IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 Simulating, based on the figures for 31 December 2022, an additional devaluation of the AKZ against the USD and the EUR in the order of 10% or 15%, keeping everything else constant, the impact on the Group’s Equity would be 1.6 million euros and 2.5 mil- lion euros (106 thousand euros and 905 thousand euros, in 2021), respectively. 7.2. Interest rate risk Historically, with the exception of Angola Treasury Bonds, the Group has no significant interest-earning assets. Therefore, profit and cash flows from the investment activity are substantially independent of changes in the market interest rate. With regard to Angolan State Treasury Bonds, the interest is fixed, so there is no risk either. As a result of the sale of the Burger King restaurants, on 30 November, the Group on 31 December had Time Deposits with maturities of up to 3 months in the amount of 165 million euros. Until 30 November 2022, the Group’s main interest rate risk stems from liabilities, namely from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow risk associated with interest rates. Borrowings issued at fixed rates expose the Group to fair value risk associated with interest rates. With the current level of interest rates, the Group’s policy is, for longer-term financing, to set interest rates at around 50% of the outstanding amount. Borrowings in the amount of 29,4 million euros were contracted at a fixed rate. Based on simulations carried out on 31 December 2022, an increase of over 100 basis points in the interest rate, keeping everything else constant, would have a negative impact on the net income for the period of 514 thousand euros (522 thousand euros, in 2021). 7.3. Credit risk The Group’s main activity is carried out with sales paid in cash, debit or credit card (meal cards, etc.) or other type of electronic payment, so the Group does not have relevant concentrations of credit risk. In door-to-door sales through aggregators, they charge customers and transfer the money per weekly summary within a period of eight or fifteen days. With regard to customers, the risk is limited to the Catering business and sales of goods and services to franchisees, which represent just 7.3% of consolidated turnover. The Group has policies that ensure that credit sales are made to customers with an appropriate credit history. The Group has policies that limit the amount of credit that customers have access to, and there is no information on the rating assigned to these entities. Credit situations overdue for more than 30 days are subject to an analysis of future losses based on historical information and taking into account the commercial relationship established as well as the existing real guarantees, with adjustments being recognized for impairment losses. 445