IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 8. Financing 8.1. Equity 8.1.1. Share capital Accounting policies Basic shares are classified in equity when paid. Incremental costs directly attributable to issuing new shares or options are shown in equity as a deduction, net of taxes, from inflows. When any Group company acquires shares in the parent company (treasury shares), the amount paid, including directly attributable costs (net of taxes), is deducted from the equity attributable to holders of equity in the parent company until the shares are cancelled, reissued or disposed of. When such shares are subsequently sold or reis- sued, any proceeds, after deducting directly attributable transaction costs and taxes, are reflected in the shareholders’ equity of the equity holders of the company. As decided at the Annual General Meeting of 26 May 2023, in June 2023 the company reduced its share capital from 46,000,000 euros to 42,359,577 euros, by cancelling 3,640,423 own shares, in order to release excess capital. On 31 December 2023, Ibersol’s share capital was fully subscribed and paid up, and was represented by 42,359,577 registered shares with a nominal value of 1 euro each. 8.1.2. Own shares Under the terms of the resolution approved at the General Meeting of 26 May 2023, Ibersol SGPS, SA reduced its capital in 2023 from 46,000,000 euros to 42,359,577 euros, by cancelling 3,640,423 own shares acquired for 11,410,227 euros. Under the buy-back program approved at the same General Meeting, 477,490 own shares were acquired until 31 December 2023, at an average price of €6.79 and repre- senting 1.1272% of the share capital. On 31 December 2023, the company held 477,491 own shares acquired for 3,244,008 euros. 8.1.3. Reserves and retained earnings Currency conversion reserve The currency conversion reserve corresponds to the accumulated amount related to the appropriation by the Group of exchange rate differences resulting from the trans- lation of the financial statements of subsidiaries operating outside the Euro zone. Legal reserve Commercial legislation establishes that at least 5% of the annual net income must be allocated to reinforce the legal reserve until it represents at least 20% of the share capital. This reserve cannot be distributed except in the event of liquidation of the company. It may, however, be used to absorb losses, after the other reserves have been exhausted, or incorporated into the capital. 469