IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements 4 Business combinations See note 6.1 to the consolidated financial statements The Risk Our response to the identified risk During the 2024 financial year, Ibersol Group completed the acquisition and acquired control of Medfood Invest, S.L., which is the sole shareholder of New Restaurants of Spain, S.A., that operates around 30 KFC restaurants in Spain. The consideration transferred amounted to approximately 13.4 million euros. In accordance with IFRS 3 – Business Combinations, the Group applied the requirements of the acquisition method in accounting for this transaction. To this end, the assets acquired and liabilities assumed were measured at fair value on the acquisition date, at a total net value of 12.4 million euros, with goodwill of 4.2 million euros being recognised. This business combination is considered a key audit matter given the estimates and judgements made by management in applying the acquisition method, particularly regarding the allocation of the consideration transferred to the identifiable assets and liabilities and the measurement of its fair values. Our audit procedures included, amongst others, those that we describe below:  We have assessed the design and implementation of the main controls implemented by the Group in this area and the adequacy of the accounting policies adopted, considering the requirements set out in the standard;  We have obtained an understanding of the transaction and reviewed the relevant agreements and contracts and confirmed, based on the terms of those agreements and contracts, the correct application of the requirements of IFRS 10 – Consolidated Financial Statements and IFRS 3 – Business Combinations;  We have obtained and analysed the purchase price allocation exercise performed by Management, assessing the methodological approach and identifying the completeness of the assets and liabilities identified;  We have engaged our valuation specialists in reviewing the methodologies and assumptions used to determine the fair values of the assets acquired and liabilities assumed;  We have tested the integrity and mathematical accuracy of the valuation models adopted and the calculation of the purchase price allocation and resulting goodwill; and  We have assessed the adequacy of the respective disclosures to the financial statements, in accordance with the applicable accounting framework. 464