IBERSOL | Integrated Management Report | 2025

Individual Financial Statements In 2024, the average cost of borrowing was 1.6%. At 31 December 2025, the Company had 15.3 million euros in unissued commercial paper and unused credit lines. Additionally, there are contracts in which the respective creditors have the possibility of considering the debt due in the event of a change in shareholding control. At 31 December 2025, they were not being used. 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 2025 and 2024, the breakdown of cash and cash equivalents was as follows: 532