IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 Financial risks Exchange rate risks The Ibersol Group follows a policy of natural coverage in this field, resorting to funding in local currency. Since it is mostly present in the Iberian market, bank loans are generally in euros and the purchase volume outside of the Eurozone does not take on relevant propor- tions. The main source of exposure comes from investment outside of the Eurozone, related to operations in Angola, which bear little weight in the Group’s overall activity. Economic imbalances in Angola have led to the devaluation of the Kwanza, which is a risk that must be taken into account. Loans contracted by Angolan branches are expressed in local cur- rency, the same in which income is generated. The Group adopted a policy of monthly monitoring of credit balances in foreign curren- cy and their partial coverage with the acquisition of Treasury Bonds from the Republic of Angola, which are pegged to the USD. In 2023 the purchase of these bonds became more expensive, since no new series of bonds have been issued. At the same time, it has become more difficult to obtain all the foreign currency needed to pay for imported products, which has increased the credit held by Portuguese subsidiaries with Angolan subsidiaries. Interest rate risks Historically, with the exception of Angolan State Treasury Bonds, the Ibersol Group does not have remunerated assets with significant in- terest. Therefore, investment activity profits and cashflow are sub- stantially independent from fluctuations of market interest rates. Re- garding the Angolan State Treasury Bonds, pegged to the American Dollar, interest rates are fixed, so there is no risk there either. However, since the end of 2022, following the sale of the Burger King restaurants, the group had Term Deposits with maturities of up to three months totalling XXX million euros as of 31 December. The main interest rate risk for the Ibersol Group is in its liabilities, namely long-term loans. Loans issued with variable rates expose the Group to cashflow risks associated to the interest rate. Loans issued 63