IBERSOL | Integrated Management Report | 2025

INTEGRATED MANAGEMENT REPORT 2025 6. Financial risk management The company’s activity is exposed to a variety of financial risk factors, namely interest rate risk and price risk, credit risk, liquidity risk and capital risk. The company has a risk management program which focuses its analysis on the financial markets, seeking to minimize the potential adverse effects of these risks on the company’s financial performance. Financial risk management is carried out by the Finance Department, based on policies approved by the Board of Directors. Treasury identifies, evaluates and hedges financial risks in close cooperation with Ibersol’s operating units. The Board of Directors provides principles for risk management as a whole and policies covering specific areas, such as exchange rate risk, interest rate risk, credit risk and the investment of excess liquidity. 6.1. Interest rate risk Ibersol is exposed to interest rate risk on time deposits made with cash surpluses for periods not exceeding 180 days The company is exposed to interest rate risk in relation to loans granted to subsidiaries and long-term loans obtained. Loans issued at variable rates expose Ibersol to cash flow risk associated with the interest rate. Loans issued at fixed rates expose the company to the fair value risk associated with the interest rate. The company has no outstanding loans, and any change in interest rates will only affect interest receivable from investments, which typically have terms between 30 and 90 days. 6.2. Credit risk The credit risk essentially results from the receivable balances resulting from loans to subsidiaries. The credit risk is assessed by the company’s Financial Department, taking into account the history of the commercial relationship, its financial situation, as well as other information that can be obtained through Ibersol’s business network. Credit limits are regularly analysed and revised if necessary. 525