IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements 8.5. Cash and bank deposits Accounting policies Cash and cash equivalents Cash and cash equivalents include amounts recorded in the statement of financial position with a maturity of less than three months from the balance sheet date, which include cash and available funds at credit institutions. It also includes other short-term, highly liquid investments, with an insignificant risk of change in value and convertible into cash, as well as mandatory demand deposits with the Bank of Portugal in order to satisfy the legal requirements for minimum cash reserves. Statement of cash flows The consolidated statement of cash flows is prepared using the direct method, through which cash receipts and payments from operating, investing and financing activities are disclosed. Operating activities include receipts from customers, payments to suppliers, payments to staff and others related to operating activity, namely income tax. Investment activities include, namely, acquisitions and disposals of investments in affiliated companies, payments and receipts arising from the purchase and sale of assets and receipts of interest and dividends. Financing activities include payments and receipts relating to loans obtained, lease agreements, interest paid and dividend payments. As at 31 December 2024 and 2023, the breakdown of cash and cash equivalents was as follows: dec/ 2024 dec/ 2023 Cash 693 203 572 210 Bank deposits 139 966 081 187 966 632 Cash and bank deposits in the balance sheet 140 659 284 188 538 842 Cash and cash equivalents on the cash flow statement 140 659 284 188 538 842 There are no significant balances of cash and cash equivalents unavailable for use by the Ibersol group. Of the total cash and cash equivalents as at 31 December 2024, 3,132,008 euros (3,882,246 euros in 2023) are deposited in Angola, with restrictions on their use outside the country, namely authorization from the BNA and access to the purchase of currency. 444