obligation	Court and legal proceedings	Provision for tax risks	Franchise and development agreements risks	Other provisions	Total
As of 1 January	9.3	2.8	0.5	7.2	3.3	23.1
Increases	0.2	2.7	0.5	1.1	1.3	5.8
Releases	-	(0.4)	(0.1)	(0.1)	(0.1)	(0.7)
Usage	(0.1)	(0.1)	(0.2)	(2.8)	(1.1)	(4.3)
Exchange differences	-	0.1	-	0.1	(0.1)	0.1
As of 31 December	9.4	5.1	0.7	5.5	3.3	24.0
Presented as short-term	-	0.8	-	4.3	1.1	6.2

Asset retirement obligation

The Group recognised a provision for costs of future asset restorations mainly on German and French market. The

provision consists of expected costs at the end of rental agreement. The provision would be used for renovation work

needed to restore rented properties, as required by rental agreements.

Provision for court and legal proceedings

Periodically, the Group is involved in disputes and court proceedings resulting from the Group’s on-going operations. The

Group recognises provisions for the costs of court proceedings which reflects the most reliable estimate of the probable

losses expected as a result of the said disputes and legal proceedings.

Provision for tax risks

The Group operates in numerous markets with different and changing tax regulations. Tax related provisions may be

recognized if certain tax risks are identified. The provisions are recognized based on the available information, historical

experience, judgments and estimates that may change over the time.

Franchise agreements and development agreements

The Group restaurants are operated under franchise, development and master franchise agreements with YUM! and

subsidiaries of YUM!, Burger King Europe GmbH, Rex Concepts BK Poland S.A, Rex Concepts BK Czech S.R.O.,

Starbucks Coffee International, Inc. and its affiliates. In the accordance with these agreements, the Group is obliged to

meet certain development commitments as well as to make the renovations required to maintain the identity, reputation

and high operating standards of each brand.

If the Group believes the development commitments will not be attained the respective provisions are recognised.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

26. Trade payables and other liabilities

Trade payables and other liabilities as of 31 December 2024 and 31 December 2023 are presented below:


	31 December 2024	31 December 2023
Trade payables	97.8	105.8
Accruals and uninvoiced deliveries	56.7	85.3
Employee payables	20.3	21.1
Employee related accruals	33.4	35.3
Accrual for holiday leave	16.0	16.2
Social insurance payables	17.7	16.2
Other tax payables	34.5	27.7
Investment payables	21.5	41.6
Contract liabilities – initial fees, loyaltee programs, gift cards	11.2	12.1
Deferred income	4.7	6.0
Other payables	2.4	1.8
Total trade payables and other liabilities	316.2	369.1


	31 December 2024	31 December 2023
Current	308.8	362.9
Non-current	7.4	6.2
Total trade payables and other liabilities	316.2	369.1

Below information is disclosed for Spanish AmRest Group companies based the reporting requirements established by

Spanish Law 18/2022 of 29 September which introduced measures to combat late payments in commercial transactions:


	2024	2023
Number of days:	39	41
Ratio of payments	40	40
Ratio of outstanding invoices	35	54
Millions of EUR:
Total payments	250.7	251.5
Outstanding invoices	23.1	22.2
Amount payments < 60 days	233.5	220.2
Other:
Number of invoices paid < 60 days	92,984	86,580
% Amount of payments made < 60 days out of the total payments	93%	88%
% Number of invoices paid < 60 days out of the total payments	81%	81%

The payments to suppliers reflected in the table above pertain to trade payables for goods and services.

27. Financial instruments

The following table shows the carrying amounts of financial assets and financial liabilities. The Group assessed that the

fair values of cash and cash equivalents, rental deposits, trade and other receivables, trade and other payables, as well

as current loans approximate their carrying amounts largely due to the short-term maturities of these instruments. Fair

values of non-current rental deposits, immaterially differ from their carrying values. Trade and other receivables and

liabilities presented below do not include balances relating to taxes and employee settlements.

As of 31 December 2024 and 2023 the Group did not have equity instruments measured at fair value. There were no

transfers between fair value hierarchy levels in year 2024 and 2023.

Classification of key classes of financial assets and liabilities with their carrying amounts is presented below:


31 December 2024	Note	Financial assets at amortised cost	Financial liabilities at amortised cost
Financial assets not measured at fair value
Rental deposits	18	23.4	-
Trade and other receivables	16	40.6	-
Cash and cash equivalents	17	139.6	-
Financial liabilities not measured at fair value
Loans and borrowings	22	-	617.4
Lease liabilities	12	-	969.9
Trade and other liabilities to suppliers	26	-	250.7


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


31 December 2023	Note	Financial assets at amortised cost	Financial liabilities at amortised cost
Financial assets not measured at fair value
Rental deposits	18	22.6	-
Trade and other receivables	16	67.7	-
Cash and cash equivalents	17	227.5	-
Financial liabilities not measured at fair value
Loans and borrowings	22	-	588.0
SSD	22	-	35.9
Lease liabilities	12	-	887.0
Trade and other liabilities to suppliers	26	-	308.8

Risk management

The Group is exposed to several financial risks in connection with its activities, including: the risk of market fluctuations

(covering the foreign exchange risk and risk of changes in interest rates), the risk related to financial liquidity and – to a

limited extent – credit risk. The risk management program implemented by the Group is based on the assumption of the

unpredictability of the financial markets and is used to maximally limit the impact of negative factors on the Group’s

financial results.

Credit risk

Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual

obligations, and arises principally from the Group’s receivables from customers.

Financial instruments especially exposed to credit risk include trade and other receivables and cash and cash

equivalents. The Group has no significant concentrations of credit risk. The maximum credit risk exposure on rental

deposits, trade and other receivables, cash and cash equivalents amounts to EUR 203.6 million (2023: EUR 317.8

million).

Credit risk related to financial instruments in the form of cash in bank accounts is limited, due to the fact that the parties to

the transactions are banks with high credit ratings received from international rating agencies.

For trade and other receivables: the Group operates restaurants under own brands as well as under franchise license

agreements. Additionally, the Group operates as franchisor (for own brands) and master-franchisee (for a franchised

brand) and develops chains of franchisee businesses, organizing marketing activities for the brands and supply chain.

Consequently, the Group analyses two streams of receivables related to: restaurant sales and franchise and other sales.

The Group’s receivables related to restaurant sales are limited and have low credit risk due to the short settlement time

and the nature of settlement, as guests pay in restaurants generally in cash or via credit or debit cards. For receivables

related to franchise and other sales the Group performs detailed analysis of expected credit loss.

The Group’s exposure to that credit risk is influenced mainly by the individual characteristics of each customer. However,

the Group also considers the factors that may influence the credit risk of its customer base, including the default risk

associated with the industry and country in which customers operate, including the external rating related to particular

country. For these receivables the Group applied the simplified approach permitted by IFRS 9, which requires expected

credit losses (ECLs) to be recognised from initial recognition of the receivables. The Group has established a provision

matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and

the economic environment.

During the year 2024 the Group recognised an impairment of the Group’s receivables exposed to credit risk in a net

amount of EUR (1.3) million (2023: EUR (2.6) million).

The ageing break-down of receivables and receivable loss allowance as of 31 December 2024 and 31 December 2023 is

presented in the table below.


	Current	Overdue in days				Total
2024		Less than 90	91 - 180	181 - 365	More than 365
Trade and other receivables	31.4	7.7	1.7	2.2	11.3	54.3
Loss allowance (note 16)	(0.1)	(0.4)	(0.6)	(1.7)	(10.9)	(13.7)
Total	31.3	7.3	1.1	0.5	0.4	40.6


	Current	Overdue in days				Total
2023		Less than 90	91 - 180	181 - 365	More than 365
Trade and other receivables	53.0	15.1	1.3	3.4	8.7	81.5
Loss allowance (note 16)	(0.7)	(1.0)	(1.0)	(3.0)	(8.1)	(13.8)
Total	52.3	14.1	0.3	0.4	0.6	67.7

Movement in loss allowance for receivables for the year ended 31 December 2024 and 31 December 2023 is presented

in the table below:


	31 December 2024	31 December 2023
At the beginning of the period	(13.8)	(13.2)
Created	(2.0)	(4.3)
Released	0.7	1.7
Used	1.4	1.9
Other	-	0.1
At the end of the period	(13.7)	(13.8)


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Interest rate risk

Bank borrowings drawn by the Group are most often based on fluctuating interest rates (note 22). As of 31 December

2024 the Group does not hedge against changes in cash flows resulting from interest rate fluctuations. The Group

analyses the market position relating to interest on loans in terms of potential refinancing of debt or renegotiating the

lending terms and conditions.

Had the interest rates on loans denominated in PLN during the year ended 31 December 2024 been 30 base points

higher/lower, the profit before tax for the period would have been EUR 485 thousand lower/higher, in 2023 EUR 268

thousand.

Had the interest rates on loans denominated in EUR during the year ended 31 December 2024 been 30 base points

higher/lower, the profit before tax for the period would have been EUR 1,303 thousand lower/higher, in 2023 EUR 1,420

thousand.

Foreign exchange risk

The Group is exposed to foreign exchange risk related to transactions in currencies other than the functional currency in

which the business operations are measured in particular Group companies. The Group has loans liabilities in EUR and

PLN which are exposed to exchange risk. Moreover, 23% of Group’s total lease liabilities are agreements expressed in

EUR and USD in subsidiaries whose functional currency is different than EUR or USD (22% in 2023).

Net investment foreign currency valuation risk

The Group is exposed to risk of net investment valuation in subsidiaries valued in foreign currencies. This risk is hedged

for key positions with use of net investment hedge. Details are described in note 19.

Liquidity risk

Prudent financial liquidity management assumes that sufficient cash and cash equivalents are maintained and that further

financing is available from guaranteed funds from credit lines. The table below shows maturity analysis of the Group’s

financial liabilities. The amounts shown in the table constitute contractual, undiscounted cash flows.

The maturity analysis as of 31 December 2024 and 31 December 2023 is presented in the table below:


31 December 2024
Contractual, undiscounted cash flows								Carrying amount
	Up to 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	Between 4 and 5 years	More than 5 years	Total	Carrying amount
Trade and other liabilities	178.4	-	-	-	-	-	178.4	178.4
Loan instalments	38.3	86.4	80.3	421.5	-	-	626.5	617.4
Interest and other charges	39.9	37.2	32.4	29.4	-	-	138.9	-


31 December 2023
Contractual, undiscounted cash flows								Carrying amount
	Up to 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	Between 4 and 5 years	More than 5 years	Total	Carrying amount
Trade and other liabilities	234.5	-	-	-	-	-	234.5	234.5
Loan instalments	50.6	34.6	80.6	74.6	391.8	-	632.2	623.9
Interest and other charges	43.3	40.7	36.9	31.5	26.2	-	178.6	-

Contractual, undiscounted payments of interests and other fees have been determined taking into consideration following

assumptions:

• for loans in foreign currency the expected cash flows were translated at spot rates at the reporting date,

• the interest payments on variable interest rate loans reflect market interest rates at the reporting date.

The future cash flows may differ from the amounts in the table as exchange rates or interest rates change.

Capital risk

The Group manages capital risk to ensure its ongoing operations, aiming to generate returns for shareholders, provide

benefits for other stakeholders, and maintain an optimal capital structure to minimize costs.

28. Tax risks and uncertain tax positions

Tax authorities may inspect the tax returns of the Group companies from 3 to 5 years after the date of their filing, if they

have not already been audited.

Tax inspections in AmRest Sp. z o.o.

a) On 28 September 2022, the Tax Authorities in Wrocław initiated a tax audit on VAT rates in AmRest Sp. z o.o. for the

periods from April 2018 to September 2018. The total VAT liability assessed by the Tax Authorities amounts to EUR 2.2

million (PLN 9.8 million – secured by the bank guarantee), without interest. On 11 December 2023 the Company

submitted the complaint to the Local Administrative Court. On 17 April 2024 the Court suspended the proceeding. On the

grounds of the Supreme Administrative Court resolution (number I FPS 1/24), on 17 December 2024 the Court revoked

the decision initially issued by the Tax Authorities and sent the case to the Tax Authorities to finalize the proceeding.

b) On 17 May 2019, the Tax Authorities in Katowice initiated a customs and tax inspection on VAT rates in AmRest Sp. z

o.o. for the periods from October 2018 to March 2019. The total VAT liability assessed by the Tax Authorities amounts to

EUR 4.0 million (PLN 17.9 million) which includes a penalty of 30% and does not include interest. The Company

appealed against the decisions to the Tax Authorities of second instance. On 8 October 2024 the Tax Authorities issued

the decision regarding the resumption of the previously suspended proceeding. On the grounds of the Supreme


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Administrative Court resolution (number I FPS 1/24), on 19 November 2024, the Tax Authorities of second instance

revoked the first-instance authority's decisions and discontinued the proceedings of the case.

c) On 12 October 2023, the Tax Authorities in Warsaw initiated a tax audit on VAT rates in AmRest Sp. z o.o. for the

periods from April 2019 to August 2019. On 2 May 2024, the Tax Authorities stated that the Company should tax the sale

at 8% VAT rate instead of 5% and the tax rulings do not apply. On 5 June 2024 the tax audit was transformed into tax

proceeding. On 21 August 2024 AmRest Sp. z o.o. received protocol from the audit of the tax books and on 4 September

2024 filed the reservations. On the grounds of the Supreme Administrative Court resolution (number I FPS 1/24), on 16

December 2024, the Tax Authorities decided to discontinue the proceedings of the case.

The Group analyzed the risk with regards to ongoing tax inspections related to VAT and assessed that it is more probable

than not that the tax authority will finally accept the Company’s VAT tax filings the same as in the case of other VAT

proceedings that have been finished. The same conclusions have been taken considering external tax advisors.

d) On 26 November 2018, the Tax Authorities initiated a tax audit on 2013 Corporate Income Tax (CIT) in AmRest Sp. z

o.o. The decision of the Tax Authorities was contested by the Company in the Court proceeding. On 4 April 2024, the

decision of the Tax Authorities was repealed by the Court and the tax proceeding was discontinued. The Company

received a refund amounting to EUR 0.6 million (PLN 2.7 million) including liability and interest.

e) On 12 March 2024, the Supreme Administrative Court confirmed that AmRest Sp. z o.o. provides services and

therefore is out of scope of the retail sales tax. Following the judgement, on 3 July 2024, the Company corrected its retail

sales tax settlements for the period from January 2021 to January 2024 and applied for retail sales tax overpayment

amounting to EUR 9.5 million (PLN 41.0 million). The retail sales tax refund was received in August 2024 (overpayment is

subject to CIT of 19%). After receiving the overpayment, the Company started the proceedings aimed to obtain delay

interests. No decision has been issued till the date of this report.

Tax inspections in other Group companies

f) Pastificio Service S.L.U., AmRest Tag S.L.U. and AmRest Holdings SE (Spain): On 22 March 2021, the entities

received tax settlement agreement indicating the additional tax liability amounting to EUR 1.1 million for CIT 2014-2017

with regards to certain tax benefits related to intangible assets (i.e. patent box regimen), which was paid on 14 June

2021. The Group disagreed and submitted on 26 July 2021 an economic-administrative claim which was rejected. On 21

December 2022, the companies filed before the National Audience the allegations writ and to date the Court's resolution

has not been received.

On 18 April 2023, AmRest Holdings SE (as head of the CIT Group) and Pastificio Service S.L.U received a notice of

initiation of tax audit relating to the patent box regime for fiscal years 2018 and 2019. In relation to this tax audit a tax

assessment amounted to EUR 0.5 million. However, on 1 December 2023, the companies submitted allegations before

the tax auditors that were dismissed. On 17 July 2024 the companies filed an economic-administrative claim which is

pending of resolution.

g) On 4 March 2024, Sushi Shop Management SAS was notified by the tax authorities of the initiation of a tax audit for

2021 and 2022. On 24 January 2024 the Company received a final tax assessment from French tax authorities that

results in a payment of a non-material amount for the Group and a reduction of tax losses amounting EUR 1.0 million.

In Group’s opinion there are no other material contingent liabilities concerning pending audits and tax proceedings, other

than those stated above.

29. Future commitments and contingent liabilities

As in the previous reporting period, the Group’s future liabilities are derived mainly from the franchise agreements,

development agreements and master franchise agreements. Group restaurants are operated in accordance with

franchise, development and master franchise agreements with YUM! and subsidiaries of YUM!, Burger King Europe

GmbH, Rex Concepts BK Poland S.A, Rex Concepts BK Czech S.R.O., Starbucks Coffee International, Inc. and its

affiliates. In accordance with these agreements, the Group is obliged to meet certain development commitments as well

as to make the renovations required to maintain the identity, reputation and high operating standards of each brand. More

details in note 1 and 34d.

Commitments regarding credit agreement are described in note 22.

30. Assets held for sale and discontinued operations

Disposal group in 2024

In December 2024, the Group signed an agreement that is subject to the fulfilment of certain conditions, which are

expected to be met on or before 31 March 2025, and by means of which 51% of the shares which AmRest Sp. z o.o.

holds in SCM Sp.z o.o. ("SCM") will be sold to R&D Sp. z o.o. Additionally, the supply chain management services and

quality assurance (QA) provided to date by SCM to the AmRest Group, together with the team providing such services,

will be transferred over to AmRest Group. SCM is a Polish, 51% owned subsidiary and a parent entity of SCM s.r.o.,

Czechia subsidiary.

Based on an analysis of the facts and circumstances related to the transaction, the Group assessed that the sale

transaction is highly probable, and the assets and liabilities of the SCM business meet the criteria to be classified as held

for sale. SCM business is expected to be disposed to the buyer in its current condition, the actions to complete the sale

were already initiated and the key terms were negotiated by parties. The closing of the transaction is subject to several

conditions and is expected to be completed in few months.

SCM disposal group does not meet the definition of discontinued operations.

As of 31 December 2024, the Group applied IFRS 5 “Non-current assets held for sale and discontinued

operations” (“IFRS 5”) for the presentation and measurement of the assets and liabilities of that disposal group. As

required by IFRS 5, the disposal group was measured at the lower of its carrying amount and fair value less costs to sell

(or costs to distribute).


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Details of major classes of assets held for sale and liabilities associated with assets held for sale are presented in the

table below:


	31 December 2024
Property, plant and equipment	3.1
Inventories	2.8
Trade and other receivables	9.0
Cash and cash equivalents	13.4
Other current and non-current assets	0.7
Assets classified as held for sale (A)	29.0
Trade payables and other liabilities	9.4
Tax and lease liabilities	0.5
Liabilities directly associated to assets held for sale (L)	9.9

Non- controlling interest related to disposal group (NCI)	10.0

Net carrying amount (A-L-NCI)	9.1

Discontinued operations in 2023

During the second quarter of 2023 AmRest Group disposed its Russian KFC operations and ceased all its operations and

corporate presence in Russia. The transaction represented full disposal of AmRest business held in Russia. That market

was a separate operating segment reported in the consolidated financial statements. The disposal met the definition of

discontinued operations under IFRS 5. The result of discontinued operations was presented separately from continued

operations.

The comparative data in these consolidated financial statements present the operations of business disposed in 2023 as

discontinued operations.


	YEAR ENDED
	31 December 2023
Restaurant sales	85.7
Restaurant expenses	(78.4)
General and administrative expenses	(3.0)
Other operating income/expenses	0.3
Net finance result	(0.7)
Income tax expense	(0.9)
Result from operating activities, after tax	3.0
Gain/loss on sale after income tax	3.5
Profit/loss from discontinued operation	6.5

Exchange differences	20.2
Other comprehensive income from discontinued operations	26.7

Details of accounting for loss of control are presented below:


	15 May 2023
Consideration received	100.0
Carrying amount of net assets sold	(61.2)
Transaction related and other costs	(3.1)
Gain on sale before income tax and reclassification of exchange differences	35.7
Exchange differences reclassified on loss of control	(28.6)
Income tax expense on loss of control	(3.6)
Gain/loss on sale after income tax	3.5


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Details of net assets deconsolidated as a result of transaction are presented below:


	15 May 2023
Property, plant and equipment	37.1
Right-of-use assets	65.1
Other non-current assets	5.1
Cash and cash equivalents	38.4
Other current assets	7.0
Total assets	152.7
Lease liabilities non-current	57.2
Other non-current liabilities	12.5
Lease liabilities current	15.8
Other current liabilities	6.0
Total liabilities	91.5
Carrying amount of net assets sold	61.2

Net operating, investing and financing cash flows from discontinued operations are presented below:


	YEAR ENDED
	31 December 2023
Net cash flows from operating activities	9.9
Net cash flows from investing activities	58.1
Net cash flows from financing activities	(4.6)
Net cash flows of discontinued operation	63.4

Financing cash flows reflect mainly lease payments, whereas investing activities cash outflows for purchase of property,

plant and equipment and - in 2023 only- net cash inflow on disposal transaction. Group received EUR 100 million of cash

proceeds and deconsolidated EUR 38.4 million of cash in Russian operations.

31. Transactions with related entities

Significant shareholders

As of 31 December 2024, FCapital Dutch, S.L. was the largest shareholder of AmRest and held 67.05% of its shares and

voting rights.

Grupo Far-Luca, S.A. de C.V. is the ultimate parent of the Group.

There were no transactions with FCapital Dutch, S.L., Grupo Far-Luca, S.A. de C.V. in 2024 and 2023.

Transactions with group entities of significant shareholders

The balances arising from the transactions carried out with Group entities of significant shareholders were as follows:


	31 December 2024	31 December 2023
Cash equivalents	5.1	-


	YEAR ENDED
	31 December 2024	31 December 2023
Interest income	0.1	-

Transactions with related parties are carried out at market conditions, were not material and are in the ordinary course of

the business.

Transactions with members of the Board of Directors and Senior Management Personnel

The remuneration of the Board of Directors and Senior Management Personnel (for these purposes, Senior Management

Personnel is understood to be those executives who report directly to the executive chairman or the chief executive

officer of the Company, and also for these purposes, the person responsible for Internal Audit) paid by the Group was as

follows:


	YEAR ENDED
	31 December 2024	31 December 2023
Remuneration of the members of the Board of Directors	0.8	0.8
Remuneration of Senior Management Personnel:
- Remuneration received by the Senior Executives*	4.4	3.7
- Share-based payment plans	0.4	-
Remuneration of Senior Management Personnel	4.8	3.7
Total compensation paid to key management personnel	5.6	4.5

*includes the total amount of the variable remuneration in cash (Short-Term Incentive Program) that is recognised in the year it is paid.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

The current Directors' Remuneration Policy was approved at the General Shareholders’ Meeting held on 12 May 2022

and will remain in force until 31 December 2025.

As of 31 December 2024 and 2023, the Group had no outstanding balances with the Senior Management Personnel,

except for the accrual and payment of annual bonuses to be paid in the first quarter of the following year.

As of 31 December 2024 and 31 December 2023 there were no material liabilities to former employees.

As of 31 December 2024 and 2023, the members of the Board of Directors, other than Executive Chairman, who has a

life insurance from 1 August 2023 and health insurance from 1 October 2023, had no life insurance nor pension fund at

the Company's expense. Members of the Board of Directors do not participate in Stock Option (SOP), Management

Incentive (MIP) and LTI Plans. Senior Management Personnel participate in share-based payments plans (details below

and in note 23). The Group has not granted any advances, loans or credits in favour of the Board Members or the Senior

Management.

The Group has arranged a third-party liability insurance policy covering the directors and managers of the group

companies. The premium paid in 2024 under the aforementioned insurance policy amounted to EUR 0.1 million (EUR 0.1

million in 2023).

The table below presents reconciliation of the movement in the number of shares of LTI 2021 plan, for Group’s Senior

Management Personnel, in the year ended 31 December 2024.


2024 (thousands of shares)	LTI 2021
Outstanding as of 1 January	-
Converted to shares on grant date	132
Transferred to participants	(79)
Outstanding as of 31 December	53
Vested	-
Unvested	53

In November 2024, a new LTI 2024 plan was approved with a fair value related to Group’s Senior Management Personnel

of EUR 1.0 million. In November 2023, the LTI 2023 was approved with a fair value EUR 1.0 million.

Total number of outstanding and exercisable options for Group’s Senior Management Personnel is presented below:


	31 December 2024	31 December 2023
Number of outstanding options (in thousands)	3,299	3,299
Number of exercisable options (in thousands)	2,273	1,274

Conflicts of interest concerning the Board Directors

In 2023 and 2024 the Board of Directors and their related parties have had no conflicts of interest requiring disclosure in

accordance with article 229 of the Revised Spanish Capital Companies Act.

32. Audit fees

The services entrusted to the auditors comply with the independence requirements established by the Spanish Audit Law

22/2015 of July 20.

During the years ended 31 December 2024 and 2023 PwC Auditores S.L., and other companies of the PwC network, as

well as other auditors, rendered professional services to the Group as detailed below:


2024	PwC Auditores, S.L.	Other companies of the PwC network	Other auditors	Total
Audit and other assurance services	0.3	0.8	0.4	1.5
Other verification services	0.1	-	-	0.1
Total	0.4	0.8	0.4	1.6

2023	PwC Auditores, S.L.	Other companies of the PwC network	Other auditors	Total
Audit and other assurance services	0.3	0.7	0.4	1.4
Other verification services	0.1	-	-	0.1
Total	0.4	0.7	0.4	1.5

Other assurance services include limited review of interim financial statements. Other verification services include the

verification of the non-financial information in the annual reports and agreed upon-procedures performed by the auditors.

The amounts detailed in the above table include the total fees for 2024 and 2023, irrespective of the date of invoice.

33. Events after the reporting period

There were no significant subsequent events after the reporting date .


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

34. Material accounting policies

a. Basis of consolidation

Business combinations

The Group accounts for business combinations using the acquisition method when the acquired set of activities and

assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set

of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a

minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set

of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the

gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.

The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at

acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business

combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the

proportionate share of the acquiree’s identifiable net assets.

Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss

immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre‑existing relationships. Such

amounts are generally recognised in profit or loss.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent

consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and

settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each

reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.

Subsidiaries

Subsidiaries are entities controlled by the Group.

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee

and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee

if, and only if, the Group has:

- Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the

investee),

- Exposure, or rights, to variable returns from its involvement with the investee,

- The ability to use its power over the investee to affect its returns.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes

to one or more of the three elements of control.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group

loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the

year are included in the consolidated financial statements from the date the Group gains control until the date the Group

ceases to control the subsidiary.

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any

related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained

in the former subsidiary is measured at fair value when control is lost.

Non-controlling interests and transactions with non-controlling interests

Changes in the Group’s interest in a subsidiary that do not result in a loss of control over subsidiary company are

recognised as equity transactions. In such cases, the Group adjusts the carrying amount of the controlling and non-

controlling interest and effect of transactions with non- controlling interest is presented in equity items allocated to the

owners of the parent.

Transactions eliminated on consolidation

Intra‑group balances and transactions, and any unrealised income and expenses arising from intra‑group transactions,

are eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated against the

investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as

unrealised gains, but only to the extent that there is no evidence of impairment.

b. Foreign currency

Functional currencies and presentation currency

The Group’s consolidated financial statements are presented in euros.

For each entity, the Group determines the functional currency and items included in the financial statements of each entity

are measured using that functional currency.

The functional currency of none of the subsidiaries is the currency of a hyperinflationary economy as of 31 December

2024 and 2023.

Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the

exchange rates at the dates of the transactions. For simplification monthly income statements are translated using

average monthly exchange rates based on the European Central Bank rates.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the

exchange rate at the reporting date. Non‑monetary assets and liabilities that are measured at fair value in a foreign

currency are translated into the functional currency at the exchange rate when the fair value was determined.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Non‑monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate

at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within

finance costs.

However, foreign currency differences arising from the translation of the following items are recognised in OCI:

- An investment in equity securities designated as of FVOCI,

- A financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is

effective,

- Qualifying cash flow hedges to the extent that the hedges are effective.

Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are

translated into euro at the exchange rates at the reporting date. The income and expenses of foreign operations are

translated into euro at the exchange rates at the dates of the transactions.

Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that

the translation difference is allocated to NCI. On disposal of a foreign operation, the component of OCI relating to that

particular foreign operation is reclassified to profit or loss.

c. Non-current assets held for sale and discontinued operations

The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered

principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups

classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to

sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs

and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or

disposal group is available for immediate sale in its present condition. Actions required to complete the sale should

indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn.

Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from

the date of the classification.

Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.

Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial

position.

A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is

classified as held for sale, and:

- Represents a separate major line of business or geographical area of operations,

- Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of

operations, or

- Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as

profit or loss after tax from discontinued operations in the statement of profit or loss.

d. Revenues

The Group operates chains of own restaurants under own bands as well as under franchise license agreements.

Additionally Group operates as franchisor (for own brands) and master-franchisee (for some franchised brand), and

develops chains of franchisee businesses, organizing marketing activities for the brands, and supply chain.

Revenue from contracts with customers is recognised when control of the goods or services is transferred to the

customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those

goods or services.

Restaurant sales

Revenues from the sale of goods by owned restaurants are recognised as Group sales when a customer purchases the

goods, which is when our obligation to perform is satisfied. These revenues are presented in “Restaurant sales” line in

the Consolidated Income Statement.

Franchise and other sales: owned brands

• Royalty fees (based on percentage of the applicable restaurant’s sales) are recognised as the related sales occur.

Royalty fees are typically billed and paid monthly.

• Initial fees, renewal fees: for each brand separately, the Group analyses if the activities performed are distinct from

the franchise brand. If they do not represent a separate performance obligation they are recognised on a straight-line

basis over the contract duration. If they represent a separate obligation, the Group estimates the allocation of the

part of the transaction price to that performance obligation.

• Advertising funds: for Sushi Group the Group operates the advertising funds that are designed to increase sales and

enhance the reputation of the own brands and its franchise owners. Contributions to the advertising cooperatives are

required for both Company-owned and franchise restaurants and are generally based on a percentage of restaurant

sales. Revenues for these services are typically billed and paid on a monthly basis. Advertising services that

promote the brand (rather than an individual location), such as national advertising campaigns, are not separable

between different franchise agreements or franchisees, and not distinct because the services and franchise right are

highly dependent and interrelated with each other. The sales-based advertising fund contributions from franchisees

are recognised as the underlying sales occur, are reported gross as part of revenue and presented in line “Franchise

and other sales”. Own restaurants participation in marketing costs as an element is presented as element of

operational costs.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

• Revenue from sale of products to franchisees is recognised at the moment of transaction which is when our

obligation to perform is satisfied.

Franchise and other sales: master-franchise agreements

As a result of signed master franchise agreements the Group was granted a master franchise rights for the agreed term

in the particular territories. Intellectual property is exclusive property of Master Franchisor and Master Franchisor grants

AmRest a license to use it in the agreed territory. Under the master franchise agreement parties established the

development commitments for development periods.

Performance obligations identified:

• AmRest’s performance obligation to YUM: to develop the market by opening new restaurants (either AmRest own or

sub-franchises) and promote the YUM’s brand by performing marketing activities. Managing marketing fund is not

distinct from the development of the market, and no separate remuneration was agreed between parties for those

services. Various streams of cash flows are agreed in MFA: AmRest collects initial fees and transfers them to YUM,

AmRest manages the marketing fund (collects revenue based contributions from owned and sub-franchised

restaurants and spends them on marketing activities, any unspent amount is to be paid to YUM and YUM spends it

on national campaigns at its discretion). If a certain point of market development level is reached, AmRest is enabled

to receive a bonus that represents the transaction price for the service performed for the Master Franchisor. To

reflect the substance of the transaction, incomes from sub franchisees from initial and marketing fees are netted with

the initial fees paid/actual marketing expenses and bonus earned.

• AmRest’s performance obligation to sub-franchisees: to grant sub-franchisees the right to use the system, system

property etc. and other services solely in connection with the conduct of the business at the outlet (sub-licensing

from YUM). The transaction price is agreed in the form of sales based royalties paid by franchisees. Initial fees and

renewal fees paid by franchisees are part of other performance obligations (described above). Corresponding costs

of acquiring license right from YUM are presented within costs of sales of franchise activities in the line “Franchise

and other expenses”.

Loyalty points programs

The Group has various loyalty points programs where retail customers accumulate points for purchases made which

entitle them to discount on future purchases. The loyalty points give rise to a separate performance obligation as they

provide a material right to the customer. A portion of the transaction price is allocated to the loyalty points awarded to

customers based on relative stand-alone selling price and recognised as a contract liability until the points are redeemed.

Revenue from the award points is recognised when the points are redeemed or when they expire or are likely to expire.

When estimating the stand-alone selling price of the loyalty points, the Group considers the likelihood that the customer

will redeem the points.

Gift cards

Gift cards may be issued to the guests in some brands and redeemed as a payment form in subsequent transactions.

The Group records a contract liability in the period in which gift cards are issued and proceeds are received. This liability

is calculated taking into account the probability of the gift cards’ redemption. The redemption rate is calculated based on

own and industry experience, historical and legal analysis. Revenue is recognised when a performance obligation is

fulfilled and a guest redeems the gift cards.

e. Government grants

Government grants that compensate the Group for expenses incurred are recognised in profit or loss as other operating

income on a systematic basis in the periods in which the expenses are recognised, unless the conditions for receiving the

grant are met after the related expenses have been recognised. In this case, the grant is recognised when it becomes

receivable.

f. Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it

relates to a business combination, or items recognised directly in equity or in OCI.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any

adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable

is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if

any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities

and their carrying amounts for financial reporting purposes at the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no

longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has

become probable that future taxable profits will allow the deferred tax asset to be recovered. Depending on the tax

jurisdiction where the Group’s subsidiaries operate recoverability of deferred taxes is assessed taking into account

potential time expiry of availability of deferred tax utilisation (e.g. in case of tax losses).

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is

realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the

reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are

recognised in correlation to the underlying transaction either in OCI or directly in equity.

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that

date, are recognised subsequently if new information about facts and circumstances change. The adjustment is either

treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement

period or recognised in profit or loss.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off

current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes

levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to

settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in

each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or

recovered.

g. Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a

lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for

consideration.

The Group as a lessee

At commencement or on modification of a contract that contains a lease component, the Group allocates the

consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the

leases of property the Group has elected not to separate non-lease components and account for the lease and non-lease

components as a single lease component.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is

initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and

adjusted for certain remeasurements of the lease liability.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-

line basis. If the group is reasonably certain to exercise a purchase option, the right of-use asset is depreciated over the

underlying asset’s useful life.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement

date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental

borrowing rate. Generally, the Group uses the incremental borrowing rates as the discount rates.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources

(differentiated by currency of the debt) and makes certain adjustments to reflect the terms of the lease, based on long-

term IRS quotation.

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment

made (amortised cost using the effective interest method). It is remeasured when there is:

- a change in future lease payments arising from a change in an index or rate,

- a change in the estimate of the amount expected to be payable under a residual value guarantee, or

- changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a

termination option is reasonably certain not to be exercised.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the

right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group incurs expenses on maintenance, security and promotion in the shopping malls (so called “common area

charges”). These items are separate services (non-lease components) and are recognised as an operating expenses.

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-

term leases. The Group recognises the lease payments associated with these leases as an expenses on a straight-line

basis over the lease term.

The Group as a lessor

At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the

contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, it

determines at lease inception whether each lease is a finance lease or an operating lease.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It

assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not

with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption

described above, then it classifies the sub-lease as an operating lease.

Rental income arising from operating lease is accounted for on a straight-line basis over the lease terms and included in

other income in the income statement.

h. Property, plant and equipment

Items of property, plant and equipment (PPE) are measured at cost less accumulated depreciation and any accumulated

impairment losses.

The initial value of the property, plant and equipment of new restaurants built internally (such as construction sites and

leasehold improvements in restaurants) include the cost of materials, direct labour, costs of architecture design, legal

assistance, the present value of the expected cost for the decommissioning of an asset after its use, wages and salaries

and benefits of employees directly involved in launching a given location.

The Group capitalizes the restaurants costs mentioned above incurred from the moment when the completion of the

project is considered likely. In the event of a later drop in the probability of launching the project at a given location, all the

previously capitalised costs are transferred to the income statement.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as

separate items (major components) of property, plant and equipment.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the

expenditure will flow to the Group. All other repairs and maintenance are charged to the income statement during the

financial period in which they are incurred.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

Gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss, under „other operating

gains and losses”.

Amortisation and depreciation

Property, plant and equipment, including their material components, are depreciated on a straight-line basis over the

expected useful life of the assets/components. Land is not depreciated. Construction in progress is stated at cost, net of

accumulated impairment losses, if any.

The estimated useful lives of property, plant and equipment are as follows:


Buildings, mainly drive- through restaurants	30 - 40 years
Costs incurred on the development of restaurants (including leasehold improvements and costs of development of the restaurants)	10 - 20 years*
Kitchen equipment assets	3 - 14 years
Vehicles	4 - 6 years
Other property, plant and equipment	3 - 10 years

*over the lease term

The residual value, depreciation method and economic useful lives are reassessed at least annually.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a

substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other

borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that

an entity incurs in connection with the borrowing of funds.

i. Franchise, license agreements and other fees

The Group operates own restaurants on the basis of franchise agreements (third party brands). In accordance with the

franchise agreements, the Group is obliged to pay a non-reimbursable initial fee upon opening each new restaurant and

further fees over the period of the agreement (in the amount of a % of sales revenues, usually 5-6%), and to allocate a %

of revenues (usually 5%) to advertising activities specified in the respective agreements. Moreover, after the end of the

initial period of the franchise agreement, the Group may renew the franchise agreement after paying a renewal fee.

Non-reimbursable initial fees are in fact fees for the right to use the trademark and are included in intangible assets and

amortised over the period of the franchise (usually 10 years). Further payments made in the period of the agreement are

disclosed in the income statement upon being made. Fees for extending the validity of the agreements are amortised as

of the date of a given extension agreement coming into force.

The local marketing fee is recognised in the income statement as incurred in category direct marketing costs.

j. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Acquired licenses for computer software

are capitalised on the basis of costs incurred to acquire and prepare specific software for use.

Franchise right-of-use for Pizza Hut, KFC, Burger King and Starbucks trademarks are recognised at the acquisition price.

The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.

Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure

is reflected in profit or loss in the period in which the expenditure is incurred. Following initial recognition, intangible

assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset

to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised

in profit or loss as incurred.

Amortisation

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever

there is an indication that the intangible asset may be impaired.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or

at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the

indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective

basis.

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the

asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in

accounting estimates. The estimated useful lives of assets are as follows:


Intangible asset
Acquired routinely
Computer software		3-5 years
Franchise rights		5-10 years
Other intangible assets		5-10 years
Acquired in business combinations	Intangible asset category
La Tagliatella brand	Marketing related	indefinite
Sushi Shop brand	Marketing related	indefinite


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)


Intangible asset
Blue Frog brand	Marketing related	20 years
Sushi Shop loyalty program	Customer related	10 years
La Tagliatella franchisee relations	Customer related	24 years
Favourable lease agreements	Contract based	2-10 years over the period to the end of the agreement
Clients’/vendors’/ Franchise databases	Customer related	2-5 years
Exclusivity rights brand operator	Customer related	6-12 years

k. Goodwill

Goodwill on acquisition of a business is initially measured at acquisition cost which is an excess of:

• the sum total of:

o the consideration paid,

o the amount of all non-controlling interest in the acquiree, and

o in the case of a business combination achieved in stages, the fair value, at the acquisition-date, of an

interest in the acquiree,

• over the net fair value of the identifiable assets and liabilities at the acquisition date.

Goodwill on consolidation is disclosed in a separate line in the statement of financial position and measured at cost net of

accumulated impairment write-downs. Goodwill is tested for impairment annually or more frequently if events or changes

in circumstances indicate that the carrying amount may be impaired.

Goodwill of foreign operations is translated into euro at the exchange rates at the reporting date. Gains and losses on the

disposal of an entity include the carrying amount of goodwill allocated to the entity sold.

l. Impairment of non-financial assets

The Group periodically reviews the carrying amounts of its non‑financial assets (other than investment property,

inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication

exists, then the asset’s recoverable amount is estimated for the purpose of impairment test.

A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely

independent of the cash inflows from other assets or groups of assets.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are

largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined

for the cash-generating unit to which the asset belongs. The recoverable amount of an asset or CGU is the greater of its

value in use and its fair value less costs to sell.

Goodwill arising from a business combination is allocated groups of CGUs that are expected to benefit from the synergies

of the combination.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognised in profit or loss in line “Net impairment losses on other assets” They are allocated first

to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other

assets in the CGU.

An assessment is made at each reporting date as to whether there is any indication that previously recognised

impairment losses may no longer exist or may have decreased.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the

extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss had been recognised. The reversal of impairment losses in recognised

in line “ Net impairment losses on other assets”.

Group performs in general two types of impairment tests: on restaurant levels, when impairment indicators exists and for

businesses were goodwill is assigned or impairment indicators identified.

Restaurants tests - procedure performed twice a year

Usually individual restaurants are considered separate CGUs in Group.

Impairment indicators are checked twice a year for of all Group’s own restaurants that are operating over 24 months in

AmRest structures. The impairment test is performed in following cases:

• Store was already fully or partially impaired during previous impairment processes.

• Restaurant EBITDA for last 12 months is negative.

• Store is planned to be closed.

If at least one of the above indicators is identified for the store then the restaurant is tested for impairment. Value in use is

usually determined for the remaining estimated period of operation, as well analysis of potential onerous liabilities (mainly

for rental agreement costs) is performed for planned closures.

The recoverable amount of an asset is determined at the level of a single restaurant as the smallest unit (or set of assets)

generating cash flows that are largely independent of the cash inflows generated by other assets or groups of assets.

Restaurant assets include amongst others property, plant and equipment, intangible assets and right-of-use assets.

The recoverable amount of the cash-generating unit (CGU) is determined based on a value in use calculation for the

remaining useful life, determined by lease expiry date or restaurant closure date (if confirmed), using the discount rate for

each individual country.


AMREST GROUP Consolidated Financial Statements
for the year ended 31 December 2024

(all figures in EUR millions unless stated otherwise)

For recoverable value calculations of value in use, the Group uses cash flow projections based on financial budgets that

require relevant judgments and estimates. Cash flow projections are prepared for individual restaurants. As a starting

point, the Group uses the most recent budgets and forecasts prepared on the level of brands in certain countries. Next,

those assumptions are enhanced or worsen, to reflect the best estimate for expected cash projections of the analysed

restaurants, if needed. Individual projections for sales and costs may depend on restaurant’s main streams of revenues

(different for take-away business, dine-in, food courts), cost pressure in various markets, supply chain related elements or

marketing actions.

Discounted cash flows do not include outflows relates to rental agreements as those are considered an element of

financing and reflected in discount rate applicable for test.

Goodwill tests - unless impairment indicators exist, procedure performed once a year

For businesses where goodwill is allocated impairment tests are performed at least once a year. Goodwill is testes

together with intangibles (including those with indefinite useful lives), property plant and equipment, right-of-uses assets

as well other non-current assets allocated to groups of CGUs where goodwill is monitored. If impairment indicators exist

additional tests are performed. Following indicators are analysed:

Arising from external sources of information such as:

• Significant adverse changes that have taken place (or are expected in the near future) in the technological, market,

economic or legal environment in which the entity operates or in its markets,

• Increases in interest rates, or other market rates of return, that might materially affect the discount rate used in

calculating the asset’s recoverable amount.

Arising from internal sources of information, including:

• Plans to discontinue or restructure the operation to which the asset belongs, as well as reassessing the asset’s

useful life from indefinite to finite,

• Deterioration in the expected level of the asset’s performance i.e. when the actual net cash outflows or operating

profit or loss are significantly worse than budgeted,

• Where management’s own forecasts of future net cash inflows or operating profits show a significant decline from

previous budgets and forecasts.

Materiality applies in determining whether an impairment review is required. If previous impairment reviews have shown a

significant excess of recoverable amount over carrying amount, no review would be necessary in the absence of an event

that would eliminate the excess. Previous reviews might also have shown that an asset’s recoverable amount is not

sensitive to one or more of the impairment indicators.

Annual mandatory impairment tests for goodwill are made in 4th quarter.