IBERSOL | 2019 Annual Report

Consolidated Financial Statements In 31 December, 2019 and 2018 currency exchange risk was as follows: Additionally, in Angolan subsidiaries, there are debts to suppliers - mainly group companies - denominated in EUR, which, after conversion, generate exchange diffe- rences in the consolidated financial statements (other operating costs). On the other hand, the same subsidiaries hold financial assets indexed to the USD in an amount necessary to fully cover foreign currency liabilities. Due to this full coverage and based on the figures for 31 December 2019, any simula- tion of a depreciation of the AKZ against the USD and EUR, keeping everything else constant, would not have a negative impact on Ibersol’s Net Profit. Year 2019 Kwanzas Equivalent EUR USD Equivalent EUR Financial Assets Cash and Bank deposits 446 232 877 832 224 5 753 5 331 Treasury bonds 8 758 250 718 16 334 138 - - Others 64 595 055 120 470 - - 9 269 078 650 17 286 832 5 753 5 331 Financial Liabilites Loans 3 146 722 026 9 218 177 - - Suppliers 168 518 692 314 287 1 271 421 1 178 107 Others 6 089 475 11 357 - - 3 321 330 193 9 543 821 1 271 421 1 178 107 Year 2018 Kwanzas Equivalent EUR USD Equivalent EUR Financial Assets Cash and Bank deposits 944 565 782 2 675 955 449 172 402 571 Treasury bonds 7 253 661 152 20 549 622 - - Others 27 412 587 77 660 5 455 4 889 8 225 639 520 23 303 237 454 628 407 460 Financial Liabilites Loans 2 565 000 000 7 266 645 500 000 448 125 Suppliers 170 684 625 483 550 2 947 444 2 641 647 Others 3 610 430 10 228 - - 2 739 295 055 7 760 423 3 447 444 3 089 772 234