IBERSOL | Integrated Management Report | 2025

INTEGRATED MANAGEMENT REPORT 2025 Balances and gains arising from transactions between group companies are eliminated. Unrealized losses are also eliminat- ed unless the transaction reveals evidence of impairment of a transferred asset. The accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group. 2.1.5.2. Associates and joint ventures The Group’s interests in entities in which it exercises control jointly with other partners, i.e. entities in which control means that decisions have to be taken unanimously between the parties sharing control, are recognized, by applying IFRS 11, from the date on which joint control is acquired. The Group includes its share of the assets and liabilities in a line in the Consolidated Statement of Financial Position and the expenses and income of the joint venture in a line in the Consolidated Statement of Profit and Loss and Other Comprehensive Income. Balances and transactions between Group companies and entities where the Group exercises control jointly with other partners are not eliminated in proportion to the control attributable to the Group. Financial investments in associated companies are investments in which Ibersol exercises significant influence, but in which it does not have control or joint control. Significant influence, presumed when the voting rights are equal to or greater than 20%, means the power to participate in the entity’s policy decisions, without, however, exercising control or joint control. The existence of significant influence by the Group is normally demonstrated in one or more of the following ways: • Representation on the Executive Board of Directors or equivalent governing body; • Participation in policy-making processes, including participation in decisions about dividends or other distributions; • Existence of material transactions between the Group and the investee; • Exchange of management personnel; and • Providing essential technical information. The entities in which the group exercises control jointly with other partners or in which it exercises significant influence are detailed in note 1.2. 373