IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 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. However, since the end of 2022, following the sale of the Burger King restaurants, the group had Term Deposits of 144 million euros on 31 December 2023. The Group main interest rate risk comes from liabilities, namely long-term loans. Loans issued at variable rates expose the Group to the cash flow risk associated with the interest rate. Loans issued at fixed rates expose the Group to the fair value risk associated with the interest rate. 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 16.4 million euros were contracted at a fixed rate. Based on simulations carried out on 31 December 2023, 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 214 thousand euros (514 thousand euros, in 2022). 7.3. Credit risk The Group main activity is sales paid for by cash or debit or credit card, so there are no significant concentrations of credit risk. In home sales through aggregators, these collect from customers and transfer the money by weekly summary within eight or fifteen days. With regard to customers, the risk is confined to the Catering business and loans to Franchisees, which represent around 7.4 % of consolidated turnover. The Group regu- larly monitors accounts receivable in order to: · Controlling credit granted to customers; · Analyzing the ageing and recoverability of receivables; · Analyzing the risk profile of customers. 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 impair- ment losses. The Group’s available cash essentially includes deposits resulting from the cash gen- erated by operations and the respective deposits in current accounts. Occasionally there may be funds resulting from financing awaiting application, as well as the prod- uct of a non-recurring operation such as the sale of Burger King. Excluding these amounts, the value of financial investments at 31 December 2023 is reduced, with the 465