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ConsolidatedFinancialStatementsfortheyearended31December2020AmRestHoldingsSE24FEBRUARY2021
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3
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Consolidated income statement for the year ended 31 December 2020......................................................................................5
Consolidated statement of comprehensive income  for the year ended 31 December 2020....................................................6
Consolidated statement of financial position at 31 December 2020.............................................................................................7
Consolidated statement of cash flows  for the year ended 31 December 2020...........................................................................8
Consolidated statement of changes in equity for the year ended 31 December 2020................................................................9
Notes to the Consolidated Financial Statements............................................................................................................................10
1. General information on AmRest Group..................................................................................................................................10
2. Group Structure.........................................................................................................................................................................13
3. Basis of preparation..................................................................................................................................................................15
4. Use of judgements and estimates...........................................................................................................................................17
5. Segment reporting.....................................................................................................................................................................20
6. Business combinations.............................................................................................................................................................22
7. Revenues.....................................................................................................................................................................................22
8. Operating costs and losses.......................................................................................................................................................23
9. Other operating income/expenses..........................................................................................................................................26
10. Impairment losses...................................................................................................................................................................26
11. Finance income........................................................................................................................................................................26
12. Finance costs............................................................................................................................................................................26
13. Income taxes............................................................................................................................................................................27
14. Property, plant and equipment..............................................................................................................................................29
15. Leases........................................................................................................................................................................................30
16. Intangible assets......................................................................................................................................................................32
17. Goodwill....................................................................................................................................................................................33
18. Impairment of non-current assets........................................................................................................................................34
19. Financial assets measured at fair value................................................................................................................................41
20. Other non-current assets.......................................................................................................................................................41
21. Inventories................................................................................................................................................................................42
22. Trade and other receivables...................................................................................................................................................42
23. Other current assets................................................................................................................................................................42
24. Cash and cash equivalents.....................................................................................................................................................42
25. Equity.........................................................................................................................................................................................43
26. Dividends paid and received..................................................................................................................................................47
27. Non-controlling interests........................................................................................................................................................48
28. Earnings per share...................................................................................................................................................................50
29. Borrowings...............................................................................................................................................................................50
30. Collateral on borrowings........................................................................................................................................................53
31. Employee benefits and share based payments...................................................................................................................53
32. Provisions.................................................................................................................................................................................57
33. Tax risks and uncertain tax positions....................................................................................................................................58
34. Trade and other accounts payables......................................................................................................................................61
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35. Future commitments and contingent liabilities...................................................................................................................62
36. Transactions with related entities.........................................................................................................................................62
37. Financial instruments..............................................................................................................................................................63
38. Audit fees..................................................................................................................................................................................67
39. Events after the reporting period..........................................................................................................................................67
40. Significant accounting policies...............................................................................................................................................67
a. Basis of consolidation..........................................................................................................................................................67
b. Foreign currency...................................................................................................................................................................69
c. Non-current assets held for sale and discontinued operations......................................................................................69
d. Revenues...............................................................................................................................................................................70
e. Government grants..............................................................................................................................................................71
f. Income tax..............................................................................................................................................................................71
g. Leases.....................................................................................................................................................................................72
h. Property, plant and equipment..........................................................................................................................................73
i. Franchise, license agreements and other fees...................................................................................................................74
j. Intangible assets....................................................................................................................................................................74
k. Goodwill.................................................................................................................................................................................75
l. Impairment of non-financial assets.....................................................................................................................................75
m. Investment properties........................................................................................................................................................77
n. Inventories.............................................................................................................................................................................77
o. Cash and cash equivalents..................................................................................................................................................77
p. Financial assets.....................................................................................................................................................................77
q. Financial liabilities.................................................................................................................................................................79
r. Derivative financial instruments and hedge accounting..................................................................................................79
s. Share based payments and employee benefits................................................................................................................80
t. Provisions...............................................................................................................................................................................81
u. Equity.....................................................................................................................................................................................81
41. Changes in accounting policies, reclassification and restatement of comparatives summary.....................................82
42. Standards issued but not yet effective..................................................................................................................................83
Signatures of the Board of Directors................................................................................................................................................85
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Consolidated income statement for the year ended 31 December 2020
year ended
Note
31 December 2020
31 December 2019
Continuing operations
Restaurant sales
1 452.3
1 855.6
Franchise and other sales
70.6
105.9
Total revenue
5,7
1 522.9
1 961.5
Restaurant expenses:
  Food and merchandise
(413.2)
(523.8)
  Payroll and other employee benefits
(409.6)
(469.6)
  Royalties
(67.9)
(88.6)
  Occupancy and other operating expenses
(517.0)
(560.3)
Franchise and other expenses
(54.6)
(73.7)
Gross Profit
60.6
245.5
General and administrative expenses
(143.4)
(147.3)
Net impairment losses on financial assets
10
(6.2)
(4.1)
Net impairment losses on other assets
10
(84.6)
(35.4)
Other operating income/expenses
9
31.1
46.9
Profit/loss from operations
(142.5)
105.6
Finance income
11
2.1
33.8
Finance costs
12
(61.0)
(46.0)
Profit/loss before tax
(201.4)
93.4
Income tax expense
13
17.7
(26.5)
Profit/loss for the period
(183.7)
66.9
Attributable to:
Shareholders of the parent
(182.0)
65.1
Non-controlling interests
(1.7)
1.8
Profit/loss for the period
(183.7)
66.9
year ended 
31 December 2020
year ended
31 December 2019
Basic earnings per ordinary share in EUR
28
(0.83)
0.30 
Diluted earnings per ordinary share in EUR
28
(0.83)
0.29 
The above consolidated income statement should be read in conjunction with the accompanying notes.
(all figures in EUR millions unless statedotherwise)
6
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Consolidated statement of comprehensive income for the year ended 31 December 2020
year ended
Note
31 December 2020
31 December 2019
Profit/loss for the period
(183.7)
66.9
Other comprehensive income
25
Exchange differences on translation of foreign operations
(19.3)
9.0
Net investment hedges
(10.9)
1.7
Income tax related to net investment hedges
1.8
(0.3)
Othercomprehensiveincome/lossfortheperiod
(28.4)
10.4
Total comprehensive income/loss for the period
(212.1)
77.3
Attributable to:
Shareholders of the parent 
(210.3)
75.7
Non-controlling interests
(1.8)
1.6
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Consolidated statement of financial positionat 31 December 2020
Note
31 December 2020
31 December 2019
Assets
Property, plant and equipment
14
475.0
584.9
Right-of-use assets
15
709.6
852.7
Goodwill 
17
312.1
350.2
Intangible assets
16
240.7
253.5
Investment properties
4.9
5.2
Financial assets measured at fair value
19
-
76.2
Other non-current assets 
20
22.9
25.1
Deferred tax assets
13
37.6
22.4
Total non-current assets
1 802.8
2 170.2
Inventories
21
26.5
29.9
Trade and other receivables
22, 37 
60.4
104.6
Corporate income tax receivables
7.3
4.8
Other current assets 
23
12.6
19.3
Cash and cash equivalents
24
204.8
106.2
Total current assets 
311.6
264.8
Total assets 
2 114.4
2 435.0
Equity 
Share capital 
22.0
22.0
Reserves
170.1
178.3
Retained earnings 
114.6
296.6
Translation reserve
(48.9)
(29.7)
Equity attributable to shareholders of the parent
257.8
467.2
Non-controlling interests
25
6.9
9.5
Total equity
25
264.7
476.7
Liabilities
Interest-bearing loans and borrowings
29, 37
676.5
656.0
Lease liabilities
15
616.6
719.4
Employee benefits liability
31
0.3
0.6
Provisions
32
32.0
22.8
Deferred tax liability
13
39.0
51.4
Other non-current liabilities 
7.2
9.2
Total non-current liabilities
1 371.6
1 459.4
Interest-bearing loans and borrowings
29, 37
94.3
64.1
Lease liabilities
15
144.8
144.7
Trade and other accounts payable
34
235.4
279.5
Corporate income tax liabilities
3.6
10.6
Total current liabilities
478.1
498.9
Total liabilities
1 849.7
1 958.3
Total equity and liabilities
2 114.4
2 435.0
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Consolidated statement of cash flows for the year ended 31 December 2020
year ended
Note
31 December 2020
31 December 2019
Cash flows from operating activities
Profit/loss for the period
(183.7)
66.9
Adjustments for:
  Amortisation/ Depreciation
253.4
249.3
  Net interest expense
46.4
43.0
  Foreign exchange result
11.5
(1.5)
  Result on disposal of property, plant and equipment and   intangibles
2.1
1.6
  Result on disposal of Pizza Portal
-
(37.1)
  Impairment of non-financial assets
84.6
35.4
  Share-based payments
2.6
(9.6)
  Fair value measurement of financial assets
-
(31.7)
  Tax expense
(17.7)
26.5
  Rent concessions
(18.6)
-
  Other
0.7
(0.6)
Working capital changes:
24
  Change in trade and other receivables and other assets
27.0
(30.4)
  Change in inventories
2.2
(3.9)
  Change in payables and other liabilities 
(24.5)
32.7
  Change in provisions and employee benefits
8.9
6.3
Cash generated from operations
194.9
346.9
Income tax paid/received
(16.1)
(21.2)
Net cash from operating activities
178.8
325.7
Cash flows from investing activities
Net cash outflows on acquisition 
-
(24.1)
Proceeds from the sale of the business
20.0
-
Proceeds from the sale of property, plant and equipment, and intangible assets
7.6
0.4
Proceeds from the sale of financial assets measured at fair value
75.5
-
Purchase of property, plant and equipment 
(84.9)
(182.7)
Purchase of intangible assets
(6.5)
(13.6)
Net cash used in investing activities
11.7
(220.0)
Cash flows from financing activities
Proceeds from share transfers (employees options)
0.6
0.9
Repurchase of treasury shares
25
-
(0.9)
Proceeds from loans and borrowings
29
139.6
71.6
Repayment of loans and borrowings
29
(80.9)
(15.8)
Payments of lease liabilities including interests paid
(134.9)
(148.3)
Interest paid 
29
(19.4)
(17.9)
Interest received
0.8
0.5
Dividends paid to non-controlling interest owners
26
(0.8)
(1.4)
Transactions with non-controlling interest
-
(5.8)
Net cash from financing activities
(95.0)
(117.1)
Net change in cash and cash equivalents
95.5
(11.4)
Effect of foreign exchange rate movements
3.1
(0.8)
Balance sheet change of cash and cash equivalents
98.6
(12.2)
Cash and cash equivalents, beginning of period
106.2
118.4
Cash and cash equivalents, end of period
24
204.8
106.2
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Consolidated statement of changes in equity for the year ended 31 December 2020
Attributable to the shareholders of the parent
Share capital
Reserves
Retained earnings
Translation reserve
Total
Non-controlling interest
Total equity
As at 1 January 2020
22.0
178.3
296.6
(29.7)
467.2
9.5
476.7
Profit/loss for the period
-
-
(182.0)
-
(182.0)
(1.7)
(183.7)
Other comprehensive income/loss
-
(9.1)
-
(19.2)
(28.3)
(0.1)
(28.4)
Total comprehensive income/loss
-
(9.1)
(182.0)
(19.2)
(210.3)
(1.8)
(212.1)
Transaction with non-controlling interests
-
-
-
-
-
(0.8)
(0.8)
Share based payments
25
-
0.9
-
-
0.9
-
0.9
As at 31 December 2020
22.0
170.1
114.6
(48.9)
257.8
6.9
264.7
Attributable to the shareholders of the parent
Share capital
Reserves
Retained earnings
Translation reserve
Total
Non-controlling interest
Total equity
As at 1 January 2019
22.0
206.1
231.5
(38.9)
420.7
9.9
430.6
Profit for the period
-
-
65.1
-
65.1
1.8
66.9
Other comprehensive income
-
1.4
-
9.2
10.6
(0.2)
10.4
Total comprehensive income
-
1.4
65.1
9.2
75.7
1.6
77.3
Transaction with non-controlling interests
-
(5.1)
-
-
(5.1)
(2.0)
(7.1)
Deferred payment in shares 
25
-
(13.0)
-
-
(13.0)
-
(13.0)
Purchases of treasury shares
-
(0.9)
-
-
(0.9)
-
(0.9)
Share based payments
25
-
(10.2)
-
-
(10.2)
-
(10.2)
As at 31 December 2019
22.0
178.3
296.6
(29.7)
467.2
9.5
476.7
The above consolidated income statement should be read in conjunction with the accompanying notes.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Notes to the Consolidated Financial Statements
1.General information on AmRest Group
AmRestHoldingsSE(“TheCompany”,“AmRest”)wasincorporatedintheNetherlandsinOctober2000.Since 2008theCompanyoperatesaEuropeanCompany(SocietasEuropaea,SE).Thecompanyisdomiciledin Spain.
There was no change in name of reporting entity during the reporting period.
PaseodelaCastellana163,28046(Madrid),SpainistheCompany’sregisteredofficeasof31December2020 and has not changed during the year 2020.
Hereinafter the Company and its subsidiaries shall be referred to as the “Group” and “AmRest Group”. 
On27April2005,thesharesofAmRestHoldingsSEwerequotedforthefirsttimeontheWarsawStock Exchange(“WSE”)andon21November2018werequotedontheMadrid,Barcelona,BilbaoandValencia StockExchanges,throughtheSpanishAutomatedQuotationSystem(SistemadeInterconexiónBursátil- SIBE).Since21November2018AmRest’sshareshavebeenquotedsimultaneouslyonboththeabovestock exchanges (dual listing). 
Grupo Finaccess S.A.P.I. de C.V. is the ultimate parent of the Group.
TheGroupisthelargestindependentchainrestaurantoperatorinCentralandEasternEurope.TheGroupis alsoconductingitsoperationsinWesternEurope,RussiaandChina.TheGroup’sprincipalplaceofbusiness is Europe.
TheGroupoperatesKentuckyFriedChicken(“KFC”),PizzaHut(“PH”),BurgerKing(“BK”)andStarbucks(“SBX”) restaurantsthroughitssubsidiariesinPoland,theCzechRepublic(hereinafterCzechia),Hungary,Slovakia, Russia,Serbia,Croatia,Bulgaria,Romania,Germany,France,Austria,SloveniaandSpain,onthebasisof franchiserightsgranted.Startingfrom1October2016theGroupasamaster-franchiseehastherightto grantalicensetothirdpartiestooperatePizzaHutExpressandPizzaHutDeliveryrestaurants(sub-franchise) incountriesofCentralandEasternEurope,whileensuringacertainshareofrestaurantsoperateddirectly byAmRest.PizzaHutrestaurantsacquiredinFranceinMay2017,inGermanyinJuly2017andinRussiain June 2018 are operated both by AmRest and its sub-franchisees based on master-franchise agreements.
InSpain,France,GermanyandPortugaltheGroupoperatesitsownbrandsLaTagliatella.Thisbusinessis basedonownrestaurantsandthefranchiseagreementssignedwithnon-relatedcompanies.Itissupported bythecentralkitchenlocatedinSpainwhichproducesanddeliversproductstothewholenetworkofthe mentionedownbrands.TheGroupalsooperatesitsownbrandsBlueFrog(inChinaandSpain)andKABB(in China). 
In2018theGroupacquiredtheBacoaandSushiShopbrands,asaresultofwhichitoperatesownand franchiserestaurantsinSpain(Bacoa)andownandfranchiseSushiShoprestaurantsamongtheothersin France,Belgium,Spain,severalMiddleEastcountries,Switzerland,UnitedKingdom,Luxembourg,Italy, Portugal.BacoaisaSpanishpremiumburgerchain,andSushiShopistheoperatoroftheleadingEuropean chain of Japanese cuisine restaurants. 
Additionally,amongownbrandstheGroupoperatesvirtualbrandsPokaï,Lepieje,‘OiPoke,MoyaMisa Ramen,PierwszeiDrugie,VivaSalad!,SushiTone,Eat’sFine,Cremontano.Theofferofvirtualbrandsin PolandisavailablealsounderFoodAboutconceptthatenablesorderingdifferentvirtualbranddisheswithin one order.
Asof31December2020theGroupoperates2337restaurants(ownandfranchise)incomparisonto2336 restaurants as of 31 December 2019 (restated as a result of change in virtual brands counting).
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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TheGroupoperatesitsrestaurantsmainlyonafranchisebasis.Howeverbeingmaster-franchiseeandperformingbusinessthroughownbrandshasbecomemore important. The table below shows the terms and conditions of cooperation with franchisors and franchisees of particular brands operated by AmRest.
Activity where AmRest is a franchisee
Brand
KFC
Pizza Hut Dine-In
Pizza Hut Express, Delivery
Burger King
Starbucks 1)
Franchisor/
Partner
Yum! Restaurants Europe Limited
Pizza Hut Europe Limited
Pizza Hut Europe Limited
Burger King Europe GmbH
Starbucks Coffee International, Inc/Starbucks EMEA Ltd., Starbucks Manufacturing EMEA B.V.
Area covered by the agreement
Poland, Czechia,
Hungary, Bulgaria,
Serbia, Croatia, Russia,
Spain, Germany, France,
Austria, Slovenia
Poland
Poland, Czechia, Hungary, France, Russia, Germany, Slovakia. 
Poland, Czechia, Bulgaria, Slovakia, Romania
Poland, Czechia, Hungary, Romania, Bulgaria, Germany, Slovakia, Serbia
Term of agreement
10 years with possibility of extension for a further 10 years
10 years with possibility of extension for a further 10 years
10 years with possibility of extension for a further 10 years and 5 years
Poland, Czechia, Bulgaria, Slovakia, Romania – 20 years or 10 years 4)
Since 20 November 2018: 10 years for restaurants opened during the agreed development period.
15 years, possibility of extension for a further 5 years; in Romania till 10 October 2023 16 years, in Bulgaria till 1 October 2027 20 years
Preliminary fee
up to USD 53.4 thousand 2)
up to USD 53.4 thousand 2)
USD 26.7 thousand 2)
USD 50 thousand or USD 25 thousand, in Czechia USD 60 thousand 4)
Since 20 November 2018: USD 30 thousand for restaurants opened during the agreed development period.
USD 25 thousand
Franchise fee
6% of sales revenues 3)
6% of sales revenues 3)
6% of sales revenues 3)
5% of sales revenues, in Czechia (for 5 restaurants) 3% of sales revenues for first 5 years, then 5%
Since 20 November 2018 for restaurants opened during the agreed development period: 3,5% of revenues in first 2 years growing to 4%, 4,5% and 5% in next years.
6% of sales revenues 5)
Marketing costs
5% of sales revenues
5% of sales revenues
6% or 5% of sales revenues depending on the concept 3)
5% of sales revenues, in Czechia 3% of sales revenues for first 3 years, then 5%.
Since 20 November 2018 for restaurants opened during the agreed development period 4% or 5% of sales revenues (depending on the country) and 3% for flagships.
amount agreed each year
(all figures in EUR millions unless statedotherwise)
12
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Activity performed through own brands
Brand
La Tagliatella
Blue Frog
KABB
Bacoa
Sushi Shop
Area of the activity
Spain, France, Germany, Portugal
China, Spain
China
Spain
France, Spain, Belgium, Italy, Switzerland, Luxemburg, UK
Activity where AmRest is a franchisor (own brand or based on master-franchise agreements)
Brand
Pizza Hut Dine-In
Pizza Hut Express, Delivery
La Tagliatella
Blue Frog
BACOA
Sushi Shop
Partner
Yum Restaurants International Holdings LLC
Pizza Hut Europe Limited, Yum Restaurants International Holdings LLC
Own brand
Own brand
Own brand
Own brand
Area covered by the agreement
Germany, Russia, Armenia and Azerbaijan
Germany, France, CEE (Hungary, Czechia, Poland, Slovakia), Russia, Armenia and Azerbaijan
Spain, France
Spain, China
Spain
France, Belgium, Spain, United Arab Emirates, Saudi Arabia, Italy, Portugal
Term of agreement
10 years with possibility of extension6)
10 years with possibility of extension6)
10 years with possibility of extension
10 years with possibility of extension
10 years with possibility of extension
Franchise agreements: 5 years with a limited territorial exclusivity and EADA i.e. “master franchise”: exclusivity for specific territories granted to from  2 up to 14 years.
1)AmRestGrouptookup82%andStarbucks18%ofthesharecapitalofthenewly-establishedcompaniesinPoland,CzechiaandHungary. Intheeventofdefault,deadlock,ordisputedtake-overorchangeofcontroloverAmRestHoldingsSEand/oritsshareholders,Starbucks willbeentitledtoincreaseitsshareto100%bypurchasingsharesfromtheGroup.Optionuponterminationforeventofdefaultordeadlock aresymmetricforbothparties,sothatAmRestwillalsobeentitledtoexercisetheoptiontopurchasealloftheSharesofStarbucks.AccordingtoGroupassessmentasofthedayofthisreportissuancetherearenoindicatorsmakingthementionedaboveoptionsrealizable. TheGroupacquired100%ofsharesinRomanianandBulgarianentities,beingthesoleoperatorsinthesemarkets.InGermanytheGroup acquired 100% of shares  in a key operator in this market.
2) The fee is updated at the beginning of each calendar year for inflation.
3) Preliminary franchise fees and marketing costs might be changed if certain conditions set in the agreement are met.
4)Validityperiodoffranchiseeagreement,thereforelicensesforBurgerKingrestaurantsopenedinPolandintheperiodfrom1March2009till30June2010,andalsofornewly-openedrestaurantsinPolandwasextendedfrom10to20yearssincethedateof restaurantopening,however,withouttheoptionofprolongationforthenext10years,whichwasprovidedintheoriginaldevelopment agreementwithAmRestSp.zo.o.InrelationtorestaurantsopenedinPolandintheperiodfrom1March2009to30June2010andin relationtorestaurantsopenedafterthisperiod(forfranchiseagreementsfor20years)theinitialfranchisepaymentwasincreasedfrom USD 25,000 to USD 50,000. On 20 November 2018 a new Development Agreement was signed, amended on 15 September 2020.
5) Due to global Starbucks decision, the franchisee fee was decreased to 0% for the period April – June 2020.
6) In case of Russia and Germany MFA term ends on 31 May 2022.
(all figures in EUR millions unless statedotherwise)
13
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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2.Group Structure
As of 31 December 2020, 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 Acquisition Subsidiary Ltd.
Birkirkara, Malta
AmRest Holdings SE
100.00%
May 2007
AmRest TAG S.L.U.
Madrid, Spain
AmRest Sp. z o.o.
100.00%
March 2011
AmRest HK Ltd
Hong Kong, China
AmRest Holdings SE
100.00%
September 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
Mriehel, Malta
AmRest China Group PTE Ltd
100.00%
December 2012
Horizon Consultants Ltd.
Mriehel, Malta
AmRest China Group PTE Ltd
100.00%
December 2012
AmRest Kft
99.00%
AmRest Management Kft
Budapest, Hungary
AmRest TAG S.L.U.
1.00%
August 2018
GM Invest SRL
Brussels, Belgium
AmRest TAG S.L.U.
100.00%
October 2018
GM Invest SRL
9.47%
Sushi Shop Group SAS
Paris, France
AmRest TAG S.L.U.
90.53%
October 2018
AmRest France SAS
Paris, France
AmRest Holdings SE
100.00%
December 2018
Sushi Shop Management SAS
Paris, France
Sushi Shop Group SAS
100.00%
October 2018
Sushi Shop Holding USA LLC9
Dover Kent, USA
Sushi Shop Management 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. 2
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 Sp. z o.o.
82.00%
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 Acquisition Subsidiary Ltd.
44.72%
OOO AmRest
Saint Petersburg, Russia
AmRest Sp. z o.o.
55.28%
July 2007
AmRest Sp. z o.o.
82.00%
AmRest Coffee s.r.o. 
Prague, Czechia 
Starbucks Coffee International,Inc.
18.00%
August 2007
AmRest Sp. z o.o.
82.00%
AmRest Kávézó Kft
Budapest, Hungary
Starbucks Coffee International,Inc.
18.00%
 August 2007
AmRest Sp. z o.o.
60.00%
AmRest d.o.o.
Belgrade, Serbia
ProFood Invest GmbH
40.00%
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 SAS.5
Paris, France
AmRest TAG S.L.U.
100.00%
April 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 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
Cologne, Germany
AmRest TAG S.L.U.
100.00%
October 2013
Kai Zhen Food and Beverage Management (Shanghai) Ltd
Shanghai, China
BlueFrog Food&Beverage Management Ltd
100.00%
March 2014
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 Sp. z o.o.
99.00%
July 2019
AmRest Food Srl.
Bucharest, Romania
AmRest Holdings SE
1.00%
July 2019
AmRest s.r.o.
99.00%
AmRest Coffee SK s.r.o.
Bratislava, Slovakia
AmRest Sp. z o.o.
1.00%
December 2015
AmRest Coffee Deutschland
AmRest Kaffee Sp. z o.o.
23.00%
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
Berlin, Germany
AmRest Kaffee Sp. z o.o.
100.00%
December 2016
The Grill Concept S.L.U.
Madrid, Spain
Pastificio Service S.L.U.
100.00%
December 2016
(all figures in EUR millions unless statedotherwise)
14
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Company name
Registered office
Parent/non-controlling undertaking
Owner-ship interest and total vote
Date of effective control
Kai Fu Food and Beverage Management (Shanghai) Co. Ltd
Shanghai, China
Blue Frog Food&Beverage Management Ltd
100.00%
December 2016
LTP La Tagliatella Portugal, Lda
Lisbon, Portugal
AmRest TAG S.L.U.
100.00%
February 2017
LTP La Tagliatella Franchise II Portugal, Lda
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
Paris, France
AmRest France SAS
100.00%
May 2017
AmRest Delco France SAS
Paris, France
AmRest Topco France SAS
100.00%
May 2017
AmRest Opco SAS
Paris, France
AmRest France SAS
100.00%
July 2017
OOO Chicken Yug
Saint Petersburg,    Russia
OOO AmRest
100.00%
October 2017
AmRest Acquisition Subsidiary Ltd.
99.999996%
OOO AmRest Pizza
Saint Petersburg,  Russia
OOO AmRest
0.000004%
November 2017
AmRest Coffee SRB d.o.o.
Belgrade, Serbia
AmRest Holdings SE
100.00%
November 2017
AmRest Chamnord SAS
Paris, France
AmRest Opco SAS
100.00%
March 2018
AmRest s.r.o.
99.00%
AmRest SK s.r.o.
Bratislava, Slovakia
AmRest Sp. z o.o.
1.00%
April 2018
AmRest Pizza GmbH
Munich, Germany
AmRest DE Sp. z o.o. & Co. KG
100.00%
June 2018
Black Rice S.L.U.
Madrid, Spain
AmRest TAG S.L.U.
100.00%
                July 2018
Bacoa Holding S.L.U.
Madrid, Spain
AmRest TAG S.L.U.
100.00%
                July 2018
Sushi Shop Restauration SAS7
Paris, France
Sushi Shop Management SAS
100.00%
October 2018
Midicapital
14.00%
Sushi House SA
Luxembourg
Sushi Shop Luxembourg SARL
86.00%
October 2018
Sushi Shop London Pvt LTD
London, UK
Sushi Shop Group SAS
100.00%
October 2018
Sushi Shop Belgique SA4
Bruxelles, Belgium
Sushi Shop Group SAS
100.00%
October 2018
Sushi Shop Belgique SA
54.80%
Sushi Shop Louise SA
Bruxelles, Belgium
Midicapital
45.20%
October 2018
Sushi Shop UK Pvt LTD
Charing, UK
Sushi Shop Group SAS
100.00%
October 2018
Sushi Shop Anvers SA6
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.
Madrid, Spain
Sushi Shop Management SAS
100.00%
October 2018
Sushi Shop Management SAS
70.00%
Sushi Shop Milan SARL
Milan, Italy
Vanray SRL
30.00%
October 2018
Sushi Shop NE USA LLC9
New York, USA
Sushi Shop Holding USA LLC
100.00%
October 2018
Sushi Shop Holding USA LLC
64.00%
Sushi Shop NY1 LLC9
New York, USA
Sushi Shop NE USA LLC
36.00%
October 2018
Sushi Shop NY2 LLC9
New York, USA
Sushi Shop Holding USA LLC
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 NL B.V. 8
Amsterdam, Netherlands
Sushi Shop Group SAS
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%
Novemner 2019
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 International Kft
Budapest, Hungary
AmRest TAG S.L.U.
100.00%
November 2012
La Tagliatella SAS5
Paris, France
AmRest TAG S.L.U.
100.00%
March 2014
AmRest FSVC LLC
Wilmington, USA
AmRest Holdings SE
100.00%
November 2014
AmRest Kaffee Sp. z o.o.
Wroclaw, Poland
AmRest Sp. z o.o.
100.00%
March 2016
AmRest Estate SAS
Paris, France
AmRest Opco SAS
100.00%
September 2017
AmRest Leasing SAS
Paris, France
AmRest Opco SAS
100.00%
September 2017
AmRest Franchise Sp. z o.o.
Wrocław, Poland
AmRest Sp. z o.o.
100.00%
December 2018
AmRest Global S.L.U. 3
Madrid, Spain
AmRest Holdings SE
100.00%
September 2020
Supply services for restaurants operated by the Group
SCM Sp. z o.o.
90.00%
SCM Czech s.r.o.
Prague, Czechia
Ondrej Razga
10.00%
March 2007
AmRest Sp. z o.o.
51.00%
R&D Sp. z o.o. 
33.80%
Beata Szafarczyk-Cylny
5.00%
SCM Sp. z o.o.
Warsaw, Poland
Zbigniew Cylny
10.20%
October 2008
1On25November2016Amrestavia,S.L.U.,thesoleshareholderofAmRestGmbH,decidedtoliquidatethiscompany.The 
(all figures in EUR millions unless statedotherwise)
15
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
liquidation process has not been finished up until the date of this Report.
2On30June2020newcompanywasregistered-AmRestTrauguttaSp.zo.o.withregisteredofficeWroclaw,Poland.AmRest Sp.zo.o.owned99,9999%ofshares,0,0001%ofsharesownedMichalLewandowski.Asof30September2020AmRestSp.zo.o. owned 100% of shares. On 21 December 2020 AmRest Traugutta Sp. z o.o. was merged with AmRest Sp. z o.o.
3On2September2020newcompanywasregistered-AmRestGlobalS.L.U.withregisteredofficeinMadrid,Spain(100%subsidiary of AmRest Holdings, SE).
4On30September2020(withtheeffectivedateasof1January2020)followingentitiesweremergedintoSushiShopBelgiqueSA: SSW1SPRL,SSW2SPRL,SushiSablonSA,SushiUccleSAandSushiShopInternationalSA.Onmentioneddateallassetsofmerged companies have been taken by Sushi Shop Belgique SA.
5 On 1 October AmRest SAS and La Tagliatella SAS changed the registered office from Lyon, France to Paris, France.
6On1October2020SushiShopBelgiqueSA,thesoleshareholderofSushiShopAnversSA,decidedtoliquidatethiscompany. The liquidation process has not been finished up until the date of this Report.
7On30November2020(withtheeffectivedateasof1January2020)CMLCTroyesandOrphusSARLweremergedintoSushiShop Restauration SAS. 
8On1October2020SushiShopGroupSAS,thesoleshareholderofSushiShopNLB.V.,decidedtoliquidatethiscompany.The liquidation process has not been finished up until the date of this Report.
9On16December2020SushiShopManagementSAS,thesoleshareholderofSushiShopHoldingUSALLC,SushiShopNEUSA LLC,SushiShopNY1LLC,andSushiShopNY2LLCdecidedtoliquidatethesecompanies.Theliquidationprocesshasnotbeen finished up until the date of this Report.. 
•On 2 January 2020 the company La Tagliatella Financing Kft has been deregistered.
•On 27 March 2020 the company OOO RusCo Food has been deregistered.
•On 12 June 2020 the company AmRest Trademark Kft "v.a." (Hungary) has been deregistered.
3.Basis of preparation
TheseconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeInternationalFinancial ReportingStandardsasadoptedbytheEuropeanUnion(“IFRS”)andotherprovisionsofthefinancial reportingapplicableinSpain.Theseconsolidatedfinancialstatementswereauthorisedforissuebythe Company’s Board of Directors on 24 February 2021.
Unlessdisclosedotherwise,theamountsintheseconsolidatedfinancialstatementsarepresentedineuro (EUR), rounded off to full millions with one decimal place.
Details of the Group’s accounting policies are included in note 40.
Theaccountingpoliciesadoptedinthepreparationoftheconsolidatedfinancialstatementsareconsistent withthosefollowedinthepreparationoftheGroup’sannualconsolidatedfinancialstatementsfortheyear ended31December2019,exceptfortheadoptionofnewstandards,interpretations,andamendmentsto standards effective as of 1 January 2020, as described below and in the note 41.
Severalamendmentsandinterpretationsapplyforthefirsttimein2020,butdonothaveanymaterialimpact ontheGroup’spolicies.TheGrouphasnotearlyadoptedanyotherstandard,interpretationoramendment that has been issued but is not yet effective.
On 28 May 2020, the IASB issued COVID-19-Related Rent Concessions - amendment to IFRS 16 Leases.
TheamendmentsproviderelieftolesseesfromapplyingIFRS16guidanceonleasemodificationaccounting forrentconcessionsarisingasadirectconsequenceoftheCOVID-19pandemic.Asapracticalexpedient,a lesseemayelectnottoassesswhetheraCOVID-19relatedrentconcessionfromalessorisalease modification.Alesseethatmakesthiselectionaccountsforanychangeinleasepaymentsresultingfromthe COVID-19relatedrentconcessionthesamewayitwouldaccountforthechangeunderIFRS16ifthechange were not a lease modification. On 9 October 2020, the amendment was approved by European Union.
TheGrouphasappliedtheamendmentstoIFRS16intheseconsolidatedfinancialstatements.Theeffectof theaccountingispresentedunder“rentconcessions”lines(seenote15).Theapplicationofthese amendmentshasmaterialimpactonGroup’sfinancialdata.Theapplicationisretrospectivebutdidnothave impact on comparative financial information for the year ended 31 December 2019. 
(all figures in EUR millions unless statedotherwise)
16
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Inlate2019anovelstrainofcoronavirus,COVID-19,wasfirstdetectedandinMarch2020,theWorldHealth OrganizationdeclaredCOVID-19aglobalpandemic.Throughout2020,COVID-19hasspreadthroughout globally, in particular in the countries the Group operates.
MostgovernmentshaveimplementedmeasurestoreducethespreadofCOVID-19.Thesemeasuresinclude restrictionsontraveloutsidethehomecountries,closingorimposinglimitationsonbusinessandother activitiesaswellasencouragingsocialdistancing.Withsummerseason2020somerestrictionshavebeen liftedorreduced,howeverwiththeincreasesinnumberofinfectionssincethefallseasongovernment authoritiesinmajorEuropeancountriesre-imposedrestrictionsonthebusinessandotheractivities.With theapprovalsoffirstvaccines,thegovernmentsaredevelopingmassvaccinationplansandstrategiesfor 2021. 
ThissituationisaffectingsignificantlyAmRestGroup,aswellastheglobaleconomy.Visibleresultsofthe COVID-19outbreakincludethedecreaseindemand,thedisruptionorslowdownofsupplychainsanda significantincreaseineconomicuncertainty,increaseofvolatilityinthepriceofassets,exchangeratesanda decreaseinlongterminterestrates.PossibleresultsoftheCOVID-19outbreakmayincludechangesinthe market environment, peoples behaviors and ways of living.
TheCOVID-19pandemichasaparticularlysignificantnegativeimpactontherestaurantsectors.Thebanor significantrestrictionsareimposedontherestaurantoperators.Thatresultsinsignificantdecreasein businessactivity.Highpressureonsocialdistancinghasanimpactonthecustomerdemandanddailylives and behavior patterns. This requires adjusting restaurant operations into new reality.
TheGroupmanagementiscloselymonitoringthedevelopmentofsituationandlooksforthewaysof mitigating the impact of COVID-19 spread on the Group.
TheCOVID-19relatedrisksanduncertaintiesarebeinganalyzedatdifferentanglestoassessifagoing concernuncertaintyappliesfortheGroup.CrisisTeamsweresetupinallmajorcountriesofGroup operationstocoordinateactions,executelocalsanitaryregulations,develop,andexecutesafetymeasures to protect employees.
ACashTaskforce wassetuptoputatightanddiligentcontroloverpaymentsandvendorrelationstomanage liquidity of the Group and its entities.
TheGroupactivelymanagesliquidityriskunderstoodasapossiblelossorrestrictionofitsabilitytocover currentfinancialcommitments.StrengtheningoftheGroup’spositionintermsofliquidityandmitigationof adverse impacts of COVID-19 outbreak is taken on several areas.
InMarch2020theGroupdrewtheentirefacilityavailableunderrevolvingTrancheDofsyndicatedbankloan, increasingamountdrawnfromEUR37.3millionintheendof2019to98.9millionintheendof1Q2020. Additionally,inApril2020SpanishandFrenchsubsidiariesappliedforstatesupportedbankloans.TheGroup wasgrantedtotalEUR75million.InQ3additionalEUR3.9millionofgovernmentsupportedloanswere grantedonRussianandCzechmarket.Intotal,during2020,theGroupwasgrantedEUR78.9millionof governmentsupportedloansoutofwhichEUR19.3mremainsundrawn.Detailsonnewloansarepresented in note 29.
TheGroupmaintainsclosecommunicationwithitsfinancingbanks.Allscheduleddebtrepaymentswere made in 2020.
Priorto2020yearendAmResthasobtainedfromitsfinancingbanksanditsbondholders(Schuldschein) waiverstothecompliancewiththecovenantsrelatedtotheGroup’sleverageandinterestcoverageratios until31December2021(forthefourthquarterof2020andthefirst,secondandthirdquartersof2021). Duringsaidperiods,thosecovenantshasbeenreplacedbyacommitmenttomaintainaminimumlevelof liquidity.
TheGroupupdatesthefinancialplansandcashflowprojectionsasthesituationonthemarketschanges becauseofCOVID-19pandemic.TheGrouppreparedfinancialcashflowprojectionsfor2020and2021in lateNovember2020.Nextre-assessmentoffinancialplanwasapprovedbyBoardofDirectorsinFebruary 2021priortoissueoffinancialstatements.BothfinancialplansshowthattheGroupwillbeabletosettleits liabilities within next 12 months.
In September 2020 the Group has made the scheduled debt repayments of EUR 56.8 million plus interest.
(all figures in EUR millions unless statedotherwise)
17
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
InDecember2020,theGrouphasfinalizedsaleofitsinvestmentinGlovoapp23,SL,thatresultedincash inflow of EUR 75.5 million in 2020. 
Duringthereportedperiod,theGroupperformedareviewofitsrentalagreementsandenterednegotiations withlandlordsaswellastookthebenefitsofvariousgovernmentschemesthatalloweddeferralor suspension of payments for rental costs during pandemic.
GovernmentprogramsimplementedwithregardstoCOVID-19spreadallowtodeferpaymentstaxes,social securities,andotherpublicobligations.TheGroupiscloselymonitoringsituationonlocalmarketsandis takingthebenefitsofavailableschemeswhichallowtoenhanceliquidityriskmanagementincurrent situation. 
Additionally,theGrouphastakennumerousactionsaimedatutilizinggovernmentsupportrelatedtocostof laborofferedonmarketswheretheGroupoperates.Oneoftheprioritytasksinthisrespecthasbeento avoidasignificantdecreaseinthelevelofemployment,takingintoaccounttheeffectivenessoftheongoing processesandtoensurefinancialsecurityforemployeestotheextentpossibleinthecurrentsituationbut alsotooptimizepayrollcostsinGroup.ThroughthesupportprogramstheGroupcanpartiallyadjustits payroll costs level more flexibly to respective decrease in revenues due to temporarily closures stores.
Afteroutbreakofpandemic,theGroupalsodecidedtotemporarilydefertheearlierplanneddevelopment investmentsandsignificantlydecreasedcapexexpendituresin2020.TheGrouphasalsorenegotiatedcertain developmentagreements,onmarketswereAmRestalsorunsbusinessunderthefranchisedbrandsThisis another tool that allowed to support liquidity management.
Ontherevenuesstreamsside,asof31December2020over92%oftheGroup’sownandfranchisestores remainedoperative.TheGroupcloselymonitorstheconstrainmeasurestakenandsubsequentlyliftedby governmentsinvariouscountriesandadjustsondailybasisnumberofopenedstoresandpossiblewaysof providingproductsandservicestoGroup’scustomers,ensuringstaffandcustomersafety,aswellcomplying with all government directives.
TheBoardofDirectors hasanalyzedthesituationofAmRestGroupinthecontextofCOVID-19aroundliquidity,financingandsecuringthecontinuationoftheoperations.Basedontheanalysisofavailable information,facts,circumstances,anduncertaintiesaboutthefuture,whichisatleast,butisnotlimitedto, twelvemonthsfromtheendofthereportingperiod,thegoingconcernassumptionappliesfortheGroupin theforeseeablefuture.Consequently,theseconsolidatedfinancialstatementshavebeenpreparedunder going concern principle.
4.Use of judgements and estimates
ThepreparationoftheIFRSfinancialstatementsrequirestomakecertainassumptionsandestimatesthat affecttheapplicationoftheGroup’saccountingpoliciesandthereportedamountsofassets,liabilities, incomeandexpenses.Estimatesandjudgmentsarecontinuallyverified,andarebasedonprofessional experienceandvariousfactors,includingexpectationsoffutureevents,thataredeemedtobejustifiedin givencircumstances.Theresultsoftheestimatesandtherespectiveassumptionsarethebasisforassessing the values of assets or liabilities which do not result directly from other sources. 
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoestimatesare recognised prospectively. Actual results may differ from these estimates.
Judgements 
IntheprocessofapplyingtheGroup’saccountingpolicies,managementhasmademainlythefollowing judgements,whichhavethemostsignificanteffectontheamountsrecognisedintheconsolidatedfinancial statements: 
Going concern
The Group prepared consolidated financial statements on going concern assumption.
(all figures in EUR millions unless statedotherwise)
18
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Giventheunpredictabilityofthepotentialimpactofthepandemic,thereareuncertaintiesthatcastdoubton theGroup’sabilitytooperateasagoingconcern.TheBoardofDirectorshasassessedGroup’sabilityto continue as a going concern, and whether the going concern assumption is appropriate.
Allavailableinformationaboutthefuture,whichisatleast,butnotlimitedto,twelvemonthsfromtheend  of the reporting period were considered. Refer to note 3 Basis of preparation.
Determinationoftheleaseterm,whethertheGroupisreasonablycertaintoexerciseextensionortermination options 
FormajorityofcontractstheGroupholdsoptionsforextension/terminationoftheleaseperiod,ona specifiedconditions.TheGroup’spracticeistoassessthereasonablenessofexercisingoptionsoneyear beforethedecisiondeadline,becauseinthattimeallrelevantfactsandcircumstancestomakesucha decisioncanbegenerallyavailable.TheGroupconsiders,forexample,latestperformanceoftherestaurant, presentbrandstrategyrevisedduringbudgetingprocess,comparisonofleasefeestothemarketaverage, lengthofthenon-cancellableperiodofaleaseandsignificanceofleaseholdimprovementsrecently undertaken (or expected to be undertaken).
TheassessmentofwhethertheGroupisreasonablycertaintoexercisesuchoptionsimpactstheleaseterm, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Revenue from contracts with customers 
TheGroupappliesjudgementsthatsignificantlyaffectthedeterminationoftheamountandtimingof revenuefromcontractswithcustomersthatrelatestoidentificationoftheperformanceobligationsand principalversusagentconsiderations,aswellasallocationofthetransactionpricetotheperformance obligations in franchise activities (own brands and master-franchise agreements). 
Estimates and assumptions 
Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthereporting date,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsand liabilitieswithinthenextfinancialyear,aredescribedbelow.TheGroupbaseditsassumptionsandestimates onavailableparameterswhentheconsolidatedfinancialstatementswereprepared.Existingcircumstances andassumptionsaboutfuturedevelopments,however,maychangeduetomarketchangesor circumstancesarisingthatarebeyondthecontroloftheGroup.Suchchangesarereflectedinthe assumptions when they occur. 
TheCOVID-19pandemicaffectstheassumptionsandestimationuncertaintyassociatedwiththe measurementofassetsandliabilities.GiventheevolvingnatureofCOVID‑19andthelimitedrecent experienceoftheeconomicandfinancialimpactsofsuchapandemic,changestoestimatesinthe measurement of Group’s’ assets and liabilities may arise in the future.  
Impairment of non-financial assets including goodwill
Impairmentlossesarerecognisedwheneverthecarryingvalueofanassetorgroupofassetsthatarepart ofonecashgeneratingunitoragroupofcashgeneratingunitsexceedsitsrecoverableamount,whichisthe higherofitsfairvaluelesscostsofdisposalanditsvalueinuse.Thevalueinuseandfairvaluelesscostsof disposalcalculationsarebasedonadiscountedcashflow(DCF)models.Thecashflowsarederivedfromthe budgetsandforecasts.TherecoverableamountissensitivetothediscountratesusedfortheDCFmodelas well as the expected future growth margins, and the growth rate used for extrapolation purposes. 
Accounting policies for impairment testing of non-financial assets are disclosed in note 43l.
ThekeyassumptionsusedtodeterminetherecoverableamountofthedifferentCGUs,includingasensitivity analysis, are disclosed and further explained in note 18.
Assessment of useful lives
Determinationandperiodicverificationofdepreciationratesismadeonthebasisofthetechnicalabilities ofagivenasset,togetherwithplannedformandintensityofusage,withsimultaneousconsiderationof experienceandlegalobligationsinfluencingusageofthegivenasset.Sensitivityonchangesinaverageuseful lives is disclosed in note 14.
Provision for expected credit losses (ECLs) of trade receivables and contract assets 
(all figures in EUR millions unless statedotherwise)
19
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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TheGroupusesaprovisionmatrixtocalculateECLsfortradereceivablesandcontractassets.Theprovision ratesarebasedondayspastdueforgroupingsofvariouscustomersegmentsthathavesimilarlosspatterns (i.e.,bygeography,producttype,customertypeandrating,andcoveragebylettersofcreditandotherforms of credit insurance). 
TheprovisionmatrixisinitiallybasedontheGroup’shistoricalobserveddefaultrates.TheGroupwill calibratethematrixtoadjustthehistoricalcreditlossexperiencewithforward-lookinginformation.For instance,ifforecasteconomicconditions(i.e.,grossdomesticproduct)areexpectedtodeteriorateoverthe nextyearwhichcanleadtoanincreasednumberofdefaultsinthemanufacturingsector,thehistorical defaultratesareadjusted.Ateveryreportingdate,thehistoricalobserveddefaultratesareupdatedand changes in the forward-looking estimates are analysed.
Theassessmentofthecorrelationbetweenhistoricalobserveddefaultrates,forecasteconomicconditions andECLsisasignificantestimate.TheamountofECLsissensitivetochangesincircumstancesandof forecasteconomicconditions.TheGroup’shistoricalcreditlossexperienceandforecastofeconomic conditionsmayalsonotberepresentativeofcustomer’sactualdefaultinthefuture.Theinformationabout the ECLs on the Group’s trade receivables and contract assets is disclosed in note 37.
Share-based payments 
Estimatingfairvalueforshare-basedpaymenttransactionsrequiresdeterminationofthemostappropriate valuationmodel,whichdependsonthetermsandconditionsofthegrant.Thisestimationalsorequires determinationofthemostappropriateinputstothevaluationmodelincludingtheexpectedlifeoftheshare option, volatility and dividend yield and making assumptions about them. 
TheGroupinitiallymeasuresthecostofcash-settledtransactionswithemployeesusingabinomialmodelto determine thefairvalueoftheliabilityincurred.Forcash-settledshare-basedpaymenttransactions,the liabilityneedstoberemeasuredattheendofeachreportingperioduptothedateofsettlement,withany changes in fair value recognised in profit or loss. 
Forthemeasurementofthefairvalueofequity-settledtransactionswithemployeesatthegrantdate,the Groupusesafinitedifferencemethod.Theassumptionsandmodelsusedforestimatingfairvalue forshare-based payment transactions are disclosed in note 31. 
Recognition of provisions for potential tax obligations and uncertain tax provisions
Recognitionofprovisionrequiredestimatesoftheprobableoutflowsofresourcesembodyingeconomic benefitsanddefiningthebestestimatesoftheexpendituresrequiredtosettlethepresentobligationatthe end of the reporting period.
TheGroupoperatesinvarioustaxjurisdictions.RegulationsconcerningVAT,corporateincometaxandsocial insurancechargesarefrequentlyamended.Theapplicableregulationsmayalsocontainambiguousissues, whichleadtodifferencesinopinionsconcerningthelegalinterpretationoftaxlegislationbothamongthe tax authorities and between such authorities and enterprises.
Taxreportsandothermatters(e.g.customsorforeigncurrencytransactions)maybeauditedbyauthorities competenttoimposesubstantialpenaltiesandfines,whereasanyadditionaltaxliabilitiesassessedduring such audits have to be paid together with interest.
Consequently,thefigurespresentedanddisclosedintheseconsolidatedfinancialstatementsmaychangein 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 33.
Taxes 
Deferredtaxassetsarerecognisedforunusedtaxlossestotheextentthatitisprobablethattaxableprofit willbeavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgementisrequiredto determinetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandthe leveloffuturetaxableprofits,togetherwithfuturetaxplanningstrategies.Detailsofdeferredtaxassetsare disclosed in note 13.
(all figures in EUR millions unless statedotherwise)
20
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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5.Segment reporting
AmRestasagroupofdynamicdevelopingentitiesrunningoperationsinmanymarketsandvarious restaurantbusinesssegmentsisunderconstantanalysisoftheBoardofDirectors.TheBoardisalso constantlyreviewingthewaybusinessisanalysedandadjustsitaccordinglytochangesintheGroup’s structure as a consequence of strategic decisions. 
Groupproducesvariousreports,inwhichitsbusinessactivitiesarepresentedinavarietyofways.Operating segmentsaresetonthebasisofmanagementreportsusedbytheBoardwhenmakingstrategicdecisions. TheBoardofDirectorsanalysestheGroup’sperformancebygeographicalbreakdownindivisionsdescribed in the table below. 
OwnrestaurantandfranchisebusinessisanalyzedforfouroperatingsegmentspresentingGroup’s performanceingeographicbreakdown.Geographicalareasareidentifiedbasedonthesimilarityofproducts andservices,similarcharacteristicsoftheproductionprocessandofthecustomerbaseandeconomic similarities(i.e.exposuretothesamemarketrisks).Fifthsegmentincludesingeneralnon-restaurant business. Details of the operations presented in each segment are presented below:
Segment
Description
Restaurant operations and franchise activity in:
■                 Poland – KFC, Pizza Hut, Starbucks, Burger King, virtual brands
■                 Czechia – KFC, Pizza Hut, Starbucks, Burger King,
■Hungary – KFC, Pizza Hut, Starbucks,
■Bulgaria – KFC, Starbucks, Burger King,
■Croatia, Austria, Slovenia – KFC,
Central and Eastern Europe (CEE)
■Slovakia – Starbucks, Pizza Hut, Burger King,
■Romania – Starbucks, Burger King
■Serbia- KFC, Starbucks.
Restaurantoperationstogetherwithsupplychainandfranchiseactivity in:
■Spain – KFC, La Tagliatella, Blue Frog, Bacoa, Sushi Shop,
■France – KFC, Pizza Hut, La Tagliatella, Sushi Shop,
■Germany – Starbucks, KFC, Pizza Hut, La Tagliatella, 
Western Europe
■Portugal – La Tagliatella, Sushi Shop,
■Belgium,Italy,Switzerland,Luxemburg,UnitedKingdomand other countries with activities of Sushi Shop.
China
Blue Frog and KABB restaurant operations in China.
Russia
KFCandPizzaHutrestaurantoperationsandfranchiseactivityinRussia,Armenia and Azerbaijan.
Other 
OthersupportfunctionsrenderedbythesubsidiariesfortheGroupsuch ase.g.ExecutiveTeam,Controlling,Treasury,InvestorsRelations,Mergers &Acquisitions.OtheralsoincludesexpensesrelatedtoM&Atransactions notfinalizedduringtheperiod,whereasexpensesrelatedtofinalized mergerandacquisitionareallocatedtoapplicablesegments.Additionally, Otherincludesnon-restaurantbusinesses performedbyAmRest HoldingsSE,SCMSp.zo.o.anditssubsidiariesandotherminorentities performing holding and/or financing services.
WhenanalyzingtheresultsofparticularbusinesssegmentstheBoardofDirectorsdrawsattentionprimarily to EBITDA reached, which is not an IFRS measure. 
Segmentmeasuresandthereconciliationtoprofit/lossfromoperationsfortheyearended31 December 2020 and for the comparative year ended 31 December 2019 is presented below.
(all figures in EUR millions unless statedotherwise)
21
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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year ended
31 December 2020
CEE
Western Europe
Russia
China
Other
Total
Restaurant sales
684.2
539.8
152.2
76.1
-
1 452.3
Franchise and other sales
1.3
43.0
0.3
0.3
25.7
70.6
Inter-segment revenue
-
-
-
-
-
-
Segment revenue
685.5
582.8
152.5
76.4
25.7
1 522.9
EBITDA
126.8
38.3
30.8
23.2
(17.4)
201.7
Depreciation and amortisation
111.0
94.2
28.8
18.6
0.8
253.4
Net impairment losses on financial assets
0.3
5.4
0.2
0.1
0.2
6.2
Net impairment losses on other assets
22.8
57.3
3.9
0.6
-
84.6
Profit/loss from operations
(7.3)
(118.6)
(2.1)
3.9
(18.4)
(142.5)
Finance income and costs
(22.8)
(9.2)
(4.6)
(1.0)
(21.3)
(58.9)
Profit/loss before tax
(30.1)
(127.8)
(6.7)
2.9
(39.7)
(201.4)
Capital investment*
42.1
25.6
5.2
1.5
0.3
74.7
*Capital investment comprises additions and acquisition in property, plant and equipment and intangible assets.
year ended
31 December 2019
CEE
Western Europe
Russia
China
Other
Total
Restaurant sales
838.5
721.0
206.5
89.5
0.1
1 855.6
Franchise and other sales
0.8
75.6
0.1
0.1
29.3
105.9
Inter-segment revenue
-
-
-
-
-
-
Segment revenue
839.3
796.6
206.6
89.6
29.4
1 961.5
EBITDA
184.8
127.0
39.8
24.1
18.7
394.4
Depreciation and amortisation
106.8
91.4
31.5
18.6
1.0
249.3
Net impairment losses on financial assets
-
3.6
0.3
0.1
0.1
4.1
Net impairment losses on other assets
1.9
32.0
2.2
(0.7)
-
35.4
Profit/loss from operations
76.1
0.0
5.8
6.1
17.6
105.6
Finance income and costs
(12.7)
(9.6)
(1.8)
(1.1)
13.0
(12.2)
Profit/loss before tax
63.4
(9.6)
4.0
5.0
30.6
93.4
Capital investment*
91.3
80.1
23.0
7.1
0.3
201.8
*Capital investment comprises additions and acquisition in property, plant and equipment and intangible assets.
Information on geographical areas:
Withinthe“CEE”segment,forPolandandCzechiaassignificantgeographicalregionsthekeycharacteristics aredisclosedbelow.AmongthecountriesallocatedtotheWesternEuropesegment,SpainandFranceare significant geographical regions with the key characteristics disclosed below.
year ended
31 December 2020
31 December 2019
Poland
378.7
464.8
Czechia
157.8
199.8
Spain
172.8
281.1
France
254.6
298.7
Revenue from external customers
Russia
152.5
206.6
31 December 2020
31 December 2019
Poland
346.6
379.3
Czechia 
136.2
139.7
Spain
359.4
443.1
France
410.0
438.5
Total of non-current assets other than financial instruments and  deferred tax assets 
Russia
150.0
225.9
(all figures in EUR millions unless statedotherwise)
22
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Thesegmentinformationhasbeenpreparedinaccordancewiththeaccountingpoliciesappliedinthese consolidated financial statements.
TakingintoaccountthattheGroupoperateschainsofownrestaurantsandadditionallyoperatesas franchisor(forownbrands)andmaster-franchisee(forsomefranchisedbrands),theGroupdoesnothave anysingleexternalcustomerwiththerevenueonthelevelof10%ormoreoftotalrevenueearnedbythe Group.
6.Business combinations 
There were no business combinations in 2020.
In2019yeartheGroupacquiredtwoKFCrestaurantsandthreeSushiShoprestaurantsinSpainforEUR3.2 million.TheseacquisitionsresultedinincreaseofgoodwillbyEUR2.8million.Therewasnochangeafterfinal purchase price accounting in 2020.
7.Revenues
TheGroupoperateschainsofownrestaurantsunderownbrandsaswellasunderfranchiselicense agreements.Additionally,theGroupoperatesasfranchisor(forownbrands)andmaster-franchisee(for somefranchisedbrand)anddevelopschainsoffranchiseebusinesses,organizingmarketingactivitiesforthe brands and supply chain. Consequently, the Group analyses two streams of revenue:
-Restaurant sales,
-Franchise and other sales.
ThisisreflectedintheformatofGroup’sconsolidatedincomestatement.Additionaldisaggregationby geographical market is included in the note 5.
Restaurant sales
Restaurant revenues are the most significant source of revenues representing over 95% of total revenues.
RevenuesfromthesaleoffooditemsbyGroup–ownedrestaurantsarerecognisedasRestaurantrevenues whenacustomerpurchasesthefood,whichiswhenobligationtoperformissatisfied.Groups’customer base is widely spread and Group does not have any risk related to dependency to any group of customers. 
DiversifiedindividualsareGroup’scustomers.Paymentsfortherestaurantsalesaresettledimmediatelyin cash or by credit, debit and other cards. There are no material credit risks related to this type of operations.
Franchise and other sales
Franchiseesandsub-franchiseesaremaincustomerswithregardstoRevenuesfromfranchiseandother sales.Franchiserightsmaybegrantedthroughastore-levelfranchiseagreement.FranchiseeofGroup’sown brandspayroyaltyfeesasapercentageoftheapplicablerestaurant’ssales.Groupmayalsoreceiverevenues fromthere-saleoffranchiserightsunderMaster-FranchiseAgreementssignedforcertainbrands,aswellas remuneration for services performed for development of the market. 
Othersalesincludemainlysalesoffoodswithinsupply-chainservicesorganizedbyGrouporsalesoffoods from central kitchens operated by Group. 
ThenumberofGroupclientsunderfranchiseandotherrevenuesislimitedandcharacterizedbyhigherlevel of credit risk then in restaurant sales.
TheCOVID-19pandemichasaparticularlysignificantnegativeimpactontherestaurantssectors.Thebanor significantlimitationsinoperationofrestaurantsresultedinadecreaseinbusinessactivityandcustomer demand and consequently decrease of the revenues in the reporting period.
Belowtableshowsthepercentageofoperatingrestaurantsattheendofeachmonthofsecond,thirdand fourth quarter. 
(all figures in EUR millions unless statedotherwise)
23
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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% Operating stores
Month
Own stores
Franchise Stores
April
60%
43%
May 
85%
61%
June
92%
88%
July
96%
94%
August
98%
94%
September
99%
95%
October
95%
92%
November
92%
82%
December
95%
91%
AsattheendofDecember2020operatingstoresconstituted95%ofownand91%franchisestores.Even withopenedrestaurantsvariouslimitationswereandareputonrestaurantbusinessthatlimitnumberof potentialcustomers.Additionally,theprocessofreturningofthegueststorestaurantsisnotimmediateafter theliftingofanyrestrictions.Withtheincreasedsocalledsecondwaveofpandemic,currentlynew restrictionsarebeingimposedinmanymarketswhereGroupisoperating.Consequently,withthepandemic stillbeinginplace,thelevelofsalesrevenuesgeneratedbytherestaurantsislowerthanbeforetheCOVID-19outbreak.Itisnotpossibletoreliablyandobjectivelyquantifytheeconomicimpactofpandemicsituation on the Group's revenues.
8.Operating costs and losses
AmRestGrouppresentsconsolidatedincomestatementusingaclassificationbasedonfunctionofexpense method.Historicallyconsolidatedincomestatementwaspreparedbyfunction–sinceAmRestwasquoted ontheWarsawStockExchangein2005,whichisacommonpracticeonPolishmarket.Groupconsidersthat analysisofrestaurantexpenses,franchiseandotherexpenses–andinformationregardingresultinthe functional area provides more relevant information. 
The table below presents an additional analysis of operating expenses by nature.
year ended
31 December 2020
31 December 2019
Depreciation of property, plant and equipment (note 14)
                  100.2    
                  98.5    
Amortisation of intangibles (note 16)
                  13.1    
                  13.9    
Depreciation of right-of-use assets (note 15)
140.1
136.9
Food, merchandise and other materials
468.2   
                593.7    
Utilities
70.3    
                  75.4    
External services – marketing
        63.5    
        81.1    
External services – other
133.4    
115.8    
Payroll
                413.8    
                470.4    
Social security and employee benefits
                  101.0    
                  119.5    
Rental and occupancy costs
                1.1    
                26.3    
Royalties
                  71.8    
                  94.4    
Insurance
                    2.3    
                    1.9    
Business travel
                  5.3    
                  12.2    
Other
                  19.5    
                  21.8    
Total cost by nature
             1 603.6   
             1 861.8   
Result on restaurants and non-current assets disposal 
         2.1    
         1.5    
Total operating costs and losses
1 605.7
1 863.3
Summary of operating expenses by functions:
year ended
31 December 2020
31 December 2019
Restaurant expenses
1 407.7
1 642.3
Franchise and other expenses
54.6
73.7
Total cost of sales 
1 462.3
1 716.0
General and administrative expenses
143.4
147.3
Total operating costs and losses
1 605.7
1 863.3
(all figures in EUR millions unless statedotherwise)
24
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Itisnotpossibletoreliablyandobjectivelyquantifytheeconomicimpactofpandemicsituationonthe Group'soperatingcosts.Somecostssuchasdepreciationandamortizationarefixedinnature,others(like payrollandsocialcontributions)aredependentonnumberofoperatingrestaurantsbutmaynotbedirectly corelatedtosalesrevenuesgeneratedbytherestaurants.Costofsalesandroyalties,variablerent,asarule are most directly tied to revenues level, and finally costs of marketing may relatively increase. 
ToenableGroupcompaniestooperateinapossiblysmoothmanner,procedureshavebeenputinplaceto ensurepromptreactionofappropriateservices.Inaddition,theGroupimplementedadditionalmeasuresto mitigate the risk of infection among its employees, including in particular: 
-ProvidingdetailedinstructionsandguidelinesonmonitoringthehealthoftheGroup’semployeesand the health of Group’s customers;
-Strengtheningalreadystringenthygiene,cleaningandsanitationproceduresandintroducingcontactless options that protect both employees and quests in restaurants;
-Providing the restaurant employees with additional personal protection and hygiene supplies;
-Requestingtoreducethenumberofmeetingsaswellasdomesticandforeignbusinesstravel,andto useteleconferencingandvideo-conferencingfacilitiestothelargestextentpossible,aswellenabling remote work.
Withthespreadofpandemicmanygovernmentswereandarestillapplyinglockdownproceduresand variouslimitationsforbusinessestooperate.Inordertomitigatethedisadvantageouseffectsofthe lockdowns,manycountries’governments,haveintroducedvariousmeasurestoassistentitiesinresponseto the COVID-19. 
TheGroupwasandiscloselymonitoringavailableprogramthatareofferedonvariousmarkets.The governmentsupportprogramsincludeforexampledirectsubsidiestopayrollcosts,taxexemptions,social securitycontributionsreductions.AdditionallyentitiesfromtheGroupwereabletoapplyforextended deadlines for payments of various taxes.
TheGrouphastakennumerousactionsaimedatutilizinggovernmentsupportrelatedtocostoflaboroffered onallmarketswheretheGroupoperates.Oneoftheprioritytasksinthisrespecthasbeentoavoida significantdecreaseinthelevelofemployment,takingintoaccounttheeffectivenessoftheongoing processesandtoensurefinancialsecurityforemployeestotheextentpossibleinthecurrentsituationbut also to optimize payroll costs in Group. 
GovernmentprogramsimplementedwithregardstoCOVID-19spreadallowalsotodeferpaymentstaxes, social securities and other public obligations.
For the main markets of operation the Group has filled the following programs in the area of labor costs:
-Spain
Inaccordancewiththeprovisionsofarticle47oftheWorkersStatute,inrelationtoRoyalDecree1483/2012 andarticle22and23ofRoyalDecree-Law8/2020,aswellasRoyalDecree-Law30/2020,AmRestcompanies inSpainhavefiledbeforetheSpanishlaborauthorityaTemporaryEmploymentRegulationFile(Expediente deRegulaciónTemporaldeEmpleoor“ERTE”).TheERTEcovered3288employees.UndertheERTE,the employeesremainemployedwithAmRestwithsuspendedsalaryandatthesametimereceive unemploymentbenefitsfromauthoritiesofupto70%oftheirnormalsalary.OneSpanishentity,TheGrill Concept,S.L.U.declinedtoextendtheTemporaryEmploymentRegulation(ERTE)inSeptember.Asof31 December 2020 the ERTE covers 591 employees.
-Poland
UndertheActonspecialsolutionsrelatedtothepreventionandcombatingofCOVID-19,otherinfectious diseasesandcrisissituationscausedbythemof2March2020(JournalofLawsof2020,item374),the followingmeasuresweretaken,effectiveintheperiod7April–6July2020,withrespectto4050employees of AmRest Polish companies: 
•introduction of reduced working hours and salary by 20% (2 897 employees),
•introduction of economic downtime (3 936 employees),
•applicationforcompensationfortheprotectionofworkplacesfromthefundsoftheFundof GuaranteedEmployeeBenefitstoco-financetheremunerationofemployeesaffectedbyeconomic downtime or reduced working hours as a result of COVID-19.
Intheperiod1August–31October2020followingmeasuresweretaken:applicationfor compensationfortheprotectionofworkplacesfromthefundsoftheFundofGuaranteedEmployee 
(all figures in EUR millions unless statedotherwise)
25
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Benefitstoco-financetheremunerationofemployeesaffectedbyeconomicdowntime(August3 736 crew employees, September 3 628 crew employees, October 3 747 crew employees).
From1December2020followingmeasuresweretaken:applicationforcompensationforthe protectionofworkplacesfromspecificindustries-FundofGuaranteedEmployeeBenefits,article 15gga(December309crewemployees,247managersinstores,33RSTemployees).Applicationsare continued in January and February 2021.
-France 
Introduced“partialactivity”technicalunemploymentgovernmentprogramfor4188employees(SushiShop, KFC,PizzaHut).Employeeswerepartiallyor100%unemployedbytheCompanies.Withthesuspensionof theemploymentcontractthegrosssalarywasmaintainedat70%and100%forminimumsalary.The employeesocialsecuritycontributionswerealsoreduced,allowingtheemployeestoreceive84%ofnet salary(or100%forthosewhoperceivetheminimumsalary).Thegovernmentreimburses100%ofthesalary paidtoemployeesinpartialactivity.Theprogramstartedfrom15Marchandismaintaineduntiltheendof theyearinthesamecondition.Restaurantscontinuetouseitonrotatingemployeebasis,especiallyduring thesecondconfinement(15Octoberto15December2020).Refundsrequestsareinprogress.Companies have one year to request the reimbursement. 
-Germany 
Reducedworkinghours(Kurzarbeitergeld)salarygovernmentreimbursementprogramhasbeenintroduced effectiveon1March2020forapprox.3000employees.Thegovernmentreimburses60%oftheemployee’s netsalaryandsocialcontributions.IntheperiodJuly-September2020thecompaniesstoppedmeetingthe conditionsbutafterthesecondwaveofrestrictionsstartedinQ42020thecompaniesappliedforthenext governmentalhelpbeginningofNovember2020.Thegovernmentreimbursesnow60-87%ofthenetsalary andsocialcontributiondependingontheindividualsituations.Thereimbursementisbasedonnotworked hoursascomparedtothecontracthours.Thecompanypaysthedifferenceupto90%oftheaveragesalary before March 2020.
-Czechia
ThecompanieshaveappliedforthegovernmentaidunderspecialCOVID-19regulations.Thereweretwo separate programs:
•employeesondowntimebetween13Marchand31May2020:80%ofsalaryandsocialcontribution reimbursed by the government (1 600 employees covered),
•employeeswith40%reductionofworkinghoursbetween13Marchand31May2020:60%ofsalary and social contribution reimbursed by the government (80 employees covered).
BothprogramswereextendeduntiltheendofFebruary2021.GovernmentalhelpfortheperiodJune– Septemberwasnotmaterialasnotmanyemployeeswereondowntime.Duringthesecondwaveof restrictions(October–December)thecompaniesappliedforgovernmentalhelpintheamountofEUR1.5 million.
Similaractionsarealsotakenonothermarkets.TheGrouphasappliedforsupportprogramsofferedbyeach country’sgovernment,intheformofreimbursementoflaborcosts,andintroducinginternalactions,suchas shortening of working hours or technical unemployment.
Group’s policy is to present government grants related to income as other operating income. 
For12monthsperiodended31December2020Grouphasrecognizedgovernmentgrantsforpayrollcosts (EUR21.6million)andsocialcontribution(EUR7.9million),note9.ThetotalamountofEUR29.5millionhas beenrecognizedasotheroperatingincome.Theabovegovernmentgrantsareinaformofwaivedsocial securitypayables(EUR3.7million)andcashgrants(EUR25.8million,outofwhichEUR5.1millionasof31 December 2020 was not received yet).
InAugust2020entitiesoperatinginCzechiaappliedforagovernmentprogramcalledCOVIDNajem, providingthegovernmentgrantsforrentcosts(grantlimitCZK20millionperentity).For12monthsperiod ended31December2020GrouphasrecognizedgovernmentgrantsforrentcostsintheamountofEUR1.7 million as other operating income.
Grantingofthegrantbygovernmentsisinsomecasesassociatedwithrequirementstokeeptheagreedlevel ofworkforceforagreedperiod.Asof31December2020theGroupdoesnotexpectthatsuchconditions wouldnotbemet,thereforetherearenomaterialunfulfilledconditionsorothercontingenciesattachedto government assistance that has been recognised.
(all figures in EUR millions unless statedotherwise)
26
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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InAugust2020theGroupsignedsalesagreementofpropertylocatedinWroclaw,Poland.Theproperty boughtin2017waspresentedasassetheldforsale(EUR4.8million)intheconsolidatedreportasof30June 2020.ThesellingpriceintheamountofEUR7.5million(PLN33.7million)waspaidinQ32020.Thegainwas recognized as Result on restaurants and non-current assets disposal in operating expenses.
9.Other operating income/expenses
year ended
31 December 2020
31 December 2019
Government grants for payroll and employee benefits
29.5
-
Government grants for rent and other
2.1
-
Gain on Pizza Portal investment disposal
-
37.1
Supply chain services
2.5
7.0
Compensations, Insurance gains
-
5.2
Reversal of provisions
0.4
2.3
Other income
2.6
3.3
Franchise agreements related provision
(5.0)
(8.0)
Other provisions
(1.0)
-
31.1
46.9
10.Impairment losses
Details of impairments losses recognized:
11.Finance income
Financeincomeinyearended31December2020representsmainlybankandotherinterestsreceived. Financeincomeinyearended31December2019representsmainlygainonfairvaluemeasurementofassets FVTPL in amount of EUR 31.7 million.
12.Finance costs
year ended
31 December 2020
31 December 2019
Interest expense
(18.6)
(17.7)
Interest expense on lease liability
(26.7)
(25.8)
Financial fees recognised as interest expense
(1.8)
(1.9)
Financial fees – other
(0.1)
(0.4)
Net cost from exchange differences
(11.5)
-
     Net income from exchange differences on lease liability
(11.2)
-
     Net income from exchange differences - other
(0.3)
-
Other
(2.3)
(0.2)
Total finance cost
(61.0)
(46.0)
year ended
31 December 2020
31 December 2019
Impairment on trade receivables (note 37)
6.2    
4.1    
Net impairment losses on financial assets
6.2
4.1
Impairment of property, plant and equipment (note 14)
32.8
10.2
Impairment of intangible assets (note 16)
3.4
5.8
Impairment of right of use assets (note15)
20.8
6.0
Impairment of goodwill (note 17)
27.6
13.4
Net impairment losses of other assets
84.6
35.4
Total net impairment losses of assets
90.8
39.5
(all figures in EUR millions unless statedotherwise)
27
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
13.Income taxes
year ended
31 December 2020
31 December 2019
Current tax 
(9.4)
(26.7)
Deferred income tax recognised in the income statement
27.1
0.2
Income tax recognised in the income statement
17.7
(26.5)
Deferred tax asset
Opening balance 
22.4
21.3
Closing balance
37.6
22.4
Deferred tax liability
Opening balance
51.4
49.5
Closing balance
39.0
51.4
Change in deferred tax assets/liabilities
27.6
(0.8)
Temporary differences in the calculation of deferred tax relate to the following items:  
Asset 
Liability
31 December 2020
31 December 2019
31 December 2020
31 December 2019
Property, plant and equipment and intangible assets 
14.2
10.9
50.2
57.3
Leases
9.4
4.1
-
-
Financial instruments measured at fair value through profit or loss
-
-
-
7.9
Trade and other receivables
2.4
2.7
-
-
Provisions and other liabilities
8.1
9.5
-
-
Tax losses carried forward
16.1
10.2
-
-
Other differences
1.7
1.5
3.1
2.6
51.9
38.9
53.3
67.8
The offset of tax
(14.3)
(16.5)
(14.3)
(16.4)
37.6
22.4
39.0
51.4
Deferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrent taxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesrelatetothesamefiscal authority.Thecurrentfinancialsituationandstrategicplansallowtoconsiderthelevelofrecognisedassets and deferred tax assets to be reasonable.
Changes in deferred tax asset and liabilities are recognized as follow:
        year ended
31 December 2020
31 December 2019
Change in deferred tax assets/liabilities
27.6
(0.8)
of which:
Deferred taxes recognised in the income statement
27.1
0.2
Deferredtaxesrecognisedinothercomprehensiveincome – net investment hedges
(1.8)
0.3
Deferredtaxesrecognisedinequity-valuationofemployee options
2.2
0.3
Exchange differences
0.1
(1.6)
TheGroupoperatesinvarioustaxjurisdictions.Incometaxesanddeferredincometaxesaremeasuredusing taxratesenactedorsubstantivelyenactedatthereportingdateinparticularcountries.Deferredtaxassets andliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheyearwhentheassetisorthe liabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthe reporting date. 
IncometaxontheGroup’sprofitbeforetaxdiffersfromthetheoreticalamountwhichwouldbeobtainedif the weighted average tax rate applicable to consolidated companies were applied:
(all figures in EUR millions unless statedotherwise)
28
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
year ended
31 December 2020
31 December 2019
Profit before tax
(201.4)
93.4
Income tax calculated according to domestic tax rates applicable to income in particular countries*
(52.3)
16.7
Temporary differences on goodwill impairment for which no deferred tax was recognised
7.9
3.9
Tax loss for the current period for which no deferred tax asset was recognised
15.8
3.8
Change of assumptions on deferred tax asset from tax losses related to previous years
9.6
3.8
Effect of local tax reported as income tax
2.7
3.2
Income permanently not subject tax (Pizza Portal sale transaction)
-
(8.6)
Change in estimates of deferred tax liabilities
(7.9)
-
Effect of other differences 
6.5
3.7
Corporate income tax in the income statement
(17.7)
26.5
*The applicable weighted average tax rate amounted to 26.0% (for the period ended 31 December 2019: 17.9%). 
As at 31 December 2020 Group has the following tax losses: 
Year of expiry of tax loss carryforwards
Value of tax losses 
Tax losses in respect of which deferred tax assets were recognised
Tax losses in respect of which no deferred tax assets were recognised
2020 - 2027
33.8
2.2
31.6
No time limit
150.0
35.5
114.5
183.8
37.7
146.1
Deferred taxes were not recognised for the following tax losses:
year ended
31 December 2020
31 December 2019
Poland
19.9
4.6
Hungary
-
3.3
France
20.0
11.9
Germany
104.1
29.8
Slovakia 
0.8
-
China
0.3
0.2
Slovenia
0.6
0.5
Romania
0.4
1.0
146.1
51.3
Asat31December2020theGrouprecognisedadeferredtaxassetfromtaxlossesinanamountofEUR16.1 million.TheGroupanalysesrecoverabilityofdeferredtaxesontaxlossesbasedontheguidanceinIAS12. Groupsubsidiariesanalyzestheperiodsinwhichtaxlossescanbeutilized,whethertherearesufficient taxabletemporarydifferencesrelatedtothesametaxauthorityandtaxjurisdiction,andiftheentitywill createtaxableprofitsintheperiodsinwhichunusedtaxlossescanbeutilized.Asaresultofanalysis performed,in2020GrouprecognisedtotalbalanceofEUR16.1milliondeferredtaxassetsrelatedtounused taxlosses.ThebalancerelatesmainlytotaxlossesinSpanishmarket,FrenchKFC,SushientitiesandPolish market.TaxlossesinabovementionedtaxjurisdictionshavenolimitofexpirationexceptforPolishmarket – 5 years. 
TheGroupanalysesbusinessplansandcashflowsforecastsofsubsidiariesintermsofrecoverabilityof deferredtaxassetsrecognised.Inparticular,theGroupperformsgoodwillimpairmenttestsforwhole businessesandbalancesoftaxlossesforwhichdeferredtaxeswererecognizedareverifiedagainstprojected taxcashoutflows.Incaseunithasprojectednegativeresults,deferredtaxassetsarereassessedintermsof recoverability.In2020theGrouprecognisedimpairmentlossongoodwillinStarbucksGermanybusiness, thatresultedalsoin lackofrecognitionofdeferredtaxesontaxlossesandderecognitionofdeferredtax asset  accounted in past. 
(all figures in EUR millions unless statedotherwise)
29
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
In2020totaltaxeffectoftaxlossforthecurrentperiodforwhichnodeferredtaxassetwasrecognised amountedEUR15.8millionandtaxeffectofEUR9.6millionrelatestodeferredtaxes ontaxlossesrecognized in prior years and derecognized in current year.
Ataxauthoritymaycontrolthetaxreturns(iftheyhavenotalreadybeencontrolled)oftheGroupcompanies from 3 to 5 years as of the date of their filing.
The table below presents tax rate by country applicable for the year 2020 and 2019.
Country
Income tax rates 
Deferred income tax assets and liabilities
2020
2019
2020
2019
Spain
25.00%
25.00%
25.00%
25.00%
Poland
19.00%
19.00%
19.00%
19.00%
Czech
19.00%
19.00%
19.00%
19.00%
Hungary
9.00%
9.00%
9.00%
9.00%
Russia
20.00%
20.00%
20.00%
20.00%
Serbia
15.00%
15.00%
15.00%
15.00%
Bulgaria
10.00%
10.00%
10.00%
10.00%
USA
35.00%
35.00%
35.00%
35.00%
Malta
35.00%
35.00%
35.00%
35.00%
Germany
30.00% *
30.00% *
30.00% *
30.00% *
France **
28.00%
31.00%, 28.00%
28%, 25%
31%, 28%, 25%
Croatia
18.00%
18.00%
18.00%
18.00%
Hong Kong
16.50%
16.50%
16.50%
16.50%
China
25.00%
25.00%
25.00%
25.00%
Romania
16.00%
16.00%
16.00%
16.00%
Slovakia
21.00%
21.00%
21.00%
21.00%
Slovenia
19.00%
19.00%
19.00%
19.00%
Austria
25.00%
25.00%
25.00%
25.00%
Portugal
21.00%
21.00%
21.00%
21.00%
 *DeferredtaxesinGermanywerecalculatedusingataxrateof30%whichisthebasicincometaxrateinGermanyof15%and an additional average trade tax of 15%.
**DeferredtaxesinFrancewerecalculatedtakingintoaccountanapprovedplanoftheprogressivereductionoftheincometax rate from 31.0% in 2019, 28% in 2020 to 25.0% in 2022.
14.Property, plant and equipment
The table below presents changes in the value of property, plant and equipment in 2020 and 2019:
2020
Land
Buildings and expenditure on development of restaurants
Machinery & equipment
Vehicles
Other tangible assets
Assets under construction
Total
PPE as at 1 January
11.4
291.8
183.5
0.8
31.4
66.0
584.9
Additions
-
6.8
8.6
0.2
4.1
48.5
68.2
Depreciation (note 8)
-
(43.5)
(40.1)
(0.5)
(16.1)
-
(100.2)
Impairment losses (note 10)
-
(21.4)
(11.1)
(0.1)
(0.2)
-
(32.8)
Disposals, liquidation and deconsolidation of assets
-
(1.7)
(0.7)
(1.7)
(0.2)
(9.5)
(13.8)
Transfers
-
49.9
14.2
1.6
16.1
(81.8)
-
Exchange differences
(0.7)
(15.4)
(8.1)
0.0
(2.2)
(4.9)
(31.3)
PPE as at 31 December
10.7
266.5
146.3
0.3
32.9
18.3
475.0
Gross book value 
10.7
587.2
362.6
3.4
91.2
20.3
1 075.4
Accumulated depreciation and impairment write-downs
-
(320.7)
(216.3)
(3.1)
(58.3)
(2.0)
(600.4)
Net book value 
10.7
266.5
146.3
0.3
32.9
18.3
475.0
2019
Land
Buildings and expenditure on 
Machinery & equipment
Vehicles
Other tangible assets
Assets under construction
Total
(all figures in EUR millions unless statedotherwise)
30
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
development of restaurants
PPE as at 1 January
11.7
262.4
156.1
1.3
28.6
41.3
501.4
Application of IFRS 16
(0.2)
(1.4)
(0.6)
(0.4)
-
-
(2.6)
Acquisition
-
-
0.4
-
-
-
0.4
Additions
0.3
70.2
73.4
0.8
17.9
25.2
187.8
Depreciation (note 8)
-
(43.6)
(41.8)
(0.6)
(12.5)
-
(98.5)
Impairment losses (note 10)
-
(1.7)
(5.1)
(0.1)
(2.8)
(0.5)
(10.2)
Disposals and deconsolidation of assets
-
0.5
(0.9)
(0.1)
(0.4)
(0.8)
(1.7)
Transfers
(0.7)
0.7
-
-
-
-
-
Exchange differences
0.3
4.7
2.0
(0.1)
0.6
0.8
8.3
PPE as at 31 December
11.4
291.8
183.5
0.8
31.4
66.0
584.9
Gross book value 
11.5
579.3
372.9
1.6
79.7
68.4
1 113.4
Accumulated depreciation and impairment write-downs
(0.1)
(287.5)
(189.4)
(0.8)
(48.3)
(2.4)
(528.5)
Net book value 
11.4
291.8
183.5
0.8
31.4
66.0
584.9
DuetothenatureoftheGroupbusinessthebalanceoftheproperty,plantandequipmentconsistsofassets in over 1.8 thousand restaurants. There are no individually significant assets. 
Depreciation was charged as follows:
year ended
31 December 2020
31 December 2019
Costs of restaurant operations
                 96.5 
94.4
Franchise expenses and other
                   1.3 
1.5
General and administrative expense
                   2.4 
2.6
Total depreciation
               100.2 
98.5
Increasingtheaverageusefullivesofproperty,plantandequipmentby10%wouldleadtoadecreasein depreciationforthe12-monthperiodended31December2020byaroundEUR10.0million.Increasingthe averageusefullivesofproperty,plantandequipmentby10%wouldleadtoadecreaseindepreciationfor the 12-month period ended 31 December 2019 by around EUR 10.1 million.
15.Leases
TheGroupleasesover2.0thousandpropertiesinordertooperatebrandrestaurants.Leasetermsare negotiatedonanindividualbasisandcontainawiderangeofdifferenttermsandconditions,dependingon localleasepracticeandlegalframework.Additionally,insomecountries,theGroupleasescars,equipment, as well as properties for administration or storage purposes and company flats.
Thetablebelowpresentsthereconciliationoftheright-of-useassetsandleaseliabilitiesforyearsended 31 December 2020 and 2019:
(all figures in EUR millions unless statedotherwise)
31
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Right-of-use asset
Lease liabilities
2020
Restaurant properties
Other
Total right-of-use asset
Total liabilities
As at 1 January 
835.5
17.2
852.7
864.1
Additions – new contracts
62.5
2.7
65.2
65.2
Changes and reassessments
(4.7)
2.0
(2.7)
(23.6)
Amortisation expense (note 8)
(134.6)
(5.5)
(140.1)
- 
Impairment (note 10,18)
(20.8)
- 
(20.8)
- 
Interest expense (note 12)
- 
- 
-
26.7
Payments 
- 
- 
-
(134.9)
Exchange differences
(44.0)
(0.7)
(44.7)
(36.1)
As at 31 December
693.9
15.7
709.6
761.4
Right-of-use asset
Lease liabilities
2019
Restaurant properties
Other
Total right-of-use asset
Total liabilities
As at 1 January 
790.8
8.7
799.5
790.8
Additions – new contracts
105.5
10.6
116.1
116.1
Changes and reassessments
62.8
3.0
65.8
65.8
Amortisation expense (note 8)
(131.7)
(5.2)
(136.9)
- 
Impairment (note 10,18)
(5.9)
(0.1)
(6.0)
- 
Interest expense (note 12)
- 
- 
-
25.8
Payments 
- 
- 
-
(148.3)
Exchange differences
14.0
0.2
14.2
13.9
As at 31 December
835.5
17.2
852.7
864.1
Thefollowingaretheremainingcontractualmaturitiesofleasepaymentsatthereportingdate.Theamounts are gross and undiscounted and include contractual interest payments.
31 December 2020
31 December 2019
Up to 1 year 
161.0
154.1
Between 1 and 3 years
237.5
269.1
Between 3 and 5 years
164.0
192.2
Between 5 and 10 years
201.9
250.2
More than 10 years
131.2
157.0
Total contractual lease payments
895.6
1 022.6
Future finance costs of leases
134.2
158.5
Total lease liabilities
761.4
864.1
Amortisation was charged as follows:
year ended
31 December 2020
31 December 2019
Costs of restaurant operations
135.5
132.5
General and administrative expense
4.6
4.4
Total amortisation
140.1
136.9
TheGrouprecognisedin2020rentexpensefromshort-termleasesofEUR1.6million,leasesoflow-value assetsofEUR4.8millionandvariableleasepaymentsofEUR-5.3million(includingnegativeamountofEUR 18.6millionCOVID-19-relatedrentconcessions)fortheyearended31December2020.Impairmenttest procedures, assumptions used and tests’ results are disclosed in note 18.
Amountsrecognisedinstatementofcashflows amountedtoEUR134.9millionpresentedinfinancing activityasrepaymentofleaseliabilityandEUR19.7millioninoperatingactivityasleasepaymentsnot includedintheleaseliability.TotalcashoutflowforleasesamountedtoEUR154.6millionintheyearended 31 December 2020.
Inthecomparableperiod,in2019,theGrouprecognisedrentexpensefromshort-termleasesofEUR2.4 million,leasesoflow-valueassetsofEUR4.5millionandvariableleasepaymentsofEUR19.2millionforthe yearended31December2019.Impairmenttestprocedures,assumptionsusedandtests’resultsare 
(all figures in EUR millions unless statedotherwise)
32
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
disclosed in note 18.
Inthecomparableperiod,in2019, amountsrecognisedinstatementofcashflows amountedtoEUR148.3 millionpresentedasrepaymentofleaseliabilityandEUR26.1millionasleasepaymentsnotincludedinthe leaseliability.TotalcashoutflowforleasesamountedtoEUR174.4millionintheyearended31December 2019.
Additional information about lease payments and lease term
TheGroup’sleasepaymentsareoftenchargedasahigheroffixedpaymentandturnoverbasedpayment. TheGrouprecognizedtheexcessofturnoverbasedrentasvariableleasepayments.Thereforethestores’ revenueimpactsonthefuturevariableleasepayments.Intheyearended31December2020,theshareof variable payments (excluding rent concessions) amounted to 10% of fixed lease payments (2019: 13%).
TheintentionoftheGroupistosecurelong-termpropertyleasecontracts,withflexibilitythatenables adjustmentsofstrategyandreactiononchangingmarketconditions.VastmajoritypartoftheGroup’sleases providessomeextentofflexibility,forexample,theGroupcanadjustitsexposurebyexercisingtermination options,extensionoptionsorusingpre-emptionrightstogointoarenewalagreement.Suchrightsare subject of individual negotiations with lessors and do not deviate from standard market conditions.
TheGroupdoesannualrevisionofexpiringleasecontracts.TheGroupperformscase-by-caseanalysisofthe contracts,adjustedtothelateststoreperformance,up-to-dateGroup’sstrategyandmarketconditions. Duringthisprocess,amongothers,theGroupdecideswhethertoexercise,ornot,theextensionand terminationoptionsfallingforthefollowingyear.Thedecisionshaveimpactontheassessmentoftheleases end date used in the measurement of lease liability. 
COVID-19-related rent concessions
TheGrouphasbeennegotiatingrentconcessionswithitslandlordsforthemajorityofitsstoreleasesasa resultofthesevereimpactoftheCOVID-19pandemicduringtheyear.TheGroupappliedthepractical expedientforCOVID-19-relatedrentconcessionsconsistentlytoeligiblerentconcessionsrelatingtoitsstore leases.TheGroupcontinuestoaccountforrentconcessionsrelatingtoitsotherleasesunderother applicable guidance in IFRS 16.
Theamountrecognisedinprofitorlossforthereportingperiodtoreflectchangesinleasepaymentsarising fromrentconcessionstowhichtheGrouphasappliedthepracticalexpedientforCOVID-19-relatedrent concessions is EUR 18.6 million (2019: null).
16.Intangible assets
The table below presents changes in the value of intangible assets in 2020 and 2019:
2020
Proprietary brands
Licenses for use of Pizza Hut, KFC, Burger King, Starbucks trademarks
Other intangible assets
Relations with franchisees and customers
Total
IA as at 1 January
156.7
25.9
35.8
35.1
253.5
Additions
-
3.2
3.3
-
6.5
Amortisation (note 8)
(0.3)
(3.8)
(5.9)
(3.1)
(13.1)
Impairment losses (note 10)
(2.6)
(0.8)
-
-
(3.4)
Disposals and derecognition of assets
-
(0.1)
(0.3)
-
(0.4)
Exchange differences
-
(1.8)
(0.6)
-
(2.4)
IA as at 31 December
153.8
22.6
32.3
32.0
240.7
Gross book value
158.4
44.6
75.1
51.9
330.0
Accumulated amortisation and
 impairment write-downs
(4.6)
(22.0)
(42.8)
(19.9)
(89.3)
Net book value
153.8
22.6
32.3
32.0
240.7
(all figures in EUR millions unless statedotherwise)
33
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
2019
Proprietary brands
Licenses for use of Pizza Hut, KFC, Burger King, Starbucks trademarks
Other intangible assets
Relations with franchisees and customers
Total
IA as at 1 January
157.7
22.1
43.2
38.2
261.2
Application of IFRS 16
-
-
(0.5)
-
(0.5)
Additions
-
7.8
5.8
-
13.6
Amortisation (note 8)
(0.2)
(3.7)
(6.9)
(3.1)
(13.9)
Impairment losses (note 10)
-
(0.7)
(5.1)
-
(5.8)
Disposals and derecognition of assets
(0.9)
(0.3)
(0.7)
-
(1.9)
Exchange differences
0.1
0.7
-
-
0.8
IA as at 31 December
156.7
25.9
35.8
35.1
253.5
Gross book value
158.4
45.5
74.9
51.9
330.7
Accumulated amortisation and
 impairment write-downs
(1.7)
(19.6)
(39.1)
(16.8)
(77.2)
Net book value
156.7
25.9
35.8
35.1
253.5
Amortisation was charged as follows:
year ended
31 December 2020
31 December 2019
Costs of restaurant operations
5.4
6.3
Franchise expenses and other
1.9
2.3
General and administrative expense
5.8
5.3
Total amortization
13.1
13.9
Impairment test procedures, assumptions used and tests’ results are disclosed in note 18.
TheGroupbelievesthatbrandsdonotgeneratecashinflowsthatarelargelyindependentofothergroups ofassets.ForsomeGroupbrands,cashinflowsfromthefranchiseebusinessarepartiallyindependentof othercashinflows,however,thesedonotrepresentthevalueofthewholebrand.Brandsareusedtosupport restaurantbusinessdevelopmentandrevenuesfromsalesofproductsundercertainbrandsarenotcapable ofbeingsplitbetweenrevenueforthebrandandrevenueforcostsofproduction.Consequently,brandsare notacash-generatingunitandarenottestedonastandalonebasis.Suchassetsaretestedtogetherwith their relevant goodwill values. The results of the test are presented in note 18.
ThetablebelowpresentsdetailsofProprietarybrandsasof31December2020.Tableshowslevelatwhich the brands are tested:
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
4.7
(1.9)
-
2.8
Bacoa
definite
Spain - Bacoa
2.5
(0.1)
(2.4)
-
158.3
(2.0)
(2.4)
153.9
Otherintangibleassetscovermainlyexclusivityrightsincludingmaster-franchiserightsintheamountofEUR 3,7million(EUR5.7millionasat31December2019),keymoniesintheamountofEUR18.3millions(EUR 18.6 millions as at 31 December 2019) and computer software. 
17.Goodwill
GoodwillrecognisedonbusinesscombinationsisallocatedtothegroupofCGUsthatisexpectedtobenefit from the synergies of the business combination.
ThetablebelowpresentsgoodwillallocatedtoparticularlevelsonwhichitismonitoredbytheGroup.Inall cases is not higher than the operating segment level:
(all figures in EUR millions unless statedotherwise)
34
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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2020
1 January 
Increases
(provisional)
Impairment
Exchange differences
31 December
Sushi Shop (all markets)
140.5
-
-
-
140.5
Spain – La Tagiatella and KFC
90.9
-
-
-
90.9
Spain - Bacoa
1.2
-
(1.2)
-
-
Russia - KFC
40.4
-
-
(9.6)
30.8
Germany - Starbucks
35.0
-
(26.4)
-
8.6
China – Blue Frog
19.8
-
-
(0.5)
19.3
France - KFC
14.0
-
-
14.0
Hungary – KFC 
3.8
-
-
(0.4)
3.4
Romania - SBX
2.6
-
-
-
2.6
Czechia – KFC
1.4
-
-
-
1.4
Poland – Other
0.6
-
-
-
0.6
Total
350.2
-
(27.6)
(10.5)
312.1
2019
1 January 
Increases
(provisional)
Decreases
Impairment
Exchange differences
31 December
Sushi Shop (all markets)
139.0
1.5
-
-
-
140.5
Spain – La Tagiatella and KFC
89.6
1.3
-
-
-
90.9
Spain - Bacoa
1.2
-
-
-
-
1.2
Russia - KFC
35.7
-
-
-
4.7
40.4
Germany - Starbucks
35.0
-
-
-
-
35.0
China – Blue Frog
19.7
-
-
-
0.1
19.8
France - KFC
14.0
-
-
-
14.0
France - PH
8.8
-
-
(8.8)
-
-
Germany - KFC
4.6
-
-
(4.6)
-
-
Hungary – KFC 
3.8
-
-
-
-
3.8
Romania - SBX
2.7
-
-
-
(0.1)
2.6
Czechia – KFC
1.5
-
-
-
(0.1)
1.4
Poland – Pizza Portal
0.7
-
(0.7)
-
-
-
Poland – Other
0.6
-
-
-
-
0.6
Total
356.9
2.8
(0.7)
(13.4)
4.6
350.2
Impairment test procedures, assumptions used and tests’ results are disclosed in note 18.
18.Impairment of non-current assets
Restaurant level tests
TheGroupperiodicallyreviewsthecarryingamountsofitsnon-financialassetstodeterminewhetherthere isanyindicationofimpairment.Ifanysuchindicationexists,thentheasset’srecoverableamountisestimated forthepurposeofimpairmenttesting.Therecoverableamountofanassetisdeterminedatthelevelofa singlerestaurantasthesmallestunit(orsetofassets)generatingcashflowsthatarelargelyindependentof thecashinflowsgeneratedbyotherassets/groupsofassets.Restaurantassetsincludeamongstothers property,plantandequipment,intangibleassetsandrightofuseassets.Impairmentindicatorsdefinedby the Group are described in note 40.
Impairmentindicatorsarereviewedtwiceayearandrespectiveimpairmentstestforrestaurantsare performed twice a year. 
Therecoverableamountofthecash-generatingunit(CGU)isdeterminedbasedonvalueinusecalculation fortheremainingusefullifedeterminedbyleaseexpirydateorrestaurantclosuredate(ifconfirmed),using the discount rate for each individual country. 
CarryingamountofeachCGUconsistsofcarryingamountofabovedescribedassetsdecreasedbybalance ofleaseliabilitiesassignedtotherestaurants(netassetsofCGU).Todeterminetherecoverableamountof CGUtheleaseliabilitiesbalanceisalsodeductedfromtotaldiscountedcashflows(withoutthebaserental charge).CarryingamountofCGUiscomparedwithrecoverableamountandimpairmentlossisaccounted up to total balance of net assets of CGU. 
(all figures in EUR millions unless statedotherwise)
35
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Aspresentedbelowitcanbeobservedthatdiscountratesusedfortheimpairmenttesthaveincreased comparingtoyearend2019tests.ThisistheeffectofturbulencesontheglobalmarketduetoCOVID-19 pandemic and increases in markets risk premiums and/or risk-free rates.
Discounts rates applied are shown in the table below.
Pre-tax discount rate
31 December 2020
Pre-tax discount rate
30 June 2020
Pre-tax discount rate
31 December 2019
Poland
7.6%
6.8%
6.1%
Czechia 
7.0%
6.0%
5.7%
Hungary
9.9%
7.7%
6.4%
Russia
11.6%
10.5%
9.9%
Serbia
11.4%
9.9%
8.1%
Bulgaria
8.3%
7.0%
5.2%
Spain
8.1%
7.3%
5.7%
Germany
6.0%
5.4%
4.4%
France
6.1%
6.1%
5.0%
Croatia
9.8%
8.6%
6.3%
China
8.3%
7.4%
7.2%
Romania
9.7%
9.4%
8.2%
Slovakia
7.4%
6.2%
4.8%
Portugal
8.2%
7.7%
5.8%
Austria
7.0%
5.4%
4.6%
Slovenia
8.0%
6.9%
5.3%
Belgium
6.6%
5.9%
-
Italy
8.1%
8.2%
-
Switzerland
4.6%
4.6%
-
Luxemburg
6.4%
4.8%
-
Netherland
5.9%
4.9%
-
United Kingdom
6.8%
5.5%
-
Details of impairments losses recognised:
year ended
Note
31 December 2020
31 December 2019
Net impairment of property, plant and equipment
14
32.8
10.2
Net impairment of intangible assets
16
3.4
5.8
Net impairment of right of use assets
15
20.8
6.0
Net impairment of goodwill
17
27.6
13.4
Net impairment losses of non- current other assets
84.6
35.4
Detailsofimpairmentslossesrecognisedpercategoryofassets(property,plantandequipment,rightofuse assets, intangible assets or goodwill) are presented in notes 14, 15, 16 and 17.
Recognizedimpairmentlossesdonotrelatetoanyindividualsignificantitems,buttonumerousrestaurants testedduringtheyear.ThisreflectsthespecificsofGroup’soperations,wherebusinessisconductedthrough multiple, individually small operating units.
COVID-19pandemicishavingasignificantimpactontheGroup’soperationsinalmostallareas.Withregards totheimpairmenttests,morerestaurantsshowedimpairmentindicatorstheninpriorperiods,and consequently more restaurants were tested for the impairment.
TheGroupuseditsbestestimateontherecoverypathforpre-pandemiclevelsofrevenuesandmargins,but overallthecashflowprojectionsdecreasedcomparingtothoseusedintestsmadeforyearend2019.Level of impairment losses recognized was also affected by the increase of the discount rates used.
Forfinancialyearended31December2020Grouphastested763restaurantsasseparatecashgenerating units.Impairmentlossorpartialimpairmentlosswasrecognizedfor236restaurants.Reversalofimpairment or partial reversal of impairment was accounted for 32 restaurants.
Asaresultoftestsperformedduringfinancialyearended31December2020,impairmentintheamountof EUR57million(EUR36.2millionforproperty,plantandequipmentandintangibleassets,EUR20.8million forrightofuseassets)wasrecognized.FivehighestindividualimpairmentlossesamountedintotalEUR6.3 million. An average impairment loss per restaurant was less then EUR 0,2 million.
(all figures in EUR millions unless statedotherwise)
36
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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FivehighestindividualreversalsofimpairmentlossesamountedintotalEUR2million.Anaveragereversal of impairment per restaurants was less then EUR 0,1 million.
During year ended 31 December 2019 Group has tested 305 restaurants as separate cash generating units.
Impairmentlossorpartialimpairmentlosswasrecognizedfor114restaurants.Reversalofimpairmentor partial reversal of impairment was accounted for 41 restaurants.
Asaresultoftestsperformed,impairmentintheamountofEUR11.8million(EUR7.1millionforproperty, plantandequipmentandintangibleassets,EUR4.7millionforrightofuseassets)wasrecognized.Five highestindividualimpairmentlossesamountedintotalEUR3.9million.Anaverageimpairmentlossper restaurant amounted EUR 0.1 million.
FivehighestindividualreversalsofimpairmentlossesamountedintotalEUR1.4million.Anaveragereversal of impairment per restaurants was of EUR 0.1 million.
Goodwill and intangibles with undefined useful lives level
TheGroupperformsimpairmenttestforgoodwilltogetherwithanyintangibleassetswithindefiniteuseful lives,otherintangibles,propertyplantandequipment,rightofuseassets,aswellanyothernon-current assets that operate on the group of CGUs where goodwill is allocated. 
Mandatoryimpairmenttestsareperformedatyearends.However,asCOVID-19pandemichasasignificant impactonGroup’soperations,asaresponsetopotentialimpairmentriskdotoCOVID-19outbreak,the Grouphasdecidedtoperform testsalsointhisinterimreportingofhalfyearandyearend.Group’smarket capitalization exceeds the carrying value of consolidated net assets. 
Presentvaluetechniquemodel(theincomeapproach)isusedbyGroupforthepurposeofdeterminingfair value.Theincomeapproachconvertsfutureamounts(e.g.cashflowsorincomeandexpenses)toasingle discountedamount.Thefairvaluereflectscurrentmarketexpectationsaboutthosefutureamounts.The incomeapproachusesunobservableinputs,asaresult,thefairvaluemeasurementisgenerallyclassifiedas Level 3 in the fair value hierarchy.
Thecashflowswerederivedfromthemostrecentbudgets,plansfornextyearandforecastsforthefollowing four years. 
The5thyearnormalizedprojectionsareusedtoextrapolatecashflowsintothefutureifthe5thyear representsasteadystateinthedevelopmentofthebusiness.Theadjustmentsmaybenecessarytoreflect theexpecteddevelopmentofthebusiness(normalizationofcashflows).Growthratesdonotexceedthe long-term average growth rate for the products, industries, or country or market in which the asset is used.
Therecoverableamountismostsensitivetothediscountrateused,growthrateusedforextrapolation purposesandtheweightedaveragebudgetedEBITDAmargin.TheweightedaveragebudgetedEBITDA marginiscalculatedasanaverageforthe5yearsprojectionperiodi.e.withoutanyimpactoftheresidual value element. Budgeted revenues are used as weights.
The main input assumptions used in test are as follows:
YE 2020
Post-tax 
discount rate 
Implied 
pre-tax discount rate
Growth rate for residual value 
Weighted average budgeted EBITDA margin
Czechia – KFC
6.8%
7.8%
2.1%
17.8%
Hungary – KFC
10.0%
10.7%
3.1%
16.9%
Russia – KFC
10.4%
12.0%
3.7%
15.5%
Spain – KFC and TAG
7.1%
9.0%
1.2%
17.0%
Spain – Bacoa 
7.1%
7.1%
1.2%
(5.8%)
China – BF
7.3%
8.9%
2.2%
13.2%
Romania – SBX
9.2%
10.2%
3.0%
18.0%
Germany – KFC
5.3%
6.6%
1.7%
4.9%
Germany – Starbucks
5.3%
6.6%
1.7%
5.4%
France – KFC
5.5%
7.0%
1.3%
8.7%
France – PH
5.5%
7.0%
1.3%
(10.9%)
Sushi Shop (all markets)
5.5%
7.1%
1.3%
14.0%
Basedontheimpairmenttestpreparedduringinterimtests,theimpairmentwasrecognizedin2020in 
(all figures in EUR millions unless statedotherwise)
37
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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followinggroupofCGUs:BacoabusinessinSpain,andStarbucksbusinessinGermany.Inallremainingtests the recoverable amount exceeded the carrying amount of the tested group of CGUs.
No impairment losses were recognized based on the year end tests.
TheGroupcarriedoutasensitivityanalysisfortheimpairmenttestsperformed.Thesensitivityanalysis examined the impact of changes in: 
-discount rate applied,
-weighted average budgeted EBITDA margin,
-growth rate for residual value,
-sales revenues increases,
assuming other factors remain unchanged.
Theobjectiveofsuchasensitivityanalysisistodetermineifreasonablepossiblechangesinthemainfinancial assumptions would lead to an impairment loss being recognised. 
Fordiscountrate,growthrate,weightedaveragebudgetedEBITDAmargin,areasonablepossiblechange wasdeterminedas10%oftheinputdata,applicableforparticularunit.Consequently,eachimpairmenttest hasadifferentlevelofareasonablechangeininputs,whichcanbedeterminedbymultiplyingthebaseinput data used in the impairment test as presented in table above by 10%.
AdditionallyGroupperformedsensitivityanalysisontheexpectedchangesinsalesrevenuesrecognition.In thatcaseGroupdeterminesreasonablechangeindividuallyforeachbusinesstested.Usuallythisisinarange of 1-5% decrease of estimated sales revenues in each year of projection.
Results of the sensitivity analysis at YE 2020
Basedonthesensitivityanalysisperformedareasonablypossiblechangeinanyofthekeyassumptionsused wouldnotleadtorecognitionofimpairmentlossesi.e.carryingamountwouldnotexceedtherecoverable amount.
•Test results for HY2020
HY 2020
Post-tax 
discount rate 
Implied 
pre-tax discount rate
Growth rate for residual value 
Weighted average budgeted EBITDA margin
Czechia – KFC
5.9%
6.7%
2.1%
20.2%
Hungary – KFC
8.6%
9.1%
3.0%
20.4%
Russia – KFC
10.7%
12.3%
4.3%
15.3%
Spain – KFC and TAG
6.7%
8.3%
1.5%
18.1%
Spain – Bacoa 
6.7%
6.7%
1.5%
(20.9%)
China – BF
6.8%
8.2%
2.5%
11.7%
Romania – SBX
9.9%
11.0%
2.9%
18.8%
Germany – KFC
5.0%
6.1%
1.9%
3.2%
Germany – Starbucks
5.0%
6.1%
1.9%
2.6%
France – KFC
5.0%
6.2%
1.6%
6.7%
France – PH
5.0%
6.3%
1.6%
(8.9%)
Sushi Shop (all markets)
5.0%
6.3%
1.6%
13.6%
Impairmentlosseswere recognizedinthefollowinggroupofCGUs:BacoabusinessinSpain,andStarbucks business in Germany.
Results of the sensitivity analysis for businesses where no impairment of goodwill was needed:
Sensitivity analysis for KFC Germany
ForKFCGermanyifinitiallyplannedweightedaveragebudgetedEBITDAmarginwas5%lowerthantheGroup wouldneedtorecognizeanimpairmentofEUR0.9million.Ifinitiallyplannedweightedaveragebudgeted EBITDAmarginwas10%lowerthantheGroupwouldneedtorecognizeEUR3.9millionasanimpairment loss. Reasonable change in all remaining key assumptions would not lead to any impairment loss.
Forremainingtests,basedonthesensitivityanalysisperformedareasonablypossiblechangeinanyofthe keyassumptionsusedwouldnotleadtorecognitionofimpairmentlossesi.e.carryingamountwouldnot 
(all figures in EUR millions unless statedotherwise)
38
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
exceed the recoverable amount.
Results of the impairment tests and sensitivity analysis for businesses impairment of goodwill was recognized:
Sensitivity analysis for Bacoa business in Spain
TheimpairmenttestperformedforBacoabusinessresultedinrecognitionofimpairmentlossesintotalvalue ofEUR3.6millionwhichincludedimpairmentforgoodwillEUR1.2millionandimpairmentofBacoa trademark in amount of EUR 2.4 million.
Thecarryingamountofthetestedunitincludedgoodwill,property,plantandequipment,intangibleassets, rightofuseasstsaswellcorrespondingleaseliabilitiesanddeferredtaxliabilitiesrelatedtoinitialacquisition of the business. 
CarryingamountofCGUwascomparedwithrecoverableamountandimpairmentlossisaccountedupto total balance of net assets of CGU.
TheGroupperformedthesensitivityanalysisinvariousscenariosforBacoa.Groupbelievesreasonable changeinkeyassumptionsisat10%levelofeachinputvalueandbetween3%and5%changeinsales revenuesvalue(foreachyearofprojection).Thebelowtablepresentsifanychangeinimpairmentlosswould beaccountedifrespectiveinputdatawerechangesbytestedvalue,assumingremainingparametersremain stable. 
Input/ change in input
Possible change in impairment loss
Discount rate - in model (post-tax discount rate (6.7%))
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Growth rate for residual value - in model (1.5%)
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Weighted average budgeted EBITDA margin value - in model (-20,9%)
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Restaurant Sales
-5% in each year of projection
-3% in each year of projection
+3% in each year of projection
+5% in each year of projection
No change in impairment loss accounted
Belowtableshowsthevaluestodiscountrateandgrowthrateunderwhichrecoverableamountinthemodel would equal to carrying amount of tested unit (assuming remaining input in model unchanged).
Input value
Post tax discount rate
Growth rate
Applied in model
6.70%
1.50%
When carrying amount of CGU equals to recoverable amount
-
13.40%
Sensitivity analysis for Starbucks Germany
TheimpairmenttestperformedforStarbucksGermanybusinessresultedinrecognitionofimpairment losses.Thecarryingamountofthetestedunitincludedgoodwill,property,plantandequipment,intangible assets,rightofuseasstsaswellcorrespondingleaseliabilities.CarryingamountofCGUwascomparedwith recoverableamount,asaresultimpairmentlossofEUR26.4millionwasaccountedforgoodwill(partial goodwill impairment).
Additionally,theGrouprecognizedimpairmentlossesasaresultofimpairmenttestperformedfor restaurants in total value of EUR 6.5 million.
(all figures in EUR millions unless statedotherwise)
39
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
TheGroupperformedthesensitivityanalysisinvariousscenariosforStarbucksGermany.TheGroupbelieves reasonablechangeinkeyassumptionsisat10%levelofeachinputvalueandbetween3%and5%changein salesrevenuesvalue(foreachyearofprojection).Thebelowtablepresentspossiblechangeinimpairment losstobeaccountedifrespectiveinputdatawereadjustedbyrespectivepercentage,assumingremaining parameters remain stable (negative values represents potential higher impairment loss).
Input/ change in input
Potential change in impairment loss (in m EUR)
Discount rate - tested in model (post-tax discount rate (5.0%))
-10% of base value
12.7
-5% of base value
5.8
+5% of base value
(4.9)
+10% of base value
(9.0)
Growth rate for residual value - tested in model (1.9%)
-10% of base value
(3.4)
-5% of base value
(1.8)
+5% of base value
1.9
+10% of base value
3.9
Weighted average budgeted EBITDA margin value - tested in model (2.6%)
-10% of base value
(21.2)
-5% of base value
(10.6)
+5% of base value
10.6
+10% of base value
21.1
Restaurant Sales
-5% in each year of projection
(4.4)
-3% in each year of projection
(2.6)
+3% in each year of projection
2.6
+5% in each year of projection
4.4
Belowtableshowsthevaluestodiscountrateandgrowthrateunderwhichrecoverableamountinthemodel would equal to carrying amount of tested unit.
Discount 
Post tax discount rate
Growth rate
Applied in model
5.0%
1.90%
When carrying amount of CGU equals to recoverable amount
4.10%
2.9%
•Comparativeinformationforthegoodwillimpairmenttestsperformedduringyearended
31 December 2019.
The main input assumptions used in test are as follows:
2019
Post-tax 
discount rate 
Implied 
pre-tax discount rate
Growth rate for residual value 
Weighted average budgeted EBITDA margin
Czechia - KFC
5.22%
5.85%
2.50%
21.1%
Hungary - KFC
6.69%
7.12%
2.20%
19.9%
Russia – KFC
9.55%
11.36%
1.85%
14.4%
Spain – KFC and TAG
4.88%
5.95%
1.59%
20.4%
Spain – Bacoa 
4.88%
5.87%
1.59%
8.2%
China – BF
6.33%
7.59%
2.50%
12.5%
Romania – SBX
8.15%
9.15%
2.50%
21.9%
Germany – KFC
3.33%
4.18%
1.17%
2.0%
Germany – Starbucks
3.33%
4.19%
1.17%
6.5%
France – KFC
3.81%
4.72%
1.43%
8.1%
France – PH
3.81%
3.81%
1.43%
(6.1%)
Sushi Shop (all markets)
3.81%
4.71%
1.43%
11.2%
Test results in 2019
BasedontheimpairmenttestpreparedtheimpairmentwasrecognizedinfollowinggroupofCGU:PHFrance 
(all figures in EUR millions unless statedotherwise)
40
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
andKFCGermany.Inallremainingteststherecoverableamountexceedsthecarryingamountofthetested group of CGUs.
Results of the sensitivity analysis for businesses were no impairment of goodwill was needed:
Basedonthesensitivityanalysisperformedareasonablypossiblechangeinanyofthekeyassumptionsused wouldnotleadtorecognitionofimpairmentlossesi.e.carryingamountwouldnotexceedtherecoverable amount.
Results of the impairment tests and sensitivity analysis for businesses impairment of goodwill was recognized:
Sensitivity analysis for PH France
GrouprecognizedimpairmentoftotalgoodwillbalanceintheamountofEUR8.8million.Additional impairmentlossesrecognizedasaresultofimpairmenttestsperformedamountedEUR8.2millionandwere recognizedforintangibleassets,property,plantandequipmentandrightofuseassets.Totalvalueof impairment recognized for PH France amounted EUR 17.0 million.
TheGroupperformedthesensitivityanalysisinvariousscenariosforPHFrance.Groupbelievesreasonable changeinkeyassumptionsisat10%levelofeachinputvalueandbetween3%and5%changeinsales revenuesvalue(foreachyearofprojection).Thebelowtablepresentsifanychangeinimpairmentlosswould beaccountedifrespectiveinputdatawerechangesbytestedvalue,assumingremainingparametersremain stable. 
Input/ change in input
Possible change in impairment loss
Discount rate - in model (post-tax discount rate (3.81%))
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Growth rate for residual value - in model (1.43%)
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Weighted average budgeted EBITDA margin value - in model (-6.07%)
-10% of base value
-5% of base value
+5% of base value
+10% of base value
No change in impairment loss accounted
Restaurant Sales
-5% in each year of projection
-3% in each year of projection
+3% in each year of projection
+5% in each year of projection
No change in impairment loss accounted
Belowtableshowsthevaluestodiscountrateandgrowthrateunderwhichrecoverableamountinthemodel would equal to carrying amount of tested unit (assuming remaining input in model unchanged).
Input value
Discount rate
Growth rate
Applied in model
3.81%
1.43%
When carrying amount of CGU equals to recoverable amount
0.29%
4.87%
Sensitivity analysis for KFC Germany
TheimpairmentlossofEUR4.6millionwasaccountedforgoodwillaswellasEUR1.9millionimpairmentloss wasrecognizedforpropertyandrighttouseassets.AdditionallyGrouprecognizedimpairmentlossesasa result of impairment test performed for restaurants in total value of EUR 1.6 million.
(all figures in EUR millions unless statedotherwise)
41
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
TheGroupperformedthesensitivityanalysisinvariousscenariosforKFCGermany.Groupbelieves reasonablechangeinkeyassumptionsisat10%levelofeachinputvalueandbetween3%and5%changein salesrevenuesvalue(foreachyearofprojection).Thebelowtablepresentspossible changeinimpairment losstobeaccountedifrespectiveinputdatawerechangesbytestedvalue,assumingremainingparameters remain stable (negative values represents potential higher impairment loss).
Input/ change in input
Potential change in impairment loss
Discount rate - tested in model (post-tax discount rate (3,33%))
-10% of base value
4.8
-5% of base value
2.6
+5% of base value
(2.2)
+10% of base value
(4.2)
Growth rate for residual value - tested in model (1,17%)
-10% of base value
(1.6)
-5% of base value
(0.8)
+5% of base value
0.8
+10% of base value
1.7
Weighted average budgeted EBITDA margin value - tested in model (1,97%)
-10% of base value
(11.4)
-5% of base value
(5.7)
+5% of base value
4.8
+10% of base value
4.8
Restaurant Sales
-5% in each year of projection
(2.4)
-3% in each year of projection
(1.4)
+3% in each year of projection
1.4
+5% in each year of projection
2.4
Belowtableshowsthevaluestodiscountrateandgrowthrateunderwhichrecoverableamountinthemodel would equal to carrying amount of tested unit.
Discount 
Discount rate
Growth rate
Applied in model
3.33%
1.17%
When carrying amount of CGU equals to recoverable amount
3.04%
1.47%
19.Financial assets measured at fair value
Financialassetsmeasuredatfairvalueasof31December2019comprisedtheequityinvestmentin Glovoapp23,S.L.(“Glovo”),basedinBarcelona,Spain.Duringtheyearended31December2020therewere no material changes in fair measurement of Glovo’s stake.
InOctober2019AmResttransferred100%ofsharesinPizzaPortaltoGlovo.Salepricewasacombinationof cashpaymentofuptoEUR20millionandnewlyissuedsharesofGlovo.Cashconsideration,inlinewiththe agreement,werepaidtotheGroupinJanuary2020andpresentedasProceedsfromthesaleofthebusiness in consolidated statement of cash flows.
InOctober2020,theGrouphasreachedanagreementwithDeliveryHeroforthetransferofits7.5%stake (non-diluted)inGlovoforanaggregateamountofEUR76.2m(thesameastheaccountingvalue).The finalizationtookplaceinDecember2020andresultedincashinflowofEUR75.5m,presentedasProceeds from the sale of financial assets measured at fair value in consolidated statement of cash flows.
Consequently,asof31December2020theGroupdoesnotpresentfinancialassetsmeasuredatfairvalue in the consolidated statement of financial position.
20.Other non-current assets
As at 31 December 2020 and 2019 the balances of other non-current assets were as follows: 
(all figures in EUR millions unless statedotherwise)
42
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
31 December 2020
31 December 2019
Deposits for rentals
21.7
20.6
Prepaid  services
0.1
3.0
Other
1.1
1.5
22.9
25.1
21.Inventories
Asof31December2020and2019,inventoriescovermainlyfoodandpackagingusedintherestaurants, finishedgoodsandworkinprogresspreparedbycentralkitchenforsalebyLaTagliatellarestaurants. DuetothenatureofitsbusinessandapplicableGroupstandards,allinventoriesaretreatedasmaterials. Inventories are presented at net value including write-downs.
22.Trade and other receivables
As of 31 December 2020 and 2019 the balances of trade and other receivables were as follows:
31 December 2020
31 December 2019
Trade receivables from non-related entities
34.0
37.7
Other tax receivables
17.2
39.4
Credit cards, coupons and food aggregators receivables
13.4
5.9
Investment receivables (note 19)
-
20.0
Loans and borrowings
1.3
1.4
Government grants
5.1
-
Other
1.6
8.3
Allowances for receivables (note 37)
(12.2)
(8.1)
60.4
104.6
InformationabouttheimpairmentoftradereceivablesandtheGroup’sexposuretocreditrisk,foreign currency risk and interest rate risk can be found in note 37.
23.Other current assets
Asat31December2020and2019thebalancesofothercurrentassetsconsistedmainlyofprepaymentsfor utilities, marketing and other services.
24.Cash and cash equivalents
Cashandcashequivalentsasof31December2020and31December2019arepresentedinthetablebelow:
31 December 2020
31 December 2019
Cash at bank
198.4
93.0
Cash in hand
6.4
13.2
204.8
106.2
Reconciliationofworkingcapitalchangesasat31December2020and31December2019ispresentedinthe table below:
2020
Balance sheet change
Change  from acquisition
Change in investment receivables (note 19)
Change in investment liabilities
Exchange differences
Working capital changes
Change in trade and other receivables
44.2
-
(20.0)
-
(3.9)
20.3
Change in inventories
3.4
-
-
-
(1.2)
2.2
Change in other assets
8.9
-
-
-
(2.2)
6.7
Change in payables 
(46.0)
-
-
16.6
4.9
(24.5)
(all figures in EUR millions unless statedotherwise)
43
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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and other liabilities
Change in other provisions and employee benefits
8.9
-
 -
- 
-
8.9
2019
Balance sheet change
Change  from acquisition
Adoption of   
IFRS 16
Loss of control Pizza Portal
Change in investment liabilities
Exchange differences
Working capital changes
Change in trade and other receivables
(49.1)
-
-
20.9
-
(0.5)
(28.7)
Change in inventories
(4.2)
-
-
-
-
0.3
(3.9)
Change in other assets
17.7
(10.0)
(9.0)
-
-
(0.4)
(1.7)
Change in payables and other liabilities
18.7
18.0
-
1.8
(4.7)
(1.1)
32.7
Change in other provisions and employee benefits
6.2
-
0.2
 -
- 
(0.1)
6.3
25.Equity
Share capital
Sharecapitalconsistsofordinaryshares.Allsharesissuedaresubscribedandfullypaid.Theparvalueof each share is 0.1 EUR. 
There were no changes in share capital of the Company in year 2020.
As of 31 December 2020 and as at 31 December 2019 the Company has 219 554 183 shares issued.  
HoldersofordinarysharesareauthorizedtoreceivedividendsandhavevotingrightsattheGroup’sGeneral Shareholders’ Meetings proportionate to their holdings.
Therearenosharescommittedtobeissuedunderoptions,employeeshareschemesandcontractsforthe sale of shares.
Changes in the number of shares are also disclosed in note 28 Earnings per share.
TothebestofAmRest’sknowledgeasat31December2020AmRestHoldingshadthefollowingshareholder structure:
Shareholder
Number of shares and votes at the Shareholders’ meeting
% of shares and votes at the Shareholders’ meeting
FCapital Dutch B. V.*
147 203 760
67.05%
Nationale-Nederlanden OFE 
9 358 214
4.26%
Artal International S.C.A.
11 366 102
5.18%
Aviva OFE
6 843 700
3.12%
Other Shareholders
44 782 407
20.40%
*FCapitalDutchB.V.isthesoleshareholderofFCapitalLux(holdingdirectly56509547AmRestshares)andthesubsidiary ofFinaccessCapital,S.A.deC.V.GrupoFinaccessSAPIdeCVisthedirectmajorityshareholderofFinaccessCapital,S.A.de C.V.andasubsidiaryofGrupoFar-Luca,S.A.deC.V.ThedirectmajorityshareholderofGrupoFar-Luca,S.A.deC.V.,Mr. Carlos Fernández González, is a member of AmRest’s Board of Directors. 
(all figures in EUR millions unless statedotherwise)
44
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Reserves
The structure of Reserves is as follows:
2020
 Share premium
Employee options unexercised
Employee optionsexercised
Treasury shares
Hedges valuation
Transactions with NCI 
Total Reserves
As at 1 January
236.3
13.9
(39.0)
(7.5)
0.9
(26.3)
178.3
Net investment hedges
-
-
-
-
(10.9)
-
(10.9)
Income tax related to net investment hedges
- 
-
-
-
1.8 
-
1.8
Total comprehensive income
-
-
-
-
(9.1)
-
(9.1)
Purchases of treasury shares
-
-
-
-
-
-
-
Share based payments
Value of disposed treasury shares
-
-
(1.0)
1.0
-
-
-
Employee stock option plan – value of employee benefits exercised in the period
-
-
0.1
-
-
-
0.1
Employee stock option plan – proceeds from employees for transferred shares
-
-
0.1
-
-
-
0.1
Employee stock option plan – reclassification of exercised options
-
(0.7)
0.7
-
-
-
-
Employee stock option plan – change in unexercised options 
-
2.9
-
-
-
-
2.9
Change of deferred tax related to unexercised employee benefits
-
(2.2)
-
-
-
-
(2.2)
Total share based payments
-
-
(0.1)
1.0
-
-
0.9
Total distributions and contributions
-
-
(0.1)
1.0
-
-
0.9
As at 31 December
236.3
13.9
(39.1)
(6.5)
(8.2)
(26.3)
170.1
(all figures in EUR millions unless statedotherwise)
45
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
2019
 Share premium
Payments in shares
Employee options
Treasury shares
Hedges valuation
Transactions with NCI 
Total Reserves
As at 1 January
236.3
13.0
(6.3)
(15.2)
(0.5)
(21.2)
206.1
Net investment hedges
-
-
-
-
1.7
-
1.7
Income tax related to net investment hedges
- 
-
-
-
(0.3) 
-
(0.3)
Total comprehensive income
-
-
-
-
1.4
-
1.4
Transaction with non-controlling interests
-
-
-
-
-
(5.1)
(5.1)
Total transactions with non-controlling interests
-
-
-
-
-
(5.1)
(5.1)
Deferred payment in shares
-
(13.0)
-
-
-
-
(13.0)
Purchases of treasury shares
-
-
-
(0.9)
-
-
(0.9)
Share based payments
-
Value of disposed treasury shares
-
-
(8.6)
8.6
-
-
-
Employee stock option plan – value of employee benefits exercised in the period
-
-
(17.4)
-
-
-
(17.4)
Employee stock option plan – proceeds from employees for transferred shares
-
-
0.9
-
-
-
0.9
Employee stock option plan – change in unexercised options 
-
-
6.6
-
-
-
6.6
Change of deferred tax related to unexercised employee benefits
-
-
(0.3)
-
-
-
(0.3)
Total share based payments
-
-
(18.8)
8.6
-
-
(10.2)
Total distributions and contributions
-
(13.0)
(18.8)
7.7
-
-
(24.1)
As at 31 December
236.3
-
(25.1)
(7.5)
0.9
(26.3)
178.3
(all figures in EUR millions unless statedotherwise)
46
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Share premium
Thisitemreflectsthesurplusoverthenominalvalueofthesharecapitalincreaseandadditional contributions to equity without issue of shares made by shareholders prior to becoming a public entity.
There were no transactions within share premium in 2020.
Payments in shares
ThisitemreflectstheimpactofpaymentsinafixednumberofsharesrelatedtoSushiShopGroupacquisition. ThetransactionwassettledinHY2019.Thefinalsettlementwasre-agreedtobemadeincash.TheGroup reclassifiedthebalancefromequitytofinancialliabilitiesandrepaidthebalanceinJune2019,asagreedin settlement. There were no such transactions in 2020.
Treasury shares
Asat31December2020theGrouphad623461treasurysharesforatotalpurchasevalueofEUR6.5million, presented as treasury shares within “Reserves” under equity.
Transactions with NCI
This item reflects the impact of accounting for transactions with non-controlling interests (NCI).
The following key transactions were recognised in 2020:
Transactions with  NCI
Non-controlling interest
Total Equity
Dividends for non-controlling shareholders
-
(0.8)
(0.8)
Total transactions with non-controlling interests
-
(0.8)
(0.8)
The following key transactions were recognised in 2019:
Transactions with  NCI
Non-controlling interest
Total Equity
Acquisition of non-controlling interests of Pizza Portal
(4.8)
(0.5)
(5.3)
Acquisition of non-controlling interests in Sushi Shop Group 
(0.3)
(0.1)
(0.4)
Dividends for non-controlling shareholders
-
(1.4)
(1.4)
Total transactions with non-controlling interests
(5.1)
(2.0)
(7.1)
Hedges valuation 
TheGroupisexposedtoforeigncurrencyriskassociatedwiththeinvestmentinitsforeignsubsidiaries,which is managed by applying net hedge investment strategies.
In2018AmRestHoldingsassigneditsPLN280millionexternalborrowingasa hedginginstrumentinanet hedgeforitsPolishsubsidiaries.Followingscheduleddebtamorisationrepayment,thenetinvestmenthedge has been decreased to PLN  252 million from the end of September 2020.
AmRestSp.zo.o.,aPolishsubsidiary,withPLNasfunctionalcurrency,isaborrowerofexternalEURfinancing. AbankloanofEUR220millionhasbeenhedgingthenetinvestmentinitsEURsubsidiariesin2019and through30September2020.Fromthereon,followingamorisationrepayment,thenetinvestmenthedgehas beendecreasedtoEUR198million.FollowingachangeinpresentationcurrencyoftheGroupfromPLNto EUR,AmRestSp.zo.o.remainsexposedtotheforeigncurrencyriskbetweenthefunctionalcurrencyofits netinvestmentinitsEURinvestmentsanditsownfunctionalcurrency(PLN).Thesedifferentfunctional currenciescreateagenuineeconomicexposuretochangesinfairvaluesintheconsolidatedfinancial statements of the Group.
Forallnetinvestmenthedges,exchangegainsorlossesarisingfromthetranslationofliabilitiesthatare hedgingnetinvestmentsarechargedtoequityinordertooffsetgainsorlossesontranslationofthenet investment in subsidiaries. 
During the year ended 31 December 2020 hedges were fully effective.
(all figures in EUR millions unless statedotherwise)
47
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Asat31December2020theaccumulatedvalueofcurrencyrevaluationrecognisedinreservecapital (resultingfromnetinvestmenthedges)amountedtoEUR10.9million,anddeferredtaxconcerningthis revaluation EUR 1.8 million.
Translation reserves 
Thebalanceoftranslationreservesdependsonthechangesintheforeignexchangerates.Thisparameteris out of control of Group. 
Totalchangeintranslationreservesinyear2020amountedtoEUR(19.2)million.Themostsignificantimpact onthatbalancehadachangeinRussianrubletoEUR(20.5)million,PolishzlotytoEUR8.6million,Hungarian forinttoEUR(5.6)millionandCzechcrowntoEUR(1.6)million.Totalchangeintranslationreservesinyear 2019amountedtoEUR9.2million.ThemostsignificantimpactonthatbalancehadachangeinRussianruble to EUR 10.9 million and Polish zloty to EUR (1.3) million.
Non-controlling interest
Key elements of non-controlling interests are presented in the table below:
31 December 2020
31 December 2019
AmRest Coffee Sp. z o.o.
(0.1)
1.2
SCM Sp. z o.o.
2.5
1.7
AmRest Coffee s.r.o.
3.3
3.8
AmRest Kávézó Kft
0.2
0.9
AmRest d.o.o.
0.6
1.0
SCM s.r.o.
0.6
0.6
Sushi Shop Group
(0.2)
0.3
Non-controlling interests
6.9
9.5
26.Dividends paid and received
IntheperiodcoveredbytheseconsolidatedfinancialstatementstheGrouphaspaidadividendtonon-controlling interest of SCM sp. z o.o. amounting to EUR 0.8 million (PLN 2.6 million).
(all figures in EUR millions unless statedotherwise)
48
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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27.Non-controlling interests
At 31 December 2020 and 31 December 2019 the summarised financial information for each subsidiary that has non-controlling interests is as follows: 
Summarised balance sheet
31 December 2020
AmRest Coffee s.r.o.
AmRest Kávézó Kft
AmRest Coffee Sp. z o. o.
SCM Sp. z o.o.
SCM s.r.o.
AmRest d.o.o.
Sushi Shop Group
Current assets
4.9
2.1
(1.8)
6.5
2.7
0.7
1.0
Liabilities
(7.6)
(5.1)
(9.1)
(2.5)
(1.9)
(3.7)
(1.2)
Total current net assets
(2.7)
(3.0)
(10.9)
4.0
0.8
(3.0)
(0.2)
Non-current assets
40.5
16.4
26.8
0.5
0.1
7.5
1.7
Non-current liabilities 
(19.6)
(12.4)
(15.6)
(0.1)
-
(3.0)
-
Total non-current net assets
20.9
4.0
11.3
0.4
0.1
4.5
1.7
Net assets
18.2
1.0
0.3
4.4
0.9
1.5
1.5
31 December 2019
AmRest Coffee s.r.o.
AmRest Kávézó Kft
AmRest Coffee Sp. z o.o.
SCM Sp. z o.o.
SCM s.r.o.
AmRest d.o.o.
Sushi Shop Group
Current assets
13.2
2.4
1.5
5.4
2.3
1.1
1.1
Liabilities
(8.6)
(7.0)
(10.0)
(2.8)
(1.5)
(3.0)
(0.6)
Total current net assets
4.6
(4.6)
(8.5)
2.6
0.8
(1.9)
0.5
Non-current assets
36.5
22.2
34.0
0.7
0.1
6.3
1.0
Non-current liabilities 
(20.3)
(12.6)
(18.3)
(0.4)
-
(2.0)
-
Total non-current net assets
16.2
9.6
15.7
0.3
0.1
4.3
1.0
Net assets
20.8
5.0
7.2
2.9
0.9
2.4
1.5
Summarised income statement
(all figures in EUR millions unless statedotherwise)
49
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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year ended
31 December 2020
AmRest Coffee s.r.o.
AmRest Kávézó Kft
AmRest Coffee Sp. z o.o.
SCM Sp. z o.o.
Restaurant Partner Polska Sp. z o.o.*
SCM s.r.o.
AmRest d.o.o.
Sushi Shop Group
Total sales
18.5
10.2
18.9
15.6
-
10.1
6.5
7.2
Profit before tax
(2.1)
(3.7)
(8.1)
3.7
-
0.1
(1.1)
(1.5)
Income tax expense/income
0.2
-
0.4
(0.8)
-
(0.2)
0.2
-
Profit/loss for the period
(1.9)
(3.7)
(7.7)
2.9
-
(0.1)
(0.9)
(1.4)
Profit/loss for the period allocated to NCI
(0.3)
(0.7)
(1.4)
1.4
-
-
(0.4)
(0.4)
year ended
31 December 2019
AmRest Coffee s.r.o.
AmRest Kávézó Kft
AmRest Coffee Sp. z o.o.
SCM Sp. z o.o.
Restaurant Partner Polska Sp. z o.o. *
SCM s.r.o.
AmRest d.o.o.
Sushi Shop Group
Total sales
32.7
16.4
31.5
17.2
0.8
9.4
6.6
8.9
Profit before tax
4.2
0.6
(3.5)
2.2
(0.8)
0.2
(0.2)
(0.1)
Income tax expense/income
(1.1)
(0.3)
0.3
(0.6)
-
-
-
1.0
Profit/loss for the period
3.1
0.3
(3.2)
1.6
(0.8)
0.2
(0.2)
(0.2)
Profit/loss for the period allocated to NCI
0.8
0.1
(0.5)
1.5
(0.2)
0.3
-
(0.2)
* On 13 March 2019 AmRest Holding SE has acquired 49% of shares of Restaurant Partner Polska Sp. z o.o. On this day AmRest Holdings SE has became sole shareholder of Restaurant Partner Polska Sp. z o.o. Summarised income statement of Restaurant Partner Polska Sp. z o.o. is presented till acquisition of non-controlling interests shares i.e. till 13 March 2019.
Therearenosignificantrestrictionsonthepossibilityofaccesstotheassetsortheiruseandsettlementofobligationsforthesubsidiarieshavinganon-controlling interest.
(all figures in EUR millions unless statedotherwise)
50
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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28.Earnings per share 
As at 31 December 2020 and 2019 the Company has 219 554 183 shares issued.
Table below presents calculation of basic and diluted earnings per ordinary share for the year 2020 and 2019.
BasicEPSiscalculatedbydividingnetprofitattributabletoshareholdersoftheparentbytheweightedaverage numberofordinarysharesoutstandingduringtheyear(includingtreasuryshares,vestedoptionsundershare based programs, number of shares to be transferred as a consideration for acquisition).
DilutedEPSiscalculatedbydividingnetprofitattributabletoshareholdersoftheparentbytheweightedaverage numberofordinarysharesoutstandingduringtheyear,adjustedbytheweightedaveragenumberofordinary sharesthatwouldbeissuedonconversionofalldilutivepotentialordinarysharesintoordinaryshares(unvested options for open share based payments programs).
31 December 2019
EPS calculation with the effect of share split
31 December 2020
Net profit attributable to shareholders of the parent (EUR millions)
(182.0)
65.1
Weighted average number of ordinary shares for basic EPS (in thousands of shares)
219 169
220 567
WeightedaveragenumberofordinarysharesfordilutedEPS(inthousandsofshares)
219 346
221 480
Basic earnings per ordinary share (EUR)
(0.83)
0.30
Diluted earnings per ordinary share (EUR)
(0.83)
0.29
Reconciliation of weighted-average number of ordinary shares for basic EPS:
31 December 2019
Weighted-average number of ordinary shares 
in thousands of shares
31 December 2020
Shares issued at the beginning of the period
219 554
219 554
Effect of shares issued
-
-
Effect of treasury shares held
(640)
(1 042)
Effect of shares subject to Sushi Shop payment
-
572
Effect of share options vested
255
1 483
Weighted average number of ordinary shares for basic EPS
219 169
220 567
Reconciliation of weighted-average number of ordinary shares for diluted EPS:
31 December 2019
Weighted-average number of ordinary shares for diluted EPS
in thousands of shares
31 December 2020
Weighted-average number of ordinary shares for basic EPS
219 169
220 567
Effect of share options unvested
177
913
Weighted average number of ordinary shares for diluted EPS
219 346
221 480
At31December2020,16917thousandofoptionswereexcludedfromthedilutedweighted-averagenumberof ordinarysharescalculationbecausetheireffectwouldhavebeenanti-dilutive.At31December2019,therewere 7 475 thousand of options with anti-dilutive effect.
29.Borrowings
Long-term
31 December 2020
31 December 2019
Bank loans
599.0
555.0
SSD
77.5
101.0
676.5
656.0
Short-term
31 December 2020
31 December 2019
Bank loans
69.4
62.8
SSD
24.9
1.3
94.3
64.1
(all figures in EUR millions unless statedotherwise)
51
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Bank loans and bonds
Currency
Loans/Bonds
Effective interest rate 
31 December 2020
31 December 2019 
PLN
Syndicated bank loan
3M WIBOR+margin
116.2
135.8
EUR
Syndicated bank loan
3M EURIBOR/fixed +margin
493.3
476.3
EUR
Schuldscheinedarlehen Bonds 
6M EURIBOR/fixed +margin
102.4
102.3
EUR
Bank loans France
fixed
30.0
-
EUR
Bank loans Spain
fixed
26.2
-
RUB
Bank loan – Russia
fixed
2.7
-
EUR
Bank loans Germany 
EURIBOR+margin
-
5.1
CNY
Bank loan – China
Fixed
-
0.6
770.8
720.1
Asat31December2020syndicatedbankfinancingenteredintoin2017,withfurtheramendments,accountsfor the majority of AmRest debt. Details of bank financing are as follows: 
a.Signing date: 5 October 2017, 
b.Final repayment date: 30 September 2022, 
c.JointBorrowers:AmRestHoldingsSE,AmRestSp.zo.o.andAmRests.r.o.(the“Borrowers”;AmRestSp. z o.o. and AmRest s.r.o. are fully owned by AmRest Holdings SE), 
d.Lenders:BankPolskaKasaOpiekiS.A.,PowszechnaKasaOszczędnościBankPolskiS.A.,INGBankŚląski Polska S.A. and Česká spořitelna, a.s. 
The available tranches following scheduled repayment in September 2020:
Tranche(*)
Maximum amount (million)
Date added
Purpose
A
EUR 225
October 2017
B
PLN 270 
October 2017
C (fully repaid in Q1 2019)
CZK 0 
October 2017
D
PLN 450
October 2017
Refinancing of bank debt, general corporate purposes
E
PLN 252  
June 2018
Refinancing of Polish bonds
F
EUR 171 
October 2018
M&A, general corporate purposes
* Approximate total amount: EUR 609m
•Interestrates:Approximatelyhalfoftheavailablefacilityisprovidedatvariableinterestrates(3M Euribor/Wibor increased by a margin) and parts of tranches A and F are provided at a fixed rate.
•Securities:submissionstoexecutionfromtheBorrowers,guaranteesfromGroupcompanies,pledgeon shares of Sushi Shop Group. Additional information presented in note 30.
•Otherinformation:AmRestisrequiredtomaintaincertainratiosatagreedlevel,inparticular,net debt/adjustedconsolidatedEBITDAistobeheldbelow3.5andconsolidatedEBITDA/interestchargeis tostayabove3.5.BothratiosarecalculatedwithouttheeffectofIFRS16.EBITDAasdefinedinfinance agreementsforthepurposeofcalculatingcovenantswasEUR45.6millionfortheperiodof12months ended 31 December 2020.
•In2020theGroupbreachedleveragecovenantinbankfinancingforQ1andQ2andreceivedwaivers whichweresignedon14Mayand1September,respectively,priortodatesofissuingQ1andsemiannual financial statements. Q3 breach of net debt ratio was granted prior to quarter end, on 30 September.
•Priorto2020-year-endAmResthasobtainedfromitsfinancingbanksandmajorityofbondholders (Schuldschein)waiverstothecompliancewithcertaincovenantsrelatedtotheGroup’sleverageand interestcoverageratiosforthefourthquarterof2020andthefirst,secondandthirdquartersof2021. Duringsaidperiods,thosecovenantshavebeenreplacedbyacommitmenttomaintainaminimumlevel ofliquidity(EUR80million,whichisloweredtoEUR50millionforthethirdandfourthquartersof2021).  
•TheGroupmaintainsclosecommunicationwithitsfinancingbanks.Allscheduledrepaymentswere made in 2020.
(all figures in EUR millions unless statedotherwise)
52
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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InApril2017AmRestenteredtheSchuldscheinedarlehen(“SSD”–debtinstrumentunderGermanlaw)market  todiversifyfinancingsourcesandinterestratestructureofdebtandhasexecutedseveralissuessincethen.The table below presents all SSD issues and their maturities:
Issue date
Amount (EUR million)
Interest rate
Maturity date
Amount expected to be
repaid in 2021 (EUR million)
Purpose
7 April 2017
17.0
Fixed
7 April 2022
3.0
7 April 2017
9.0
Fixed
5 April 2024
8.0
3 July 2017
45.5
Fixed
1 July 2022
12.5
3 July 2017
20.0
Fixed
3 July 2024
-
3 July 2017
9.5
Variable
3 July 2024
-
Refinancing, general corporate purposes
The role of the Lead Arranger and Paying Agent on all issues was entrusted to Erste Group Bank AG.
As at 31 December 2020, payables concerning SSD issued amounted to EUR 102.4 million.
AmRestisrequiredtomaintaincertainpreIFRS16ratiosatagreedlevels:netdebt/EBITDAistobeheldbelow 3.5xandEBITDA/interestchargeistostayabove3.5.Asthesecovenantswerenotmetat2020YE,thecompany expectsEUR23.5millionoutofEUR101millionwillberepaidin2021toSSDholderswhodidnotgrantthe covenant waivers.
State supported loans taken by the Group companies in 2020
Country
Entities
Effective interest rate 
State guarantee
Total amount granted
Available at YE
Maturity
Spain
Restauravia Food SL,
 Pastificio Food SL
Fixed
70%
45.0
18.8
3-5 years
France
Sushi Shop Restauration SAS, AmRest Opco SAS
Fixed
90%
30.0
-
Up to 5 years, tbd in March 2021
Russia
OOO AmRest
Fixed
85%
2.7
-
1 year
Czechia
SCM s.r.o
Pribor + Margin
90%
1.2
0.5
1 year
78.9
19.3
The maturity of long- and short-term loans as at 31 December 2020 and 2019 is presented in the note 37.
The Group has the following unused, awarded credit limits as at 31 December 2020 and 31 December 2019:
31 December 2020
31 December 2019
With floating interest rate
- expiring within one year (tranche A)
-
30.0
- expiring beyond one year (tranche D)
1.5
104.6
- Bank loans Spain
18.8
-
20.3
134.6
The table below presents the reconciliation of the debt:
2020
Bank loans
SSD
Total
As at 1 January
617.8
102.3
720.1
Payment
(80.9)
-
(80.9)
Loan taken/ new contracts
139.6
-
139.6
Accrued interests
18.2
2.2
20.4
Payment of interests
(17.3)
(2.1)
(19.4)
Exchange differences
(9.0)
-
(9.0)
As at 31 December
668.4
102.4
770.8
(all figures in EUR millions unless statedotherwise)
53
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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2019
Bank loans
SSD
Total
As at 1 January
559.5
102.3
661.8
Payment
(15.8)
-
(15.8)
Loan taken/ new contracts
71.6
-
71.6
Accrued interests
16.5
2.3
18.8
Payment of interests
(15.6)
(2.3)
(17.9)
Exchange differences
1.6
-
1.6
As at 31 December
617.8
102.3
720.1
30.Collateral on borrowings
TheBorrowers(AmRestHoldingSE,AmRestSp.zo.o.andAmRests.r.o.)arejointlyandseverallyresponsiblefor payingtheliabilitiesresultingfromcreditagreements.Groupcompanies–AmRestKaffeeSp.zo.o.,AmRest CoffeeDeutschlandSp.zo.o.&Co.KG,AmRestDESp.zo.o.&Co.KG,AmRestKFT,OOOAmRest,OOOChicken Yug, AmRest Coffee SRL, AmRest Tag S.L.U., Restauravia Food S.L.U., Pastificio Service S.L.U – granted sureties to thefinancingbanks.ThesecompaniesguaranteethattheBorrowerswilldischargetheirobligationsfollowing fromthecreditagreementuntiltheloanisrepaid,i.e.30September2022howevernotlaterthan5October2025. Additionally, pledge on shares of Sushi Shop Group has been established as security for the bank financing.
31.Employee benefits and share based payments 
TheGroupestablishedlong-termincentiveplansinordertobindaportionofmanagers’andexecutives’ remunerationwiththeGroup’smarketvalue.Duringyear2020,theGrouphadtheshare-basedpayment arrangementsaccordingtosixshareoptionplans.PartofoptionsinthePlan2isaccountedascash-settleddue totheavailabilityofcashexercisemethoduponthechoiceofanemployee.Allotheroptionsinthefollowing plans are equity-settled.
Plan 2 – Stock Option Plan 2005
Plan 2 was implemented in April 2005. Granting of the options finished in 2016. 
UptoNovember2014theexercisemethodwasinequityinstruments.InNovember2014,thethenexisting SupervisoryBoardoftheCompanyapprovedachangeofregulationsbyaddingnetcashsettlementofoption value(employeedecidesaboutsettlementmethod).Duetotheabovechanges,Plan2comprisedbothequity-settled options and cash-settled options. 
In2015achangeinregulationseliminatedapossibilityofoptionsettlementwithcashmethodforthegrants after8December 2015.Furthermore,agroupofemployeesmadeaunilateralstatementaboutresignationfrom thecashsettlementpossibilityinrelationtooptionalsograntedinpreviousperiods.Asaresultofthe modificationofsomeoptionsfromcash-settledtoequity-settled,in2017areclassificationinamountofEUR0.5 million was accounted from liabilities into equity. 
Plan 3 – Management Incentive Plan 2011
Grantingoftheoptionsfinishedin2014.TheSupervisoryBoardofGroup(thenexisting)wasentitledtodetermine theemployeesauthorizedtoparticipateinthePlanandthenumberofoptionsgrantedandthedatesfortheir granting.TheoptionexercisepricewasinprincipleequaltothemarketpriceoftheCompany’ssharesasatthe dateprecedingthedayofawardingtheoptionandthenincreasedby11%eachyear.Thevestingperiodwas3-5 years. All remaining options granted within the Plan 3 has been exercised during year 2019.
Plan 4 – Stock Option Plan 2017
InJanuary2017theGroupintroducedanewshare-basedStockOptionPlan.Thenumberofoptionsgranted, employeesawardedandgrantingdateswereinitiallydeterminedbythethenexistingManagementBoard (currentExecutiveTeam),howeverthenumberofoptionswaslimitedto750,000options.TheGrantingPeriod wassetbetween1January2017and31December2019.Theoptionexercisepricewillbeinprincipleequalto themarketpriceoftheCompany’ssharesasatthedateofgrantingtheoption,andthevestingperiodwillbe3 to 5 years. There are no cash settlement alternatives.
InDecember2018theBoardofDirectorsoftheCompany(whotookoverManagementBoardfacultyonthis matterfollowingthetransferofdomicileoftheCompanyfromPolandtoSpain)resolvedtoadjusttheshare-
(all figures in EUR millions unless statedotherwise)
54
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
basedplansoftheCompanysotheycanalsobeexecutedthroughtheSpanishStockExchanges,wherethe Company’s shares started trading on 21 November 2018.
Plan 5 – Management Incentive Plan 2017
InJanuary2017theGroupintroducedanewshare-basedManagementIncentivePlan,offeredtoselected employees.ThewholenumberofshareswhichwereattributedtotheoptionswasdeterminedbytheBoardof Directors,however,itmaynotexceed1,000,000shares.InaccordancewiththeprovisionsofthePlan,when requestedbymanagementtheBoardofDirectors,wasentitledtodeterminetheemployeesauthorizedto participateinthePlan,thenumberofoptionsgrantedandthedatesfortheirgrantingamongotherissues.The GrantingPeriodwassetbetween1January2017and31December2019.Theoptioninitialexercisepricewasin principleequaltothemarketpriceoftheCompany’ssharesasatthedateofFirstGrant.Theexercisepriceshall increaseon1st,2ndand3rdanniversaryby11%.Thevestingperiodlasts3to5years.Therearenocash settlement alternatives.
Plan 6 – Stock Option Plan 2020
In2020theGroupintroducedashare-basedStockOptionPlan,whichisanextensionoftheregulations introducedintheStockOptionPlan2017.Theplaniseffectiveforanadditionalperiodofoneyearexclusively duringthe2020financialyearundertheirexactsametermsandconditionswiththesoleexceptionoftheExercise Pricementionedinthetablebelow.Thenumberofoptionsgranted,employeesawardedandgrantingdates wereinitiallydeterminedbytheExecutiveTeam.In2020thenumberofoptionswaslimitedto3.6millionoptions. TheoptionexercisepricewillbeinprincipleequaltothemarketpriceoftheCompany’ssharesasatthedateof granting the option, and the vesting period will be 3 to 5 years. There are no cash settlement alternatives.
Plan 7 – Management Incentive Plan 2020
In2020theGroupintroducedashare-basedManagementIncentivePlan,offeredtoselectedemployees,which isanextensionoftheregulationsintroducedintheManagementIncentivePlan2017.Theplaniseffectiveforan additionalperiodofoneyearexclusivelyduringthe2020financialyearundertheirexactsametermsand conditionswiththesoleexceptionoftheExercisePricementionedinthetablebelow.Thewholenumberof shareswhichwereattributedtotheoptionswasdeterminedbytheBoardofDirectors.In2020thenumberof optionswaslimitedto4.65millionoptions.InaccordancewiththeprovisionsofthePlan,whenrequestedby managementtheBoardofDirectors,wasentitledtodeterminetheemployeesauthorizedtoparticipateinthe Plan,thenumberofoptionsgrantedandthedatesfortheirgrantingamongotherissues.Theoptioninitial exercisepricewasinprincipleequaltothemarketpriceoftheCompany’ssharesasatthedateofFirstGrant. Theexercisepriceshallincreaseon1st,2ndand3rdanniversaryby11%.Thevestingperiodlasts3to5years. There are no cash settlement alternatives.
The terms and conditions for the share options outstanding as at 31 December 2020 are presented in the table below:
Grant date
Terms and conditions for vesting of the options
The maximum term of options
Option exercise price in EUR
Method of settlement
Plan 2 - SOP
June 20, 2011
1.87
Equity or equity/cash*
April 30, 2012
1.68
Equity or equity/cash*
April 30, 2013
1.94
Equity or equity/cash*
April 30, 2014
1.96
Equity or equity/cash*
December 9, 2015
3.14
Equity or equity/cash*
April 30, 2016
1-5 years, 20% per annum
10 years
5.35
Equity
Plan 4 - SOP
May 30, 2017
8.14
Equity
January 1, 2018
9.66
Equity
April 30, 2018
10.91
Equity
August 6, 2018
10.46
Equity
October 1, 2018
10.63
Equity
December 10, 2018
9.40
Equity
April 30, 2019
3-5 years, 60% after 3rd year, 20% after 4th and 5th year
10 years 
9.62
Equity
Plan 5 - MIP
March 15, 2017
10.51
Equity
September 13, 2017
10.97
Equity
March 3, 2018
3-5 years, 33% p.a.
10 years
10.43 - 10.88
Equity
(all figures in EUR millions unless statedotherwise)
55
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Grant date
Terms and conditions for vesting of the options
The maximum term of options
Option exercise price in EUR
Method of settlement
October 1, 2018
14.54
Equity
March 26, 2019
10.23 - 14.49
Equity
May 13, 2019
12.10
Equity
Plan 6 – SOP
July 13, 2020
4.99
Equity
October 1, 2020
3-5 years, 60% after 3rd year, 20% after 4th and 5th year
10 years
5.78
Equity
Plan 7 - MIP
February 10, 2020
15.10
Equity
October 1, 2020
3-5 years, 33% p.a.
10 years
7.90
Equity
*Forsomeoptionsonlytheequitymethodisapplicable,assomeemployeescandecideuponthesettlementmethod,asdisclosedin Plan 2 description above.
Optionsvestwhenthetermsandconditionsrelatingtotheperiodofemploymentaremet.ThePlansdonot provide any additional market conditions for vesting of the options.
Inthetablebelowwepresentthenumberandweightedaverageoftheexerciseprices(WAEP)of,andmovements in, the options from all plans during the year ended 31 December 2020 and 2019:
Number of option 2020
WAEP in EUR (before indexation)
Plan 7
Plan 6
Plan 5
Plan 4
Plan 3
Plan 2
At the beginning of the period
8.52
-
-
5 400 000
6 988 850
-
1 150 266
Granted during the period
7.07
3 350 000
3 204 500
-
-
-
-
Exercised during the period
7.04
-
-
(166 666)
-
-
(159 554)
Forfeited during the period
10.15
-
-
(1 950 000)
(209 200)
-
(58 310)
Outstanding at the end of the period
8.68
3 350 000
3 204 500
3 283 334
6 779 650
-
932 402
 - including exercisable as at the end of the period
6.36
-
-
-
938 730
-
722 562
Number of option 2019
WAEP in EUR (before indexation)
Plan 7
Plan 6
Plan 5
Plan 4
Plan 3
Plan 2
At the beginning of the period
7.71
-
-
6 650 000
4 118 750
2 750 003
2 274 776
Granted during the period
9.23
-
-
1 450 000
3 440 800
-
-
Exercised during the period
1.98
-
-
-
(10 000)
(2 750 003)
(1 027 742)
Forfeited during the period
8.30
-
-
(2 700 000)
(560 700)
-
(96 768)
Outstanding at the end of the period
8.52
-
-
5 400 000
6 988 850
-
1 150 266
 - including exercisable as at the end of the period
3.59
-
-
-
499 168 
-
- 
TheweightedaveragesharepriceatthedatesofexerciseoftheoptionswasEUR6.98in2020andEUR9.83in 2019.
Theweightedaverageremainingcontractuallifefortheshareoptionsoutstandingasat31December2020was 8.20 years (2019: 8,21 years). 
Measurement
Thefairvalueoftheequityinstrumentshasbeenmeasuredusingnumericalmethodforsolvingdifferential equationsbyapproximatingthemwithdifferenceequations,calledfinitedifferencemethod.Thefairvalueofthe cash-settledoptionshasbeenmeasuredusingtheBlack-Scholesformula.Thefairvalueoftheoptionsasatthe grant date has been determined using the support of an external actuary.
(all figures in EUR millions unless statedotherwise)
56
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Thefairvalueoftheoptionsgrantedduringtheperiod,asatthegrantdate,amountedasdescribedbelow.It was determined on the basis of the following parameters:
Plan
Average fair value of option as at grant date
Average share price at the grant date 
Average exercise price
Expected volatility 
Expected term to exercise of options 
Expected dividend
Risk-free interest rate 
2020
Plan 6 (SOP)
EUR 0.93
EUR 4.14
EUR 5.75
35%
5 years
-
2%
Plan 7 (MIP)
EUR 0.63
EUR 4.50
EUR 8.30
35%
5 years
-
2%
2019
Plan 4 (SOP)
EUR 2.90
EUR 9.62
EUR 9.62
30%
5 years
-
2%
Plan 5 (MIP)
EUR 2.83
EUR 10.36
EUR 11.37
30%
5 years
-
2%
Theexpectedlifeoftheoptionsisbasedonhistoricaldataandcurrentexpectationsandisnotnecessarily indicativeofexercisepatternsthatmayoccur.Theexpectedvolatilityreflectstheassumptionthatthehistorical volatilityoveraperiodsimilartothelifeoftheoptionsisindicativeoffuturetrends,whichmaynotnecessarily be the actual outcome. 
Share-based payments costs and liabilities
TheGrouprecognisesaccrualforequity-settledoptionsinreservecapital.Theamountsasat31December2020 and 31 December 2019 are presented in a table below:
31 December 2020
31 December 2019
Reserve capital - Plan 2
1.8
1.8
Reserve capital - Plan 4
8.3
5.0
Reserve capital - Plan 5
5.2
6.6
Reserve capital - Plan 6
0.1
-
Reserve capital - Plan 7
0.2
-
15.6
13.4
TheGrouprecognisesliabilityforcashsettledoptions.Theamountsasat31December2020and31 December 2019 are presented in a table below:
31 December 2020
31 December 2019
Liability for Plan 2
0.1
0.5
Other employee benefits liabilities
0.2
0.1
0.3
0.6
Thecostsrecognisedinconnectionwiththeplansrelatingtoincentiveprogramsfortheyearsended 31 December 2020 and 2019 respectively are presented below:
2020
2019
Employee stock option plan 2
0.1
1.4
Employee stock option plan 3
-
0.8
Employee stock option plan 4
3.4
3.0
Employee stock option plan 5
(1.2)
2.6
Employee stock option plan 6
0.1
-
Employee stock option plan 7
0.2
-
2.6
7.8
Pension, health care and other contributions 
Thecostsrecognisedinconnectionwiththeemployeebenefitscontributionsfortheyearsendingon 31 December 2020 and 31 December 2019 respectively are presented below:
2020
2019
Pension, health care contributions and other 
98.2
111.0
Apart from those specified above, there are no other liabilities and costs in respect of employee benefits.
(all figures in EUR millions unless statedotherwise)
57
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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32.Provisions 
Changes in the balance of provisions are presented in the table below:
2020
As at 
1 January
Increased during the year
Released during the year
Used during the year
F/X differences
As at
31 December
Asset retirement obligation
10.1
0.9
(0.2)
(1.1)
-
9.7
Provision for court and legal proceedings
3.7
3.5
(0.1)
(0.8)
(0.2)
6.1
Provision for tax risks
0.4
0.3
(0.4)
-
0.1
0.4
Franchise agreements related provision
8.0
5.0
-
(2.0)
-
11.0
Provision for other
0.6
4.2
-
-
-
4.8
Total
22.8
13.9
(0.7)
(3.9)
(0.1)
32.0
2019
As at 
1 January
Adoption of IFRS16
Increased during the year
Released during the year
Used during the year
F/X differences
As at
31 December
Onerous contracts
1.8
(1.8)
-
-
-
-
-
Asset retirement obligation
9.8
-
0.8
(0.3)
(0.1)
(0.1)
10.1
Provision for court and legal proceedings
2.2
-
2.2
(1.4)
-
0.7
3.7
Provision for tax risks
0.8
-
0.1
(0.5)
-
-
0.4
Franchise agreements related provision
-
-
8.0
-
-
-
8.0
Provision for other
0.9
-
(0.1)
(0.2)
0.6
Total
15.5
(1.8)
11.1
(2.3)
(0.1)
0.4
22.8
All provisions are treated as long-term liabilities.
Franchise agreements related provision
Asattheendofpreviousbalancesheetdate,theGrouprecognisedaprovisionforresettingmaster-franchise agreementsregardingPizzaHutsignedforthemarkets:France,CEE,Germany,andRussia(includingArmenia andAzerbaijan),outofwhichparthasbeenutilisedinthereporting period.Asatendofbalancesheetdate, GrouphasrecognisedfurtherprovisionsrelatedtofranchiseanddevelopmentagreementswithYUM!and subsidiaries of YUM!, Burger King Europe GmbH, Starbucks Coffee International, Inc. 
Provision for court and legal proceedings
Periodically,theGroupisinvolvedindisputesandcourtproceedingsresultingfromtheGroup’son-going operations.Aspresentedinthetableabove,asatthebalancesheet,theGrouprecognisedaprovisionforthe costsofcourtproceedingswhichreflectsthemostreliableestimateoftheprobablelossesexpectedasaresult of the said disputes and legal proceedings. 
Provision for tax liabilities
TheGroupoperatesinnumerousmarketswithdifferentandchangingtaxrulesandadditionallyrealisesits growthwithinnewinvestmentsandoftenhastodecidetocreateormodifythevalueoftaxliabilityprovision. Duringrecognitionormodificationofsuchprovisionsallavailableinformation,historicalexperience,comparison and best estimates are used.
Asset retirement obligation 
TheGrouprecognisedaprovisionforcostsoffutureassetrestorationsmainlyontheacquisitionofGermanand Frenchsubsidiaries.Theprovisionconsistsofexpectedcostsattheendofrentalagreement.Theprovisionwould be used for renovation work needed to restore rented properties, as required by rental agreements.
(all figures in EUR millions unless statedotherwise)
58
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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33.Tax risks and uncertain tax positions
Tax inspections in AmRest Sp. z o.o.
a.On28July2016ataxinspectionbeganinAmRestSp.zo.o.regardingVATreturnsfor2014.On 11September2017theCompanyreceivedthedecisionissuedbytheHeadoftheLowerSilesiaTaxOffice (“Head”),whichquestionedthecorrectnessoftheoutputVATsettlementforapartofoperationalsales revenues.TheHeadclaimedthetaxliabilityamountingtoPLN4.3million(EUR1.0million)andtheamount ofthereturnundulyreceivedofPLN10.2million(EUR2.3million).On22September2017theCompany submitted an appeal to the second instance (Tax Administration Chamber) referring to the above decision. 
On18February2019AmRestSp.zo.o.receivedtheinformationfromtheTaxAdministrationChamberthat theproceedingsaimedatannulmentofthefinaldecisionregardingVATreturnsfor2014issuedbyTax AdministrationChamberhasbeenopenedduetotheseverebreachoflawdonebytheChamberinthe decision.On25June2019AmRestSp.zo.o.receivedthenotificationthattheproceedingsrelatedtothe annulment of the final decision covering VAT for 2014 have been suspended.
Atthemomentofpublicationoftheseconsolidatedfinancialstatements,thedecisionrelatedtothe annulment of the final decision has not been issued. 
b.On15September2016ataxinspectionbeganinAmRestSp.zo.o.regardingVATreturnsfortheperiod January – September 2013.
On2October2017theCompanyreceivedthedecisionissuedbytheLesserPolandCustomsandTaxOffice inCracow(“Head”),whichquestionedthecorrectnessoftheoutputVATsettlementforapartofoperational salesrevenues.TheHeadclaimedinitsdecisionthetaxliabilityamountingtoPLN3.1million(EUR0.7 million) and the amount of the return unduly received of PLN 11.2 million (EUR 2.6 million). 
On16October2017theCompanysubmittedanappealtothesecondinstance(TaxAdministration Chamber)referringtotheabovedescribeddecision.Asaresultofthedecisionissuedon17January2018 bytheTaxAdministrationChamberwhichrevokedthedecisionoffirstinstanceandsubmitteditforfurther examination, another decision was issued by the Head, which the Company appealed on 15 June 2018.
On8February2019AmRestSp.zo.o.receivedthefinaldecisionissuedbyTaxAdministrationChamber, whichconfirmedthedecisionofthefirstinstance.Duetothefactthatthedecisionwasenforceablethe Companyhaseffectivelypaidthevalueofapprox.PLN4.2million(approx.EUR1.0million)asaprincipal amountoftaxliability(plusinterest).TheCompanydidnotagreewiththedecisionreceivedandon11March 2019filedthecomplainttotheLocalAdministrativeCourt.On22July2019thecourtoffirstinstanceruled infavouroftheCompanyandcancelledthedecisionsofthetaxoffice(firstandsecondinstance).Tax Administration Chamber appealed to Supreme Administrative Court.
On30July2020SupremeCourtannouncedapositivecourtverdictinregardstoVATsettlementsofAmRest Sp.zo.o.fortheyear2012andJanuary–September2013.Thecourtrejectedthecomplaintofthetax chamberagainsttheearlierverdictofthelocaladministrativecourt.Theverdictwasbasedonthestatute of limitations on the tax liability for these years.
c.On28September2016ataxinspectionbeganinAmRestSp.zo.o.onVATreturnsfor2012.On 11September2017theCompanyreceivedadecisionissuedbytheHeadoftheLesserPolandCustomsand theTaxOfficeinCracow(“Head”),whichquestionedthecorrectnessoftheoutputVATsettlementonapart ofoperationalsalesrevenues.TheHeadclaimedinitsdecisionunderestimatedoutputVATamountingto PLN 18.5 million (EUR 4.2 million).
On7November2017theCompanyreceivedthedecisionoftheHeadoftheLowerSilesiaTaxOfficeonthe basisofwhichtheabovedecisionoftheHeadoftheLesserPolandCustomsandTaxOfficebecame immediatelyenforceable.Asaresult,on7November2017theCompany’sbankaccountwasseizedinorder tocovertaxliabilitiesconsistingofaVATliabilityforJuly,AugustandSeptember2012amountingtoPLN1.3 million(EUR0.3million),undulyreceivedintheDecember2012VATreturn(forJuly2012)intheamountof PLN 0.5 million(EUR0.1million),interestaccruedintheamountofPLN0.8million(EUR 0.2 million)and enforcement costs in the amount of PLN 0.2 million (EUR 0.04 million).
On14November2017theCompanyappealedsaiddecisionandtheadministrativeactiontaken.On 12February2018theTaxAdministrationChamberissuedadecisionupholdingthedecisionofthefirst 
(all figures in EUR millions unless statedotherwise)
59
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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instanceconcerningtheexecution.On19March2018theCompanyappealedtotheLocalAdministrative Courtinthisrespectandon16August2018theCompanyreceivedthedecisionoftheCourtstatingthatthe complaint had been dismissed.
On12December2017theTaxAdministrationChamber(secondinstance)issuedthedecisionwhichrevoked thedecisionoffirstinstanceandsubmitteditforfurtherexamination.Thisalsoresultedinrevocationof executionproceedings.On29May2018anotherdecisionhasbeenissuedbytheHead(firstinstance)which the Company appealed on 15 June 2018.
On8February2019AmRestSp.zo.o.receivedthefinaldecisionissuedbyTaxAdministrationChamber regardingVATreturnsfor2012whichconfirmedthedecisionofthefirstinstance.Duetothefactthatthe decisionisenforceabletheCompanyhaseffectivelypaidthevalueof59pprox..PLN14.3million(59pprox.. EUR3.3million)asaprincipalamountoftaxliability(plusinterest).TheCompanydoesnotagreewiththe decisionreceivedandon11March2019filedthecomplainttotheLocalAdministrativeCourt.On22July 2019thecourtoffirstinstanceruledinfavouroftheCompanyandcancelledthedecisionsofthetaxoffice (first and second instance). Tax Administration Chamber appealed to Supreme Administrative Court.
On30July2020SupremeCourtannouncedapositivecourtverdictinregardstoVATsettlementsofAmRest Sp.zo.o.fortheyear2012andJanuary–September2013.Thecourtrejectedthecomplaintofthetax chamberagainsttheearlierverdictofthelocaladministrativecourt.Theverdictwasbasedonthestatute of limitations on the tax liability for these years.
d.On30July2018ataxinspectionbeganatAmRestSp.zo.o.regardingVATreturnsfortheperiodDecember 2017–March2018.On29August2018theCompanyreceivedthetaxprotocolandon12September2018 theCompanysubmitteditsreservations.On20November2018taxofficeinitiatedtaxproceeding.On 23July2019AmRestSp.zo.o.receivedthenotificationthattheproceedingsaresuspendedduetorequest forpreliminaryrulingsubmittedbyPolishSupremeAdministrativeCourttoCourtofJusticeofEuropean Union.
Despitethelackofafinaldecisionfromthetaxoffice,inAugust2018Companyreceivedfromthetaxoffice cash payments for VAT receivables related to the described VAT settlements (with respective interest). 
e.On12December2018ataxinspectionstartedatAmRestSp.zo.o.regardingVATreturnsfortheperiod April–September2018.On28February2019AmRestSp.zo.o.receivedthetaxprotocolissuedbytheHead oftheLowerSilesiaTaxOfficewhichquestioningthatVATsettlementsfortheperiod.On14March2019the companyfiledthereservationstothisprotocol.On25March2019thecompanyreceivedtheresponseto thesubmittedreservations.TheHeadoftheLowerSilesiaTaxOfficeupheldtheallegationsdescribedinthe protocol.On1August2019AmRestSp.zo.o.receivedthenotificationthattheproceedingsaresuspended duetorequestforpreliminaryrulingsubmittedbyPolishSupremeAdministrativeCourttoCourtofJustice of European Union.
Despitethelackofafinaldecisionfromthetaxoffice,inJanuary2020Companyreceivedfromthetaxoffice cash payments for VAT receivables related to the described VAT settlements (with respective interest).
f.On17May2019AmRestSp.zo.o.receivedthenotificationthattaxinspectionshavebeeninitiatedregarding theVATsettlementsfortheperiodfromOctober2018toMarch2019(sixseparatetaxinspectionsforevery month).Asatthedateofpublicationoftheseconsolidatedfinancialstatements,taxinspectionshavenot been finished.
ThereisaninconsistencybetweenthedecisionsissuedtotheCompany–inthesamecircumstancestax authoritiesarestatingthateither:(1)thattheCompanyappliedanincorrectclassificationoftheoperationswith regardstotheValue-AddedTaxAct(salesofgoodsvs.salesofgastronomicservices)andhasnorighttoreferto individualbindingtaxrulings,or(2)thattheCompanyhasarighttorefertoindividualtaxrulingissuedbythe Minister of Finance.
Thecircumstancesofeachcaseandtheallegationsofthetaxauthoritieshavebeenthoroughlyanalyzedbythe Companyanditstaxadvisors,whofoundthetaxauthorities’standpointchallengingtheVATclassificationand denyingtherighttoapplytheindividualtaxrulingstobecompletelyunjustifiedandunlawful.Intheopinionof theCompany,theindividualbindingtaxrulingsissuedbytheMinisterofFinancepresentareliableandtrue actualstateandconsequentlyhaveprotectivepoweraccordingtoArticle14kandArticle14moftheTax Ordinance Act.
(all figures in EUR millions unless statedotherwise)
60
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Additionally,thematterofapplyinga5%VATratetothetake-awaysegmentwasverifiedandconfirmedby positivedecisionsissuedbytheHeadofLowerSilesiaTaxOfficein2014(inspectionsforOctober,Novemberand December 2013).
TheCompanywouldliketodrawattentiontothefactthatadministrativecourtsinmanycasespresenta standpointconsistentwiththeCompany’s.Also,caselawoftheEuropeanCourtofJusticepresentssuchan approach.
Furthermore,theCompanyinsiststhatthecaseshouldbedeterminedbyapplicationofArticle2aoftheTax OrdinanceActof29August1997(whichstatesthatwhentheprovisionsofthelawarenotclear,thecaseshould be resolved in favor of the taxpayer).
TheGroupanalyzedtheriskwithregardstoongoingtaxinspectionsrelatedtoVATandassessedthatitismore probablethannotthatthetaxauthoritywillfinallyaccepttheCompaniesVATtaxfilings.Thesameconclusions havebeentakenconsideringexternaltaxadvisors.InreferencetoIFRIC23point10,theBoardofDirectors’ opinionstatesthatthereisnolegalobligationforanycashoutflowsandthereisnobasisfortheassessmentof ahigherprobabilitythattheriskwouldmaterialize.Therefore,theGroupdecidedthatasat31December2020 andasatthedateofpublicationoftheseConsolidatedAnnualFinancialStatements,therearenoobligating events, so there are no grounds for booking the provisions for the aforementioned risk.
g.On23February2018ataxinspectionbeganatAmRestSp.zo.o.regardingCITfor2016.On26November 2019AmRestSp.zo.o.receivedthedecisionquestioningtaxsettlementsinrespectofrecognitionofinterest costonloansreceivedfromAmRestFinanceZrt.PLN19.8million(EUR4.7million)andclaimingadditional incomeamountedtoPLN15.2million(EUR3.6million)resultingfromVATrefundreceivedin2016.Thesaid decisionisnotfinalandenforceable,ie.AmRestSp.zo.o.wasnotobligedtopaythetaxassessedbythe TaxAuthoritiesuponobtainingrespectivedecision.TheCompanydisagreedwithconclusionspresentedin the decision and appealed against it on 10 December 2019.
h.On26November2018ataxinspectionbeganatAmRestSp.zo.o.regardingCITfor2013.On26November 2019AmRestSp.zo.o.receivedthedecisionquestioningtaxsettlementsinrespectofrecognitionofinterest costonloansreceivedfromAmRestFinanceZrt.PLN0.2million(EUR0.05million)andclaimingadditional incomeamountedtoPLN7.5million(EUR1.8million)resultingfromVATrefundreceivedin2013.Thesaid Decisionisnotfinalandenforceable,ie.AmRestSp.zo.o.wasnotobligedtopaythetaxassessedbythe TaxAuthoritiesuponobtainingrespectivedecision.TheCompanydisagreedwithconclusionspresentedin the decision and appealed against it on 5 December 2019.
i.On26November2018ataxinspectionbeganatAmRestSp.zo.o.regardingCITfor2014.On26November 2019AmRestSp.zo.o.receivedthedecisionquestioningtaxsettlementsinrespectofrecognitionofinterest costonloansreceivedfromAmRestFinanceZrt.amountedtoPLN78.0million(EUR18.5million)and claimingadditionalincomeamountedtoPLN2.1million(EUR0.5million)resultingfromVATrefundreceived in2014.Thesaiddecisionisnotfinalandenforceable,i.e.AmRestSp.zo.o.wasnotobligedtopaythetax assessedbytheTaxAuthoritiesuponobtainingrespectivedecision.TheCompanydisagreedwith conclusions presented in the decision and appealed against it on 5 December 2019.
AccordingtoPolishregulationsTaxAuthorityisalsotheappealauthority.IncaseTheTaxauthorityupholdsthe decisions,itwillbeobligedtoissuethefinaldecisions.Takingintoaccounttherelevantregulations,theappeal authority is obliged to issue the final decisions. The tax authority has not issued the final decisions yet.
TheGroupanalyzedtheriskwithregardstoongoingtaxproceedingsrelatedtoCITandassessedthatitismore probablethannotthatthetaxauthoritywillfinallyaccepttheCompaniesCITtaxfilling.Thesameconclusions havebeentakenconsideringexternaltaxadvisors.InreferencetoIFRIC23point10,theBoardofDirectors’ opinionstatesthatthereisnolegalobligationforanycashoutflowsandthereisnobasisfortheassessmentof ahigherprobabilitythattheriskwouldmaterialize.Therefore,theGroupdecidedthatasat31December2020 andasatthedateofpublicationoftheseConsolidateAnnualFinancialStatements,therearenoobligating events, so there are no grounds for booking the provisions for the aforementioned risk.
Tax inspections in other Group companies
a.InSeptember2016AmRestCoffeeDeutschlandSp.zo.o.&Co.KG(“Company”),identifiedtheproductsthat weresoldwithanincorrectlyappliedVATrate.Thisfactwaspresentedtothetaxofficerwhowasresponsible fortheinspectionofperiodspriortotheacquisitionofthebusinessbyAmRest.TheCompanyundertookto 
(all figures in EUR millions unless statedotherwise)
61
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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correct the VAT calculation for the periods not lapsed.
ThecorrectivetaxdeclarationsweresubmittedandtheoutstandingtaxliabilitywaspaidinJuly2018.The CompanyhasfiledamendedVATtaxreturns–basedontheapproachconfirmedwiththetaxoffice-forthe period from 2009 to 2015.
On18October2018theCompanyreceivedaletterfromthetaxofficeextendingthetaxauditbyincluding thefinancialyear2016,duringthecourseofwhichtheacquisitionoftheCompanybyAmRestwas completed.Accordingtosaidletter,thetaxauditshallcoverthefollowingtaxsettlements:(1)separateand uniformdeterminationoftheincometaxbaseincludingtradetaxbaseandtaxlosses,(2)VAT,(3)trade taxes,(4)separatedeterminationofthetradetaxlosscarryforwards,(5)separateanduniform determinationofthewithholdingtaxesandcorporateincometaxes.Asatthedateofpublicationofthese consolidated financial statements, the inspection has not concluded.
b.On17December2020theFrenchTaxAdministrationstartedataxcontrolonSushiShopGroupSASentity, relatingtoyears2018and2019.Asatthedateofpublicationoftheseconsolidatedfinancialstatements,tax inspection has not been finished.
c.On22July2019PastificioServiceServiceS.L.(asthetaxpayer),AmrestTagSL(asheadoftheTaxGroup 539/11duringthetaxauditperiod)andAmRestHoldings,SE(asthecurrentheadoftheTaxGroup539/11) werenotifiedoftheinitiationofataxaudit,inregardtocorporateincometax,forthefiscalyears2014to 2017.Thisisapartialtaxaudit,onlyreferredtotaxreliefappliedbyPastificioService,SLincorporateincome taxbasesof2014to2017,inregardtothedeductionsrelatedtocertainintangibleassets(i.e.patentbox regimen). 
On17August2020thementionedcompaniesreceivedthesettlementproposalfromthetaxauditors, includingtheregularizationofthetotalamountofthetaxreliefappliedduring2014to2017.Thissettlement proposal amounted to EUR 1.0 million. 
On 14 September 2020, the companies submitted allegations before the Tax Auditors, being dismissed. 
On10December2020thecompanieshavesignedtheNonConformityTaxAuditSettlementwithregards tothesettlementproposaland,afterwards,onJanuary,2021thecompaniessubmittedthecorresponding allegations before the Technical Office against the final settlement proposal. 
Baseonindependentexpertsadvise,Directorsofthecompaniesconsiderthattheallegationssubmitted willsuccess.Therefore,thereisnotrecordedanyprovisiononthismatterontheFinancialStatementsasof December 2020.
Therearenoothermaterialcontingentliabilitiesconcerningpendingauditsandtaxproceedings,otherthan those stated above. 
34.Trade and other accounts payables
Trade and other accounts payables as at 31 December 2020 and 31 December 2019 cover the following items:
31 December 2020
31 December 2019
Payables to non-related entities, including:
166.5
199.3
Trade payables 
93.0
100.9
Payables in respect of uninvoiced deliveries of food 
10.9
10.5
Employee payables 
14.8
16.9
Social insurance payables
15.2
17.1
Pre-acquisition tax settlements liability
-
2.7
Other tax payables 
8.7
14.8
Investment payables
3.3
14.7
Other payables
20.6
21.7
Contract liabilities - loyalty programs
0.1
0.6
Contract liabilities - gift cards
5.6
5.0
Contract liabilities – initial fees
2.8
3.1
Accruals, including:
54.6
67.8
Employee bonuses
20.5
19.7
Marketing services
3.2
3.8
(all figures in EUR millions unless statedotherwise)
62
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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31 December 2020
31 December 2019
Holiday pay accrual 
15.0
14.6
Professional services
2.8
5.4
Franchise fees
2.8
5.5
Lease cost provisions
4.0
6.1
Investment payables accrual
5.3
10.6
Other
1.0
2.1
Deferred income
5.1
3.1
Social fund 
0.7
0.6
Total trade and other accounts payables
235.4
279.5
Informationonaveragepaymentperiodtosuppliers.Thirdadditionalprovision,“Informationrequirement”ofLaw 15/2010 of July 5.InaccordancewiththeaforementionedLaw,thefollowinginformationcorrespondingtotheSpanishcompanies of the AmRest Group is disclosed:
2020
2019
Number of days:
Average payment period to suppliers
102.2
23.4
Ratio of payments
101.7
23.9
Ratio of outstanding invoices
107.9
17.9
Millions of EUR: 
Total payments
173.9
186.5
Outstanding invoices
16.5
16.8
ThepaymentstosuppliersoftheSpanishconsolidatedcompaniesreflectedintheabovetablearetradepayables as they relate to goods and services. 
35.Future commitments and contingent liabilities
Asinthepreviousreportingperiod,theGroup’sfutureliabilitiesarederivedmainlyfromthefranchise agreementsanddevelopmentagreements.Grouprestaurantsareoperatedinaccordancewithfranchiseand developmentagreementswithYUM!andsubsidiariesofYUM!,BurgerKingEuropeGmbH,StarbucksCoffee International,Inc.Inaccordancewiththeseagreements,theGroupisobligedtomeetcertaindevelopment commitmentsaswellasmaintaintheidentity,reputationandhighoperatingstandardsofeachbrand.Details oftheagreementstogetherwithotherfuturecommitmentshavebeendescribedinnote1and40dofthe Group’sconsolidatedfinancialstatements.AstheCOVID-19pandemicrestrictionsimpactedrestaurants operation, the Group has renegotiated its commitments with each franchisor.
Commitments regarding credit agreement are described in note 29 and note 30.
36.Transactions with related entities
Transactions with related parties are carried out in accordance with market regulations.
Group shareholders
Asat31December2020,FCapitalDutchB.V.wasthelargestshareholderofAmRestandheld67.05%ofitsshares andvotingrights,andassuchwasitsrelatedentity.NotransactionswithFCapitalDutchB.V.relatedpartieswere noted. 
Transactions with key management personnel
TheremunerationoftheBoardofDirectorsandSeniorManagementPersonnel(keymanagementpersonnel) paid by the Group was as follows:
(all figures in EUR millions unless statedotherwise)
63
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
31 December 2020
31 December 2019
Remuneration of the members of the Board of Directors and Senior Management Personnel paid directly by the Group
3.9
4.0
Gain on share-based renumeration systems
0.5
23.2
Total compensation paid to key management personnel
4.4
27.2
DirectorsRemunerationPolicywasapprovedatthegeneralshareholders’meetingheldon6June2018andwill remaininforceuntil2021unlessthegeneralshareholders’meetingsoresolvestoamendorreplaceit.According to the policy, Executive directors may receive additional remuneration for performing executive functions.
TheGroup’skeymanagementpersonnelparticipatesintheemployeeshareoptionplans(note31).Intheyear ended31December2020theprovisionrelatingtotheoptionsdecreasedbyEUR1,1million,duetoasignificant amount of forfeited option. In the year ended 31  December 2019 the provision increased by EUR 3.1 million.
31 December 2020
31 December 2019
Number of options outstanding (pcs, after split)
6 572 333
5 310 000
Number of available options (pcs, after split)
445 933
27 000
Fair value of outstanding options as at grant date (EUR millions)
9.9
13.1
Asat31December2020and2019,theCompanyhadnooutstandingbalanceswiththekeymanagement personnel,apartfromaccrualsforannualbonusespayableinfirstquarterofthefollowingyear.Asat31 December2020and2019theCompanyhasnotextendedanyadvancestotheBoardofDirectorsorsenior managementpersonnelandhadnopensionfund,lifeinsuranceorothersuchcommitmentswiththeseparties, exceptfortheshareoptionplansdetailedaboveandinnote31.Asat31December2020and31 December2019 there were no liabilities to former employees.
Conflicts of interest concerning the Board Directors
TheBoardDirectorsandtheirrelatedpartieshavehadnoconflictsofinterestrequiringdisclosureinaccordance with article 229 of the Revised Spanish Companies Act.
Other related entities
Therewerenomaterialtransactionswithotherrelatedentitiesin2020.Therewerealsonomaterialreceivablesand payables with other related entities as at 31 December 2020 and 31 December 2019.
37.Financial instruments
Thefollowingtableshowsthecarryingamountsoffinancialassetsandfinancialliabilities.TheGroupassessed thatthefairvaluesofcashandcashequivalents,rentaldeposits, tradeandotherreceivables,tradeandother payables,aswellascurrentloansandborrowingsandfinanceleaseliabilitiesapproximatetheircarrying amountslargelyduetotheshort-termmaturitiesoftheseinstruments.Fairvaluesofnon-currentrentaldeposits, loansandborrowingsandfinancialliabilitiesimmateriallydiffersfromtheircarryingvalues.Tradeandother receivablesandliabilitiespresentedbelowdoesnotincludebalancerelatingtotaxesandemployeesettlements.
Asat31December2020theGroupdoesnothaveequityinstrumentmeasuredatfairvalue.Therewereno transfersbetweenfairvaluehierarchylevelsinyear2020.InDecember2019theGrouptransferredequity instrument measured at fair value between levels of fair value hierarchy: from Level 3 to Level 2.
Classificationofkeyclassesoffinancialassetsandliabilitieswiththeircarryingamountsispresentedinnote below:
31 December 2020
Note
FVTPL
Financial assets at amortized cost
Financial liabilities at amortized cost
Financial assets not measured at fair value
Rental deposits 
20
-
21.7
-
Trade and other receivables from clients
22
-
43.2
-
Cash and cash equivalents
24
-
204.8
-
(all figures in EUR millions unless statedotherwise)
64
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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31 December 2020
Note
FVTPL
Financial assets at amortized cost
Financial liabilities at amortized cost
Financial liabilities not measured at fair value
Loans and borrowings
29
-
-
668.4
SSD
29
-
-
102.4
Lease liabilities
15
-
-
761.4
Trade and other liabilities to suppliers
34
-
-
146.9
31 December 2019
Note
FVTPL
Financial assets at amortized cost
Financial liabilities at amortized cost
Financialassetsmeasuredatfair value
Equity instruments
19
76.2
-
-
Financialassetsnotmeasuredat fair value
Rental deposits 
20
-
20.6
-
Tradeandotherreceivablesfrom clients
22
-
65.2
-
Cash and cash equivalents
24
-
106.2
-
Financialliabilitiesnotmeasured at fair value
Loans and borrowings
29
-
-
617.8
SSD
29
-
-
102.3
Lease liabilities
15
-
-
864.1
Trade and other liabilities to suppliers
34
-
-
181.3
Risk management
TheGroupisexposedtoseveralfinancialrisksinconnectionwithitsactivities,including:theriskofmarket fluctuations(coveringtheforeignexchangeriskandriskofchangesininterestrates),riskrelatedtofinancial liquidityand–toalimitedextent–creditrisk.TheriskmanagementprogramimplementedbytheGroupisbased ontheassumptionoftheunpredictabilityofthefinancialmarketsandisusedtomaximallylimittheimpactof negative factors on the Group’s financial results. 
Credit risk
CreditriskistheriskoffinanciallosstotheGroupifacustomerorcounterpartytoafinancialinstrumentfailsto meetitscontractualobligations,andarisesprincipallyfromtheGroup’sreceivablesfromcustomersand investments in debt securities.  
Financialinstrumentsespeciallyexposedtocreditriskincludecashandcashequivalents,tradeandother receivables.TheGrouphasnosignificantconcentrationofcreditrisk.Theriskisspreadoveranumberofbanks, whose services are used, and customers it cooperates with.
Themaximumcreditriskexposureontradeandotherreceivablesandcashandcashequivalentsamountsto EUR 245.9 million.
Cash and cash equivalents
Creditriskrelatedtofinancialinstrumentsintheformofcashinbankaccountsislimited,duetothefactthatthe parties to the transaction are banks with high credit ratings received from international rating agencies. 
Trade receivables
TheGroupanalysesreceivablesbytypeofthecustomer.TheGroupoperateschainsofownrestaurantsunder ownbrandsaswellasunderfranchiselicenseagreements.Additionally,theGroupoperatesasfranchisor(for ownbrands)andmaster-franchisee(forsomefranchisedbrand)anddevelopschainsoffranchiseebusinesses, organizingmarketingactivitiesforthebrandsandsupplychain.Consequently,theGroupanalysestwostream of receivables related to:
-Restaurant sales,
-Franchise and other sales.
(all figures in EUR millions unless statedotherwise)
65
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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TheGroup’receivablesrelatedtorestaurantsalesarelimitedandhavelowcreditriskduetotheshortsettlement time and the nature of settlement, as guests pay in restaurants generally in cash or via credit or debit cards.
Receivablesrelatedtofranchisesalesincludefranchisereceivablesreferringtoownbrandsandmaster-franchise agreements. For these receivables the Group performs detailed analysis of expected credit loss.
TheGroup’sexposuretothatcreditriskisinfluencedmainlybytheindividualcharacteristicsofeachcustomer. However,theGroupalsoconsidersthefactorsthatmayinfluencethecreditriskofitscustomerbase,including thedefaultriskassociatedwiththeindustryandcountryinwhichcustomersoperate,includingtheexternalrating related to particular country.
ForthesereceivablestheGroupappliedthesimplifiedapproachpermittedbyIFRS9,whichrequiresexpected creditlosses(ECLs)toberecognisedfrominitialrecognitionofthereceivables.TheGrouphasestablisheda provisionmatrixthatisbasedonitshistoricalcreditlossexperience,adjustedforforward-lookingfactorsspecific to the debtors and the economic environment. 
Duringyear2020theGrouprecognisedanimpairmentoftheGroup’sreceivablesexposedtocreditriskinannet amount of EUR 6.2 million.
Theageingbreak-downofreceivablesandreceivablelossallowanceasat31December2020and31December 2019 is presented in the table below. 
Current
Overdue in days
Total
2020
current
less than 90
91 - 180
181 -  365
more than 365
Trade and other receivables
45.2
10.5
2.8
5.2
8.9
72.6
Loss allowance (note 22)
(0.7)
(1.2)
(0.8)
(2.6)
(6.9)
(12.2)
Total
44.5
9.3
2.0
2.6
2.0
60.4
Current
Overdue in days
Total
2019
current
less than 90
91 - 180
181 -  365
more than 365
Trade and other receivables
97.6
5.0
3.0
3.6
3.5
112.7
Loss allowance (note 22)
(0.1)
(0.3)
(1.6)
(3.3)
(2.8)
(8.1)
Total
97.5
4.7
1.4
0.3
0.7
104.6
Valueoflossallowanceforreceivablesasat31December2020and31December2019ispresentedintable below:
31 December 2020
31 December 2019
Value at the beginning of the period
8.1
4.2
Allowance created 
6.9
4.6
Allowance released
(0.7)
(0.5)
Allowance used
(1.5)
-
Other
(0.6)
(0.2)
Value at the end of the period
12.2
8.1
Interest rate risk 
BankborrowingsdrawnbytheGrouparemostoftenbasedonfluctuatinginterestrates(note29).Asat31 December2020theGroupdoesnothedgeagainstchangesincashflowsresultingfrominterestratefluctuations whichhaveanimpactontheresults.TheGroupanalysesthemarketpositionrelatingtointerestonloansin termsofpotentialrefinancingofdebtorrenegotiatingthelendingtermsandconditions.Theimpactofchanges in interest rates on results is analyzed in quarterly periods.
HadtheinterestratesonloansdenominatedinPolishzlotysduringthe12monthsended31December2020 been30basepointshigher/lower,theprofitbeforetaxfortheperiodwouldhavebeenEUR371,1thousand lower/higher (2019: EUR 406 thousand).
(all figures in EUR millions unless statedotherwise)
66
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Image
Hadtheinterestratesonloansdenominatedineuroduringthe12monthsendedboth31December2020and 31December2019been30basepointshigher/lower,theprofitbeforetaxfortheseperiodswouldhavebeen the same.
Foreign exchange risk
TheGroupisexposedtoforeignexchangeriskrelatedtotransactionsincurrenciesotherthanthefunctional currencyinwhichthebusinessoperationsaremeasuredinparticularGroupcompanies.Foreignexchangerisk results from future business transactions, recognised assets and liabilities. Moreover, lease payments related to asignificantpartoftheGroup’sleaseagreementsareindexedtotheexchangerateofEURorUSD.Nevertheless, the Group is trying to sign lease agreements in local currencies whenever possible.
ForhedgingtransactionalriskandriskresultingfromrevaluationofrecognisedassetsandliabilitiestheGroup uses derivative forward financial instruments.
Net investment foreign currency valuation risk 
TheGroupisexposedtoriskofnetinvestmentvaluationinsubsidiariesvaluedinforeigncurrencies.Thisriskis hedgedforkeypositionswithuseofnetinvestmenthedge.Detailsconcerninghedgingoncurrencyriskare described in note 25. 
Liquidity risk
Prudentfinancialliquiditymanagementassumesthatsufficientcashandcashequivalentsaremaintainedand that further financing is available from guaranteed funds from credit lines.
ThetablebelowshowsananalysisoftheGroup’sfinancialliabilitieswhichwillbesettledinnetamountsin particularageingbrackets,onthebasisofthetermtomaturityasatthebalancesheetdate.Theamountsshown inthetableconstitutecontractual,undiscountedcashflows. Theinterestpaymentsonvariableinterestrates loansinthetablebelowreflectmarketinterestratesatthereportingdateandtheseamountmaychangeas marketinterestrateschange.Thefuturecashflowsonfinancialliabilitiesmaybedifferentfromtheamountin thetablebelowasinterestratesandexchangerateschange.Itisnotexpectedthatthecashflowsincludedin the maturity analysis could occur significantly earlier or at significantly different amounts. 
Thematuritybreak-downoflong-andshort-termborrowingsaswellastradeandotherliabilitiesasat31 December 2020 and 31 December 2019 is presented in the table below:
31 December 2020
Contractual, undiscounted cash flows
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 to suppliers
146.9
-
-
-
-
-
146.9
146.9
Loan instalments
95.1
609.6
13.4
42.8
8.1
2.2
771.2
770.8
Interest and other charges
16.0
11.0
1.1
0.6
0.1
-
28.8
-
31 December 2019
Contractual, undiscounted cash flows
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 to suppliers
181.3
-
-
-
-
-
181.3
181.3
Loan instalments
64.1
58.1
561.5
-
38.5
-
722.2
720.1
Interest and other charges
15.9
13.0
10.0
0.9
0.4
0.4
40.6
-
(all figures in EUR millions unless statedotherwise)
67
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Capital risk
TheGroupmanagescapitalrisktoprotectitsabilitytocontinueinoperation,soastoenableittorealizereturns foritsshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreduce its cost. 
38.Audit fees
KPMGAuditores,S.L.,andotherrelatedcompaniesasdefinedinthefourteenthadditionalprovisionoflegislation governingthereformofthefinancialsystem,renderedprofessionalservicestotheGroupduringtheyearsended 31 December 2020 and 2019, the fees and expenses for which are as follows:
2020
KPMG Auditores, S.L.
Other entities affiliated with KPMG International
Other auditors
Total
Audit and other assurance services
0.3
0.6
0.3
1.2
Other verification services
-
0.1
-
0.1
Other services
-
0.1
0.1
0.2
0.3
0.8
0.4
1.5
2019
KPMG Auditores, S.L.
Other entities affiliated with KPMG International
Other auditors
Total
Audit and other assurance services
0.3
0.7
0.3
1.3
Other verification services
-
-
-
-
Other services
-
-
-
-
0.3
0.7
0.3
1.3
Otherassuranceservicesinclude,mainly,limitedreviewoftheCondensedConsolidatedInterimFinancial Statementsforthesix-monthperiodending30June2020andotheragreedupon-proceduresperformedbythe auditors. 
Theamountsdetailedintheabovetableincludethetotalfeesfor2020and2019,irrespectiveofthedateof invoice.
39.Events after the reporting period
After31December2020,untilthedateofpublicationofthisReport,COVID-19outbreakcontinues.Various Europeancountriesareadjustingthelevelofrestrictionsandlimitationsbothonbusinessesandcitizensasthe situations develop. New variants of virus are being discovered. 
Tobringthispandemictoanend,alargeshareoftheworldneedstobeimmunetothevirus.Massvaccination program are being developed and rolled out.
TheGroupiscontinuouslyanalyzingthedynamicchangesintheenvironmentandadjustsitsongoingoperations tominimizetheriskofdisruptionofbusinesscontinuity.Stilltheuncertaintiesexist,andtheeffectsofthe pandemic cannot be reliably estimated.
40.Significant accounting policies
a.Basis of consolidation
Business combinations
TheGroupaccountsforbusinesscombinationsusingtheacquisitionmethodwhentheacquiredsetofactivities andassetsmeetsthedefinitionofabusinessandcontrolistransferredtotheGroup.Indeterminingwhethera particularsetofactivitiesandassetsisabusiness,theGroupassesseswhetherthesetofassetsandactivities acquiredincludes,ataminimum,aninputandsubstantiveprocessandwhethertheacquiredsethastheability to produce outputs.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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TheGrouphasanoptiontoapplya‘concentrationtest’thatpermitsasimplifiedassessmentofwhetheran acquiredsetofactivitiesandassetsisnotabusiness.Theoptionalconcentrationtestismetifsubstantiallyallof thefairvalueofthegrossassetsacquiredisconcentratedinasingleidentifiableassetorgroupofsimilar identifiable assets.
Thecostofanacquisitionismeasuredastheaggregateoftheconsiderationtransferred,whichismeasuredat acquisitiondatefairvalue,andtheamountofanynon-controllinginterestsintheacquiree.Foreachbusiness combination,theGroupelectswhethertomeasurethenon-controllinginterestsintheacquireeatfairvalueor at the proportionate share of the acquiree’s identifiable net assets. 
Anygoodwillthatarisesistestedannuallyforimpairment.Anygainonabargainpurchaseisrecognisedinprofit orlossimmediately.Transactioncostsareexpensedasincurred,exceptifrelatedtotheissueofdebtorequity securities.
Theconsiderationtransferreddoesnotincludeamountsrelatedtothesettlementofpre‑existingrelationships. Such amounts are generally recognised in profit or loss.
Anycontingentconsiderationismeasuredatfairvalueatthedateofacquisition.Ifanobligationtopaycontingent considerationthatmeetsthedefinitionofafinancialinstrumentisclassifiedasequity,thenitisnotremeasured andsettlementisaccountedforwithinequity.Otherwise,othercontingentconsiderationisremeasuredatfair valueateachreportingdateandsubsequentchangesinthefairvalueofthecontingentconsiderationare recognised in profit or loss.
Subsidiaries
Subsidiaries are entities controlled by the Group.
ControlisachievedwhentheGroupisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththe investeeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.Specifically,theGroup controls an investee if, and only if, the Group has:
-Powerovertheinvestee(i.e.,existingrightsthatgiveitthecurrentabilitytodirecttherelevantactivities 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. 
TheGroupre-assesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethatthereare changes to one or more of the three elements of control. 
ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiaryandceaseswhenthe Grouplosescontrolofthesubsidiary.Assets,liabilities,incomeandexpensesofasubsidiaryacquiredor disposedofduringtheyearareincludedintheconsolidatedfinancialstatementsfromthedatetheGroupgains control until the date the Group ceases to control the subsidiary.
WhentheGrouplosescontroloverasubsidiary,itderecognisestheassetsandliabilitiesofthesubsidiary,and anyrelatedNCIandothercomponentsofequity.Anyresultinggainorlossisrecognisedinprofitorloss.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
ChangesintheGroup’sinterestinasubsidiarythatdonotresultinalossofcontroloversubsidiarycompanyare recognisedasequitytransactions.Insuchcases,theGroupadjuststhecarryingamountofthecontrollingand non-controllinginterestandeffectoftransactionswithnon-controllinginterestispresentedinequityitems allocated to the owners of the parent.
Interests in equity-accounted investees
The Group’s interests in equity‑accounted investees comprise interests in associates and a joint venture.
AssociatesarethoseentitiesinwhichtheGrouphassignificantinfluence,butnotcontrolorjointcontrol,over thefinancialandoperatingpolicies.AjointventureisanarrangementinwhichtheGrouphasjointcontrol, wherebytheGrouphasrightstothenetassetsofthearrangement,ratherthanrightstoitsassetsandobligations for its liabilities.
Interestsinassociatesandthejointventureareaccountedforusingtheequitymethod.Theyareinitially recognisedatcost,whichincludestransactioncosts.TheGroup’sinvestmentinequity-accountedinvestees 
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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includesgoodwill(netofanypotentialaccumulatedimpairmentwrite-downs),determinedasattheacquisition date.Subsequenttoinitialrecognition,theconsolidatedfinancialstatementsincludetheGroup’sshareofthe profitorlossandOCIofequityaccountedinvestees,untilthedateonwhichsignificantinfluenceorjointcontrol ceases. 
Transactions eliminated on consolidation
Intra‑groupbalancesandtransactions,andanyunrealisedincomeandexpensesarisingfromintra‑group transactions,areeliminated.Unrealisedgainsarisingfromtransactionswithequityaccountedinvesteesare eliminatedagainsttheinvestmenttotheextentoftheGroup’sinterestintheinvestee.Unrealisedlossesare 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.
Foreachentity,theGroupdeterminesthefunctionalcurrencyanditemsincludedinthefinancialstatementsof each entity are measured using that functional currency. 
The Group uses European Central Bank‘s exchange rates for currency translations.
Thefunctionalcurrencyofnoneofthesubsidiariesisthecurrencyofahyperinflationaryeconomyas at 31 December 2020.
Foreign currency transactions
TransactionsinforeigncurrenciesaretranslatedintotherespectivefunctionalcurrenciesofGroupcompanies attheexchangeratesatthedatesofthetransactions.Forsimplificationmonthlyincomestatementsare translated using average monthly exchange rates based on the European Central Bank rates.
Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintothefunctionalcurrencyat theexchangerateatthereportingdate.Non‑monetaryassetsandliabilitiesthataremeasuredatfairvalueina foreigncurrencyaretranslatedintothefunctionalcurrencyattheexchangeratewhenthefairvaluewas determined.Non‑monetaryitemsthataremeasuredbasedonhistoricalcostinaforeigncurrencyaretranslated attheexchangerateatthedateofthetransaction.Foreigncurrencydifferencesaregenerallyrecognisedinprofit 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 at FVOCI,
-Afinancialliabilitydesignatedasahedgeofthenetinvestmentinaforeignoperationtotheextentthatthe hedge is effective,
-Qualifying cash flow hedges to the extent that the hedges are effective.
Foreign operations
Theassetsandliabilitiesofforeignoperations,includinggoodwillandfairvalueadjustmentsarisingon acquisition,aretranslatedintoeuroattheexchangeratesatthereportingdate.Theincomeandexpensesof foreign operations are translated into euro at the exchange rates at the dates of the transactions.
ForeigncurrencydifferencesarerecognisedinOCIandaccumulatedinthetranslationreserve,excepttothe extentthatthetranslationdifferenceisallocatedtoNCI.Ondisposalofaforeignoperation,thecomponentof OCI relating to that particular foreign operation is reclassified to profit or loss.
c.Non-current assets held for sale and discontinued operations  
TheGroupclassifiesnon-currentassetsanddisposalgroupsasheldforsaleiftheircarryingamountswillbe recoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.Non-currentassetsand disposalgroupsclassifiedasheldforsalearemeasuredattheloweroftheircarryingamountandfairvalue less coststosell.Coststosellaretheincrementalcostsdirectlyattributabletothedisposalofanasset(disposal group), excluding finance costs and income tax expense.  
Thecriteriaforheldforsaleclassificationisregardedasmetonlywhenthesaleishighlyprobableandtheasset 
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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ordisposalgroupisavailableforimmediatesaleinitspresentcondition.Actionsrequiredtocompletethesale shouldindicatethatitisunlikelythatsignificantchangestothesalewillbemadeorthatthedecisiontosell will bewithdrawn.Managementmustbecommittedtotheplantoselltheassetandthesaleexpectedtobe completed within one year from the date of the classification.  
Property,plantandequipmentandintangibleassetsarenotdepreciatedoramortisedonceclassifiedasheld for sale. 
Assetsandliabilitiesclassifiedasheldforsalearepresentedseparatelyascurrentitemsinthestatementof financial position. 
Adisposalgroupqualifiesasdiscontinuedoperationifitisacomponentofanentitythateitherhasbeen disposed of, or is classified as held for sale, and: 
-Represents a separate major line of business or geographical area of operations, 
-Ispartofasinglecoordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaof operations, or 
-Is a subsidiary acquired exclusively with a view to resale. 
Discontinuedoperationsareexcludedfromtheresultsofcontinuingoperationsandarepresentedasasingle amount as profit or loss after tax from discontinued operations in the statement of profit or loss.  
d.Revenues
TheGroupoperateschainsofownrestaurantsunderownbandsaswellasunderfranchiselicenseagreements. AdditionallyGroupoperatesasfranchisor(forownbrands)andmaster-franchisee(forsomefranchisedbrand), and develops chains of franchisee businesses, organizing marketing activities for the brands, and supply chain.
Revenuefromcontractswithcustomersisrecognisedwhencontrolofthegoodsorservicesistransferredtothe customeratanamountthatreflectstheconsiderationtowhichtheGroupexpectstobeentitledinexchangefor those goods or services. 
Restaurant sales
RevenuesfromthesaleofgoodsbyownedrestaurantsarerecognisedasGroupsaleswhenacustomer purchasesthegoods,whichiswhenourobligationtoperformissatisfied.Theserevenuesarepresentedin “Restaurant sales” line in the Consolidated Income Statement.
Franchise and other sales: owned brands
•Royaltyfees(basedonpercentageoftheapplicablerestaurant’ssales)arerecognisedastherelatedsales occur. Royalty fees are typically billed and paid monthly.
•Initialfees,renewalfees:foreachbrandseparately,theGroupanalysesiftheactivitiesperformedaredistinct fromthefranchisebrand.Iftheydonotrepresentaseparateperformanceobligationtheyarerecognised onastraight-linebasisoverthecontractduration.Iftheyrepresentaseparateobligation,theGroup estimates the allocation of the part of the transaction price to that performance obligation. 
•Advertisingfunds:forSushiGroupandBacoabrandstheGroupoperatestheadvertisingfundsthatare designedtoincreasesalesandenhancethereputationoftheownbrandsanditsfranchiseowners. ContributionstotheadvertisingcooperativesarerequiredforbothCompany-ownedandfranchise restaurantsandaregenerallybasedonapercentageofrestaurantsales.Revenuesfortheseservicesare typicallybilledandpaidonamonthlybasis.Advertisingservicesthatpromotethebrand(ratherthanan individuallocation),suchasnationaladvertisingcampaigns,arenotseparablebetweendifferentfranchise agreementsorfranchisees,andnotdistinctbecausetheservicesandfranchiserightarehighlydependent andinterrelatedwitheachother.Thesales-basedadvertisingfundcontributionsfromfranchiseesare recognisedastheunderlyingsalesoccur,arereportedgrossaspartofrevenueandpresentedinline “Franchiseandothersales”.Ownrestaurantsparticipationinmarketingcostsasanelementispresentedas element of operational costs.
•Revenuefromsaleofproductstofranchiseesisrecognisedatthemomentoftransactionwhichiswhenour obligation to perform is satisfied.
Franchise and other sales: master-franchise agreements
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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AsaresultofsignedMasterFranchiseAgreements(MFAs)fordifferentPizzaHutconcepts,YUM(“Master Franchisor”)grantedAmRest(“MasterFranchisee”)MasterFranchiseRightsfortheagreedtermintheparticular territories.IntellectualpropertyisexclusivepropertyofMasterFranchisorandMasterFranchisorgrantsAmRest alicensetouseitintheagreedterritory.UndertheMasterFranchiseAgreementpartiesestablishedthe development commitments for development periods.
Performance obligations identified:
•AmRest’sperformanceobligationtoYUM:todevelopthemarketbyopeningnewrestaurants(eitherAmRest ownorsub-franchises)andpromotetheYUM’sbrandbyperformingmarketingactivities.Managing marketingfundisnotdistinctfromthedevelopmentofthemarket,andnoseparateremunerationwas agreedbetweenpartiesforthoseservices.VariousstreamsofcashflowsareagreedinMFA:AmRestcollects initialfeesandtransfersthemtoYUM,AmRestmanagesthemarketingfund(collectsrevenuebased contributionsfromownedandsub-franchisedrestaurantsandspendsthemonmarketingactivities,any unspentamountistobepaidtoYUMandYUMspendsitonnationalcampaignsatitsdiscretion).Ifacertain pointofmarketdevelopmentlevelisreached,AmRestisenabledtoreceiveabonusthatrepresentsthe transactionpricefortheserviceperformedfortheMasterFranchisor.Toreflectthesubstanceofthe transaction,incomesfromsubfranchiseesfrominitialandmarketingfeesarenettedwiththeinitialfees paid/actual marketing expenses and bonus earned.
•AmRest’sperformanceobligationtosub-franchisees:tograntsub-franchiseestherighttousethesystem, systempropertyetc.andotherservicessolelyinconnectionwiththeconductofthebusinessattheoutlet (sub-licensingfromYUM).Thetransactionpriceisagreedintheformofsalesbasedroyaltiespaidby franchisees.Initialfeesandrenewalfeespaidbyfranchiseesarepartofotherperformanceobligations (describedabove).CorrespondingcostsofacquiringlicenserightfromYumarepresentedwithincostsof sales of franchise activities in the line “Franchise and other expenses”.
Loyalty points programs
TheGrouphasvariousloyaltypointsprogramswhereretailcustomersaccumulatepointsforpurchasesmade whichentitlethemtodiscountonfuturepurchases.Theloyaltypointsgiverisetoaseparateperformance obligationastheyprovideamaterialrighttothecustomer.Aportionofthetransactionpriceisallocatedtothe loyaltypointsawardedtocustomersbasedonrelativestand-alonesellingpriceandrecognisedasacontract liabilityuntilthepointsareredeemed.Revenuefromtheawardpointsisrecognisedwhenthepointsare redeemed or when they expire or are likely to expire.Whenestimatingthestand-alonesellingpriceoftheloyaltypoints,theGroupconsidersthelikelihoodthatthe customer will redeem the points. 
Gift cards 
Giftcardsmaybeissuedtotheguestsinsomebrandsandredeemedasapaymentforminsubsequent transactions.TheGrouprecordsacontractliabilityintheperiodinwhichgiftcardsareissuedandproceedsare received.Thisliabilityiscalculatedtakingintoaccounttheprobabilityofthegiftcards’redemption.The redemptionrateiscalculatedbasedonownandindustryexperience,historicalandlegalanalysis.Revenueis recognised when a performance obligation is fulfilled and a guest redeems the gift cards. 
e.Government grants
GovernmentgrantsthatcompensatetheGroupforexpensesincurredarerecognisedinprofitorlossasother operatingincomeonasystematicbasisintheperiodsinwhichtheexpensesarerecognised,unlessthe conditionsforreceivingthegrantaremetaftertherelatedexpenseshavebeenrecognised.Inthiscase,thegrant is recognised when it becomes receivable.
f.Income tax
Incometaxexpensecomprisescurrentanddeferredtax.Itisrecognisedinprofitorlossexcepttotheextentthat it relates to a business combination, or items recognised directly in equity or in OCI.
Currenttaxcomprisestheexpectedtaxpayableorreceivableonthetaxableincomeorlossfortheyearandany adjustmenttothetaxpayableorreceivableinrespectofpreviousyears.Theamountofcurrenttaxpayableor 
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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receivableisthebestestimateofthetaxamountexpectedtobepaidorreceivedthatreflectsuncertaintyrelated to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. 
Deferredtaxisprovidedusingtheliabilitymethodontemporarydifferencesbetweenthetaxbasesofassetsand liabilities and their carrying amounts for financial reporting purposes at the reporting date.  
Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatitis nolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassetto beutilised.Unrecogniseddeferredtaxassetsarere-assessedateachreportingdateandarerecognisedtothe extentthatithasbecomeprobablethatfuturetaxableprofitswillallowthedeferredtaxassettoberecovered. DependingonthetaxjurisdictionwheretheGroup’ssubsidiariesoperaterecoverabilityofdeferredtaxesis assessedtakingintoaccountpotentialtimeexpiryofavailabilityofdeferredtaxutilization(e.g.incaseoftax losses).
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when  the assetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively enacted at the reporting date. 
Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss.Deferredtax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. 
Taxbenefitsacquiredaspartofabusinesscombination,butnotsatisfyingthecriteriaforseparaterecognition atthatdate,arerecognisedsubsequentlyifnewinformationaboutfactsandcircumstanceschange.The adjustmentiseithertreatedasareductioningoodwill(aslongasitdoesnotexceedgoodwill)ifitwasincurred during the measurement period or recognised in profit or loss. 
TheGroupoffsetsdeferredtaxassetsanddeferredtaxliabilitiesifandonlyifithasalegallyenforceablerightto setoffcurrenttaxassetsandcurrenttaxliabilitiesandthedeferredtaxassetsanddeferredtaxliabilitiesrelate toincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxable entitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealisetheassetsand settletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilities or assets are expected to be settled or recovered.
g.Leases 
Atinceptionofacontract,theGroupassesseswhetheracontractis,orcontains,alease.Acontractis,orcontains, aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchange for consideration. 
The Group as a lessee
Atcommencementoronmodificationofacontractthatcontainsaleasecomponent,theGroupallocatesthe considerationinthecontracttoeachleasecomponentonthebasisofitsrelativestand-aloneprices.However, fortheleasesofpropertytheGrouphaselectednottoseparatenon-leasecomponentsandaccountforthelease and non-lease components as a single lease component. 
TheGrouprecognisesaright-of-useassetandaleaseliabilityattheleasecommencementdate.Theright-of-use assetisinitiallymeasuredatcost,andsubsequentlyatcostlessanyaccumulateddepreciationandimpairment losses, and adjusted for certain remeasurements of the lease liability. Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthe commencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadily determined,theincrementalborrowingrate.Generally,theGroupusestheincrementalborrowingratesasthe discount rates.TheGroupdeterminesitsincrementalborrowingratebyobtaininginterestratesfromvariousexternalfinancing sources(differentiatedbycurrencyofthedebt)andmakescertainadjustmentstoreflectthetermsofthelease, based on long-term IRS quotation. 
Theleaseliabilityissubsequentlyincreasedbytheinterestcostontheleaseliabilityanddecreasedbylease 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
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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-changesintheassessmentofwhetherapurchaseorextensionoptionisreasonablycertaintobeexercised or a termination option is reasonably certain not to be exercised.
Whentheleaseliabilityisremeasuredinthisway,acorrespondingadjustmentismadetothecarryingamount oftheright-of-useasset,orisrecordedinprofitorlossifthecarryingamountoftheright-of-useassethasbeen reduced to zero. 
TheGroupincursexpensesonmaintenance,securityandpromotionintheshoppingmalls(socalled“common areacharges”).Theseitemsareseparateservices(non-leasecomponents)andarerecognisedasanoperating expenses.
TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesforleasesoflow-valueassetsand short-termleases.TheGrouprecognisestheleasepaymentsassociatedwiththeseleasesasanexpensesona straight-line basis over the lease term. 
COVID-19-related rent concessions 
TheGrouphasappliedCOVID-19-RelatedRentConcessions–AmendmenttoIFRS16.TheGroupappliesthe practicalexpedientallowingitnottoassesswhethereligiblerentconcessionsthatareadirectconsequenceof theCOVID-19pandemicareleasemodifications.TheGroupappliesthepracticalexpedientconsistentlyto contractswithsimilarcharacteristicsandinsimilarcircumstances.Forrentconcessionsinleasestowhichthe Groupchoosesnottoapplythepracticalexpedient,orthatdonotqualifyforthepracticalexpedient,theGroup assesses whether there is a lease modification. 
The Group as a lessor 
Atinceptionoronmodificationofacontractthatcontainsaleasecomponent,theGroupallocatesthe considerationinthecontracttoeachleasecomponentonthebasisoftheirrelativestand-aloneprices.Whenthe Groupactsasalessor,itdeterminesatleaseinceptionwhethereachleaseisafinanceleaseoranoperating lease. 
WhentheGroupisanintermediatelessor,itaccountsforitsinterestsintheheadleaseandthesub-lease separately.Itassessestheleaseclassificationofasub-leasewithreferencetotheright-of-useassetarisingfrom theheadlease,notwithreferencetotheunderlyingasset.Ifaheadleaseisashort-termleasetowhichtheGroup applies the exemption described above, then it classifies the sub-lease as an operating lease. 
Rentalincomearisingfromoperatingleaseisaccountedforonastraight-linebasisovertheleasetermsand included in other income in the income statement.
h.Property, plant and equipment
Itemsofproperty,plantandequipment(PPE)aremeasuredatcostlessaccumulateddepreciationandany accumulated impairment losses.
Theinitialvalueoftheproperty,plantandequipmentofnewrestaurantsbuiltinternally(suchasconstruction sitesandleaseholdimprovementsinrestaurants)includethecostofmaterials,directlabor,costsofarchitecture design,legalassistance,thepresentvalueoftheexpectedcostforthedecommissioningofanassetafteritsuse, wages and salaries and benefits of employees directly involved in launching a given location.
TheGroupcapitalizestherestaurantscostsmentionedaboveincurredfromthemomentwhenthecompletion oftheprojectisconsideredlikely.Intheeventofalaterdropintheprobabilityoflaunchingtheprojectatagiven location, all the previously capitalized costs are transferred to the income statement. 
Ifsignificantpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,thentheyare accounted for as separate items (major components) of property, plant and equipment.
Subsequentexpenditureiscapitalisedonlyifitisprobablethatthefutureeconomicbenefitsassociatedwiththe expenditurewillflowtotheGroup.Allotherrepairsandmaintenancearechargedtotheincomestatement during the financial period in which they are incurred.
Gainorlossondisposalofanitemofproperty,plantandequipmentisrecognisedinprofitorloss,under„other operating gains and losses”. 
Amortisation and depreciation
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Property,plantandequipment,includingtheirmaterialcomponents,aredepreciatedonastraight-linebasisover theexpectedusefullifeoftheassets/components.Landisnotdepreciated.Constructioninprogressisstatedat 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. 
i.Franchise, license agreements and other fees
TheGroupoperatesownrestaurantsonthebasisoffranchiseagreements(thirdpartybrands).Inaccordance withthefranchiseagreements,theGroupisobligedtopayanon-reimbursableinitialfeeuponopeningeachnew restaurantandfurtherfeesovertheperiodoftheagreement(intheamountofa%ofsalesrevenues,usually5-6%),andtoallocatea%ofrevenues(usually5%)toadvertisingactivitiesspecifiedintherespectiveagreements. Moreover,aftertheendoftheinitialperiodofthefranchiseagreement,theGroupmayrenewthefranchise agreement after paying a renewal fee.
Non-reimbursableinitialfeesareinfactfeesfortherighttousethetrademarkandareincludedinintangible assetsandamortisedovertheperiodofthefranchise(usually10years).Furtherpaymentsmadeintheperiod oftheagreementaredisclosedintheincomestatementuponbeingmade.Feesforextendingthevalidityofthe 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
Intangibleassetsacquiredseparatelyaremeasuredoninitialrecognitionatcost.Acquiredlicensesforcomputer software are capitalized on the basis of costs incurred to acquire and prepare specific software for use. 
FranchiserightofuseforPizzaHut,KFC,BurgerKingandStarbuckstrademarksarerecognisedattheacquisition price.
The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. 
Internallygeneratedintangibles,excludingcapitaliseddevelopmentcosts,arenotcapitalisedandtherelated expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
Followinginitialrecognition,intangibleassetsarecarriedatcostlessanyaccumulatedamortisationand accumulated impairment losses.
Subsequentexpenditureiscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedinthe specificassettowhichitrelates.Allotherexpenditure,includingexpenditureoninternallygeneratedgoodwill and brands, is recognised in profit or loss as incurred.
Amortisation
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangibleassetswithfinitelivesareamortisedovertheusefuleconomiclifeandassessedforimpairment whenever there is an indication that the intangible asset may be impaired.
Intangibleassetswithindefiniteusefullivesarenotamortised,butaretestedforimpairmentannually,either individuallyoratthecash-generatingunitlevel.Theassessmentofindefinitelifeisreviewedannuallyto determinewhethertheindefinitelifecontinuestobesupportable.Ifnot,thechangeinusefullifefromindefinite to finite is made on a prospective basis.  
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Amortisationmethods,usefullivesandresidualvaluesarereviewedateachreportingdateandadjustedif appropriate.Changesintheexpectedusefullifeortheexpectedpatternofconsumptionoffutureeconomic benefitsembodiedintheassetareconsideredtomodifytheamortisationperiodormethod,asappropriate,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
Blue Frog brand
Marketing related
20 years
Sushi Shop loyalty program
Customer related
10 years
La Tagliatella franchisee relations
Customer related
24 years
Favorable lease agreements
Contract based
2-10yearsovertheperiodtothe 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:
othe consideration paid,
othe amount of all non-controlling interest in the acquiree, and
ointhecaseofabusinesscombinationachievedinstages,thefairvalue,attheacquisition-date,ofaninterest in the acquiree, 
▪over the net fair value of the identifiable assets and liabilities at the acquisition date.
Goodwillonconsolidationisdisclosedinaseparatelineinthestatementoffinancialpositionandmeasuredat costnetofaccumulatedimpairmentwrite-downs.Goodwillistestedforimpairmentannuallyormorefrequently if events or changes in circumstances indicate that the carrying amount may be impaired.
Goodwillofforeignoperationsistranslatedintoeuroattheexchangeratesatthereportingdate.Gainsand losses on the disposal of an entity include the carrying amount of goodwill allocated to the entity sold.
l.Impairment of non-financial assets
TheGroupperiodicallyreviewsthecarryingamountsofitsnon‑financialassets(otherthaninvestmentproperty, inventoriesanddeferredtaxassets)todeterminewhetherthereisanyindicationofimpairment.Ifanysuch indication exists, then the asset’s recoverable amount is estimated for the purpose of impairment test.
Acash-generatingunit(CGU)isthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatare largely independent of the cash inflows from other assets or groups of assets.
Recoverableamountisdeterminedforanindividualasset,unlesstheassetdoesnotgeneratecashinflowsthat arelargelyindependentofthosefromotherassetsorgroupsofassets.Ifthisisthecase,recoverableamountis determined for the cash-generating unit to which the asset belongs.
GoodwillarisingfromabusinesscombinationisallocatedgroupsofCGUsthatareexpectedtobenefitfromthe synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
(all figures in EUR millions unless statedotherwise)
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Impairmentlossesarerecognisedinprofitorlossinline“Netimpairmentlossesonotherassets”Theyare allocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheCGU,andthentoreducethecarrying amounts of the other assets in the CGU.
Anassessmentismadeateachreportingdateastowhetherthereisanyindicationthatpreviouslyrecognised impairment losses may no longer exist or may have decreased.
Animpairmentlossinrespectofgoodwillisnotreversed.Forotherassets,animpairmentlossisreversedonly totheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeen determined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.Thereversalof impairment losses in recognised in line “ Net impairment losses on other assets”.
Groupperformsingeneraltwotypesofimpairmenttests:onrestaurantlevels,whenimpairmentindicators 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.
The following situations are considered impairment indicators for the purpose of testing at restaurant level:
•Restaurant operating result for last 12 month is negative,
•Store was already fully or partially impaired during last impairment test exercise,
•Store is planned to be closed.
Agroupofstoresoperatingover18monthsinAmReststructureswhichhasnotbeenrenovatedinthelast18 monthsisanalysedatleasttwiceayearifimpairmentindicatorsexist.Ifoneoftheaboveindicatorsisidentified forthestorethentherestaurantistestedforimpairment.Valueinuseisusuallydeterminedfortheremaining estimatedperiodofoperation,aswellanalysisofpotentialonerousliabilities(mainlyforrentalagreementcosts) is performed for planned closures.
RegularlytheGroupalsotestsrestaurantsforwhichinpasttheimpairedlosswasrecognised,inorderto determine if any reversal is required. 
UponapplicationoftheIFRS16carryingamountofthetestedrestaurantsincludesalsocarryingamountofright ofuseofassets inrespectiverestaurants.Valueinuseisbasedontheestimatedfuturecashflows,discounted totheirpresentvalueusingapre‑taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueof moneyandtherisksspecifictotheassetorCGU.IncasetheGroupbelievestheequipmentwillberecovered throughthesaleorreallocationintoanotherrestauranttherespectiveadjustmentismadeindetermining final impairmentcharge.Discountedcashflowsdonotincludeoutflowsrelatestorentalagreementsasthoseare consideredanelementoffinancingunderIFRS16andreflectedindiscountrateapplicablefortest.Carrying amountofleaseliabilitiesisincludedincarryingamountofCGU.Leaselabilitiesarealsodeductedfrom discounted cashflows.
Goodwill tests - unless impairment indicators exist, procedure performed once a year
Forbusinesseswheregoodwillisallocatedimpairmenttestsareperformedatleastonceayear.Goodwillistestes togetherwithintangibles(includingthosewithindefiniteusefullives),propertyplantandequipment,rightof usesassetsaswellothernon-currentassetsallocatedtogroupsofCGUswheregoodwillismonitored.If impairment indicators exist additional tests are performed. Following indicators are analyzed:
Arising from external sources of information such as:
•Significantadversechangesthathavetakenplace(orareexpectedinthenearfuture)inthetechnological, market, economic or legal environment in which the entity operates or in its markets,
•Increasesininterestrates,orothermarketratesofreturn,thatmightmateriallyaffectthediscountrate used in calculating the asset’s recoverable amount. 
Arising from internal sources of information, including:
•Planstodiscontinueorrestructurethe operationtowhichtheassetbelongs,aswellas reassessingthe asset’s useful life from indefinite to finite,
•Deteriorationinthe expectedleveloftheasset’sperformancei.e.whentheactualnetcash outflowsor operating profit or loss are significantly worse than budgeted,
•Wheremanagement’sownforecastsoffuturenetcashinflowsoroperatingprofitsshowasignificant  decline from previous budgets and forecasts.
(all figures in EUR millions unless statedotherwise)
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Materialityappliesindeterminingwhetheranimpairmentreviewisrequired.Ifpreviousimpairmentreviews haveshownasignificantexcessofrecoverableamountovercarryingamount,noreviewwouldbenecessaryin theabsenceofaneventthatwouldeliminatetheexcess.Previousreviewsmightalsohaveshownthatanasset’s recoverable amount is not sensitive to one or  more of the impairment indicators.
Therecoverableamountsisassessedusingfairvalueslesscostsofdisposalmodelbasedonthediscountedcash flows.Posttaxrateisapplied,andimpliedpre-taxratesubsequentlydetermined.Leaseliabilitiesareincludedin carryingamountoftestedbusinessreducingthemaximumpossibleimpairment.Leaseoutflowsareincludedl in cash flow projections in the impairment model.
Sensitivity analysis is performed as an element of impairment tests procedures.
m.Investment properties
Investmentpropertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition, investment properties are stated at fair value.
Gainsorlossesarisingfromchangesinthefairvaluesofinvestmentpropertiesareincludedinprofitorlossin the period in which they arise, including the corresponding tax effect, when applicable.
n.Inventories
Inventoriesincludemainlymaterialsandgoodsforresale.Inventoriesarestatedatthelowerofcostandnet realizablevalue.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessthe estimated costs of completion and the estimated costs necessary to make the sale.
o.Cash and cash equivalents
Cashreportedinthestatementoffinancialpositioncomprisescashatbanksandonhand,short-termdeposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.
Forthepurposeoftheconsolidatedcashflowstatement,cashandcashequivalentsconsistofcashandshort-termdeposits,asdefinedabove,netofoutstandingbankoverdraftsiftheyareconsideredanintegralpartofthe Group’s cash management.
p.Financial assets
The Group classifies its financial assets in the following measurement categories:
•Those to be measured subsequently at fair value through other comprehensive income (FVOCI),
•Those to be measured subsequently at fair value through profit or loss (FVTPL),
•Those to be measured at amortised cost.
Theclassificationdependsontheentity’sbusinessmodelformanagingthefinancialassetsandthecontractual terms of the cash flows.
Forassetsmeasuredatfairvalue,gainsandlosseswilleitherberecordedinprofitorlossorOCI.Forinvestments inequityinstrumentsthatarenotheldfortrading,thiswilldependonwhetherthegrouphasmadeanirrevocable electionatthetimeofinitialrecognitiontoaccountfortheequityinvestmentatfairvaluethroughother comprehensiveincome(FVOCI).TheGroupreclassifiesdebtinvestmentswhenandonlywhenitsbusinessmodel for managing those assets changes.
Recognition and derecognition 
Regularwaypurchasesandsalesoffinancialassetsarerecognisedontrade-date,thedateonwhichthegroup commitstopurchaseorselltheasset.Financialassetsarederecognisedwhentherightstoreceivecashflows fromthefinancialassetshaveexpiredorhavebeentransferredandthegrouphastransferredsubstantiallyall the risks and rewards of ownership.
Measurement
Atinitialrecognition,theGroupmeasuresafinancialassetatitsfairvalueplus,inthecaseofafinancialassetnot atfairvaluethroughprofitorloss(FVTPL),transactioncoststhataredirectlyattributabletotheacquisitionofthe financialasset.TransactioncostsoffinancialassetscarriedatFVTPLareexpensedinprofitorloss.Financial 
(all figures in EUR millions unless statedotherwise)
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assetswithembeddedderivativesareconsideredintheirentiretywhendeterminingwhethertheircashflows aresolelypaymentofprincipalandinterest.Atradereceivablewithoutasignificantfinancingcomponentis initially measured at the transaction price.
Debt instruments 
SubsequentmeasurementofdebtinstrumentsdependsontheGroup’sbusinessmodelformanagingtheasset andthecashflowcharacteristicsoftheasset.TherearethreemeasurementcategoriesintowhichtheGroup classifies its debt instruments: 
-Amortisedcost:Assetsthatareheldforcollectionofcontractualcashflowswherethosecashflows representsolelypaymentsofprincipalandinterestaremeasuredatamortisedcost.Interestincomefrom thesefinancialassetsisincludedinfinanceincomeusingtheeffectiveinterestratemethod.Anygainorloss arisingonderecognitionisrecogniseddirectlyinprofitorlossandpresentedinothergains/(losses),together withforeignexchangegainsandlosses.Impairmentlossesarepresentedasaseparatelineiteminthe statement of profit or loss,
-FVOCI:Assetsthatareheldforcollectionofcontractualcashflowsandforsellingthefinancialassets,where theassets’cashflowsrepresentsolelypaymentsofprincipalandinterest,aremeasuredatFVOCI. MovementsinthecarryingamountaretakenthroughOCI,exceptfortherecognitionofimpairmentgains orlosses,interestrevenueandforeignexchangegainsandlosseswhicharerecognisedinprofitorloss. Whenthefinancialassetisderecognised,thecumulativegainorlosspreviouslyrecognisedinOCIis reclassifiedfromequitytoprofitorlossandrecognisedinothergains/(losses).Interestincomefromthese financialassetsisincludedinfinanceincomeusingtheeffectiveinterestratemethod.Foreignexchange gainsandlossesarepresentedinothergains/(losses)andimpairmentexpensesarepresentedasseparate line item in the statement of profit or loss,
-FVPL:AssetsthatdonotmeetthecriteriaforamortisedcostorFVOCIaremeasuredatFVTPL.Againorloss onadebtinvestmentthatissubsequentlymeasuredatFVTPLisrecognisedinprofitorlossandpresented net within other gains/(losses) in the period in which it arises.
Equity instruments
TheGroupsubsequentlymeasuresallequityinvestmentsatfairvalue.WheretheGroup’smanagementhas electedtopresentfairvaluegainsandlossesonequityinvestmentsinOCI,thereisnosubsequentreclassification of fair value gains and losses to profit or loss following the derecognition of the investment.
DividendsfromsuchinvestmentscontinuetoberecognisedinprofitorlossasotherincomewhentheGroup’s right to receive payments is established. 
ChangesinthefairvalueoffinancialassetsatFVTPLarerecognisedinotheroperatinggains/(losses)inthe statementofprofitorlossasapplicable.Impairmentlosses(andreversalofimpairmentlosses)onequity investments measured at FVOCI are not reported separately from other changes in fair value.
Impairment
Thegroupassessesonaforwardlookingbasistheexpectedcreditlossesassociatedwithitsdebtinstruments carriedatamortisedcost.Theimpairmentmethodologyapplieddependsonwhethertherehasbeenasignificant increaseincreditrisk.Fortradereceivables,thegroupappliesthesimplifiedapproachpermittedbyIFRS9,which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The Group recognises loss allowance for expected credit losses (ECLs) on:
•Financialassetsthataredebtinstrumentssuchasloans,debtsecurities,bankbalancesanddepositsand trade receivables that are measured at amortised cost,
•Financial assets that are debt instruments measured at fair value through other comprehensive income,
•Finance lease receivables and operating lease receivables,
•Contract assets under IFRS 15.
ECLsarerecognisedintwostages.Forcreditexposuresforwhichtherehasnotbeenasignificantincreasein creditrisksinceinitialrecognition,ECLsareprovidedforcreditlossesthatresultfromdefaulteventsthatare possiblewithinthenext12months(a12-monthECL).Forthosecreditexposuresforwhichtherehasbeena significantincreaseincreditrisksinceinitialrecognition,alossallowanceisrequiredforcreditlossesexpected overtheremaininglifeoftheexposure,irrespectiveofthetimingofthedefault(alifetimeECL).Thechangesin the loss allowance balance are recognised in profit or loss as an impairment gain or loss.
(all figures in EUR millions unless statedotherwise)
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Afinancialassetiscredit-impairedwhenoneormoreeventsthathaveadetrimentalimpactontheestimated futurecashflowsofthatfinancialassethaveoccurred.Evidencethatafinancialassetisimpairedincludes observable data about such events.
The Group applied the simplified approach for:
•alltradereceivablesorcontractassetsthatresultfromtransactionswithinthescopeofIFRS15,andthat contain a significant financing component in accordance with IFRS 15,
•allleasereceivablesthatresultfromtransactionsthatarewithinthescopeofIAS17andIFRS16(when applied).
Therefore,theGroupdoesnottrackchangesincreditrisk,butinsteadrecognisesalossallowancebasedon lifetimeECLsateachreportingdate.TheGrouphasestablishedaprovisionmatrixthatisbasedonitshistorical creditlossexperience,adjustedforforward-lookingfactorsspecifictothedebtorsandtheeconomic environment.
A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
q.Financial liabilities
Financial liabilities are classified as measured at amortised cost or FVTPL. 
AfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld‑for‑trading,itisaderivativeoritisdesignated assuchoninitialrecognition.FinancialliabilitiesatFVTPLaremeasuredatfairvalueandnetgainsandlosses, includinganyinterestexpense,arerecognisedinprofitorloss.TheGrouphasnotdesignatedanyfinancial liability as at fair value through profit or loss.
Otherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod. Interestexpenseandforeignexchangegainsandlossesarerecognisedinprofitorloss.Anygainorlosson derecognitionisalsorecognisedinprofitorloss.Thiscategorygenerallyappliestointerest-bearingloansand borrowings.
Initially,borrowingsarerecognisedinthebooksofaccountatthefairvaluenetoftransactioncostsassociated withtheborrowing.Subsequently,borrowingsarerecognisedinthebooksofaccountatamortisedcostusing the effective interest rate.
Theliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.When anexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthe termsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasthe derecognition of the original liability and the recognition of a new liability. 
Thedifferenceintherespectivecarryingamountsisrecognisedinthestatementofprofitorloss.Borrowingsare classifiedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodefersettlementoftheliabilityfor at least 12 months after the balance sheet date.
r.Derivative financial instruments and hedge accounting
Derivativesareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandare subsequentlyre-measuredattheirfairvalue.Themethodofrecognisingtheresultinggainorlossdependson whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Anygainsorlossesarisingfromchangesinthefairvalueofderivativesthatdonotqualifyforhedgeaccounting are taken directly to profit or loss for the period.
The Group designates certain derivatives as either: 
•Hedgesofaparticularriskassociatedwitharecognisedassetorliabilityorahighlyprobableforecast transaction (cash flow hedge), or 
•Hedges of a net investment in a foreign operation (net investment hedge).
Atinceptionofthehedgerelationship,theGroupdocumentstheeconomicrelationshipbetweenhedging instrumentsandhedgeditemsincludingwhetherchangesinthecashflowsofthehedginginstrumentsare expectedtooffsetchangesinthecashflowsofhedgeditems.TheGroupdocumentsitsriskmanagement objective and strategy for undertaking its hedge transactions.
(all figures in EUR millions unless statedotherwise)
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Cash flow hedge 
Theeffectiveportionofchangesinthefairvalueofderivativesthataredesignatedandqualifyascashflow hedgesisrecognisedinothercomprehensiveincomeandaccumulatedinthehedgingreserve.Thegainorloss relatingtotheineffectiveportionisrecognszedimmediatelyintheincomestatementunder‘otherfinancial income or costs – net’. 
Whenforwardcontractsareusedtohedgeforecasttransactions,theGroupgenerallydesignatesonlythechange infairvalueoftheforwardcontractrelatedtothespotcomponentasthehedginginstrument.Gainsorlosses relatingtotheeffectiveportionofthechangeinthespotcomponentoftheforwardcontractsarerecognisedin thecashflowhedgereservewithinequity.Thechangeintheforwardelementofthecontractthatrelatestothe hedgeditem(‘alignedforwardelement’)isrecognisedwithinOCIinthecostsofhedgingreservewithinequity.In somecases,theentitymaydesignatethefullchangeinfairvalueoftheforwardcontract(includingforward points)asthehedginginstrument.Insuchcases,thegainsorlossesrelatingtotheeffectiveportionofthechange in fair value of the entire forward contract are recognised in the cash flow hedge reserve within equity.
Amountsaccumulatedinequityarereclassifiedtoprofitorlossintheperiodswhenthehedgeditemaffects profit or loss. 
Ifthehedgenolongermeetsthecriteriaforhedgeaccountingorthehedginginstrumentissold,expires,is terminatedorisexercised,thenhedgeaccountingisdiscontinuedprospectively.Whenhedgeaccountingfor cashflowhedgesisdiscontinued,theamountthathasbeenaccumulatedinthehedgingreserveremainsin equityuntil,forahedgeofatransactionresultingintherecognitionofanon-financialitem,itisincludedinthe non-financialitem’scostonitsinitialrecognitionor,forothercashflowhedges,itisreclassifiedtoprofitorloss inthesameperiodorperiodsasthehedgedexpectedfuturecashflowsaffectprofitorloss.Ifthehedgedfuture cashflowsarenolongerexpectedtooccur,thentheamountsthathavebeenaccumulatedinthehedgingreserve andthecostofhedgingreserveareimmediatelyreclassifiedtotheincomestatementunder‘otherfinancial income or costs – net’.  
Net investment hedge
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. 
Anygainorlossonthehedginginstrumentrelatingtotheeffectiveportionofthehedgeisrecognisedinother comprehensiveincomeandaccumulatedinreservesinequity.Thegainorlossrelatingtotheineffectiveportion isrecognisedimmediatelyintheincomestatement.Gainsandlossesaccumulatedinequityareincludedinthe income statement when the foreign operation is partially disposed of or sold. 
Hedge is effective if:
•There is economic relationship between hedged item and hedging instrument,
•The effect of credit risk does not dominate the value changes, 
•Theactualhedgeratio(designatedamountofhedgeditem/designatedofhedgedinstrument)isbasedon the amounts the Group is us using for risk management.
TheGroupusesloansasahedgeofitsexposuretoforeignexchangeriskonitsinvestmentsinforeign subsidiaries. 
s.Share based payments and employee benefits
Share-based payments
The Group has both equity-settled share-based programs and cash-settled share-based programs.
Equity-settled transactions
Thecostofequity-settledtransactionswithemployeesismeasuredbyreferencetoawardingfairvalueatthe grant date. 
Thecostofequity-settledtransactionsisrecognised,togetherwithacorrespondingincreaseinequity,overthe periodinwhichtheperformanceconditionsarefulfilled,endingonthedateonwhichtherelevantemployees becomefullyentitledtotheaward(“vestingdate”).Thecumulativeexpenseisrecognisedforequity-settled transactionsateachreportingdateuntilthevestingdatereflectstheextenttowhichthevestingperiodhas expiredandthenumberofawardsthat,intheopinionoftheparent’sManagementBoardatthatdate,basedon the best available estimate of the number of equity instruments, will ultimately vest.
(all figures in EUR millions unless statedotherwise)
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Cash-settled transactions
Cash-settledtransactionshavebeenaccountedsince2014asaresultofamodificationintroducedtoexisting share-basedprograms.Someprogramsweremodifiedsothattheymaybesettledincashorinsharesupon decision of a participant. As a result, the Group re-measures the liability related to cash-settled transaction.
Theliabilityissubsequentlymeasuredatitsfairvalueateverybalancesheetdateandrecognisedtotheextent thattheservicevestingperiodhaselapsed,withchangesinliabilityvaluationrecognisedinincomestatement. Cumulatively,atleastattheoriginalgrantdate,thefairvalueoftheequityinstrumentsisrecognisedasan expense (share-based payment expense).
Atthedateofsettlement,theGroupremeasurestheliabilitytoitsfairvalue.Theactualsettlementmethod selected by the employees, will dictate the accounting treatment: 
•If cash settlement is chosen, the payment reduces the fully recognised liability, 
•Ifthesettlementisinshares,thebalanceoftheliabilityistransferredtoequity,beingconsiderationforthe shares granted. Any previously recognised equity component shall remain within equity.
Long-term employee benefits based on years in service
Thenetvalueofliabilitiesrelatedtolong-termemployeebenefitsistheamountoffuturebenefitswhichwere vestedintheemployeesinconnectionwiththeworktheyhavecarriedouttheminthecurrentandpastperiods. Theliabilitywasaccountedforbasedontheestimatedfuturecashoutflows,andatthebalancesheetdate,the amountstakeintoconsiderationtherightsvestedintheemployeesrelatingtopastyearsandtothecurrentyear.
Retirement benefit contributions
Duringthefinancialperiod,theGrouppaysmandatorypensionplancontributionsdependentontheamountof grosswagesandsalariespayable,inaccordancewithlegallybindingregulations.Thepublicpensionplanisbased onthepay-as-you-goprinciple,i.e.theGrouphastopaycontributionsinanamountcomprisingapercentageof theremunerationwhentheymature,andnoadditionalcontributionswillbedueiftheCompanyceasesto employtherespectivestaff.Thepublicplanisadefinedcontributionpensionplan.Thecontributionstothe publicplanaredisclosedintheincomestatementinthesameperiodastherelatedremuneration,under“Payroll and employee benefits”.
t.Provisions
ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapast event,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettle the obligationandareliableestimatecanbemadeoftheamountoftheobligation.WhentheGroupexpectssome orallofaprovisiontobereimbursed,forexample,underaninsurancecontract,thereimbursementisrecognised asaseparateasset,butonlywhenthereimbursementisvirtuallycertain.Theexpenserelatingto aprovisionis presented in the statement of profit or loss net of any reimbursement.
Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethat reflects,whenappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseinthe provision due to the passage of time is recognised as a finance cost.
Costs of bringing the location to the condition it had been in before the lease agreement was signed
DependingonparticularcontractstheGroupmaybeobligedtobringthelocationtotheconditionithadbeenin beforetheleaseagreementwassigned.Assetretirementprovisioncostsareprovidedforatthepresentvalueof expectedcoststosettletheobligationusingestimatedcashflowsandarerecognisedaspartofthecostofthe relevant asset (leasehold improvement asset within PPE section).
Theunwindingofthediscountisexpensedasincurredandrecognisedinthestatementofprofitor lossasa finance cost. The estimated future costs of decommissioning are reviewed periodically and adjusted if needed. 
u.Equity
Equity includes equity attributable to shareholders of the parent and non-controlling interests.
Equity attributable to shareholders of the parent is grouped into the following: 
(all figures in EUR millions unless statedotherwise)
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•Share capital,
•Reserves,
•Retained earnings,
•Translation reserve.
The effect of the following transactions is presented under reserves:
•Sharepremium (surplusovernominalamount)andadditionalcontributionstocapitalwithouttheissueof shares made by the shareholders prior to becoming public entity,
•Effect of accounting for put options over non-controlling interests, 
•Effect of accounting for share-based payments, 
•Treasury shares,
•Effect of hedges valuation,
•Effect of accounting for transactions with non-controlling interests.
Incrementalcostsdirectlyattributabletotheissueofnewsharesareshowninequityasadeductionfromthe proceeds.Theincometaxeffectrelatingtotransactioncostsofanequitytransactionisalsoaccountedforin equity.
Treasury shares
Whensharesrecognisedasequityarerepurchased,theamountoftheconsiderationpaid,whichincludesdirectly attributablecosts,isrecognisedasadeductionfromequity.Repurchasedsharesareclassifiedastreasuryshares and are presented in “Reserves”. 
41.Changes in accounting policies, reclassification and restatement of comparatives summary
•Amendment to IFRS 16 - Covid-19-Related Rent Concessions
InMay2020,theIASBamendedIFRS16toprovide  relieftolesseesfromapplyingtheIFRS16guidanceonlease modificationstorentconcessionsarisingasadirectconsequenceofthecovid-19pandemic.Lesseesapplythe practicalexpedientretrospectively,recognisingthecumulativeeffectofinitiallyapplyingtheamendmentasan adjustmenttotheopeningbalanceofretainedearnings(orothercomponentofequity,asappropriate)atthe beginning of the annual reporting period in which the amendment is first applied.  
Asapracticalexpedient,alesseemayelectnottoassesswhetheracovid-19relatedrentconcessionfromalessor is aleasemodification.Alesseethatmakesthiselectionaccountsforanychangeinleasepaymentsresulting fromthecovid-19relatedrentconcessionthesamewayitwouldaccountfor thechangeunderIFRS16,ifthe change were not a lease modification.  
Thepracticalexpedientappliesonlytorentconcessionsoccurringasadirectconsequenceofthecovid-19 pandemic  and only if all of the following conditions are met:  
•Thechangeinleasepaymentsresultsinrevisedconsiderationfortheleasethatissubstantiallythe same as, or less than, the consideration for the lease immediately preceding the change. 
•Anyreductioninleasepaymentsaffectsonlypaymentsoriginallydueonorbefore30June2021(forexample,  arentconcessionwouldmeetthisconditionifitresults inreducedleasepaymentsbefore30June2021and increased lease payments that extend beyond 30 June 2021). 
•There is no substantive change to other terms and conditions of the lease.
TheGroupappliedtheamendmentsintheseconsolidatedfinancialstatements.Theeffectofapplicationofthe amendment is presented as “Rent concessions” items.
•Other newly applied standards, amendments and interpretations
Theamendmentsandinterpretationsbelowwereappliedin2020andhadnosignificantimpactonthe accounting policies applied.
Amendments to References to the Conceptual Framework in IFRS Standards
TheIASBissuedtheConceptualFrameworkinMarch2018.Itsetsoutacomprehensivesetofconceptsfor financialreporting,standardsetting,guidanceforpreparersindevelopingconsistentaccountingpoliciesand 
(all figures in EUR millions unless statedotherwise)
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assistancetoothersintheireffortstounderstandandinterpretthestandards.ThechangestotheConceptual FrameworkaffecttheapplicationofIFRSinsituationswherepreviouslynostandardappliedto aparticular transaction or event. Amendments are effective and applied by Group from 1 January 2020.
Amendments to IAS 1 and IAS 8: Definition of Material
Thenewdefinitionof“material”statesthat,’Informationismaterialifomitting,misstatingorobscuringitcould reasonablybeexpectedtoinfluencedecisionsthattheprimaryusersofgeneralpurposefinancialstatements makeonthebasisofthosefinancialstatements,whichprovidefinancialinformationaboutaspecificreporting entity.’Theamendmentsclarifythatmaterialitywilldependonthenatureormagnitudeofinformation,orboth. Anentitywill needtoassesswhethertheinformation,eitherindividuallyorincombinationwithother information,ismaterialinthecontextofthefinancialstatements.Amendmentsareeffectiveandappliedby Group from 1 January 2020.
Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform 
Theamendmentsprovidetemporaryreliefswhichenablehedgeaccountingtocontinueduringtheperiodof uncertaintybeforethereplacementofanexistinginterestratebenchmarkwithanalternativenearlyrisk-free interestrate(anRFR).Amendments areeffectiveforannualperiodsbeginningonorafter1January2020anddo not apply to Group.
Amendments to IFRS 3 Business Combinations: Definition of a Business
TheIASBissuedamendmentstothedefinitionofabusinessinIFRS3BusinessCombinationstohelpentities determinewhetheranacquiredsetofactivitiesandassetsisabusinessornot.Theyclarifytheminimum requirementsforabusiness,removetheassessmentofwhethermarketparticipantsarecapableofreplacing anymissingelements,addguidancetohelpentitiesassesswhetheranacquiredprocessissubstantive,narrow  thedefinitionsofabusinessandofoutputs,andintroduceanoptionalfairvalueconcentrationtest.The amendment was applied prospectively since 2020 by the Group.
42.Standards issued but not yet effective
Belowamendmentstostandardsareeffectiveforannualperiodsbeginningafter1January2021andearlier applicationispermitted.TheGrouphasnotearlyadoptedtheneworamendedstandardsinpreparingthese consolidated financial statements. 
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 
Theamendmentsprovidetemporaryreliefswhichaddressthefinancialreportingeffectswhenaninterbank offeredrate(IBOR)isreplacedwithanalternativenearlyrisk-freeinterestrate(RFR):practicalexpedientfor changesinthebasisfordeterminingthecontractualcashflowsasaresultofIBORreform;relieffrom discontinuinghedgingrelationships;reliefinareaofseparatelyidentifiableriskcomponents.Amendmentsare effective for reporting periods beginning on or after 1 January 2021.
BelowstandardsandamendmentsandareissuedbutnotyetapprovedbyEuropeanUnion.TheGroupwillapply the standard once approved by the European Union. 
IFRS 17 Insurance Contracts
IFRS17InsuranceContracts(IFRS17)isacomprehensivenewaccountingstandardforinsurancecontracts coveringrecognitionandmeasurement,presentationanddisclosure.IFRS17willreplaceIFRS4Insurance Contracts.IFRS17appliestoalltypesofinsurancecontracts(i.e.,life,non-life,directinsuranceandre-insurance), regardlessofthetypeofentitiesthatissuethem,aswellastocertainguaranteesandfinancialinstrumentswith discretionaryparticipationfeatures.Afewscopeexceptionswillapply.TheoverallobjectiveofIFRS17isto provideanaccountingmodelforinsurancecontractsthatismoreusefulandconsistentforinsurers.Incontrast totherequirementsinIFRS4,whicharelargelybasedongrandfatheringpreviouslocalaccountingpolicies,IFRS 17providesacomprehensivemodelforinsurancecontracts,coveringallrelevantaccountingaspects. Additionally,inJune2020,theIASBissuedamendmentstoIFRS17.IFRS17iseffectiveforreportingperiods beginning on or after 1 January 2023. It is not expected that standard will have a material impact on Group.
Amendments to IAS 1: Classification of liabilities as current or non-current
(all figures in EUR millions unless statedotherwise)
84
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
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Theamendmentsspecifythattheconditionswhichexistattheendofthereportingperiodarethosewhichwill beusedtodetermineifarighttodefersettlementofaliabilityexists.Managementexpectationsaboutevents afterthebalancesheetdate,forexampleonwhetheracovenantwillbebreached,orwhetherearlysettlement willtakeplace,arenotrelevant.Theamendmentsclarifythesituationsthatareconsideredsettlementofa liability.Thenewguidancewillbeeffectiveforannualperiodsstartingonorafter1January2023.The amendmentsaretobeappliedprospectivelyandwillbereflectedinaccountingforfuturetransactionsofGroup. The Group has not finalized yet its analysis of impact on future reporting.
Amendments to IFRS 3 -Reference to the Conceptual Framework 
Theamendmentsaddanexceptiontotherecognitionprinciple ofIFRS3toavoidtheissueofpotential‘day2’ gainsorlossesarisingforliabilitiesandcontingentliabilitiesthatwouldbe withinthescopeofIAS37Provisions, ContingentLiabilities andContingentAssetsorIFRIC21Levies,ifincurredseparately. Theexceptionrequires entitiestoapplythecriteriainIAS37orIFRIC21,respectively,insteadoftheConceptualFramework,todetermine whether a present obligation exists at the acquisition date.  
Atthesametime,theamendmentsaddanewparagraphtoIFRS3toclarifythatcontingentassetsdonotqualify for recognition at the acquisition date.  
Theamendmentsmustbeappliedprospectively.Earlierapplicationispermitted.Theamendments areeffective for annual periods beginning on or after 1 January 2022.
Amendments to IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use 
Theamendmentprohibitsentitiesfromdeductingfromthecostofanitemofproperty,plantandequipment, anyproceedsofthesaleofitemsproducedwhilebringingthatassettothelocationandconditionnecessaryfor ittobecapableofoperatinginthemannerintendedbymanagement.Instead, anentityrecognisestheproceeds fromsellingsuchitems, andthecostsofproducingthoseitems,inprofitorloss. Theamendmentiseffectivefor annual periods beginning on or after 1 January 2022. 
Amendments to IAS 37 -Onerous Contracts – Costs of Fulfilling a Contract
Theamendmentsspecifywhichcostsanentityneedstoincludewhenassessingwhetheracontractisonerous orloss-making.Theamendmentsapplya‘directlyrelatedcostapproach’. Thecoststhatrelatedirectlytoa contracttoprovidegoodsorservicesincludebothincrementalcosts(e.g.,thecostsofdirectlabourandmaterials) andanallocationofcostsdirectlyrelated tocontractactivities(e.g.,depreciationofequipmentusedtofulfilthe contractaswellascostsofcontractmanagementandsupervision).Generalandadministrativecostsdonot relatedirectlytoacontractandareexcludedunlesstheyareexplicitlychargeabletothecounterpartyunderthe contract. The amendments are effective for annual periods beginning on or after 1 January 2022. 
AmendmentstoIAS1PresentationofFinancialStatementsandIFRSPracticeStatement2:Disclosureof 
Accounting policies.
Theamendmentsspecifyrequirementsandprovideguidancetohelpentitiesmakemoreeffectiveaccounting policy disclosures. The amendments are effective for annual periods beginning on or after 1 January 2023.
AmendmentstoIAS8Accountingpolicies,ChangesinAccountingEstimatesandErrors:DefinitionofAccounting 
Estimates
TheamendmentsintroducethedefinitionofaccountingestimateandincludeotheramendmentstoIAS8tohelp entitiesdistinguishchangesinaccountingestimatesfromchangesinaccountingpolicies.Theamendmentsare effective for annual periods beginning on or after 1 January 2023.
AmRestGroupConsolidatedFinancialStatementsfortheyearended31December2020
Signatures of the Board of Directors
Madrid, 24 February 2021
José Parés Gutiérrez
Chairman of the Board
Luis Miguel Álvarez PérezVice-Chairman of the Board
Carlos Fernández GonzálezMember of the Board
Romana Sadurska
Member of the Board
Pablo Castilla ReparazMember of the Board
Mónica Cueva Díaz 
Member of the Board
Emilio Fullaondo Botella
Member of the Board
86
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1
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ConsolidatedDirectors’Reportfortheyearended31December2020AmRestHoldingsSE24FEBRUARY2021
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3
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Letter to shareholders..........................................................................................................................................................................4
Financial highlights (consolidated data).............................................................................................................................................6
Group Business Overview....................................................................................................................................................................7
Financial and asset position of the Group.......................................................................................................................................11
Brands operated by the Group.........................................................................................................................................................17
Key investments..................................................................................................................................................................................21
Planned investment activities............................................................................................................................................................23
Significant events and transactions in 2020....................................................................................................................................24
External Debt.......................................................................................................................................................................................25
Shareholders of AmRest Holdings SE...............................................................................................................................................25
Changes in the Parent Company’s Governing Bodies....................................................................................................................26
Changes in the number of  shares held by members of the Board of Directors........................................................................26
Transactions on own shares concluded by AmRest.......................................................................................................................27
Dividends paid and received..............................................................................................................................................................27
Average period of payment to suppliers..........................................................................................................................................27
Factors impacting the Group’s development...................................................................................................................................28
Basic risks and threats the Group is exposed to.............................................................................................................................28
Activity in Research and Development area....................................................................................................................................33
NON-FINANCIAL INFORMATION STATEMENT OF AMREST HOLDINGS SE FOR 2020..................................................................35
INTRODUCTION..............................................................................................................................................................................36
AMREST’S BUSINESS MODEL AND OPERATIONS IN 2020.........................................................................................................36
MATERIALITY ANALYSIS.................................................................................................................................................................42
CORPORATE SOCIAL RESPONSIBILITY STRATEGY......................................................................................................................44
RISK MANAGEMENT AT AMREST..................................................................................................................................................45
FOOD-RELATED MATTERS.............................................................................................................................................................48
ENVIRONMENTAL ISSUES..............................................................................................................................................................54
EMPLOYEE ISSUES..........................................................................................................................................................................63
SOCIAL ISSUES................................................................................................................................................................................72
KEY NON-FINANCIAL FACTORS.....................................................................................................................................................77
GRI Standards content index........................................................................................................................................................81
GRI Standards content index........................................................................................................................................................81
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED COMPANIES FOR THE YEAR ENDED 31 DECEMBER 2020.............84
SIGNATURESOF THE BOARD OF DIRECTORS................................................................................................................................153
4
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Dear Shareholders,
It is a great pleasure for me to present the AmRest Holdings SE financial report for the full year 2020.
Theunprecedentedeventsandchallengeswehaveallbeenfacingduringthepastyearmeanthateachand everyoneofushasbeenputtothetest.Wehavebeentestedinourabilitytoquicklyaccept,understand, andadapttochange,bothonapersonalandaprofessionallevel.Thosechangeshavebeenaffectingall aspectsofourdailylives;theylimitedandalteredthewaywemeet,work,travel,teach,andeatand,atleast temporarily,alsochangedthewayourindustryhasbeendoingbusinessinaddressingthosechangesin consumer habits.
Naturally,certainindustrieshavebeenmoreexposedthanotherstotheCOVID-19pandemicandits consequences.AmongthosemostaffectedhavebeencompaniesengagedinTravel,HotelandFoodservice astheirabilitytodobusinessandreachcustomerswassignificantlylimitedbylock-downmeasures announced by governments to stop the spread of the virus.
AtAmRest,givenourexposuretoChina,webegantoseeeventsunfoldingearlyon.Thisallowedustolearn fromtheexperienceandbebetterpreparedforthepandemicasitspreadintoothergeographiesandas lock-downmeasureswereimposed.Withthoselessonsathand,wetookquickandboldactionstoimplement healthandsafetyproceduresaimedatensuringasafeenvironmentforcustomersaswellasemployees.We alsotookstepstomitigatetheimpactofbeingforcedtoclosesomeofoursaleschannels,allowingfora convenient and seamless transition to other channels, such as delivery, drive-through, and take-out.
Theworkwehavedoneoverthepastfewyearstoexecuteouronlineanddeliverystrategyhasbecomea majoradvantageinaddressingthenewchallengesandallowedustosubstantiallygrowthesechannelsand absorbsomeofthelosseswehavebeenfacingduetotheobligatoryclosureofthedine-inchannel.In2020, salesthroughdelivery,drive-throughandtakeoutrepresented64%oftotalsales,from45%in2019. Despite limitationsonopeningandfreelyoperatingourstores,weareendingtheyearwith92%ofourrestaurants open and serving customers through the sales channels still available to us.
Inadditiontoharvestingthebenefitsofourearlystrategicfocusononlineanddeliverychannelsevenbefore COVID-19,itistherelationshipsbuiltovermanyyearswithourkeystakeholderssuchasbanks,suppliers, landlords,franchisees,andfranchisors,whichhavemostfavoredusduringthisdifficultperiod.Iamvery gratefulforthosepartnershipsandforourjointeffortstoadapt,innovate,andaddressthenewenvironment and challenges we are all operating in.
ItisbecauseofourinitiativesaimedatmitigatingtheimpactofCOVID-19andlock-downmeasures,thatthe AmRestgroupsalesachievedin2020amountedtoEUR1522.9million,agoodnumberunderthe circumstanceseventhoughitrepresentsa22.4%declineversusthepreviousyear.TheconsolidatedEBITDA forthegroupreachedEUR201.7million,a48.8%declinecomparedtotheresultsachievedin2019.These resultsnaturallyshowcasethedifficultiestooperatestoresintheCOVID-19environment,butweare confidentwewillregainfullstrengthandperformanceoncerestrictionsareliftedacrossourgeographies–something we expect to happen during 2021.
In2020,inlinewiththeprudentapproachweadoptedgiventheenvironmentwehavebeenoperatingin, AmRestopened88newrestaurants.Althoughthisnumberislowerthanouropeningsinrecentyears,the total store count as of December 31st, 2020 was a remarkable 2 337 restaurants.
Inexecutingourstrategy,wemonetizedourstakeinthefooddeliveryplatformGlovo,bysellingourfull7.5% staketoDeliveryHeroandgeneratingproceedsofEUR76.2millioninatransactionweclosedinDecember 2020.Thesaleisalignedtoourmulti-aggregatorstrategyintermsofdelivery,andthevaluationachievedis anoutcomeweareverypleasedwith.Regardlessofthedisposalofthisstake,AmRestwillcontinueto cooperate with and sustain its partnership with Glovo going forward.
Ithasbeenthecombinationofgreatpeople,brands,andscale,whichhasallowedustoapproachthe challengeswithconfidenceandboldmeasures.Theinitiativeswehavebeenexecutingallowedusto overcometheshort-termdisruptiontoourindustryand,moreimportantly,webelievetheywillturninto significant strategic benefits and growth drivers in the longer term.
Iwouldliketotakethisopportunitytothankourwholeteam—particularlyouremployeesservingcustomers onthefrontline—formakingAmRestsuchagreatanduniquecompanyandtoexpressappreciationonbehalf 
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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oftheBoardofDirectorstoourshareholdersandstakeholdersfortheirtrustandcontinuedsupportof AmRest.
José Parés Gutiérrez
Chairman of the Board of Directors
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Financial highlights (consolidated data)
year ended 
3 months ended 
31 December 2020
31 December 2019
31 December 2020
31 December 2019
Revenue
1 522.9
1 961.5
 397.5
 529.0
EBITDA*
 201.7
 394.4
 46.9
 128.0
EBITDA margin
13.2%
20.1%
11.8%
24.2%
Adjusted EBITDA**
 205.5
 369.2
 48.0
 96.4
Adjusted EBITDA margin
13.5%
18.8%
12.1%
18.2%
Profit from operations (EBIT)
(142.5)
 105.6
(28.9)
 32.6
EBIT margin
(9.4%)
5.4%
(7.3%)
6.2%
Profit before tax
(201.4)
 93.4
(41.0)
 55.5
Net profit
(183.7)
 66.9
(23.9)
 38.7
Net margin
(12.1%)
3.4%
(6.0%)
7.3%
Net profit attributable to non-controlling interests
(1.7)
 1.8
(0.5)
 0.7
Net profit attributable to equity holders of the parent
(182.0)
 65.1
(23.4)
 38.0
Cash flows from operating activities
 178.8
 325.7
 24.2
 94.0
Cash flows from investing activities
 11.7
(220.0)
 51.3
(62.7)
Cash flows from financing activities
(95.0)
(117.1)
(50.1)
(35.3)
Total cash flows, net
 95.5
(11.4)
 25.4
(4.0)
Average weighted number of ordinary shares for basic earnings per shares (in thousands)
219 169
220 567
219 149
219 232
Average weighted number of ordinary shares for diluted earnings per shares (in thousands)
219 346
221 480
219 213
219 931
Basic earnings per share (EUR)
(0.83)
0.30
(0.11)
0.17
Diluted earnings per share (EUR)
(0.83)
0.29
(0.11)
0.17
Declared or paid dividend per share
-
-
-
-
* EBITDA – Operating profit before depreciation, amortization and impairment losses.
**AdjustedEBITDA–EBITDAadjustedfornewopeningsexpenses(Start-upcosts),M&Aexpenses;allmaterialexpensesconnectedwith successfulacquisitioncoveringprofessionalservices(legal,financial,other)directlyconnectedwithatransactionorprofit/lossonsale ofshares/entitiesandeffectofSOPexercisemethodmodification(differenceinaccountingcostofemployeebenefitsaccountedunder cash settled versus equity settled option plan).
year ended
31 December 2020
31 December 2019
Total assets
2 114.4
2 435.0
Total liabilities 
1 849.7
1 958.3
Non-current liabilities 
1 371.6
1 459.4
Current liabilities
 478.1
 498.9
Equity attributable to shareholders of the parent
 257.8
 467.2
Non-controlling interests 
 6.9
 9.5
Total equity
 264.7
 476.7
Share capital
 22.0
 22.0
Number of restaurants
2 337
2 336
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Group Business Overview
Basic services provided by the Group
AmRestHoldingsSE(“AmRest”,“Company”)withitssubsidiaries(the“Group”)isoneoftheleadingpubliclylisted Europeanrestaurantoperators,presentin25countriesofEuropeandAsia.TheportfoliooftheGroupconsistsof fourfranchisedbrands(KFC,PizzaHut,Starbucks,BurgerKing)andfourteenproprietarybrandsincludingnine virtualbrands(LaTagliatella,BlueFrog,Kabb,Bacoa,SushiShop,andvirtualbrands:Pokaï,Lepieje,‘OiPoke,Moya MisaRamen,PierwszeiDrugie,SushiTone,Eat’sFine,VivaSalad!andCremontano).Theofferofvirtualbrandsin PolandisavailablealsounderFoodAboutconcept,thatenablesorderingdifferentvirtualbranddisheswithinone order.
Asat31December2020,AmRestmanagedthenetworkof2337restaurants.Giventhecurrentscaleofthe business,everydayalmost45thousandofAmRestemployeesdeliverdelicioustasteandexceptionalserviceat affordable prices, in accordance with the Company’s unique culture.
Nowadays,theGroupmanagesthenetworkofrestaurantsacrossfoursegments,whicharealignedwiththemain geographical regions of its operations:
■
CentralandEasternEurope(“CEE”),wherehistoricallytheCompanywasfoundedandopeneditsfirst restaurantunderthenameofPizzaHut;todayCEEdivisioncoverstheregionof10countries(Poland,Czech Republic,Hungary,Bulgaria,Serbia,Croatia,Romania,Austria,SloveniaandSlovakia)andwith1027 restaurants under umbrella it accounts for ca. 45% of revenues of the Group;
■
Russia,whereAmRestmanagesthenetworkofKFCandPizzaHutrestaurants.Thesegmentincludesalso Pizza Hut restaurants located in Armenia and Azerbaijan;
■
WesternEurope(“WE”),asegmentwhichprimarilyconsistsofSpain,FranceandGermany,whereboth franchisedandproprietarybrandsareoperated;asaresultofdynamicorganicexpansionsupportedby recentacquisitions,divisionofWesternEuropehasbecomeasignificantoperatingsegmentoftheGroup consisting of 11 countries and generating ca. 38% of AmRest’s revenues;
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China, where the networks of two proprietary brands are operated: Blue Frog and Kabb.
Oneadditionalsegmentwhichis“Other”doesnotincludeanynetworkofownedorfranchisedrestaurantsand accountsfortheresultsofSCMSp.zo.o.alongwithitssubsidiariesandothersupportcostsandfunctionsrendered fortheGroupornotallocatedtoapplicablesegmentssuchas,forinstance,ExecutiveTeam,Controlling,Treasury, InvestorRelations,Mergers&Acquisitions.ThedetaileddescriptionofthesegmentsisincludedinNote5ofthe Consolidated Financial Statements.
The operations of AmRest are well-diversified across five main categories of restaurant industry:
1)Quick Service Restaurants (“QSR”), represented by KFC and Burger King,
2)Fast Casual Restaurants (“FCR”), represented by Pizza Hut Delivery and Express, Bacoa and Sushi Shop,
3)Casual Dining Restaurants (“CDR”), represented by Pizza Hut Dine-in, La Tagliatella, Blue Frog and KABB
4)Coffee category, represented by Starbucks.
5)Virtualbrands,whoseofferisavailableonlyonline,representedbyPokaï,Lepieje,‘OiPoke,MoyaMisa Ramen, Pierwsze i Drugie, Sushi Tone, Eat’s Fine, Viva Salad! and Cremontano. 
WithinthecurrentbusinessmodeloftheGroup,AmRestoperatesitsnetworkofrestaurantsasafranchisee (forthebrandsofKFC,PizzaHut,StarbucksandBurgerKing),aswellasabrandownerandfranchisor(for thebrandsofLaTagliatella,BlueFrog,SushiShopandBacoa).Inaddition,withintheconceptsofPizzaHut DeliveryandPizzaHutExpresstheCompanyactsasamaster-franchisee,havingtherightstosub-license these brands to third parties.
AmRestrestaurantsprovideon-sitecateringservices,take-awayservices,drive-inservicesatspecialsales points(“DriveThru”),aswellasdeliveriesofordersplacedonlineorbytelephone.Nowadays,fooddelivery is the fastest growing segment of AmRest operations.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Activity in aggregator area
On31August2017AmRestacquiredfromDeliveryHeroGmbH51%ofsharesinRestaurantPartnerPolska (“RPP”),becomingitsmajorityshareholder.RPPoperatesaplatformofPizzaPortal.pl–Polishaggregator enablingonlineorderingandsubsequentdeliveryofthemealstothecustomers.On13March2019AmRest acquired the remaining stake in RPP, becoming the sole owner of the company.
On13August2019theGroupsignedtheagreementwithGlovoapp23,S.L.forthetransferfromAmRestto Glovoof100%sharesinRestaurantPartnerPolskaSp.zo.o.On28October2019AmResttransferred100% ofsharesinPizzaPortaltoGlovo.On24January2020theCompanyannouncedfinalsettlementofthe transaction. As a result AmRest held 7.5% stake in Glovo’s share capital (non-diluted).
On19October2020AmRestreportedthatithadreachedanagreementwithDeliveryHeroforthetransfer ofits7.5%stake(non-diluted)inGlovoapp23,SLforanaggregateamountofEUR76.2million.On31 December 2020 AmRest informed that the transfer of AmRest’s stake in Glovo has been closed.
Structure of revenues
ConsolidatedrevenuesofAmRestGroupamountedtoEUR1522.9millionin2020,whichrepresenteda 22.4% reduction compared with the previous year (EUR -438.6 million) as a result of:
1)Atthebeginningoftheyear,COVID-19outbreakcrisisstartedinChinaandduringthesecondquarter restrictionswereimplementedtocontainthespreadofthevirusinmanyofourmarkets,limiting the ability to effectively operate restaurants.
2)Withthegradualeasingofrestrictionsandre-openingofstorestowardsthesecondpartofQ22020, overallsalesandpositivesalestrendsincomparablerestaurants(“like-for-like,LFL”)tangibly improved on a month on month basis.
3)Duringthefourthquarterof2020,giventheemergenceofa‘secondwave’ofCOVID-19casesvisible acrossmostofourgeographies,restrictionshaveagainbeenputinplaceaffectingourindustry’s ability to open restaurants and the sales channels we are allowed to operate.
Table 1Structure of Group’s revenue
year ended
31 December 2020
31 December 2019
Revenue
Amount
Share
Amount
Share
Central and Eastern Europe
685.5
45.0%
839.3
42.8%
Western Europe
582.8
38.3%
796.6
40.6%
Russia
152.5
10.0%
206.6
10.5%
China
76.4
5.0%
89.6
4.6%
Other*
25.7
1.7%
29.4
1.5%
Total
1 522.9
100.0%
1 961.5
100.0%
*Revenues of SCM Group and Pizzaportal.pl (until end of October 2019)
TheseasonalityofsalesandinventoriesofAmRestGroupisnotsignificantwhichistypicalforthewhole restaurantindustry.Therestaurantstypicallyachievelowerrevenuesinthefirsthalfoftheyear,whichisthe resultoflowernumberofdaysofsalesinFebruaryaswellasrelativelylessfrequentvisitsofcustomersin restaurants.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Number of AmRest restaurants broken down by brands as at 31 December 2020
Brand
Restaurants*
Equity share
Franchise share
Share in total
Franchised
1 825
87%
13%
78%
KFC
895
100%
0%
38%
PH
463
52%
48%
20%
Starbucks*
386
94%
6%
17%
Burger King
81
100%
0%
3%
Own
512
54%
46%
22%
La Tagliatella
242
33%
67%
10%
Sushi Shop
183
67%
33%
8%
Blue Frog
75
91%
9%
3%
Bacoa
7
14%
86%
<1%
Kabb
1
100%
0%
0%
Shadow Kitchen
4
100%
0%
<1%
*Starbucks franchise share refers to Starbucks licensed stores for which AmRest offers supply service but does not receive any royalty
Number of AmRest restaurants broken down by countries as at 31 December 2020
Region
Restaurants*
Equity share
Franchise share
Share in total
Total
2 337
80%
20%
100%
CEE
1027
100%
0%
44%
Poland
567
100%
0%
24%
Czech
202
100%
0%
9%
Hungary
133
100%
0%
6%
Romania
60
100%
0%
3%
Other CEE*
65
100%
0%
3%
WE
971
56%
44%
42%
Spain
334
49%
51%
14%
France
327
55%
45%
14%
Germany**
262
64%
36%
11%
Other WE*
48
54%
46%
2%
Russia*
267
85%
13%
11%
China
72
92%
8%
3%
*Other CEE includes Bulgaria, Serbia, Slovakia, Croatia, Austria and Slovenia; Other WE includes Belgium, UAE, Switzerland, Portugal, UK, Italy, Luxembourg and Saudi Arabia; Russia includes also Armenia and Azerbaijan
**Germany franchise share includes Starbucks licensed stores for which AmRest offers supply service but does not receive any royalty
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Number of AmRest Group restaurants as at 31 December 2018-2020*
AmRest Group revenue for the 12 months ended 31 December 2018-2020
Image
Image
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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AmRest Group EBITDA for the 12 months ended 31 December 2018-2020
Financial and asset position of the Group
Revenue
ConsolidatedrevenuesoftheAmRestGroupamountedtoEUR1522.9millionin2020andwere22.4%lower comparedtothepreviousyear(EUR1961.5million)impactedbyCOVID-19outbreakin2020,whichstarted inJanuaryinChinaandsincemid-MarchinEurope.Gradualeasingofrestrictionstookplaceduringsummer months allowing the Group to achieve greater volumes on the top line. 
Inordertooffsetlossescausedthecrisismanyactionshavebeenintroducedsuchasstrongvalueoffersand propercommunication,couponingandbuildingcustomersconveniencewithdeliveryzonesextension, cooperationwithnewdeliveryaggregators,contactlessdelivery,digitalsolutionsandimprovementofthe speed of service in drive through.
InQ42020consolidatedrevenuesdecreasedby24.9%overtheyearandamountedtoEUR397.5million drivenbytheemergeofthe‘secondwave’ofCOVID-19withgrowingnumberofpositivecasesandmorestrict restrictionsimposedinthemajorityofourmarketsweredine-inwasclosedandonlydelivery,takeawayor drive through was permitted by local authorities.
TherevenuesinCentralandEasternEurope(CEE)amountedtoEUR685.5millionin2020,lowerby18.3% comparedtothepreviousyear.InQ42020segment’srevenuedecreasedby26.0%year-on-yeartoEUR171.5 million. At the same time, the Group opened 49 new restaurants and closed 15 in CEE.
Russiasegmentreportedrevenuesdecreasedby26.2%comparedto2019andamountedtoEUR152.5 million.InQ42020RussiareportedrevenueatEUR38.3million,representingadecreaseof31.3%year-on-year.NotconsideringtheFXimpactrevenuesdecreasedcomparedto2019by16.2%andinQ42020by11.2% in local currency. 
TherevenuesreportedbyWesternEurope(WE)overtheyearreachedEUR582.8million,a26.8%declineversusthepreviousyear,drivenbyrestaurantclosuresmainlyinGermanyandSpainplusthedropofsales intheCasualDining.SignificantsupportbySushiShoptotherevenuesinFrance,thatendtheyear14.8% below2019andtheQ420204.6%overtheyear.InQ42020top-lineofthesegmentdecreasedby24.8%over theyeartoEUR158.2million.TheGroupopened27butclosed51restaurantsin2020.Negativebalanceof net openings -24.
InChina,revenuesin2020decreaseby14.7%toEUR76.4million.Thebusinesswasthefirstoneinour portfolioaffectedbythecrisisthatshowedafastrecoveryasinQ42020salesincreasedby2.9%overthe year and reached EUR 22.6 million.
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(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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ThesegmentOthercomprisedthesalesofSCMGrouprealizedfromthenon-relatedentitiesandthe revenuesofpizzaportal.pl.In2020top-lineofthissegmentamountedtoEUR25.7million,whichwas12.7% lowerthanyearagomainlyduetoaverystrongdecreaseinthescaleofSCM.InQ42020segment’srevenue decreased by 22.8% year-on-year. 
Profitability
AmRestprofitabilitystoppedthegrowthfrompreviousperiodsandwasnegativelyimpactedbylackofsales leverageconnectedwithCOVID-19,whichimpactedmostcostscategories.Toalleviatethepressureonthe bottomlineinthereportingperiodthereweremanyactionstakenplacesuchasmenusimplification,costof laboroptimizationintermsofnoovertimeorundertime,reductionofbonuses,introductionofgovernment programstogetgrants,suspension/postponenoturgentservicesandworks,suspensionoftravelandcross-countrytaskforcestolookforsavings.Currentmarketsituationincreasedthecostsofcleaningmaterials, safetyadequationoftherestaurants,handsanitizersequipmentandmasksbesidestheincreaseof aggregators fees due to higher delivery sales share. 
OtherimpactsduringthereportingyearwereroyaltyfeesdiscountsinStarbucksacrossallmarketsinthe secondquarter,VATdecreaseinGermanyfrom19%to16%pushingrevenuesandreducingthecostofsales, marketingreliefinYum!Brands,governmentrentgrantsinCzechia,Temporarydismissalprogrambythe GovernmentinSpain(ERTE),rentalsuccessfulnegotiationswithlandlordsconnectedtoamendmenttothe IFRS 16 standard connected with COVID-19 at EUR 18.6 million.   
Asaresult,thereportedEBITDAreachedEUR201.7millionor13.2%marginin2020a48.8%lowerthan2019. In Q4 2020 Group’s EBITDA reached EUR 46.9 million a 12.9% less over the year. 
Reportedoperatingprofit(EBIT)oftheGroupamountedlossesofEUR142.5millionor-9.4%margin,driven by the impact from above mentioned items. Reported EBIT in Q4 2020 reached losses of EUR 28.9 million.
ThereportednetlossattributabletoAmRestshareholdersamountedofEUR183.7millionin2020whilenet marginamountedto-12.1%.InQ42020reportednetlossattributabletotheparentreachedEUR23.9million or-6.0%marginimpactedbyimpairmentsandFXdifferencesregardingfinancecostspartlyoffsetbyincome tax and non-controlling interest.
ThereportedEBITDAgeneratedinCEEin2020amountedtoEUR126.8millionor18.5%margin.InQ42020 CEE achieved reported EBITDA at EUR 25.6 million or 14.9% margin.
RussiandivisionreachedreportedEBITDAin2020atEUR30.8millionor20.2%margin,highervslastyearby 0.9pp. Reported EBITDA in Q4 2020 amounted EUR 7.9 million or 20.8% higher 4.8pp versus 2019.
TheEBITDAofWesternEuropedivisionamountedtoEUR38.3millionin2020withmarginat6.6%beinga 9.7pp lower compared to 2019. In Q4 2020 reported EBITDA hit EUR 8.6 million or 5.4% margin. 
ChinabusinesswasthefirstbusinessimpactedbytheCOVID-19butalsothefirstsegmentrecoveringits profitabilityattheendoftheyear.ReportedEBITDAin2020amountedEUR23.2millionor30.3%margina 3.5pphighercomparedtolastyear.InQ42020reportedEBITDAwasEUR7.2millionor31.9%margina6.9pp higheryear-on-year.Operationalefficiencyalongwithestablishedbusinessmodelandcostdiscipline enabledtoacceleratetherecoveryofthemarket.WecontinueaddedtwomoreBlueFrogfranchise restaurantsinChinaandtheyearendedwithsixfranchiseunitswhichshowssupportivetrendforfurther growth of brand awareness and profitability in the region.
(all figures in EUR millions unless statedotherwise)
13
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Table 2Revenues and margins generated in the particular markets for the years ended 31 December 2020 and 2019
12 months ended 31 December 2020
12 months ended 31 December 2019
Amount
% of sales
Amount
% of sales
Revenue
1 522.9
1 961.5
Poland
378.7
24.9%
464.8
23.7%
Czechia
157.8
10.4%
199.8
10.2%
Hungary
92.5
6.1%
110.5
5.6%
Other CEE
56.5
3.7%
64.2
3.3%
Total CEE
685.5
45.1%
839.3
42.8%
Russia
152.5
10.0%
206.6
10.5%
Spain
172.8
11.3%
281.1
14.3%
Germany
119.6
7.9%
176.9
9.0%
France
254.6
16.7%
298.7
15.2%
Other WE
35.8
2.3%
39.9
2.0%
Western Europe (WE)
582.8
38.2%
796.6
40.6%
China
76.4
5.0%
89.6
4.6%
Other
25.7
1.7%
29.4
1.5%
Amount
Margin
EBITDA
 201.7
13.2%
 394.4
20.1%
Poland
64.1
16.9%
93.0
20.0%
Czechia
33.4
21.2%
51.9
26.0%
Hungary
19.2
20.7%
25.8
23.3%
Other CEE
10.1
17.9%
14.1
22.1%
Total CEE
126.8
18.5%
184.8
22.0%
Russia
30.8
20.2%
39.8
19.2%
Spain
24.6
14.2%
72.2
25.7%
Germany
(3.7)
(3.1%)
22.0
12.5%
France
13.1
5.2%
27.7
9.3%
Other WE
4.3
12.0%
5.1
12.7%
Western Europe (WE)
38.3
6.6%
127.0
15.9%
China
23.2
30.3%
24.1
26.9%
Other
(17.4)
-
18.7
-
Amount
Margin
Adjusted EBITDA
205.5
13.5%
369.2
18.8%
Poland
65.3
17.2%
95.1
20.5%
Czechia
34.2
21.7%
53.4
26.7%
Hungary
19.5
21.1%
27.3
24.7%
Other CEE
10.8
19.0%
15.4
24.1%
Total CEE
129.8
18.9%
191.2
22.8%
Russia
31.0
20.3%
40.8
19.7%
Spain
24.7
14.3%
74.0
26.3%
Germany
(3.3)
(2.8%)
23.0
13.0%
France
13.1
5.1%
28.0
9.4%
Other WE
4.8
13.3%
5.1
12.9%
Western Europe (WE)
39.3
6.7%
130.1
16.3%
China
23.1
30.4%
24.8
27.7%
Other
(17.7)
-
(17.7)
-
Amount
Margin
EBIT
(142.5)
(9.4%)
 105.6
5.4%
Poland
(9.5)
(2.5%)
33.3
7.2%
Czechia
7.3
4.6%
29.0
14.5%
Hungary
1.7
1.9%
12.1
10.9%
Other CEE
(6.8)
(12.1%)
1.7
2.7%
Total CEE
(7.3)
(1.1%)
76.1
9.1%
Russia
(2.1)
(1.4%)
5.8
2.8%
(all figures in EUR millions unless statedotherwise)
14
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Spain
(20.5)
(11.9%)
33.4
11.9%
Germany
(70.3)
(58.7%)
(17.1)
(9.6%)
France
(27.0)
(10.6%)
(17.6)
(5.9%)
Other WE
(0.8)
(2.1%)
1.3
3.0%
Western Europe (WE)
(118.6)
(20.3%)
0.0
0.0%
China
3.9
5.1%
6.1
6.8%
Other
(18.4)
-
17.6
-
Table 3Revenues and margins generated in the particular markets for 3 months ended 31 December 2020 and 2019
3 months ended 31 December 2020
3 months ended 31 December 2019
Amount
% of sales
Amount
% of sales
Revenue
397.5
529.0
Poland
93.8
23.6%
127.0
24.0%
Czechia
36.8
9.3%
55.9
10.6%
Hungary
24.5
6.2%
30.4
5.7%
Other CEE
16.4
4.1%
18.7
3.5%
Total CEE
171.5
43.2%
232.0
43.8%
Russia
38.3
9.6%
55.7
10.5%
Spain
44.9
11.3%
76.3
14.4%
Germany
28.4
7.2%
46.4
8.8%
France
74.2
18.7%
77.8
14.7%
Other WE
10.7
2.7%
10.0
1.9%
Western Europe (WE)
158.2
39.8%
210.5
39.8%
China
22.6
5.7%
22.0
4.2%
Other
6.9
1.7%
8.8
1.7%
Amount
Margin
EBITDA
46.9
11.8%
128.0
24.2%
Poland
9.7
10.4%
25.2
19.8%
Czechia
6.8
18.3%
13.8
24.7%
Hungary
5.7
23.3%
7.1
23.3%
Other CEE
3.4
20.8%
3.4
18.6%
Total CEE
25.6
14.9%
49.5
21.4%
Russia
7.9
20.8%
8.8
15.7%
Spain
3.9
8.7%
19.8
25.9%
Germany
(3.0)
(10.5%)
7.0
15.1%
France
5.4
7.3%
5.3
6.9%
Other WE
2.3
20.9%
(0.2)
(2.4%)
Western Europe (WE)
8.6
5.4%
31.9
15.2%
China
7.2
31.9%
5.5
25.2%
Other
(2.4)
-
32.3
-
Amount
Margin
Adjusted EBITDA
48.0
12.1%
96.4
18.2%
Poland
10.1
10.7%
26.2
20.6%
Czechia
7.1
19.2%
14.5
26.1%
Hungary
5.7
23.6%
7.8
25.7%
Other CEE
3.6
21.4%
4.1
22.0%
Total CEE
26.5
15.4%
52.6
22.7%
Russia
7.9
20.8%
9.3
16.6%
Spain
4.0
8.9%
20.5
26.9%
Germany
(2.8)
(10.0%)
7.3
15.6%
France
5.4
7.3%
5.4
6.9%
Other WE
2.3
21.4%
(0.2)
(1.7%)
Western Europe (WE)
8.9
5.6%
33.0
15.7%
China
7.1
31.9%
5.7
25.9%
Other
(2.4)
-
(4.2)
-
(all figures in EUR millions unless statedotherwise)
15
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Amount
Margin
EBIT
(28.9)
(7.3%)
 32.6
6.2%
Poland
(10.0)
(10.7%)
10.2
8.0%
Czechia
0.3
0.9%
7.7
13.8%
Hungary
0.4
1.7%
3.4
11.0%
Other CEE
(0.2)
(1.5%)
0.2
1.0%
Total CEE
(9.5)
(5.5%)
21.5
9.2%
Russia
1.1
2.7%
(1.2)
(2.3%)
Spain
(6.1)
(13.8%)
6.4
8.4%
Germany
(12.0)
(42.0%)
(6.7)
(14.4%)
France
(3.0)
(4.1%)
(20.1)
(25.7%)
Other WE
0.2
2.6%
(1.2)
(13.4%)
Western Europe (WE)
(20.9)
(13.2%)
(21.6)
(10.3%)
China
3.2
14.1%
1.9
8.8%
Other
(2.8)
-
32.0
-
Table 4Reconciliation of the net profit and adjusted EBITDA for years ended 31 December 2020 and 2019
 31 December 2020
31 December 2019
Amount
% of sales
Amount
% of sales
Profit/(loss) for the period 
(183.7)
(12.1%)
 66.9
3.4%
+ Income tax expenses
(17.7)
(1.2%)
26.5
1.4%
+ Finance costs 
61.0
4.0%
46.0
2.3%
– Finance income 
2.1
0.1%
33.8
1.7%
+ Depreciation and Amortization 
253.4
16.6%
249.3
12.7%
+ Impairment losses 
90.8
6.0%
39.5
2.0%
EBITDA 
201.7
13.2%
394.4
20.1%
+ Start-up expenses* 
4.1
0.3%
11.2
0.6%
+ M&A related expenses 
-
-
(36.7)
(1.9%)
+/– Effect of SOP exercise method modification
(0.3)
-
0.3
-
Adjusted EBITDA 
205.5
13.5%
369.2
18.8%
* operating costs incurred by the company to open a restaurant but before a restaurant starts generating revenue
Table 5 Reconciliation of the net profit and adjusted EBITDA for 3 months ended 31 December 2020 and 2019
3 months ended 31 December 2020
3 months ended 31 December 2019
Amount
% of sales
Amount
% of sales
Profit/(loss) for the period 
(23.9)
(6.0%)
 38.7
7.3%
+ Income tax expense 
(17.1)
(4.3%)
16.8
3.2%
+ Finance costs 
12.6
3.2%
10.5
2.0%
– Finance income 
0.5
0.1%
33.4
6.3%
+ Depreciation and Amortization 
60.8
15.3%
65.0
12.3%
+ Impairment losses 
15.0
3.8%
30.4
5.7%
EBITDA 
46.9
11.8%
128.0
24.2%
+ Start-up expenses* 
1.1
0.3%
5.0
0.9%
+ M&A related expenses 
-
-
(36.8)
(7.0%)
+/– Effect of SOP exercise method modification
-
-
0.2
0.0%
– Indirect taxes adjustments 
-
-
-
0.0%
Adjusted EBITDA 
48.0
12.1%
96.4
18.2%
* operating costs incurred by the company to open a restaurant but before a restaurant starts generating revenue
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Table 6Liquidity analysis
year ended
31 December 2020
31 December 2019
Current assets
311.6
264.8
Inventory
26.5
29.9
Current liabilities
478.1
498.9
Cash and cash equivalents
204.8
106.2
Trade and other receivables
60.4
104.6
Trade and other accounts payable
235.4
279.5
Table 7Balance sheet leverage analysis
year ended
31 December 2020
31 December 2019
Non-current assets
1 802.8
2 170.2
Liabilities
1 849.7
1 958.3
Non-current liabilities
1 371.6
1 459.4
Debt
1 532.2
1 584.3
Share of inventories in current assets (%)
8.5%
11.3%
Share of trade receivables in current assets (%)
19.4%
39.5%
Share of cash and cash equivalents in current assets (%)
65.8%
40.1%
Equity to non-current assets ratio
0.15
0.22
Gearing ratio
0.15
0.23
Long-term liabilities to equity ratio
5.18
3.06
Liabilities to equity ratio
6.98
4.11
Debt/equity
5.79
3.32
Definitions:
-Share of inventories, trade and other receivables, cash and cash equivalents in current assets – ratio of, respectively, inventories, trade receivables and cash and cash equivalents to current assets;
-Equity to non-current assets ratio – equity to non-current assets;
-Gearing – liabilities and provisions to total assets; 
-Non-current liabilities to equity – non-current liabilities to equity;
-Liabilities to equity – liabilities and provisions to equity;
-Debt/equity – total non-current and current interest bearing loans and borrowings.
Debt ratios
ThedebtandliquidityratiosoftheGroupwereaffectedbylackofsalesasaresultthepandemicsituation and reflected in the specifics of the restaurant industry.
TheGroup’sequitydecreasedbyEUR212.0millioncomparedtothebalanceattheendof2019and amountedtoEUR264.7millionattheendof2020.Thechangeinequityresultedmainlyfromthedecrease inretainedearnings(EUR-182.0millionin2020)andbyadecreaseintranslationreserves(EUR-19.2million). 
Alternative Performance Measures (APM) description
APM are metrics used by the company with the intention to describe operational or financial performance taking into account some key information or constituent and adjusting them based on the purpose of such measure. AmRest identifies the following Alternative Performance Measures in Director’s Report:
1.Like-for-likeorSameStoreSales(“LFL”or“SSS”)–representsrevenuegrowthfromcomparable restaurants(restaurantsthathavebeenoperatingforaperiodoflongerthan12months).The measureshowstheabilityofarestaurantorabrandtoincreaseitssalesorganically.Itcanbeclosest 
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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reconciledbetweenlasttwelvemonthscorerevenuegrowthminuslasttwelvemonthsnetequity openings growth.
Table 8 Reconciliation of LFL
31 December 2020
Core revenue growth
(22.4%)
(+) LTM net equity openings growth
1.5%
Approx. LFL
(23.8%)
2.CoresalesorCorerevenue–presentstotalsalesoftheGroupwithouttheimpactfromacquisitions or sale of a business  that occurred last year. 
Table 9 Reconciliation of Core revenue
31 December 2019
Total revenue
1 961.5
(–) Sales generated by acquired businesses
213.7
Core revenue
1 747.8
3.EBITDA–OneofKeyPerformanceIndicatorsfortheGroup.Itisaclosemeasureofcashprofitability onoperationsandconsistofprofitfromoperationsexcludingamortizationanddepreciationcosts as well as impairments. Reconciliation of the measure is provided in tables 4 or 5.
4.AdjustedEBITDA–Measuresprofitabilityperformancewithoutstartupcosts(operatingcosts incurredbytheGrouptoopenarestaurantbutbeforearestaurantstartsgeneratingrevenue), indirecttaxadjustments,M&Arelatedexpenses(allmaterialexpensesconnectedwithsuccessful acquisitioncoveringprofessionalservices,legal,financial,otherdirectlyconnectedwitha transaction)andeffectofStockOptionPlan(SOP)exercisemethodmodification(differencein accountingcostofemployeebenefitsaccountedundercashsettledversusequitysettledoption plan).Itallowstopresentprofitabilityforrestaurantsthatalreadygeneraterevenueandwithout someunusualcostsrelatedtoM&A,taxadjustmentsoraccountingadjustmentsrelatedtoSOP. Reconciliation of this APM is provided in tables 4 or 5.
Brands operated by the Group
AsatthedateofpublicationoftheReport,theportfolioofAmRestconsistedofeighteenbrands:KFC,Pizza Hut,Starbucks,BurgerKing,LaTagliatella,BlueFrog,Kabb,Bacoa,SushiShop,Pokaï,Lepieje,‘OiPoke,Moya Misa Ramen, Pierwsze i Drugie, Sushi Tone, Eat’s Fine, Viva Salad! and Cremontano. 
AmRestisafranchiseeofYum!BrandsInc.fortheKFCandPizzaHutbrands.Startingfrom1October2016 theGroupasamaster-franchiseehastherighttograntalicensetothirdpartiestooperatePizzaHutExpress andPizzaHutDeliveryrestaurants(sub-franchise)incountriesofCentralandEasternEurope,whileensuring acertainshareofrestaurantsoperateddirectlybyAmRest.PizzaHutrestaurantsacquiredinFranceinMay 2017,inGermanyinJuly2017andinRussiainJune2018areoperatedbothbyAmRestanditssub-franchisees.
BurgerKingrestaurantsareoperatedonafranchisebasisfollowinganagreementconcludedwithBurger King Europe GmbH.
StarbucksrestaurantsinPoland,theCzechRepublicandHungaryareopenedbythecompaniesAmRest Coffee(ownedin82%byAmRestandin18%byStarbucks).Thesecompanieshavetherightsandlicensesto developandmanageStarbucksrestaurantsinrespectivecountries.StarbucksrestaurantsinRomania, Bulgaria, Germany, Serbia and Slovakia are operated by the Group on a franchise basis.
LaTagliatellaistheproprietarybrandofAmRestandbecameapartofitsportfolioinApril2011.LaTagliatella restaurantsareoperateddirectlybyAmRestaswellasbythirdpartyentitieswhichoperaterestaurantsona franchise basis.
BlueFrogandKABBbrandsbecamethepropertyofAmRestinDecember2012asaresultofacquisitionof majority stake in Blue Horizon Hospitality Group LTD.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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BacoabrandwasacquiredbyAmReston31July2018,thechainrepresentssevenpremiumburger restaurants operated in Spain through equity and franchise model.
SushiShop,aleadingEuropeansushiconcept,isaproprietarybrandofAmRestandbecameapartofits portfoliothroughtheacquisitionofSushiShopGroupSASfinalizedon31October2018.SushiShop restaurantsareoperatedbybothAmRest(equitystores)andAmRest’sfranchisees.SushiShopnetworkis present in 10 countries and reported within the Western Europe segment.
PokaïisavirtualbrandaddedtotheCompany’sportfoliotogetherwithSushiShopbusinesson31October 2018.
Lepiejeand‘OiPokearevirtualbrandsinventedandlaunchedinPolandbyAmRestin2019.MoyaMisa Ramen,PierwszeiDrugie,SushiToneandEat’sFinevirtualbrandswereintroducedtothePolishmarketby the Company in 2020. 
Cremontano and Viva Salad! brands were launched in Spain, respectively in 2019 and 2020.
 Quick Service Restaurants (QSR)
Establishedin1952,theKFCbrandisthebiggest,fastestgrowingandmostpopularchain ofquickservicerestaurantsservingchickenmeals.Therearecurrentlyabout25000KFC restaurants in over 145 countries worldwide.
Asat31December2020theGroupoperated895KFCrestaurants:296inPoland,109intheCzechRepublic, 73inHungary,206inRussia,84inSpain,26inGermany,70inFrance,12inSerbia,8inBulgaria,8inCroatia, 2 in Austria and 1 in Slovenia. 
ThebeginningsofBurgerKingdatebackto1954.Today,BurgerKing(“Homeofthe Whopper”)operatesabout17800restaurants,servingabout11millioncustomersinover 100countrieseveryday.Almost100%ofBurgerKingrestaurantsarerunbyindependent franchiseesandmanyofthemhavebeenmanagedfordecadesasfamilybusinesses.Burger King brand is owned by 3G Capital.
Asat31December2020AmRestranthetotalof81BurgerKingrestaurants–44inPoland,25intheCzech Republic, 2 in Bulgaria, 4 in Slovakia and 6 in Romania. 
Casual Dining and Fast Casual Restaurants (CDR, FCR)
LaTagliatellaarosefromtheexperienceofmorethantwodecadesof specializationinthetraditionalcuisineoftheregionsofElPiemonte,LaLiguria andLaReggioEmilia.Overthepastyearthebrandhasentertainedmorethan 9 million customers, who delighted in the most authentic flavours of Italian cuisine.
Asat31December2020AmRestoperated242LaTagliatellarestaurants—233inSpain,4inFrance,2in Germany and 3 in Portugal.
PizzaHutisoneofthelargestcasualdiningrestaurantchainsinEurope.Inspiredbythe Mediterraneancuisine,itpromotestheideaofhavingagoodtimewhileenjoyingameal togetherwithfamilyandfriends.ItisalsothebiggestbrandinthePolishcasualdining segmentintermsofsalesandthenumberoftransactions.PizzaHut’sstrongposition resultsfromconsistentlyimplemented“Pizzaandmuchmore!”strategywhichassumes extendingthebrand’sofferbyaddingnewcategoriessuchaspastas,salads,dessertsandstarterswhile retaining the position of a leader and “pizza expert”.
Inadditiontothewell-establishedCasualDiningformat,AmRestfocusesnowoncreatingnewconcepts withinthePizzaHutfamily.Meetingguests’expectationstheFastCasualPizzaHutExpressandDelivery restaurantshavebeencreated.PizzaHut’sexceptionaltasteisnowbeingleveragedwithspeed,convenience and ease, creating an unique customer experience.
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(all figures in EUR millions unless statedotherwise)
19
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Asat31December2020AmRestran463PizzaHutrestaurants–155inPoland,56inRussia,26inHungary, 17 in Czech Republic, 121 in France, 80 in Germany, 3 in Armenia, 2 in Azerbaijan and 3 in Slovakia.
InclusionoftheBlueHorizonHospitalityGrouptoAmReststructurein2012 enrichedtheCDRsegmentbrandportfoliowithtwonewpositionsoperatinginthe Chinese market.
■
BlueFrogBar&Grill—restaurantsservinggrilleddishesfromtheAmerican cuisineinaniceatmosphere.BlueFrogBar&Grill—restaurantsservinggrilled dishesfromtheAmericancuisineinaniceatmosphere.BlueFrogBar&Grill— restaurantsservinggrilleddishesfromtheAmericancuisineinanice atmosphere.BlueFrogBar&Grill—restaurantsservinggrilleddishesfromthe American cuisine in a nice atmosphere.
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KABBBistroBar—premiumsegmentrestaurant,serving“westerncuisine”dishesandawideselection of wines and drinks.
As at 31 December 2020 AmRest operated 75 Blue Frog (71 in China and 4 in Spain) and 1 KABB restaurant.
BacoaisapopularpremiumburgerconceptinSpain.Since2010,ithasbeen bringinghighquality,freshlycookedburgersandchipstotheirloyalfans.Bacoa ispassionateaboutusingpremiumingredientsandpreparingeverythingbyhand, proving every day that fast food can also be good food with the right approach.
As 31 December 2020, AmRest operated 7 Bacoa restaurants in Spain. 
Foundedin1998SushiShopistheleadingEuropeanchainofrestaurantsforsushi, sashimiandotherJapanesespecialties.Itispositionedasapremiumbrandoffering food prepared fresh with highest quality ingredients.
SushiShophassuccessfullyestablishedaninternationalnetworkofcompany-operated and franchises stores across 10 countries. 
As31December2020,AmRestoperated183SushiShoprestaurants(132inFrance,6inSpain,3inPortugal, 11 in Belgium, 2 in Italy, 3 in Luxemburg, 5 in UK, 9 in Switzerland, 3 in Saudi Arabia and 9 in UAE). 
Coffee category
Starbucksistheworldleaderinthecoffeesectorwithalmost33000storesin80 countries.Itoffersabroadselectionofcoffeesfromdifferentpartsoftheworld,as wellasteas,softdrinksandawiderangeoffreshsnacksanddesserts.Thestore designsandtheiratmosphererefertothecoffeeheritageandreflectthecultureof the neighborhood.
Asat31December2020AmRestoperated386stores(68inPoland,51intheCzech Republic,34inHungary,54inRomania,14inBulgaria,154(including22licensed stores) in Germany, 8 in Slovakia and 3 in Serbia).
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(all figures in EUR millions unless statedotherwise)
20
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Virtual Brands
PokaïisavirtualbrandcreatedbythegroupSushiShopinApril2018,whichoffers alargerangeoffresh,healthyandgourmetpokebowls.Itsproductsaresold throughaggregators(Deliveroo,UberEATS,etc).Pokaïispresentinmostofthe countrieswhereSushiShoprestaurantsoperate:France,Belgium,Italy,Spain, Switzerland, UK, Germany and UEA.
LepiejeisoneofthevirtualbrandscreatedwithintheAmRest'sShadowKitchenproject, whichrespondstothelatesttrendsoftheglobalrestaurantmarket.Thebrandoperates sinceDecember2019inWrocław,PolandanditisavailableonGlovoandWolt.Thebrand is inspired by the dumplings from the different parts of the world. 
 ‘OiPokeisavirtualbrandwhichisofferingexoticbowlsbasedonmeat,fishorshrimps withoriginalandfreshlypreparedvegetables.ThecuisinecomesfromHawaii,where everything"perfect"iscalled"'Oi"andthat'swhythebrandiscalled'OiPoke.Thebrand alsocontributestotheShadowKitchenprojectofAmRest.YoumayorderourOibowlson Glovo and Wolt. The Brand operates in Poland since December 2019.   
Formanyyearsramenhasbeenappealingtoconsumers'hearts,duetoitsoriginal ingredientssurprisingconsumerswithitssatietyandthewaytheyareservedin characteristicbowls.InJapaneveryonehastheirownstyleofpreparingRamen.Thesecret toadeliciousramenisitsconsequentuniqueness.TheVirtualBrandMOYAMISARAMEN istastyandfun!Inthepreparationprocess,weplaywithdifferentflavors,ingredientsand thewayofconsumption.ThebranddelightsourPolishconsumersinthedeliverysegment which runs on aggregators.
The"PierwszeiDrugie"brandisbasedontheruleoftraditionalPolishcuisine–themain mealofadayhastobedeliciousandsatiated,butalsoshouldconsistoftwodishes:the soupandthemaincourse.ThebrandiscurrentlyavailableinWrocław,Polandthrough aggregator platforms.
VivaSalad!isabranddevelopedexclusivelyfordeliverychannelthatoffersfresh,healthy andhighlycustomizabledishesdividedintofewsegments:Vivasalads,proteindishes, desserts,milkshakesandfruitwatersandsmoothies.TheconceptwaslaunchedinMadrid and Barcelona in June 2020. The dishes are prepared in selected La Tagliatella locations.
Eat’sFineisavirtualbranddevelopedin2020inPoland,aspartoftheFoodAbout concept,committedtorespondingtospecificdietaryneedsandcustomerexpectations. Thebrandoffersawell-balanceddailymenuforthosewhoarecuriousabouthealthy plant-based meals! 
SushiToneisavirtualbrandforJapanesecuisinelovers,developedin2020inPoland,as partoftheFoodAboutconcept.Itoffers8setstochooseandallthemostpopularrolls, includingNigiriandFutomaki,aswellastypicalAsiansidedisheslikeMisosoupwithtofu orkimchisalad.ThebrandsourcesingredientsfromAmRest’scarefullychosensuppliers, offeringonlyproductsofoutstandingquality.SushiTonewascreatedwithfastand convenientdeliveryinmind,andthiswaythedishesgettotheconsumerwithin30minutesfromplacingthe order.SushiToneisapartoftheAmRest’sShadowKitchenconceptandisavailablethroughtheaggregators sites, including Glovo and Wolt, as well as via the AmRest’s Food About service.
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(all figures in EUR millions unless statedotherwise)
21
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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CremontanoisapremiumicecreambrandonlyavailablethroughdeliveryasVirtual brand.ItoffersaselectionofdozenItalianflavorsofalldelicioustasteswithadesign whereeverythinghasbeentakencareofuntilthesmallestdetail,providingafreshimage tothebrandandhighlightingthegoodproductwhatwehave.Theconceptispresentin few Spanish cities and available through Glovo aggregator.
Key investments
ThecapitalexpenditureincurredbyAmRestrelatedmainlytoadevelopmentofrestaurantnetwork.The Groupincreasedthescaleofthebusinessthroughconstructionofnewrestaurants,acquisitionofrestaurant chainsfromthirdpartiesaswellasreconstructionandreplacementofassetsintheexistingstores.Eachyear, theGroup’scapitalexpendituredependsmainlyonthenumberandtypeofrestaurantsopenedaswellas scale and profile of M&A activities.
In2020AmRest’scapitalexpenditurewasfinancedfromcashflowsfromoperatingactivitiesanddebt financing.
Thetablebelowpresentspurchasesofproperty,plantandequipment,intangibleassetsaswellasvalueof acquired goodwill in 12 months ended 31 December 2020 and 31 December 2019.
Purchases of property, plant and equipment, intangible assets as well as value of acquired goodwillin AmRest
year ended
31 December 2020
31 December 2019
Intangible assets:
 6.5
 13.6
Licenses for use of Pizza Hut, KFC, Burger King, Starbucks trademarks
 3.2
 7.8
Other intangible assets
 3.3
 5.8
Goodwill
-
 2.8
Property, plant and equipment:
68.2 
 188.2
Land
 -   
 0.3
Buildings and expenditure on development of restaurants
 6.8
 70.2
Machinery & equipment
 8.6
 73.8
Vehicles
 0.2
 0.8
Other tangible assets (including assets under construction)
 52.6
 43.1
Total
 74.7
 204.6
AmRest’s New Restaurants
AmRest equity restaurants
AmRest franchisee restaurants
Total
31.12.2019
1 857
479
2 336
New Openings
74
14
88
Acquisitions
0
0
0
Closings
(67)
(20)
(87)
Conversions
(6)
6
0
31.12.2020
1 858
479
2 337
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(all figures in EUR millions unless statedotherwise)
22
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Asat31December2020,AmRestoperated2337restaurants,including479restaurantswhicharemanaged byfranchisees.Comparedwith31December2019,theGrouprunsonerestaurantmore.88newrestaurants wereopened:49restaurantsinCentralandEasternEurope,8inRussia,27inWesternEuropeand4inChina.   
Number of AmRest restaurants (as at 31 December 2020)
Countries
Brands
31.12.2019
31.03.2020
30.06.2020
30.09.2020
31.12.2020
Poland
Total
558
553
550
558
567
KFC
282
283
282
288
296
BK
45
43
43
44
44
SBX
73
73
70
70
68
PH equity
157
153
153
153
154
PH franchised
-
-
-
-
1
BF
-
-
-
-
-
Shadow Kitchen
1
1
2
3
4
Czech Republic
Total
191
191
191
198
202
KFC
105
105
105
107
109
BK
20
20
20
23
25
SBX
49
49
49
51
51
PH
17
17
17
17
17
Hungary
Total
130
130
130
131
133
KFC
70
70
70
71
73
SBX
34
34
34
34
34
PH
26
26
26
26
26
 Russia
Total
271
271
265
266
262
KFC
202
205
204
206
206
PH equity
39
36
32
32
21
PH franchised
30
30
29
28
35
Bulgaria
Total
24
24
24
24
24
KFC
8
8
8
8
8
BK
2
2
2
2
2
SBX
14
14
14
14
14
Serbia
Total
12
13
15
15
15
KFC
10
11
12
12
12
SBX
2
2
3
3
3
Croatia
KFC
8
8
8
8
8
Romania
Total
54
53
54
59
60
SBX
52
51
51
53
54
BK
2
2
3
6
6
Slovakia
Total
13
14
14
15
15
SBX
7
7
7
8
8
PH
3
3
3
3
3
BK
3
4
4
4
4
Armenia
PH franchised
3
3
3
3
3
Azerbaijan
PH franchised
2
2
2
2
2
Spain
Total
344
331
330
331
334
TAG equity
75
72
72
72
72
TAG franchised
163
160
159
161
161
KFC
83
81
81
81
84
Blue Frog equity
5
3
3
3
3
Blue Frog franchised
2
2
2
1
1
Bacoa equity
4
1
1
1
1
Bacoa franchised
6
6
6
6
6
Sushi Shop equity
4
4
4
4
4
Sushi Shop franchised
2
2
2
2
2
France
Total
322
322
325
327
327
TAG equity
5
4
4
4
3
TAG franchised
1
1
1
1
1
(all figures in EUR millions unless statedotherwise)
23
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Countries
Brands
31.12.2019
31.03.2020
30.06.2020
30.09.2020
31.12.2020
PH equity
13
12
12
12
12
PH franchised
108
109
109
109
109
KFC
70
70
70
70
70
Sushi Shop equity
89
90
93
95
96
Sushi Shop franchised
36
36
36
36
36
Germany
Total
282
275
273
272
262
SBX
145
141
139
138
132
SBX licensed
20
21
21
21
22
TAG equity
2
2
2
2
2
KFC
27
26
26
26
26
PH equity
10
10
10
10
8
PH franchised
75
75
75
75
72
Sushi Shop franchised
3
-
-
-
-
Austria
KFC
2
2
2
2
2
Slovenia
KFC
1
1
1
1
1
Portugal
Total
5
6
6
6
6
TAG equity
2
3
3
3
3
Sushi Shop franchised
3
3
3
3
3
China
Total
72
74
72
72
72
Blue Frog equity
66
68
67
66
65
Blue Frog franchised
4
4
4
5
6
KABB
2
2
1
1
1
Belgium
Total
11
11
11
11
11
Sushi Shop equity
5
5
5
5
5
Sushi Shop franchised
6
6
6
6
6
Italy
Total
3
3
3
3
2
Sushi Shop equity
1
1
1
1
1
Sushi Shop franchised
2
2
2
2
1
Switzerland
Sushi Shop equity
7
7
7
9
9
Luxembourg
Sushi Shop equity
2
2
3
3
3
Netherlands
Sushi Shop equity
1
1
1
-
-
UK
Sushi Shop equity
5
5
5
5
5
UAE
Sushi Shop franchised
10
9
9
9
9
Saudi Arabia
Sushi Shop franchised
3
3
3
3
3
Total AmRest
2336
2314
2307
2333
2337
Planned investment activities
AmRest’sstrategyistoleverageitsuniqueculture,internationalcapability,operationalexcellenceattitude and superior brand portfolio to grow scalable and highly profitable restaurants globally.
Similartopreviousperiods,AmRestintendstofurtherstrengthenitsleadershippositioninEuropean restaurantmarkets.Currently,theCompanyisfocusedonintegratingmostrecentacquisitionsand reorganizationofrestaurantnetworkaswellasbuildingfranchiseexcellenceandstrategytofurtherfuel growthacrossproprietarybrands.ThepotentialforgrowthintheexistingmarketsofAmRest’soperations allowsforacceleratedorganicexpansionthroughincreasednumberofnewopenings.Developmentoflighter store formats increases availability of new locations across Europe as well as pool of potential franchisees.
(all figures in EUR millions unless statedotherwise)
24
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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PotentialacquisitionsstillremainanimportantfactorofAmRest’sgrowth.Onthebackofrecentlyfinalized M&Atransactions,AmResthassetitsfootprinton8newmarketswithalotofwhitespacetocoverand opportunitiestoexplore.AsapartnerofchoiceandleadingEuropeanrestaurantoperatorAmRestiswell-positioned for any sector consolidation or buyouts.
Inthelightofgrowingpopularityoftake-awayanddeliverysegments,AmRestwillcontinueinvestingindigital channelsaswellasdevelopingdeliverycapabilitiesandcooperationacrossallmarkets,includingintensified testing of a shadow kitchen concept (delivery-only formats). 
Similartopreviousyears,improvementofROIC,increasingscalabilityandmarketpresenceaswellasbuilding thelong-termgrowthplatformoftop-tierbrandswilldefinethemaincriteriaofshapingthestructureofnew launchesandacquisitions.AmRest’sinvestmentprogramwillbefinancedbothfromtheownsourcesand through debt financing.
Significant events and transactions in 2020
Theunprecedenteddisruptiontotherestaurantindustry,triggeredbytheCOVID-19pandemicandthe subsequentlockdownmeasuresintroducedbygovernmentsaroundtheworldhadasevereimpacton AmRest’sabilitytoreachcustomersandprofitablyoperaterestaurants.Boldmeasuresweretakenby managementinordertoabsorbtheeffectsofasignificantdeclineinsalesonprofitabilityandbalancesheet liquidity.AmResthastappedintogovernmentassistanceprogramsofferedacrossmanyofitsmarkets,as describedbelowinmoredetailandhaslaunchedinternalinitiativestoadaptkeycostlinestothisnew environment.WithPizzaPortalandGlovo,twobusinessdisposalsofnon-strategicassetscommentedonin moredetailbelow,weresuccessfullyconcludedduringthecourseoftheyear,withpositiveimpactonbalance sheet.
Disposal of AmRest’s stake in PizzaPortal
FollowinganagreementwithGlovoapp23,S.L.(“Glovo”)tosellPizzaPortalsignedon13August2019,the transactionwassettledon24January2020aftertheagreedearn-outperiodhasexpiredandallconditions precedenthavebeenfulfilled.AmRestreceivedproceedsof35mEUR,inacombinationofcash(20mEUR) andnewlyissuedsharesinGlovo(15mEUR).Asaresultofthetransaction,AmRestwasincreasingitsstake in Glovo to 7.5% on a non-diluted basis.
Payroll initiatives to mitigate the impact of COVID-19 related lockdowns on the business
FollowingtheforcedclosureofrestaurantsinmostofAmRest’smarketsduringsomepartsoftheyear, governmentshaveofferedpayrollsupport,amongothers,alsototherestaurantindustry.AmResthasbeen applyingandbenefitingfromthosegovernmentinitiatives,whichhadvaryingprocedures,structuresand duration in each of the countries.
InSpain,AmRest,onthe20March2020initiatedtheprocedureapplyingfortheERTEprogram,atemporary suspensionofemploymentforitslocalentities.ThelargestofthoseprogramswastocoverKFC,LaTagliatella, BacoaandBlueFrogforatotalof3,666employees,being93%oftheworkforceinSpainandfollowingthe closureof143AmRestrestaurantsinthecountry.Inaseparatefiling,AmRestincluded60employeesofSushi Shop,translatingto93.55%ofitsworkforceandonthe14AprilappliedforanERTEforAmRestTag,S.L.U. for 55 employees (65% of workforce).
InFrance,AmRestalignedwithlocalgovernmentmeasures,hasintroducedageneralreductionofworking hoursforatotalof4,669employees,covering93%ofitsworkforceinFranceandfollowingtheclosureofup to 86% of AmRest restaurants in the country.
InPortugal,AmRestimplementedatemporarysuspensionoflaborcontracts,affectingatotalof68 employees.
InPoland,complyingwiththelocalgovernmentassistanceprogram,AmResthasimplementedareduction of working hours and salaries for a total of 4,050 employees, representing 44% of total workforce.
Inadditiontotheabovementionedgovernmentassistanceschemesaimedatpayrollcosts,AmResthas executedonadditionalinitiativestoreducecostlinesinordertoadjusttoanenvironmentofforced restaurantclosuresandlowersalesandsupportliquidity.Thoseinitiativesalsoincludedrentrelieve programs, but also loans guaranteed by governments in France and Spain.
(all figures in EUR millions unless statedotherwise)
25
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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CurrentinformationonpayrollinitiativesisincludedinNote8totheConsolidatedFinancialStatementsas for the year ended 31 December 2020.
Positive court verdict in regards to VAT settlements of AmRest Sp. z o.o.
On30July2020SupremeCourtannouncedapositivecourtverdictinregardstoVATsettlementsofAmRest Sp.zo.o.fortheyear2012andJanuary–September2013.Thecourtrejectedthecomplaintofthetax chamberagainsttheearlierverdictofthelocaladministrativecourt.Theverdictwasbasedonthestatuteof limitations on the tax liability for these years.
Disposal of AmRest’s stake in Glovo
InlinewithAmRest’sstrategy,earmarkingthestakeinGlovoasnon-strategicandalignedwithAmRest’smulti aggregatorapproachacrossallofitsmarkets,anagreementforthesaleofthe7.5%stakeinGlovowith DeliveryHerowassignedforatotalcashconsiderationof76.2mEUR.Theagreementwasannouncedonthe 19October2020andwassubjecttocustomaryconditionsprecedent.Subsequentclosureofthetransaction was announced on the 31 December 2020.
ThetransactionprovidedasolidreturnastheGroupmadeitsfirstinvestmentinGlovoinJuly2018andpaid EUR25.0millionfora10%stake.ItwasfollowedbyasaleofPizzaPortaltoGlovoinOctober2019,which AmRestboughtforanaggregateamountofca.EUR10.0million,forthetotalamountofEUR35.0millionof which EUR 15.0 million was received in Glovo’s shares.
External Debt
AspartoftheinitiativestakentomitigatetheCOVID-19impactonourbusiness,AmRestappliedforstate supportedbankloansinSpainandFrance.InApril2020SpanishandFrenchsubsidiariesofAmRestHoldings SEappliedforandreceivedstatesupportedbankloans,guaranteedbythegovernmentsin70%and90%, respectively.Inparticular,RestauraviaFoodSLandPastificioServiceS.L.U.weregrantedEUR22.5million eachandSushiShopRestaurationSASreceivedEUR20million.InMay2020FrenchsubsidiaryAmRestOpco SASreceivedstatesupportedbankloanintheamountofEUR10million,guaranteedbythegovernmentin 90%.Loans’tenorsare3yearsand5yearswith1yeargraceperiods.TheGroupwasgrantedtotalEUR75 million.Additionally,inJune2020Russiansubsidiary,OOOAmRest,wasgrantedEUR2,7millionofstate supportedbankloan,guaranteedbythegovernmentin85%.InAugust2020 SCMCzechs.r.o.wasgranted EUR 1.1 million of state supported bank loan, guaranteed by the government in 90%.
AmResthasreceivedquarterlycovenantwaiversfromitscluboffinancingbanksannouncedon9July,1 Septemberand30Septembercoveringthefirstthreequartersoftheyear.Ascheduledrepaymentof56.8m EURinbankdebthasbeenmadeinSeptember2020tothesyndicateofbanksreducingtheprincipalbank debt outstanding.
On31DecemberAmRestannouncedanagreementwithitssyndicatebanksforacovenantwaivercovering thefourthquarterof2020andthefirstthreequartersof2021includingareplacementofleverageand interestcoveragecovenantsbyaliquiditycovenantfortheabovementionedperiod.Therequiredminimum levelofliquidityofthenewcovenantassumedbytheGrouphadbeendeterminedat80millioneurosand loweredto50millioneurosforthethirdandfourthquartersof2021.Inaddition,AmRestreceivedacovenant waiver from a majority of 77% of its bondholders (Schuldscheine).
Shareholders of AmRest Holdings SE
TothebestofAmRest’sknowledgeasat31December2020AmRestHoldingshadthefollowingshareholder structure:
(all figures in EUR millions unless statedotherwise)
26
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Shareholder
Number of shares and votes at the Shareholders’ meeting
% of shares and votes at the Shareholders’ meeting
FCapital Dutch B. V.*
147 203 760
67.05%
Nationale-Nederlanden OFE 
9 358 214
4.26%
Artal International S.C.A.
11 366 102
5.18%
Aviva OFE
6 843 700
3.12%
Other Shareholders
44 782 407
20.40%
*FCapitalDutchB.V.isthesoleshareholderofFCapitalLux(holdingdirectly56509547AmRestshares)andthesubsidiary ofFinaccessCapital,S.A.deC.V.GrupoFinaccessSAPIdeCVisthedirectmajorityshareholderofFinaccessCapital,S.A.de C.V.andasubsidiaryofGrupoFar-Luca,S.A.deC.V.ThedirectmajorityshareholderofGrupoFar-Luca,S.A.deC.V.,Mr. Carlos Fernández González, is a member of AmRest’s Board of Directors. 
Changes in the Parent Company’s Governing Bodies
On 1 July, 2020 AmRest informed of the resignation presented by the director Mr. Mustafa Ogretici and the appointment by co-option to fill said vacancy of Ms. Mónica Cueva Díaz, as an independent director, approved on the same day by the Board of Directors, following a proposal from the Appointments and Remunerations Committee and a report from the Board. Ms. Mónica Cueva Díaz also held the positions of member of the Audit Committee and the Health and Safety Committee; the latter of which started to be chaired by Ms. Romana Sadurska.
In accordance with the provisions of article 244 of the Capital Companies Law, said appointment is subject to ratification by the next General Shareholders’ Meeting.
On 1 December, 2020 AmRest informed that the Board of Directors of the Company, following the recommendation of the Appointments and Remuneration Committee, has resolved to appoint Mr. José Parés Gutiérrez, past Chairman of the Board of Directors and of its Executive Committee, as new Executive Chairman of the AmRest Group.
The Executive Chairman was delegated all of the powers that correspond to the Board of Directors except those that are non-delegable by virtue of the current legislation, the Bylaws and the Regulations of the Board of Directors of AmRest.
As at 31 December 2020 the composition of the Board of Directors was as follows:
■
Mr. José Parés Gutiérrez
■
Mr. Carlos Fernández González
■
Mr. Luis Miguel Álvarez Pérez
■
Mr. Emilio Fullaondo Botella
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Ms. Romana Sadurska
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Mr. Pablo Castilla Reparaz
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Ms. Mónica Cueva Díaz
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Eduardo Rodríguez-Rovira Rodríguez (Secretary, non-Board member)
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Jaime Tarrero Martos (Deputy Secretary, non-Board member)
As at the day of publication of this Report the composition of the Board of Directors has not changed.
Changes in the number of  shares held by members of the Board of Directors
Duringtheyear2020thefollowingchangesoccurredwithrespecttoAmRestsharesandstockoptionsheld by the members of the Board of Directors of AmRest.
Asat31December2019Mr.CarlosFernándezGonzález(memberoftheCompany’sBoardofDirectors)held throughitscloselyassociatedperson,FCapitalDutchB.V.,147203760sharesoftheCompanywithatotal 
(all figures in EUR millions unless statedotherwise)
27
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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nominalvalueofEUR14720376.On31December2020,Mr.CarlosFernándezGonzálezstillheld147203 760 AmRest’s shares with a total nominal value of EUR 14 720 376 through FCapital Dutch B.V.
Asat31December2019Mr.CarlosFernándezGonzálezdidn’townAmRestsharesthroughanyotherclosely associated person.
Asat31December2020heheldthroughhisanothercloselyassociatedperson-FinaccessMéxico,S.A.de C.V.,SociedadOperadoradeFondosdeInversión,1172145AmRestshareswithatotalnominalvalueofEUR 117214.5.ThedirectholderofthesharesisLatin10,SAdeCV,afundindependentlymanagedbyFinaccess Mexico, S.A. de C.V. (a subsidiary of Grupo Finaccess).
Transactions on own shares concluded by AmRest
ThecommencementofthepurchaseoftreasurysharesoccurredonthebasisofResolutionNo.7ofthe GeneralMeetingoftheCompanyof19May2015concerningtheauthorizationfortheManagementBoard toacquiretreasurysharesintheCompanyandtheestablishmentofreservecapitaland(replacingit) ResolutionNo.9oftheGeneralMeetingoftheCompanyof6June2018concerningtheauthorizationtothe BoardofDirectorsforthederivativeacquisitionoftheCompany’sownsharesmadedirectlybytheCompany or indirectly through its subsidiaries as well as for the sale of the own shares.
TheCompanywasacquiringtheownsharesforthepurposesofexecutionofstockoptionprograms: Employee Stock Option Plan and Management Incentive Plan.
Intheperiodbetween1January2020and31December2020,AmRestdidn’tpurchaseanyownshares. Duringthesameperiod,theCompanydisposedatotalof100954ownshareswithatotalnominalvalueof EUR10095.4andrepresenting0.0460%ofthesharecapitaltoentitledparticipantsofthestockoptionsplans. Disposaltransactionsundertheseplanswereexecutedinthreesettlementmethods,whichimpactedthe saleprice.Majorpartoftheshareswastransferredtotheparticipantsfreeofcharge.Asat31December 2020AmRestheld623461ownshareswithatotalnominalvalueofEUR62346.1andrepresenting0.2840% of the share capital.
The subsidiaries of AmRest Holdings SE do not hold any Company’s shares.
Dividends paid and received 
IntheperiodcoveredbytheseConsolidatedFinancialStatementstheGrouphaspaidadividendtonon-controlling interest of SCM Sp z o.o. in the amount of EUR 0.8 million (PLN 2.6 million). 
Average period of payment to suppliers
PursuanttoLaw15/2010ofJuly5,whichstipulatesmeasurestocombatlatepaymentsincommercial transactions,theinformationontheaverageperiodofpaymenttosuppliersofAmRestanditsSpanish subsidiaries at 31 December 2020 and 2019 is as follows:
2020 
2019 
Number of days:
Average period of payment to suppliers
102.2
23.4
Ratio of payments 
101.7
23.9
Ratio of outstanding invoices 
107.9
17.9
Millions of EUR:  
Total payments 
173.9
186.5
Outstanding invoices 
16.5
16.8
The paymentsto suppliers oftheSpanishconsolidatedcompaniesreflectedintheabovetablearetrade payables as they relate to goods and services.  
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Factors impacting the Group’s development
TheBoardofDirectorsofAmRestbelievesthatthefollowingfactorswillhaveasignificanteffectonthe Group’s future development and results.
External factors
■
competitiveness – in terms of prices, quality of service, location and quality of food,
■
demographic changes,
■
consumer habits and trends as to the number of people using the restaurants,
■
number and location of the competitors’ restaurants,
■
changesinthelawandregulationswhichhaveadirecteffectonthefunctioningoftherestaurants and the employees employed therein,
■
change in real estate rental costs and related costs,
■
changesinthepricesofingredientsusedtopreparemealsandchangesinthepricesofpackaging materials,
■
changes in the general economic condition in all countries where the business is run,
■
changes in consumer trust, the amount of disposable income and individual spending patterns,
■
changes in legal and tax determinants,
■
adverse changes on the financial markets.
■
situation around COVID-19 pandemic, including progress and efficiency of medical treatments
Internal factors
■
gainingandtrainingthehumanresourcesnecessaryforthedevelopmentoftheexistingandnew restaurant networks,
■
obtaining attractive locations,
■
effective launching of new brands and products,
■
building an integrated information system.
Basic risks and threats the Group is exposed to
TheBoardofDirectorsofAmRestisresponsiblefortheriskmanagementsystemandtheinternalcontrol systemaswellasforreviewingthesesystemsforoperatingefficiency.Thesesystemshelptoidentifyand manageriskswhichmaypreventtheexecutionofthelong-termobjectivesofAmRest.However,havingthese systemsinplacedoesnotensurecompleteeliminationoftheriskoffraudandviolationofthelaw.TheBoard ofDirectorsofAmRestispermanentlyanalyzingandreviewingriskstowhichtheGroupisexposed.Themain currentrisksandthreatshavebeensummarizedinthissection.AmRestreviewsandimprovesitsrisk management and internal control systems on an on-going basis.  
Liquidity risk
TheGroupisexposedtotheliquidityriskduetothebreachofcovenantsandreclassificationoflong-term debttoshort-termwhichcanbethereforedueinthenext12months,however,priorto2020yearend AmResthasobtainedfromitsfinancingbanksandmajorityofbondholders(Schuldschein)waiverstothe compliancewithcertaincovenantsrelatedtotheGroup’sleverageandinterestcoverageratiosforthefourth quarter of 2020 and the first, second and third quarters of 2021. 
TheGroupactivelymanagesliquidityresourcesanddoesitsbesttoimprovethebusiness.Strengtheningof theGroup’spositionintermsofliquidityandmitigationofadverseimpactsofCOVID-19outbreakistakenon severalareas.TheGroupmaintainsclosecommunicationwithitsfinancingbanks.InMarch2020Grouphas drawnentirefacilityavailableunderrevolvingTrancheDofsyndicatedbankloan,increasingamountdrawn fromEUR37.3millionintheendof2019to98.9millionintheendof1Q2020.AdditionallyinApril2020 SpanishandFrenchsubsidiariesofAmRestHoldings,SEappliedforstatesupportedbankloans,guaranteed bythegovernmentsin70%and90%,respectively.TheGroupwasgrantedtotalEUR78.9million.Additionally, theGroupseesrecoveryinitscorebusinessasthenumberofopenrestaurantshaveincreasedandthe revenues trends have been recovering.
(all figures in EUR millions unless statedotherwise)
29
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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AmResthasestablishedinternaltaskforcesineverymarkettomonitorthesituationalsoaroundcostsaving initiativesandalsoabigpartofcapitalexpenditureshavebeenputunderreview.TheGroupwasandis closelymonitoringavailableprogramthatareofferedonvariousmarkets.Thegovernmentsupport programsincludeforexampledirectsubsidiestopayrollcosts,taxexemptions,socialsecuritycontributions reductions.AdditionallyentitiesfromtheGroupwereabletoapplyforextendeddeadlinesforpaymentsof various taxes.
TheGroupanalyzesliquidityneedswithparticularfocusonmaturityofdebtandproactivelyinvestigates various forms of financing that could be utilized if needed. 
Risk related to the COVID-19 and its implications for the economy and society
TheCOVID-19pandemichasrapidlyspreadaroundtheworld.Mostgovernmentsaretakingconstrain measurestocontainthespread,whichincludeisolation,confinement,quarantineandrestrictionstofree movement of people and closure of public and private facilities.
Thissituationisaffectingsignificantlytheglobaleconomy,includingHORECAsector,aswellasAmRestGroup.
VisibleresultsoftheCOVID-19outbreakincludethedecreaseindemand,thedisruptionorslowdownof supplychainsandasignificantincreaseineconomicuncertainty,increaseofvolatilityinthepriceofassets, exchangeratesandadecreaseinlongterminterestrates.PossibleresultsoftheCOVID-19outbreakmay include changes in the market environment, peoples behaviors and ways of living.
TheCOVID-19pandemichasaparticularlynegativeimpactontherestaurantssectors.Thebanorsignificant limitationsinoperationofrestaurantsresultedinadecreaseinbusinessactivityandcustomerdemandand consequently decrease of revenues.
Groupmanagementiscloselymonitoringthedevelopmentofsituationandlooksforthewaysofmitigating theimpactofCOVID-19spreadontheGroup.Inaddition,theGroupimplementedadditionalmeasuresto mitigate the risk of infection among its employees, including in particular: 
■
ProvidingdetailedinstructionsandguidelinesonmonitoringthehealthoftheGroup’semployees and the health of Group’s customers.
■
Strengtheningalreadystringenthygiene,cleaningandsanitationproceduresandintroducing contactless options that protect both employees and guests in restaurants.
■
Providing the restaurant employees with additional personal protection and hygiene supplies.
■
Requestingtoreducethenumberofmeetingsaswellasdomesticandforeignbusinesstravel,and touseteleconferencingandvideo-conferencingfacilitiestothelargestextentpossible,aswell enabling remote work.
Rental agreements and continuation options
AlmostallAmRestrestaurantsoperateinrentedfacilities.Themajorityoftherentalcontractsarelong-term andtheyareusuallyconcludedforatleast10yearsfromthedateofcommencingtherental(assumingthat allcontinuationoptionsareexercised,onspecifiedterms,andnotincludingcontractswhicharesubjectto periodicrenewal,unlesstheyareterminated,andcontractsconcludedforanindefiniteperiod).Anumberof rentalcontractsgrantAmResttherighttoprolongthecontractprovidedthattheCompanycomplieswiththe termsofrental.Regardlessofwhetherthetermsarecompliedwithornot,thereisnoguaranteethatAmRest willbeabletoprolongarentalcontractontermssatisfactoryfromthebusinesspointofview.Ifthisisnot possibleapotentiallossofimportantrestaurantlocationsmayhaveanunfavorableeffectonAmRest’s operating results and its business activities.
Asaconsequenceofthepandemicandlackofbusinessactivityorrelativelyloweractivityincertainlocations, theGroupperformedreviewofitsrentalagreementsandhasenteredintonegotiationswithlandlords.One oftheoutcomesmaybethatsomelocationswouldneedtobeclosedduetoworsenedeconomicsandlack ofmutualagreementbetweentheparties.Terminatingtherelevantrentalcontractoncosteffectiveterms mayproveimpossible.Thissituationmayalsohaveanadverseeffectonthebusinessactivitiesandoperating resultsoftheGroup.Additionally,closinganyofthefranchisedrestaurantsissubjecttotheapprovalbythe franchisor and it is not certain that such approval will be obtained.
(all figures in EUR millions unless statedotherwise)
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AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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InthecaseofRussianandChineserestaurantsacquiredbyAmRestaccordinglyinJuly2007andDecember 2012,theaveragetermoftherentalcontractsisrelativelyshortercomparedtoAmRestrestaurantsinthe remaining countries. This results from the specific nature of these markets.
Dependency on the franchisor
AmRestmanagesKFC,PizzaHut,BurgerKingandStarbucks(inRomania,Bulgaria,GermanyandSlovakia)as afranchisee,andthereforeanumberoffactorsanddecisionsrelatedtothebusinessactivitiesconductedby AmRest depend on the limitations or specifications imposed by the franchisors or on their consent.
ThedurationofthefranchisingagreementsrelatedtotheKFC,PizzaHutandBurgerKingbrandsis10years. AmResthastheoptionofextendingthisperiodforthenext10yearsprovidedthatitmeetstheconditions specifiedinthefranchisingagreementsandotherrequirements,includingthepaymentoftherelated continuation fee. 
Despitemeetingtheabove-mentionedterms,thereisnoguaranteethataftertheexpiryoftheseperiodsa givenfranchisingagreementwillbeprolongedtothenextperiod.InthecaseofKFCandPizzaHut restaurants,thefirstperiodcommencedin2000.AmRestandYumareconstantlyintouchwithrespectto currentandfurthercooperation.InthecaseofBurgerKing,thefirstperiodcommencedin2007withthe opening of the first restaurant of this brand.
FranchiseagreementsforStarbucksstoresinRomaniaarevalidtill2023,inBulgariauntil2027andin Germany and Slovakia until 2031.
Dependency on cooperation with minority shareholders 
AmRestopensStarbucksrestaurantsinPoland,theCzechRepublicandHungarybasedonapartnership agreementswithStarbucksCoffeeInternational,Inc.ThepartnershipassumesStarbucksCoffee International,Inc.istheminorityshareholderofcompaniesoperatingStarbucksstoresinmentioned countries.Therefore,somedecisionsaspartofthejointbusinessactivitiesaredependentonthepartners’ consent.
TheagreementswithStarbuckswereconcludedforaperiodof15yearswithapossibilityoftheirextension forthenext5yearsuponmeetingthespecifiedconditions.IfAmRestfailstocomplywiththeobligationto openandruntheminimumspecifiednumberofcafés,StarbucksCoffeeInternational,Inc.shallhavethe righttoincreaseitsshareinthesecompaniesbyacquiringsharesfromAmRestSp.zo.o.atapriceagreed between the parties based on the valuation of the companies.
No exclusivity rights
ThefranchisingagreementsconcerningrunningofKFC,PizzaHutDine-In(excludingRussiaandGermany) andBurgerKing(excludingCzechRepublicandSlovakia)brandsdonotcontainprovisionsongranting AmRestanyexclusivityrightsonagiventerritory,protectionoranyotherrightsontheterritory,inthearea oronthemarketsurroundingAmRestrestaurants.However,inpractice,duetothescaleofAmRest’s operations(includingawell-developeddistributionnetwork),thepossibilitythatacompetitiveoperator(to thebrandscurrentlyoperatedbytheGroup)shouldappearwhowouldbeabletoeffectivelycompetewith the AmRest Group restaurants is relatively limited. 
InthecaseofStarbucksrestaurants,AmRestsubsidiariesaretheonlyentitiesauthorizedtodevelopandrun StarbuckscafésinPoland,theCzechRepublicandHungary,withoutexclusivityrightstosomeinstitutional locations.TheexclusiverightsapplyalsotorestaurantsoperatedinRomania,Bulgaria,Germanyand Slovakia.
Risk related to the consumption of food products
Consumerpreferencesmaychangeinconnectionwithdoubtsarisingastothehealthfulpropertiesofchicken whichisthemainingredientinKFCmenu,orasaresultofunfavorableinformationbeingcirculatedbythe massmediaconcerningthequalityoftheproducts,diseasescausedbythemanddamagestohealthasa resultofeatinginAmRestrestaurantsandrestaurantsofotherfranchiseesofKFC,PizzaHut,BurgerKing, Starbucks,LaTagliatella,BlueFrog,KABB,BacoaandSushiShop,andasaresultofrevealingunfavorable datapreparedbythegovernmentoragivenmarketsectorconcerningtheproductsservedinAmRest restaurantsandrestaurantsofotherfranchiseesofKFC,PizzaHut,BurgerKing,Starbucks,LaTagliatella,Blue Frog,KABB,BacoaandSushiShop,health-relatedissuesandissuesrelatedtothefunctioningpatternsofone 
(all figures in EUR millions unless statedotherwise)
31
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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ormorerestaurantsrunbothbyAmRestandthecompetition.Theabove-mentionedriskislimitedbyusing thehighestqualityingredientsinAmRestrestaurants,whichcomefromreliableandreputablesuppliers, compliancewithstrictqualitycontrolandhygienestandardsandtheuseoftopmodernequipmentand processes which ensure the absolute safety of the meals. 
Risk related to keeping key personnel in the Group
TheIssuer’ssuccessdependstosomeextentontheindividualeffortofselectedemployeesandkeymembers ofmanagement.ThemethodsofremuneratingandmanaginghumanresourcesdevelopedbytheIssuer helpensurealowrotationofthekeypersonnel.Additionally,thecareerplanningsystemsupportspreparing successorsreadytoexecutetasksinkeypositions.TheIssuerbelievesitwillbeabletoreplaceitskey personnel.Regardlessofthat,theirlossmayhaveashort-termadverseeffectonthebusinessactivitiesand operating results of the Issuer.
Risk related to labour costs of restaurant employees and employing and keeping professional staff
RunningcateringactivitiesonsuchalargescaleastheIssuerdoesrequiresemployingalargenumberof professionals.Excessiveoutflowofemployeesandtoofrequentchangesinmanagerialpositionsmaypose asignificantrisktothestabilityandqualityofthebusinessactivities.Duetothefactthatsalariesinthe cateringsectorarestillrelativelylowerthaninotherbranches,thereisariskofoutflowofqualifiedstaffand thusariskoftheGroupbeingabletoensuretheappropriatestaffnecessaryforprovidingthehighestquality cateringservices.Inordertoavoidtheriskoflosingqualifiedstaffitmaybenecessarytograduallyincrease thesalaryrates,whichmayhaveanadverseeffectonthefinancialstandingoftheIssuer.Additionalriskin employment area may be caused by fluctuations in unemployment rate. 
Risk related to limited access to foodstuffs and the variability of their cost
TheIssuer’ssituationisalsoaffectedbytheneedtoensurefrequentdeliveriesoffreshagriculturalproducts andfoodstuffsandanticipatingandrespondingtochangesinsuppliescosts.TheGroupcannotruleoutthe riskrelatedtodeliverydeficitsorinterruptionscausedbyfactorssuchasunfavorableweatherconditions, changesinlegalregulationsorwithdrawingsomefoodstuffsfromtrading.Alsotheincreaseddemandfor certainproductsaccompaniedbylimitedsupplymayleadtodifficultiesinobtainingthembytheGrouporto priceincreasesforthoseproducts.Boththedeficitsandproductpriceincreasesmayhaveanadverseeffect ontheGroup‘sresults,operationsandfinancialstanding.Inordertomitigatethisrisk(amongothers)AmRest Sp.zo.o.concludedacontractwithSCMSp.zo.o.fortheprovisionsofservicescomprisingintermediation and negotiating terms of delivery to restaurants, including negotiating terms of distribution agreements.
Risk related to developing new brands
AmResthasoperatedBacoa,SushiShopandallthevirtualbrandsforarelativelyshorttime.Astheseare newconceptsforAmRest,thereisariskrelatedtodemandfortheproductsofferedandtheiracceptanceby customers.
Risk related to opening restaurants in new countries
Openingortakingoverrestaurantsoperatinginanewgeographicalandpoliticalareainvolvestheriskof varyingconsumerpreferences,ariskofinsufficientknowledgeofthemarket,theriskoflegalrestrictions arising from local regulations and the political risk of these countries.
Currency risk
TheresultsofAmRestareexposedtocurrencyriskrelatedtotransactionsandtranslationsintocurrencies otherthanthecurrencyinwhichbusinesstransactionsaremeasuredintheindividualCapitalGroup companies.TheGroupadjustsitscurrencyportfolioofdebttothegeographicalstructureofitsprofileof activities. Additionally, AmRest uses forward contracts to secure transaction risks on a short term basis.
Risk related to the current geopolitical situation
TheCompanyconductsitsbusinessincountrieswherepoliticalsituationisuncertain.Tensionsaroundthat subjectmayresultinanegativeimpactoneconomy,includinginstablecurrency,interestrates,liquidity, supplychaindisruptionsandconsumerconfidencedeterioration.Alltheseeventsanduncertaintythat accompaniesthemmayhaveasignificantimpactontheGroup’soperationsandfinancialposition,theeffect ofwhichisdifficulttopredict.Thefutureeconomicandregulatorysituationmaydifferfromthe 
(all figures in EUR millions unless statedotherwise)
32
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Management’sexpectationshoweveritisbeingmonitoredinordertoadjuststrategicintentionsand operational decisions, which will minimize business risks.
Risk of increased financial costs
TheIssueranditssubsidiariesareexposedtoacertainextenttoadverseimpactofinterestratefluctuations inconnectionwithobtainingfinancingwhichbearsfloatinginterestratesandinvestinginassetsbearing floatinginterestrates.Theinterestratesofbankloansandborrowingsandissuedbondsarebasedona combinationoffixedandfloatingreferencerateswhichareupdatedoverperiodsshorterthanoneyear. Additionally,theIssueranditssubsidiariesmay,aspartoftheinterestratehedgingstrategy,enterinto derivativeandotherfinancialcontractsthevaluationofwhichissignificantlyaffectedbythelevelofreference rates.
Tax risk
Intheprocessofmanagingandmakingstrategicdecisions,whichcanaffectthetaxsettlements,AmRestis exposedtotaxrisk.Allirregularitiesoccurringintaxsettlementsincreaseoftheriskofdisputeinthecaseof apotentialtaxcontrol.Aspartoftheserisks’minimization,AmResttakescareofdeepeningtheknowledge ofitsemployeesintheareaoftaxriskmanagementandcompliancewithrespectivelegalrequirements.The Companyimplementsadequateprocedurestofacilitatetheidentificationandsubsequentreductionor elimination of risks in the area of tax settlements.
Moreover,inconnectionwithfrequentlegislativechanges,inconsistencyofregulations,aswellasdifferences ininterpretationoflegalregulations,AmRestusesprofessionaltaxadvisoryservicesandappliesforbinding interpretations of the tax law provisions.
CurrentfiscalsupervisionsarepresentedinNote33totheConsolidatedFinancialStatementsasfortheyear ended 31 December 2020.
Credit risk 
Exposuretocreditriskincludecashandcashequivalentsandtradeandotherreceivables.Withthe developmentoffranchisebusiness,AmRestisgettingexposedmoretocreditrisk.Thereforethequalityof franchisees portfolio is key priority.
Risk of economic slowdowns
EconomicslowdowninthecountrieswhereAmRestrunsitsrestaurantsmayaffectthelevelofconsumption expenditureonthesemarkets,whichinturnmayaffecttheresultsoftheAmRestrestaurantsoperatingon these markets. 
Risk related to seasonality of sales
TheseasonalityofsalesandinventoriesofAmRestisnotsignificant,whichistypicalfortherestaurant industry.OntheEuropeanmarketrestaurantsrecordlowersalesinthefirsthalfoftheyear,mainlydueto the lower number of sale days in February and the relatively less frequent visits to restaurants.
Riskofcomputersystembreakdownsandtemporarybreaksinservingcustomersinnetwork restaurants
Apotentialpartialorcompletelossofdatainconnectionwithcomputersystembreakdownsordamageor lossofkeytangiblefixedassetsoftheGroupmightresultintemporaryinterruptionsinservingcustomersin restaurants,whichmighthaveanadverseeffectontheGroup’sfinancialresults.Inordertominimizethis risk,theIssuerhasimplementedappropriateproceduresinordertoensurethestabilityandreliabilityofIT systems.
Cyberattack risk
Group’soperationsaresupportedbywidevarietyofITsystems,includingpoint-of-salesystems,electronic orderingplatforms,supply-chainmanagementsystemsandfinanceandcontrollingtools.Consequently,the Groupisexposedtotheriskoftemporaryoperationaldisruption,dataintegrityriskand/orunauthorized accesstoconfidentialdata,whichmaybearesultofbothintentionalcyberattackoranunintentionalevent. Inordertomitigatetheserisks,theGroupestablishedspecializedIT-securityunitandimplemented appropriatecybersecurityriskmitigationtools,includingsecuritypolices,personneltrainingandtechnical prevention countermeasures.
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(all figures in EUR millions unless statedotherwise)
33
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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Risk related to the exit of the UK from the European Union
Itis difficulttopredicthowtheexitoftheUnitedKingdomfromtheEuropeanUnionmayaffectthefinancial markets.DespitethefactthatAmRestrunsonlyfewrestaurantsintheUK,theriskofadverseeffectsofBrexit oneconomyofdifferentUEcountries(wheretheCompanyoperatesitsbusiness)cannotbeentirely excluded.
Factors remaining outside the Group’s control
ThisriskisrelatedtotheeffectoffactorsremainingoutsidetheGroup’scontrolonAmRest’sdevelopment strategywhichisbasedonopeningnewrestaurants.Suchfactorsinclude:opportunitiesforfindingand securingavailableandappropriatelocationsforrestaurants,theabilitytoobtainthepermitsrequiredby relevant bodies, the possibility of delays in opening new restaurants.
Activity in Research and Development area
TheGroupwantstoservetoitscustomersthehighestqualityproductsthatarebalancedintermsoftaste andnutritionalcomposition.Followingbusinesstrendsandcustomerneedsallbrandsoperatedbythe Grouphaveestablisheddepartmentsfocusingonnewproductdevelopment,aswellasimprovementofthe existing products.
Activitiesinthatareaincludeforexample:marketresearches,carefulselectionofingredients,packaging, creationandpreparationofnewproducts,tastingsfollowedbycollectionofcustomersfeedbacksandlaunch of the final products.
(all figures in EUR millions unless statedotherwise)
34
AmRestGroupConsolidatedDirectors’Reportfortheyearended31December2020
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ThestatementscontainedinthisDirector’sReportmaycontaincertainforward-lookingstatementsrelating totheGroupthatarebasedonthebeliefsoftheGroup’smanagementaswellasassumptionsmadebyand informationcurrentlyavailabletotheGroup’smanagementandarenotaguaranteeoffutureperformance ordevelopments.Theseforward-lookingstatementsare,bytheirnature,subjecttosignificantrisksand uncertainties.TheGroupdoesnotintendtoupdateorotherwiserevisesuchforward-lookingstatements, whether as a result of new information, future events or otherwise. 
Relianceonanyforward-lookingstatementsinvolvesknownandunknownrisksanduncertaintiesand, accordingly,readersarestronglycautionedtonotplacerelianceonanyforward-lookinginformationor statements.
35
 NON-FINANCIAL INFORMATION STATEMENT OF AMREST HOLDINGS SE FOR 2020
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36
AmRestGroupNon-financialInformationStatementfor2020
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INTRODUCTION
AccordingtotheRoyalDecree-Law11/2018of28December,relatingtonon-financialinformationand diversity,theBoardofDirectorsofAmRestHoldingsSEisissuingthisNon-financialInformationStatement (NFIS)forthe2020FinancialYearaspartoftheConsolidatedDirectors’Report,whichispresentedwith ConsolidatedAnnualAccounts.Thisstatementhasapubliccharacterandmaybereviewedonthefollowing website:www.amrest.eu.Forthepurposesofthisdocument,thefollowingshouldbeunderstoodtomean thesame:AmRestHoldingsSE,AmRest,theAmRestgroupandthegroup.Thereportingscopeisfrom1 January2020to31December2020.Allthedataispresentedasof31December2020unlessstatedotherwise.
ThestatementisanindependentpartoftheConsolidatedDirectors’Reportfor2020andincludes informationconcerningallthesubsidiariesofAmRestHoldingsSE.Inthecaseswherethedatapresented doesnotapplytoallAmRestunits,thescopeisspecifiedexactly.Asof31December2020,AmRestoperated 2 337 equity and franchised restaurants and coffee houses in 25 countries. 
AlthoughthefranchisedrestaurantsofAmRestareapartofitsportfolio,thegroupdoesnotdisclose information regarding these restaurants, as they are operated by third parties. 
Asof31December2020theCompany’sregisteredofficewasPaseodelaCastellana163,28046Madrid, Spain.ThefollowingNFIShasbeenpreparedinaccordancewiththeGRISustainabilityReportingStandards, whicharelistedinthetableattheendofthestatement.Thematerialtopicscoveredinthefollowing documentwerediagnosedduringthematerialityanalysis,asfurtherexplainedinSection3(Materiality analysis) herein.  
TheBoardofDirectorsanalysesthegroup’sperformancebygeographicalbreakdownintodivisionstherefore theinformationmightbepresentedinthisway.Ownrestaurantandfranchisebusinessisanalyzedbyfour operatingsegmentspresentinggroupperformanceingeographicbreakdown.Geographicalareasare identifiedbasedonthesimilarityofproductsandservices,similarcharacteristicsoftheproductionprocess and on the customer base and economic similarities (i.e. exposure to the same market risks).
AMREST’S BUSINESS MODEL AND OPERATIONS IN 2020
AmRestHoldingsSEisoneoftheleadingpubliclylistedEuropeanrestaurantoperatorsandhasapresence in25countriesinEuropeandAsia.TheportfoliooftheGroupconsistsoffourfranchisedbrands(KFC,Pizza Hut,Starbucks,BurgerKing)and14proprietarybrandsincludingninevirtualbrands(LaTagliatella,BlueFrog, Kabb,Bacoa,SushiShop,andvirtualbrands:Pokaï,Lepieje,‘OiPoke,MoyaMisaRamen,SushiTone,Pierwsze iDrugie,VivaSalad!,Eat’sFine,Cremontano).TheofferofvirtualbrandsinPolandisavailablealsounderthe FoodAboutconceptthatenablesconsumerstoorderdifferentvirtualbranddishesunderoneorder.For eachofthebrands,AmRestrestaurantsservehigh-qualitymealsmadefromfreshproductsfollowingoriginal recipes and strict standards 
AmRest’s operations are well-diversified across five main categories of the restaurant industry: 
1.Quick Service Restaurants (“QSR”), represented by KFC and Burger King, 
2.FastCasualRestaurants(“FCR”),representedbyPizzaHutFastCasualDineInandExpress,Bacoa and Sushi Shop, 
3.CasualDiningRestaurants(“CDR”),representedbyPizzaHutDineIn,LaTagliatella,BlueFrogand KABB 
4.Coffee category, represented by Starbucks
5.Virtualbrands,whoseofferisavailableonlyonline,representedbyPokaï,Lepieje,‘OiPoke,Moya Misa Ramen, Sushi Tone, Pierwsze i Drugie, Viva Salad!, Eat’s Fine and Cremontano.
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AmRestGroupNon-financialInformationStatementfor2020
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Currently,AmRestoperates2337restaurantsin25countries,includingPoland,theCzechRepublic,Hungary, Russia,Romania,Bulgaria,Serbia,Croatia,Slovakia,Austria,Slovenia,Spain,France,Germany,Portugal, China, Armenia, Azerbaijan, Belgium, Italy, Switzerland, Luxembourg, the UK, the UAE and Saudi Arabia.
Table. AmRest brands’ business models
Franchised brands
KFC
KFCisaglobalrestaurantchainspecializinginchickenmeals,aworldpioneerofquickservice restaurants.KFCisabrandforthosewhovaluehighqualityproductsandserviceatagoodprice. AmRestHoldingsSEoperatesover800KFCunitsin12countries:Poland,CzechRepublic, Hungary, Russia, Bulgaria, Serbia, Croatia, Spain, France, Germany, Austria and Slovenia.  
Pizza Hut
PizzaHutisoneofthelargestrestaurantchainsintheworld.Thebrandoffersawideselection ofpizzasstraightfromtheoven,preparedwithfreshingredients.Sincetheopeningofthefirst restaurantin1958,PizzaHutisknownforitsperfectserviceandrelaxedatmosphere.AmRest Holdingsoperatesover450restaurants(bothequityandfranchise)in9countries:Poland,Czech Republic, Hungary, Russia, Slovakia, Armenia, Azerbaijan, France and Germany. 
Starbucks
Starbucksisagloballeaderinthecoffeesector,offeringitsguestsawideselectionofcoffees fromaroundtheworld,tea,aswellasawiderangeoffreshsnacksanddesserts.In2020 StarbuckscoffeehousesoperatedbyAmRestwerepresentin8markets:Poland,Germany, Czech Republic, Slovakia, Hungary, Romania, Bulgaria and Serbia.
Burger King
Foundedin1954,theBurgerKingbrandisthesecondlargestrestaurantchainintheworld, specializinginflame-broiled fast-food hamburgers.AmRestoperatesBurgerKingoutletsin Poland, Bulgaria, the Czech Republic, Slovakia and Romania. 
Equity brands
La Tagliatella
LaTagliatellaisadynamicallygrowinginternationalCasualDiningchain.AmRest’sacquiredthe brandinApril2011.LaTagliatellarestaurantsareoperatedbyAmRestanditsfranchisees.Asof 2020, the brand is present in four countries: Spain, Portugal, France and Germany.
Blue Frog
BlueFrogisanunusualconceptcombiningelementsofacasualrestaurantwithawiderange ofdrinksonoffer.TherestaurantservesdishesfromtheAmericankitchenenrichedbydistinct Asian influences. In 2020 the brand was present in two countries: China and Spain. 
KABB
KABBBistroBarisapremiumDine-InrestaurantservingdishesinChina.AmRestbecamean owneroftheKABBbrandinDecember2012bypurchasingthemajoritystockoftheBlue Horizon Hospitality Group LTD. 
Sushi Shop 
SushiShopbecamepartofAmRest’sportfolioinOctober2018.SushiShopoperatesachainof 183Japaneserestaurants,one-thirdofwhicharefranchisedout.SushiShopispresentin10 differentcountries,includingFrance,Spain,Portugal,Belgium,Luxembourg,theUK, Switzerland, Italy, Saudi Arabia and UAE. 
Bacoa
Bacoaisachainof7premiumburgerrestaurantslocatedinthreecitiesinSpain(Barcelona, Madrid,Lleida).ThebrandbecamepartofAmRest’sportfolioin2018.Establishedin2010,the companyoperatesself-ownedrestaurantsandfranchises.Bacoavaluepropositionisbasedon fresh,natural,ecoproductssourcedfromexpertsuppliersandacentralkitchenthatdelivers high-quality burgers in trendy surroundings. 
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AmRestGroupNon-financialInformationStatementfor2020
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Virtual brands
Pokaï
PokaïisavirtualbrandthatwascreatedbySushiShopinApril2018.Itoffersalargerangeof pokebowlsanditsproductsaresoldthroughaggregators(Deliveroo,UberEATSetc). Pokaïis present in France, Belgium, Spain, Italy, Luxembourg, UK, Switzerland and UAE.
Viva Salad
VivaSalad!isabranddevelopedexclusivelyforthedeliverychannelthatoffersfresh,healthy andhighlycustomizabledishesdividedintofewsegments:Vivasalads,proteindishes,desserts, milk-shakes,fruitwatersandsmoothies.TheconceptwaslaunchedinMadridandBarcelonain June 2020. The dishes are prepared in selected La Tagliatella locations.
Lepieje
LepiejeisavirtualbrandcreatedfordeliveryonlyinresponsetotheShadowKitchenprojectof AmRestandtotheglobalrestaurantmarkettrends.ThebrandhasoperatedinPolandsince December2019andisaccessibleviaaggregators.Thebrandisinspiredbythedumplingsfrom different parts of the world.
 ‘Oi Poke
‘OiPokeisavirtualbrandofferingexoticbowls,withmeat,fishorshrimpandaselectionof freshandoriginaladditions.ThecuisinecomesfromHawaii,whereeverything"perfect"is called"'Oi".ThebrandcontributestotheShadowKitchenprojectofAmRest.Ithasoperated via aggregators since December 2019.
Pierwsze i Drugie
TheofferofPierwszeiDrugieisbasedontraditionalflavorsofbelovedPolishcuisineandthe latestinsightintoconsumerpreferences.Itincludesarangeofbestsellers,availablethrough fast and convenient delivery.
MOYA MISA RAMEN
MOYAMISARAMENisaperfectchoiceforeveryonewhoenjoyAsiancuisineandexperimenting withdifferentflavorcombinations.Theofferisfullypersonalized,allowingconsumersto compose their own recipe for perfect Ramen in just few steps.
Sushi Tone
SushiToneoffers8setstochooseandallthemostpopularrolls,includingNigiriandFutomaki, aswellastypicalAsiansidedisheslikeMisosoupwithtofuorkimchisalad.Thebrandsources ingredientsfromAmRest’scarefullychosensuppliers,offeringonlyproductsofoutstanding quality. 
EAT’S FINE
Eat’sFineisavirtualbranddevelopedinPolandin2020,aspartoftheFoodAboutconcept.It iscommittedtorespondingtospecificdietaryneedsandcustomerexpectations.Thebrand offers a wide range of healthy, plant-based meals for any occasion.
Cremontano
CremontanotakesinspirationfromtheTuscantraditionofartisanice-creammanufacturers. Thebrandbelievesinusingnaturalingredients,andrespectsthetraditionalrecipesandthe importanceofthedetails.Thebesttasteoficecreamisbornintheprocessofmaking,thatis why Cremontano pays attention to the methods it uses and takes pride in its craft.
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AmRestGroupNon-financialInformationStatementfor2020
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Business strategy 
AmRestbuildsitsbusinesswithenergyandpassion,leadingitwithdeterminationandasenseof responsibility.Thecompanyhasfocusedonthedevelopmentandexpansionofitsmaturebrandsand expandingtheportfolio.Recently,theGrouphasbeenimplementingthestrategythataimstomakeitthe restaurantmarketleaderintheQuickServiceRestaurantsandCasualDiningRestaurantssegmentsby developing brand restaurant chains that are scaling and meeting the profitability criteria. 
AmRest strategy: Leverage our culture, international capability and superior brand portfolio to grow scalable, highly profitable restaurants globally.
Infographic. AmRest business strategy
Since2019thegrouphasbeencontinuingthestrategyofgrowthbasedonfourkeypillars:Operations,Food Service, Franchising and Digital & Delivery. 
Table. Four pillars of AmRest growth
Name of the pillar
Description
OPERATIONS
EveryrestaurantrunbyAmRestshouldprovideanexcellentexperiencetoits guests and at the same time have healthy and profitable business economics.
FOOD SERVICES
Asustainableandagilebeginningtoendfoodserviceoffering,whichdelivers excellenceinmargin,innovation,quality,supportsorganizationgrowthand generatescommercialvalue,servingbothinternalandexternalcustomers, underpinned by the AmRest culture.
FRANCHISING
Withaclearstrategy,properbusinessmodelandmarketknow-how,inadditionto greatbrands,AmRestprovidesattractiveofferstonewpartnersand,asaresult, gives them a sense of stability and security.
DIGITAL & DELIVERY
AmRestisallaboutcustomersandtheexperiencetheyhavewhenenteringits restaurants.Thegoalforthisareaistotransformreallifeexperiencesandmake them consistent with the experiences AmRest customers get in the online world.
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AmRestGroupNon-financialInformationStatementfor2020
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ThetablebelowpresentsAmRest’sgrowthbetween2018and2020.Therestaurantcountincludesself-owned restaurants and franchisees.
Table. Restaurants and coffee houses operated by AmRest Holdings SE
Dec 31, 2018
Dec 31, 2019
Dec 31, 2020
2 138 restaurants
2 336* restaurants
2 337 restaurants
*- Restated (2339 reported in 2019).
Table. Restaurants and coffee houses operated by AmRest Holdings SE in 2020 by brand 
Brand
Restaurant count (2020)
Self-owned restaurants 
Franchise restaurants
Countries where the brand was present in 2020
KFC
895
895
-
PL, CZ, HU, RU, BG, RS, HR, ES, FR, DE, AT, SI
Pizza Hut
463
241
222
PL, CZ, HU, RU, SK, AR, AZ, FR, DE
Starbucks
386
364
22
PL, DE, CZ, SK, HU, RO, BG, RS
La Tagliatella
242
80
162
ES, PT, FR, DE
Burger King
81
81
-
PL, BG, CZ, SK, RO
Blue Frog
75
68
7
CN, ES
KAAB
1
1
-
CN
Sushi Shop
183
123
60
FR, ES, PT, BE, LU, UK, CH, IT, SA, UAE
Bacoa
7
1
6
ES
Virtual brands
4
4
-
PL
Total number of restaurant and coffee houses 
2 337
1858
479
-
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AmRestGroupNon-financialInformationStatementfor2020
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Franchise model 
AmRest as a franchisee
AmResthasbeendevelopingaportfolioofglobalrestaurantbrandsandleadersintheircategories–KFC, PizzaHut,BurgerKingandStarbucks–basedonfranchiseandpartnershipagreements.Thismeansthatin selectedmarketsAmRestholdstherighttomanagesuchrestaurantsbasedonagreementssignedwiththe brand owners: Yum! Brands, Burger King Europe and Starbucks EMEA. 
Long-term,well-arrangedcooperationwithpartnersallowedAmResttodevelopahighlevelofindependence in terms of the management model. 
Table. Description of the cooperation with franchisors
Brand
Description of the cooperation
KFC 
Pizza Hut
AmRestistheoperatorofKFCandPizzaHutbrandsbasedonafranchiseagreement withownerofthebrand-Yum!BrandsInc.(Tobeexact,Yum!RestaurantsEuropeLimited for KFC and Pizza Hut Europe Limited for Pizza Hut.)
Starbucks
StarbucksrestaurantsinPoland,theCzechRepublicandHungaryareopenedbythe companiesofAmRestCoffee(owned82%byAmRestand18%byStarbucks).These companieshavetherightsandlicensestodevelopandmanageStarbucksrestaurantsin therespectivecountries.StarbucksrestaurantsinRomania,Bulgaria,Germany,Slovakia and Serbia are operated by the Group on a franchise basis. 
Burger King
BurgerKingrestaurantsareoperatedonafranchisebasisfollowinganagreement concluded with Burger King Europe GmbH.
AmRest as a franchisor
AmRestaimstobuildthebestofferforthefranchisees,allowingthemtofocusontheiroperations.Currently, thecompanyoffersfranchiseeagreementsforownedbrands:LaTagliatella,Bacoa,BlueFrogandSushi Shop.Moreover,followingagreementswithYum!BrandsInc.AmRestasamaster-franchiseeofPizzaHut brandhastherighttograntthelicensetothethirdpartiestooperatePizzaHutconceptsincountriesof Central and Eastern Europe, Germany and France as well as Russia, Armenia and Azerbaijan. 
Services AmRest provides for the franchisees:
■
Developing: personalized advice in the search and selection of the best premises and locations
■
Building: comprehensive design of the premises including all structural and interior elements
■
HR: advice on the profiles and structure necessary to guarantee excellence in customer service
■
Training:initialandongoingtrainingforthefranchiseeinthemanagementandprofitabilityofthe business.
■
Operations:helpinimplementinginternalproceduresthatfacilitatetheglobalmanagementof restaurants and guarantee their correct operation
■
Marketing:anadvisoryservicefordevelopingthebestadvertisingandpublicrelationsstrategyfor the restaurants. 
Table. Number of AmRest Holdings SE business partners in 2020 by type
Type of partner
2018
2019
2020
Franchisees  
194
353
344
Franchisors  
4
4
4
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AmRestGroupNon-financialInformationStatementfor2020
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MATERIALITY ANALYSIS
In2020AmRestconductedamaterialityanalysis,aprocessthroughwhichthecompanyidentifiedsocial, environmentalandethicalaspectsthatarerelevanttoitscorporateresponsibilitystrategy.Materialityisthe principle of defining the topics that matter most to AmRest business and stakeholders.
AmRestconsideredmaterialityanalysisasanopportunitytoapplyasustainabilitylenstobusinessrisk,trend-spotting and enterprise risk management processes:
■
Prioritizingorganization’sresourcesforthesustainabilityissuesthatmattermosttothebusiness and stakeholders.
■
Identifyingtheareasofinteresttothemostimportantstakeholders,enablingtoreportconcise information that gives a meaningful picture of progress to those that need it.
■
Highlightingareaswherethecompanyneedstomanageandmonitorissuesthatareimportantbut not currently addressed.
Consultations and methodologies included:
■
Issues considered by sustainability standards and frameworks (SASB, GRI)
■
Issues considered by financial analysts on ESG information (DJSI)
■
Media analysis 
■
Peer’ analysis 
■
Regulatory environments (Poland, Czech Republic, France and Spain)
■
Over170onlinesurveysinEnglish,FrenchandSpanishsenttosuppliers,bankrepresentatives, franchisors, franchisees, employees, NGOs
■
Focus Group with the Sustainability Committee and survey to top management
Asaconsequenceofthematerialityanalysisprocess25materialtopicswereidentified.Tablebelowpresents themostrelevantones.ThecompanyaddressesthematerialitytopicsinthisannualNon-financial InformationStatement.MaterialityanalysiswillalsobeusedforthepurposeofSustainabilityStrategy revision to cover the external and internal perspective. 
Table. AmRest materiality topics by category
Category
Topic
Definition
Employee health and safety
Aspectsrelatedtothesafetyandhealthofemployeeswithinthe organization.
Employment matters
Managementofbasicemployeeworkingconditions(remuneration, working time, absenteeism etc.).
Diversity, inclusion and equal remuneration
Setofcommitments,policiesandproceduresimplementedto promotegenderequality,diversityandinclusioninordertoensure equal opportunities and remuneration for all.
Human capital
Talent development
Traininginitiatives,professionalandcareerdevelopmentprograms available for all employees.
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AmRestGroupNon-financialInformationStatementfor2020
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Category
Topic
Definition
Customer orientation
Ensuringanoptimalcustomerexperience,whichhelpsusachieve high customer satisfaction scores and increases customer loyalty.
Customer relationship
Food quality and safety
Setofcommitments,policiesandproceduresensuringcompliance withlegalrequirementsandhealthcontrolsintermsoffoodquality and safety.
Ethics and compliance
Promotionofethicalpracticesbothwithintheorganization,itsvalue chain and the sector.
Corporate governance
Responsiblepracticesofthegoverningbodiesintermsofequality, ethics, accountability and transparency.
Risk management
Identifying,assessingandmanagingthenon-financialrisksofthe organization.
Good governance
Human rights
Respectforhumanrights,monitoringandsupervisingmechanisms to ensure that they are respected (such as whistleblowing channel).
Responsible sourcing
Integrationofsocial,ethical,animalwelfare,andenvironmental performance factors into the process of selecting suppliers.
Business model
Responsible supply chain management
Sustainable purchasing policies, commitments, and guidelines.
Environmental management
Setofpolicies,commitmentsandmanagementsystems implementedinthecompanyinordertominimizetheimpactonthe environment.
Circular economy
Commitments,policiesandproceduresaimedatresponsiblewaste management,promotingofrecycling,eliminatingsingle-use-plastic etc.
Energy and carbon footprint management
Energyefficiencyinitiativesandoperationalsolutionscarriedoutto fight against climate change.
Environment
Food waste
MeasuresandinitiativesimplementedbyAmResttopreventfood wastealongitsvaluechainandincreaseawarenessamongits stakeholders.
AmRestvaluesitsstakeholdersviewontheimportanttopicsaswellasambitiouslystrivestomeettheglobal sustainability standards and local requirements.
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AmRestGroupNon-financialInformationStatementfor2020
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CORPORATE SOCIAL RESPONSIBILITY STRATEGY 
Toeffectivelycarryoutitsactivitiesasaresponsiblecompany,AmResthasbeenimplementingthe ResponsibleBusinessandSustainableDevelopmentStrategyofAmRestfor2015–2020(hereinafter namedalsoCSRStrategy).Bythetimethedocumentwascreated,thecompanywasfocusingontheCEE region,hencethestrategyappliedtobrandsmanagedbyAmRestinPoland,CzechRepublic,Hungary, Croatia,Bulgaria,RomaniaandSerbia.In2018,thecompanydevelopedaglobalCorporateResponsibility Policy that applied to all countries in which AmRest operated. 
Table. Outcomes of the CSR Strategy of AmRest
Pillar
Key area of focus
Outcomes
Our food
■
Food quality and safety
■
Responsible purchasing
■
Transparencyofinformation aboutthenutritionalvalueof products
The company focuses on the highest standards of food safety and quality in the entire chain of supply and on procuring fresh produce from local suppliers whenever and wherever possible (approx. 80% local suppliers budget share). The company offers lighter options and vegetarian or vegan alternatives in the brands’ menus. 
Our people
■
Employer of choice
■
Inclusiveness
■
Trainings and development
AmRest creates a friendly, safe and diversity-conscious workplace (2% employees with disabilities, 3% employees over 50 years old). The company inspires and promotes self-development which is reflected in the internal-promotion rate: 80%. 
Our environment
■
Environmentally-friendly packaging
■
Waste and recycling
■
Environmentally-friendly buildings
AmRest conducts its business with a respect for the environment, always looking for innovations and solutions to make company’s activities more environmentally friendly. The company promotes waste segregation and recycling of waste, e.g. forwarding used oil to biofuel producers. In 2020 the KFC restaurant in Kraków, Poland was recognized as a LEED certified building. Financial resources dedicated to LEED certification of KFC restaurant was 21 930 EUR (cost of certification process).
Our communities
■
Children education projects
■
Employee volunteering
The company develops the passion and drive of its employees to change their environment and local communities for the better. AmRest takes advantage of the scale of opportunity and supports employees in activities that have a positive impact on the communities in which the company operates. Each year AmRest gives back to the local communities by donating +200 000 EUR. 
AmResthasbeenworkingonrevisingitsCSRstrategy,basedontheoutcomesofthematerialityanalysis, current trends and the company’s ambitions. 
The new global document will be published in 2021. 
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AmRestGroupNon-financialInformationStatementfor2020
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RISK MANAGEMENT AT AMREST
AmRestHoldingsSEidentifiesfinancialandnon-financialrisksandmanagestheminitscompaniesandat theGrouplevel.Theriskmanagementsystem,theinternalcontrolsystemandreviewofeffectivenessofsuch systemsweresupervisedbymanagersresponsibleforthefunctions,AmRestTopManagementand ultimately by the Board of Directors of AmRest Holdings SE.  
TheGlobalInternalAuditDepartment(reportingdirectlytotheAuditandControlCommitteeoftheAmRest BoardofDirectors)supportsmanagersresponsibleforthefunctions,AmRestTopManagementandAmRest Board of Directors in risk management by:
■
identifying risks and opportunities and recommending solutions;
■
monitoring,verifyingandreportingtheimplementationstatusofactionplansaddressingidentified risks and opportunities to the AmRest Top Management and the Audit and Control Committee;
■
periodic updating of the AmRest Risk Map; 
AmRestdevelopedamodeltosystematizetheapproachtorisk:identification,evaluationandmitigation.One oftheelementsofthemodelistheRiskMap,whichcontainstherisksarisingfromthespecificnatureof AmRestactivities.Theserisksaregroupedintostrategic,financial,operationalandcompliancerisksandare periodically evaluated by the AmRest Management. 
ThelastupdateoftheRiskMapwasconductedin2019.TheAmRestManagementTeamalongwith representativesofthekeydepartmentsevaluatedthedocumentandincludedadditionalnewrisks,e.g. environmental risks.
TheRiskMapisoneoftheinformationsourcesfortheprocessofcreatingtheannualAuditPlan. AmRest analysestherisksandimprovesitsriskmanagementsystemsandtheinternalcontrolsystemsonanongoing basis. 
CurrentlyComplianceandRiskManagementwithsupportfromtheInternalAuditDepartmentrealizesGlobal RiskManagementprojecttoimprovemanagingrisksatAmRestHoldingSEbyintroducinganewapproach to: identifying, evaluating and managing corporate and local (market-specific) risks.  
Atablebelowpresentstherisksthatmayhaveaconsiderableadverseeffectontheoperatingareasof AmRest,aswellasoncorruptionprevention,environmentalprotection,respectforhumanrightsandothers. 
Table.RisksthatmayhaveaconsiderableadverseeffectonoperatingareasofAmRest,corruption prevention, environment protection, respect for human rights and others.
Risks
Risk that the Company will be negatively perceived by public opinion due to improper care of social / public interests.
Risk that the response of the Company to ecological trends will not be consistent with strategic goals or will harm its competitive advantage (e.g. significantly increase costs). Risk that the insufficient response to trends or its communication will damage the reputation of the Company and decrease its sales.
Risk that the Company and its suppliers fail to meet environmental norms and standards.
Risk related to consumption of foods: risk of an accident, food poisoning or other event that results in customer liability.
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AmRestGroupNon-financialInformationStatementfor2020
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Risks
Risk that regulations, processes, training systems and information flow functioning in the Company will not be adequate to ensure compliance with the regulations regarding environmental protection.
Risk that brand image will be harmed by internal or external events. Risk that brand name will be used by a third party to the detriment of the Company’s reputation.
Risk related to improper implementation and execution of anti-corruption procedures including a lack of protection for "whistle-blowers".
Risk related to losing employees in the key positions.
Risk of breaking the law or other regulations by conducting improper business practices.
Risk of an accident on the job that jeopardizes health and safety, causes property damage, environmental pollution or deterioration of the Company’s reputation or other negative consequences.
Risk of lack of support for ethical rules by the Top Management and non-ethical behaviour of employees.
HavingimplementedtheCodeofBusinessConductandtheCSRStrategy,AmRestprevents,amongothers, the following risks occurring:
■
negativeperceptionoftheCompanybythepublicinconnectionwithunduecarepaidbyAmRestto social/public interests;
■
lackofawarenessandsensitivityofmanagerswithregardtotheethicsandrulesofresponsible business;
■
major negative impact of the Company’s operations on the environment;
■
inadequate response to environmental trends;
■
damage to AmRest’s reputation caused by cooperation with unethical suppliers of low reputation;
■
lackofpublicknowledgeofAmRestinvolvementinimplementationofthegoalsintheareaofethics and responsible business;
■
unethical practices by AmRest and AmRest employees.
The response to COVID-19 pandemic
TheCOVID-19pandemicisthemostimportanteventin2020thathasimpactedalmosteverycontinent.The viruswasontheriseinAsiaattheendof2019andspreadgloballywithinjust afewmonths.,.Thispandemic 
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AmRestGroupNon-financialInformationStatementfor2020
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isnotonlyahealthcrisis.Duetotheeffectsofrestrictions,lockdowns,andoverallanxiety,thepandemic occurs as one of the biggest socio-economic crises of our time.
AtAmRest,thefirstinformationaboutCOVID-19hasbeenreportedinthebeginningof2020andcamefrom China,wheretheGroupoperatesBlueFrogandKABBrestaurants.Atthattime,thegrouphandledthismatter onalocallevel,implementingpropersolutionsthatincludedanewhygieneregimeandthetemporary closureofrestaurants.AsthecoronavirusgraduallyspreadacrossEurope,AmRestidentifieditasaglobal riskandrespondedimmediatelybycreatingtheAmRestCrisisMitigationPlanforCOVID-19basedonthe AmRest Global Crisis Management Procedure. 
Main objectives of Crisis Mitigation Plan for COVID-19:
■
Crisis Core Team activated and actively addressing the issue
■
Appropriate action plans developed and executed
■
Communication protocols established
Aspartoftheplan,theGlobalCrisisTeamwasestablished,consistingof(CoreTeam)ChiefExecutiveOfficer, ChiefOperationsOfficer,ChiefPeopleOfficerandBrandReputationDirector,andofrepresentativesofmain departments at AmRest (Coordination Team). The main responsibilities of the Global Crisis Teams were:
■
activating and leading a crisis management process in the organization
■
appointing local/country crisis leaders
■
constituting crisis task forces and ensuring adequate resources, human and financial
■
gathering information on crisis development and agreeing adequate action plans
■
ensuringcommunicationsflowandapprovingmessagestointernalandexternalstakeholders including AmRest franchisors, media and regulatory bodies
■
updating AmRest’s management bodies: Executive Team and Board of Directors.
Thecompanyfollowedtheplanduringthewholeyear,managingthecrisisbothgloballyandonalocallevel. 
Impact on business 
TheCOVID-19pandemicposedagreatchallengeforthedailybusinessofAmRestin2020.Theimmediate consequenceofthepandemicforAmRestGrouphasbeentemporaryclosureofshoppingmallsanddine-in areas,withtheonlyremainingsaleschannelspermittedbeingfooddeliveryand,insomecountries,take-awayanddrive-thru.Formanyyears,theGrouphasbeeninvestingindeliverychannelandrecentlymadeit oneofthepillarsofgrowth.WhilesomeAmRestrestaurantshavebeentemporarilyclosedduringtheyear,  thecompanywasabletoinstantlychangethebusinessmodeltofocusontake-awayanddeliverychannels, with solid infrastructure and strong leadership,. 
Moreover,inallcountrieswheretheGroupoperates,stricthygieneregime,limitationsandlockdownswere implemented.Followinglegalrequirements,theGroupimplementedaseriesofglobalprocedures, guidelinesandchecklistsformaintainingthehygieneregimeinAmRestrestaurantsbutalsowhiledelivering orderstothecustomers(contact-lessdeliveries).Allglobaldocumentswereadaptedforbrandpurposesand local legislation.
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AmRestGroupNon-financialInformationStatementfor2020
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Table.SelectedhygieneandsafetyroutinesimplementedatAmRestinresponsetoCOVID-19 pandemic
FOOD-RELATED MATTERS
Foodqualityandsafety,responsibleprocurementandsales,aswellastransparentdisclosureofnutrition factsarethekeysprioritiesoftheOurfoodarea-oneoffourpillarsofResponsibleBusinessandSustainable DevelopmentStrategyofAmRest.Thegroup’sobjectiveistodeliverthebestculinaryexperiencetoitsguests while maintaining the highest quality and safety standards across the supply chain. 
AmRest Holdings SE is committed to ensuring food safety and quality. This objective is achieved through:
■
identifying possible risks and mitigating or eliminating them 
■
designing,constructingandmaintainingrestaurants,equipment,smallwares,andconsumablesto standards that allow the company to maintain safety of our products
■
implementing and executing strict hygiene, food safety and quality standards and procedures
■
periodical training sessions on hygiene, quality, and food safety maintenance standards 
■
conductingunannouncedauditsinrestaurantscarriedoutbyinternalandexternal,independent auditors
■
havinghighlyeffective,professionalcleaningagents/disinfectantsaswellasspecificdevicestomake dosingmoreefficient;continualmonitoringofagentconcentrationtoensuremaximum effectiveness
■
implementing system and procedures for the prevention of pest entry and activity
■
having systems designed to track expiration dates and manage inventory rotation
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AmRestGroupNon-financialInformationStatementfor2020
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■
havinganordermanagementsystemthathelpsrestaurantandcoffeehousemanagersoptimizethe quantity of products they order and ensure that the inventory is always fresh
■
havingimplementedsystemsfortemperaturecontrolduringallprocessingchain(fromproducerto a client)  
EachofthebrandsintheAmRestHoldingsSEportfoliohasitsownstrictfoodsafetypoliciesandsystems (includingHACCPSystem)andmakessurethattheyarediligentlyfollowed.Whatismore,AmRestapplies globalfoodsafetyrulessetoutinitsFoodSafetyFundamentals(FSF).TheFSFisaglobaldocument addressedtothedifferentgroupsofpeopleresponsibleforfoodsafetyandqualitycontrolacrossthe organizationforPizzaHut,KFC,BurgerKing,Starbucks,andSushiShop.Itisnotdirectlyapplicableat restaurant-level.Instead,itprovidesafoundationonwhichfoodsafetystandardsforeachbrandandcountry arebased.TheFSFisalsothereferencepointforevaluatingfoodsafetyinnewmarketswhereAmRestenters. Eachmarketandbrandisdifferent,yet-regardlessoflocallaws,individualstandardsandprocedures–they must all meet a certain food safety level required by AmRest. 
Audits System 
Complianceauditsarebeingconductedforeverybrandandmarket.AmRest’srestaurantsandcoffeehouses aremeticulouslyinspectedforhygieneandfoodsafety.Individualinspectionstandardsandschedulesare appliedacrossthedifferentbrandstoaccountfortheirspecificneeds.Duringanauditallrequiredstandards relatedtofoodsafety,qualityandhygienearechecked.Inspectionresultsareuploadedtoanonlinesystem and analyzed. If the outcome is not satisfactory, a corrective plan is put in place. 
Auditsareunannounced.AuditsinAmRest’sfranchisedbrands(KFC,PizzaHut,BurgerKing,Starbucks)are conductedgloballybyanexternalcompanythatistrainedandcontrolledbythefranchisors.InAmRest’s proprietarybrands(SushiShop,BlueFrog,KABB,LaTagliatelle,Bacoa)auditsareconductedbyexternal companiestrainedandcontrolledbyAmRestandhalfofauditsinChinamarketisconductedbyinternal auditors.     
Despitethepandemic,AmRestputintheefforttoconductasmanyauditsaspossible.Toensurethehighest levelofsafetyforitsemployeesandproductsAmRestconductedonlineauditsforsomemarketsandbrands duetolocalrestrictions.Thefullnumberofauditsconductedinrestaurantsandamongsuppliersin 2020 was 4993. The results achieved are at a very high level. 
Supply chain management
AmRest'sglobalpresenceposesagreatlogisticalchallenge.Thegrouphasbeenworkingwitharangeof supplierswhodeliverthebestfoodqualityandsafety,asattestedbyappropriatecertificates.Thereliability, credibility,andprofessionalismofAmRestbusinesspartners’makeitpossibletoservefreshproductsatmore than 2 000 restaurants all over the globe every day. 
AmRestvalueswell-establishedcooperationwithlocalsuppliers.Thecompanystillcooperateswiththe suppliersfromtheopeningofthefirstPizzaHutrestaurantinWroclawin1993.Directpurchasesfromlocal suppliers(whichareover80%ofsuppliersfortheCentralEuropedivision)arecarriedoutthroughthe company - SCM, which is responsible for all processes in the purchasing procedure.
AspartoftheagreementeachsuppliercooperatingwithSCMsignstheAmRestCodeofConduct,which addressesthesocialandenvironmentalmatterssuchaschildlabor,discrimination,healthandsafety, protectionoftheenvironment.Asof31Dec2020over80%ofsuppliersinCEEregionweresignatoriesof AmRestCodeofConduct.Otherregionsaremostlycoveredbyfranchisorsrequirements,e.g.KFCin Western Europe. 
AmRestauditsitskeysupplierstochecktheircompliancewithqualitystandardsandgoodfarmmanagement practices.
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AmRestGroupNon-financialInformationStatementfor2020
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Table. Selection of supplier audit processes for Pizza Hut and KFC brands conducted at AmRest
Name of the process
Description
Food Safety Audit (FSA)
FoodSafetyAudits(FSA)areperformedinfoodmanufacturingfacilitiesannuallyoratafrequency determinedbyYum!Brands.Theauditcoversspecificfoodsafety,sanitationandfoodsafety culture requirements, as well as those related to food fraud.
Quality Systems Audit (QSA)
QualitySystemsAudits(QSA)areperformedinallQualityRiskGradeAfoodmanufacturing facilitiesannuallyoratafrequencydeterminedbyYum!.Theauditfocusesonthedocumentation, implementation,andeffectivenessofasupplier’squalitysystems.ItismandatoryforYum! products to be running during the QSA.
Warehouse Audit (WA)
WarehouseAudits(WA)areperformedinallfacilitiesthatstoreanddistributeYum!products,or thosethatactasacross-docklocationforYum!,annuallyoratafrequencydeterminedbyYum! Theauditfocusesonthedocumentation,implementation,andeffectivenessofadistributors warehouseandproductmanagementsystems.Allcross-docksmustbeaudited,suppliersand distributor’s must communicate all cross-docks to Franchise QA.
Transportation Audit (TA)
TransportationAudit(TA)areperformedinallfacilitiesthatdeliverYum!productsdirectlyto restaurantsincludingbothmanufacturersanddistributors.Theseareconductedannuallyorata frequencydeterminedbyYum!Theauditfocusesonthecontrolandeffectivenessofadistributors or a supplier’s transportation and product management systems.
Packaging Audit (PA)
PackagingAuditsareperformedinfoodcontactpackagingmanufacturingfacilitiesannuallyorat afrequencydeterminedbyYum!Brands.Theauditfocusesonspecificpackagingmanufacturing requirements, as well as HACCP, food safety and hygiene.
Animal Welfare Audit KFC
Allsuppliersresponsibleforabattoiroperationsaresubjecttoananimalwelfareauditevery15 months.SuppliersareexpectedtohumanelyhandleanimalsandAmRestmonitorstheir performance.Thescopeofthisauditfocusesonthemanagementoffarms,feeding,responsible antibiotic usage, animal collection, transport and slaughter.
Yum! GAP Audit
AllproducefarmsarerequiredtohaveGlobalGapCertification.Wherethisisnotpossible,the farmcantaketheYum!GAPAuditwhichfollowsthesamescopeasGlobalGAPandincludeswater management, pest management, traceability, ‘add-ons’ usage and personnel GMPs.
In 2020 AmRest cooperated with 13 493suppliers. 
Total expenditure for local AmRest’s suppliers was 79%.
The table below presents the number of AmRest business partners between 2018 and 2020. 
Table. Number of AmRest Holdings SE suppliers in 2020 by type
2018
2019
2020
Suppliers 
13 846
16 836
13 493 
(incl. food suppliers):
1 211
1 312
1 253
AmRestHoldingsSEcarriesoutregularfoodqualitytestsandsupplieraudits.Thescopeandrulesofsupplier auditsaresetoutintheSupplierApprovalProcess,whilefoodqualitychecksaregovernedbytheBrand ProtectionMonitoringSystem(BPMS),whichfocusesmainlyonfoodsafety.TheBPMSisappliedin:Poland, theCzechRepublic,Hungary,Bulgaria,Serbia,CroatiaandAustriawithregardtotheKFC,BurgerKingand 
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AmRestGroupNon-financialInformationStatementfor2020
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PizzaHutbrands.Productqualitytestsarecarriedoutaccordingtostrictstandardsestablishedforeachof thebrandsAmRestoperatesastheyalldifferintermsofthetypeofproductsoffered(andproduceused) andtherisksandthreatstheyfaceasidentifiedbythegroupbasedonitslong-termexperienceinbrand management. 
EachrestaurantoperatedbyAmRestrequiresspecificproductsthatmeetcertainrequirements.Thatiswhy thegroupputsstrongemphasisondirect,day-to-daycontactwithitssuppliersandisinvolvedinperfecting theproduction,storingandtransportoftheproductsitpurchases.AmRest’ssuppliersarereliable, experiencedproducersandmarketleadersinproductquality.AmRest’sSupplyApprovalProcessappliesin allofthemarketswherethegroupoperates.AmRestusesthreeseparateprocurementchannels-each regulated by different policies and procedures: 
■
SCM: direct procurement and some of the investment procurement
■
Indirect Procurement Department
■
Investment Department
SCMpurchasesareregulatedbytheProcurementProcedure.ItappliesintheCEEmarketsandinPizzaHut brandinFranceandPizzaHutandStarbucksinGermany.AmRestcoversonlyaround20%ofpurchases undertheProcurementProcedure,therestisgovernedbyStarbucksEMEA.FollowingagreementswithYum! BrandsInc.purchasesmadeforKFCinFrance,GermanyandSpainaremanagedbyYum!Brands,asAmRest is one of the franchisors operating the brand on those markets. 
TheProcedureindicateswhichdocumentationisneededbeforesigningupanewsupplier;whenandhow oftentenderingshouldtakeplace;andgovernsthetenderapprovalprocess.Thisisanauditrequirement applicablewithindifferentproductgroups.SCMpurchasesarealsogovernedbytheSupplierApproval Process, which applies globally, except for the Chinese and Spanish markets.
InSpain,thepurchasesaregovernedbyPurchasingManual:PurchasingProceduresandtheApproval of Raw Materials and Suppliers, a specific procedure created by the Spanish Purchasing Department. 
This process includes different steps:
■
Product selection process
■
Homologation process of Product(s) and Supplier(s)
oProduct evaluation and acceptance process
oSupplier and Product acceptance process
■
Continuous Evaluation Process
■
Criteria for Product Classification according to Risk
■
Product incident process
■
Process of Registration of Offers and/or Price Fluctuations
This process is supported also by specific documentation to capture the data:
■
Product request document
■
Supplier’s initial questionnaire
■
Supplier’s assessment/evaluation document (facility audit)
■
Price variation document
■
Control document (continuous evaluation, product classification)
■
Registration of offers
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AmRestGroupNon-financialInformationStatementfor2020
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TheIndirectProcurementDepartmentmakespurchasesbasedonAmRest’sGlobalProcurement Procedureapplicableacrossthewholegroup.TheCostManagementProceduregovernstheexpenses incurred within the entire group by the Investment Department.
Table. AmRest Holdings SE procurement budget
Supplier category
Budget share
Local suppliers 
79%
Foreign suppliers 
21%
In2020100%ofthesuppliersprovidingfreshfruitandvegetablestoAmRest’srestaurantsintheCentral EuropeanDivisionreceivedtheGlobalGAPcertification.GlobalGAPisafarmmanagementpractice assessmentschemethathelpsmeetthehigheststandardsofsafetyandqualityinfoodproductionfromfield to table. Global GAP focuses on field practices, fertilization, plant protection and irrigation. 
AmRestcollaborateswithfoodsuppliersthatusegoodenvironmentalpracticesinfarmingandanimal husbandry.Thesepracticeshelptoprotectbiodiversity,preventsoildegradationandconservewater resources.Withbiodiversityinmind,largerfarmersarerequiredtoremoveaportionoftheirlandfrom production.
In2020AmRestforthefirsttimeissuedtheForestssurveybyCarbon DisclosureProject(CDP),anindependentbodyspecializinginthe disclosureprocessoncarbonandclimateriskmanagement.The questionnaireinvolveddisclosingdataonasupplychainanduseofraw productssuchassoy,coffee,palmoil,rubber,timberetc.Thecompany mappedthetopicinPoland,CzechRepublicandHungary.Asafirst-time responder AmRest was not scored. 
Customer relations 
Customerrelationsarecrucialforacompany'sdevelopment.Ensuringthequalityandsafetyofthefood AmRestofferstocustomersthroughitsrestaurantsisoneofthecompany’skeyresponsibilities.AmRest prioritizesthehighestsafetyandqualitystandardsalongthewholesupplychainandobtainingfreshproduce from reliable suppliers. 
AtAmRest,customerrelationsarebuiltontrustinthebrandsandproducts,drawingonloyaltyandconstantly improvingcustomersatisfaction.TheGroupprotectsthehealthandsafetyofitscustomersbyabidingby appropriate procedures. 
CustomerfeedbackplaysanextremelyimportantroleinhowAmRestapproachestheservicesitprovides worldwide.Theguestfeedbackprocessandguestsatisfactionsurveyprogramdeliverthousandsofvaluable insightseverydaywhichallowAmRestmanagerstotakeallthenecessarystepstomaketheservice experience even better.
Customers who are willing to share with their opinion or idea with AmRest’s may offer their feedback via:
■
phone,
■
e-mails,
■
letters,
■
online contact forms,
■
customer satisfaction surveys,
■
3rd party delivery service provider system,
■
social media pages,
■
 ordirectlytothestaffoftherestaurant(whomayaskthecustomertofilethecomplaintinwriting).
Image
53
AmRestGroupNon-financialInformationStatementfor2020
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FollowingtheirvisittoanAmRestrestaurant,customersareinvitedtotakepartinanonlineCustomer SatisfactionSurvey(thefrequencyisdeterminedatPOSlevel).Everyoperationalleader(restaurant/coffee housemanager)maypersonallyaccessthesurveyresults.Basedonthecustomerfeedbackreports,the managementteamsetsweeklyprioritiestoincreasecustomersatisfactionattherestaurant,regional,district and market level.  
In2020AmRest’srestaurantsandcoffeehouseshandledapprox.196 328000transactions.Thetotal numberofcomplaintsreceivedin2020was226041Themaximumaverageresponsetimeis62.5hours.The complaints-handlingprocessesaregovernedbyseparatepoliciesfordifferentmarketsandarecomplying withlocallegislation.EachcomplaintisevaluatedbythesubjectmatterexpertandadedicatedCustomer Carerepresentative.Basedonthecontentofthecomplaintitreceivedanappropriategridtier,which determinesthenecessarypathtofollowandthemaximumtimeallowedtofindaresolution.Thisiscarefully monitored and  complaints are resolved by the Restaurant Management Team.
Table. Overall consumer satisfaction in 2020 by brand 
Brand
Score*
Bacoa
88
Blue Frog
92
Burger King
70
KFC
80
La Tagliatella
77
Pizza Hut
72
Starbucks
82
Sushi Shop
85
*-Thepercentageofcustomerswhogavethebrandthehighestratingwhenquestionedabouttheiroverallsatisfaction(maximum score = 100% responses offering the highest overall satisfaction rating).
Table. Number of customer complaints made in 2020 by brand (without the data from China)
Brand
No. of complaints 
Bacoa
241
Blue Frog
201
Burger King
4 522
KFC
107 221
La Tagliatella
4 184
Pizza Hut
30 438
Starbucks
14 775
Sushi Shop
64 459
CustomersatisfactionresultsaredistributedtoallofAmRest’sRestaurantManagerseveryday.Additionally, oncepermonth,eachbrandrepresentativeofTopManagement(BrandPresidents)communicatesthenext steps to follow in terms of customer satisfaction.
Nutritional value of the offer
Ensuringthetransparentinformationofthenutritionalvalueofmealsservedattherestaurantsisvitally importantforAmRest.Thecareforcustomers’healthandaddressingtheirspecificdietaryneedshas impactedthefoodindustrysignificantlyinthelastfewyears.ThatiswhyAmRestbrandshaverecently introduced vegetarian, vegan and generally lighter option for customers in their menus. 
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AmRestGroupNon-financialInformationStatementfor2020
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In2020,AmRestworkedonaglobaldocumentregulatingthecompany’sapproachtothenutritionalvalueof ourfoodoffer.Previously,thetopicwasgovernedbyeachbrands’standards.Thepolicy’sfocusison simplifyingingredientsbyremovingartificialflavorsandcolors,addedpreservatives,andreducingsodium and sugar levels.  This policy will be implemented in 2021. 
Table. Summary of main documents at AmRest in terms of food-related matters
Name of the document
Main objectives
Food Safety Fundamentals (FSF)
Thedocumentprovidesafoundationonwhichfoodsafety standardsforeachbrandandcountryarebased.TheFSFisalso thereferencepointforevaluatingfoodsafetyinnewmarkets whereAmRestenters.Eachmarketandbrandisdifferent,yet- regardlessoflocallaws,individualstandardsandprocedures– they must all meet the food safety level required by AmRest.
Brand Protection Monitoring System
RestrictivestandardsforeachbrandmanagedbyAmRestinterms of food quality. 
Code of Conduct
Theaimofthisdocumentistodescribebehaviorsthatare acceptableandnotacceptableatAmRest.Itappliestothe relationswithcustomersandcoworkers,aswellasbusiness partners,media,localauthoritiesandcommunitieswhereAmRest operates. 
ENVIRONMENTAL ISSUES
AmRestHoldingsSEiscommittedtomanagingitsenvironmentalimpactinathoughtfulandresponsible manneracrossallitsoperations.AmRestwantstogrowhandinhandwithacoherent,organization-wide understandingofthesignificanceofenvironmentalprotection.Thisunderstandingmustbeconsistentacross all countries and regions in which the company operates, regardless of any cultural differences. 
The main environmental impacts of AmRest Holdings SE are:
■
Climate change 
■
Circular economy
■
Animal welfare
■
Responsible sourcing
Climate change
AmRestconstantlylooksforwaystoreduceitsenvironmentalimpactandembrace opportunitiestospeeduppositivechange.Thisapplies,forexample,totransportandsupplychain management,preventingfoodwaste,andreducingCO2andgreenhousegasemissionsbycuttingdownon energy and fuel consumption.  
Environmentally-friendly solutions in AmRest restaurants  
In2020AmRestrestaurantsandcoffeehouseswereworkingtominimizetheenvironmentalimpactoftheir operationsinaccordancewitheachbrand'sprocedures.Inaddition,AmRest’sGlobalDesignDepartmentis workingonadocumentthatwillcentralizethebrands’environmentally-friendlysolutions thatareeither alreadyimplementedorwillbeinthefuture.Theoutcomesofthisprojectarepresentedbelow.TheGroup isconstantlyseekingfornewopportunitiesandcommitstoimplementenvironmentally-friendlysolutionsto minimize the impact on environment.
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AmRestGroupNon-financialInformationStatementfor2020
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Table. Selected initiative and ideas of sustainable design solutions. 
Explanation of the abbreviations: PH – Pizza Hut, BK – Burger King, SSG – Sushi Shop Group, SBX – Starbucks, TAG – La Tagliatella.
Description
Objective
KFC
PH
BK
SBX
SSG
TAG
REAL ESTATE
Automobile parking sustainable design strategy
Toreducepollutionandlanddevelopmentimpactsfrom automobile use. 
√
√
√
Maintain maximum of the primary structural elements of existing building
Toreducetheenvironmentalimpactonnewland excavation,decreasedemolitionwaste,andsaveenergy onmaterialsthataremanufacturedandtransportedfor new building construction.
√
√
√
√
√
√
CIVIL DRAWINGS
Parking spots for fuel-efficient vehicles
Toreducepollutionandlanddevelopmentimpactsfrom automobile use.
√
Heat island reduction in site plan design
Toreduceheatislandstominimizeimpacton microclimates and human and wildlife habitats.
√
√
Native plant selection
Toreduceirrigationwaterconsumptionbyplanting native species.
√
√
√
ARCHITECTURAL DRAWINGS
Recycling areas at BOH provided inside and outside the restaurant.BOH - a internal term for the kitchen area in AmRest restaurant.
Tofacilitatethereductionofwastegeneratedbybuilding occupantsthatishauledto-anddisposedof-inlandfills, by allocating space for recycling.
√
√
√
√
√
Provide bike racks
Reducecarbondioxideemissionfrompersonalvehicles and promote healthy active lifestyles.
√
Local building materials selection
Toincreasedemandforbuildingmaterialsandproducts thatareextractedandmanufacturedwithintheregion, therebysupportingtheuseofindigenousresourcesand reducingtheenvironmentalimpactsresultingfrom transportation.
√
√
Furniture and wall cladding from legitimated sources
Toencourageenvironmentallyresponsibleforest management.
√
√
√
√
√
MECHANICAL, ELECTRICAL, & PLUMBING DRAWINGS (MEP)
Optimized kitchen hood selection
Optimizingexhausthoodselectionrequirestheright balancebetweencomfort,energyconsumptionandcost of HVAC system.
√
√
√
√
HVAC efficiency and economizers
Reducetheenergyloadanduseassociatedwiththe HVAC system.
Approx.costsofthesolutioninPolandin2020was 171 000 EUR for KFC brand.  
√
√
√
√
√
√
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AmRestGroupNon-financialInformationStatementfor2020
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Description
Objective
KFC
PH
BK
SBX
SSG
TAG
Green certification of kitchen technology
Improve energy efficiency of kitchen equipment.
√
√
√
√
√
√
Thermal transmittance coefficient of building envelope
Maximizetheenergyperformanceofthebuilding envelopebyselectingenergy-efficienttransparentand non-transparentwindowsand/ordesigningpermanent shading devices on exterior walls.
√
√
√
√
√
√
Walk-in units (cooling&freezing chambers) design
Optimizingthewalk-inunitsdesign,choosingsufficient chamberscargospaceandhighefficiencyrefrigerators in order to reduce energy consumption and cost.
√
√
√
√
√
Use ozone-friendly non-CFC and non-HCFC refrigerants
Reducestratosphericozonedepletionminimizingdirect contributions to global climate change.
√
√
√
√
√
√
Energy harvesting from waste heat
Reduceenergyconsumptionassociatedwithdomestic hot water systems.
√
√
√
Thermal control
Providecomfortableindoortemperaturelevelsto promoteemployeeproductivity,customersatisfaction and optimized HVAC energy usage at the same time.
√
√
√
√
√
√
Electricity consumption monitoring system
Reduce whole restaurant energy consumption.
√
√
√
√
√
Interior lighting
Reduceenergyconsumptionbyusingenergyefficient interiorlightingandimprovelightingexperience, comfortandsafetyforourcustomersandrestaurant staff.
√
√
√
√
√
√
Exterior lighting
Reduceenergyconsumptionbyusingenergyefficient exteriorlightingandimprovelightingexperience, comfortandsafetyforourcustomersandrestaurant staff, and restaurant external visibility.
√
√
√
√
√
√
Lighting control
Toprovideahighleveloflightingcontrolsystemfor individualworkstationstopromotetheproductivity, comfort,energysavingsandwellbeingofbuilding occupants.
√
√
√
√
√
Minimization of water usage
Minimizetheuseofpotablewaterrequiredforplumbing fixtures.
√
√
√
√
√
Moreover,AmRestmanagestheenvironmentalimpactsalsoinitsoffices,implementinge.g.waste segregation, minimizing plastic usage, promoting recycling of materials. 
Energy
In 2020 AmRest Holdings SE used 1 088 268GJ of electricity. 
Table. AmRest Holdings electricity consumption in 2020 by country (GJ) 
Country
2018
2019
2020
Austria
400
1 043
1 244
Belgium
-
1 463
702
Bulgaria
6 443
8 433
9 769
China
38 743
47 072
44 534
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AmRestGroupNon-financialInformationStatementfor2020
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Country
2018
2019
2020
Croatia 
10 481
6 658
5 823
Czech Republic
106 074
124 261
116 789
France
121 815
123 072
107 452
Germany
80 280
74 358
55 278
Hungary
69 012
75 530
84 357
Italy
-
293
254
Luxembourg
-
585
692
Poland 
379 006
384 030
341 271
Portugal
-
2 952
1 730
Romania
8 675
10 433
23 156
Russia 
204 816
190 633
164 879
Serbia 
11 460
8 606
8 039
Slovakia 
1 332
3 556
4 673
Slovenia 
957
864
659
Spain 
179 553
234 384
113 833
Switzerland
-
1 756
1 836
United Kingdom
-
1 463
1 297
TOTAL
1 219 047
1 301 445*
1 088 268
*- restated 1 301 591 reported in 2019.
Other energy-related initiatives in Spain: 
■
21 restaurants in Spain have solar panels installed. The tools are used for heating water. 
■
GesinneProject:ElectricalSavings.TheprojectisaimedatreducingCO2emissionsfromelectricity consumption.Phase1startedinQ42020.Estimationsshowaround7,78%ofsavedelectricityonthe 6 restaurants with this solution. Total costs of the project for Spain in 2020 was EUR 74 151. 
Fuel
In 2020 AmRest collected data of fuel consumption applying to business cars.
Table. Fuel consumption of AmRest car fleet in 2020 (liter).
In China and Slovenia AmRest does not provide company cars. Bulgaria, Serbia, Portugal – no data available.
Country
DIESEL
PETROL
Austria
3 438
-
Belgium
-
48 921
Croatia
3 300
-
Czech Republic
75 981
2 711
France
81 196
175 690
Germany
59 486
5 401
Hungary
71 965
341 311
Italy
-
814
Luxembourg
-
6 605
Poland 
313 945
46 999
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AmRestGroupNon-financialInformationStatementfor2020
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Country
DIESEL
PETROL
Portugal
-
-
Romania
14 218
6 868
Russia 
9 306
76 792
Slovakia 
7 857
-
Spain 
9 672
7 178
Switzerland
-
7 273
United Kingdom
-
343
TOTAL
650 363
726 907
Carbon footprint
ClimatechangeiscurrentlyoneofAmRest’smainpointsofinterestintermsofenvironmentalimpacts.While thecompanyhasn’tyetcommunicatedcommitmentsinthisarea,ithasbeencontinuouslyworkingon reducinggreenhousegasemissions,especiallybyaimingtooptimizeenergyconsumptionbyreducing electricity consumption. The company plans to publish carbon footprint reduction goals by the end of 2021. 
Since2018thecompanyhasbeendisclosinginformationaboutitscarbonfootprint,improvingthedata collectionandwideningthescopeeachyear.Startingfrom2020thecompanywillbedisclosingtheScope3 calculation.AmRestisworkingontheprocedurestoconductthecalculationforitswholebusiness.Thisyear Scope3isbeingcalculatedforsixcountries,representingaround80%ofAmRest’sbusiness.TheGroupis committedtoimprovingthedatacollectioninthe yearsahead.DuetothecomplexityoftheAmRest business,thecompanyalsodecidedtobasepartofthedataforScope3asof30November2020(purchased goods, capital goods, transport, delivery). 
Table. Factors taken into account in the calculation of AmRest carbon footprint for 2020
Scope
Topic
company facilities 
Scope 1
fuel consumption
purchased gas
purchased electricity
Scope 2
purchased heating
purchased goods 
capital goods 
transport 
waste
Upstream
business travels
Scope 3
franchisees 
Downstream
delivery (outsourced)
Table. Scope 1, Scope 2 and Scope 3 for AmRest Holdings [tCO2e]
Carbon footprint
[tCO2e]
Scope 1
531 551
Scope 2
129 119
Scope 3
868 450
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AmRestGroupNon-financialInformationStatementfor2020
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In2020AmRestforthefirsttimeissuedtheClimateChangesurveybyCarbon DisclosureProject(CDP),anindependentbodyspecializedindisclosureprocess oncarbonandclimateriskmanagement.Thequestionnaireinvolveddisclosing dataonrisksandopportunities,targetsandperformance,emissionsdataand methodology.
Circular economy
TocontributetotheCircularEconomy,AmReststrivestomakeeveryefforttominimizewasteproducedin everyaspectofitsoperations.Specifically,AmResthasbeenaimingtoreducefoodwastebyimplementing foodwastepreventionprogramsglobally.AmRestisalsodevelopingsolutionstominimizeitsuseofplastic and is seeking to maximize the reuse of materials.
In2020aglobalsurveywasconductedatAmResttoresearchthewastemanagementapproachesacross markets. 
Thevarietyofwastemanagementsolutionsimplementedanddifferentlegalrequirementsacrossindividual countriesandstoresarethemainreasonswhyAmResthasnotadoptedaglobalsystemofwaste management and monitoring yet. 
Itisalsodifficulttoobtaindataonwasteproductionforrestaurantsandcoffeehouseslocatedinshopping mallswherewastecollectionandtransferistheresponsibilityofbuildingmanagers.AmResthas, nevertheless,definedguidelinesthatmustbefollowedbyrestaurantmanagersandemployees,and continually works to raise their awareness on responsible waste management. 
Therestaurantsofindividualbrandsreceivedetailedinstructionsonhowtomanagewasteandreporttheir compliance with relevant good practices. 
AmRestdiscloseswastemanagementinformationinaccordancewiththerelevantprovisionsexistingineach countrywhereitoperates.AtAmRest,themainhazardouswasteisusedoil,thatthecompanyreusesby forwarding it to biofuel producers. Other hazardous waste is subject to local laws.
Table. Total amount of waste generated by type [tonnes]
Country
Type of waste
Mixed waste
Paper and cardboard
Plastic
Glass
Organic
Used oil
Austria
8.16
15.36100% recycled
1.1499% recycled
-
19.52
4.50100% reused
Belgium
31.08
45.880% recycled
-
-
71.04
-
Bulgaria
274.01
-
-
-
19.56
17.89100% reused
China
219.00
-
-
-
120.45
145.04100% reused
Croatia 
200.00
-
-
-
126.00
17.00100% reused
Czech Republic
1 135.16
367.0095% recycled
71.9888% recycled
2.12100% recycled
506.66
232.70100% reused
France
2 518.87
1 467.8630% recycled
-
-
1 000.63
362.64100% reused
Germany
1 747.54
823.47100% recycled
248.590% recycled
-
103.64
90.00100% reused
Hungary
5 996.08
389.10100% recycled
0.68100% recycled
-
13.52
111.86100% reused
Italy
4.82
7.000% recycled
-
-
11.02
-
Luxembourg
22.89
33.770% recycled
-
-
52.33
-
Poland 
7 428.33
594.22100% recycled
77.04100% recycled
0.95100% recycled
446.88
456.41100% reused
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AmRestGroupNon-financialInformationStatementfor2020
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Country
Type of waste
Portugal
-
10.340% recycled
1.94 0% recycled
60.9589% recycled
-
-
Romania
102.48
11.61100% recycled
1.45100% recycled
0.14100% recycled
1.52
4.27100% reused
Russia 
1 077.58
143.43100% recycled
-
-
1 154.25
811.93100% reused
Serbia 
240.00
47.03100% recycled
3.84100% recycled
-
-
25.60100% reused
Slovakia
-
-
-
-
-
6.07100% reused
Slovenia 
26.50
4.60100% recycled
2.80100% recycled
-
3.80
3.00100% reused
Spain 
218.70
1 185.362% recycled
156.123% recycled
1 462.7889% recycled
638.76
232.00100% reused
Switzerland
66.12
97.61100% recycled
-
-
151.15
-
United Kingdom
40.50
59.79100% recycled
-
-
92.59
-
TOTAL
21 357.82
5 303.4357% recycled
565.5827% recycled
1 526.9489% recycled
4 533.32
2 520.91100% reused
Thecompanystrivestomakeeveryefforttoensurethatlesswasteisproducedineveryaspectofits operations,puttingemphasisonreducingorganicwaste.Aspartoftheseefforts,AmRestcontinuesto implementeffectiveprogramsandinitiativesaimedatreducingfoodwaste.AmRestplanstosetwaste reductiontargetsforspecificstreamsandtakeothermeasuresonwasteprevention.Thecompanyisalso developing solutions to minimize its use of plastic and is seeking to maximize the reuse of materials.
Single-use plastic reduction
FollowingtheDirectiveoftheEuropeanParliamentonthereductionoftheimpactofcertainplasticproducts ontheenvironment,AmRestisworkingonthereductionofplasticproductsusedinitsrestaurantsandcoffee houses.Underthenewlegislation,single-useplasticplates,cutlery,andstrawswillbebannedin2021inall of AmRest’s European markets. 
Over the course of 2020, AmRest brands launched many initiatives to eliminate single-use plastic.
KFCimplementedmultiplesolutionsacrossthemarkets.Thisincludedthebrand’sswitchtorecyclablepaper bags,whichallowedittoeliminatethousandsofkilogramsofplasticannually.Moreover,KFCburgersand Twisterwrapsarenowmadeexclusivelyfrompaper,withnoadditionalpolyethylenelayer.Thebrandhas also changed the material used for shake cups to recyclable plastic.  
Starbucksnotonlycommittedtoswitchingtopaperstraws,butalsointroducedthenewstraw-lesslidsto helpreducethenumberofstrawsused.Straw-lesslidshavebecomethenewstandardfornearlyall StarbuckscolddrinksacrosstheEMEAregion.Starbucks'newstraw-lesslidsfeatureaslightlyraisedsipping holethateliminatestheneedforastraw,resultinginanoverallreductionofplasticwaste.Thelidismadeof plasticwhichcanberecycled.Starbucksisalsocommittedtoeliminatingplasticcutleryin2021.Additionally, StarbuckswillcontinuetoreduceitsuseofpapercupsthroughitspromotionoftheBringYourOwnTumbler programunderwhichguestswhovisitthecoffeehouseswiththeirowncupsanddonotusepapercups receive a discount for any beverage they choose. 
In2020BurgerKingwasworkingonnewsolutionsaimedatreducingplasticusage, includingnewicecream cupsthatwillnotrequire aplasticlid.Thebrandalsoconductedacommunicationscampaignencouraging customersnottousestrawsandplasticlidswiththeirbeverages.BurgerKing hasalsocommittedto promoting packaging made of biodegradable materials. 
SushiShopiscommittedtominimizingthesingle-plasticusedinitsrestaurants.In2020thebrandremoved plasticcutleryandswitchedtobiobasedPLAmaterials.Moreover,SushiShopswitchedtopapercups, eliminatingtheplasticones.Currently,thebrandisworkingonreplacingplasticcupsforsoysaucewitha molded fiber solution.
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AmRestGroupNon-financialInformationStatementfor2020
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PizzaHutimplementedseveralsolutionsaimedatreducingoreliminatingplasticusedintherestaurants. Forexample,in2020thebrandswitchedtowoodencutlery.Also,PizzaHutwillbereplacingplasticbagswith paperones.TheworkisstillinprogresswithregardstotheplasticsupportinpizzaboxesandAmRestwill seek a solution in cooperation with YUM, the owner of the Pizza Hut brand.  
Water
WaterconsumptionatAmRestismainlyrelatedtomealpreparationandisanareathatisconstantly monitored.Thecompanystrivestomakeeveryefforttoachievemoreefficientconsumption.Inmostnewly builtrestaurantsandcoffeehousesmanagedbyAmRest(KFC,BurgerKing,PizzaHutandStarbucksbrands) onlywashbasinswithwater-savingaeratorsandproximitysensorsareusedinthebathrooms.IntheKFC LEED in Kraków the water for plants inside and outside the building comes from collected rainwater. 
In 2020 AmRest Holdings SE used2 047 228 m³ of water. 
Table. Water withdrawal in 2020 by country [m³] 
Country
2018
2019
2020
Austria
558
1 613
              1 349 
Belgium
-
1 358
              5 450 
Bulgaria
27 409
32 816
            12 931 
China
155 432
190 505
          166 983 
Croatia 
10 957
11 509
            10 052 
Czech Republic
169 888
186 929
          144 753 
France
835 316
301 367
          323 722 
Germany
-
-
                 128 277 
Hungary
106 854
120 758
          109 068 
Italy
-
8 834
              2 124 
Luxembourg
-
4 684
              2 013 
Poland 
469 779
480 081
          395 105 
Portugal
-
2 147
              9 548 
Romania
44 292
48 752
            39 305 
Russia 
420 000
481 000
          421 000 
Serbia 
12 710
14 692
              9 051 
Slovakia 
2 583
3 757
              4 242 
Slovenia 
1 779
2 897
              2 624 
Spain 
308 133
340 355
235 170
Switzerland
-
4 548
            15 222 
United Kingdom
-
1 968
              9 239 
TOTAL
2 565 690
2 240 570*
2 047 228
*- restated (2 241 181 reported in 2019).
Responsible sourcing
AmRestco-operateswithsupplierswhomeetstrictproductqualitycriteriaandrequirementsconcerning sustainableproduction,animalhusbandry,andcropcultivation.Whereverpossible,AmRestsourcesthe producefromlocalfarmers.Thecompanyusesitsscaletopromotegoodpracticesamongtheirbusiness partners with suppliers as one of the key groups addressed in Environmental Policy of AmRest Holdings. 
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Thecompanysharesconcernsregardingtheethicalandhumanetreatmentofanimals.Asamajorfood company, AmRest strives to use sustainable practices in all business areas, including animal well-being.  
In2020AmRestestablishedtheFoodServicesSustainabilityProjectGroupasabodyresponsiblefor managingsustainabilitytopicsinthesupplychainarea,focusingonthetopicofpoultrywelfareasacrucial matterforAmRest’sbusinessduetothefactthatKFCisthebiggestbrandinAmRest’sportfolio.TheGroup is working on global policies that will govern animal welfare and nutrition matters at AmRest. 
Table.EthicalsourcingpracticesatAmRest.Alltargetspresentedbelowapplytorestaurantsoperated by AmRest.
Topic
Company’s approach
Target
Fiber-based packaging 
AmRestinPolandissourcing100%offiber-basedpackagingfrom certified/or recycled sources. 
2020*
Soy
AnysoyusedinPizzaHutAmRestproductsmustbesourced onlyfromRTRSapprovedsuppliersoranequivalentbodyinthe market of operations.
2021
Palm oil
UsingonlyRSPOcertifiedpalmoilasaningredientforproducts in AmRest restaurants.
2021**
Animal welfare
AmRestfollowstheguidelinessetbyitsfranchisorsregarding animalwell-beinginaglobalsupplychainandconductsregular auditsofitssuppliers.Thecompanyisworkingonimplementing ananimalwelfarepolicyforownbrandsexceedingthose required in line with relevant legislation. 
2022
Cage free eggs
AmRestisworkingonaroadmapforatransitionofalleggsandegg products used in its restaurant and coffee houses to cage free. 
2025***
*- Burger King brand set its target for 2025.
**- Excluding AmRest brands in Russia and China. 
***-ExcludingBurgerKingandAmRestbrandsinRussiaandChina.Theproperactionsaretakentosettargetsinlinewith franchisors’ requirements. 
Table. Main raw material consumption in 2020. 
Data collected from six biggest markets as part of the Scope 3 calculation.
Name of the raw material
Amount used [t]
Meat
           40 013 
Flour
           10 564 
Dairy
           10 643 
Cold drinks
           16 517 
Vegetables & fruits
              6 051 
The following two areas potentially have the strongest effects on biodiversity in AmRest's value chain: 
■
practicesusedbysuppliersofAmRest'skeyproducts,inparticulartheirapproachtovegetableand crop farming as well as animal husbandry.  
■
responsiblemanagementofwastegeneratedbyrestaurantsandcoffeehouses,inparticularwaste that might contaminate water and soil (e.g. used frying oil). 
WithregardstoprovisionsandguaranteesforenvironmentalrisksAmResthasnospecificenvironmental insurance.
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EMPLOYEE ISSUES
AmRest’ssuccessisbasedonpeople–bothkindandprofessional, ourpeoplecreateapositiveatmosphere inthecompany’srestaurantseveryday.TheGrouphasestablishedauniqueculturewhereallemployees share the same values, despite being citizens of different countries. 
AmRest’sambitionistocreateaworkplacewherepeoplecanspreadtheirwings,makeanimpactanddo what they love in a friendly and inspiring environment. 
Asof31December2020AmRestHoldingsSEemployedworkersacross22countries.AmRestoperatesin25 markets,butreportsemploymentin22countries,andin21countriesithasitsownrestaurants(inwhich staffisemployedbycompany)andtheUSA,whereitdoesnothaverestaurants,buthasanemployee.Four ofAmRest’smarketsaremarketsinwhichfranchiserestaurantsoperate,sothestaffisnotemployeddirectly by the company.
DuetotheCOVID-19pandemic,overthecourseof2020,theGroupappliedforsupportprogramsofferedby country’sgovernments,intheformofreimbursementoflaborcosts,andintroducinginternalactions,such asshorteningofworkinghoursortechnicalunemployment.MoredetailsonthetopiccanbefoundinPublic subsidies chapter.
Table. AmRest Holdings SE employees in total and dismissals by gender 
2019
2020
Employee count
51 804
44 780
incl. women
27 495
24 867
incl. men
24 309
19 913
Number of dismissals 
Women
1 137
1 666
Men
1 917
2 217
Table. AmRest Holdings SE employees in total and dismissals by work classification 
Employee count
2019
2020
Employees of restaurants and coffee houses (OPS)
49 393
42 549
Restaurant support team (RST)
2 411
2 231
Number of dismissals
OPS
3 012
3 801
RST
42
82
Table. AmRest Holdings SE employees by gender and type of employment contract 
2019
2020
Permanent contract
34 868
32 597
incl. women
18 986
18 403
incl. men
15 882
14 194
Temporary contract
16 936
12 183
incl. women 
8 509
6 464
incl. men
8 427
5 719
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Table. Average number of permanent contracts in 2020. Data collected on a quarterly basis.
Permanent contract
33 285.5
incl. women 
18 649
incl. men
14 636.5
Table. AmRest Holdings SE employees by gender and type of employment 
Full-time employees
20 410
incl. women
11 611
incl. men
8 799
Part-time employees 
24 370
incl. women
13 256
incl. men
11 114
Table. AmRest Holdings SE employees by age and type of employment contract. 
Permanent contract
32 597
<30
20 816
30-50
10 637
>50
1 144
Temporary contract
24 123
<30
11 037
30-50
903
>50
243
Table. Number of dismissals by age
Number of dismissals
2020
<30
2 867
30-50
928
>50
88
Table. AmRest Holdings SE employees by work classification and type of employment contract 
Permanent contract
32 597
OPS
30 476
RST
2 121
Temporary contract
12 183
OPS
12 073
RST
110
Typesofemploymentvaryacrossindividuallegislations.AmRestcomplieswithlocalcontractsand employment laws, while also taking each employee's individual needs and preferences into consideration. 
Basicemploymentmatters,includinginternalorganizationaswellasemployeeandemployerrightsand responsibilitiesareregulatedbyseparatedocumentsadoptedbyAmRestsubsidiariesinaccordancewiththe relevant national laws. 
TheGroupdoesnothaveastandardized,globalpolicyconcerningtherightsofemployeesleavingthe company nor does it have any common approach to labor disconnection.
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Talent Development
AmRestisarapidlygrowingorganization.Forthisreason,itplacesastrongemphasisontrainingand employeedevelopment.Thecompanyoffersawidearrayofinternalcourses(hardandsoftskills)ledby qualified instructors. What is more, each manager supports their teams, acting as coaches and mentors. 
Table. Selected employee development programs at AmRest
Name of the program
Description
Career Redefined
Concept,whichmeansthatcareerpathsatthecompanyarenotdefinedin astandardizedmanner.Eachemployeegetstodefineandshapetheirown career,whilethecompanyworkstoprovidethemwithopportunitiesto grow: new responsibilities or positions, transferal to a different unit etc.
Review Board
ReviewBoardisakeypointofAmRestuniquepromotionprocess.Having completedmostdevelopmentprocessesandprograms,theemployee meetswiththeReviewBoardthatverifiestheirknowledgeandreadinessto be promoted to a higher level.
AmRest University
Atailoreddevelopmentprogramthatfocusesonstrategy,finance, leadershipandself-awareness.Thecoursesareledbyinternalinstructors, Board members or recognized international experts.
AmCollege
AdevelopmentprogramaimedatpreparingfortheReviewBoardonhigher levelinorganization,attendedbypeoplewhohavesuccessfullypassedthe Assessment Center.
AmSchool
AmSchoolisanumberofopentrainingsdedicatedtomanagersofalllevels. InternaltrainingsaregenerallyavailabletoallAmRestmanagers:KFC,Pizza Hut, Starbucks, Burger King, Blue Frog, Sushi Shop.
Spread Your Wings
Aglobaldevelopmentprogramwhosemaingoalwastoidentifyemployees withleadershiptalentsandabilitieswithintheorganizationandfacilitate theirgrowth.Inthisway,theorganizationdevelopstheworld-classleaders it needs in the context of its dynamic global growth.
Individual Development Plans
Atoolthatemployeescanusetoorganizetheirpersonalandprofessional development.Ithelpstoplandevelopmentactivities,monitortheprogress and measure all successes achieved on your growth path.
Store-levelmanagersparticipateindedicateddevelopmentprogramsdependingontheirposition.Store managersareofferedtrainingtodeveloptheskillsnecessarytoeffectivelymanagepeopleandrestaurants, includingfoodsafety,humanresourcemanagement,customerservice,productmarketing,promotionand sales.
Restaurantworkersaregivenjobtrainingthatincludesacustomer-focusedapproachandsuggestiveselling. Employeesnotcoveredbytheabove-mentioneddevelopmentprogramsareofferedothertraining opportunities. 
ThetotalnumberoftraininghoursofAmRestemployeesgloballywas748 837hours–742 591forrestaurant workers(OPS)and6246forofficeworkers(RST).Inaddition,nearly2300employeesdecidedtosetan Individual Development Plan, which helped them grow.
JobPerformanceAppraisalisaformalmethodofevaluatingemployeeperformanceinagivenperiod.The processinvolvesemployeeself-evaluationandaperformancereviewbyasuperior.Basedontheir evaluation,theemployeemayqualifyfortheSpreadYourWingsprogramoranannualbonus.Thescheme applies to store managers as well as office workers in all the countries where AmRest operates. 
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Digitalization of  work life
The COVID-19 pandemic has changed the way people work and turned our homes into offices. 
Workfromhome(HomeOffice)hasbecomeadailyroutineforallAmRestofficeworkers.Theofficesinmany countriesoperatedtoalimitedextent.AmRestrecognizedthatthiswasachallengingtimeforitsemployees –atthesametime,thecompanybelievedthatworkingfromhomecanbeaproductiveandfulfilling experience. 
Thecompanyrananinternalcommunicationscampaign,sharingtipsforremotework,aswellasdeveloping atemporaryhome-officepolicy-reflectinglegalrecommendationsinthisareaandprovidingtipsandadvice on how to make remote work a more positive experience.
Employee benefits
AmRestoffersawiderangeofemployeebenefitsinmanycategories.Thecompanydoesnothaveaglobal policyinthismatter,butitismanagedlocallytorespondtothespecificneedsofemployees ineachmarket. 
Table. Selected employee benefits by category
Benefit category
Description
Health care
AmRest employees and their families can take advantage of medical care, covering  visits to medical centers, an online patient portal, online consultations, e-referrals, e-prescriptions and online access to test results.
Insurance
Comprehensive insurance coverage during domestic and foreign business trips, additional life and accident insurance for employees and family members.
Vouchers
Each AmRest restaurant and office employee in Poland and Czech Republic receives the BonAmpetit discount card that allows them to buy products from AmRest brands in Poland and Czech Republic with a 25% discount. Additionally, a wide range of vouchers and discounts to many different shops are offered for AmRest employees across markets.
Entertainment
Employees can choose from a wide range of coupons, such as cinema or theater tickets, weekend or vacation holidays. 
AmRestusesaflexibleworkingtimesystem.Thecompanyfavorsthetask-basedsystem.Restaurant employees can adapt their work schedules, which makes it easier for them to maintain work-life balance. 
Collective bargaining agreements in Spain and Germany
Collectivebargainingagreementsor“CBAs”inSpainaredetailed,bindingagreementsnegotiatedbetween unions(and/orotheremployeerepresentatives)andemployers’associations(and/oremployers).InSpain, allcompaniesthatbelongtoaspecificindustryareautomaticallyboundbytherulesestablishedinthe nationwide CBA. 
AmRestinSpainhassigned18CBAswithdifferentrulestobefollowedincludingsalaryandbenefits,work hours, annual vacation planning, job categories, etc. 
Actionsaimedatfacilitatingconciliationandencouragingtheco-responsibleexerciseofthisbybothparents in Spain: 
■
Sharinginternalinformationchannelstoensurethatemployeesareinformedofthelegal possibilities of conciliation
■
Monitoring of the equality plan established by the company
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■
Ensuringoptionssuchastheadaptationoftheworkingtimetableinsteadofreducingtheworking day in order to avoid changes in salaries.
■
Discussions with unions to find new initiatives on a regular basis
Thecollectivebargainingagreement/tariffagreementinGermanyisnegotiatedbetweenunionNGGandthe employersassociationBDS.AllcompaniesfromthefoodserviceindustrycanbepartofBDS.Iftheyarepart, theircompanyisautomaticallyboundbytherules,butindividualcontractsarepossibleasanexamplefor AmRest RST employees. 
AdditionallyAmRestinGermanyhassigneddifferentagreementswiththeworkerscouncilforbonus, benefits,training,etc.Everyagreementwhichcontainsbetterworkingconditionsandpaymentconditions are allowed by the labor law. 
Table. AmRest Holdings SE employees covered by collective bargaining agreements
Country
Number of employees
France
4 704
Germany
2 541
Italy
13
Portugal
55
Spain
3 300
Switzerland
179
TOTAL
10 792
Table. Total number of AmRest Holdings SE employees by country
Country
2019
2020
Austria
39
48
Belgium
290
143
Bulgaria
442
329
China
2 275
2 110
Croatia
214
154
Czech Republic 
7 626
6 638
France
5 145
4 783
Germany
3 363
2 735
Hungary
1 997
2 003
Italy
19
13
Luxembourg
88
91
Poland
16 785
14 180
Portugal
84
55
Romania
749
720
Russia
7 436
6 357
Serbia
315
363
Slovakia
260
213
Slovenia
16
13
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AmRestGroupNon-financialInformationStatementfor2020
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Country
2019
2020
Spain
4 430
3 576
Switzerland
152
179
United Kingdom
69
76
USA
1
1
TOTAL 
51 804
44 780
Table.Averageannualsalarybygender,positioningwithinorganizationandsegmentsinEUR,in2020. Thesegmentsaredefinedinnotenumber5ofAnnualAccounts.Totalsalarypaygapbetweenmen and women by position within the organization. The data represents 95% of employment. 
Duetodataprotectionandconfidentiality,AmRestHoldingsSEdoesnotdiscloseinformationaboutremunerationinsome segments when there are two or less persons employed on a given level.
2020
thousand EUR
Gender pay gap
Division
Level
Women
   Men
-/+
L1
6.0
6.1
-2%
L2
12.9
13.4
-4%
L3
17.5
18.0
-3%
L4
28.1
29.6
-5%
L5
59.3
59.9
-1%
China
L6
-
-
+4%
L1
15.8
17.3
-9%
L2
23.1
22.6
+2%
L3
22.5
24.6
-9%
L4
37.0
38.6
-4%
L5
59.3
59.7
-1%
Western Europe 
L6
103.7
102.6
+1%
L1
2.4
2.6
-5%
L2
4.7
4.9
-5%
L3
6.5
7.1
-9%
L4
9.9
11.1
-10%
L5
25.2
25.0
+1%
Russia 
L6
64.7
38.4
+68%
L1
6.2
6.0
+3%
L2
10.0
10.1
-1%
L3
12.9
13.5
-5%
L4
17.4
19.1
-9%
L5
35.3
37.4
-6%
Central Europe
L6
66.8
74.3
-10%
Group pay gap
-2%In total women earn 2% less than men.
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Group pay gap was calculated using sigma equation:
In2020thecompanycollectedthedataofaverageannualsalariespergenderfromallcountries,therefore thedataarenotcomparabletoNFISfor2019,inwhichSushiShopmarketswerenotconsidered.Starting from 2020 AmRest will calculate the gender pay gap each year based on the same data scope. 
Table. Total average annual salary by age in EUR in 2020.
thousand EUR
<30
12.1
30-50
19.9
>50
23.3
The Board of Directors compositions as well as the breakdown of the remunerations are set forth in the table below.
Table.TotalannualremunerationofBoardofDirectors,includingvariableremuneration,allowances, compensation in 2020. 
thousand EUR
Name
Period 
Type
FY 2020
From 01/01/2020 to 30/11/2020
Proprietary Director, 
Chairman of the Board
José Parés Gutiérrez
From 01/12/2020 to 31/12/2020
Executive Director,
Chairman of the Board
37.5
Luis Miguel Álvarez Pérez
From 01/01/2020 to 31/12/2020
Proprietary Director, 
Vice-Chairman of the Board 
37.5
Carlos Fernández González
From 01/01/2020 to 31/12/2020
Proprietary Director
37.5
Pablo Castilla Reparaz
From 01/01/2020 to 31/12/2020
Independent Director 
50
Romana Sadurska
From 01/01/2020 to 31/12/2020
Independent Director 
50
Emilio Fullaondo Botella
From 01/01/2020 to 31/12/2020
Independent Director
50
Mustafa Ogretici
From 01/01/2020 to 30/06/2020
Independent Director
50
Mónica Cueva Díaz
From 01/07/2020 to 31/12/2020
Independent Director
50
Total
362.5
The 2018-2021 Directors Remuneration Policy sets the following fixed components: 
■
Board member: 75 thousand euros per annum per director. 
Image
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AmRestGroupNon-financialInformationStatementfor2020
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■
IndependentdirectorandmemberoftheExecutiveCommitteeoranyoftheadvisory committees: 25 thousand euros additional euros per independent director. 
ExceptionallygiventhecircumstancescreatedbytheCOVID-19pandemic,theBoardresolvedonMarch26 to reduce their remuneration by 50% and defer their payment until December 2020.
Table.TotalannualremunerationofManagers,includingvariableremuneration,allowances, compensation
thousand EUR
FY 2020
Total Remuneration
4 071
Fixed 
2 975
Variable 
 607
Share based remuneration schemes 
489
Other 
-
Allowances 
-
Managersshouldbeunderstoodasgroupofpersondischargingmanagerialresponsibilities(senior management staff who are not executive directors). 
Sharebasedremunerationschemesarelong-termincentiveplanswithlifeofoptionsupto10years,with datesandamountsofexercisedependingsolelyontheEmployeedecision,afterfulfillingvestingconditions. Duetotheirnon-recurringandlong-termcharacteristics,calculationofaverageannualamountofshare option plans would be misleading.
Overthecourseof2020onlyonewomanwasamemberofExecutiveTeamatAmRest.Hencethe remuneration by gender will not be provided due to the data confidentiality. 
Table.TotalannualremunerationofManagers,includingvariableremuneration,compensationby age except of share based remuneration
thousand EUR
2020
<30
-
30-50
281
>50
380
In the group there are neither long-term saving systems nor life insurance premiums. 
Table. Indicator of diversity 
Number of employees
Percentage of all employees
Disability
992
2%
Occupational health & safety 
Occupationalhealthandsafetymattersaregenerallygovernedbytherelevantnationallawsandnotatthe organizationallevel.However,thetopicisbeingmonitoredbytheHealth&SafetyCommitteewithinthe Board of Directors of AmRest Holdings SE. 
Aspartofthemanagementofthetopic,eachcountryfollowstheOccupationalRiskPreventionPlan,withan assessmentandsurveillanceoftheriskfactorsthatmayaffectthelaborhealthandlaborsafetyofworkers 
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andergonomicandpsychologicalfactors.In2020thecompanycarriedoutanupdateofthePlantocomply with current legal requirements.
In2020AmRestimplementedstricthygieneregimetoensurethehighestlevelofemployeehealthandsafety duringCOVID-19pandemic.ThoseappliedbothtoAmRestrestaurantsbutalsotodeliveringorderstothe customers (contact-less deliveries).
AmRestisalsomonitoringthepreventiveactivityanddeterminationofprioritiesintheadoptionofpreventive measures, and supervising their effectiveness. 
TheGroupiscommittedtoconstantlyraisingawarenessandeducatingemployeesintermsofemployee healthandsafetyaswellaspromotingpracticeshelpingtomaintainthehighestlevelofhealthandsafetyin theworkplace.Thecompanydevelopedattractivetrainingmaterialstopromoteoccupationalsafetyandan e-learningschemetopreventworkplaceinjuries.Additionally,eachofAmRest’srestaurantsisequippedwith first aid and emergency plans.
Table. Information about occupational health and safety in AmRest Holdings in 2020. 
men
473
Work-related injuries
women
344
men
23.75
Injury rate for employees
women
13.83
men
0
Work-related fatalities
women
0
men
214 950
Absenteeism among employees*
women
476 572
Type of injuries
broken hands and legs; bone fractures; dislocations or sprains or tears; hot water, steam or chemical burns; internal injures
*-Thisincludesabsencefromworkbecauseofincapacityofanykind,notjustastheresultofwork-relatedinjuryordisease. Permittedleavesofabsencesuchasholidays,study,maternityorpaternityleave,andcompassionateleaveareexcluded.The data is reported in days.
Whistleblowing channel
AtAmRest,opencommunicationisavitalelementthatdeliversvaluableinsightandhelpsthecompanyto enhanceandprotectitsemployeesandbusiness.TheSpeakOpenlyprogramdeliversonthatmissionby allowingemployees,formeremployeesandotherstakeholdersatalllevelstovoiceconcerns,raiseissues andprovidefeedbackinasafeenvironment.Itisbasedonanalternativetwo-waycommunicationprocess thatenablesAmRestemployeestoaddressanyissuethatisimportanttothem.Thenumberofpotential violations of the Code of Ethics filed by the Speak Openly in 2020 was 72. 
AmRestvaluesfeedbackandiscommittedtoensuringjobsatisfactionthroughoutalldiversebrands.The companytakesanywork-relatedconcerns,complaintsoranyothermattersseriouslyandresolvesthemas promptly as possible. 
In2020thecompanyupdatedtheWhistleblowingPolicy.Theaimofthisdocumentistogiveguidelineson thewhistleblowerprogram,whichisdesignedtoremoveanybarriersthatmayexistasitrelatestosharing and receiving any type of feedback that employees and other stakeholders feel is important. 
Human rights 
AmRestbelievesthataresponsiblebusinessisonethatrespectshumanrights.Observinghumanrightsisa foundationofacompany'slong-termdevelopment.Beingawarethatcomplyingwithhumanrightsisthe legalduty,thecompanystressesthatconformingtohumanrightsisastandardthatfollowsfromAmRest's corporateculture.Respectforhumanrightsgovernstheinternalrelations(employees)andexternaldealings 
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(e.g.customers,suppliers,localcommunities).Thecompanydoesnotoperateorparticipateinprojectsthat would infringe on human rights or encourage anybody to do so. 
Continuously,in2020humanrights,corruptionandbriberymattershavebeengovernedbydedicated policies,explainedinatablebelow.In2020therewerenoconfirmeddiscriminationinstancesneither violation of human rights at AmRest Holdings SE. 
Table. Summary of main AmRest policies in terms of employee-related issues
Name of the policy 
Main objectives
Code of Conduct 
A set of rules and standards of ethical behavior which the employees should follow in everyday actions. The Code applies to all employees and coworkers at all levels, including the directors, executives and officers of companies belonging to the AmRest Group in each country where it operates. The aim of the document is to describe behaviors that are acceptable and not acceptable at AmRest: a set of norms to apply to the relations with the customers and coworkers, as well as Business Partners, media, local authorities and communities where the group operates.
The Crime Prevention, Anti-bribery and Anti-corruption Policy
Defining and prohibiting human trafficking, discrimination against foreigners, child prostitution, sexual harassment, corruption and violations of basic human rights and freedoms defined in the Constitution. During the reporting period there were two incidents of employee misconduct with financial implications reported. One is still under investigation.
Diversity Policy
Aimed at creating a work environment in which each employee feels respected and valued and where they can fully realize their potential, which contributes to the success of the whole organization.
The Whistleblowing Policy
Indicating ways of reporting wrongdoing in the organization, including cases of potential human rights abuses.
Social Media Policy
The increasing popularity of social media and new communications tools create challenges pertaining to the protection of AmRest’s property rights, good name and reputation. The document presents rules and recommendations to follow when it comes to all currently available and future social media platforms and communications tools.
Gender Policy
The global framework that defines the core standards and sets out the organizational mechanisms to ensure gender equality in AmRest entities worldwide. The provisions of the Policy stem directly from the AmRest Core Values, supplemented by the Code of Business Conduct.
SOCIALISSUES
AmReststrengthensandpromotessocialengagement,creatingboththespaceandopportunitiesforthe employeestoparticipateininitiativesthatbenefitlocalcommunities.Asaresponsiblebusiness,theGroup helpstosolveimportantsocialissuesintheclosestenvironment.AmRest'sinvolvementtakesdifferentforms and concerns different types of social support, yet it always is in line with the company values. 
In2020despiteallthechallengestherestaurantindustryhadfaced,thecompanycontinuedtosupportlocal communities (including medical services) and fight the food waste on a big scale.
ThesocialengagementofAmRestHoldingsSEin2020wasgovernedbytheResponsibleBusinessand SustainableDevelopmentStrategyofAmRestfor2015-2020(CSRStrategy),whichidentifieslocal communities as one of its focus areas.
Selected strategic goals: 
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■
AmRestisperceivedasasociallyresponsiblebusinessthathelpssolveimportantsocialissuesinits surrounding environment. 
■
AmRestsupportsitsemployees’engagementinlocalinitiatives,andinspiresactionbyproviding its employees with the right tools to give back to and support external community service projects. 
AmRestanditsemployees’approachtotheirsocialenvironmentisregulatedintheCodeofBusiness Conduct,whichobligesAmRestworkerstoberesponsiblemembersoftheirlocalcommunities.Theyare also encouraged to act for the benefit of others and support charity initiatives and educational projects. 
In 2020 AmRest Holdings SE donated 188 278EUR on social causes.
Table. Expenditure on social causes by country
Country
thousand EUR
China
18 705
Czech Republic
1 144
Germany*
85 814
Poland
12 775
Romania
18 441
Russia**
51 399
TOTAL
188 278
*- The main beneficiary was the WWF.**- The main beneficiary was the Opening Horizons Foundation.
Global support for medical staff
In2020,AmRestengagedinhelpinglocalcommunitiesaroundtheworldduringtheCOVID-19pandemicby donatingmealsformedicalstaffworkinginhospitalsandambulancestations.Asaresult,over60 000meals and 60 000 cups of coffee were donated by AmRest brands.
ThebiggestsupportwasperformedbyKFC,PizzaHut,BurgerKingandStarbucksinPoland.Thebrandsin Marchjoinedforceswith#WzywamyPosiłkiinitiative(#MealsOnCall),whichestablishedthecoordinator networkforthewholecountry.Thisprovidedregular,directhelpformedics’needs,witheachcoordinator contactinghospitalsintheirareaandorganizingmeals.AmRestrespondedtothoseneedsbysharing40 000 meals in two months. 
Additionally,thePizzaHutbrandsupportedsocialwelfarehomesinJune,offeringfreemealsforthestaff and residents, delivering  a total of 2000 meals (soups, pizzas, desserts) to those in need. 
AmRest’sparticipationinthe#MealsOnCallinitiativehasbeenrecognizedbyThePepsiCoFoundation,which granted the company $65 000 for the purpose of supporting medical staff. 
Table. Selected medical staff support initiatives across markets
Country
Brand
Initiative
Czech Republic
KFC, Pizza Hut, Burger King, Starbucks
Support for the Integrated Rescue System (medical services, firefighters, police)
Spain
La Tagliatella, KFC, Bacoa, Blue Frog
Delivering free meals to hospitals and police stations in Spain
France
Sushi Shop, Pizza Hut, KFC 
Joint support of AmRest and its franchisees for medics
Russia
KFC, Pizza Hut
Delivering meals to hospitals
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In2020AmRest,asastrategicpartner,continuedtosupportSIEMACHASpotWroclaw, aneducationalspaceforchildren,wheretheycandeveloptheirpassionsandgainnew experiences.DuetotheCOVID-19pandemicthecompanyorganizedculinary workshops online via Facebook. 
In2020,AmRestalsorananinnovativeprogramsupportingNGOsinPoland–AmHero. Theprogramisrunthroughacafeteriasystem-anonlineplatformthatallowsemployeeswithinacertain limit, depending on the position, to choose from the benefits offered
Food waste prevention
FoodwastepreventionisamainpointofAmRestsocialengagement.Bytacklingfoodwaste,thecompanyis atthesametimereducingitsimpactontheenvironmentand, throughtheHarvestinitiative,supportinglocal communities.
In 2020 a few of AmRest’s brands were involved in two global schemes: Harvest and Too Good To Go. 
AmRestlaunchedHarvestin2016.Itisaschemefordonatingsurplusfoodfrom restaurantstoinstitutionsandorganizationsthatsupportthoseinneed.In2020 HarvestoperatedacrossKFCrestaurantsinPoland,Hungary,SerbiaandSpainand inPizzaHutrestaurantsinPoland.AmRestalsodonatesthesurplusesfromits warehousesinPolandandSpain.Overall,Harvestdonationsin2020exceededfood worthover925 000EURintotal.Atthebeginningof2020,BurgerKinginPoland joined the scheme. 
Table. Harvest: key figures (2020) 
Total
KFC
Pizza Hut
BK
Warehouses
Amount of food donated (kg) 
160 355
134 398
3 438,5
1 167
21 352
Value of food donated (thousand euro)
925
745
9
13
159
No. of participating stores 
362
319
13
30
-
No. of participating markets
-
4
1
1
2
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Table. Harvest by country and brand
HARVEST at AmRest
No. of participatingKFC restaurants
No. of participating Pizza Hut restaurants
No. of participating Burger King restaurants
Poland
243
13
30
Spain
27
-
-
Hungary
38
-
-
Serbia
11
-
-
TOTAL
319
13
30
TooGoodToGoisaprojectaimedatreducingfoodwasteinthe foodserviceindustry.Theschemeisweb-driven,withanapp informingusersattheendoftheworkingdaywheretheycanbuy surplusfoodatasignificantlyreducedrate.Theusercantrack restaurantsparticipatinginthescheme.Thediscountsreachupto 50%offtheregularprice.Inthisway,insteadofthrowingfoodaway,arestaurantcansellitviatheapp.In 2020theschemecovered75SushiShopstores,149PizzaHutrestaurantsinPolandand191Starbuckscoffee houses. In total over 232 000 of surprise boxes were saved. 
InSeptember2020AmRestjoinedforceswithTooGoodToGotorunanationaleducationalcampaignin Poland(‘1/3offoodisbeingwasted.Saveit!’)thatwasaimedatraisingawarenessofthefoodwasteissue. 
Table. Too Good To Go in Europe: key figures 
Total
Sushi Shop
Pizza Hut
Starbucks
No. of meals saved
232 502
93 366
34 914
104 222
No. of equity stores
415
75
149
191
No. of markets
-
6
1
2
Tonnes of less CO2
580
233
87
260
Other food waste prevention programs across markets
Sobras!allowsuserstopurchasethesurplusfoodatadiscountedprice,intheirusualquality,from restaurantsintheneighborhood.TheappwasavailableinStarbuckscoffeehousesinHungaryfrom December 2020. 
Nesnězenoattemptstoeliminatewastingfoodbypresentingstoresandrestaurantstosellleftovermeals beforeexpirationortheendofbusinesshoursviaamobileapp.Thesolutionwillbeimplementedin Starbucks coffee houses in Czech Republic in Q2. 
Membership in organization
AmRestusesitsscaletosharethebestpracticesamongindustryleadersinmanycountries.Thatiswhythe companyactivelyparticipatesinmanylocalindustryorganizations,verifyingandconsultingthelocal legislation,encouragingthedevelopmentofinnovationsandsharingitsexperiencewithotherindustry representatives. Total amount of money paid as membership fees is EUR 215 574.
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Table. Membership of industry organization
Country
Name of the organization
Shanghai GiftCard Association      
ShanghaiJinQiaoEconomicandTechnologicalDevelopmentZoneEnterprise Association
Shanghai Pudong Foreign Investment Enterprise Association
China
Shanghai Catering and Cooking Industry Association     
Croatia
Croatian Chamber of Economics
Czech Republic
International Facility Management Association
France
SNARR (National Professional Restaurant Union)
Bundesverband Systemgastronomie (The Federal Association of the System Catering)
Germany
Industrie- und Handelskammer (Chamber of Commerce and Industry)
Hungary
Chamber of Commerce
Russia
Saint-Petersburg Chamber of Commerce and Industry
ZwiązekPracodawcówHoteli,RestauracjiiCateringu(AssociationofHORECA Employers)
Young Presidents Organization
Association of Chartered Certified Accountants
Polska Rada Centrów Handlowych (Polish Council of Shopping Centers)
The Chartered Institute of Management Accountants
PolandPoland
American Chamber of Commerce
HoRaOrganizațiaPatronalăaHotelurilorșiRestaurantelordinRomânia(Associationof Hotel and Restaurant Employers) 
Romania
Asociatia “Centrul Vechi” (The Old Town Association)
Comité Horeca de AECOC (HORECA Committee)
Asociaciónprogresodirección -APD(Formación)(AssociationforProgressand Management)
AsociaciónEmpresarialdeMarcasdeRestauración-Fehrcarem(BusinessAssociationof Restaurant Brands)
Asociación Española del Franquiciado (Spanish Association of Franchisees)
Spain
AsociacióndelClusterFoodServicedeCataluña(AssociationoftheFoodServiceCluster of Catalonia)
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KEY NON-FINANCIAL FACTORS
List of noteworthy events of 2020:
1.Appointment of the Executive Chairman of the AmRest Group: 
■
On1December2020AmResthasresolvedtoappointMr.JoséParésGutiérrez,current ChairmanoftheBoardofDirectorsandofitsExecutiveCommittee,asnewExecutive ChairmanoftheAmRestGroup.TheExecutiveChairmanwillbedelegatedallthepowers thatcorrespondtotheBoardofDirectorsexceptthosethatarenon-delegablebyvirtueof thecurrentlegislation,theBylawsandtheRegulationsoftheBoardofDirectorsofAmRest.
2.Changes within the Board of Directors and Executive Team of AmRest Holdings SE:
■
On1July2020AmRestannouncedtheresignationpresentedbythedirectorMr.Mustafa OgreticiandtheappointmentofMs.MónicaCuevaDíaz,asanindependentdirector, approvedonthesamedaybytheBoardofDirectors.Asaresult,theBoardofDirectors of AmRest Holdings SE currently consists of two women and five men.
■
InSeptemberitwasannouncedthatMalenaPatoCastel,ChiefOperationsOfficerEquity BrandandaMemberoftheExecutiveTeam,hasdecidedtoleaveAmRest.Asof31 December 2020 the Executive Team consists of eight men. 
3.SigningthefirstPizzaHutfranchiseagreementinPoland,followingthemaster-franchisee agreementwithYum!Brands.Asaresult,on22October2020thesub-franchiseeopenedPizzaHut restaurant in the newly built shopping mall Galeria Wiślanka in the Southern Poland city of Żory. 
4.Strengtheningitspresenceintheonlineanddeliverysegmentbyaddingacoupleofnewvirtual brandstotheCompany’sportfolio.Inaddition,theCompanylaunchedaninnovativeconceptcalled FoodAboutwhichenablesconsumerstoorderproductsfromvariousvirtualbrandsinonedelivery.
5.EstablishingtheSustainabilityCommittee,whichconsistsoftheChiefExecutiveOfficer,Chief DevelopmentOfficer,ChiefOperationsOfficer,ChiefPeopleOfficer,FoodServicesPresidentand Brand Reputation Director. Main objectives of Sustainability Committee: 
■
Tooverseeandprovideguidanceonthemanagementofthesocial,ethicaland environmental impact of the business; 
■
Toreviewandapprovestrategiesandpoliciesonsocial,ethicalandenvironmental issues; 
■
Toidentifyopportunitiestopromotethecorporateimageandpotentialthreatsto corporate reputation in the above mentioned areas; 
■
ToidentifyopportunitiesinwhichCorporateResponsibilityandSustainabilitycanhelp improve the effectiveness, profitability and prospects of the business; 
■
Toreview,approveandmonitorprogressofCSR/Sustainabilityprojectsandrelated budgets; 
■
To agree on and monitor Corporate Responsibility/Sustainability KPIs.
Taxes
AmRestbelievesthatithastheobligationtopaylegallyduetaxesinanyterritorywhereitoperatesin accordancewiththeexistinglegalprovisions.AmRestfollowstherelevantruleswhendeterminingthe amountofitstaxliabilities,submittingtaxreturns,payingtaxesanddisclosinginformationtotaxauthorities. 
Inordertoensureitscompliancewithexistingtaxlaws,regulationsandprinciples,AmResthasputinplace effectivecontrolmechanisms.AmRest’staxprofessionalsmonitorthetaxsituationofthegroupandany changesintaxlawsandpracticeswhichmayimpactthebusinessanditsgrowth.AmRestmakessignificant investmentsinpeople,materialresourcesandtechnologytoensurethatthistaxstrategyisapplied throughout the organization.
Some countries in the tables below have reported zero tax as a result of settling losses from previous years.  
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Table. Profits earned by country 
Country
Profit/(loss) before tax
thousand EUR
Austria
(18 255,5)
Belgium
(689 357.9)
Bulgaria
404 221.7
Croatia
(287 255.5)
Czech Republic
4 924 469.8
China
4 452 298.4
France
(43 577 185.6)
Germany
(44 529 494.6)
Hungary
302 424.3
Italy
(7 099.9)
Luxembourg
(417 036.1)
Malta
(29 934.2)
Netherlands
(451 897.1)
Poland
(68 469 364.4)
Portugal
(1 004 922.5)
Romania
(2 633 978.5)
Russia
(1 835 838.9)
Saudi Arabia
120 020.6
Serbia
(748 564.5)
Slovakia
(1 210 178.4)
Slovenia
(425 563.2)
Spain
(26 854 821.5)
Switzerland
300 847.2
UK
939 264.0
United Arab Emirates
554 515.2
USA
(713 853.4)
Theabovedatawerederivedfrominputdatareceivedfromsubsidiariesforthepurposeofpreparationof consolidated financial statements before any consolidation eliminations and adjustments.
Table. Income taxes paid (unearned) 
Country
Income taxes paid (unearned)
thousand EUR
Czech Republic
4 342 293.1
China
1 232 075.4
France
947 346.3
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Country
Income taxes paid (unearned)
thousand EUR
Germany*
523 789.3
Hungary
2 167 800.3
Poland
5 072 338.4
Russia
1 456 076.4
Slovakia
22 146.1
Spain
371 235.6
*- Tax paid for 2015 (pre-acquisition tax liabilities)
Theabovedatadiffertoincometaxlineintheconsolidatedincomestatement.Incometaxlinein consolidatedfinancialstatementsincludesboththeeffectofcurrentincometaxesthatmaybepaidor payableaswellasdeferredtaxesaccountedduringtheyear.Theabovedataalsodifferfromincometaxpaid balanceaspresentedinconsolidatedstatementsofcashflows,whereonlycashflowsrelatedtoincometaxes are disclosed.
Public subsidies received
For the main markets of operation the Group has filled the following programs in the area of labor costs: 
■
Spain
Inaccordancewiththeprovisionsofarticle47oftheWorkersStatute,inrelationtoRoyalDecree 1483/2012andarticle22and23ofRoyalDecree-Law8/2020,aswellasRoyalDecree-Law30/2020, AmRestcompaniesinSpainhavefiledbeforetheSpanishlaborauthorityaTemporaryEmployment RegulationFile(ExpedientedeRegulaciónTemporaldeEmpleoor“ERTE”).TheERTEcovered3288 employees.UndertheERTE,theemployeesremainemployedwithAmRestwithsuspendedsalary andatthesametimereceiveunemploymentbenefitsfromauthoritiesofupto70%oftheirnormal salary.OneSpanishentity,TheGrillConcept,S.L.U.declinedtoextendtheTemporaryEmployment Regulation (ERTE) in September. As of 31 December 2020 the ERTE covers 591 employees.
■
Poland
UndertheActonspecialsolutionsrelatedtothepreventionandcombatingofCOVID-19,other infectiousdiseasesandcrisissituationscausedbythemof2March2020(JournalofLawsof2020, item374),thefollowingmeasuresweretaken,effectiveintheperiod7April–6July2020,with respect to 4 050 employees of AmRest Polish companies: 
■
introduction of reduced working hours and salary by 20% (2 897 employees),
■
introduction of economic downtime (3 936 employees),
■
applicationforcompensationfortheprotectionofworkplacesfromthefundsoftheFund ofGuaranteedEmployeeBenefitstoco-financetheremunerationofemployeesaffectedby economic downtime or reduced working hours as a result of COVID-19.
Intheperiod1August–31October2020followingmeasuresweretaken:applicationfor compensationfortheprotectionofworkplacesfromthefundsoftheFundofGuaranteedEmployee Benefitstoco-financetheremunerationofemployeesaffectedbyeconomicdowntime(August3 736 crew employees, September 3 628 crew employees, October 3 747 crew employees).
From1December2020followingmeasuresweretaken:applicationforcompensationforthe protectionofworkplacesfromspecificindustries-FundofGuaranteedEmployeeBenefits,article 15gga(December309crewemployees,247managersinstores,33RSTemployees).Applicationsare continued in January and February 2021.
■
France 
Introduced“partialactivity”technicalunemploymentgovernmentprogramfor4188employees (SushiShop,KFC,PizzaHut).Employeeswerepartiallyor100%unemployedbytheCompanies.With 
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thesuspensionoftheemploymentcontractthegrosssalarywasmaintainedat70%and100%for minimumsalary.Theemployeesocialsecuritycontributionswerealsoreduced,allowingthe employeestoreceive84%ofnetsalary(or100%forthosewhoperceivetheminimumsalary).The governmentreimburses100%ofthesalarypaidtoemployeesinpartialactivity.Theprogramstarted from15Marchandismaintaineduntiltheendoftheyearinthesamecondition.Restaurants continuetouseitonrotatingemployeebasis,especiallyduringthesecondconfinement(15October to15December2020).Refundsrequestsareinprogress.Companieshaveoneyeartorequestthe reimbursement. 
■
Germany 
Reducedworkinghours(Kurzarbeitergeld)salarygovernmentreimbursementprogramhasbeen introducedeffectiveon1March2020forapprox.3000employees.Thegovernmentreimburses 60%oftheemployee’snetsalaryandsocialcontributions.IntheperiodJuly-September2020the companiesstoppedmeetingtheconditionsbutafterthesecondwaveofrestrictionsstartedinQ4 2020thecompaniesappliedforthenextgovernmentalhelpbeginningofNovember2020.The governmentreimbursesnow60-87%ofthenetsalaryandsocialcontributiondependingonthe individualsituations.Thereimbursementisbasedonnotworkedhoursascomparedtothecontract hours. The company pays the difference up to 90% of the average salary before March 2020.
■
Czech Republic
ThecompanieshaveappliedforthegovernmentaidunderspecialCOVID-19regulations.Therewere two separate programs:
■
employeesondowntimebetween13Marchand31May2020:80%ofsalaryandsocial contribution reimbursed by the government (1 600 employees covered),
■
employeeswith40%reductionofworkinghoursbetween13Marchand31May2020:60% of salary and social contribution reimbursed by the government (80 employees covered).
BothprogramswereextendeduntiltheendofFebruary2021.Governmentalhelpfortheperiod June–Septemberwasnotmaterialasnotmanyemployeeswereondowntime.Duringthesecond waveofrestrictions(October–December)thecompaniesappliedforgovernmentalhelpinthe amount of EUR 1.55 million.
Similaractionsarealsotakenonothermarkets.TheGrouphasappliedforsupportprogramsofferedbyeach country’sgovernment,intheformofreimbursementoflaborcosts,andintroducinginternalactions,suchas shortening of working hours or technical unemployment.
Group’s policy is to present government grants related to income as other operating income. 
For12monthsperiodended31December2020Grouphasrecognizedgovernmentgrantsforpayrollcosts (EUR21.6million)andsocialcontribution(EUR7.9million).ThetotalamountofEUR29.5millionhasbeen recognizedasotheroperatingincome.Theabovegovernmentgrantsareinaformofwaivedsocialsecurity payables(EUR3.7million)andcashgrants(EUR25.8million,outofwhichEUR5.1millionasof31December 2020 was not received yet).
InAugust2020entitiesoperatinginCzechiaappliedforagovernmentprogramcalledCOVIDNajem, providingthegovernmentgrantsforrentcosts(grantlimitCZ20millionperentity).For12monthsperiod ended31December2020GrouphasrecognizedgovernmentgrantsforrentcostsintheamountofEUR1.7 million as other operating income.
Grantingofthegrantbygovernmentsisinsomecasesassociatedwithrequirementstokeeptheagreedlevel ofworkforceforagreedperiod.Asof31December2020theGroupdoesnotexpectthatsuchconditions wouldnotbemet,thereforetherearenomaterialunfulfilledconditionsorothercontingenciesattachedto government assistance that has been recognized.
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GRI Standards content index 
Non-financial Information Report. Contents index of the Law 11/2018
General information
GRI selected
Pages
Brief description of the group’s business model
GRI 102-2
GRI 102-7
36
Geographical presence
GRI 102-3
GRI 102-4
GRI 102-6
37
Objectives and strategies of the organization
GRI 102-14
39
Business model
Main factors and trends that may affect future evolution
GRI 102-14
GRI 102-15
39, 41, 45-46 
General
Reporting framework
GRI 102-54
36
Materiality principle
GRI 102-46
GRI 102-47
42-43
Description of the applicable policies
GRI 103-2
46, 48-51, 54, 72
The results of these policies
GRI 103-2
46, 49-51, 65-67, 71-72 
Management approach
The main risks related to these issues involving the activities of the group
GRI 102-15
45-46
Environmental questions
Current and predictable impacts of the company's activities on the environment and, if applicable, on health and safety.
GRI 102-15
54-62 
Environmental assessment or certification procedures
GRI 103-2
44, 52 
Resources dedicated to the prevention of environmental risks
GRI 103-2
44, 55, 57
Application of the precautionary principle
GRI 102-11
54
Environmental management
Amount of provisions and guarantees for environmental risks
GRI 103-2
62
Contamination 
Measures to prevent, reduce or offset air pollution emissions (including noise and light pollution)
GRI 102-46
58
Prevention, recycling, reuse, other forms of recovery and types of waste disposal
GRI 103-2
GRI 306-2
59-60
Circular economy and waste prevention and management 
Actions to combat food waste
GRI 103-2
GRI 306-2
74-75
Water consumption and water supply according to local constraints
GRI 303-5
(2018 GRI version)
61
Use of raw materials and measures taken to improve the efficiency of their utilization
GRI 301-1 GRI 301-2 GRI 301-3
62
Energy use, direct and indirect
GRI 302-1
56-57
Measures taken to improve energy efficiency
GRI 103-2
GRI 302-4
55-57
Sustainable use of resources 
Use of renewable energies
GRI 302-1
57
The important elements of greenhouse gas emissions generated as a result of the company's activities, including the use of the goods and services it produces 
GRI 305-1
GRI 305-2
GRI 305-3
58
Measures taken to adapt to the consequences of climate change
GRI 103-2
58
Climate change
Reduction goals established voluntarily in the medium and long term to reduce greenhouse gas emissions and measures implemented for that purpose
GRI 305-4
GRI 305-5
58
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Non-financial Information Report. Contents index of the Law 11/2018
Measures taken to protect or restore biodiversity
GRI 102-46
62
Protection of biodiversity
Impacts caused by activities or operations in protected areas
GRI 102-46
n/a
Social and personnel questions
Total number and distribution of employees according to country, gender, age, country and professional classification
GRI 102-8
GRI 405-1
63-64
Total number and distribution of work contract modalities
GRI 102-8
63-64
Annual average of work contract modalities (permanent, temporary and part-time) by sex, age, and professional classification
GRI 102-9
64
Number of dismissals by sex, age, and professional classification
GRI 103-2
63-64
Salary gap
GRI 103-2
GRI 405-2
68
The average remunerations and their evolution disaggregated by sex, age, and professional classification or equal value
GRI 103-2
GRI 405-2
68
The average remuneration of directors and executives, including variable remuneration, allowances, compensation, payment to long-term forecast savings and any other perception broken down by gender
GRI 103-2
GRI 405-2
69-70
Implementation of employment termination policies
GRI 103-2
64
Employees 
Employees with disabilities
GRI 405-1
70
Work schedule organization
GRI 103-2
64, 66
Number of hours of absenteeism
GRI 403-9
(2018 GRI version)
71
Work organization 
Measures aimed to facilitate the conciliation while encouraging the co-responsible performance by both parents
GRI 103-2
GRI 401-3
64, 66
Work health and safety conditions
GRI 403-1
GRI 403-2
GRI 403-3
GRI 403-7
(2018 GRI version)
70-71
Work accidents, in particular their frequency and severity, disaggregated by gender
GRI 403-9
GRI 403-10
(2018 GRI version)
71
Health and safety 
Occupational diseases, disaggregated by gender
GRI 403-9
GRI 403-10
(2018 GRI version)
71
Organization of social dialog, including procedures to inform and consult staff and negotiate with them 
GRI 103-2
66-67
Percentage of employees covered by collective agreement by country
GRI 102-41
67
Social relationships
The balance of collective agreements, particularly in the field of health and safety at work 
GRI 403-3
67
Policies implemented for training activities
GRI 103-2
GRI 404-2
65
Training
The total amount of training hours by professional category
GRI 404-1
65
Universal accessibility for people with disabilities
Universal accessibility for people with disabilities
GRI 103-2
70
Measures taken to promote equal treatment and opportunities between women and men 
GRI 103-2
72
Equality
Equality plans (Section III of Organic Law 3/2007, of March 22, for the effective equality of women and men)
GRI 103-2
72
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Non-financial Information Report. Contents index of the Law 11/2018
Measures adopted to promote employment, protocols against sexual and gender-based harassment, integration, and the universal accessibility of people with disabilities
GRI 103-2
72
Policy against any type of discrimination and, where appropriate, diversity management
GRI 103-2
72
Information about the respect for human rights
Application of due diligence procedures in the field of human rights; prevention of the risks of violation of human rights and, where appropriate, measures to mitigate, manage, and repair possible abuses committed 
GRI 102-16
GRI 102-17
GRI 412-1
71-72
Claims regarding cases of human rights violations 
GRI 103-2
GRI 406-1
72
Human rights
Promotion and compliance with the provisions contained in the related fundamental Conventions of the International Labor Organization with respect for freedom of association and the right to collective bargaining; the elimination of discrimination in employment and occupation; the elimination of forced or compulsory labor; and the effective abolition of child labor
GRI 103-2
GRI 407-1
GRI 408-1
GRI 409-1
72
Information about anti-bribery and anti-corruption measures
Measures adopted to prevent corruption and bribery
GRI 103-2
GRI 102-16
GRI 102-17
GRI 205-2
72
Measures adopted to fight against anti-money laundering
GRI 103-2
GRI 102-16
GRI 102-17
GRI 205-2
7962
Corruption and bribery
Contributions to foundations and non-profit-making bodies
GRI 102-13
GRI 201-1
76
Information about the society
Impact of the company’s activities on employment and local development 
GRI 103-2
GRI 203-2GRI 204-1
72-75
The impact of company activity on local populations and on the territory 
GRI 413-1
GRI 413-2
72-75
The relationships maintained with representatives of the local communities and the modalities of dialog with these
GRI 102-43
GRI 413-1
72-75
Commitment by the company to sustainable development
Actions of association or sponsorship
GRI 103-2
GRI 201-1
72-75
The inclusion of social, gender equality and environmental issues in the purchasing policy 
GRI 103-2
49
Consideration of social and environmental responsibility in relations with suppliers and subcontractors
GRI 102-9
GRI 308-1
49
Subcontractors and suppliers
Supervision systems and audits, and their results
GRI 102-9
GRI 308-2
49
Customer health and safety measures 
GRI 103-2
52-53
Consumers
Claims systems, complaints received and their resolution 
GRI 103-2
GRI 418-1
53
Benefits obtained by country
GRI 103-2GRI 207-4
78
Taxes on paid benefits
GRI 103-2GRI 207-4
78-79
Tax information 
Public subsidies received
GRI 201-4
79-80
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 ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED COMPANIES FOR THE YEAR ENDED 31 DECEMBER 2020 for 202031 December 2020
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A.OWNERSHIP STRUCTURE
A.1 Complete the table below with details of the company's share capital:
Date of last change
Share capital (euros)
Number of shares
Number of voting rights
15/10/2018
21,955,418.30
219,554,183
219,554,183
Remarks
Indicate whether there are different classes of shares with different associated rights:
Yes _No   X
A.2 List the company’s significant direct and indirect shareholders at year end, excluding directors:
% of voting rights attached to the shares
% of voting rights through financial instruments
Name or company name of shareholder
Direct
Indirect
Direct
Indirect
% of total voting rights
Artal International SCA
5.18
0.000
0.000
0.000
5.18
AVIVA Otwarty Fundusz Emerytalny AVIVA BZWBK SA
3.12
0.000
0.000
0.000
3.12
Nationale-Nederlanden Open Pension Fund
4.26
0.000
0.000
0.000
4.26
Breakdown of the indirect holding
Name or company name of the indirect owner
Name or company name of the direct owner
% of voting rights attached to the shares
% of voting rights through financial instruments
% of total voting rights
Indicate the most significant changes in the shareholder structure during the year:
Name of shareholder
Date of transaction
Description of transaction
Artal International SCA
30/03/2020
Transactioncarriedoutinaregulated market,resultingincrossingathreshold of 5% of the Company’s voting rights
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1.ANNUALCORPORATEGOVERNANCEREPORTOFLISTEDCOMPANIES2.
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Most significant movements
A.3Completethefollowingtablesonmembersofthecompany'sBoardofDirectorsholdingvoting rights on the company's shares:
% of voting rights attached to the shares
% of voting rights through financial instruments
% voting rights 
that
can be
transmitted
through financial instruments
Name of director
Direct
Indirect
Direct
Indirect
% of total voting rights
Direct
Indirect
Carlos Fernández González 
0.000
67.05
0.000
0.000
67.05
0.000
0.000
Total percentage of voting rights held by the Board of Directors
67.05
Remarks
Breakdown of the indirect holding:
Name or company name of director
Name or company name of the direct owner
% of 
voting 
rights 
attached 
to the 
shares
% of voting 
rights 
through 
financial 
instruments
% of 
total 
voting 
rights
% voting 
rights
 that
can be
transmitted
through 
financial
instruments
FERNÁNDEZ GONZÁLEZ, CARLOS
FCAPITAL DUTCH, B.V.
41.31
0.000
41.31
0.000
FERNÁNDEZ GONZÁLEZ, CARLOS
FCAPITAL LUX, S.A.R.L.
25.74
0.000
25.74
0.000
Remarks
CarlosFernándezGonzálezownsthemajorityofthesharecapitalandvotingrightsinGrupoFar-Luca,S.A. deC.V.,whichinturncontrolsGrupoFinaccess,S.A.P.I.deC.V.Thelatterowns99.99%ofthecapitaland votingrightsofFinaccessCapital,S.A.deC.V.,whichcontrolstwodirectshareholders:FCapitalDutch,B.V. (100%)andFCapitalLuxS.à.r.l.(100%).Thus,thedirectshareholdersarecontrolledbyanentitylinkedto Mr. Carlos Fernández González.
A.4Ifapplicable,indicateanyfamily,commercial,contractualorcorporaterelationshipsthatexist amongsignificantshareholderstotheextentthattheyareknowntothecompany,unlesstheyare 
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insignificantorariseintheordinarycourseofbusiness,withtheexceptionofthosereportedin section A.6:
Name or company name of 
related party
Nature of relationship
Brief description
A.5Ifapplicable,indicateanycommercial,contractualorcorporaterelationshipsthatexistbetween significantshareholdersandthecompanyand/oritsgroup,unlesstheyareinsignificantorarisein the ordinary course of business:
Name or company name of 
related party
Nature of relationship
Brief description
A.6Describetherelationships,unlessinsignificantforbothparties,thatexistbetweensignificant shareholdersorshareholdersrepresentedontheBoardanddirectors,ortheirrepresentativesinthe case of directors that are legal persons. 
Explain,ifapplicable,howthesignificantshareholdersarerepresented.Specifically,indicatethose directorsappointedtorepresentsignificantshareholders,thosewhoseappointmentwasproposed bysignificantshareholders,orwhoarelinkedtosignificantshareholdersand/orcompaniesintheir group,specifyingthenatureofsuchrelationshipsorties.Inparticular,mentiontheexistence, identityandpostofanydirectorsofthelistedcompany,ortheirrepresentatives,whoareinturn membersorrepresentativesofmembersoftheBoardofDirectorsofcompaniesthatholdsignificant shareholdings in the listed company or in group companies of these significant shareholders.
Name or company 
name of related 
director or 
representative
Name or 
company name 
of related 
significant 
s
h
a
r
e
h
o
l
d
e
r
Company name of 
the group 
company of the 
significant 
s
h
a
r
e
h
o
l
d
e
r
Description of 
relationship/post
Luis Miguel Álvarez Pérez 
FCapital Dutch, B.V.
Grupo Finaccess S.A.P.I. de C.V.
LuisMiguelÁlvarezPérezisa proprietarydirectorofcontrolling shareholder Grupo Finaccess.
José Parés Gutiérrez
FCapital Dutch, B.V.
Grupo Finaccess S.A.P.I. de C.V.
JoséParéswasaproprietarydirector ofcontrollingshareholderGrupo Finaccessuntil30November2020, whenhebecameanexecutive director.
Carlos Fernández González 
FCapital Dutch, B.V.
Grupo Finaccess S.A.P.I. de C.V.
CarlosFernándezGonzálezisa proprietarydirectorofcontrolling shareholder Grupo Finaccess.
Remarks
A.7Indicatewhetherthecompanyhasbeennotifiedofanyshareholders’agreementsthatmayaffect it,inaccordancewiththeprovisionsofArticles530and531oftheSpanishCorporateEnterprisesAct. If so, describe them briefly and list the shareholders bound by the agreement:
Yes  _No   X_
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Parties to the 
shareholders’ 
agreement
% of share capital 
concerned
Brief description of the 
agreement
Expiry date of the 
agreement, if any
Indicate
whether
the
company
is
aware
of
any
concerted
actions
among
its
shareholders.
If
so,
provide 
a brief description
:
Yes  _No     X_
Parties to the concerted action
% of share capital 
concerned
Brief description of 
the concerted action
Expiry date of the 
concert, if any
If
any
of
the
aforementioned
agreements
or
concerted
actions
have
been
amended
or
terminated 
during the year, indicate this expressly:
A.8
Indicate
whether
any
individual
or
company
exercises
or
may
exercise
control
over
the 
company in accordance with Article 5 of the Securities Market Act. If so, identify them:
Yes   X_No  _
Name or company name
CARLOS FERNÁNDEZ GONZÁLEZ
Remarks
FCapitalDutch,B.V.,FCapitalLux,S.à.r.l.–beingdirectshareholdersofAmRest–holdjointly67.58%ofthe votingrightsinthecompany.FinaccessCapital,S.A.deC.V.controlsfirsttwodirectshareholders(FCapital Dutch, B.V., FCapital Lux, S.à.r.l.), and is in turn owned by Grupo Finaccess, S.A.P.I. de C.V. 
CarlosFernándezGonzálezownsthemajorityofthesharecapitalandvotingrightsinGrupoFar-Luca,S.A. de C.V., which in turn controls Grupo Finaccess, S.A.P.I. de C.V.
A.9
 Complete the following table with details of the company’s treasury shares:
At the close of the year:
Number of direct shares
Number of indirect shares 
(*)
Total percentage of share 
capital
623,461
-
0,2840%
(*) Through:
Name or company name of direct shareholder
Number of direct shares
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Total:
Explain any significant changes during the year:
Explain significant changes
A.10ProvideadetaileddescriptionoftheconditionsandtermsoftheauthoritygiventotheBoardof Directors to issue, repurchase, or dispose of treasury shares.
Thegeneralshareholders’meetingheldon6June2018authorisedthecompany’sBoardofDirectorstobuy backtreasurysharesunderthefollowingterms:(i)theacquisitionmaybeexecutedintheformofasale andpurchasetransaction,sharesswap,sharesdistributionorsharesinlieuofpaymentand,ingeneral,via anyotherlawfulacquisitionmethodinvolvingvaluableconsiderationforsharesincirculation.Such transactionmaybeexecutedonceoronseveraloccasions,providedthattheacquiredshares–addedto thosealreadyinthecompany’spossession–donotexceedthemaximumpermittedbylaw;(ii)thepriceor exchangevaluewillrangebetweenaminimumamountingtotheirparvalueandamaximumequivalentto theclosingpriceofthesharesontheContinuousMarketupontheiracquisition;and(iii)theaforementioned authorisationwillremaininplaceforfiveyearsasofthefollowingdayonwhichthisresolutionwasadopted. Moreover,theresolutionstipulatesthatthesharesacquiredunderthisauthorisedtransaction(s)maybe disposedof,usedinthesuccessfulbiddingprocessofpotentialcorporatedealsorappliedtothe remuneration mechanisms set forth under Article 146.1 a) of the Corporate Enterprises Act.
Inaddition,aresolutionwasalsopassedatthegeneralshareholders’meetingtodelegatetheauthorityto theBoardofDirectorstoincreasethecompany’ssharecapital–includingtheabilitytoexcludepre-emptive rights(restrictedinthisinstanceto20%ofthesharecapital)–inaccordancewiththetermsoftheCorporate Enterprises Act.
A.11 
Estimated floating capital:
%
Estimated floating capital
20.11
Remarks
Thecompany’sworkingcapitalamountstojustabove20%oncethestakesofshareholdersholdingatleast 3%oftheshares,thesharesownedbythecompany’sdirectorscloselyrelatedtosignificantshareholders and the treasury stock have been discounted. 
A.12Indicatewhetherthereareanyrestrictions(articlesofincorporation,legislativeorofanyother nature)placedonthetransferofsharesand/oranyrestrictionsonvotingrights.Inparticular,indicate theexistenceofanytypeofrestrictionthatmayinhibitatakeoverofthecompanythrough acquisitionofitssharesonthemarket,aswellassuchregimesforpriorauthorisationornotification thatmaybeapplicable,undersectorregulations,toacquisitionsortransfersofthecompany’s financial instruments.
Yes _No   X
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Description of restrictions
A.13
Indicate
whether
the
general
shareholders'
meeting
has
resolved
to
adopt 
measures to neutralise a takeover bid by virtue of the provisions of Law 6/2007.
Yes _No   X
If
so,
explain
the
measures
approved
and
the
terms
under
which
such
limitations
would
cease
to
apply:
Explain the measures approved and the terms under which such limitations would cease to apply
A.14
Indicate
whether
the
company
has
issued
shares
that
are
not
traded
on
a
regulated 
EU market.
Yes _No   X
If so, indicate each share class and the rights and obligations conferred.
Indicate the various share classes
B.GENERAL SHAREHOLDER’S MEETING
B.1Indicatewhetherthereareanydifferencesbetweentheminimumquorumregimeestablishedby theSpanishCorporateEnterprisesActforGeneralShareholders’Meetingsandthequorumsetbythe company, and if so give details:
Yes XNo  __
% quorum different from that 
established in Article 193 of the 
Spanish Corporate Enterprises 
Act for general matters 
% quorum different from that 
established in Article 194 of the 
Spanish Corporate Enterprises 
Act for special resolutions
Quorum required at
1st call
At least 40% of share capital subscribed with voting rights.
At least 60% of share capital subscribed with voting rights.
Quorum required at
2nd call
N/A
At least 40% of share capital subscribed with voting rights.
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Description of differences
B.2Indicatewhetherthereareanydifferencesbetweenthecompany’smannerofadoptingcorporate resolutions and the regime provided in the Spanish Corporate Enterprises Act and, if so, give details:
Yes _No   X
Describe how it is different from the regime provided in the Spanish Corporate Enterprises Act.
Qualified majority different from 
that established in Article 201.2 of 
the Spanish Corporate Enterprises 
Act for matters referred to by 
Article 194.1 of said Act
Other matters requiring a 
qualified majority
% established by the
company for the 
adoption of resolutions
B.3Indicatetherulesforamendingthecompany’sarticlesofincorporation.Inparticular,indicatethe majoritiesrequiredforamendmentofthearticlesofincorporationandanyprovisionsinplaceto protect shareholders’ rights in the event of amendments to the articles of incorporation.
B.4GivedetailsofattendanceatGeneralShareholders’Meetingsheldduringthereportingyearand the two previous years:
Attendance data
% distance voting
Date of General Meeting
% physically 
present
% present by 
proxy
Electronic voting
Other
Total
10/06/2020
0.00%
70.32%
0.00%
0.00%
70.32%
Describe the
differences
PursuanttoArticles19and20ofAmRest’sArticlesofAssociationandArticles16and26oftheBoardof DirectorsRegulation,whereanordinaryorextraordinarygeneralshareholders’meetingisarrangedto discussamendmentstotheArticlesofAssociation,shareholdersrepresentingatleast60%oftheshare capitalsubscribedwithvotingrightsmustbeinattendanceatthefirstcalling(primeraconvocatoria)for suchmeeting(s)tobeconsideredvalid. Atsecondcall(segunaconvocatoria),atleast40%ofthesubscribed capital with voting rights is required. 
Withregardtotheadoptionofresolutions,theArticlesofAssociationandBoardRegulationrefertothe termssetforthbylaw,i.e.resolutionsadoptedbywayofabsolutemajoritywherethepresentor representedcapitalequals50%(60%atthefirstcalling).Atsecondcall,whereshareholdersrepresenting lessthan50%ofthecapitalsubscribedwithvotingrightsarepresent,resolutionsconcerningamendments totheArticlesofAssociationmayonlybevalidlyadoptedwithafavourablevoteoftwo-thirdsofthepresent or represented capital at the general shareholders’ meeting.
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Of which floating capital:
0.00%
4.66%
0.00%
0.00%
4.66%
14/05/2019
0.00%
79.26%
0.00%
0.00%
79.26%
Of which floating capital:
0.00%
12.18%
0.00%
0.00%
12.18%
06/06/2019
0.00%
76.50%
0.00%
8.19%
84.69%
Of which floating capital:
0.00%
1.20%
0.00%
3.14%
4.34%
Remarks
B.5IndicatewhetheranypointontheagendaoftheGeneralShareholders’Meetingsduringtheyear was not approved by the shareholders for any reason.
Yes _No   X
Items on the agenda not approved
% votes against (*)
(*)
If
the
non-approval
of
the
point
was
for
a
reason
other
than
the
votes
against,
this
will
be 
explained in the text part and “N/A” will be placed in the "% votes against" column.
B.6Indicatewhetherthearticlesofincorporationcontainanyrestrictionsrequiringaminimum number of shares to attend General Shareholders’ Meetings, or to vote remotely:
Yes _No   X
Number of shares required to attend General Meetings
Number of shares required for voting remotely
B.7Indicatewhetherithasbeenestablishedthatcertaindecisions,otherthanthoseestablishedby law,entailinganacquisition,disposalorcontributiontoanothercompanyofessentialassetsorother similarcorporatetransactionsmustbesubmittedforapprovaltotheGeneralShareholders’Meeting.
Yes _No   X
Explain the decisions that must be submitted to the General Shareholders’ Meeting, other 
than those established by law
B.8Indicatetheaddressandmannerofaccessonthecompany'swebsitetoinformationoncorporate governanceandotherinformationregardingGeneralShareholders’Meetingsthatmustbemade available to shareholders through the company website.
Thecompany’swebsiteaddressiswww.amrest.eu.Informationoncorporategovernancecanbefoundby clickingonthe“Investors”tabandsubsequentlythe“GeneralMeetingofShareholders”and“Corporate governance” subsections of the menu (among others).
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C.STRUCTURE OF THE COMPANY'S ADMINISTRATION
C.1 BOARD OF DIRECTORS
C1.1Maximumandminimumnumberofdirectorsestablishedinthearticlesofincorporationandthe number set by the general meeting:
Maximum number of directors
15
Minimum number of directors
5
Number of directors set by the general 
meeting
7
C1.2
 Complete the following table on Board members:
Name or company name of director
Represen-
tative
Category of 
director
Position on 
the board
Date first 
appointed
Date of last 
appointmen
t
Election 
procedure
Date of 
birth
José Parés Gutiérrez
Executive 
Executive Chairman
October 5, 2017
October 5, 2017
General shareholders’ meeting resolution
August 12, 1970
Luis Miguel Álvarez Pérez
Proprietary
Vice chairman
October 5, 2017
October 5, 2017
General shareholders’ meeting resolution
January 31, 1970
Carlos Fernández González
Proprietary
Member
October 5, 2017
October 5, 2017
General shareholders’ meeting resolution
September 29, 1966
Romana Sadurska
Independent
Vocal
May 14, 2019
June 10, 2020
General shareholders’ meeting resolution
July 28, 1951
Emilio Fullaondo Botella
Independent
Vocal
May 14, 2019
June 10, 2020
General shareholders’ meeting resolution
May 22, 1971
Pablo Castilla Reparaz
Independent
Member- Lead Independent Director
October 5, 2017
October 5, 2017
General shareholders’ meeting resolution
December 6, 1960
Mónica Cueva Díaz
Independent
Member
July 1, 2020
July 1, 2020
Board of Directors’ resolution
April 6, 1965
Total number of Directors
7
Indicate
any
cessations,
whether
through
resignation
or
by
resolution
of
the
general
meeting,
that
have 
taken place in the Board of Directors during the reporting period: 
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Name or 
company 
name of 
director
Category of 
the director at 
the time of 
cessation
Date of last 
appointment
Date of 
cessation
Specialised 
committees of 
which he/she 
was a member
Indicate whether 
the director left 
before the end of 
his or her term of 
office
Mustafa Ogretici
Independent
October 5, 2017
June 30, 2020
Audit Committee, Health and Safety
Committee
Yes
Reason for cessation when this occurs before the end of the term of office and other observations; information on whether the director has sent a letter to the remaining members of the board and, in the case of cessation of non-executive directors, explanation or opinion of the director dismissed by the general meeting
Resignationsubmittedpresentedbythedirectorduetohisdesiretodedicatemoretimetoother professionalprojects,whosemanagementwasincompatiblewiththeproperexerciseofhispositionsas director, member of the Audit Committee and chairman of the Health and Safety Committee.
C1.3 Complete the following tables on the members of the Board and their categories: 
EXECUTIVE DIRECTORS
Name or company name of 
director
Post in organizational chart 
of the company
Profile
José Parés Gutiérrez
Previously proprietary director. The Executive Chairman was delegated all of the powers that correspond to the Board of Directors except those that are non-delegable by virtue of the current legislation, the Bylaws and the Regulations of the Board of Directors of AmRest.
CEOofFinaccessCapitalsince2013, inchargeofportfoliomanagement andChairmanoftheBoardof RestaurantBrandsNewZealand Limited.Hespent19yearsofhis careerworkinginvariousrolesfor GrupoModeloandwasthemember oftheBoardofCrownImports (Chicago,Illinois),ViceChairmanof theBoardofMMI(Toronto,Canada), memberoftheBoardofDIFA (Mexico)andaformermemberof theMexicanBrewersAssociation (Cámara de Cerveceros de México). 
Total number of Executive Directors
1
Percentage of Board
14.29
EXTERNAL PROPRIETARY DIRECTORS
Name or company name of director
Name or company name of the significant shareholder represented by the director or that nominated the director
Profile
Luis Miguel Álvarez Pérez
Grupo Finaccess S.A.P.I. de C.V.
BoardMember,AuditCommitteeMemberand InvestmentCommitteeMemberofFinaccess,S.A.P.I. Founder,ChairmanoftheBoardandCEOofCompitalia, S.A.deC.V.MemberoftheBoardofRestaurantBrands 
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NewZealandLimited.HeldseveralrolesatGrupo Modelo.Currentlyamemberoftheboardofnumerous companies and NGOs. 
Carlos Fernández González 
Grupo Finaccess S.A.P.I. de C.V.
ChairmanoftheBoardofDirectorsofGrupoFinaccess S.A.P.I.deC.V.Heisalsocurrentlyanon-executive directorofInmobiliariaColonialSocimi,S.A.and memberoftheBoardofRestaurantBrandsNew ZealandLimited.PreviouslyheldseveralrolesatGrupo Modelo(thelastoneasChairmanoftheBoardand CEO)andhasalsoservedontheboardsofnationaland internationalcompanies(suchasindependentBoard member of Banco Santander).
Total number of proprietary directors
2
Percentage of Board
28.57
EXTERNAL INDEPENDENT DIRECTORS
Name or company name of director
Profile
Pablo Castilla Reparaz 
HasheldtherolesofDirectorofSantanderDirektBank (Germany),DirectorofBancoMercantil(Peru),Non-member SecretaryofBTTelecomunicaciones,S.A.,MemberSecretaryof SantanderInvestment,S.A.,SecretaryoftheGrupoSantander InvestmentCommittee,DirectorSecretaryatOpenBankand MemberSecretaryofGrupoVitaldent.Mr.Castillaheldthe positionofInternationalandCorporateLegalManagerof Banco Santander for more than 20 years. 
Mónica Cueva Díaz
ShehasbeenworkingwithBancoSantanderformorethan30 years,holdingvariousrolesindifferentjurisdictions,generally linkedtothefinancial,accountingandcontrolareas.Ms. MónicaCuevahasalsoledimportantintegrationprocesses such as the acquisition of ABN AMRO.
Ms.MónicaCuevahasalsobeenacollegeprofessorand lecturer,andamemberoftheEuropeanBankingAuthority representing Banco Santander.
Ms.MónicaCuevahasbeenadirectorinnumerouscompanies oftheSantanderGroupandcurrentlyholdsthepositionof director of Banco Santander Rio (Argentina).
Romana Sadurska
Shehasmorethanthirtyyearsofexperienceindifferent positionsrelatedtothelegalsector.Duringmorethanfifteen years,shewasapartnerandgeneralsecretaryoftheSpanish lawfirm,UríaMenéndez,andshealsomanagedtheofficeof theaforementionedlawfirminCentralandEasternEurope. Ms.RomanaSadurskawasamemberoftheInternational AdvisoryBoardoftheInstitutodeEmpresaBusinessSchool andtheAdvisoryBoardofUríaMenéndez.Currently,sheis ExecutiveVicePresidentoftheProfessorUríaFoundationand servesas patronoftheAspenInstituteSpain.Sheisalsoan honourably member of the Polish Academy of Gastronomy.
Emilio Fullaondo Botella
Hehasheldseniormanagementpositionsformorethan twenty-threeyearsinthebeerindustry,leadingvarious departmentsrelatedtothefinancialareaoftheMexicanbeer groupGrupoModelo,includingthepositionofChiefFinancial Officerforaperiodoffouryearsandsubsequentlyinthe BelgiancompanyABInBev,followingtheacquisitionbyGrupo 
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ModeloasChiefPeopleOfficerforMiddleAmericasuntilhis resignationinJanuary2019.Heisalsoanindependentdirector oftheRestaurantBrandscompany,whichislistedontheNew ZealandStockExchange(NZX)andtheAustralianSecurities Exchange (ASX).
Number of independent directors
4
Percentage of the Board
57.14
Indicate
whether
any
director
classified
as
independent
receives
from
the
company
or
any
company
in 
its
group
any
amount
or
benefit
other
than
remuneration
as
a
director,
or
has
or
has
had
a
business 
relationship
with
the
company
or
any
company
in
its
group
during
the
past
year,
whether
in
his
or
her 
own
name
or
as
a
significant
shareholder,
director
or
senior
executive
of
a
company
that
has
or
has
had 
such a relationship.
If
so,
include
a
reasoned
statement
by
the
Board
explaining
why
it
believes
that
the
director
in
question 
can perform his or her duties as an independent director.
Name or company name of 
director
Description 
of the relationship
Reasoned statement
OTHER EXTERNAL DIRECTORS
Identify
the
other
external
directors,
indicate
the
reasons
why
they
cannot
be
considered
either 
proprietary
or
independent,
and
detail
their
ties
with
the
company
or
its
management
or 
shareholders:
Name or company name of director
Reason
Company, manager or shareholder to which or to whom the director is related
Profile
Total number of other external directors
Percentage of the Board
Indicate any changes that have occurred during the period in each director's category:
Name or company name of director
Date of change
Previous category
Current category
José Parés Gutiérrez
30.11.2020
External Proprietary
Executive
C1.4
Complete
the
following
table
with
information
relating
to
the
number
of
female
directors 
at the close of the past four years, as well as the category of each:
Number of female directors
%
of
total
directors
for
each
category
Year n
Year n-1
Year n-2
Year n-3
Year n
Year n-1
Year n-2
Year n-3
Executive
0
0
0
N/A
0.00%
0.00%
0.00%
N/A
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Number of female directors
%
of
total
directors
for
each
category
Year n
Year n-1
Year n-2
Year n-3
Year n
Year n-1
Year n-2
Year n-3
Proprietary
0
0
0
N/A
0.00%
0.00%
0.00%
N/A
Independent
2
1
0
N/A
28.57%
14.29%
0.00%
N/A
Other external
0
0
0
N/A
0.00%
0.00%
0.00%
N/A
Total
2
1
0
N/A
28.57%
14.29%
0.00%
N/A
Remarks
InformationprovidedasfromtheCompany’srelocationtoSpaininMarch2018.BeforetheCompany didnothaveaBoardofDirectorsbutadualboardschemewithaSupervisoryBoardandaManagement Board.
C1.5
Indicate
whether
the
company
has
diversity
policies
in
relation
to
its
Board
of
Directors
on 
such
questions
as
age,
gender,
disability,
education
and
professional
experience.
Small
and 
medium-sized
enterprises,
in
accordance
with
the
definition
set
out
in
the
Spanish
Auditing
Act, 
will
have
to
report
at
least
the
policy
that
they
have
implemented
in
relation
to
gender
diversity.
Yes X
No _
Partial policies  __
If
so,
describe
these
diversity
policies,
their
objectives,
the
measures
and
the
way
in
which
they
have 
been
applied
and
their
results
over
the
year.
Also
indicate
the
specific
measures
adopted
by
the
Board 
of
Directors
and
the
nomination
and
remuneration
committee
to
achieve
a
balanced
and
diverse 
presence of directors.
If the company does not apply a diversity policy, explain the reasons why
Description of policies, objectives, measures and how they have been applied, and results achieved
DiversitymanagementatAmRestisbasedonunderstandingthedifferencesbetweenthoseworkingfor thecompanyanddevelopingpoliciesandprogrammestocreatearespectfulenvironment,makinguse ofsuchdifferencesforthegoodoftheorganisation.AmRestrecognisesdiversityinthreedifferentways: (i)basedonrace,nationality,ethicgroup,gender,age,sexualorientationanddisability;(ii)basedon eachperson’slevelofstudy,placeofresidence,familybackground,etc.;(iii)organisationalcriteriain view of work experience, category, sector, etc.
Amongtheimplementedmeasuresare:(i)thecreationofdiverseteamswithregardstogenderandage; (ii)fosteringrespectfulbehaviourwhenitcomestodiversity,whichinturnencouragespeopletoactin akindmanner;(iii)thecreationofguidelinesoncooperationwithdisabledcolleagues;(iv)encouraging ahealthywork-lifebalance;(v)activelyfightingagainstdiscriminationandharassmentattheworkplace throughtheSpeakOpenlyplatform,HRaudits,employeemeetings,etc.;(vi)thecreationofacorporate cultureunderpinnedbyfundamentalvalues;and(vii)ensuringequalitywithregardstoaccessing benefitsandemployeemeetings.Moreover,AmResthasanEthicsCodeandEthicsCommittees,ane-learningplatformwithaccesstonumerousworkplaceanti-discrimination,sexualharassmentand mobbing training courses and recruitment process for those with a disability.
ThespecificmeasuresadoptedbytheBoardofDirectorsandtheAppointmentsandRemuneration CommitteeinabidtoachieveamorebalancedanddiverseBoardarereflectedbytheDirectorSelection 
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C1.6
Describe
the
measures,
if
any,
agreed
upon
by
the
nomination
committee
to
ensure
that 
selection
procedures
do
not
contain
hidden
biases
which
impede
the
selection
of
female 
directors
and
that
the
company
deliberately
seeks
and
includes
women
who
meet
the
target 
professional
profile
among
potential
candidates,
making
it
possible
to
achieve
a
balance 
between
men
and
women.
Also
indicate
whether
these
measures
include
encouraging
the 
company to have a significant number of female senior executives:
Explanation of measures
Boardmembersareselectedandappointedbasedonthecompany’sneedsandincompliancewiththe requirementssetoutintheAmRestDirectorSelectionPolicy.TheBoardofDirectorsandAppointments Committeeseekcandidateswhobringawealthofdiverseknowledge,abilities,experienceandprofilewithin thecompany.Searchesareessentiallybasedonthenotionthatthechosencandidatesprovideexperience, know-howandprofessionalmerit,aswellasdemonstratingconductandabackgroundalignedtoAmRest’s values. Any male or female who meets these requirements can be included in the selection process. 
Inthelasttwoyears,MsRomanaSadurskaandMsMónicaCuevaDíazhavebeenappointedasdirectors. TheGroupstrivestoensurethatseniormanagementhasthenecessarydiversityofknowledge,skills, experience and gender, although there is no specific policy to this effect.  
Ifinspiteofanymeasuresadoptedtherearefewornofemaledirectorsorseniormanagers,explainthe reasons for this:
Explanation of reasons
C1.7Explaintheconclusionsofthenominationcommitteeregardingverificationofcompliancewith the policy aimed at promoting an appropriate composition of the Board of Directors.
AmRestDirectorSelectionPolicyspecificallystatesthatallpossibleeffortsshallbemadesothatwithinfive yearsfromapprovalofthepolicy(December2018),femaledirectorswouldrepresentatleast30%ofthe Boardmembers.TheCompanyshallencouragefemalestoapplyfordirectorrolesduringselectionand Boardmemberre-appointmentprocesses. Tofulfilwiththiscommitment,thefirstfemalememberof AmRestBoardofDirectors,Ms.RomanaSadurska,wasappointedinMay2019,followedbythesecond female director of the Company, Ms Mónica Cueva Díaz, appointed in July 2020.
C1.8Ifapplicable,explainthereasonsfortheappointmentofanyproprietarydirectorsattherequest of shareholders with less than a 3% equity interest:
Name or company name of shareholder
Reason
IndicatewhethertheBoardhasdeclinedanyformalrequestsforpresenceontheBoardfromshareholders whoseequityinterestisequaltoorgreaterthanthatofothersatwhoserequestproprietarydirectorshave 
Policy detailed in the following sections. 
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been appointed. If so, explain why the requests were not granted:
Yes _No   X
Name or company name of shareholder
Explanation
C.1.9Indicatethepowers,ifany,delegatedbytheBoardofDirectorstodirectorsorBoard committees:
Name or company name of director or committee
Brief description
EXECUTIVE COMMITTEE
TheExecutiveCommitteehasbeendelegatedalloftheBoard’sfaculties, asidefromthosewhichmaynotbedelegatedaccordingtothelaw,the Articles of Association and the Board of Directors Regulation.
C.1.10IdentifyanymembersoftheBoardwhoarealsodirectors,representativesofdirectorsor managers in other companies forming part of the listed company's group:
Name or company name of director
Company name of the group entity 
Position
Does the director have executive powers?
C.1.11Listanydirectorsorrepresentativesoflegal-persondirectorsofyourcompanywhoare membersoftheBoardofDirectorsorrepresentativesoflegal-persondirectorsofothercompanies listed on regulated markets other than group companies of which the company has been informed:
Name or company name of director
Company name of the listed entity
Position
Carlos Fernández González
Inmobiliaria Colonial Socimi, S.A.
Board Member
Carlos Fernández González
Restaurant Brands New Zealand Limited.
Board Member
José Parés Gutiérrez
Restaurant Brands New Zealand Limited.
Chairman of the Board
Luis Miguel Álvarez Pérez
Restaurant Brands New Zealand Limited.
Board Member
Emilio Fullaondo Botella
Restaurant Brands New Zealand Limited.
Board Member
C.1.12Indicatewhetherthecompanyhasestablishedrulesonthemaximumnumberofcompany boardsonwhichitsdirectorsmaysit,explainingifnecessaryandidentifyingwherethisisregulated, if applicable:
Yes XNo  __
Explanation of the rules and identification of the document where this is regulated
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PursuanttoArticle22oftheAmRestBoardofDirectorsRegulation,directorsshallnotformpartofmore thanfourotherlistedcompanies’boardsofdirectors.Inthisregard,allofthecompanies’boardsofdirectors belongingtothesamegroupwillbeconsideredtohaveonesinglemandateaswellasthoseholdingboard membershipsasproprietarydirectorsproposedbyacompanyofthesamegroupevenifthestockheldin the company, or the level of control, may not qualify that company to be considered as part of the group.
Exceptionally,andprovidedthereisjustcause,theCompany’sBoardmayexemptdirectorsfromthis prohibition.Inaddition,directorsshallinformtheAppointmentsandRemunerationCommitteeofany materialchangestotheirprofessionalsituationandanythatmayaffectthenatureorconditionbyvirtueof which they have been appointed as a director.
C.1.13 IndicatetheremunerationreceivedbytheBoardofDirectorsasawholeforthefollowing items:
Remuneration
accruing
in
favour
of
the
Board
of
Directors
in
the
financial 
year (thousands of euros)
363
Amount
of
pension
rights
accumulated
by
directors
currently
in
office 
(thousands of euros)
0
Amount
of
pension
rights
accumulated
by
former
directors
(thousands
of 
euros)
0
Remarks
C.1.14Identifymembersofseniormanagementwhoarenotalsoexecutivedirectorsandindicate their total remuneration accrued during the year:
Nameor company name
Position(s)
Mark Chandler 
Chief Executive Officer 
Eduardo Zamarripa
Chief Financial Officer
Olgierd Danielewicz
Chief Operations Officer
María Elena Pato-Castel Tadeo
Equity Brands President
Adam Mularuk
Equity Brands President
Oksana Staniszewska
Chief People Officer
Ismael Sanchez 
Chief People Officer
Jerzy Tymofiejew
Chief Development Officer
Peter Kaineder
Chief Strategy Officer
Ramanurup Sen
Food Services President
Robert Żuk
Chief Information Officer 
Number of women in senior management
0
Percentage of total senior management
0
Total remuneration of senior management (thousands of euros)
4,071
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Remarks
Ms.OksanaStaniszewskaleftAmRestinFebruary2020,Ms.MaríaElenaPato-CastelTadeoinSeptember2020 and Mr. Adam Mularuk in December 2020.
C.1.15 Indicate whether the Board regulations were amended during the year:
Yes  __No  X 
Description of amendment(s)
C.1.16Specifytheproceduresforselection,appointment,re-electionandremovalofdirectors.List the competent bodies, steps to follow and criteria applied in each procedure.
C.1.17ExplaintowhatextenttheannualevaluationoftheBoardhasgivenrisetosignificantchanges in its internal organisation and in the procedures applicable to its activities:
Description of amendment(s)
TheannualevaluationoftheBoardin2019hasnotresultedinmajorchangestoitsinternalorganization and on the procedures applicable to its activities in 2020.
Describe
the
evaluation
process
and
the
areas
evaluated
by
the
Board
of
Directors
with
or
without
the 
PursuanttoArticle14oftheAmRestArticlesofAssociationandArticle7oftheGeneralShareholders’ MeetingRegulation,saidshareholders’meetingshallberesponsibleforappointingandremoving directors,aswellasratifyingdirectorsappointedbyco-optation.Nevertheless,inaccordancewith Article6oftheBoardofDirectorsRegulation,theBoardisresponsibleforappointingdirectorsinthe event of vacancies, until the general shareholders’ meeting next meets.
TheAppointmentsandRemunerationCommitteeassessesthecapabilities,knowledgeandexperience requiredforaplaceontheBoard.Inthisregard,theCommitteeistaskedwithdefiningthedutiesand suitabilityofthecandidatesneededtofilleachvacancy,aswellasgaugingthespecifictimeand dedication required for them to properly perform such duties.
TheCommitteeissuesproposalstotheBoardconcerningtheappointmentofindependentmembers andthosetobeappointedbyco-optation.Saidproposals,aswellasthoserelatingtothere-appointmentandremovalofdirectors,aresubmittedforapprovaltothegeneralshareholders’ meetings.Moreover,theCommitteemustinformtheBoardoftheappointment,re-electionand removal of directors from their roles on the Board.
Theappointment,ratificationandre-appointmentproposalsissuedtothegeneralshareholders’ meetingbytheBoardmustbeprecededbythecorrespondingreportpreparedbytheAppointments andRemunerationCommitteefortheappointmentoftheremainingnon-independentmembers.Each director’sperformanceanddedicationthroughouttheirtenurewillbetakenintoconsiderationupon their re-appointment or ratification.
Boardmemberswilleachexercisetheirofficeforatermoffouryears.Theymaybere-appointedon oneorseveraloccasionsforperiodsofthesamemaximumduration.Oncethetermhasexpired,the tenurewillbeterminateduponthenextgeneralshareholders’meeting,orwhenthelegaltermfor holding such meeting to approve the accounts for the preceding fiscal year has elapsed.
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help
of
an
external
advisor,
regarding
the
functioning
and
composition
of
the
Board
and
its
committees 
and any other area or aspect that has been evaluated.
C.1.18Providedetails,foryearsinwhichtheevaluationwascarriedoutwiththehelpofanexternal advisor,ofthebusinessrelationshipsthattheexternaladvisororcompanyinitsgroupmaintains with the company or any company in its group. 
N/A
C.1.19 Indicate the cases in which directors are obliged to resign.
PursuanttoArticle25oftheArticlesofAssociationandArticle11oftheBoardofDirectorsRegulation, thedirectorsshallmaketheirpositionavailabletotheBoardandexecute,wheredeemedappropriate, therelevantresignationinthefollowingcases:(a)whentheyceasetoholdtheexecutivepositionsto whichtheirappointmentasdirectorwasassociated;(b)whentheyareinvolvedinanyofthesituations deemedtobeincompatibleorprohibitedaccordingtolaw;(c)whentheyhavecommittedaserious breachoftheirobligationsasdirector;or(d)whenremainingontheBoardmayendangerthe company’sinterests,negativelyaffecttheBoard’scredibilityorreputation,orwhenthereasonsfor whichtheywereappointeddisappear(forexample,whenproprietarydirectorstransferorreducetheir shareholding in the company).
C.1.20Arequalifiedmajoritiesotherthanthoseestablishedbylawrequiredforanyparticularkindof decision?
Yes _No   X_
If so, describe the differences.
Description of differences
C.1.21Explainwhetherthereareanyspecificrequirements,otherthanthoserelatingtodirectors,for 
Description of the evaluation process and areas evaluated
The Board evaluated its performance for the year 2020 at a meeting held in February 2021. 
TheBoardassessmentcomprisedananalysisofthefollowingelements:(i)thequalityandefficiencyofits performance;(ii)theexecutionofthechairmanandCEO’sduties;(iii)theperformanceandcompositionof thecommittees;and(iv)thediversityinthecompositionandauthorityoftheBoard,aswellasthe performance and contribution of each member.
No external advisors were engaged. 
TheconclusionswerecontainedinareportapprovedbytheBoardthat,amongotheraspects,analysedthe structureandcompositionoftheBoard,itsinternalefficiencyandperformance,anditsrelationshipwith theseniormanagementteam;theperformanceoftheBoardandcommittees’duties;andthelatest improvements and recommendations for the next year. 
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being appointed as chairman of the Board of Directors. 
Yes _No X _
Description o
f requirements
C.1.22IndicatewhetherthearticlesofincorporationorBoardregulationsestablishanylimitasto the age of directors:
Yes _No   X_
Age limit
Chairman
Managing Director/CEO
Director
C.1.23IndicatewhetherthearticlesofincorporationorBoardregulationsestablishanytermlimits forindependentdirectorsotherthanthoserequiredbylaworanyotheradditionalrequirementsthat are stricter than those provided by law:
Yes _No   X_
Additional requirements and/or maximum number of years of office
C.1.24IndicatewhetherthearticlesofincorporationorBoardregulationsestablishspecificrulesfor appointingotherdirectorsasproxytovoteinBoardmeetings,ifsotheprocedurefordoingsoand,in particular,themaximumnumberofproxiesthatadirectormayhold,aswellaswhetheranylimithas beenestablishedregardingthecategoriesofdirectortowhomvotesmaybedelegatedbeyondthe limits imposed by law. If so, briefly describe these rules.
PursuanttoArticle13oftheBoardofDirectorsRegulation,directorsshouldattendthesessionsin person.Wherethisisnotpossible,theymay,usinganywrittenmeansincludingemailandforthat sessionalone,delegatetheirrepresentationtoanotherdirector,withtheappropriateinstructions.This representationwillbenotifiedtothechairmanorsecretaryoftheBoard.Asingledirectormayhold severalrepresentations.Non-executivedirectorsmayonlydelegatetheirrepresentationtoanother non-executive director. 
C.1.25IndicatethenumberofmeetingsheldbytheBoardofDirectorsduringtheyear.Alsoindicate, ifapplicable,thenumberoftimestheBoardmetwithoutthechairmanbeingpresent.Meetings where the chairman gave specific proxy instructions are to be counted as attended.
Number of Board meetings
49
Number of Board meetings held without the chairman's presence
1
Indicatethenumberofmeetingsheldbythecoordinatingdirectorwiththeotherdirectors,wheretherewas neither attendance nor representation of any executive director:
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Number of meetings
46
Remarks
ThecoordinatingmemberoftheBoardofDirectorshasattendedallmeetings.UntilNovember30,2020, there was no executive director on the Board.
Indicate the number of meetings held by each Board committee during the year:
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Number of meetings held by the Executive Committee
8
Number of meetings held by the Audit Committee
6
Number of Meetings held by the Nomination and Remuneration Committee
10
Number of meetings held by the Nomination Committee
N/A
Number of meetings held by the Remuneration Committee
N/A
Number of meetings held
by
the Health and Safety
Committee
4
Remarks
C.1.26 IndicatethenumberofmeetingsheldbytheBoardofDirectorsduringtheyearwithmember attendance data.
Number of meetings in which at least 80% of directors were present in person
48
    Attendance in person as a % of total votes during the year
98%
Number
of
meetings
with
attendance
in
person
or
proxies
given
with
specific 
instructions, by all directors
49
Votes
cast
in
person
and
by
proxies
with
specific
instructions,
as
a
%
of
total
votes
during 
the year
100%
C.1.27IndicatewhethertheindividualandconsolidatedfinancialstatementssubmittedtotheBoard for issue are certified in advance: 
Yes _No   X_
Identify,ifapplicable,theperson(s)whocertifiedtheindividualandconsolidatedfinancialstatementsofthe company for issue by the Board:
Name
Position
C.1.28Explainthemechanisms,ifany,establishedbytheBoardofDirectorstoensurethatthe financialstatementsitpresentstotheGeneralShareholders’Meetingarepreparedinaccordance with accounting regulations.
PursuanttoArticle19oftheBoardofDirectorsRegulationandArticle5oftheAuditCommittee Regulation,theAuditCommitteeisresponsibleforthefollowing,amongotherduties:(i)toexplainthe resultsoftheauditandhowitcontributedtotheintegrityofthefinancialinformationandtheAudit Committee’sroleinthisprocess;and(ii)tooverseetheeffectivenessofthecompany’sinternalcontrol system,theinternalauditandtheriskmanagementsystem,anddiscusswiththeaccountsauditorthe significantweaknessesoftheinternalcontrolsystemrevealedinthecourseoftheaudit,while maintainingitsindependence.Forsuchpurposes,theCommitteemay,ifappropriate,submit recommendations or motions to the Board of Directors, with the relevant term for follow-up.
Moreover,Article9oftheAuditCommitteeRegulationstipulatesthattheCommitteeshallreviewthe contentoftheauditreportsand,asthecasemaybe,thelimitedreviewoftheinterimaccounts,aswell 
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C.1.29 Is the secretary of the Board also a director?
Yes _No   X_
If the secretary is not a director, please complete the following table:
Name or company name of the secretary
Representative
Eduardo Rodríguez-Rovira
C.1.30 Indicatethespecificmechanismsestablishedbythecompanytosafeguardtheindependence oftheexternalauditors,andanymechanismstosafeguardtheindependenceoffinancialanalysts, investmentbanksandratingagencies,includinghowlegalprovisionshavebeenimplementedin practice.
C.1.31Indicatewhetherthecompanychangeditsexternalauditorduringtheyear.Ifso,identifythe incoming and outgoing auditors:
Yes   _No   X
Outgoing auditor
 Incoming auditor
If there were any disagreements with the outgoing auditor, explain their content: 
asotherreportstobepreparedbytheauditorspriortotheissueoftheformer.Thiswillhelptoavoid theissueofreportswithreservations,allowingtheBoardtopresenttheaccountstothegeneral shareholders’meetinginanauditreportwithoutreservationsor,inexceptionalcircumstanceswhen suchreservationsdoexist,fortheCommitteechairandtheauditorstobeabletoexplainthecontent and scope of the reservations to shareholders in a clear manner.
PursuanttotheBoardofDirectorsRegulation,theAuditCommitteeisresponsibleforproposing motionsregardingtherecruitment,appointment,re-electionandreplacementoftheaccountsauditor totheBoardofDirectors,takingchargeoftherecruitmentprocess,aswellasthetermsandconditions oftheagreement,thescopeoftheirprofessionalmandateandtherenewalorterminationoftheir mandate.InaccordancewithArticle19oftheBoardofDirectorsRegulation,theAuditCommitteeshall alsoliaisewiththeauditortoreceiveinformationonmattersthatcouldrepresentathreattoits independence;anymatterrelatedtotheimplementationoftheauditprocess;and,whereappropriate, theauthorisationofanyservices,otherthanthoseforbiddenunderthetermsoftheapplicableaudit regulations, and other communications envisaged by these regulations. 
Inanyevent,theAuditCommitteemustreceivethefollowingfromtheaccountsauditoronanannual basis:writtenconfirmationofitsindependenceregardingtheentityorthoseentitiesthatithasdirect orindirectlinksto;informationonanyadditionalservicesrenderedofanykindandtherelevantfees receivedbytheauditororpersons,naturalorlegal,relatedtotheauditor,fromtheabovementioned entities, pursuant to the provisions of the prevailing audit regulations.
Moreover,theAuditCommitteeshallissue–annuallypriortotheissueoftheauditreport–areport expressinganopiniononwhethertheindependenceoftheaccounts’auditorhasbeenjeopardised. Suchreportmustincludeareasonedassessmentoftheprovisionofeachandeveryadditionalservice referredtointheforegoingparagraph(otherthanthelegalaudit),individuallyandasawhole,andin relation to the independence system or the audit regulations.
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Yes _No  X_
Explanation of
disagreements
C.1.32 Indicatewhethertheauditfirmperformsanynon-auditworkforthecompanyand/orits groupand,ifso,statetheamountoffeesitreceivedforsuchworkandexpressthisamountasa percentage of the total fees invoiced to the company and/or its group for audit work: 
Yes X__No __
Company
Group 
Companies
Total
Amount invoiced for non-audit 
services (thousand euros)
54.9
98.3
152.3
Amount invoiced for non-audit 
services/Amount for 
audit work (in %)
17%
13%
14%
C.1.33Indicatewhethertheauditors’reportonthefinancialstatementsfortheprecedingyear containsaqualifiedopinionorreservations.Ifso,indicatethereasonsgiventoshareholdersatthe generalmeetingbythechairmanoftheauditcommitteetoexplainthecontentandextentofthe qualified opinion or reservations. 
Yes _No   X_
Explanation of the reasons and direct link to the document made available to the shareholders at the time that the general meeting was called in relation to this matter
C.1.34 Indicatethenumberofconsecutiveyearsforwhichthecurrentauditfirmhasbeenauditing thecompany'sindividualand/orconsolidatedfinancialstatements.Also,indicatethenumberof yearsauditedbythecurrentauditfirmasapercentageofthetotalnumberofyearsinwhichthe financial statements have been audited:
Individual
Consolidated
Number of consecutive years
3
3
Individual
Consolidated
Numberofyearsauditedbythecurrentauditfirm/numberof years in which the company has been audited (in %)
100%
100%
Remarks
Thiscalculationhasbeenmadeusingdatasincethecompany’sregisteredofficehasbeenrelocatedto Spain.
KPMGPLauditedAmRestHoldingsSEwhenitwasbasedintheNetherlandsandinPoland.Inthatcase,the 
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C.1.35Indicatewhetherthereisaprocedurefordirectorstobesureofhavingtheinformation necessarytopreparethemeetingsofthegoverningbodieswithsufficienttime;providedetailsif applicable:
Yes  X_No  __
Details of the procedure
Article25oftheBoardofDirectorsRegulationsetsforththedirectors’righttocounselandinformation, insofarastheyshallhaveaccesstoallofthecompany’sservicesandmay,withthebroadestpowers,obtain anyinformationandadvicetheymayneedtoperformtheirduties.Therighttoinformationisextendedto thesubsidiaries,inSpainoroverseas,andshallbechannelledthroughthechairmanorsecretaryofthe BoardofDirectors.Saidchairmanorsecretarywillfulfilallrequestsfromdirectorsbysupplyingthe informationdirectly,puttingthedirectorsintouchwiththeappropriatepersonsortakingsuchmeasures as may be necessary for the requested examination.
DirectorsshallalsobeentitledtoproposetotheBoardofDirectors,bywayofmajority,theengagementof anylegal,accounting,technical,financial,commercialorotheradvisorsastheymayconsidernecessaryfor thecompany’sinterestsinabidtoassistthemintheperformanceoftheirfunctionswhenfacingspecific, important or complex problems relating to their duties. 
ThesecretaryoftheBoardmustnotifythecompany’sCEOoftheproposal.TheBoardofDirectorsmay withholditsapprovalifitconsiderstheengagementunnecessaryfortheperformanceofthecommissioned duties,eitherinviewofitscost(disproportionatetotheimportanceoftheproblemandthecompany’s assetsandrevenues)orifitconsidersthatthetechnicalassistancerequestedcouldbeadequatelygivenby experts and officers within the company.
C.1.36 IndicatewhetherthecompanyhasestablishedrulesobligingdirectorstoinformtheBoardof anycircumstances,whetherornotrelatedtotheiractionsinthecompanyitself,thatmightharmthe company’sstandingandreputation,tenderingtheirresignationwhereappropriate.Ifso,provide details:
Yes  X_No  __
Explain the rules
AsstatedintheArticlesofAssociationandBoardofDirectorsRegulation,amongthecasesinwhichthe directorsshallmaketheirpositionavailabletotheBoardandexecute,wheredeemedappropriate,the relevantresignation,includeswhenremainingontheBoardmayendangerthecompany’sinterests, negativelyaffecttheBoard’scredibilityorreputation,orwhenthereasonsforwhichtheywere appointeddisappear(forexample,whenproprietarydirectorstransferorreducetheirshareholdingin the company).
C.1.37Indicatewhether,apartfromsuchspecialcircumstancesasmayhavearisenandbeenduly minuted,theBoardofDirectorshasbeennotifiedorhasotherwisebecomeawareofanysituation affectingadirector,whetherornotrelatedtohisorheractionsinthecompanyitself,thatmightharm the company’s standing and reputation: 
Yes _No X
Director's name
Nature of the 
Remarks
number of years (in %) would have been 25% (individual) and 40% (consolidated).
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situation
Indicate
whether
the
Board
of
Directors
has
examined
the
case.
If
so,
explain
with
reasons
whether, 
given
the
specific
circumstances,
it
has
adopted
any
measure,
such
as
opening
an
internal
enquiry, 
requesting the director's resignation or proposing his or her dismissal. 
Indicate also whether the Board decision was backed up by a report from the nomination committee..
Yes _No_
      Decision/Action taken
Reasoned explanation
C.1.38
Detail
any
material
agreements
entered
into
by
the
company
that
come
into
force,
are 
modified
or
are
terminated
in
the
event
of
a
change
in
control
of
the
company
following
a
public
takeover
bid,
and
their
effects. 
TheChangeofControlClauseisincludedintheagreementssignedin2017concerningtheissueof Schuldscheindarlehen („SSD”) debt instrument for the total value of EUR 101 million.
C.1.39
Identify
individually
as
regards
directors,
and
in
aggregate
form
in
other
cases,
and
provide 
details
of
any
agreements
between
the
company
and
its
directors,
executives
or
employees 
containing
indemnity
or
golden
parachute
clauses
in
the
event
of
resignation
or
dismissal 
without
due
cause
or
termination
of
employment
as
a
result
of
a
takeover
bid
or
any
other
type 
of transaction. 
Number of beneficiaries
0
Type of beneficiary
Description of agreement
Executives (other than Directors) and employees
Few
selected
officers
and
employees
of
the 
Company
have
in
their
contracts,
specific
severance 
clauses,
which
provides
for
higher
severance 
payments
than
envisaged
in
applicable
general 
labour
law,
in
case
of
termination.
The
amount
of 
the
severance
is
determined
on
a
case
by
case
basis 
taking
into
account
seniority,
function
and
possible 
impact
on
the
Company’s
business
in
case
of 
withdrawal
from
office
of
such
officer.
In
any
case 
the
severance
payments
do
not
exceed
a
maximum 
of two times annual salary.
Indicate
whether,
beyond
the
cases
established
by
legislation,
these
agreements
have
to
be 
communicated
and/or
authorised
by
the
governing
bodies
of
the
company
or
its
group.
If
so,
specify
the 
procedures,
the
cases
concerned
and
the
nature
of
the
bodies
responsible
for
their
approval
or 
communication: 
Board of Directors
General Shareholders’ Meeting
Body authorising the clauses
X
YES
NO
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Are
these
clauses
notified
to
the
General
Shareholders’ 
Meeting?
X
C.2 COMMITTEES OF THE BOARD OF DIRECTORS
C.2.1
Provide
details
of
all
committees
of
the
Board
of
Directors,
their
members,
and
the 
proportion of executive, proprietary, independent and other external directors forming them:
EXECUTIVE COMMITTEE
Name
Position
Current category
José Parés Gutiérrez
Chairman
Executive
Luis Miguel Álvarez Pérez
Member
Propietary
Pablo Castilla Reparaz
Member
Independent
% of executive directors
33.33%
% of proprietary directors
33.33%
% of independent directors
33.33%
% of external directors
0.00%
Remarks
As of November 30, 2020, Mr. José Parés became an executive director.
Explainthefunctionsdelegatedorassignedtothiscommittee,otherthanthosethathavealreadybeen describedinSectionC.1.9,anddescribetherulesandproceduresforitsorganisationandfunctioning.For eachofthesefunctions,brieflydescribeitsmostimportantactionsduringtheyearandhowithasexercised inpracticeeachofthefunctionsassignedtoitbylaw,inthearticlesofincorporationorinothercorporate resolutions.
TherulesregardingtheExecutiveCommitteearefoundunderArticle18oftheBoardofDirectors Regulation.TheExecutiveCommitteeshallconsistofaminimumofthreeandamaximumoffive directors,insimilarproportionstotheirweightontheBoardofDirectors.Atleasttwo-thirdsofthe BoardmemberscurrentlyinofficemustvoteinfavourtoappointmembersoftheExecutiveCommittee. ThechairmanandsecretaryoftheBoardofDirectorsshallbethechairmanandsecretary,respectively, of the Executive Committee, and may also be assisted by the deputy secretary. 
ThememberswillstepdownfromtheExecutiveCommitteewhentheyrelinquishtheroleofdirector or whenever agreed by the Board. The Board of Directors shall promptly fill any vacancies. 
TheBoardofDirectorswillpermanentlydelegateallofitspowerstotheExecutiveCommittee,aside fromthosewhichmaynotbedelegatedaccordingtolaw,theArticlesofAssociationortheBoardof Directors Regulation. 
TheExecutiveCommitteeshallmeetasandwhencalledbythechairmanorrequestedbythemajority ofitsmembers.Thesecretaryshallrecordtheresolutionsadoptedinthemeetingminutes,acopyof whichshallbemadeavailabletotheBoardmembers.TheExecutiveCommitteeshallinformtheBoard 
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AUDIT COMMITTEE
Name
Position
Current category
Emilio Fullaondo Botella
Chairman
Independent
Pablo Castilla Reparaz 
Member
Independent
Mónica Cueva Díaz
Member
Independent
% of proprietary directors
0.00%
% of independent directors
100%
% of external directors
0.00%
Explainthefunctionsassignedtothiscommittee,includingwhereapplicablethosethatareadditionalto thoseprescribedbylaw,anddescribetherulesandproceduresforitsorganisationandfunctioning.Foreach ofthesefunctions,brieflydescribeitsmostimportantactionsduringtheyearandhowithasexercisedin practiceeachofthefunctionsassignedtoitbylaw,inthearticlesofincorporationorinothercorporate resolutions.
of Directors about the important matters and decisions adopted at its sessions. 
TherulesregardingtheAmRestAuditCommitteearefoundunderArticle19oftheBoardofDirectors RegulationandtheCommittee’sownRegulation.TheAuditCommitteewillbemadeupofaminimumof threeandamaximumoffivedirectorsandshallbechairedbywhoeveramongthemisappointedbythe BoardofDirectors,aslongastheyareanindependentdirector.AlloftheAuditCommitteememberswill beappointedbytheBoardofDirectorsandshallbenon-executivedirectors,themajorityofwhom,atleast, mustbeindependentdirectors.Atleastoneofthemmustbeappointedbasedontheirknowledgeand experienceinaccounting,auditingorboth.TheAuditCommitteemembers,asagroup,musthavethe relevant know-how regarding the industry that the entity subject to the audit belongs to. 
ThechairmanoftheAuditCommitteewillexercisetheirofficeforfouryearsandmaynotbere-appointed until at least one year after stepping down. 
Basicresponsibilities:(i)Toreport,throughitschairman,totheGeneralShareholders’Meetingon questionsraisedbytheshareholdersregardingmatterswithinitsremit,andexplaintheauditresultsand howitcontributedtotheintegrityofthefinancialinformationandtheAuditCommittee’sroleinthis process;(ii)Tooverseetheeffectivenessofthecompany’sinternalcontrolsystem,theinternalaudit,and theriskmanagementsystemanddiscusswiththeaccountsauditorthesignificantweaknessesofthe internalcontrolsystemrevealedinthecourseoftheaudit,whilemaintainingitsindependence.Forsuch purposes,theCommitteemay,ifappropriate,submitrecommendationsormotionstotheBoardof Directors,withtherelevanttermforfollow-up;(iii)Tooverseetheprocessforpreparinganddisclosing mandatoryfinancialinformationregardingthecompanyandsubmitrecommendationsormotionstothe BoardofDirectorsforthepurposesofsafeguardingtheintegrityofsuchfinancialinformation;(iv)To proposemotionsregardingtherecruitment,appointment,re-electionandreplacementoftheaccounts auditortotheBoardofDirectors,takingchargeoftherecruitmentprocess,aswellasthetermsand conditionsoftheagreement,thescopeoftheirprofessionalmandate,therenewalorterminationoftheir 
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Identifythedirectorswhoaremembersoftheauditcommitteeandhavebeenappointedtakingintoaccount theirknowledgeandexperienceinaccountingorauditmatters,orboth,andstatethedateonwhichthe Chairperson of this committee was appointed.
Name of directors with experience
Emilio Fullaondo Botella / Pablo Castilla Reparaz / 
Mónica Cueva Díaz
Date of appointment of the chairperson
14 May 2019
APPOINTMENTS AND REMUNERATION COMMITTEE
mandateandwhereappropriate,regularlygatherinformationabouttheauditplananditsimplementation, whilepreservingitsindependenceintheperformanceofitsduties;(v)Toliaisewiththeauditortoreceive informationonmattersthatcouldrepresentathreattoitsindependence;anymatterrelatedtothe implementationoftheauditprocess;and,whereappropriate,theauthorisationofanyservices,otherthan thoseforbiddenunderthetermsoftheapplicableauditregulations,andothercommunicationsenvisaged bytheseregulations;(vi)Toissue–annuallypriortotheissueoftheauditreport–areportexpressingan opiniononwhethertheindependenceoftheaccountsauditorhasbeenjeopardised.Suchreportmust includeareasonedassessmentoftheprovisionofeachandeveryadditionalservicereferredtointhe foregoingparagraph(otherthanthelegalaudit),individuallyandasawhole,andinrelationtothe independencesystemortheauditregulations;(vii)Toadvisethecompany’sBoardofDirectors,inadvance, ofallofthetopicscoveredbylaw,theArticlesofAssociationandthisRegulation,andnamely,of:(a)The financialinformationthatthecompanymustdiscloseonaregularbasis;(ii)Thecreationoracquisitionof interestsinspecialpurposevehiclesorentitiesresidentincountriesorterritoriesconsideredtobetax havens; and (iii) Any transactions with related parties.
TheAuditCommittee’sannualreportfor2020–availabletoshareholdersontheAmRestwebsite–details thekeyactivitiesperformedbytheCommitteeduringsuchperiod,summarisedasfollows:(i)reviewofthe company'sindividualandconsolidatedannualaccountsforthe2019fiscalyearpriortothembeingput togetherbytheBoardofDirectors;(ii)withregardtoexternalauditing,theCommitteemonitoredthe actionsandservicesprovidedbyKPMG,theirreasonablenessandjustification,andthequalityofthe contractedservices;(iii)withregardtointernalauditing,theAuditandControlCommitteepromoteda projecttoreviewandupdatetheCompany'sriskmap,inadditiontoperformthedutiesrelatingtothe internalauditingoftheCompanyasassignedtheretoundertheBoardofDirectorsRegulationandAudit CommitteeRegulation.Theprojectisofgreatimportanceconsideringthegrowingconcernonthepartof theregulatorsregardingtheinternalcontrolandriskmanagementsystemsoflistedcompanies,butits launchhasbeenforcedtobedelayeduntilthesecondhalfoftheyearduetothetimeandeffortsrequired fromtheAuditCommitteetomanagetheeffectsoftheCOVID-19pandemic.However,thecurrentsituation highlightsimportantissuesrelatedtotheGroup'srisksandthetimingofthelaunchisthereforeconsidered tobethemostappropriate;(iv)in2020,theAuditCommitteeoversawcompliancewiththeInternal SecuritiesMarketConductRegulation,theBoardofDirectorsRegulationand,ingeneral,theCompany's rulesoncorporategovernance;(v)hascontinuedtoworkonimprovingconsolidationandreporting systemsforbettercontrolofinformationandmoreefficientpreparationtoenhancetheperformanceof operations;(vi)reviewofthenotificationsreceivedfromtheSpanishStockMarketRegulator(CNMV);and (vii)analysedandtooknoteofthecompany'streasurystockbalanceandthetransactionsexecutedusing its own shares on a quarterly basis.
Name
Position
Current category
Pablo Castilla Reparaz 
Chairman
Independent
Luis Miguel Álvarez Pérez
Member
Propietary
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% of proprietary directors
25.00%
% of independent directors
75.00%
% of external directors
0.00%
Explainthefunctionsassignedtothiscommittee,includingwhereapplicablethosethatareadditionalto thoseprescribedbylaw,anddescribetherulesandproceduresforitsorganisationandfunctioning.Foreach ofthesefunctions,brieflydescribeitsmostimportantactionsduringtheyearandhowithasexercisedin practiceeachofthefunctionsassignedtoitbylaw,inthearticlesofincorporationorinothercorporate resolutions.
Romana Sadurska
Member
Independent
Emilio Fullaondo Botella
Member
Independent
TherulesregardingtheAppointmentsandRemunerationCommittee(ARC)arefoundunderArticle20 oftheBoardofDirectorsRegulation.TheARCshallbemadeupofnolessthanthreeandnomorethan five non-executive directors, at least two of which must be independent directors. 
TheBoardofDirectorsshallendeavourtoensurethatthemembers,andinparticularthechairman,of theARChavetheappropriateknowledge,qualificationsandexpertisetoperformthedutiesentrusted to them. The ARC shall appoint the chairman from among its members. 
Basicresponsibilities:(i)Toassessthequalifications,knowledgeandexperiencerequiredfortheBoard ofDirectors.Forsuchpurposes,todefinethefunctionsandqualificationsrequiredfromcandidates whomustfilleachvacancyandevaluatetheexactamountoftimeanddedicationrequiredforthemto effectivelyperformtheirduties;(ii)Submitproposalsonindependentdirectorstobeappointedbyco-optationtotheBoardofDirectorstobesubjecttodecisionattheGeneralShareholders’Meeting,as wellastheproposalsforthere-appointmentorremovalofsaiddirectors;(iii)Toissueareport regardingproposalstoappointtheremainingdirectorsfortheirappointmentbyco-optationortobe submittedtotheGeneralShareholders’Meeting,aswellastheproposalsfortheirre-appointmentor removal;(iv)ToinformtheBoardofDirectorsabouttheappointment,re-electionandremovalof internalpositionsonthecompany’sBoardofDirectors;(v)Toissueareportregardingthemotionsto appointandremoveseniorexecutives(including,forthesepurposes,thebrandandareamanagers) andthebasictermsoftheircontracts;(vi)ToinformtheBoardaboutgenderdiversitymattersand, particularly,toensurethattheselectionproceduresfordirectorsandseniorexecutivesdonotimplicitly biasfemalecandidates;(vii)ToproposetotheBoardofDirectors:(a)theremunerationspolicyforthe directorsandgeneralmanagersorforthosewhohaveseniormanagementfunctionsandreport directlytotheBoardofDirectors,committeesortheCEOs;(b)theindividualremunerationforexecutive directorsandotherconditionsoftheircontracts,ensuringthattheyarefollowed;and(c)thebasic conditionsofseniorexecutivecontracts;(viii)Toanalyse,poseandperiodicallyreviewtheremuneration policyappliedtoseniorexecutivesandthemanagementteam,includingtheremunerationpackages withsharesandtheirapplication,andensurethatitisproportionatetothatpaidtotheotherdirectors andmembersofthemanagementteamandtootherpersonnelofthecompany;(ix)Toensure compliancewiththeremunerationpolicyestablishedbythecompany;(x)Toreviewandarrangeforthe successionofthechairmanoftheBoardofDirectorsandthecompany’sCEOand,whereappropriate, toproposemotionstotheBoardofDirectorsforsuchsuccessiontotakeplaceinanorderlyandwell-plannedmanner;(xi)Toinformtheshareholdersabouttheexerciseofitsfunctions,attendingthe GeneralShareholders’Meetingforthispurpose;and(xii)ToassisttheBoardinthepreparationofthe reportontheremunerationpolicyandsubmittotheBoardanyotherremunerationreportsforeseen inthisRegulation,verifyingtheinformationaboutthedirectorsandseniorexecutives’remuneration established in different corporate documents, including the annual report on directors’ remuneration.
TheARCshallmeeteachtimethechairmandeemsitnecessary.Thechairmanwillcallameeting wheneverareportisissuedorproposalsneedtobeadoptedand,inanycase,wheneveritissuitable 
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HEALTH AND SAFETY COMMITTEE
Name
Post
Category
Romana Sadurska
Chairman
Independent
Mónica Cueva Díaz
Member
Independent 
Pablo Castilla Reparaz
Member
Independent
% of proprietary directors
0.00%
% of independent directors
100.00%
% of external directors
0.00%
Explainthefunctionsassignedtothiscommitteeanddescribetherulesandproceduresforitsorganisation andfunctioning.Foreachofthesefunctions,brieflydescribeitsmostimportantactionsduringtheyearand howithasexercisedinpracticeeachofthefunctionsassignedtoitbylaw,inthearticlesofincorporationor in other corporate resolutions.
for the successful performance of its functions.
TheHealthandSafetyCommitteemustbemadeupofaminimumofthreeandamaximumoffive directors,allofthemnon-executiveand,atleasttwoofthem,mustbeindependentdirectors.The Chairmanmustbeanindependentdirector.TheHealthandSafetyCommitteeshallbevalidlyformedwhen themajorityofitsmembersattended,beingpresentorrepresentedbyproxy.Theagreementsshallbe adopted by a majority of concurrent members, present or represented by proxy.
ThecompetenciesoftheHealthandSafetyCommitteeare:(i)toreview,tosuperviseandtosuggesttothe BoardofDirectorstheframeworkandpoliciesoftheHealthandSafetyRiskManagementoftheCompany; (ii)toevaluateandtoadvisetheBoardofDirectorsonthevariousstrategiestoachievetheHealthand SafetygoalsoftheCompany;(iii)toreviewandtosuggesttotheBoardofDirectors,thehealthandsafety performancegoalsandtoevaluatetheperformanceinrelationtothosegoals;(iv)tomonitorthe compliancebytheCompanywithboth,theHealthandSafetypoliciesandtheapplicableHealthandsafety laws;(v)toensurethatthesystemsusedtoidentifyandtomanagetheHealthandSafetyrisksofthe Companyareadequatefortheintendedpurposesandareappliedeffectively,periodicallyreviewedand continuallyimproved;(vi)theCommitteeshouldensurethattheBoardofDirectorsiskeptinformedand updatedonissuesrelatedtoHealthandSafetyrisks;(vii)toensurethattheCompanyiseffectively structuredtomanageandtopreventrisksrelatedtoHealthandSafety,whichincludeshavingtrained employees,adequatecommunicationproceedingsandenoughdocumentation;(viii)toexamineandto advisetheBoardofDirectorsonthesuitabilityoftheresourcesavailablefortheHealthandSafety managementsystemsandprogrammesoftheCompany;and(ix)tomonitorandtosuperviseallincidents ormattersrelatedtoHealthandSafety,aswellasthemeasurestakenbytheBoardofDirectorstoavoid their repetitions.
TheCommitteewasfoundedinJuly2019andithaditsfirstmeetinginDecember2019. Atthatmeeting theworkplanfor2020wasapprovedtoundertakethetasksentrusted,theexecutionofwhichhasstarted 
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C.2.2Completethefollowingtablewithinformationregardingthenumberoffemaledirectorswho were members of Board committees at the close of the past four years:
Number of female directors
Year n
Number %
Year n-1
Number %
Year n-2
Number %
Year n-3
Number %
Executive committee
0.00% 
0.00% 
0.00%
N/A
Audit committee
33.33%
0.00%
0.00%
N/A
Nomination
and 
remuneration 
committee
25.00%
25.00%
0.00%
N/A
Nomination 
committee
N/A
N/A
N/A
N/A
Remuneration 
committee
N/A
N/A
N/A
N/A
HealthandSafety 
committee
66.67% 
0.00% 
N/A
N/A
C.2.3Indicate,whereapplicable,theexistenceofanyregulationsgoverningBoardcommittees,where theseregulationsaretobefound,andanyamendmentsmadetothemduringtheyear.Alsoindicate whether any annual reports on the activities of each committee have been voluntarily prepared.
TherulesregardingthecommitteesaresetoutintheArticlesofAssociationandtheBoardofDirectors Regulation,bothofwhichareavailableonthecompany’swebsiteatwww.amrest.eu.Moreover,the 
AuditCommitteehasitsowninternalregulation.Thecompanyhaspreparedperformancereportson eachoftheAuditandRemunerationcommittees,whichshallalsobeavailabletoshareholdersonthe website.
D.RELATED-PARTY AND INTRAGROUP TRANSACTIONS
D.1
Describe,
if
applicable,
the
procedure
and
competent
bodies
for
the
approval
of
related
party 
and intragroup transactions. 
to carry out during the 2020 fiscal year.
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PursuanttoArticle19oftheBoardofDirectorsRegulationandArticle5oftheAuditCommittee Regulation,theAuditCommitteeisresponsibleforadvisingtheBoardoftransactionswithrelated parties.Fortheapprovalofsuchtransactions,anydirectorsorrelatedindividualswithadirector indirectconflictofinterestmustrefrainfromparticipatinginthediscussionandvoteonthe correspondingresolutionsordecisions.Anyresolutionsordecisionswhichaffecttheseindividualsin theirroleasdirector,suchastheirappointmentorremovalfromtheBoardandsimilarconcepts,are excluded from the aforementioned obligation.  
D.2
Describe
any
transactions
that
are
significant,
either
because
of
the
amount
involved
or
the 
subject
matter,
entered
into
between
the
company
or
entities
within
its
group
and
the 
company’s significant shareholders
: 
Name of 
significant 
s
h
a
r
e
h
o
l
d
e
r
Name of the 
company or 
entity within its 
group
Nature of the 
relationship
Type of 
transaction
Amount 
(thousand of 
euros)
D.3
Describe
any
transactions
that
are
significant,
either
because
of
their
amount
or
the
subject 
matter,
entered
into
between
the
company
or
entities
within
its
group
and
directors
or 
managers of the company:
Name or 
company name 
of director(s) or 
manager(s)
Name or 
company name 
of the company 
or entity within 
its group
Relationship
Nature of the 
transaction
Amount 
(thousand of 
euros)
D.4
Report
any
material
transactions
carried
out
by
the
company
with
other
entities
belonging 
to
the
same
group,
provided
that
these
are
not
eliminated
in
the
consolidation
process
and
do 
not
form
part
of
the
company’s
ordinary
business
activities
in
terms
of
their
purpose
and 
conditions.
In
any
case,
report
any
intragroup
transaction
conducted
with
entities
established
in
countries
or 
territories considered as tax havens: 
Company name of the entity within the group
Brief description 
of the transaction
Amount 
(thousand of euros)
Remarks
D.5
Report
any
material
transactions
carried
out
by
the
company
or
entities
belonging
to
its 
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group with other related parties that have not been reported in the previous sections.
Company name of the entity within the group
Brief description 
of the transaction
Amount 
(thousand of euros)
D.6
List
the
mechanisms
in
place
to
detect,
determine
and
resolve
potential
conflicts
of
interest 
between
the
company
and/or
its
group
and
its
directors,
senior
management
or
significant 
shareholders
Thedirectorshalltakethenecessarymeasurestoavoidincurringsituationsinwhichhisorherownor other interests may conflict with the corporate interest and their duties towards the company.
Article24oftheBoardofDirectorsRegulationstipulatesthatdirectorsmustinformtheBoardofanydirect orindirectconflictswhichtheyorrelatedindividualsmayhavewiththecompany’sinterests.Inthisregard, directors’relatedpartiesshallbeunderstoodasthefollowing:a)Thedirector’sspouseorpersonswitha similarrelationship;b)Thedirectorortheirspouse’sparents,childrenandsiblings;c)Thespousesofthe director’sparents,childrenandsiblings;d)Companieswithwhichthedirector,directlyorbyproxy,is affiliatedinanyofthemannersdescribedunderarticle42,paragraphoneoftheSpanishCommercialCode. Whendirectorsarelegalentities,theirrelatedpartiesshallbeunderstoodasthefollowingpersons:a) Partnersorshareholderswhoareaffiliatedwithsuchentityinanyofthemannersdescribedinarticle42, paragraphoneoftheCommercialCode;b)Dejureordefactodirectors,liquidatorsandattorneyswith generalpowersofattorneyinthecompany’slegalentitydirector;c)Companiesformingpartofthesame groupandtheirpartnersorshareholders;d)Personswho,pursuanttotheprovisionsofthepreceding paragraph, qualify as affiliates in respect of the above legal entity’s representative.
AssetforthinsaidRegulationwithregardtothedutyofloyalty,directorsareobligedtorefrainfrom participatinginthediscussionandvoteonresolutionsordecisionswithwhichtheyorarelated individualhaveadirectorindirectconflictofinterest.Anyresolutionsordecisionswhichaffectthese individualsintheirroleasdirector,suchastheirappointmentorremovalfromtheBoardandsimilar concepts, are excluded from the aforementioned obligation.  
Article24oftheBoardofDirectorsRegulationobligesthedirectorstorefrainfrom:(a)Carryingout transactionswiththecompany,exceptwhentheyarepartofthecompany’sordinarybusiness,are carriedoutundernormalmarketconditionsandareoflittlesignificance,withthesebeingunderstood tobethoseinvolvinginformationthatisnotrequiredtoexpressatrueimageofthecompany’s property,financialsituationandresults;(b)Usingthecompany’snameoradducingtheirstandingas directortohaveundueinfluencewhencarryingoutprivatetransactions;(c)Makinguseofthecorporate assets,includingthecompany’sconfidentialinformation,forprivatemeans;(d)Takingadvantageofthe company’sbusinessopportunities;(e)Obtainingadvantagesorremunerationfromthirdpartiesother thanthecompanyoritsgroup,associatedtothedischargeoftheirduties,otherthanminormattersof merecourtesy;(f)Carryingoutactivitiesontheirown,oranother’s,behalfwhichentaileffective competition,whethercurrentlyorpotentially,orwhich,inanyotherway,placestheminpermanent conflict with the company’s interests.
Additionally,theCompanysettheProcedureforConflictsofInterestandRelated-PartyTransactions withSeniorOfficers(the“Procedure”)ofAmRestHoldings,SE,establishingtherulesthatmustbe followedinthosesituationsinwhichthereisadirectorindirectconflictofinterestbetweentheinterest oftheCompanyoranyofthecompaniesbelongingtothegroupofwhichtheCompanyisthecontrolling entity,withinthemeaningestablishedbylawandtheinterestofsaidpersonsorofotherpersonsthat theAuditandControlCommitteedecidestomakesubjecttotheconflictofinterestrulesorthepersons relatedthereto,aswellasintransactionsthatsaidpersonsengageinwiththecompaniesoftheGroup. TheCodeofBusinessConduct(uploadedontheGroup’scorporatewebsite(www.amrest.eu)also 
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governs this matter under section 2.3. 
GlobalInternalAuditandInternalControlDepartmentreviewsduringitsassignmentsanyrisksrelated topotentialorexistingconflictsofinterest. Incaseofidentifyingsuchrisks,thisDepartmentprovides recommendations,requestsforactionplansandlatermonitors&verifiestheirimplementation.This Departmentreports,includingrisks,recommendations,actionplansandstatusofactionplans monitoring&verification,arecommunicatedtotheAuditandControlCommitteeandtheTop Management.
D.7
Indicate
whether
the
company
is
controlled
by
another
entity
in
the
meaning
of
Article
42
of 
the
Commercial
Code,
whether
listed
or
not,
and
whether
it
has,
directly
or
through
any
of
its 
subsidiaries,
business
relationships
with
said
entity
or
any
of
its
subsidiaries
(other
than
the 
listed company) or carries out activities related to those of any of them
Yes  X_   No  _
La Sociedad está controlada por el Grupo Finaccess.
Indicate
whether
the
respective
areas
of
activity
and
any
business
relationships
between
the
listed 
company
or
its
subsidiaries
and
the
parent
company
or
its
subsidiaries
have
been
defined
publicly
and 
precisely:
Yes  _No _X_
Report
the
respective
areas
of
activity
and
any
business
relationships
between
the
listed 
company
or
its
subsidiaries
and
the
parent
company
or
its
subsidiaries,
and
identify 
where these aspects have been publicly reported
Theyhavenotbeenreportedastherearenobusinessrelationshipsbetweentheparentcompanyorits group and the Company or any of its subsidiaries and no activities related to those of any of them.
Identify
the
mechanisms
in
place
to
resolve
potential
conflicts
of
interest
between
the
parent
of
the 
listed company and the other group companies:
Mechanisms for resolving possible conflicts of interest
Nospecificmechanismshavebeenestablishedotherthanthosealreadyexistingintheapplicable regulationsinrelationtoresolvingpossibleconflictsofinterestbetweentheparentofthelistedcompany and the other group companies.
E.RISK MANGEMENT AND CONTROL SYSTEMS
E.1
Explain
the
scope
of
the
company's
Risk
Management
and
Control
System,
including
tax
risk.
AmRest has set up a Risk Management Policy that applies to all AmRest Group.
AmRestManagementisaccountablefordailyidentifying,analyzing,evaluating,monitoringandaddressing the risks in areas of their responsibilities. 
GlobalInternalAuditandInternalControlFunctionsupportsAmRestManagementbyrealizingplanned 
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audit assignments according to the Annual Audit Plan and performing ad-hoc audit assignments. 
TheManagementisresponsibleforpreparingactionplansaddressingidentifiedbytheGlobalInternal AuditandInternalControlDepartmentrisksandopportunities.TheGlobalInternalAuditandInternal ControlDepartmentregularlymonitors,verifiesandreportstotheAuditandControlCommitteeandTop Management, the status of action plans implementation declared by the Management. 
InternalAuditDepartmentwasupdatingAmRestRiskMaponaregularbasistillendof2019.Theobjectives of the AmRest Risk Map project were to:
■
collect comprehensive and structured information about risks at AmRest Group (identification);
■
perform risk prioritization of the identified risks (assessment);
■
have an updated and integrated risk map for AmRest Group. 
TheRiskMapwascommunicatedtotheAmRestManagementforreviewandundertakingofadequate actionplansaddressingidentifiedrisks.TheRiskMapreportwascommunicatedtotheAuditandControl Committee for overseeing.
Atthebeginningof2020,GlobalSecurityfunction,reportingtoCEO,wascreated.Oneoffunctiongoalsis toimproveriskmanagementatAmRest.TheglobalAmRestriskmanagementprojectproposalwas presentedandapprovedbytheAuditandControlCommitteeandtheBoardofDirectors.NewAmRest risk management approach assumes:
■
top down and bottom up perspective in risks inventory, reporting and management;
■
designofcorporateEnterpriseRiskManagement,whichwillcaptureinputsfromcountryrisk inventories;
■
countrydeploymentplanbasedonriskscoringprocessinordertoprioritizethehighestcountry risk exposure.
TheGrouphassetupaswellaGlobalAmRestTaxPolicythatestablishestherulesandproceduresonthis matter and are supervised by the Tax Department and, ultimately, by the Audit and Control Committee. 
E.2
Identify
the
bodies
within
the
company
responsible
for
preparing
and
executing
the
Risk 
Management and Control System, including tax risk.
TheAmRestRiskManagementPolicydescribesriskgovernancestructureinAmRestGroup,whichincludes:
■
Board of Directors – provides oversight and review of risk management.
■
Audit and Control Committee - oversees regular review of risk management activities.
■
Top Management (CEO, CFO, COO, CPO, CIO, etc.) - promotes risk management culture.
■
Management–isresponsiblefordesigningandexecutionofriskstrategyandcontrolmechanisms whichdecreasenegativeimpactand/orprobabilityofrisks. Ensuresemployeescomplywiththe riskmanagementpolicyandsupportaculturewhereriskscanbeidentified,addressedand escalated.
■
GlobalInternalAuditandInternalControlDepartment-analysesandevaluatesriskmanagement, internalcontrolsandcorporategovernanceandprovidesrecommendationssupportingrisk reduction.
■
 Employees and Co-workers - Comply with risk management policies and procedures. 
Atthebeginningof2020,GlobalSecurityfunction,reportingtoCEO,wascreated.Oneoffunction responsibilitiesistomanagerisksatAmRestandimprovecompliancewithinternalandexternal regulations.
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Accordingtothe“RegulationsAuditandControlCommitteeoftheBoardofDirectorsofAmRestHolding SE”,theAuditandControlCommitteeoverseesamongotherstheeffectivenessoftheCompany’sinternal controlsystem,theinternalaudit,andtheriskmanagement.Forsuchpurposes,theCommitteemay,if appropriate,submitrecommendationsormotionstotheBoardofDirectors,withtherelevanttermfor follow-up.
Thefinanceteam,ledbytheChiefFinancialOfficer,isresponsiblefortheGroup’staxpolicyandforthe implementationofitstaxstrategy.Taxstrategyisreviewedonanongoingbasisaspartoftheregular financialplanningcycle.TheAuditCommitteeisresponsibleformonitoringallsignificanttaxmatters.Audit CommitteemeetingsareusuallyattendedbyanumberofGroupofficersandemployeesincludingpeople from the tax, internal audit and financial reporting areas, including the Chief Financial Officer.
E.3
Indicate
the
main
risks,
including
tax
risks,
and
those
deriving
from
corruption
(with
the 
scope
of
these
risks
as
set
out
in
Royal
Decree
Law
18/2017),
to
the
extent
that
these
are 
significant, which may affect the achievement of business objectives
The AmRest group is subject to various risks in the different markets in which it does business.  
1.Liquidity risk
 TheGroupisexposedtotheliquidityriskduetothebreachofcovenantsandreclassificationoflong-termdebttoshort-termwhichcanbethereforedueinthenext12months,however,priorto2020year endAmResthasobtainedfromitsfinancingbanksandmajorityofbondholders(Schuldschein)waivers tothecompliancewithcertaincovenantsrelatedtotheGroup’sleverageandinterestcoverageratiosfor the fourth quarter of 2020 and the first, second and third quarters of 2021. 
TheGroupactivelymanagesliquidityresourcesanddoesitsbesttoimprovethebusiness.Strengthening oftheGroup’spositionintermsofliquidityandmitigationofadverseimpactsofCOVID-19outbreakis takenonseveralareas.TheGroupmaintainsclosecommunicationwithitsfinancingbanks.InMarch 2020GrouphasdrawnentirefacilityavailableunderrevolvingTrancheDofsyndicatedbankloan, increasingamountdrawnfromEUR37.3millionintheendof2019to98.9millionintheendof1Q2020. AdditionallyinApril2020SpanishandFrenchsubsidiariesofAmRestHoldings,SEappliedforstate supportedbankloans,guaranteedbythegovernmentsin70%and90%,respectively.TheGroupwas grantedtotalEUR75million.Additionally,theGroupseesrecoveryinitscorebusinessasthenumberof open restaurants have increased and the revenues trends have been recovering.
AmResthasestablishedinternaltaskforcesineverymarkettomonitorthesituationalsoaroundcost savinginitiativesandalsoabigpartofcapitalexpenditureshavebeenputunderreview.TheGroupwas andiscloselymonitoringavailableprogramthatareofferedonvariousmarkets.Thegovernment supportprogramsincludeforexampledirectsubsidiestopayrollcosts,taxexemptions,socialsecurity contributionsreductions.AdditionallyentitiesfromtheGroupwereabletoapplyforextendeddeadlines for payments of various taxes.
TheGroupanalyzesliquidityneedswithparticularfocusonmaturityofdebtandproactivelyinvestigates various forms of financing that could be utilized if needed.
2.Risk related to coronavirus and its implication for the economy and society. 
 TheCOVID-19pandemichasrapidlyspreadaroundtheworld.Mostgovernmentsaretakingconstrain 
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measurestocontainthespread,whichincludeisolation,confinement,quarantineandrestrictionstofree movementofpeopleandclosureofpublicandprivatefacilities.Thissituationisaffectingsignificantly the global economy, including HORECA sector, as well as AmRest Group.
VisibleresultsoftheCOVID-19outbreakincludethedecreaseindemand,thedisruptionorslowdownof supplychainsandasignificantincreaseineconomicuncertainty,increaseofvolatilityinthepriceof assets,exchangeratesandadecreaseinlongterminterestrates.PossibleresultsoftheCOVID-19 outbreak may include changes in the market environment, peoples behaviors and ways of living.
TheCOVID-19pandemichasaparticularlynegativeimpactontherestaurantssectors.Thebanor significantlimitationsinoperationofrestaurantsresultedinadecreaseinbusinessactivityandcustomer demand and consequently decrease of revenues.
Groupmanagementiscloselymonitoringthedevelopmentofsituationandlooksforthewaysof mitigatingtheimpactofCOVID-19spreadontheGroup.Inaddition,theGroupimplementedadditional measures to mitigate the risk of infection among its employees, including in particular:
■
ProvidingdetailedinstructionsandguidelinesonmonitoringthehealthoftheGroup’semployeesand the health of Group’s customers.
■
Strengtheningalreadystringenthygiene,cleaningandsanitationproceduresandintroducing contactless options that protect both employees and guests in restaurants.
■
Providing the restaurant employees with additional personal protection and hygiene supplies.
■
Requestingtoreducethenumberofmeetingsaswellasdomesticandforeignbusinesstravel,andto useteleconferencingandvideo-conferencingfacilitiestothelargestextentpossible,aswellenabling remote work. 
3.Rental agreements and continuation options
 AlmostallAmRestrestaurantsoperateinrentedfacilities.Themajorityoftherentalcontractsarelong-termandtheyareusuallyconcludedforatleast10yearsfromthedateofcommencingtherental (assumingthatallcontinuationoptionsareexercised,onspecifiedterms,andnotincludingcontracts whicharesubjecttoperiodicrenewal,unlesstheyareterminated,andcontractsconcludedforan indefiniteperiod).AnumberofrentalcontractsgrantAmResttherighttoprolongthecontractprovided thattheCompanycomplieswiththetermsofrental.Regardlessofwhetherthetermsarecompliedwith ornot,thereisnoguaranteethatAmRestwillbeabletoprolongarentalcontractontermssatisfactory fromthebusinesspointofview.Ifthisisnotpossibleapotentiallossofimportantrestaurantlocations may have an unfavorable effect on AmRest’s operating results and its business activities.
Asaconsequenceofthepandemicandlackofbusinessactivityorrelativelyloweractivityincertain locations,theGroupperformedreviewofitsrentalagreementsandhasenteredintonegotiationswith landlords.Oneoftheoutcomesmaybethatsomelocationswouldneedtobeclosedduetoworsened economicsandlackofmutualagreementbetweentheparties.Terminatingtherelevantrentalcontract oncosteffectivetermsmayproveimpossible.Thissituationmayalsohaveanadverseeffectonthe businessactivitiesandoperatingresultsoftheGroup.Additionally,closinganyofthefranchised restaurantsissubjecttotheapprovalbythefranchisoranditisnotcertainthatsuchapprovalwillbe obtained.
InthecaseofRussianandChineserestaurantsacquiredbyAmRestaccordinglyinJuly2007and December2012,theaveragetermoftherentalcontractsisrelativelyshortercomparedtoAmRest restaurants in the remaining countries. This results from the specific nature of these markets.
4.Dependency on the franchisor
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AmRestmanagesKFC,PizzaHut,BurgerKingandStarbucks(inRomania,Bulgaria,GermanyandSlovakia) asafranchisee,andthereforeanumberoffactorsanddecisionsrelatedtothebusinessactivities conductedbyAmRestdependonthelimitationsorspecificationsimposedbythefranchisorsorontheir consent.
ThedurationofthefranchisingagreementsrelatedtotheKFC,PizzaHutandBurgerKingbrandsis10 years.AmResthastheoptionofextendingthisperiodforthenext10yearsprovidedthatitmeetsthe conditionsspecifiedinthefranchisingagreementsandotherrequirements,includingthepaymentofthe related continuation fee. 
Despitemeetingtheabove-mentionedterms,thereisnoguaranteethataftertheexpiryoftheseperiods agivenfranchisingagreementwillbeprolongedtothenextperiod.InthecaseofKFCandPizzaHut restaurants,thefirstperiodcommencedin2000.AmRestandYumareconstantlyintouchwithrespectto currentandfurthercooperation.InthecaseofBurgerKing,thefirstperiodcommencedin2007withthe opening of the first restaurant of this brand.
FranchiseagreementsforStarbucksstoresinRomaniaarevalidtill2023,inBulgariauntil2027andin Germany and Slovakia until 2031.
5.Dependency on cooperation with minority shareholders
AmRestopensStarbucksrestaurantsinPoland,theCzechRepublicandHungarybasedonapartnership agreementswithStarbucksCoffeeInternational,Inc.ThepartnershipassumesStarbucksCoffee International,Inc.istheminorityshareholderofcompaniesoperatingStarbucksstoresinmentioned countries.Therefore,somedecisionsaspartofthejointbusinessactivitiesaredependentonthepartners’ consent.
TheagreementswithStarbuckswereconcludedforaperiodof15yearswithapossibilityoftheirextension forthenext5yearsuponmeetingthespecifiedconditions.IfAmRestfailstocomplywiththeobligationto openandruntheminimumspecifiednumberofcafés,StarbucksCoffeeInternational,Inc.shallhavethe righttoincreaseitsshareinthesecompaniesbyacquiringsharesfromAmRestSp.zo.o.atapriceagreed between the parties based on the valuation of the companies.
6.No exclusivity rights
ThefranchisingagreementsconcerningrunningofKFC,PizzaHutDine-In(excludingRussiaandGermany) andBurgerKing(excludingCzechRepublicandSlovakia)restaurantsdonotcontainprovisionsongranting AmRestanyexclusivityrightsonagiventerritory,protectionoranyotherrightsontheterritory,inthe areaoronthemarketsurroundingAmRestrestaurants.However,inpractice,duetothescaleofAmRest’s operations(includingawell-developeddistributionnetwork),thepossibilitythatacompetitiveoperator (tothebrandscurrentlyoperatedbytheGroup)shouldappearwhowouldbeabletoeffectivelycompete with the AmRest Group restaurants is relatively limited.
InthecaseofStarbucksrestaurants,AmRestsubsidiariesaretheonlyentitiesauthorizedtodevelopand runStarbuckscafésinPoland,theCzechRepublicandHungary,withoutexclusivityrightstosome institutionallocations.TheexclusiverightsapplyalsotorestaurantsoperatedinRomania,Bulgaria, Germany and Slovakia.
7.Risk related to the consumption of food products 
 Consumer preferences may change in connection with:
■
doubts arising as to the healthful properties of main ingredients,  
■
unfavorableinformationbeingcirculatedbythemassmediaconcerningthequalityoftheproducts, 
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diseases caused by them and damages to health, 
■
revealingunfavorabledatapreparedbythegovernmentoragivenmarketsectorconcerningthe productsservedinAmRestrestaurantsandrestaurantsofotherfranchiseesandcoffeestores,health-relatedissuesandissuesrelatedtothefunctioningpatternsofoneormorerestaurantsrunbothby AmRest and the competition.
Theabove-mentionedriskislimitedbyusingthehighestqualityingredientsinAmRestrestaurants,which comefromreliableandreputablesuppliers,compliancewithstrictqualitycontrolandhygienestandards and the use of top modern equipment and processes which ensure the absolute safety of the meals.
8.Risk related to keeping key personnel in the Group 
TheIssuer’ssuccessdependstosomeextentontheindividualeffortofselectedemployeesandkey membersofmanagement.Themethodsofremuneratingandmanaginghumanresourcesdevelopedby theIssuerhelpensurealowrotationofthekeypersonnel.Additionally,thecareerplanningsystem supportspreparingsuccessorsreadytoexecutetasksinkeypositions.TheIssuerbelievesitwillbeable toreplaceitskeypersonnel.Regardlessofthat,theirlossmayhaveashort-termadverseeffectonthe business activities and operating results of the Issuer.
9.Risk related to labour costs of restaurant employees and employing and keeping professional staff
 RunningcateringactivitiesonsuchalargescaleastheIssuerdoesrequiresemployingalargenumberof professionals.Excessiveoutflowofemployeesandtoofrequentchangesinmanagerialpositionsmaypose asignificantrisktothestabilityandqualityofthebusinessactivities.Duetothefactthatsalariesinthe cateringsectorarestillrelativelylowerthaninotherbranches,thereisariskofoutflowofqualifiedstaff andthusariskoftheGroupbeingabletoensuretheappropriatestaffnecessaryforprovidingthehighest qualitycateringservices.Inordertoavoidtheriskoflosingqualifiedstaffitmaybenecessarytogradually increasethesalaryrates,whichmayhaveanadverseeffectonthefinancialstandingoftheIssuer. Additional risk in employment area may be caused by fluctuations in unemployment rate. 
10.Risk related to limited access to foodstuffs and the variability of their cost
 TheIssuer’ssituationisalsoaffectedbytheneedtoensurefrequentdeliveriesoffreshagricultural productsandfoodstuffsandanticipatingandrespondingtochangesinsuppliescosts.TheGroupcannot ruleouttheriskrelatedtodeliverydeficitsorinterruptionscausedbyfactorssuchasunfavorableweather conditions,changesinlegalregulationsorwithdrawingsomefoodstuffsfromtrading.Alsotheincreased demandforcertainproductsaccompaniedbylimitedsupplymayleadtodifficultiesinobtainingthemby theGrouportopriceincreasesforthoseproducts.Boththedeficitsandproductpriceincreasesmayhave anadverseeffectontheGroup‘sresults,operationsandfinancialstanding.Inordertomitigatethisrisk (amongothers)AmRestSp.zo.o.concludedacontractwithSCMSp.zo.o.fortheprovisionsofservices comprisingintermediationandnegotiatingtermsofdeliverytorestaurants,includingnegotiatingtermsof distribution agreements.
11.Risk related to developing new brands.
 AmResthasoperatedBacoa,SushiShopandallthevirtualbrandsforarelativelyshorttime.Astheseare newconceptsforAmRest,thereisariskrelatedtodemandfortheproductsofferedandtheiracceptance by customers.
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12.Risk related to opening restaurants in new countries 
Openingortakingoverrestaurantsoperatinginanewgeographicalandpoliticalareainvolvestheriskof varyingconsumerpreferences,ariskofinsufficientknowledgeofthemarket,theriskoflegalrestrictions arising from local regulations and the political risk of these countries.
13.Currency risk 
TheresultsofAmRestareexposedtocurrencyriskrelatedtotransactionsandtranslationsintocurrencies otherthanthecurrencyinwhichbusinesstransactionsaremeasuredintheindividualCapitalGroup companies.TheGroupadjustsitscurrencyportfolioofdebttothegeographicalstructureofitsprofileof activities. Additionally, AmRest uses forward contracts to secure transaction risks on a short term basis.
14.Risk related to the current geopolitical situation
 TheCompanyconductsitsbusinessincountrieswherepoliticalsituationisuncertain.Tensionsaround thatsubjectmayresultinanegativeimpactoneconomy,includinginstablecurrency,interestrates, liquidity,supplychaindisruptionsandconsumerconfidencedeterioration.Alltheseeventsand uncertaintythataccompaniesthemmayhaveasignificantimpactontheGroup’soperationsandfinancial position,theeffectofwhichisdifficulttopredict.Thefutureeconomicandregulatorysituationmaydiffer fromtheManagement’sexpectationshoweveritisbeingmonitoredinordertoadjuststrategicintentions and operational decisions, which will minimize business risks. 
15.Risk of increased financial costs
 TheIssueranditssubsidiariesareexposedtoacertainextenttoadverseimpactofinterestrate fluctuationsinconnectionwithobtainingfinancingwhichbearsfloatinginterestratesandinvestingin assetsbearingfloatinginterestrates.Theinterestratesofbankloansandborrowingsandissuedbonds arebasedonacombinationoffixedandfloatingreferencerateswhichareupdatedoverperiodsshorter thanoneyear.Additionally,theIssueranditssubsidiariesmay,aspartoftheinterestratehedging strategy,enterintoderivativeandotherfinancialcontractsthevaluationofwhichissignificantlyaffected by the level of reference rates.
16.Tax risk
 Intheprocessofmanagingandmakingstrategicdecisions,whichcanaffectthetaxsettlements,AmRest isexposedtotaxrisk.Allirregularitiesoccurringintaxsettlementsincreaseoftheriskofdisputeinthe caseofapotentialtaxcontrol.Aspartoftheserisks’minimization,AmResttakescareofdeepeningthe knowledgeofitsemployeesintheareaoftaxriskmanagementandcompliancewithrespectivelegal requirements.TheCompanyimplementsadequateprocedurestofacilitatetheidentificationand subsequent reduction or elimination of risks in the area of tax settlements.
Moreover,inconnectionwithfrequentlegislativechanges,inconsistencyofregulations,aswellas differencesininterpretationoflegalregulations,AmRestusesprofessionaltaxadvisoryservicesand applies for binding interpretations of the tax law provisions.
AsregardstaxrisksitshouldbenotedthatAmRestispresentinmanycountrieswherethetaxlegislation isoftencomplexandsubjecttointerpretation,whichmaycreaterisksanduncertaintyabouttaxposition adopted.WhereuncertaintyexistsandinothercasesidentifiedbyAmResttaxteam,wheretaxexposure isdeemedsignificant,weseekclarificationfromexternalexpertsand/ortaxauthorities.Taxriskisalso generallyattributabletouncertaintyabouttheinterpretationoftaxlawinrelationtoparticular transactionsandthebusiness’sviewaboutwhetherataxadministrationcouldhaveadifferentviewtoits own or the view of its advisors.
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17.Credit risk
Exposuretocreditriskincludecashandcashequivalentsandtradeandotherreceivables.Withthe developmentoffranchisebusiness,AmRestisgettingexposedmoretocreditrisk.Therefore,thequality of franchisees portfolio is key priority.
18.Risk of economic slowdowns 
EconomicslowdowninthecountrieswhereAmRestrunsitsrestaurantsmayaffectthelevelof consumptionexpenditureonthesemarkets,whichinturnmayaffecttheresultsoftheAmRestrestaurants operating on these markets.
19.Risk related to seasonality of sales
 TheseasonalityofsalesandinventoriesofAmRestisnotsignificant,whichistypicalfortherestaurant industry.OntheEuropeanmarketrestaurantsrecordlowersalesinthefirsthalfoftheyear,mainlydue to the lower number of sale days in February and the relatively less frequent visits to restaurants.
20.Riskofcomputersystembreakdownsandtemporarybreaksinservingcustomersinnetwork restaurants
 Apotentialpartialorcompletelossofdatainconnectionwithcomputersystembreakdownsordamage orlossofkeytangiblefixedassetsoftheGroupmightresultintemporaryinterruptionsinserving customersinrestaurants,whichmighthaveanadverseeffectontheGroup’sfinancialresults.Inorderto minimizethisrisk,theIssuerhasimplementedappropriateproceduresinordertoensurethestabilityand reliability of IT systems.
21.Cyberattack risk
 Group’soperationsaresupportedbywidevarietyofITsystems,includingpoint-of-salesystems,electronic orderingplatforms,supply-chainmanagementsystemsandfinanceandcontrollingtools. Consequently, theGroupisexposedtotheriskoftemporaryoperationaldisruption,dataintegrityriskand/or unauthorizedaccesstoconfidentialdata,whichmaybearesultofbothintentionalcyberattackoran unintentionalevent.Inordertomitigatetheserisks,theGroupestablishedspecializedIT-securityunitand implementedappropriatecybersecurityriskmitigationtools,includingsecuritypolices,personneltraining and technical prevention countermeasures.
22.Risk related to the exit of the UK from European Union 
 Itis difficulttopredicthowtheexitoftheUnitedKingdomfromtheEuropeanUnionmayaffectthe financialmarkets.DespitethefactthatAmRestrunsonlyfewrestaurantsintheUK,theriskofadverse effectsofBrexitoneconomyofdifferentUEcountries(wheretheCompanyoperatesitsbusiness)cannot be entirely excluded.
23.Factors remaining outside the Group’s control
ThisriskisrelatedtotheeffectoffactorsremainingoutsidetheGroup’scontrolonAmRest’sdevelopment strategywhichisbasedonopeningnewrestaurants.Suchfactorsinclude:opportunitiesforfindingand securingavailableandappropriatelocationsforrestaurants,theabilitytoobtainthepermitsrequiredby relevant bodies, the possibility of delays in opening new restaurants.
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E.4 
Indicate whether the entity has risk tolerance levels, including for tax risk.
InternalAuditDepartmentwasupdating AmRestRiskMaponaregularbasistillendof2019.The objectives of the AmRest Risk Map project were to:
■
collect comprehensive and structured information about risks at AmRest Group (identification);
■
perform risk prioritization of the identified risks (assessment);
■
have an updated and integrated risk map for AmRest Group. 
TheRiskMapwascommunicatedtotheAmRestManagementforreviewandundertakingofadequate actionplansaddressingidentifiedrisks.TheRiskMapreportwascommunicatedtotheAuditandControl Committee for overseeing.
The AmRest Risk structure included a 3-level risk classification system:
■
The first level (main categories of risks) was divided into 4 areas:
- Strategic,
- Operational,
- Financial,
- Compliance.
■
The second level contained specific risks.
The risks were  evaluated by using the consistent parameters: vulnerability, impact and probability.
Riskscouldbeclassifiedtooneoftheareas:HighImpact,CumulativeImpact,OverControlledorMitigated.
InternalAuditidentifiedhighriskareasanddefined,togetherwiththeAuditandControlCommittee,audit frequency.  
Atthebeginningof2020,GlobalSecurityfunction,reportingtoCEO,wascreated.Oneoffunctiongoalsis toimproveriskmanagementatAmRest.TheglobalAmRestriskmanagementprojectproposalwas presentedandapprovedbytheAuditandControlCommitteeandtheBoardofDirectors.NewAmRest risk management approach assumes:
■
top down and bottom up perspective in risks inventory, reporting and management;
■
designofcorporateEnterpriseRiskManagement,whichwillcaptureinputsfromcountryrisk inventories;
■
countrydeploymentplanbasedonriskscoringprocessinordertoprioritizethehighestcountry risk exposure.
E.5 
Indicate which risks, including tax risks, have materialised during the year.
Liquidity risk
 TheGroupwasexposedtotheliquidityriskduetothebreachofcovenantsandreclassificationoflong-termdebttoshort-termwhichcouldbethereforedueinthenext12months.TheGroupmaintainsclose communicationwithitsfinancingbanksandbondholders.AmResthasobtainedrespectivelyfromits financingbanksanditsbondholders waiverstothecompliancewithcertaincovenantsrelatedtothe Group’sleverageandinterestcoverageratiosforthefourthquarterof2020andthefirst,secondandthird quartersof2021.Duringsaidperiods,thosecovenantsshallbereplacedbyacommitmenttomaintaina minimum level of liquidity.
Risk related to coronavirus and its implication for the economy and society. 
TheCOVID-19pandemichadaparticularlynegativeimpactontherestaurantssectors.Thebanor significantlimitationsinoperationofrestaurantsresultedinadecreaseinbusinessactivityandcustomer 
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demand and consequently decrease of revenues.
SomeotherrisksrelatedtotheactivityoftheCompanyhavematerializedduringtheyear.Noneofthese riskshadarelevantimpactontheAmRestbusinesssincethemeasuresfortheirpreventionand/or mitigation worked properly.
E.6
Explain
the
response
and
oversight
plans
for
the
company's
main
risks,
including
tax
risks,
as 
well
as
the
procedures
followed
by
the
company
in
order
to
ensure
that
the
Board
of
Directors 
responds to any new challenges that arise.
InordertoaddressandsupervisetheGroup’sriskmanagementandcontrol(includingfiscalrisks),model is based on a series of tools/processes described in section E.1 and E.2 of this report.
GlobalInternalAuditandInternalControlDepartmentsupportsAmRestManagementinrisks identificationandprovidesrecommendationsinareaofriskmanagement,collectsactionplansfromthe Management, which address risks, and monitors and verifies their implementation. 
TherearethecommitteesoperatingatAmRestinordertorespondandsuperviseentity’smainrisks, including:
1.Committees composed of the members of the Board of Directors:
■
Audit & Control Committee;
■
Health and Safety Committee;
■
Appointments and Remuneration Committee;
■
Executive Committee;
2.Other committees:
■
Information Security Committee;
■
Ethics Committee;
■
Crisis Management Committee;
■
GDPR Committee;
■
Sustainability Committee.
To reduce unnecessary tax risk AmRest introduced the following rules:
1) applies the Tax Policy which includes good practices in respect of taxes,
2)ensuresthatthecompanyhastheaccountingandcontrolmechanismsneededtohandledaytodaytax and reporting requirements,
3) ensures that tax is properly considered as part of corporate decision making processes,
4)considerstheprobabilityofadifferentapproachoftaxauthoritytotheapplicationofthetaxlawand acting in a manner which mitigates such risk.
F.INTERNALRISKMANAGEMENTANDCONTROLSYSTEMS RELATINGTOTHEPROCESSOFPUBLISHINGFINANCIAL INFORMATION (ICFR)
Describe
the
mechanisms
forming
your
company's
Internal
Control
over
Financial
Reporting
(ICFR) 
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system.
F.1 
THE ENTITY'S CONTROL ENVIRONMENT
Report on at least the following, describing their principal features:
F.1.1
The
bodies
and/or
departments
that
are
responsible
for:
(i)
the
existence
and
maintenance 
of an adequate and effective ICFR system; (ii) its implementation; and (iii) its supervision.
TheBoardofDirectorsisultimatelyresponsiblefortheinternalcontrolandriskmanagementsystems.In thissense,inaccordancewitharticle19.4.b)oftheRegulationsoftheBoardofDirectors,thisfunctionis entrusted to the Audit and Control Committee. In particular, the audit committee shall: 
■
overseetheeffectivenessoftheCompany’sinternalcontrolsystem,theinternalaudit,andtherisk managementsystemanddiscusswiththeaccountingauditorthesignificantweaknessesofthe internal control system revealed in the course of the audit, while maintaining its independence; 
■
overseetheprocessforpreparinganddisclosingmandatoryfinancialinformationregardingthe CompanyandsubmitrecommendationsormotionstotheBoardofDirectorsforthepurposesof safeguarding the integrity of such financial information. 
RegulationsonAuditandControlCommitteeadopted,developandsupplementtheprovisionsofthe StatusandRegulationsoftheBoardofDirectors.Withregardtotheprocessofpreparingeconomicand financial information, Audit and Control Committee shall: 
■
overseetheprocessofpreparationandsubmissionandtheclarityandintegrityoftheregulated financialinformationrelatingtotheCompanyanditsGroup,ensuringthatthehalf-yearlyfinancial reportsandthequarterlymanagementstatementsaredraftedinaccordancewiththesame accountingstandardsastheannualfinancialreportsandtooverseethereviewoftheinterim financialstatementsrequestedfromtheauditor,withthescopeandfrequencythatmaybe defined, as the case may be 
■
reviewcompliancewithlegalrequirements,theproperdelimitationofthescopeofconsolidation, andthecorrectapplicationofsuchgenerallyacceptedaccountingprinciplesandinternational financial reporting standards as may be applicable 
■
submitrecommendationsormotionstotheBoardofDirectorsforthepurposesofsafeguarding the integrity of the financial information 
■
advicetheBoardofDirectorsonanysignificantchangeofaccountingstandardandofthe significant risks on the balance sheet and off-balance sheet;
TheFinanceDepartmentpreparesthefinancialinformationandsubmitsitforapprovaloftheAudit CommitteeandtheBoard,andkeepsthedailyinteractionandcommunicationwiththeGroup’sexternal auditor.
Additionally,theInternalAuditingDepartmentoftheGroup,withregardtoitsfunctionofsupportingthe AuditingCommitteewhensupervisingtheefficiencyoftheInternalControlSystemandcompanyRisk Management,includesinitsauditplanperiodicrevisionsoftheinternal,financialandoperationalcontrols; theresultsoftheserevisionsaresummarizedintheauditreportsindicatingthedeficienciesdetectedand the action plans proposed by the Group Management to remedy them.
The Company has also adopted the Regulatory Compliance Policy implementing: 
■
Set of operating principles associated with the main compliance areas affecting organization;
■
Setofmechanismsandprocedurestoprevent,identifyandresolvesituationsinwhichunethical, unlawful practice or regulatory breaches occur in the course of our activities. 
Lastly,thecodeofbusinessconductsetsoutthemainethicalprinciplesandregulationsonbehaviorforall Group employees.
F.1.2
Indicate
whether
the
following
exist,
especially
in
relation
to
the
drawing
up
of
financial 
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information:
■
Departments
and/or
mechanisms
in
charge
of:
(i)
the
design
and
review
of
the 
organisational
structure;
(ii)
clear
definition
of
lines
of
responsibility
and
authority
with 
an
appropriate
distribution
of
tasks
and
functions;
and
(iii)
ensuring
that
adequate 
procedures exist for their proper dissemination throughout the entity.
■
Code
of
conduct,
the
body
approving
this,
degree
of
dissemination
and
instruction, 
principles
and
values
covered
(stating
whether
there
is
specific
mention
of
record
keeping 
and
preparation
of
financial
information),
body
charged
with
analysing
breaches
and 
proposing corrective actions and sanctions.
■
Whistleblower
channel
allowing
notifications
to
the
audit
committee
of
irregularities
of 
a
financial
and
accounting
nature,
in
addition
to
potential
breaches
of
the
code
of 
conduct
and
unlawful
activities
undertaken
in
the
organisation,
indicating
whether
this 
channel
is
confidential
and
whether
anonymous
notifications
can
be
made,
protecting 
TheGroup,throughthecorporateorganisationdivisionandtheorganisationalunitsforeachcountry, defines,implementsandmaintainstheorganisationalstructures,setofjobpositionsalignedwiththesize andcomplexityoftheunitsandstrategyoftheGroup,addressingappropriatedistributionofworkand segregation of duties. 
GlobalInternalAuditandInternalControlDepartmentreviewsduringitsassignmentsanyrisksrelatedto responsibilitiesandreportinglines,distributionofworkandduties. Incaseofidentifyingsuchrisks,this Departmentprovidesrecommendations,requestsforactionplansandlatermonitorsandverifiestheir implementation.Auditreports,includingrisks,recommendations,actionplansandstatusofactionplans implementation are communicated to the Audit and Control Committee and to the Top Management. 
Internal Audit functionally reports to the Audit and Control Committee. 
Withrespecttotheprocessofpreparingfinancialinformationgrouphassetinplace,severalpolicies, instructionandmanuals(likeGroupReportingandAccountingManual,GroupChartsofAccounts,Financial Calendar,CorporateFiscalPolicy,FinanceandInvestmentPolicy,RegulatoryCompliancePolicy,Risk ManagementPolicy)determiningresponsibilitiesandauthorities.Preparationoffinancialinformation concernsplanning,thedistributionoftasksandfunctions,specifictimeline,variousreviewstobe performedatseverallevelsanddisseminationthereof.Tothisend,theGrouphasfinancialaccountingand controlfunctionsineachofitsoperatingmarkets;whichareheadedupbyacontrollerresponsiblefor implementingandintegratingatthelocallevelofglobalpoliciesdefinedbyGroupensuringtheunified reporting standards across all the Group.
AccordingtotheCodeofConduct,theEthicsCommitteeaddressesissuesrelatedtocompliancewiththe CodeofBusinessConduct,includingresolutionsofabreachorasuspectedbreachoftheCodeby Employees and Co-workers of AmRest Group.
TheCommitteeoperatesandrunsitsmeetingsincompliancewiththeCodeofConduct.TheCommittee membersareappointedanddismissedbytheBoardofDirectorsattherequestoftheHRDepartment Directorofthelargest(intermsofemployment)companyincorporatedinAmRestHoldingsSEorofthe Chairperson of the Committee.
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the rights of the whistleblower and the person reported.
TilltheendofQ12020therewaswhistleblowingsystemoperatingatAmRestwhichisbeingreplacedby newone.Currently,thenewwhistleblowingsystemstilldoesnotfunctionatAmRestin:Hungary,Germany, Russia, China and France. According to the plan, it should be fully implemented by the end of Q1 2021.
■
Training
and
periodic
refresher
programmes
for
personnel
involved
in
the
preparation 
and
revision
of
financial
information,
as
well
as
in
the
assessment
of
the
ICFR
system, 
covering at least accounting standards, auditing, internal control and risk management.
With regard to employee training in financial and control issues, AmRest provides through its: 
■
AmRest College,
■
AmRest University,
■
Other  internal and external trainings.
Financialreportingpersonnelattendtechnicalsessionsrunbyexternalconsultancyfirmsandcovering developmentsinaccounting.Likewise,theGroupreliesontheexternaladviceofexpertsinspecificareas related to the financial reporting. 
AmRestsupportsalsofinancialreportingpersonnelingettingprofessionalandinternationallyrecognized certificateslikeACCAorCIMA.AmRestsupportsInternalAuditorsingettingprofessionaland internationally recognized certificates like CIA, CISA and others. 
F.2 
ASSESSMENT OF RISKS IN FINANCIAL REPORTING
Report on at least the
following:
F.2.1
The
main
characteristics
of
the
risk
identification
process,
including
risks
of
error
and
fraud, 
as regards:
■
Whether the process exists and is documented.
AmRestGroup'sriskidentificationandassessmentisaninternalprocess,definedbyRiskManagement Policy adopted by the Company and cascaded to all subsidiaries within the Group. 
Per this policy, process carried out by: 
-the Board of Directors and Audit Committee (oversight and review of risk management), 
-Top Management (promoting risk management culture), 
-Management - Responsible for designing and executing of risk strategy and control mechanisms 
-InternalAuditandInternalControlDepartment(evaluatingriskmanagement,internalcontrolsand corporate governance and providing recommendations)
-Employees and Co-workers (complying with risk management policies and procedures)
SectionE.4ofthisreportindicatestheriskclassificationsystem,whichtakesintoaccountallclassesofrisk. Its scope is greater than the risks directly related to the preparation of the Group’s financial information. 
InrelationtoreportingoffinancialinformationtheGroupadditionallyensurestheexistenceofspecific controlscoveringthepotentialriskoferrororfraudintheissuanceofthefinancialinformation,i.e., potential errors in terms of: 
the existence of the assets, liabilities and transactions as of the corresponding date and reporting period; 
proper and timely recognition and correct measurement of its assets, liabilities and transactions; and 
the correct application of the accounting rules and standards and adequate disclosures.
ThesecontrolsareapplieddynamicallyandupdatedcontinuallytoreflecttherealityoftheGroup’s business as it evolves.
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■
Whether
the
process
covers
all
the
objectives
of
financial
reporting,
(existence
and 
occurrence;
completeness;
valuation;
presentation;
disclosure
and
comparability;
and 
rights and obligations), whether it is updated and if so how often.
Identificationofrisksiscarriedoutforeachprocessidentifiedasrelevantbasedontheobjectivesofthe financialreporting:existenceandoccurrence,completeness,valuation,presentation,breakdownand comparability, and rights and obligations. 
■
The
existence
of
a
process
for
identifying
the
scope
of
consolidation,
taking
into
account, 
among
other
factors,
the
possible
existence
of
complex
corporate
structures
or
special 
purpose vehicles.
Intheprocessofidentifyingtheconsolidationscope,theGroupController(HeadofGroupAccounting Department),regularlyupdatestheconsolidationscope,verifyingallchanges(additionsandremovals)in theGroupstructure.AnychangeswithinthescopeofconsolidationaresubjecttoAuditandControl Committee approval. 
■
Whether
the
process
takes
into
account
the
effects
of
other
types
of
risk
(operational, 
technological,
financial,
legal,
tax,
reputational,
environmental,
etc.)
to
the
extent
that 
they affect the financial statements.
Theprocessofidentifyingrisksleadingtoerrorsinthefinancialreportingtakesintoaccountalsoqualitative factors,togetherwithothertypesofrisk(likeoperational,financial,strategic,regardingregulatory compliance) as they ultimately affect the financial statements.
■
The governing body within the company that supervises the process.
The Board through the Audit and Control Committee supervises this process. 
F.3 
CONTROL
ACTIVITIES
Report
on
whether
the
company
has
at
least
the
following,
describing
their
main 
characteristics:
F.3.1
Review
and
authorisation
procedures
for
financial
information
and
a
description
of
the
ICFR, 
to
be
disclosed
to
the
securities
markets,
indicating
those
responsible,
as
well
as
documentation 
describing
the
flow
of
activity
and
controls
(including
those
relating
to
the
risk
of
fraud)
of
the 
various
types
of
transactions
which
may
materially
affect
the
financial
statements,
including 
accounting
closing
procedures
and
the
specific
review
of
significant
judgements,
estimates, 
valuations and projections.
AsindicatedinF.1.1sectionofthisreport,theBoardofDirectorsreliesontheAuditandControlCommittee tosupervisetheprocessofpreparingandpresentingtherequiredfinancialinformationrelatingtothe CompanyandtheGroup,includingrelatednonfinancialinformation,aswellasitsintegrity,reviewingthe AuditCommitteeinthefirstplacecompliancewithregulatoryrequirements,theproperdeterminationof the scope of consolidation and the correct application of accounting standards. 
TheAuditandControlCommitteealsohasthedutytoreporttotheboard,inadvanceoftheadoptionby itofthecorrespondingdecisions,regardingthefinancialinformationthattheGroupmustperiodically makepublic,ensuringthatsuchinformationispreparedinaccordancewiththesameprinciplesand practices used to prepare the financial statements and is as reliable as such statements. 
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EachquartertheGroupAccountingDepartmentsubmitstheperiodicconsolidatedfinancialinformation totheAuditandControlCommittee,highlightingthemainassumptionsandaccountingcriteriaapplied and clarifying any significant events which occurred during the reporting period.
Likewise,theAmRestGrouphasinplacedocumentedfinancialprocesses,whichimpliescommoncriteria forpreparingfinancialinformationforallsubsidiarieswithintheGroup. TheGroupAccounting Departmentissuesmandatoryinstructionssettingoutthecalendarandcontentsforthefinancialreporting period for the preparation of the consolidated financial statements.
TheGroupAccountingDepartmentalsofollowsdocumentedproceduresforpreparingconsolidated financial information (provided in section F.4.2). 
TheGroupAccountingDepartmentreviewsthekeyjudgments,estimates,valuationsandforecaststo identifycriticalaccountingpoliciesthatrequiretheuseofestimatesandvaluejudgments.Themost relevantaredealtwithbytheAuditandControlCommittee.Seniormanagementdefinestheformatfor presenting the financial statements prior to approval by the Board.
Themostsignificantaspectsoftheaccountingcloseprocessandthereviewofthematerialjudgements, estimates, measurements and projections used are as follows:
-impairment losses on certain assets,
-the useful life of the tangible and intangible assets,
-the measurement of goodwill arising on consolidation,
-leases.
TheBoardofDirectorsisresponsibleforapprovingthefinancialinformationthattheGroup, being a listed company, is obliged to publish.
F.3.2
Internal
IT
control
policies
and
procedures
(access
security,
control
of
changes,
system 
operation,
operational
continuity
and
segregation
of
duties,
among
others)
which
support 
significant
processes
within
the
company
relating
to
the
preparation
and
publication
of
financial 
information.
TheGroup’sITsystemsaredirectlyorindirectlyrelatedtothefinancialreportingandfinancialstatements assuch.Theyareconfiguredtoensurethecorrectpreparationandpublicationoffinancialinformationat alltimesbymeansofaspecificinternalcontrolprocedures.TheGrouphasinternalpoliciesand procedures,whicharedulyupdatedanddistributed,relatingtosystemssecurityandaccesstotheIT applicationsandsystemsbasedonrolesandinaccordancewiththedutiesandclearancesensuringproper separationofpowers.TheGroup’sinternalpoliciesestablishthataccesstoallsystemsstoringor processingdatashallbestrictlycontrolled,andthatthelevelofaccesscontrolrequiredisdeterminedby potentialimpactonthebusiness.AccessrightsareassignedbyGroupexpertsinthisarea,byrolesand functions.Inaddition,toensurecompliance,theuserandprofilemaintenancecontrolandreview processesinwhichresponsiblepersonnelineachareaareinvolvedensurethatinformationisonly available to persons who need it for their work.
PerGroup’smethodology,anynewsoftwaredevelopmentsandanyupdatesofexistingITsolutionsgo through3phases,i.e.design,development,andtestbeforefinalimplementationtotheproductive environment, which guarantees that financial information is handled reliably. 
TheGrouphavetakennecessarystepstoensureon-goingperformanceofkeyfunctionsintheeventof disastersorothereventsthatcouldhaltorinterruptbusinessoperations.Thesestepsconstitutespecific initiativesmitigatingthescaleandseverityofITincidentsandensuringthatoperationsareupandrunning 
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againasquicklyandwithaslittledamageaspossible.TheGrouphashighlyautomatedback-upsystems toensurethecontinuityofthemostcriticalsystems.Inaddition,therearespecificriskmitigationstrategies inplace,suchascloudandvirtualdataprocessingcentres,back-uppowersuppliersandoffsitestorage facilities.
F.3.3.
Internal
control
policies
and
procedures
for
overseeing
the
management
of
activities 
subcontracted
to
third
parties,
as
well
as
of
those
aspects
of
assessment,
calculation
or
valuation 
entrusted to independent experts, which may materially affect financial statements.
AmRestGroupdoesnotusuallyoutsourcetothirdparties’activitiesthathavetheimpactonthefinancial reportingprocess.Incaseaprocessoritspartisoutsourcedtoanindependentparty,thesamesetof policiesandproceduresapplicableforinternalreportingpurposes,isputinplacefortheexternal contractor,toensurecoverageoftherisksassociatedwithsuchoutsourcing.TheGroupputsinplace servicelevelagreementsensuringtheintegrityandqualityofinformationprovidedbyexternal contractors. The Group mostly assesses its estimates in
house.Wheneveritisadvisabletohireathird-partycontractor,itdoessohavingverifiedtheirexpertise and independence, and validated their methods and the reasonableness of the assumptions made. 
F.4 
INFORMATION AND
COMMUNICATION
Report
on
whether
the
company
has
at
least
the
following,
describing
their
main
characteristics:
F.
4.1
A
specifically
assigned
function
for
defining
and
updating
accounting
policies
(accounting 
policy
area
or
department)
and
resolving
doubts
or
conflicts
arising
from
their
interpretation, 
maintaining
a
free
flow
of
information
to
those
responsible
for
operations
in
the
organisation,
as 
well
as
an
up-to-date
accounting
policy
manual
distributed
to
the
business
units
through
which 
the company operates.
F.4.2
Mechanisms
for
capturing
and
preparing
financial
information
in
standardised
formats
for 
application
and
use
by
all
units
of
the
entity
or
group,
and
support
its
main
financial
statements 
and notes, as well as disclosures concerning ICFR.
The Group’s reporting structure supplies different kinds of services, including:
■
General IT systems
■
Management systems providing information for business monitoring and control purposes.
■
Business systems encompassing the operation (sales) related systems
■
Structuralsystemsprovidingthedatasharedandusedbyalltheapplicationsandservices.These 
GroupAccountingdepartmentisresponsiblefordefining,updatinganddisseminatingtheaccounting policiesoftheAmRestGroup.Accordingly,ithasaGroupReportingandAccountingManualadaptedtothe needsoftheGroup.TheseaccountingpoliciesaredevelopedbasedontheInternationalFinancial Reporting Standards adopted by the European Union (IFRS).
TheGroupReportingandAccountingManualisdisseminatedthroughoutallthepersonnelinvolvedinthe financial reporting process. 
AnysignificantchangesaffectingGroupReportingandAccountingManual,arecommunicatedtothe organizationtogetherwiththeupdatedManual.GroupAccountingdepartmentconsistofhighqualified personnelandresolvesqueriesorconflictsderivingfromtheinterpretationoftheaccountingstandards and/or policies. 
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systems include all those related to the accounting and financial information.
Thesameaccountingsystemhasbeenalreadyimplementedalreadyinmainsubsidiaries;theGroup’s thoughisstillinprogressofimplementingitinremainingsubsidiaries.Groupisintheprocessof integration of subsidiaries and business acquired recently. 
Likewise,Grouphasaconsolidationsystemthatenablesstandardizedinformationtobeobtainedabout the Group’s companies for the consolidation purposes. 
Asstatedabove,thereisaGroupAccountingandReportingManualandGroupChartsofAccounts,which include specific instructions on preparing the financial statements.
Preventivecontrolshavebeendefined,ensuringsafedatainputtotheconsolidationsystem.The implementationofthissolutionensuresforthefinancialstatementinformationandtheannualaccounts standardization. 
Thedatainnativecurrenciesreportedbysubsidiariesarewithintheconsolidationsystemautomatically and in standardized way converted to euro and are subsequently aggregated to the consolidated figures. 
Theconsolidationprocessisdesignedtoidentifyintragrouptransactions,ensuringtheyarecorrectly eliminated.Inaddition,inordertoensurethequalityandcomprehensivenessoftheinformation,the consolidationsystemisconfiguredtomakeinvestment-equityeliminationadjustmentsandtoeliminate intragrouptransactions,whicharegeneratedautomaticallyinkeepingwiththesystemsettingsandchecks. 
Thisentireprocessishighlyautomatedandincludesautomaticcontrolstoenablethedetectionof incidentsintheconsolidationprocess.TheGroupAccountingandPlanning&Analysisdepartments perform additionally oversight and analytical controls.
F.5 
SUPERVISION OF THE FUNCTIONING OF THE SYSTEM
Report on at least the following, describing their principal features:
F.5.1TheactivitiesoftheauditcommitteeinoverseeingICFRaswellaswhetherthereisaninternal auditfunctiononeoftheresponsibilitiesofwhichistoprovidesupporttothecommitteeinitstask ofsupervisingtheinternalcontrolsystem,includingICFR.Additionally,describethescopeofICFR assessmentmadeduringtheyearandtheprocedurethroughwhichthepersonresponsiblefor performingtheassessmentcommunicatesitsresults,whetherthecompanyhasanactionplan detailingpossiblecorrectivemeasures,andwhethertheirimpactonfinancialreportinghasbeen considered.
TheCorporateBylawsandRegulationsoftheBoardofDirectorsstatethattheprimarydutyoftheAudit andControlCommitteeshallbetosupporttheBoardofDirectorsinitssupervisoryduties,withitsmain functionsincluding:supervisingtheeffectivenessoftheCompany’sinternalcontrolsystemandrisk managementsystems,anddiscussingwiththeAuditorssignificantormaterialweaknessesintheinternal controlsystemdetectedduringtheaudit.TheAuditandControlCommitteeisresponsibleforsupervising the effectiveness of the internal controls carried out by the AmRest Group's Internal Audit function.
TheInternalAuditfunctionreportsfunctionallytotheAuditandControlCommittee,withtheprimarygoal oflendingthemsupportintheirresponsibilitiesconcerningensuringgovernance,riskmanagement,and theGroup'sInternalControlSystem.InternalControlcomprisesallprocesswhichmayreasonablyensure 
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compliancewithlaw,regulationsandinternalrules,reliabilityofinformation,efficiencyandefficacyof operations, and the integrity of the organisation's net worth.
TheInternalAuditfunctioniscarriedoutinaccordancewiththeInternationalStandardsforthe ProfessionalPracticeofInternalAuditing.InternalAuditFunctionisbeinggovernedbyInternalAuditArticle of Association. 
WithregardtosupervisionofInternalControloverFinancialReporting(ICFR),AmRestislistedonthe SpanishStockExchanges(andWarsawStockExchange)andissubjecttotheregulatoryrequirements establishedbythesupervisionauthority(CNMV)applicabletocompaniesbeingtradedonSpanishStock Exchange. 
F.5.2Whetherthereisadiscussionprocedurewherebytheauditor(asdefinedintheSpanishTechnical AuditStandards),theinternalauditorandotherexpertscanreporttoseniormanagementandthe auditcommitteeordirectorsofthecompanyanysignificantweaknessesininternalcontrolidentified duringthereviewoftheannualfinancialstatementsoranyotherstheyhavebeenassigned. Additionally,statewhetheranactionplanisavailableforcorrectingormitigatinganyweaknesses 
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detected.
AccordingtotheInternalAuditArticlesofAssociation,theGlobalInternalAuditandInternalControl DepartmentreportsprogressofAnnualAuditPlanrealization,issueswithcontrols,corporategovernance, significantAmRestrisks,progressofrecommendationsimplementationandotherswhicharerequiredby CEO and/or the Audit and Control Committee.
TheirregularitiesidentifiedbyFinancialAuditorsareincludedintheGIA&ICprocessofregularmonitoring, verification and reporting of the implementation of action plans declared by the Management.
Anyirregularitiesidentifiedinstandaloneand/orconsolidatedfinancialstatementsarereportedtoAudit andControlCommitteeasSummaryReport(afterthehalf-yearreviewandauditoftheannualaccounts). Audit and Control Committee meets the Financial Auditors at least twice a year. 
Accordingtothe“RegulationsAuditandControlCommitteeoftheBoardofDirectorsofAmRestHoldings SE”,theAuditandControlCommitteeshould,amongothers,overseetheeffectivenessoftheCompany’s internalcontrolsystem,theinternalaudit,andtheriskmanagementsystemanddiscusswiththe accountingauditorthesignificantweaknessesoftheinternalcontrolsystemrevealedinthecourseofthe audit,whilemaintainingitsindependence Forsuchpurposes,theCommitteemay,ifappropriate,submit recommendations or motions to the Board of Directors.
WithregardtothepreparationoftheregulatedfinancialinformationoftheCompanyanditsGroup,the Committee shall have the following main duties:
a)Tooverseetheprocessofpreparationandsubmissionandtheclarityandintegrityoftheregulated financialinformationrelatingtotheCompanyanditsGroup,ensuringthatthehalf-yearlyfinancial reportsandthequarterlymanagementstatementsaredraftedinaccordancewiththesame accountingstandardsastheannualfinancialreportsandtooverseethereviewoftheinterimfinancial statementsrequestedfromtheauditor,withthescopeandfrequencythatmaybedefined,asthecase may be. The Committee meets often with the external auditor to comply with this function;
b)Toreviewcompliancewithlegalrequirements,theproperdelimitationofthescopeofconsolidation, andthecorrectapplicationofsuchgenerallyacceptedaccountingprinciplesandinternationalfinancial reporting standards as may be applicable;
c)TosubmitrecommendationsormotionstotheBoardofDirectorsforthepurposesofsafeguarding the integrity of the financial information; and 
d)ToadvicetheBoardofDirectorsonanysignificantchangeofaccountingstandardandofthesignificant risks on the balance sheet and off-balance sheet.
F.6 
OTHER RELEVANT
INFORMATION
N/A
F.7 
EXTERNAL AUDITOR´S
REPORT
Report:
F.7.1
Whether
the
ICFR
information
sent
to
the
markets
has
been
subjected
to
review
by
the 
external
auditor,
in
which
case
the
entity
should
include
the
corresponding
report
as
an 
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attachment. If not, reasons why should be given
Theinformationontheinternalcontroloverthefinancialreportingsystemhasbeennotsubmittedfor reviewbytheexternalauditorastheGroupcontinuesimplementingtheimprovementsand recommendationsarisingfromtheICFRimplementationprocessatcorporatelevelinSpainandtheinits main subsidiaries. 
G.DEGREEOFCOMPLIANCEWITHCORPORATEGOVERNANCE RECOMMENDATIONS
Specifythecompany’sdegreeofcompliancewithrecommendationsoftheGoodGovernanceCodeforlisted companies. 
Intheeventthatarecommendationisnotfollowedoronlypartiallyfollowed,adetailedexplanationofthe reasonsmustbeincludedsothatshareholders,investorsandthemarketingeneralhaveenoughinformation to assess the company´s conduct. General explanations are not acceptable.
1.Thatthearticlesofincorporationoflistedcompaniesshouldnotlimitthemaximumnumberof votesthatmaybecastbyoneshareholderorcontainotherrestrictionsthathinderthetakeoverof control of the company through the acquisition of its shares on the market.
CompliesX|Explain |
2.ThatwhenthelistedcompanyiscontrolledbyanotherentityinthemeaningofArticle42ofthe CommercialCode,whetherlistedornot,andhas,directlyorthroughitssubsidiaries,business relationswithsaidentityoranyofitssubsidiaries(otherthanthelistedcompany)orcarriesout activities related to those of any of them it should make accurate public disclosures on:
a)Therespectiveareasofactivityandpossiblebusinessrelationshipsbetweenthelisted company or its subsidiaries and the parent company or its subsidiaries.
b)The mechanisms in place to resolve any conflicts of interest that may arise. 
Complies |Complies partially |Explain |Not Applicable X|
3.That,duringtheordinaryGeneralShareholders’Meeting,asacomplementtothedistribution ofthewrittenannualcorporategovernancereport,thechairmanoftheBoardofDirectorsshould informshareholdersorally,insufficientdetail,ofthemostsignificantaspectsofthecompany's corporate governance, and in particular:
a)Changes that have occurred since the last General Shareholders’ Meeting.
b)Specificreasonswhythecompanyhasnotfollowedoneormoreoftherecommendationsof the Code of Corporate Governance and the alternative rules applied, if any.
Complies|Complies partially | Explain X |
AttheGeneralMeetingheldinJune2020,suchaverbalpresentationwasnotmade,sincealltheattending shareholdersotherthanthecontrollingshareholder,whohasrepresentationontheBoard,attendedthrough proxies to the members of the Board of Directors, thus no such explanation was necessary.
4.Thatthecompanyshoulddefineandpromoteapolicyoncommunicationandcontactwith shareholdersandinstitutionalinvestors,withintheframeworkoftheirinvolvementinthecompany, 
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andwithproxyadvisorsthatcompliesinallaspectswithrulesagainstmarketabuseandgivesequal treatmenttosimilarlysituatedshareholders.Andthatthecompanyshouldpublishthispolicyonits website,includinginformationonhowithasbeenputintopracticeandidentifyingthecontact persons or those responsible for implementing it. 
Andthat,withoutprejudicetothelegalobligationsregardingdisseminationofinsideinformationand othertypesofregulatedinformation,thecompanyshouldalsohaveageneralpolicyregardingthe communicationofeconomic-financial,non-financialandcorporateinformationthroughsuch channelsasitmayconsiderappropriate(communicationmedia,socialnetworksorotherchannels) thathelpstomaximisethedisseminationandqualityofinformationavailabletothemarket, investors and other stakeholders.
TheGroupdoesnothaveaspecificindependentpolicyregardingthecommunicationofeconomic-financial,non-financialandcorporateinformation,althoughtheseaspectsaredealtwithinthepolicy on communication and contacts with shareholders and institutional investors.
Complies | Complies partially X|Explain|
TheGroupdoesnothaveaspecificindependentpolicyregardingthecommunicationofeconomic-financial, non-financialandcorporateinformation,althoughtheseaspectsaredealtwithinthepolicyon communication and contacts with shareholders and institutional investors.
5.ThattheBoardofDirectorsshouldnotsubmittotheGeneralShareholders’Meetinganyproposal fordelegationofpowersallowingtheissueofsharesorconvertiblesecuritieswiththeexclusionof preemptive rights in an amount exceeding 20% of the capital at the time of delegation.
AndthatwhenevertheBoardofDirectorsapprovesanyissueofsharesorconvertiblesecuritieswith theexclusionofpreemptiverights,thecompanyshouldimmediatelypublishthereportsreferredto by company law on its website.
Complies X|Complies partially |Explain |
6.Thatlistedcompaniesthatpreparethereportslistedbelow,whetherunderalegalobligationor voluntarily,shouldpublishthemontheirwebsitewithsufficienttimebeforetheGeneral Shareholders’ Meeting, even if their publication is not mandatory:
a)Report on the auditor’s independence.
b)Reports on the workings of the audit and nomination and remuneration committees.
c)Report by the audit committee on related party transactions.
Complies X |Complies partially |Explain |
7.Thatthecompanyshouldtransmitinrealtime,throughitswebsite,theproceedingsoftheGeneral Shareholders’ Meetings.
Andthatthecompanyshouldhavemechanismsinplaceallowingthedelegationandcastingofvotes bymeansofdatatransmissionandeven,inthecaseoflarge-capsandtotheextentthatitis proportionate,attendanceandactiveparticipationintheGeneralMeetingtobeconductedbysuch remote means.
Complies | Explain X|
Thusfar,theholdingoftheGeneralShareholders’Meetinghasnotbeentransmittedviathecorporate websitesincetheimplementationofthemechanismsrequiredforsuchretransmissionhasnotbeen considered necessary, taking into account the shareholder structure of the Company. 
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TheCompanyhasmechanismsthatallowthedelegationandexerciseofvotesbyremotemeans.The Companyisnotahighlycapitalizedcompanyandthereforedoesnotconsiderattendanceandactive participation in the General Shareholders' Meeting to be necessary or expedient.
8.ThattheauditcommitteeshouldensurethatthefinancialstatementssubmittedtotheGeneral Shareholders’Meetingarepreparedinaccordancewithaccountingregulations.Andthatincasesin whichtheauditorhasincludedaqualificationorreservationinitsauditreport,thechairmanofthe auditcommitteeshouldclearlyexplaintothegeneralmeetingtheopinionoftheauditcommitteeon itscontentandscope,makingasummaryofthisopinionavailabletoshareholdersatthetimewhen the meeting is called, alongside the other Board proposals and reports.
Complies X|Complies partially |Explain |
9.Thatthecompanyshouldpermanentlypublishonitswebsitetherequirementsandproceduresfor certificationofshareownership,therightofattendanceattheGeneralShareholders’Meetings,and the exercise of the right to vote or to issue a proxy.
Andthatsuchrequirementsandprocedurespromoteattendanceandtheexerciseofshareholder rights in a non-discriminatory fashion.
Complies X|Complies partially |Explain |
10.Thatwhenadulyauthenticatedshareholderhasexercisedhisorherrighttocompletetheagenda ortomakenewproposalsforresolutionsinadvanceoftheGeneralShareholders’Meeting,the company:
a)Shouldimmediatelydistributesuchcomplementarypointsandnewproposalsforresolutions.
b)Shouldpublishtheattendance,proxyandremotevotingcardspecimenwiththenecessary changessuchthatthenewagendaitemsandalternativeproposalscanbevotedoninthe same terms as those proposed by the Board of Directors.
c)Shouldsubmitsallthesepointsoralternativeproposalstoavoteandapplythesamevoting rulestothemastothoseformulatedbytheBoardofDirectorsincluding,inparticular, assumptions or default positions regarding votes for or against.
d)ThataftertheGeneralShareholders’Meeting,abreakdownofthevotingonsaidadditionsor alternative proposals be communicated.
Complies |Complies partially |Explain |Not Applicable X|
11.ThatifthecompanyintendstopaypremiumsforattendingtheGeneralShareholders’Meeting,it should establish in advance a general policy on such premiums and this policy should be stable.
Complies |Complies partially |Explain |Not Applicable X|
12.ThattheBoardofDirectorsshouldperformitsfunctionswithaunityofpurposeandindependence ofcriterion,treatingallsimilarlysituatedshareholdersequallyandbeingguidedbythebestinterests ofthecompany,whichisunderstoodtomeanthepursuitofaprofitableandsustainablebusinessin the long term, promoting its continuity and maximising the economic value of the business.
Andthatinpursuitofthecompany’sinterest,inadditiontocomplyingwithapplicablelawandrules andconductingitselfonthebasisofgoodfaith,ethicsandarespectforcommonlyacceptedbest practices,itshouldseektoreconcileitsowncompanyinterests,whenappropriate,withtheinterests ofitsemployees,suppliers,clientsandotherstakeholdersthatmaybeaffected,aswellastheimpact of its corporate activities on the communities in which it operates and on the environment.
Complies X|Complies partially |Explain |
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13.ThattheBoardofDirectorsshouldbeofanappropriatesizetoperformitsdutieseffectivelyand in a collegial manner, which makes it advisable for it to have between five and fifteen members.
Complies X|Explain |
14.ThattheBoardofDirectorsshouldapproveapolicyaimedatfavouringanappropriatecomposition of the Board and that:
a)Is concrete and verifiable.
b)Ensuresthatproposalsforappointmentorre-electionarebaseduponaprioranalysisofthe skills required by the Board of Directors; and
c)Favoursdiversityofknowledge,experience,ageandgender.Forthesepurposes,itis consideredthatthemeasuresthatencouragethecompanytohaveasignificantnumberof female senior executives favour gender diversity.
ThattheresultoftheprioranalysisoftheskillsrequiredbytheBoardofDirectorsbecontainedinthe supportingreportfromthenominationcommitteepublisheduponcallingtheGeneralShareholders’ Meeting to which the ratification, appointment or re-election of each director is submitted. 
Thenominationcommitteewillannuallyverifycompliancewiththispolicyandexplainitsfindingsin the annual corporate governance report.
Complies |Complies partially X| Explain |
TheCompanyhasaDirectorSelectionPolicyaimedatpromotinganappropriatecompositionoftheBoardof Directors. 
Thereisnospecificpolicyfortheappointmentofseniorexecutivesotherthantheprovisionsincludedinthe Board Regulations regarding the competencies of the Appointments and Remuneration Committee.
15.ThatproprietaryandindependentdirectorsshouldconstituteasubstantialmajorityoftheBoard ofDirectorsandthatthenumberofexecutivedirectorsbekepttoaminimum,takingintoaccount thecomplexityofthecorporategroupandthepercentageofequityparticipationofexecutive directors.
Andthatthenumberoffemaledirectorsshouldrepresentatleast40%ofthemembersoftheBoard of Directors before the end of 2022 and thereafter, and no less 30% prior to that date.
Complies| Complies partially X | Explain |
Currently the number of female directors represents 28.57%. 
16.Thatthenumberofproprietarydirectorsasapercentageofthetotalnumberofnon-executive directorsnotbegreaterthantheproportionofthecompany'ssharecapitalrepresentedbythose directors and the rest of the capital.
This criterion may be relaxed:
a)In large-cap companies where very few shareholdings are legally considered significant.
b)InthecaseofcompanieswhereapluralityofshareholdersisrepresentedontheBoardof Directors without ties among them.
Complies X| Explain |
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17.Thatthenumberofindependentdirectorsshouldrepresentatleasthalfofthetotalnumberof directors.
That,however,whenthecompanydoesnothaveahighlevelofmarketcapitalisationorintheevent thatitisalarge-capcompanywithoneshareholderoragroupofshareholdersactinginconcertwho togethercontrolmorethan30%ofthecompany’ssharecapital,thenumberofindependentdirectors should represent at least one third of the total number of directors.
Complies X | Explain |
18.Thatcompaniesshouldpublishthefollowinginformationonitsdirectorsontheirwebsite, and keep it up to date:
a)Professional profile and biography.
b)AnyotherBoardstowhichthedirectorsbelong,regardlessofwhetherornotthecompanies are listed, as well as any other remunerated activities engaged in, regardless of type.
c)Categoryofdirectorship,indicating,inthecaseofindividualswhorepresentsignificant shareholders, the shareholder that they represent or to which they are connected.
d)Dateoftheirfirstappointmentasadirectorofthecompany’sBoardofDirectors,andany subsequent re-elections.
e)Company shares and share options that they own.
Complies X| Complies partially | Explain |
19.Thattheannualcorporategovernancereport,afterverificationbythenominationcommittee, shouldexplainthereasonsfortheappointmentofanyproprietarydirectorsattheproposalof shareholderswhoseholdingislessthan3%.Itshouldalsoexplain,ifapplicable,whyformalrequests fromshareholdersforpresenceontheBoardwerenothonoured,whentheirshareholdingwasequal to or exceeded that of other shareholders whose proposal for proprietary directors was honoured.
Complies | Complies Partially | Explain | Not Applicable X|
20.ThatproprietarydirectorsrepresentingsignificantshareholdersshouldresignfromtheBoard whentheshareholdertheyrepresentdisposesofitsentireshareholding.Theyshouldalsoresign,ina proportionalfashion,intheeventthatsaidshareholderreducesitspercentageinteresttoalevelthat requires a decrease in the number of proprietary directors.  
Complies X| Complies Partially | Explain | Not Applicable |
21.ThattheBoardofDirectorsshouldnotproposethedismissalofanyindependentdirectorbefore thecompletionofthedirector’stermprovidedforinthearticlesofincorporationunlesstheBoardof Directorsfindsjustcauseandapriorreporthasbeenpreparedbythenominationcommittee. Specifically,justcauseisconsideredtoexistifthedirectortakesonnewdutiesorcommitstonew obligationsthatwouldinterferewithhisorherabilitytodedicatethetimenecessaryforattentionto thedutiesinherenttohisorherpostasadirector,failstocompletethetasksinherenttohisorher post,orisaffectedbyanyofthecircumstanceswhichwouldcausethelossofindependentstatusin accordance with applicable law.
Thedismissalofindependentdirectorsmayalsobeproposedasaresultofapublictakeoverbid, mergerorothersimilarcorporatetransactionentailingachangeintheshareholderstructureofthe 
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company,providedthatsuchchangesinthestructureoftheBoardaretheresultofapplicationofthe proportionate representation criterion provided in Recommendation 16.
Complies X| Explain |
22.ThatcompaniesshouldestablishrulesrequiringthatdirectorsinformtheBoardofDirectors and,whereappropriate,resignfromtheirposts,whencircumstancesarisewhichaffectthem, whetherornotrelatedtotheiractionsinthecompanyitself,andwhichmayharmthecompany’s standingandreputation,andinparticularrequiringthemtoinformtheBoardofanycriminal proceedingsinwhichtheyappearassuspectsordefendants,aswellasofhowthelegalproceedings subsequently unfold. 
Andthat,iftheBoardisinformedorbecomesawareinanyothermannerofanyofthecircumstances mentionedabove,itmustinvestigatethecaseasquicklyaspossibleand,dependingonthespecific circumstances,decide,basedonareportfromthenominationandremunerationcommittee,whether ornotanymeasuremustbeadopted,suchastheopeningofaninternalinvestigation,askingthe directortoresignorproposingthatheorshebedismissed.Andthattheseeventsmustbereported intheannualcorporategovernancereport,unlessthereareanyspecialreasonsnottodoso,which mustalsobenotedintheminutes.Thiswithoutprejudicetotheinformationthatthecompanymust disseminate, if appropriate, at the time when the corresponding measures are implemented.
CompliesX | Complies partially | Explain |
23.Thatalldirectorsclearlyexpresstheiroppositionwhentheyconsideranyproposalsubmittedto theBoardofDirectorstobeagainstthecompany’sinterests.Thisparticularlyappliestoindependent directorsanddirectorswhoareunaffectedbyapotentialconflictofinterestifthedecisioncouldbe detrimental to any shareholders not represented on the Board of Directors.
Furthermore,whentheBoardofDirectorsmakessignificantorrepeateddecisionsaboutwhichthe directorhasseriousreservations,thedirectorshoulddrawtheappropriateconclusionsand,inthe eventthedirectordecidestoresign,explainthereasonsforthisdecisionintheletterreferredtoin the next recommendation.
ThisrecommendationalsoappliestothesecretaryoftheBoardofDirectors,evenifheorsheisnota director.
Complies X| Complies Partially | Explain | Not Applicable |
24.Thatwhenever,duetoresignationorresolutionoftheGeneralShareholders'Meeting,a directorleavesbeforethecompletionofhisorhertermofoffice,thedirectorshouldexplainthe reasonsforthisdecision,orinthecaseofnon-executivedirectors,theiropinionofthereasonsfor cessation, in a letter addressed to all members of the Board of Directors. 
Andthat,withoutprejudicetoallthisbeingreportedintheannualcorporategovernancereport, insofarasitisrelevanttoinvestors,thecompanymustpublishthecessationasquicklyaspossible, adequately referring to the reasons or circumstances adduced by the director.
Complies X | Complies Partially | Explain | Not applicable |
25.Thatthenominationcommitteeshouldmakesurethatnon-executivedirectorshavesufficient time available in order to properly perform their duties.
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AndthattheBoardregulationsestablishthemaximumnumberofcompanyBoardsonwhichdirectors may sit.
Complies X| Complies partially | Explain |
26.ThattheBoardofDirectorsmeetfrequentlyenoughtobeabletoeffectivelyperformitsduties, andatleasteighttimesperyear,followingascheduleofdatesandagendasestablishedatthe beginningoftheyearandallowingeachdirectorindividuallytoproposeotheritemsthatdonot originally appear on the agenda. 
Complies X| Complies partially | Explain |
27.Thatdirectorabsencesoccuronlywhenabsolutelynecessaryandbequantifiedintheannual corporategovernancereport.Andwhenabsencesdooccur,thatthedirectorappointaproxywith instructions. 
Complies X| Complies partially | Explain |
28.Thatwhendirectorsorthesecretaryexpressconcernregardingaproposalor,inthecaseof directors,regardingthedirectioninwhichthecompanyisheadedandsaidconcernsarenotresolved bytheBoardofDirectors,suchconcernsshouldbeincludedintheminutesattherequestofthe director expressing them.
Complies X| Complies Partially | Explain | Not Applicable |
29.Thatthecompanyshouldestablishesadequatemeansfordirectorstoobtainappropriateadvice inordertoproperlyfulfiltheirdutiesincluding,shouldcircumstanceswarrant,externaladviceatthe company’s expense.
Complies X| Complies partially | Explain |
30.That,withoutregardtotheknowledgenecessaryfordirectorstocompletetheirduties,companies make refresher courses available to them when circumstances make this advisable.
Complies X| Explain | Not Applicable |
31.ThattheagendaformeetingsshouldclearlyindicatethosemattersonwhichtheBoardofDirectors istomakeadecisionoradoptaresolutionsothatthedirectorsmaystudyorgatherallrelevant information ahead of time.
When,inexceptionalcircumstances,thechairmanwishestobringurgentmattersfordecisionor resolutionbeforetheBoardofDirectorswhichdonotappearontheagenda,priorexpressagreement ofamajorityofthedirectorsshallbenecessary,andsaidconsentshallbedulyrecordedinthe minutes. 
Complies X| Complies partially | Explain |
32.Thatdirectorsbeperiodicallyinformedofchangesinshareholdingandoftheopinionsof significant shareholders, investors and rating agencies of the company and its group.
Complies X| Complies partially | Explain |
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33.Thatthechairman,asthepersonresponsiblefortheefficientworkingsoftheBoardofDirectors, inadditiontocarryingoutthedutiesassignedbylawandthearticlesofincorporation,shouldprepare andsubmittotheBoardofDirectorsascheduleofdatesandmatterstobeconsidered;organiseand coordinatetheperiodicevaluationoftheBoardaswellas,ifapplicable,thechiefexecutiveofthe company,shouldberesponsibleforleadingtheBoardandtheeffectivenessofitswork;ensuringthat sufficienttimeisdevotedtoconsideringstrategicissues,andapproveandsuperviserefreshercourses for each director when circumstances make this advisable. 
Complies X| Complies partially | Explain |
34.Thatwhenthereisacoordinatingdirector,thearticlesofincorporationorBoardregulations shouldconferuponhimorherthefollowingpowersinadditiontothoseconferredbylaw:tochairthe BoardofDirectorsintheabsenceofthechairmananddeputychairmen,shouldtherebeany;toreflect theconcernsofnon-executivedirectors;toliaisewithinvestorsandshareholdersinorderto understandtheirpointsofviewandrespondtotheirconcerns,inparticularasthoseconcernsrelate to corporate governance of the company; and to coordinate a succession plan for the chairman.
Complies | Complies Partially X| Explain | Not Applicable |
AmRestpartiallycomplieswiththerecommendationtotheextentthattheRegulationsoftheBoardof Directorsattributeinarticle16thefollowingfunctionstotheCoordinatingDirector:a)toreflecttheconcerns ofnon-executivedirectorsandtomeetthemwhenitconsidersitappropriate;b)torequestthecallingofthe BoardofDirectorsortheinclusionofnewitemsofthedayinameetingoftheBoardalreadycalled;andc)to direct the periodic evaluation of the Chairman of the Board of Directors. 
35.ThatthesecretaryoftheBoardofDirectorsshouldpayspecialattentiontoensurethatthe activitiesanddecisionsoftheBoardofDirectorstakeintoaccountsuchrecommendationsregarding good governance contained in this Good Governance Code as may be applicable to the company.
Complies X| Explain |
36.ThattheBoardofDirectorsmeetinplenarysessiononceayearandadopt,whereappropriate,an action plan to correct any deficiencies detected in the following:
a)The quality and efficiency of the Board of Directors’ work.
b)The workings and composition of its committees.
c)Diversity in the composition and skills of the Board of Directors.
d)PerformanceofthechairmanoftheBoardofDirectorsandofthechiefexecutiveofficerof the company.
e)Performanceandinputofeachdirector,payingspecialattentiontothoseinchargeofthe various Board committees.
Inordertoperformitsevaluationofthevariouscommittees,theBoardofDirectorswilltakeareport fromthecommitteesthemselvesasastartingpointandfortheevaluationoftheBoard,areportfrom the nomination committee.
Everythreeyears,theBoardofDirectorswillrelyforitsevaluationupontheassistanceofanexternal advisor, whose independence shall be verified by the nomination committee.
Businessrelationshipsbetweentheexternaladviseroranymemberoftheadviser’sgroupandthe companyoranycompanywithinitsgroupmustbespecifiedintheannualcorporategovernance report.
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The process and the areas evaluated must be described in the annual corporate governance report. 
Complies X| Complies partially | Explain |
37.Thatifthereisanexecutivecommittee,itmustcontainatleasttwonon-executivedirectors,at least one of whom must be independent, and its secretary must be the secretary of the Board.
Complies X| Complies Partially | Explain | Not Applicable |
38.ThattheBoardofDirectorsmustalwaysbeawareofthemattersdiscussedanddecisionstakenby theexecutivecommitteeandthatallmembersoftheBoardofDirectorsreceiveacopyoftheminutes of meetings of the executive committee. 
Complies X| Complies Partially | Explain | Not Applicable |
39.Thatthemembersoftheauditcommittee,inparticularitschairman,beappointedin considerationoftheirknowledgeandexperienceinaccountancy,auditandriskmanagementissues, both financial and non-financial.
Complies X| Complies partially | Explain |
40.Thatunderthesupervisionoftheauditcommittee,thereshouldbeaunitinchargeoftheinternal auditfunction,whichensuresthatinformationandinternalcontrolsystemsoperatecorrectly,and which reports to the non-executive chairman of the Board or of the audit committee.
Complies X| Complies partially | Explain |
41.Thatthepersoninchargeoftheunitperformingtheinternalauditfunctionshouldpresentan annualworkplantotheauditcommittee,forapprovalbythatcommitteeorbytheBoard,reporting directlyonitsexecution,includinganyincidentsorlimitationsofscope,theresultsandmonitoringof its recommendations, and present an activity report at the end of each year. 
Complies X| Complies Partially | Explain | Not Applicable |
42.Thatinadditiontotheprovisionsofapplicablelaw,theauditcommitteeshouldberesponsiblefor the following:
1. With regard to information systems and internal control:
a)Supervisingandevaluatingtheprocessofpreparationandthecompletenessofthefinancial andnon-financialinformation,aswellasthecontrolandmanagementsystemsforfinancial andnon-financialriskrelatingtothecompanyand,ifapplicable,thegroup-including operational,technological,legal,social,environmental,politicalandreputationalrisk,orrisk relatedtocorruption-reviewingcompliancewithregulatoryrequirements,theappropriate delimitation of the scope of consolidation and the correct application of accounting criteria. 
b)Ensuringtheindependenceoftheunitchargedwiththeinternalauditfunction;proposingthe selection,appointmentanddismissaloftheheadofinternalaudit;proposingthebudgetfor thisservice;approvingorproposingitsorientationandannualworkplansforapprovalbythe Board,makingsurethatitsactivityisfocusedprimarilyonmaterialrisks(including reputationalrisk);receivingperiodicinformationonitsactivities;andverifyingthatsenior management takes into account the conclusions and recommendations of its reports. 
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c)Establishingandsupervisingamechanismthatallowsemployeesandotherpersonsrelated tothecompany,suchasdirectors,shareholders,suppliers,contractorsorsubcontractors,to reportanypotentiallyseriousirregularities,especiallythoseofafinancialoraccounting nature,thattheyobserveinthecompanyoritsgroup.Thismechanismmustguarantee confidentialityandinanycaseprovideforcasesinwhichthecommunicationscanbemade anonymously, respecting the rights of the whistleblower and the person reported.
d)Generallyensuringthatinternalcontrolpoliciesandsystemsareeffectivelyappliedin practice.
2.With regard to the external auditor:
a)Intheeventthattheexternalauditorresigns,examiningthecircumstancesleadingtosuch resignation. 
b)Ensuringthattheremunerationpaidtotheexternalauditorforitsworkdoesnotcompromise the quality of the work or the auditor’s independence. 
c)MakingsurethatthecompanyinformstheCNMVofthechangeofauditor,alongwitha statementonanydifferencesthatarosewiththeoutgoingauditorand,ifapplicable,the contents thereof. 
d)EnsuringthattheexternalauditorholdsanannualmeetingwiththeBoardofDirectorsin plenarysessioninordertomakeareportregardingthetasksperformedandthedevelopment of the company's accounting situation and risks. 
e)Ensuringthatthecompanyandtheexternalauditorcomplywithapplicablerulesregarding theprovisionofservicesotherthanauditing,limitsontheconcentrationoftheauditor’s business, and, in general, all other rules regarding auditors' independence.
Complies X| Complies partially | Explain |
43.Thattheauditcommitteebeabletorequirethepresenceofanyemployeeormanagerofthe company,evenstipulatingthatheorsheappearwithoutthepresenceofanyothermemberof management.
Complies X| Complies partially | Explain |
44.Thattheauditcommitteebekeptabreastofanycorporateandstructuralchangesplannedbythe companyinordertoperformananalysisanddrawupapriorreporttotheBoardofDirectorsonthe economic conditions and accounting implications and, in particular, any exchange ratio involved.
Complies X | Complies Partially | Explain | Not Applicable |
45. That the risk management and control policy identify or determine, as a minimum: 
a)Thevarioustypesoffinancialandnon-financialrisks(includingoperational,technological, legal,social,environmental,politicalandreputationalrisksandrisksrelatingtocorruption) whichthecompanyfaces,includingamongthefinancialoreconomicriskscontingent liabilities and other off-balance sheet risks. 
b)Ariskcontrolandmanagementmodelbasedondifferentlevels,whichwillincludea specialisedriskcommitteewhensectorregulationssorequireorthecompanyconsidersitto be appropriate.
c)The level of risk that the company considers to be acceptable. 
d)Measuresinplacetomitigatetheimpactoftherisksidentifiedintheeventthattheyshould materialised. 
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e)Internalcontrolandinformationsystemstobeusedinordertocontrolandmanagethe aforementioned risks, including contingent liabilities or off-balance sheet risks.
Complies | Complies partially X| Explain |
The Company has a Risk Management Policy which covers most but not all the above matters.
46.Thatunderthedirectsupervisionoftheauditcommitteeor,ifapplicable,ofaspecialised committeeoftheBoardofDirectors,aninternalriskcontrolandmanagementfunctionshouldexist, performedbyaninternalunitordepartmentofthecompanywhichisexpresslychargedwiththe following responsibilities: 
a)Ensuringtheproperfunctioningoftheriskmanagementandcontrolsystemsand,in particular,thattheyadequatelyidentify,manageandquantifyallmaterialrisksaffectingthe company. 
b)Activelyparticipatingindrawinguptheriskstrategyandinimportantdecisionsregardingrisk management. 
c)Ensuringthattheriskmanagementandcontrolsystemsadequatelymitigaterisksasdefined by the policy laid down by the Board of Directors.
Complies X | Complies partially X | Explain |
47.Thatindesignatingthemembersofthenominationandremunerationcommittee–orofthe nominationcommitteeandtheremunerationcommitteeiftheyareseparate–carebetakento ensurethattheyhavetheknowledge,aptitudesandexperienceappropriatetothefunctionsthat they are called upon to perform and that the majority of said members are independent directors.
Complies X| Complies partially | Explain |
48. That large-cap companies have separate nomination and remuneration committees.
Complies | Explain | Not Applicable X|
49.ThatthenominationcommitteeconsultwiththechairmanoftheBoardofDirectorsandthechief executive of the company, especially in relation to matters concerning executive directors. 
Andthatanydirectorbeabletoaskthenominationcommitteetoconsiderpotentialcandidatesthat he or she considers suitable to fill a vacancy on the Board of Directors.
Complies | Complies partially X| Explain |
AlthoughitisnotexpresslycontemplatedinAmRest'sinternalregulationsfortheAppointmentsand RemunerationsCommitteetoconsulttheChairmanoftheBoardandthechiefexecutivewhendealingwith mattersrelatingtoexecutivedirectors,inpracticesaidCommitteeindeedconsulttheChairmanandtheChief Executive on those matters.
50.Thattheremunerationcommitteeexerciseitsfunctionsindependentlyandthat,inadditiontothe functions assigned to it by law, it should be responsible for the following:
a)ProposingthebasicconditionsofemploymentforseniormanagementtotheBoardof Directors. 
b)Verifying compliance with the company's remuneration policy. 
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c)Periodicallyreviewingtheremunerationpolicyappliedtodirectorsandseniormanagers, includingshare-basedremunerationsystemsandtheirapplication,aswellasensuringthat theirindividualremunerationisproportionaltothatreceivedbythecompany'sother directors and senior managers. 
d)Makingsurethatpotentialconflictsofinterestdonotunderminetheindependenceof external advice given to the committee. 
e)Verifyingtheinformationonremunerationofdirectorsandseniormanagerscontainedinthe various corporate documents, including the annual report on director remuneration.
Complies X| Complies partially | Explain |
51.Thattheremunerationcommitteeshouldconsultwiththechairmanandthechiefexecutiveofthe company, especially on matters relating to executive directors and senior management.
Complies | Complies partially X| Explain |
AlthoughitisnotexpresslycontemplatedinAmRest'sinternalregulationsfortheAppointmentsand RemunerationsCommitteetoconsulttheChairmanoftheBoardandthechiefexecutivewhendealingwith mattersrelatingtoexecutivedirectors,inpracticesaidCommitteeindeedconsulttheChairmanwhenneeded.  
52.Thattherulesregardingthecompositionandworkingsofthesupervisionandcontrolcommittees shouldappearintheregulationsoftheBoardofDirectorsandthattheyshouldbeconsistentwith thoseapplyingtolegallymandatorycommitteesinaccordancewiththeforegoingrecommendations, including:
a)Thattheybecomposedexclusivelyofnon-executivedirectors,withamajorityofindependent directors. 
b)That their chairpersons be independent directors. 
c)ThattheBoardofDirectorsselectmembersofthesecommitteestakingintoaccounttheir knowledge,skillsandexperienceandthedutiesofeachcommittee;discusstheirproposals andreports;andrequirethemtorenderaccountoftheiractivitiesandoftheworkperformed in the first plenary session of the Board of Directors held after each committee meeting. 
d)Thatthecommitteesbeallowedtoavailthemselvesofoutsideadvicewhentheyconsiderit necessary to perform their duties. 
e)That their meetings be recorded and their minutes be made available to all directors.
Complies X | Complies Partially | Explain |Not Applicable |
53.Thatverificationofcompliancewiththecompany'spoliciesandrulesonenvironmental,socialand corporategovernancematters,andwiththeinternalcodesofconductbeassignedtooneordivided amongmorethanonecommitteeoftheBoardofDirectors,whichmaybetheauditcommittee,the nominationcommittee,aspecialisedcommitteeonsustainabilityorcorporatesocialresponsibilityor suchotherspecialisedcommitteeastheBoardofDirectors,intheexerciseofitspowersofself-organisation,mayhavedecidedtocreate.Andthatsuchcommitteebecomposedexclusivelyofnon-executivedirectors,withamajorityofthesebeingindependentdirectors,andthattheminimum functions indicated in the next recommendation be specifically assigned to it
Complies X | Complies Partially | Explain |
54. The minimum functions referred to in the foregoing recommendation are the following:
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a)Monitoringofcompliancewiththecompany’sinternalcodesofconductandcorporate governancerules,alsoensuringthatthecorporatecultureisalignedwithitspurposeand values.
b)Monitoringtheapplicationofthegeneralpolicyoncommunicationofeconomicandfinancial information,non-financialandcorporateinformationandcommunicationwithshareholders andinvestors,proxyadvisorsandotherstakeholders.Themannerinwhichtheentity communicatesandhandlesrelationswithsmallandmedium-sizedshareholdersmustalsobe monitored. 
c)Theperiodicevaluationandreviewofthecompany’scorporategovernancesystem,and environmentalandsocialpolicy,withaviewtoensuringthattheyfulfiltheirpurposesof promotingtheinterestsofsocietyandtakeaccount,asappropriate,ofthelegitimate interests of other stakeholders. 
d)Supervisionofthecompany'senvironmentalandsocialpracticestoensurethattheyarein alignment with the established strategy and policy. 
e)Supervisionandevaluationofthewayinwhichrelationswiththevariousstakeholdersare handled.
Complies | Complies partially X| Explain |
Although not expressly contemplated in the Company's internal regulations, the Audit Committee, the Appointments and Remuneration Committee and the Health and Safety Committee perform the functions referred to in this recommendation.
55.Thatenvironmentalandsocialsustainabilitypoliciesidentifyandincludeatleastthe following:
a)Theprinciples,commitments,objectivesandstrategyrelatingtoshareholders,employees, clients,suppliers,socialissues,theenvironment,diversity,taxresponsibility,respectfor human rights, and the prevention of corruption and other unlawful conduct 
b)Meansorsystemsformonitoringcompliancewiththesepolicies,theirassociatedrisks,and management. 
c)Mechanismsforsupervisingnon-financialrisk,includingthatrelatingtoethicalaspectsand aspects of business conduct. 
d)Channels of communication, participation and dialogue with stakeholders. 
e)Responsiblecommunicationpracticesthatimpedethemanipulationofdataandprotect integrity and honour.
Complies | Complies partially X| Explain |
TheCompanypartiallycomplieswiththisrecommendationtotheextentthatithasaCorporateSocial ResponsibilityPolicy,availableonitswebsite,althoughitdoesnotincludealltheprinciplescontainedinthe recommendation. 
56.Thatdirectorremunerationbesufficientinordertoattractandretaindirectorswhomeetthe desiredprofessionalprofileandtoadequatelycompensatethemforthededication,qualificationsand responsibilitydemandedoftheirposts,whilenotbeingsoexcessiveastocompromisethe independent judgement of non-executive directors.
Complies X| Explain |
57.Thatonlyexecutivedirectorsshouldreceivevariableremunerationlinkedtocorporateresultsand personalperformance,aswellasremunerationintheformofshares,optionsorrightstosharesor 
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instrumentsreferencedtothesharepriceandlong-termsavingsplanssuchaspensionplans, retirement schemes or other provident schemes. 
Considerationmaybegiventodeliveringsharestonon-executivedirectorsasremunerationproviding thisisconditionalupontheirholdingthemuntiltheyceasetobedirectors.Theforegoingshallnot applytosharesthatthedirectormayneedtosellinordertomeetthecostsrelatedtotheir acquisition.
Complies X| Complies partially | Explain |
58.That,asregardsvariableremuneration,remunerationpoliciesshouldincorporatethenecessary limitsandtechnicalsafeguardstoensurethatsuchremunerationisinlinewiththeprofessional performanceofitsbeneficiariesandnotbasedsolelyongeneraldevelopmentsinthemarketsorin the sector in which the company operates, or other similar circumstances. 
And, in particular, that variable remuneration components:
a)Arelinkedtopre-determinedandmeasurableperformancecriteriaandthatsuchcriteriatake into account the risk incurred to achieve a given result. 
b)Promotethesustainabilityofthecompanyandincludenon-financialcriteriathataregeared towardscreatinglongtermvalue,suchascompliancewiththecompany'srulesandinternal operating procedures and with its risk management and control policies.
c)Arebasedonbalancingtheattainmentofshort-,medium-andlong-termobjectives,soasto allowremunerationofcontinuousperformanceoveraperiodlongenoughtobeabletoassess itscontributiontothesustainablecreationofvalue,suchthattheelementsusedtomeasure performance are not associated only with one-off, occasional or extraordinary events.
Complies | Complies Partially| Explain | Not Applicable X |
59.Thatthepaymentofvariableremunerationcomponentsbesubjecttosufficientverificationthat previouslyestablishedperformanceorotherconditionshaveeffectivelybeenmet.Entitiesmust includeintheirannualreportondirectorremunerationthecriteriaforthetimerequiredandmethods used for this verification depending on the nature and characteristics of each variable component.
That,additionally,companiesconsidertheinclusionofareduction('malus')clauseforthedeferralof thepaymentofaportionofvariableremunerationcomponentsthatwouldimplytheirtotalorpartial loss if an event were to occur prior to the payment date that would make this advisable.
Complies | Complies Partially | Explain | Not Applicable X |
60.Thatremunerationrelatedtocompanyresultsshouldtakeintoaccountanyreservationsthat might appear in the external auditor’s report and that would diminish said results. 
Complies | Complies Partially | Explain | Not Applicable X|
Amongthetermsandconditionsoftheremunerationrelatedtocompanyresultsthereisnoreferenceto reservations which may appear in the external auditor’s report. 
61.Thatamaterialportionofexecutivedirectors'variableremunerationbelinkedtothedeliveryof shares or financial instruments referenced to the share price. 
Complies | Complies Partially | Explain | Not Applicable X
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62.Thatoncesharesoroptionsorfinancialinstrumentshavebeenallocatedunderremuneration schemes,executivedirectorsbeprohibitedfromtransferringownershiporexercisingoptionsor rights until a term of at least three years has elapsed. 
Anexceptionismadeincaseswherethedirectorhas,atthetimeofthetransferorexerciseofoptions orrights,aneteconomicexposuretochangesinthesharepriceforamarketvalueequivalenttoat leasttwicetheamountofhisorherfixedannualremunerationthroughtheownershipofshares, options or other financial instruments. 
Theforgoingshallnotapplytosharesthatthedirectormayneedtosellinordertomeetthecosts relatedtotheiracquisitionor,followingafavourableassessmentbythenominationand remuneration committee, to deal with such extraordinary situations as may arise and so require.
Complies | Complies Partially | Explain | Not Applicable X
Atpresent,noexecutivedirectorownsshares,optionsorfinancialinstrumentscorrespondingto remuneration schemes.
63.Thatcontractualarrangementsshouldincludeaclauseallowingthecompanytodemand reimbursementofthevariableremunerationcomponentsintheeventthatpaymentwasnotin accordancewiththeperformanceconditionsorwhenpaymentwasmadebasedondatasubsequently shown to have been inaccurate.
Complies | Complies Partially | Explain | Not Applicable X
64.Thatpaymentsforcontractterminationshouldnotexceedanamountequivalenttotwoyearsof totalannualremunerationandshouldnotbepaiduntilthecompanyhasbeenabletoverifythatthe director has fulfilled all previously established criteria or conditions for payment. 
Forthepurposesofthisrecommendation,paymentsforcontractualterminationwillbeconsidered toincludeanypaymentstheaccrualofwhichortheobligationtopaywhicharisesasaconsequence oforontheoccasionoftheterminationofthecontractualrelationshipbetweenthedirectorandthe company,includingamountsnotpreviouslyvestedoflong-termsavingsschemesandamountspaid by virtue of post-contractual non-competition agreements. 
Complies X | Complies Partially | Explanation | Not Applicable |
H.FURTHER INFORMATION OF INTEREST
1.Ifthereisanysignificantaspectregardingcorporategovernanceinthecompanyorothercompaniesin thegroupthathasnotbeenincludedinothersectionsofthisreport,butwhichitisnecessarytoincludein ordertoprovideamorecomprehensiveandreasonedpictureofthestructureandgovernancepracticesin the company or its group, describe them briefly below.
2.Thissectionmayalsobeusedtoprovideanyotherinformation,explanationorclarificationrelatingto previous sections of the report, so long as it is relevant and not repetitive. 
Specifically,indicatewhetherthecompanyissubjecttoanycorporategovernancelegislationotherthanthat 
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ofSpainand,ifso,includeanyinformationrequiredunderthislegislationthatdiffersfromthedatarequired in this report.
A.2.InrelationtoMr.CarlosFernándezGonzález,additionally,andas"othercloseties"oftheBoard Members, the following information is indicated:
D.CarlosFernándezGonzálezhasacloserelationshipwithFinaccessMéxico,S.A.deC.V.,Sociedad OperadoradeFondosdeInversión.Thiscompanyhasa0.53%interestinthecapitalstockofthecompany. TheholderoftheparticipationisLatin10,SAdeCV,afundmanagedindependentlybyFinaccessMexico,SA de CV.
3.Thecompanymayalsoindicatewhetherithasvoluntarilysubscribedtootherethicalorbestpracticecodes, whetherinternational,sector-based,orother.Insuchcase,namethecodeinquestionandthedateonwhich thecompanysubscribedtoit.Specificmentionmustbemadeastowhetherthecompanyadherestothe Code of Good Tax Practices of 20 July 2010
AsAmRestislistedontheWarsawStockExchange,theCompanyperiodicallyreportsonthedegreeof compliancewiththecorporategovernancerecommendationsrequiredbyapplicablelawthroughthe publicationoftheDeclarationofCompliancewiththePrinciplesofGoodPracticeforCompaniesListedon the Warsaw Stock Exchange.
ThisAnnualCorporateGovernanceReportwasapprovedbytheBoardofDirectorsofthecompanyatthe meeting held on 24 February, 2021.
State whether any directors voted against or abstained from voting on this report.
Yes        No X
Name or company name of the member of the Board of Directors who has not voted for the approval of this report
Reasons (against, 
abstention, non-
attendance)
Explain the reasons
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SIGNATURESOF THE BOARD OF DIRECTORS
Madrid, 24 February 2021
José Parés Gutiérrez
Chairman of the Board
Luis Miguel Álvarez PérezVice-Chairman of the Board
Carlos Fernández GonzálezMember of the Board
Romana Sadurska
Member of the Board
Pablo Castilla ReparazMember of the Board
Mónica Cueva Díaz 
Member of the Board
Emilio Fullaondo Botella
Member of the Board
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STATEMENT OF RESPONSIBILITY OF AMREST HOLDINGS, SE
ThemembersoftheBoardofDirectorsofAMRESTHOLDINGS,SE("AmRest"orthe"Company")onits meetingheldon24February2021,andaccordingtoarticle118ofthereinstatedtextoftheSpanishSecurities MarketsActapprovedbyRoyalLegislativeDecree4/2015of23Octoberaswellastoarticle8b)ofRoyal Decree1362/2007,of19October,declarethat,asfarastheyareaware,theindividualAnnualAccountsof theCompany,aswellastheconsolidatedoneswithitsdependentcompanies,correspondingtothefinancial yearended31December2020,drawnupbytheBoardofDirectorsonthereferredmeetingof24February 2021andpreparedinaccordancewiththeapplicableaccountingprinciples,offeratrueandfairimageofthe equity,thefinancialsituationandtheresultsoftheCompanyandthecompanieswithintheconsolidation takenasawhole,andthecomplementarymanagementreportsoftheindividualandconsolidatedAnnual AccountsincludeanaccurateanalysisofthebusinessevolutionandresultsandofthepositionofAmRest andthecompanieswithintheconsolidationtakenasawhole,togetherwiththemainrisksanduncertainties which they face.
Madrid, on 24 February 2021