IBERSOL • 2023 Integrated Management Report

CORPORATE GOVERNANCE REPORT Financial Risks Foreign exchange risk The Ibersol Group adopts a natural hedging policy regarding exchange rate risk, using financing in local currency. The exposure to exchange rate risk is limited, since the Group is mainly present in the Iberian market and has little volume of purchases outside the euro zone. The most relevant exchange rate risk comes from operations in Angola, where devaluation of the Kwanza could affect the Group’s results. However, the financing contracted by the Angolan subsidiaries is denominated in the local currency and the Group monitors the credit balances in foreign currency on a monthly basis and adopts a partial hedge through Treasury Bonds of the Republic of Angola, indexed to the USD. In 2023, the acquisition of these bonds became more expensive, as no new series of bonds have been issued and demand has maintained. At the same time, it became more difficult to obtain all the currency needed to pay for imported products, which led to an increase in the credit held by the Group’s Portuguese subsidiaries to the Angolan subsidiaries. Interest rate risk The Ibersol Group has no significant interest-bearing assets, except for the Angolan State Treasury Bonds, whose interest is fixed and indexed to the US dollar. The group had Term Deposits amounting to 144 million euros on 31 December due to the sale of Burger King brand restaurants in 2022. The main interest rate risk comes from liabilities, namely long- term loans. Loans issued with variable rates expose the Group to cash flow risk associated with the interest rate and loans issued with fixed rates expose the group to fair value risk associated with the interest rate. The Group’s policy, in longer maturity loans, is to fix interest rates up to 50% of the outstanding amount. Credit risk The Ibersol Group has no relevant credit risk concentrations, since its main activity is carried out with sales paid in cash or by debit or credit card. However, in relation to the Catering and Franchising businesses that represent about 7.4% of the consolidated turnover, the Group regularly monitors the accounts receivable, controlling the credit granted, analysing the ageing and recoverability of the receivables and the customers’ risk profile. In relation to home sales through Aggregators, the Group receives the money within eight or fifteen days. 320