IBERSOL | Integrated Management Report | 2025

CORPORATE GOVERNANCE REPORT Financial Risks Foreign exchange risk The Ibersol Group adopts a natural hedging policy regarding exchange rate risk, using financing in local cur- rency. The exposure to exchange rate risk is limited, since the Group is mainly present in the Iberian market and has little volume of purchases outside the euro zone. The most relevant exchange rate risk comes from operations in Angola, where devaluation of the Kwanza could affect the value of assets and the Group’s results. However, the financing contracted by the Angolan subsidiaries is denominated in the local curren- cy and the Group monitors the credit balances in foreign currency on a monthly basis and adopts a partial hedge through Treasury Bonds of the Republic of Angola, denominated in foreign currency. Interest rate risk The Group has interest bearing assets of significant amount arising from Angolan Government Treasury Bonds denominated in US dollars and, on the other hand, from term deposits in the amount of € 90.2 mil- lion as at 31 December. These investments are spread across the largest banks in the Portuguese market and have maturities of no more than 180 days. Without the cash surpluses, the main interest rate risk would derive from liabilities, namely long term loans. Loans issued at variable rates expose the Group to cash flow interest rate risk, and loans issued at fixed rates expose the Group to fair value interest rate risk. The Group’s policy, for longer term financing, is to fix interest rates on up to 50% of the amount outstanding. Credit risk The Ibersol Group has no relevant credit risk concentrations, since its main activity is carried out with sales paid in cash or by debit or credit card. However, in relation to the Catering and Franchising businesses that represent about 4.4% of the consolidated turnover, the Group regularly monitors the accounts receivable, controlling the credit granted, analysing the ageing and recoverability of the receivables and the customers’ risk profile. In relation to home sales through Aggregators, the Group receives the money within eight or fifteen days. 286