IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 The existence of significant influence by the Group is normally demonstrated in one or more of the following ways: • Representation on the Executive Board of Directors or equivalent governing body; • Participation in policy-making processes, including participation in decisions about dividends or other distributions; • Existence of material transactions between the Group and the investee; • Exchange of management personnel; and • Providing essential technical information. The entities in which the group exercises control jointly with other partners or in which it exercises significant influence are detailed in note 1.2. 2.1.5.3. Business activities concentration Under IFRS 3 (“Business Combination”), in a business combination, the acquirer must recognize and measure in the consolidated financial statements the assets acquired and liabilities assumed at fair value on the acquisition date. The difference between the acquisition price and the fair value of the assets and liabilities acquired gives rise to the recognition of goodwill or a gain resulting from a bargain purchase. The fair value of the assets acquired and liabilities assumed is determined internally or through independent external valuers, using the discounted cash flow method, replacement cost or other fair value determination techniques, which are based on the use of assumptions including macroeconomic indicators, such as inflation rates, interest rates, exchange rates, discount rates, energy sales and purchase prices, cost of raw materials, production estimates and business projections. The determination of fair values and, consequently, of goodwill or gains resulting from low-price pur- chases is subject to various assumptions and judgments, so changes could result in different impacts on results. Under the terms defined by IFRS 3 - Business Combinations, if the initial purchase price of the assets and liabilities acquired (“Purchase price allocations”) is identified as provisional, the acquiring entity must, in the 12-month period following the busi- ness combination, allocate the purchase price to the fair values of the assets and liabilities acquired. These adjustments with an impact on the amounts of goodwill previously recorded determine the restatement of comparative information, with the respective effect being reflected in the headings of the statement of financial position, with reference to the date on which the business combination took place. When recording concentration transactions involving entities under the Group’s control, assets and liabilities are valued at their book value, with no impact on results being calculated. 407