IBERSOL • 2023 Integrated Management Report

Consolidated Financial Statements 8.4. Treasury Bonds Accounting policies Debt instruments at amortized cost Debt instruments are measured at amortized cost if the following criteria are met: • The asset is held to receive its contractual cash flows; It is • The contractual cash flows from the asset represent payments of principal and interest only. Financial assets included in this category are initially recognized at fair value and sub- sequently measured at amortized cost. Ibersol Angola operates with a large component of imports that generate liabilities in foreign currency. In order to reduce the exchange rate risk and face Kwanza variations, the company adopted the policy of holding assets indexed to the USD in an amount, at least, of the same order of magnitude as the liabilities. In addition to holding USD-indexed Treasury Bonds, the company acquired non-ad- justable Treasury Bonds (denominated in AKZ) for the financial application of sur- pluses. The amount of financial assets refers to investments in Treasury Bonds of the Angolan State. The separation by maturity is as follows: dec/ 2023 dec/ 2022 Current Non current Total Current Non current Total Angolan Treasury Bonds 1 067 733 666 272 1 734 005 607 662 2 771 741 3 379 403 Accumulated impairment losses -72 244 -81 022 -153 266 -15 937 -294 608 -310 545 Total 995 489 585 250 1 580 739 591 725 2 477 133 3 068 858 As there has been no significant increase in credit risk since the initial recognition of Treasury Bonds, expected losses within a period of 12 months were considered. The indices used for Probability of Default and Loss Given Default of Angolan Treasury Bonds are in accordance with Moodys and S&P publications, the probability of default considered was 7.9% and the loss given default considered to be 59%. 478