IBERSOL Annual Report 2018

Consolidated Financial Statements The main source of the Group’s exposure arises from the investment outside the euro area of operation that develops in Angola, although it is still small is growing and consequently to gain weight in the group activity. The reduction of oil prices is to lead to a shortage of foreign currency in Angola by the devaluation of the kwanza is a risk to consider. The financing of the Angolan subsidiary in foreign currency in the amount of $ 500.000, does not have large exposure due to the reduced amount. The remaining financing concerning Angolan subsidiaries are denominated in the local currency, the same in which the income is generated. In 31 December, 2018 and 2017 currency exchange risk was as follows: Year 2018 Kwanzas Equivalent EUR USD Equivalent EUR Financial Assets Cash and Bank deposits 944.565.782 2.675.955 449.172 402.571 Treasury bonds 7.253.661.152 20.549.622 - - Others 27.412.587 77.660 5.455 4.889 8.225.639.520 23.303.237 454.628 407.460 Financial Liabilites Loans 2.565.000.000 7.266.645 500.000 448.125 Suppliers 170.684.625 483.550 2.947.444 2.641.647 Others 3.610.430 10.228 - - 2.739.295.055 7.760.423 3.447.444 3.089.772 Year 2017 Kwanzas Equivalent EUR USD Equivalent EUR Financial Assets Cash and Bank deposits 651.974.031 3.516.748 5.523 5.116 Treasury bonds 4.261.524.035 22.986.661 - - Others 24.846.403 134.021 1.938 1.795 4.938.344.469 26.637.430 7.461 6.912 Financial Liabilites Loans 1.981.500.000 10.688.211 1.000.000 926.426 Suppliers 436.005.642 2.351.814 1.764.665 1.634.831 Others 2.798.103 15.093 312.199 289.229 2.420.303.745 13.055.118 3.076.863 2.850.486 234