IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 Use of natural resources The Ibersol Group depends on the use of natural and energy resources for its op- eration, but is aware of the impacts that events such as extreme drought and price volatility in the energy market can have on its operation and results, therefore it main- tains internal policies and specific initiatives for the use more efficient use of these resources. Furthermore, the Ibersol Group respects standards and good storage, han- dling and distribution practices of food raw materials and non-food, maintaining ro- bust monitoring, segregation and traceability procedures, that help to minimize food safety and reputational risks. 4. Operational Performance 4.1. Revenue Accounting policies Revenue is measured at the amount the entity expects to be entitled to receive un- der the contract with the customer. Recognition The revenue recognition model is based on five analytical steps, in order to deter- mine when revenue should be recognized and the amount to recognize: 1) Identify the contract with the customer; 2) Identify the performance obligations; 3) Determine the transaction price; 4) Allocating the transaction price; and 5) Revenue recognition. Revenue is recognized only when the performance obligation is satisfied, which de- pends on whether the performance obligations are satisfied over time or whether control over the good or service is transferred to the customer at a point in time. Revenue is recognized as follows: Sale In Group’s sales of goods, there is only one performance obligation and therefore revenue is recognized immediately upon delivery of the goods to the customer. A performance obligation corresponds to a commitment to deliver goods or services to customers that are distinct from each other. Contracts with customers in which a third entity is involved, namely at the level of deliverers (home delivery), the Group assesses its relationship between agent and principal, having concluded that, with respect to the performance obligation of de- livery of goods, it acts as agent, since this performance obligation is of the respec- 417