IBERSOL • 2023 Integrated Management Report

STRATEGIC FRAMEWORK pansion, also benefiting from a reduction in production costs, lower inflation, an increase in purchasing power and the emergence of new processed product concepts, especially important in catering services such as those of the Ibersol Group. Meanwhile, milk and dairy production has been relatively stable glob- ally and in Europe, despite a clear decline in consumption of dairy products in the Portuguese market in recent years. As for beef, the trend points to a slight decrease in production levels in Europe com- pared to 2023 (-0.47%) due to a decrease in cattle stocks and a reduc- tion in profit margins due to rising production costs and new Europe- an regulations. In turn, pork production will tend to decrease globally in 2024, with resilient demand and some associated diseases putting pressure on supply and price levels. Energy market According to the International Energy Agency (IEA), in 2023 there was a general reduction in electricity consumption in developed countries, due to an unfavourable macroeconomic environment and still high inflation (resulting from all the trade restrictions and effects associated with the geopolitical context), which slowed global consumption to +2.2% (compared to +2.4% in 2023). However, the outlook is for faster growth in the coming years, at an average of +3.4% per year until 2026, mainly driven by developing countries, but to which developed countries are also contributing, mainly through the expansion of electric mobility and technological services (data centre operations, artificial intelligence services, crypto-currencies, etc). In Europe, in particular, electricity consumption is not expected to reach 2021 levels again until 2026. Electricity prices, along with those of other energy sources, fell significantly in 2023, although they are still higher than in 2019. This trend is expected to continue in 2024, with an increase in the proportion of energy generated from renewable sources. In this context, consumption of natural gas and other non-renewable sources in Europe has been falling, while stocks and resilience have been 68