IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 7.1.3. Reserves and retained earnings Legal reserves Commercial legislation establishes that at least 5% of the annual net profit must be set aside to reinforce the legal reserve until it represents at least 20% of the share capital. This reserve is not distributable except in the event of the company’s liquidation. It can, however, be used to absorb losses, once the other reserves have been exhausted, or incorporated into the share capital. In the periods presented, the legal reserve has not been constituted by its maximum limit. Retained earnings and other reserves This item corresponds to reserves created through the transfer of profits from previous periods, the reduction of share capital and other movements. The amount of reserves and retained earnings available amounts to 183,029,661euros. The reserves relating to own shares held by Ibersol (2,696,711 euros) are not available for distribution. 7.1.4. Dividends In 2024 and 2023, 20,755,209 euros and 29,651,704 euros were distributed to shareholders, respectively. 7.1.5. Earnings per share Accounting policies Earnings per share can be expressed in terms of “basic earnings” or “diluted earnings”. Basic Basic earnings per share are calculated by dividing the profit attributable to share- holders by the weighted average number of ordinary shares issued during the period, excluding ordinary shares acquired by the company and held as treasury shares. Diluted Diluted earnings per share are calculated by dividing the profit attributable to share- holders, adjusted for dividends on convertible preference shares, interest on convert- ible debt and gains and expenses resulting from the conversion, by the weighted aver- age number of ordinary shares issued during the period plus the average number of ordinary shares issuable on the conversion of dilutive potential ordinary shares. On 31 December 2024 and 2023, basic and diluted earnings per share were calculated as follows: 501