IBERSOL | Integrated Management Report - 2024

Individual Financial Statements 7.3. Cash and bank deposits Accounting policies Cash flow statement The cash flow statement is prepared using the direct method, which discloses cash receipts and payments from operating, investing and financing activities. Operating activities include receipts from customers, payments to suppliers, payments to staff and others related to operating activities, namely income tax. Investing activities include, in particular, acquisitions and disposals of investments in subsidiaries, 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 contracts, interest paid and dividend payments. Cash and cash equivalents Cash and cash equivalents comprise amounts recorded in the statement of financial position with a maturity of less than three months from the balance sheet date, including cash and deposits with credit institutions. It also includes other short-term, highly liquid investments with insignificant risk of change in value and convertible into cash, as well as demand deposits with the Bank of Portugal which are mandatory in order to meet legal minimum cash reserve requirements. At 31 December 2024 and 2023, the breakdown of cash and cash equivalents was as follows: dec/ 2024 dec/ 2023 Bank deposits 462 159 680 587 Term deposits 56 500 000 62 500 000 Cash and cash equivalents on the cash flows statement 56 962 159 63 180 587 There are no significant balances of cash and cash equivalents unavailable for use by the Company. 504