IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements As at 31 December 2024, the Group had 27 million euros in commercial paper not issued and credit lines contracted but not used. Some of the Ibersol Group’s borrowings contracts and commercial paper programs with financial institutions, corresponding to a total amount owed on 31 December 2024 of 9 million euros, include Financial Covenants (i.e. 31% of the total amount of loans outstanding on that date), with compliance assessed on an annual basis. Such covenants can be summarized as follows: Financial Covenants (consolidated ratios) ND/EBITDA < 4,5x Equity/Assets > 30% In the current financing agreements in Spain, financial covenants were not established. Additionally, there are contracts in which the respective creditors have the possibility to consider the debt overdue in the event of a change in shareholder control, however none of that debt was being used on 31 December 2024. 8.3. Lease liabilities Accounting policies Liabilities with leases are initially measured based on the present value of the lease liabilities at that date. Subsequently, the lease liability is adjusted for the effect of inter- est and lease payments, as well as possible modifications and remeasurements of the lease agreements. Lease payments include payments made to a lessor for the right to use an underlying asset during the lease term (excluding variable lease payments) and also include the exercise price of a call option, if there is an expectation reasonable for the Group to exercise it, and the amount of penalties for termination of contracts, if it is reasonably certain that the Group will trigger the possibility of termination. To calculate the present value of lease payments, in cases where it is not possible to obtain the implicit interest rate, the Group uses the incremental financing rate, which represents the interest rate that the Group would have to pay to borrow for a similar period, and with a similar guarantee, the funds necessary to obtain an asset of equiva- lent value to the asset under right of use in a similar economic context. The Group determines the lease term as the non-cancellable period of the lease, tak- ing into account the periods covered by an option to extend the contract, if it is rea- sonable for the Group to exercise it, or any periods covered by an option to terminate. the contract, if it is reasonably certain that the Group will not exercise it. The lease term is thus comprised between the minimum corresponding to the non-cancellable 436