IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements In these contracts it is normal to pay an “Initial Fee” at the beginning of each con- tract and a “Renewal Fee” at the end of the initial period, in addition to an operating and marketing royalty on sales made. 3.3. Quality and food safety risksr Ibersol Group’s quality department is responsible for identifying and ensuring con- trol of food quality and safety risks. Thus, various prevention and control measures are implemented for different areas of the Group’s business. In this context, some measures stand out, such as: ensuring the implemented Traceability System and the control of the Production Process in the units, through the HACCP (Hazard Analysis & Critical Control Points) System. 3.4. Price Risk Significant changes in commodity prices are largely reflected in the selling prices of products and monitored by the market. However, when commodity price increases are much higher than general inflation, these changes are gradually impacted in sell- ing prices, and in the short term there may be a degradation of the gross margin. 3.5. Environmental risks Environmental impact The Ibersol Group’s management of environmental risks is largely based on the implementation and certification of management systems, such as ISO 14001. In particular, the main flows of packaging materials are monitored and reporting ob- ligations are met with the entities licensed to manage and promote the selection, collection and recycling of packaging in the Portuguese and Spanish markets. Climate change Climate change is increasingly affecting agricultural production in various markets, leading to food shortages, price volatility and disruptive events in global supply chains. To help mitigate these situations and guarantee the continuity of its activi- ties, the Ibersol Group is working on reducing its greenhouse gas emissions and adjusting its sourcing strategies. Extreme events The increasingly frequent occurrence of extreme natural events threatens people’s safety and business continuity. The Ibersol Group has ISO certifications that guaran- tee high standards of occupational health and safety, as well as complying with all legal rules on physical safety and civil protection. Use of energy and natural resources The Ibersol Group depends on the use of energy and natural resources, namely elec- tricity, gas and water, for its operations. The Group is aware of the impacts that fac- 376