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ER - LIBURNIA RIVIERA HOTELI d.d. - Financial report - 2024, Fourth quarter, Unrevised, Unconsolidated.pdf

Company: LIBURNIA Riviera Hoteli d. d. Date: 2025-02-28 Language: English Register to download
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# BUSINESS RESULTS 1/1/2024 - 31/12/2024 LIBURNIA RIVIERA HOTELI d.d.

Opatija, February 2025

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KEY MESSAGES 3

ABOUT LIBURNIA 5

SIGNIFICANT BUSINESS EVENTS 5

COMPANY RESULTS 6

RISKS IN THE COMPANY'S BUSINESS 9

CORPORATE GOVERNANCE 11

STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT BOARD 13

FINANCIAL STATEMENTS ACCORDING TO TFI-POD 14

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# KEY MESSAGES

### BUSINESS RESULTS

Liburnia Riviera Hoteli\* delivered record operational and financial performance in 2024. With a robust annual revenue growth of +9%, reaching EUR 64.1 million, the Company achieved its highest-ever operating profit (EBITDA) per accommodation unit and a net profit of EUR 4.1 million. Simultaneously, through prudent management of its balance sheet and cash flows, the Company successfully reduced its debt levels by 25%, bringing the net debt to EBITDA ratio down to 1.9x.

The outstanding results achieved in 2024 highlight the dedication of all our employees in strengthening the competitiveness of Liburnia's business model, with a particular focus on fostering sustainable growth and the further development of our tourism portfolio. Guided by the vision of positioning Liburnia as the most progressive tourism company in the region, we launched key transformational initiatives throughout 2024 aimed at enhancing hotel products and services, optimizing business processes, implementing new technologies, and further developing our employees. These strategic changes serve as a strong foundation for future growth, the expansion of our tourism portfolio, and the advancement of the destinations in which we operate. Our ultimate goal is to create new value for all stakeholders while continuously elevating Liburnia's excellence in the hospitality industry.

As part of our strategic transition to year-round hotel operations, we successfully opened seven hotels in 2024, maintaining near-continuous operations throughout the year. This achievement positions us as a leader among Croatian hospitality chains in terms of year-round hotel offerings. Our enhanced business model has driven a 5% increase in accommodation units sold and a 3% rise in the average daily rate, resulting in total sales revenue of EUR 60.6 million (8% growth compared to 2023).

At the same time, adjusted operating profit (EBITDA) increased by EUR 1 million, reaching EUR 14.7 million. This significant 7% growth was achieved despite macroeconomic challenges, operational and inflationary cost pressures, and unfavorable weather conditions in September, one of the key months for Liburnia's business performance. The rise in operating costs was primarily driven by initiatives aimed at ensuring quality, long-term stability, and business growth, particularly through planned improvements in employee benefits. At the peak of the tourist season, the workforce reached 1,143 employees, reflecting a 6% increase.

#### HUMAN RESOURCES MANAGEMENT

 

Our vision is to position Liburnia as the most progressive tourism company in the region, focusing on high service quality and guest satisfaction. Thus, Liburnia continuously works to increase its competitiveness on the labor market: following the launched transformational initiatives, it adapts to changes in tourism to ensure stability, quality and long-term business sustainability. The Company valorizes its employees as a key resource, so in the period of high demand, the planned number of employees was secured. It was achieved through the continued improvement of benefits for permanent and seasonal workers: increase of the basic salary, seasonal bonuses and other income. The Company is also actively developing training and reward programs for excellence, commitment and outstanding results.

<sup>\*</sup> Hereinafter referred to as: "the Company" or "Liburnia".

#### INVESTMENTS

During 2024, there were investments made to improve the quality of services and safety and prepare the properties and infrastructure for the current and future business years. A project worth noting was the continued renovation work on the exterior façade of the Kvarner Hotel, in accordance with its historical value and conservation conditions. The second phase included works on the southern (sea) side of the hotel, the construction and conservation procedures, as well as the exterior lighting project. As in the first phase, special materials equivalent to those from the original construction of the hotel were used. Other investments that were completed include the following: the relocation and decoration of the reception area overlooking the outdoor pool, the launch and decoration of the wellness & spa zone. The investment focus was to increase guest satisfaction and enrich guest experience. Other projects included the arrangement of the sunbathing area of the outdoor swimming pool of the Marina Hotel, new floor installations in the restaurant of the Ičići Hotel, the renovation of the roof at the Excelsior Hotel and Villa Amalia, the reconstruction of the floor installations in the kitchen of the Istra Hotel, and numerous other capital improvements. Investments in hardware and software solutions for digital transformation and optimization of business processes, as well as projects aimed at improving energy efficiency also continued in the reporting period. The total investment amount in this period was EUR 3.9 million. and the trend of "last-minute" bookings.

#### OUTLOOK

The record sales results achieved in 2024 met the expectations for the tourism year. The Company continues to experience stable demand for its tourist capacities in 2025, as reflected in reservations, which show 2% \* increase for the period from March to December 2025 compared to the same period in 2024.

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<sup>\*</sup> Note: final effects of incoming new reservations cannot be predict with certainty given the cancellation policies

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# ABOUT LIBURNIA

Liburnia Riviera Hoteli d.d. is one of the largest tourism companies in Croatia, with annual revenues exceeding EUR 60 million. Opatija, also known as the 'Pearl of the Adriatic' or 'Queen of Tourism', represents an exclusive Adriatic resort with a long history of tourism dating back to 1844, and Liburnia's tourism portfolio has been highly integrated into international tourist markets for more than 100 years. Liburnia has more than 2,100 keys in its operational tourism portfolio where in its 13 hotels, 2 villas, 2 apartment complexes and one camping resort it can host more than 4,800 guests per day. Catering for the perfect holiday and authentic experiences for them, there are over 1,000 employees in a high-demand period.

As the largest hotelier on the Liburnia riviera, the Company is focused on a strategy to stimulate growth and create new value, recognizing the started transformation to be the first step in building a solid ground for sustainable investments in high-value-added products, talents, innovative services and destinations, as well as an international business model.

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# SIGNIFICANT BUSINESS EVENTS

## STRENGTHENING OF COMPANY'S LIQUIDITY

In March 2024, the company concluded an agreement with Erste&Steiermärkische Bank d.d. for a two-year revolving credit facility amounting to EUR 3 million. Later, in October 2024, it finalized an agreement with OTP Bank d.d. for a one-year revolving credit of EUR 2 million. These loans are secured to ensure prudent management of working capital during times of low business activity. Furthermore, in September 2024, the Company concluded a ten-year loan agreement with Hrvatska poštanska banka d.d. in the amount of EUR 20 million to refinance the existing obligations under COVID-19 loans for working capital, thereby boosting the Company's liquidity and raising the quality of its portfolio products and services.

## COMPANY'S GENERAL ASSEMBLY

The General Assembly of the Company was held on 9 August 2024 and the following points were adopted:

- the report on the remuneration of the Management Board and the Supervisory Board of the Company for 2023 was approved together with the auditor's report on its examination;
- the achieved profit of the Company for the year 2023 in the total amount of EUR 1,401,462.30 will be used to cover losses from previous periods;
- a discharge is given to the members of the Management Board for the management of the Company's affairs in 2023 and to the members of the Supervisory Board for the supervision of the management of the Company's affairs in the year 2023;
- Grant Thornton revizija d.o.o (auditing company from Zagreb) was appointed to perform the audit of the Company in 2024.

# COMPANY RESULTS KEY FINANCIAL INDICATORS

| in EUR                     | 2023       | 2024       | '24/'23 |
|----------------------------|------------|------------|---------|
| Total revenues             | 58,944,076 | 64,351,642 | 9%      |
| Operating revenues         | 58,766,148 | 64,071,634 | 9%      |
| Sales revenues             | 55,872,129 | 60,548,159 | 8%      |
| Board revenues1            | 45,730,041 | 49,557,291 | 8%      |
| Operating expenses2        | 46,180,371 | 49,276,922 | 7%      |
| EBITDA3                    | 12,461,343 | 14,674,170 | 18%     |
| Adjusted EBITDA4           | 13,761,833 | 14,720,405 | 7%      |
| Adjusted EBITDA margin     | 23.4%      | 23.0%      | -40 bp  |
| EBIT                       | 2,648,503  | 6,903,869  | 161%    |
| EBT                        | 615,788    | 4,911,164  | 698%    |
| Net profit                 | 1,401,462  | 4,104,324  | 193%    |
|                            | 31/12/2023 | 30/12/2024 | '24/'23 |
| Net debt5                  | 37,256,252 | 27,788,473 | -25%    |
| Net debt / Adjusted EBITDA | 2.8x       | 1.9x       | -30%    |
| Cash and cash equivalents  | 6,871,496  | 9,774,100  | 42%     |

## KEY OPERATING INDICATORS

|                                  | 2023    | 2024    | '24/'23 |
|----------------------------------|---------|---------|---------|
| Number of acc. units (operating) | 2,131   | 2,131   | 0%      |
| Operating occupancy (%)6         | 67.9%   | 67.0%   | -90 bp  |
| Accommodation units sold         | 356,764 | 374,087 | 5%      |
| Overnights                       | 680,010 | 709,564 | 4%      |
| Average daily rate (in EUR)      | 128     | 132     | 3%      |
| RevPAR (in EUR)6                 | 87      | 89      | 2%      |

1 In compliance with the classification under the USALI international standard for reporting in hotel industry (Uniform System of Accounts for the Lodging Industry) board revenues include accommodation revenues and board food and beverage revenues.

2 Operating costs calculated according to the formula operating expenses - depreciation - value adjustment – provisions. 3 EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated according to the formula: profit or loss for the period + income tax + interest expenses + depreciation and amortization.

## REVENUES

During the year 2024, operating revenues were EUR 64.1 million (2023: EUR 58.8 million), up by 9% vs. last year's comparable period. The record operating revenues achieved were driven by the following:

a) sales revenues, up by 8% (EUR +4.7 million) and totaling EUR 60.5 million, mainly consisting of board revenues (EUR +3.8 million). Board revenues' growth was fueled by the earlier opening of hotels and an increase in operational days, in line with the strategy to extend the operational period and emphasize year-round operations. It's noteworthy that seven hotels are already functioning nearly throughout the entire year.

The year's beginning brought a significant synergy between sales price growth and the conversion of demand into achieved overnights. Occupancy was achieved through contracts with corporate clients, sports clubs, travel agencies, as well as the organization of numerous M.I.C.E. events and prestigious conferences. In the period of high season, the optimization of daily rate management and sales channel distribution was primarily focused on the individual channel, prioritizing sales through Liburnia's reservation center and commercial website. September experienced reduced demand due to extreme weather events in Europe. In contrast, the year's end was marked by the extended operational period of our historic hotels (Kvarner and Imperial), which enjoyed significant occupancy, especially during the Advent season. This achievement was fueled by improved overall experiences through proactive marketing initiatives and the enhancement of products, programs, and services. The outlet food and beverage segment (EUR +0.5 million; +7%) also

<sup>6</sup>Operating occupancy and RevPar are calculated based on the number of operating accommodation units whereby RevPar is calculated according to the formula: Operating occupancy (%) x Average daily rate.

<sup>4</sup> Adjusted EBITDA is calculated using the formula: EBITDA minus the result of extraordinary operations and one-off items. The result of extraordinary operations and one-off items amounted to (2023: EUR -1,300,490; 2024: EUR -46,235). 5 Net debt: long-term and short-term liabilities to banks and other financial institutions + other liabilities in accordance with IFRS 16 (leases) - cash and cash equivalents.

contributed to the significant increase in sales revenue as a result of enriching the offering and raising the quality of service in F&B outlets;

b) other operating income was EUR 0.7 million higher vs. 2023 comparable period and totaled EUR 3.5 million.

#### OPERATING EXPENSES

| in EUR                           | 2023       | 2024       | 24'/23' |
|----------------------------------|------------|------------|---------|
| Total operating expenses         | 56,294,137 | 57,404,838 | 2%      |
| Material costs                   | 22,912,028 | 22,808,328 | 0%      |
| Staff costs                      | 19,508,064 | 22,058,021 | 13%     |
| Depreciation and amortization    | 9,812,840  | 7,770,301  | -21%    |
| Provisions and value adjustments | 300,926    | 357,615    | 19%     |
| Other operating expenses         | 3,760,279  | 4,410,573  | 17%     |

Total operating expenses during the year 2024 were EUR 57.4 million, up by 2% (EUR +1.1 million). They consisted of:

- a) material costs representing 40% of total operating expenses (41% in 2023). They decreased by EUR 0.1 million and reached EUR 22.8 million mainly due to lower electricity costs after concluding a more favorable electrical energy supply contract. However, there was also a negative effect, the increase in costs of raw materials driven by business growth (+29,554 overnights, +4%) and increased advertising costs for the Company's tourism portfolio vs. last year's comparable period;
- b) the share of staff costs within total operating expenses grew (38%) vs. past comparable period (35% in 2023). The 13% growth (EUR +2.5 million) to EUR 22.1 million was primarily due to the increase in employees' benefits and satisfaction through a further tariff model improvement and other incentives and reward programs;
- c) depreciation represented 14% of total operating expenses (17% in 2023). It fell by 21% (EUR -2.0 million) to EUR 7.8 million due to the adjustment of individual depreciation groups with the expected lifetime of fixed assets;
- d) provisions and value adjustments went up by EUR 0.1 million and totaled EUR 0.4 million, mainly due to the value adjustment of fixed and current assets;
- e) other operating expenses represented 8% (7% in 2023) of total operating expenses. They grew by EUR 0.6 million and totaled EUR 4.4 million.

#### OPERATING PROFIT (EBITDA)

The adjusted operating profit (adjusted EBITDA) was EUR 14.7 million, up by EUR 1.0 million vs. the same period last year. This growth is the result of a committed effort to elevate business standards through initiated transformational initiatives aimed at maximizing and harnessing high-growth potential opportunities on the Liburnian riviera.

#### FINANCIAL RESULT

The financial result was EUR -1.8 million, up by EUR 0.1 million compared to the same period last year. Mostly, it was affected by the growth in other interest income generated on term deposits, thanks to a higher level of available cash during the year.

### PROFIT BEFORE TAX / NET PROFIT

The profit before tax rose by EUR 4.3 million, totaling EUR 4.9 million. This increase was mainly driven by a EUR 2.2 million rise in unadjusted operating profit (EBITDA) and a reduction in depreciation expenses, adjusted to reflect the expected useful life of fixed assets, amounting to EUR 2.0 million. The net profit reached EUR 4.1 million, representing an increase of EUR 2.7 million compared to the same period last year.

## ASSETS AND LIABILITIES

| in EUR                                 | 31/12/2023  | 31/12/2024  | '24/'23 |
|----------------------------------------|-------------|-------------|---------|
| Fixed assets                           | 110,520,325 | 105,717,081 | -4%     |
| Current assets                         | 11,616,892  | 14,048,313  | 21%     |
| Prepaid expenses and accrued<br>income | 142,164     | 194,087     | 37%     |
| TOTAL ASSETS                           | 122,279,381 | 119,959,481 | -2%     |
| Capital and reserves                   | 69,470,093  | 73,574,417  | 6%      |
| Provisions                             | 1,471,340   | 1,351,736   | -8%     |
| Long-term liabilities                  | 31,854,542  | 32,462,413  | 2%      |
| Short term liabilities                 | 19,351,598  | 12,340,736  | -36%    |
| Accruals and deferred income           | 131,808     | 230,179     | +75%    |
| TOTAL LIABILITIES                      | 122,279,381 | 119,959,481 | -2%     |

As at 31/12/2024, the total value of the Company's assets was EUR 120.0 million, down by 2% vs. 31 December 2023. Fixed assets were EUR 105.7 million, decreasing by EUR 4.8 million mostly because of the following: i) calculated depreciation totaling EUR 7.8 million, ii) investments in maintaining and improving the quality of products and services totaling EUR 3.9 million and iii) a decrease in deferred tax assets by EUR 0.8 million based on utilized tax loss carryforwards and other temporary differences.

Total current assets increased by EUR 2.4 million and totaled EUR 14.0 million. They increased by 21% vs. 31/12/2023 mainly due to a EUR 2.9 million higher cash position (31/12/2024: EUR 9.8 million) mostly resulting from a strong cashflow from operating activities. On the other hand, receivables fell by EUR 0.5 million thus showing a better charging pace.

Total capital and reserves were EUR 73.6 million and they increased by 6% mainly due to a EUR 4.1 million realized net profit during the year 2024.

Total long-term liabilities were EUR 32.5 million and were up by EUR 0.6 million due to the refinancing of one part of credit liabilities towards banks during a 10-year period and adding liquidity to improve service and product quality in the Company's hospitality portfolio.

Total short-term liabilities were EUR 12.3 million, down by 36% vs. last year's end. The EUR 7.0 million decrease in short-term liabilities was mainly due to lower liabilities towards banks and other financial institutions by EUR 7.1 million due to the mentioned refinancing of one part of long-term credit liabilities. Accruals and deferred income went up by EUR 0.1 million and totaled EUR 0.2 million.

# RISKS IN THE COMPANY'S BUSINESS

The tourism industry has been changing rapidly over recent years. This is a result of changes in travel patterns, the emergence of low-cost airlines and various online agencies, new technologies and changes in booking trends, as well as in the very expectations of guests. Considering that the tourism industry represents a business of global proportions, it is very closely linked to the real and financial economy, macroeconomic and geopolitical aspects, and environmental sustainability, the Company assesses the probability of the occurrence of a particular risk at the macro and micro level for each segment of the business and its potential consequences, or impact on the business processes and systems of Liburnia.

Risk management aims to further encourage the creation of sustainable value and to assure the Company's many stakeholders. The risk management process consists of the following steps: a) identification of potential risks in the business, b) analysis and assessment of the occurrence of identified risks, c) defining activities and responsibilities for effective risk management, d) supervision and monitoring of measures taken to eliminate and/or reduce the occurrence of risk events, and e) exchange of information on risk management results.

The Company, like most companies in the tourism sector, is exposed to several risks in daily business that can be divided into the following categories:

### 1) FINANCIAL RISKS

Financial risks include interest rate, credit, price and liquidity risk.

Part of the debt with banks contracted at variable interest rates exposes the Company to the risk of changing interest outflows at cash flow, while credit risk arises from money, term deposits and trade receivables. Credit risk is minimized by arranging deals with customers who have an appropriate credit history, arranging prepayments or payments through security deposits and credit cards for individual customers. The Company also acquires insurance instruments for receivables (bills of exchange, promissory notes and guarantees) thus allaying the risks of non-performing of its claims for the services provided. The Company continuously monitors tour operators and travel agencies with which it does regular business, while actively checking their financial competencies, and in the end, it implements forced collection by activating insurance measures to collect its receivables.

The Company is not an active participant in the capital markets in terms of trading with equity and debt securities, therefore it is not significantly exposed to price risk.

Sound liquidity risk management ensures that the Company ensures day-today control and provision of sufficient amounts of free cash through operating cash flows and adequate amounts of currently agreed and future credit lines to meet its obligations. Credit lines for 2024 are contracted with reputable financial institutions, while in general credit repayments are aligned with the period of significant cash inflows from operational activities. The Company monitors the level of available funds through daily cash and debt reports. Long-term cash flow forecasts, as well as annual (monthly) forecasts, are based on the set budget. After meeting the needs of working capital management the surplus is deposited in the treasury. From there the funds are invested in interest-bearing current accounts, time deposits, money market deposit accounts and marketable securities. Only instruments with suitable maturities and sufficient liquidity are selected, according to the forecast needs for liquid funds.

## 2) BUSINESS RISKS

The Company is exposed to business risks related to competitiveness and business stability. Since the Company owns real estate, this business model

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requires intensive capital engagement to maintain high-quality products and services. Capital-intensive investment projects in increasing the quality of services and products may exceed budget expectations, construction does not have to be completed on time, in the meantime, changes to urban planning regulations, other laws and fiscal policy may take effect and may lead to the opening of litigations with suppliers and contractors or inconsistent quality of work. These risks may adversely affect the Company's cost increase, as well as weaker cash flow and lower revenues.

Given that in conditions of a stable market almost 90% of the Company's guests are guests from abroad, the stability of macroeconomic indicators in their domicile countries is very important, where the price of goods and services that directly affect the purchasing power of guests play a significant role. The extreme seasonality of Croatian tourism as an industry poses a significant risk and impact on business results, as it leads to insufficient use of available tourist capacities and resources. Therefore, the Company at all levels of management strives to develop the tourist offer, using its comparative advantages and expertise while pondering strategically about the development of the tourist product.

Without high-quality human resources management, the development of the Company is not possible, and the expansion of the labor market in recent years has identified risks related to deficit positions, the development of new knowledge and specific skills. The Company's ability to provide support to its business may be impaired if the Company is unable to hire, train and retain the sufficient number of workers necessary for the realization of its business strategy and sustainable growth and development, especially during the high demand period from June to September. Therefore, the Company continuously engages in a dialogue with social partners and ensures a high level of workers' rights, starting with wage competitiveness, motivation and reward systems, untie career development, health care programs and numerous training programs.

#### 3) OTHER RISKS

The Company is exposed to operational risk, i.e., direct and indirect losses arising from the Company's flawed internal and external processes. An incorrect assessment of a development opportunity may affect the Company's ability to deliver business growth and long-term value for shareholders. Given the complexity of the organization, systematic work is being done on the analysis of data that actively monitors the Company's business actions, thus providing a timely work frame for valid business decisions.

The Company is aware of the risk of exposure to cyber-attacks which may result in significant disruptions to operations and financial losses due to declining revenues, costs of repairing damage from attacks, and significant fines in the event of data security breaches, as well as the reliability of IT business solutions. Hence, the Company continuously works on its further development with a focus on data protection projects, improvement of existing and development and implementation of new business systems.

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# CORPORATE GOVERNANCE

The Company continuously, to the greatest extent possible, develops and operates, in accordance with the good practice of corporate governance prescribed by the Croatian Financial Services Supervisory Agency (HANFA) and the Zagreb Stock Exchange d.d. Business strategy, policy, key acts and business practices have established governance standards, aimed at contributing to transparent and efficient business.

During 2024, for the most part, the Company has followed and applied the recommendations set out in the Code, disclosing all information as foreseen by the positive regulations and information beneficial for the interest of the Company's shareholders.

In accordance with the requirements of the Code, and in accordance with the provisions of the Companies Act (ZTD), the Supervisory Board conducts internal supervision of the Company with regular inspections of presented reports. Members of the Supervisory Board are regularly provided with detailed information on the management and operations of the Company. At the meetings of the Supervisory Board, all matters within the competence of that body prescribed by the Companies Act (ZTD) and the Statute of the Company are discussed and decided. In addition, the Supervisory Board performs internal control and oversight through the Audit Committee, which provides expert support to the Supervisory Board and the Management Board in the effective performance of corporate governance, risk management, financial reporting and control obligations of the Company.

Management ensures that the Company keeps business and other books and business documentation, draws up bookkeeping documents, realistically assesses assets and liabilities, compiles financial and other reports in accordance with accounting regulations and standards and applicable laws and regulations.

The Company does not have a formal diversity policy in place regarding gender, age, education or profession in executive, managerial and supervisory bodies. Executive/managerial roles in the Company are appointed depending on the needs of specific business activities, requiring certain knowledge, professional qualification, and the capacity of potential role holder, without taking into account diversity with regards to gender or age. The Company also requires certain knowledge, education and capacity of potential job holders in these bodies in management and supervisory boards, and in accordance with the criteria and decisions of the Supervisory Board and the Assembly of the Company.

#### Overview of the largest shareholders of the Company on 31/12/2024:

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In accordance with the Statute of the Company, shareholders' right to vote is not limited to a certain percentage or number of votes, nor are there time restrictions for exercising voting rights. Each ordinary share carries one vote at the General Assembly. The Company's rights and obligations arising from the acquisition of its own shares are exercised following the provisions of the Companies Act. On 31 December 2024, the Company holds 4 of its own shares, while in 2024, the Company did not acquire its own shares.

Members of the Company's Management and Supervisory Board are not direct or indirect holders of the Company's shares in terms of the Companies Act, and thus do not represent significant holders of the Company's shares in terms of the Companies Act (ZTD) and the Corporate Governance Code, thereby ensuring their independence as provided by the applicable legislation. The Management Board of the Company shall be appointed and revoked by the Supervisory Board.

Since November 1, 2023, the Company's Management Board is composed by the President of the Management Board, Mr. Ante Barić, and a member of the Management Board, Mr. Filip Močibob. There have been no changes in the composition of the Company's Management Board during 2024.

The Authority of members of the Management Board is fully aligned with the provisions of the Companies Act and is regulated in more detail by the provisions of the Statute.

The Company's Assembly appoints and revokes the Supervisory Board, following the Statute of the Company and the Companies Act (ZTD), and on 31 December 2024 is composed of the following members:

- Mr. Johannes Böck, president,
- Mrs. Dita Chrastilová, deputy,
- Mr. Philip Göth, member,
- Mr. Alexander Paul Zinell, member,
- Mr. Davor Žic, member,
- Mr. Danijel Jerman, member,
- Mr. Rikardo Gregov, member,
- Mrs. Ana Odak, member,
- Mr. Manfred Kainz, member.

During 2024, there have been no changes in the composition of the Supervisory Board of the Company.

As a rule, the Management Board and the Supervisory Board work in meetings, by decision-making, all in accordance with the provisions of positive regulations. The General Assembly is convened, operates and has the authority in accordance with the provisions of the ZTD as well as the provisions of the Statute of the Company, and the invitation and proposals of decisions, as well as the decisions taken, are made public in accordance with the provisions of the Companies Act (ZTD), the Capital Market Act and the Rules of the Zagreb Stock Exchange d.d. The rules on the appointment and revocation of members of the Management Board and members of the Supervisory Board are defined by the Statute, and in accordance with the provisions of the Companies Act (ZTD). The appointment rules do not contain any restrictions on diversity with regard to gender, age, education, profession and similar limitations.

As part of the Supervisory Board, and for more efficient performance of its functions as well as tasks prescribed by the Law on Audit and the Code of Corporate Governance, during 2024., the Audit Committee operated comprising: Mr. Johannes Böck as President, and Mr. Philip Göth, and Mrs. Ana Odak as members.

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# STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT BOARD FOR COMPILING THE ISSUER'S REPORTS

Opatija, 27th February 2025

The Management Board is required to prepare financial statements for each financial year that present fairly, in all material respects, the financial position of the Company and its performance and cash flows, in accordance with International Financial Reporting Standards adopted by the European Union and is responsible for keeping appropriate accounting records to prepare these financial statements at any time. The Management Board has the general responsibility for taking such steps as are reasonably available to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Management is responsible for selecting appropriate accounting policies that are in line with applicable accounting standards and should be applied consistently thereafter; make reasonable and prudent judgments and estimates, prepare financial statements based on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.

The Management Board is also responsible for the preparation and content of management reports and statements on the application of the Code of corporate governance, in accordance with the Croatian Accounting Act. The management report and the report of the corporate governance code for the period from 1.1.2024 to 31.12.2024 were approved for issuance by the Management Board.

Pursuant to Articles 462 to 471 of the Capital Market Act (Official Gazette 65/18, 17/20, 83/21, 151/22, 85/24), the Management Board issues this statement:

Interim unaudited unconsolidated financial statements of Liburnia Riviera Hoteli d.d. have been prepared in accordance with International Financial Reporting Standards (IFRS) and the Croatian Accounting Act.

Interim unaudited unconsolidated financial statements for the period from 1.1.2024 to 31.12.2024 give a true and fair view of the Company's assets and liabilities, financial position, profit or loss.

The management report, together with the unaudited financial statements for the stated period, contains an objective presentation of the development and results of operations and the position of the Company with a description of the most significant risks and uncertainties to which the Company is exposed.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

 Mr. Ante Barić, Mr. Filip Močibob, President of the Management Board Member of the Management Board

| Annex 1                                                                                 | ISSUER'S GENERAL DATA                         |           |
|-----------------------------------------------------------------------------------------|-----------------------------------------------|-----------|
| Reporting period:                                                                       | 1.1.2024<br>31.12.2024<br>to                  |           |
| Year:                                                                                   | 2024                                          |           |
| Quarter:                                                                                | 4.                                            |           |
|                                                                                         | Quarterly financial statements                |           |
| Registration number (MB):<br>03166619                                                   | Issuer's home<br>HR<br>Member State code:     |           |
| Entity's registration<br>040008080<br>number (MBS):                                     |                                               |           |
| Personal<br>15573308024<br>identification number                                        | 74780000COJHFR9WBI35<br>LEI:                  |           |
| Institution<br>1121<br>code:                                                            |                                               |           |
| Name of the issuer:<br>LIBURNIA RIVIERA HOTELI d.d.                                     |                                               |           |
| Postcode and town:<br>51410                                                             | OPATIJA                                       |           |
| Street and house number:<br>MARŠALA TITA 198<br>E-mail address:<br>liburnia@liburnia.hr |                                               |           |
| www.liburnia.hr<br>Web address:                                                         |                                               |           |
| Number of<br>835<br>employees                                                           |                                               |           |
| Consolidated report:<br>KN                                                              | (KN-not consolidated/KD-consolidated)<br>KN   | KD        |
| Audited:<br>RN                                                                          | (RN-not audited/RD-audited)<br>RN             | RD        |
|                                                                                         |                                               | MB:       |
| Names of subsidiaries (according to IFRS):                                              | Registered office:                            |           |
|                                                                                         |                                               |           |
|                                                                                         |                                               |           |
|                                                                                         |                                               |           |
|                                                                                         |                                               |           |
|                                                                                         |                                               |           |
| Bookkeeping firm:                                                                       | (Yes/No)                                      | Yes<br>No |
| Contact person:<br>Alen Laković                                                         | (name of the bookkeeping firm)                |           |
| Telephone:<br>+ 385 (0)51 710-391                                                       | (only name and surname of the contact person) |           |
| alen.lakovic@liburnia.hr<br>E-mail address:                                             |                                               |           |
| Audit firm:<br>(name of the audit firm)<br>Certified auditor:                           |                                               |           |

#### BALANCE SHEET balance as at 31.12.2024

| Submitter: LIBURNIA RIVIERA HOTELI d.d.                                                          |             |                                               |                                                   |
|--------------------------------------------------------------------------------------------------|-------------|-----------------------------------------------|---------------------------------------------------|
| Item                                                                                             | ADP<br>code | Last day of the<br>preceding<br>business year | At the reporting<br>date of the current<br>period |
| 1                                                                                                | 2           | 3                                             | 4                                                 |
|                                                                                                  |             |                                               |                                                   |
| A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID                                                     | 001         | 0                                             | 0                                                 |
| B) FIXED ASSETS (ADP 003+010+020+031+036)<br>I INTANGIBLE ASSETS (ADP 004 to 009)                | 002<br>003  | 110.520.325<br>2.862.067                      | 105.717.081<br>2.544.182                          |
| 1 Research and development                                                                       | 004         | 125.542                                       | 153.070                                           |
| 2 Concessions, patents, licences, trademarks, software and other rights                          | 005         | 935.497                                       | 480.217                                           |
| 3 Goodwill                                                                                       | 006         | 0                                             | 0                                                 |
| 4 Advances for the purchase of intangible assets                                                 | 007         | 0                                             | 0                                                 |
| 5 Intangible assets in preparation                                                               | 008         | 541.559                                       | 858.217                                           |
| 6 Other intangible assets                                                                        | 009         | 1.259.469                                     | 1.052.678                                         |
| II TANGIBLE ASSETS (ADP 011 to 019)                                                              | 010         | 101.147.920                                   | 97.469.401                                        |
| 1 Land                                                                                           | 011         | 16.251.192                                    | 16.251.192                                        |
| 2 Buildings                                                                                      | 012         | 63.351.662                                    | 63.851.192                                        |
| 3 Plant and equipment<br>4 Tools, working inventory and transportation assets                    | 013<br>014  | 2.642.177<br>11.043.842                       | 2.414.439<br>9.600.584                            |
| 5 Biological assets                                                                              | 015         |                                               | 0                                                 |
| 6 Advances for the purchase of tangible assets                                                   | 016         | 2.431.695                                     | 2.458.414                                         |
| 7 Tangible assets in preparation                                                                 | 017         | 4.911.963                                     | 2.378.323                                         |
| 8 Other tangible assets                                                                          | 018         | 515.389                                       | 515.257                                           |
| 9 Investment property                                                                            | 019         |                                               | 0                                                 |
| III FIXED FINANCIAL ASSETS (ADP 021 to 030)                                                      | 020         | 3.105.834                                     | 3.105.834                                         |
| 1 Investments in holdings (shares) of undertakings within the group                              | 021         | 3.105.834                                     | 3.105.834                                         |
| 2 Investments in other securities of undertakings within the group                               | 022         | 0                                             | 0                                                 |
| 3 Loans, deposits, etc. to undertakings within the group                                         | 023         | 0                                             | 0                                                 |
| 4. Investments in holdings (shares) of companies linked by virtue of<br>participating interests  | 024         | 0                                             | 0                                                 |
| 5 Investment in other securities of companies linked by virtue of                                | 025         | 0                                             | 0                                                 |
| participating interests<br>6 Loans, deposits etc. to companies linked by virtue of participating |             |                                               |                                                   |
| interests<br>7 Investments in securities                                                         | 026<br>027  | 0<br>0                                        | 0<br>0                                            |
| 8 Loans, deposits, etc. given                                                                    | 028         | 0                                             | 0                                                 |
| 9 Other investments accounted for using the equity method                                        | 029         | 0                                             | 0                                                 |
| 10 Other fixed financial assets                                                                  | 030         | 0                                             | 0                                                 |
| IV RECEIVABLES (ADP 032 to 035)                                                                  | 031         | 0                                             | 0                                                 |
| 1 Receivables from undertakings within the group                                                 | 032         | 0                                             | 0                                                 |
| 2 Receivables from companies linked by virtue of participating interests                         | 033         | 0                                             | 0                                                 |
| 3 Customer receivables                                                                           | 034         | 0                                             | 0                                                 |
| 4 Other receivables                                                                              | 035         | 0                                             | 0                                                 |
| V DEFERRED TAX ASSETS                                                                            | 036         | 3.404.504                                     | 2.597.664                                         |
| C) CURRENT ASSETS (ADP 038+046+053+063)<br>I INVENTORIES (ADP 039 to 045)                        | 037<br>038  | 11.616.892<br>691.631                         | 14.048.313<br>697.084                             |
| 1 Raw materials and consumables                                                                  | 039         | 621.488                                       | 657.173                                           |
| 2 Work in progress                                                                               | 040         | 0                                             | 0                                                 |
| 3 Finished goods                                                                                 | 041         | 0                                             | 0                                                 |
| 4 Merchandise                                                                                    | 042         | 41.533                                        | 39.803                                            |
| 5 Advances for inventories                                                                       | 043         | 28.610                                        | 108                                               |
| 6 Fixed assets held for sale                                                                     | 044         | 0                                             | 0                                                 |
| 7 Biological assets                                                                              | 045         | 0                                             | 0                                                 |
| II RECEIVABLES (ADP 047 to 052)                                                                  | 046         | 4.053.128                                     | 3.577.129                                         |
| 1 Receivables from undertakings within the group                                                 | 047         | 0                                             | 0                                                 |
| 2 Receivables from companies linked by virtue of participating interests                         | 048         | 1.914.199                                     | 1.975.680                                         |
| 3 Customer receivables<br>4 Receivables from employees and members of the undertaking            | 049<br>050  | 1.780.106<br>51.255                           | 1.354.969<br>6.888                                |
| 5 Receivables from government and other institutions                                             | 051         | 269.174                                       | 221.049                                           |
| 6 Other receivables                                                                              | 052         | 38.394                                        | 18.543                                            |
| III CURRENT FINANCIAL ASSETS (ADP 054 to 062)                                                    | 053         | 637                                           | 0                                                 |
| 1 Investments in holdings (shares) of undertakings within the group                              | 054         | 0                                             | 0                                                 |
| 2 Investments in other securities of undertakings within the group                               | 055         | 0                                             | 0                                                 |
| 3 Loans, deposits, etc. to undertakings within the group                                         | 056         | 0                                             | 0                                                 |
| 4 Investments in holdings (shares) of companies linked by virtue of<br>participating interests   | 057         | 0                                             | 0                                                 |
| 5 Investment in other securities of companies linked by virtue of                                | 058         | 0                                             | 0                                                 |
| participating interests<br>6 Loans, deposits etc. to companies linked by virtue of participating |             |                                               |                                                   |
| interests                                                                                        | 059         | 0                                             | 0                                                 |
| 7 Investments in securities                                                                      | 060         | 637                                           | 0                                                 |

| 8 Loans, deposits, etc. given                                             | 061 | 0           | 0           |
|---------------------------------------------------------------------------|-----|-------------|-------------|
| 9 Other financial assets                                                  | 062 | 0           | 0           |
| IV CASH AT BANK AND IN HAND                                               | 063 | 6.871.496   | 9.774.100   |
| D ) PREPAID EXPENSES AND ACCRUED INCOME                                   | 064 | 142.164     | 194.087     |
| E) TOTAL ASSETS (ADP 001+002+037+064)                                     | 065 | 122.279.381 | 119.959.481 |
| OFF-BALANCE SHEET ITEMS                                                   | 066 | 8.373       | 8.296       |
| LIABILITIES                                                               |     |             |             |
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)              | 067 | 69.470.093  | 73.574.417  |
|                                                                           |     |             |             |
| I INITIAL (SUBSCRIBED) CAPITAL                                            | 068 | 92.305.505  | 92.305.505  |
| II CAPITAL RESERVES                                                       | 069 | 0           | 0           |
| III RESERVES FROM PROFIT (ADP 071+072-073+074+075)                        | 070 | 6.252.880   | 6.252.880   |
| 1 Legal reserves                                                          | 071 | 5.975.017   | 5.975.017   |
| 2 Reserves for treasury shares                                            | 072 | 1.221       | 1.221       |
| 3 Treasury shares and holdings (deductible item)                          | 073 | -1.221      | -1.221      |
| 4 Statutory reserves                                                      | 074 | 0           | 0           |
| 5 Other reserves                                                          | 075 | 277.863     | 277.863     |
| IV REVALUATION RESERVES                                                   | 076 | 0           | 0           |
| V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)                          | 077 | 0           | 0           |
|                                                                           |     |             |             |
| 1 Financial assets at fair value through other comprehensive income (i.e. | 078 | 0           | 0           |
| available for sale)                                                       |     |             |             |
| 2 Cash flow hedge - effective portion                                     | 079 | 0           | 0           |
| 3 Hedge of a net investment in a foreign operation - effective portion    | 080 | 0           | 0           |
| 4 Other fair value reserves                                               | 081 | 0           | 0           |
| 5 Exchange differences arising from the translation of foreign operations | 082 | 0           | 0           |
| (consolidation)                                                           |     |             |             |
| VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085)                  | 083 | -30.489.754 | -29.088.292 |
| 1 Retained profit                                                         | 084 | 0           | 0           |
| 2 Loss brought forward                                                    | 085 | 30.489.754  | 29.088.292  |
| VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)                    | 086 | 1.401.462   | 4.104.324   |
| 1 Profit for the business year                                            | 087 | 1.401.462   | 4.104.324   |
| 2 Loss for the business year                                              | 088 | 0           | 0           |
| VIII MINORITY (NON-CONTROLLING) INTEREST                                  | 089 | 0           | 0           |
| B) PROVISIONS (ADP 091 to 096)                                            | 090 | 1.471.340   | 1.351.736   |
|                                                                           |     |             |             |
| 1 Provisions for pensions, termination benefits and similar obligations   | 091 | 289.716     | 314.522     |
| 2 Provisions for tax liabilities                                          | 092 | 0           | 0           |
| 3 Provisions for ongoing legal cases                                      | 093 | 1.181.624   | 1.037.214   |
| 4 Provisions for renewal of natural resources                             | 094 | 0           | 0           |
| 5 Provisions for warranty obligations                                     | 095 | 0           | 0           |
| 6 Other provisions                                                        | 096 | 0           | 0           |
| C) LONG-TERM LIABILITIES (ADP 098 to 108)                                 | 097 | 31.854.542  | 32.462.413  |
| 1 Liabilities to undertakings within the group                            | 098 | 0           | 0           |
| 2 Liabilities for loans, deposits, etc. of undertakings within the group  | 099 | 0           | 0           |
| 3 Liabilities to companies linked by virtue of participating interests    | 100 | 0           | 0           |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of   |     |             |             |
| participating interests                                                   | 101 | 0           | 0           |
| 5 Liabilities for loans, deposits etc.                                    | 102 | 0           | 0           |
| 6 Liabilities to banks and other financial institutions                   | 103 | 30.835.004  | 31.605.543  |
| 7 Liabilities for advance payments                                        | 104 | 0           | 0           |
| 8 Liabilities to suppliers                                                | 105 | 0           | 0           |
| 9 Liabilities for securities                                              | 106 | 0           | 0           |
|                                                                           |     |             |             |
| 10 Other long-term liabilities                                            | 107 | 1.019.538   | 856.870     |
| 11 Deferred tax liability                                                 | 108 | 0           | 0           |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123)                                | 109 | 19.351.598  | 12.340.736  |
| 1 Liabilities to undertakings within the group                            | 110 | 316.554     | 300.874     |
| 2 Liabilities for loans, deposits, etc. of undertakings within the group  | 111 | 0           | 0           |
| 3 Liabilities to companies linked by virtue of participating interests    | 112 | 0           | 0           |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of   | 113 | 0           | 0           |
| participating interests                                                   |     |             |             |
| 5 Liabilities for loans, deposits etc.                                    | 114 | 0           | 0           |
| 6 Liabilities to banks and other financial institutions                   | 115 | 12.003.551  | 4.905.266   |
| 7 Liabilities for advance payments                                        | 116 | 2.037.614   | 1.895.169   |
| 8 Liabilities to suppliers                                                | 117 | 1.942.799   | 1.682.050   |
| 9 Liabilities for securities                                              | 118 | 0           | 0           |
| 10 Liabilities to employees                                               | 119 | 1.714.430   | 2.161.348   |
| 11 Taxes, contributions and similar liabilities                           | 120 | 810.658     | 1.020.828   |
| 12 Liabilities arising from the share in the result                       | 121 | 0           | 0           |
| 13 Liabilities arising from fixed assets held for sale                    | 122 | 0           | 0           |
| 14 Other short-term liabilities                                           | 123 | 525.992     | 375.201     |
| E) ACCRUALS AND DEFERRED INCOME                                           | 124 | 131.808     | 230.179     |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)                          | 125 | 122.279.381 | 119.959.481 |
| G) OFF-BALANCE SHEET ITEMS                                                | 126 | 8.373       | 8.296       |

#### STATEMENT OF PROFIT OR LOSS for the period 1.1.2024 to 31.12.2024

| Submitter: LIBURNIA RIVIERA HOTELI d.d.                                                                      |      |            |                             |            |                |
|--------------------------------------------------------------------------------------------------------------|------|------------|-----------------------------|------------|----------------|
| Item                                                                                                         | ADP  | year       | Same period of the previous |            | Current period |
|                                                                                                              | code | Cumulative | Quarter                     | Cumulative | Quarter        |
| 1                                                                                                            | 2    | 3          | 4                           | 5          | 6              |
| I OPERATING INCOME (ADP 002 to 006)                                                                          | 001  | 58.766.148 | 9.750.823                   | 64.071.634 | 11.212.956     |
| 1 Income from sales with undertakings within the group                                                       | 002  | 201.046    | 85.022                      | 178.233    | 32.982         |
| 2 Income from sales (outside group)                                                                          | 003  | 55.671.083 | 8.438.813                   | 60.369.926 | 9.914.345      |
| 3 Income from the use of own products, goods and services                                                    | 004  | 0          | 0                           | 0          | 0              |
| 4 Other operating income with undertakings within the group                                                  | 005  | 80.210     | 62.148                      | 1.596      | -358           |
| 5 Other operating income (outside the group)                                                                 | 006  | 2.813.809  | 1.164.840                   | 3.521.879  | 1.265.987      |
| II OPERATING EXPENSES (ADP<br>08+009+013+017+018+019+022+029)                                                | 007  | 56.294.137 | 15.504.648                  | 57.404.838 | 14.953.968     |
| 1 Changes in inventories of work in progress and finished goods                                              | 008  | 0          | 0                           | 0          | 0              |
| 2 Material costs (ADP 010 to 012)                                                                            | 009  | 22.912.028 | 5.008.255                   | 22.808.328 | 4.818.069      |
| a) Costs of raw materials and consumables                                                                    | 010  | 12.312.688 | 2.659.517                   | 12.051.549 | 2.601.360      |
| b) Costs of goods sold                                                                                       | 011  | 22.196     | 4.296                       | 31.257     | 4.145          |
| c) Other external costs                                                                                      | 012  | 10.577.144 | 2.344.442                   | 10.725.522 | 2.212.564      |
| 3 Staff costs (ADP 014 to 016)                                                                               | 013  | 19.508.064 | 7.260.852                   | 22.058.021 | 6.963.016      |
| a) Net salaries and wages                                                                                    | 014  | 13.446.905 | 5.165.434                   | 15.196.384 | 4.752.209      |
| b) Tax and contributions from salary costs                                                                   | 015  | 3.962.377  | 1.377.868                   | 4.418.115  | 1.437.858      |
| c) Contributions on salaries                                                                                 | 016  | 2.098.782  | 717.550                     | 2.443.522  | 772.949        |
| 4 Depreciation                                                                                               | 017  | 9.812.840  | 2.244.040                   | 7.770.301  | 1.943.649      |
| 5 Other costs                                                                                                | 018  | 0          | 0                           | 0          | 0              |
| 6 Value adjustments (ADP 020+021)                                                                            | 019  | 154.664    | 152.965                     | 258.199    | 192.201        |
| a) fixed assets other than financial assets                                                                  | 020  | 145.897    | 145.331                     | 163.154    | 97.156         |
| b) current assets other than financial assets                                                                | 021  | 8.767      | 7.634                       | 95.045     | 95.045         |
| 7 Provisions (ADP 023 to 028)                                                                                | 022  | 146.262    | 146.262                     | 99.416     | 99.416         |
| a) Provisions for pensions, termination benefits and similar<br>obligations                                  | 023  | 47.754     | 47.754                      | 24.806     | 24.806         |
| b) Provisions for tax liabilities                                                                            | 024  | 0          | 0                           | 0          | 0              |
| c) Provisions for ongoing legal cases                                                                        | 025  | 98.508     | 98.508                      | 74.610     | 74.610         |
| d) Provisions for renewal of natural resources                                                               | 026  | 0          | 0                           | 0          | 0              |
| e) Provisions for warranty obligations                                                                       | 027  | 0          | 0                           | 0          | 0              |
| f) Other provisions                                                                                          | 028  | 0          | 0                           | 0          | 0              |
| 8 Other operating expenses                                                                                   | 029  | 3.760.279  | 692.274                     | 4.410.573  | 937.617        |
| III FINANCIAL INCOME (ADP 031 to 040)                                                                        | 030  | 177.928    | 81.955                      | 280.008    | 103.772        |
| 1 Income from investments in holdings (shares) of undertakings<br>within the group                           | 031  | 0          | 0                           | 0          | 0              |
| 2 Income from investments in holdings (shares) of companies<br>linked by virtue of participating interests   | 032  | 0          | 0                           | 0          | 0              |
| 3 Income from other long-term financial investment and loans<br>granted to undertakings within the group     | 033  | 0          | 0                           | 0          | 0              |
| 4 Other interest income from operations with undertakings<br>within the group                                | 034  | 54.343     | 11.602                      | 59.588     | 14.832         |
| 5 Exchange rate differences and other financial income from<br>operations with undertakings within the group | 035  | 0          | 0                           | 0          | 0              |
| 6 Income from other long-term financial investments and loans                                                | 036  | 0          | 0                           | 0          | 0              |
| 7 Other interest income                                                                                      | 037  | 123.585    | 70.353                      | 220.420    | 88.940         |
| 8 Exchange rate differences and other financial income                                                       | 038  | 0          | 0                           | 0          | 0              |
| 9 Unrealised gains (income) from financial assets                                                            | 039  | 0          | 0                           | 0          | 0              |
| 10 Other financial income                                                                                    | 040  | 0          | 0                           | 0          | 0              |
| IV FINANCIAL EXPENSES (ADP 042 to 048)                                                                       | 041  | 2.034.151  | 850.043                     | 2.035.640  | 801.548        |
| 1 Interest expenses and similar expenses with undertakings<br>within the group                               | 042  | 0          | 0                           | 0          | 0              |
| 2 Exchange rate differences and other expenses from operations<br>with undertakings within the group         | 043  | 0          | 0                           | 0          | 0              |
| 3 Interest expenses and similar expenses                                                                     | 044  | 2.032.715  | 849.666                     | 1.992.705  | 797.351        |
| 4 Exchange rate differences and other expenses                                                               | 045  | 0          | 0                           | 0          | 0              |
| 5 Unrealised losses (expenses) from financial assets                                                         | 046  | 0          | 0                           | 0          | 0              |
| 6 Value adjustments of financial assets (net)                                                                | 047  | 0          | 0                           | 0          | 0              |
| 7 Other financial expenses                                                                                   | 048  | 1.436      | 377                         | 42.935     | 4.197          |
| V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY<br>VRITUE OF PARTICIPATING INTERESTS                           | 049  | 0          | 0                           | 0          | 0              |
| VI SHARE IN PROFIT FROM JOINT VENTURES                                                                       | 050  | 0          | 0                           | 0          | 0              |
| VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF<br>PARTICIPATING INTEREST                                 | 051  | 0          | 0                           | 0          | 0              |
| VIII SHARE IN LOSS OF JOINT VENTURES                                                                         | 052  | 0          | 0                           | 0          | 0              |
| IX TOTAL INCOME (ADP 001+030+049 +050)                                                                       | 053  | 58.944.076 | 9.832.778                   | 64.351.642 | 11.316.728     |
| X TOTAL EXPENDITURE (ADP 007+041+051 + 052)                                                                  | 054  | 58.328.288 | 16.354.691                  | 59.440.478 | 15.755.516     |
| XI PRE-TAX PROFIT OR LOSS (ADP 053-054)                                                                      | 055  | 615.788    | -6.521.913                  | 4.911.164  | -4.438.788     |

in EUR

| 1 Pre-tax profit (ADP 053-054)                                                                                                          | 056 | 615.788   | 0          | 4.911.164 | 0          |
|-----------------------------------------------------------------------------------------------------------------------------------------|-----|-----------|------------|-----------|------------|
| 2 Pre-tax loss (ADP 054-053)                                                                                                            | 057 | 0         | -6.521.913 | 0         | -4.438.788 |
| XII INCOME TAX                                                                                                                          | 058 | -785.674  | -763.388   | 806.840   | 821.007    |
| XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)                                                                                        | 059 | 1.401.462 | -5.758.525 | 4.104.324 | -5.259.795 |
| 1 Profit for the period (ADP 055-059)                                                                                                   | 060 | 1.401.462 | 0          | 4.104.324 | 0          |
| 2 Loss for the period (ADP 059-055)                                                                                                     | 061 | 0         | -5.758.525 |           | -5.259.795 |
| DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)                             |     |           |            |           |            |
| XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED                                                                                              |     |           |            |           |            |
| OPERATIONS (ADP 063-064)                                                                                                                | 062 | 0         | 0          | 0         | 0          |
| 1 Pre-tax profit from discontinued operations                                                                                           | 063 | 0         | 0          | 0         | 0          |
| 2 Pre-tax loss on discontinued operations                                                                                               | 064 | 0         | 0          | 0         | 0          |
| XV INCOME TAX OF DISCONTINUED OPERATIONS                                                                                                | 065 | 0         | 0          | 0         | 0          |
| 1 Discontinued operations profit for the period (ADP 062-065)                                                                           | 066 | 0         | 0          | 0         | 0          |
| 2 Discontinued operations loss for the period (ADP 065-062)                                                                             | 067 | 0         | 0          | 0         | 0          |
| TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)                                    |     |           |            |           |            |
| XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062)                                                                                               | 068 | 0         | 0          | 0         | 0          |
| 1 Pre-tax profit (ADP 068)                                                                                                              | 069 | 0         | 0          | 0         | 0          |
| 2 Pre-tax loss (ADP 068)                                                                                                                | 070 | 0         | 0          | 0         | 0          |
| XVII INCOME TAX (ADP 058+065)                                                                                                           | 071 | 0         | 0          | 0         | 0          |
| XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071)                                                                                       | 072 | 0         | 0          | 0         | 0          |
| 1 Profit for the period (ADP 068-071)                                                                                                   | 073 | 0         | 0          | 0         | 0          |
| 2 Loss for the period (ADP 071-068)                                                                                                     | 074 | 0         | 0          | 0         | 0          |
| APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)                             |     |           |            |           |            |
| XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077)                                                                                         | 075 | 0         | 0          | 0         | 0          |
| 1 Attributable to owners of the parent                                                                                                  | 076 | 0         | 0          | 0         | 0          |
| 2 Attributable to minority (non-controlling) interest                                                                                   | 077 | 0         | 0          | 0         | 0          |
| STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)                                                |     |           |            |           |            |
| I PROFIT OR LOSS FOR THE PERIOD                                                                                                         | 078 | 1.401.462 | -5.758.525 | 4.104.324 | -5.259.795 |
| II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX<br>(ADP 80+ 87)                                                                           | 079 | 0         | 0          | 0         | 0          |
| III Items that will not be reclassified to profit or loss (ADP 081<br>to 085)                                                           | 080 | 0         | 0          | 0         | 0          |
| 1 Changes in revaluation reserves of fixed tangible and<br>intangible assets                                                            | 081 | 0         | 0          | 0         | 0          |
| 2 Gains or losses from subsequent measurement of equity                                                                                 | 082 | 0         | 0          | 0         | 0          |
| instruments at fair value through other comprehensive income<br>3 Fair value changes of financial liabilities at fair value through     | 083 | 0         | 0          | 0         | 0          |
| statement of profit or loss, attributable to changes in their credit risk<br>4 Actuarial gains/losses on the defined benefit obligation | 084 | 0         | 0          | 0         | 0          |
| 5 Other items that will not be reclassified                                                                                             | 085 | 0         | 0          | 0         | 0          |
| 6 Income tax relating to items that will not be reclassified                                                                            | 086 | 0         | 0          | 0         | 0          |
| IV Items that may be reclassified to profit or loss (ADP 088 to<br>095)                                                                 | 087 | 0         | 0          | 0         | 0          |
| 1 Exchange rate differences from translation of foreign<br>operations                                                                   | 088 | 0         | 0          | 0         | 0          |
| 2 Gains or losses from subsequent measurement of debt                                                                                   | 089 | 0         | 0          | 0         | 0          |
| securities at fair value through other comprehensive income<br>3 Profit or loss arising from effective cash flow hedging                | 090 | 0         | 0          | 0         | 0          |
| 4 Profit or loss arising from effective hedge of a net investment in                                                                    |     |           |            |           |            |
| a foreign operation                                                                                                                     | 091 | 0         | 0          | 0         | 0          |
| 5 Share in other comprehensive income/loss of companies                                                                                 | 092 | 0         | 0          | 0         | 0          |
| linked by virtue of participating interests                                                                                             |     |           |            |           |            |
| 6 Changes in fair value of the time value of option                                                                                     | 093 | 0         | 0          | 0         | 0          |
| 7 Changes in fair value of forward elements of forward contracts                                                                        | 094 | 0         | 0          | 0         | 0          |
| 8 Other items that may be reclassified to profit or loss                                                                                | 095 | 0         | 0          | 0         | 0          |
| 9 Income tax relating to items that may be reclassified to profit or<br>loss                                                            | 096 | 0         | 0          | 0         | 0          |
| V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP<br>080+087- 086 - 096)                                                                    | 097 | 0         | 0          | 0         | 0          |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD<br>(ADP 078+097)                                                                         | 098 | 1.401.462 | -5.758.525 | 4.104.324 | -5.259.795 |
| APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)                |     |           |            |           |            |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD<br>(ADP 100+101)                                                                         | 099 | 0         | 0          | 0         | 0          |
| 1 Attributable to owners of the parent                                                                                                  | 100 | 0         | 0          | 0         | 0          |
| 2 Attributable to minority (non-controlling) interest                                                                                   | 101 | 0         | 0          | 0         | 0          |

#### STATEMENT OF CASH FLOWS - indirect method for the period 1.1.2024 to 31.12.2024

|                                                                                                                                  |            |                          | in EUR                   |
|----------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------|--------------------------|
| Submitter: LIBURNIA RIVIERA HOTELI d.d.                                                                                          | ADP        | Same period of           |                          |
| Item                                                                                                                             | code       | the previous year        | Current period           |
| 1                                                                                                                                | 2          | 3                        | 4                        |
| Cash flow from operating activities                                                                                              |            |                          |                          |
| 1 Pre-tax profit                                                                                                                 | 001        | 615.788<br>11.435.885    | 4.911.164<br>9.656.254   |
| 2 Adjustments (ADP 003 to 010):<br>a) Depreciation                                                                               | 002<br>003 | 9.812.840                | 7.770.301                |
| b) Gains and losses from sale and value adjustment of fixed tangible and                                                         |            |                          |                          |
| intangible assets                                                                                                                | 004        | 145.897                  | 156.316                  |
| c) Gains and losses from sale and unrealised gains and losses and value                                                          | 005        | 8.767                    | 95.045                   |
| adjustment of financial assets                                                                                                   |            |                          |                          |
| d) Interest and dividend income                                                                                                  | 006        | -177.928                 | -280.008                 |
| e) Interest expenses<br>f) Provisions                                                                                            | 007<br>008 | 2.032.715<br>-398.029    | 2.035.640<br>-119.604    |
| g) Exchange rate differences (unrealised)                                                                                        | 009        | 0                        | 0                        |
| h) Other adjustments for non-cash transactions and unrealised gains and                                                          |            |                          |                          |
| losses                                                                                                                           | 010        | 11.623                   | -1.436                   |
| I Cash flow increase or decrease before changes in working capital (ADP<br>001+002)                                              | 011        | 12.051.673               | 14.567.418               |
| 3 Changes in the working capital (ADP 013 to 016)                                                                                | 012        | -909.594                 | 643.721                  |
| a) Increase or decrease in short-term liabilities                                                                                | 013        | -714.918                 | 260.555                  |
| b) Increase or decrease in short-term receivables                                                                                | 014        | -240.420                 | 388.619                  |
| c) Increase or decrease in inventories                                                                                           | 015        | 45.744                   | -5.453                   |
| d) Other increase or decrease in working capital                                                                                 | 016        | 0                        | 0                        |
| II Cash from operations (ADP 011+012)                                                                                            | 017        | 11.142.079               | 15.211.139               |
| 4 Interest paid                                                                                                                  | 018        | -1.637.719               | -2.366.897               |
| 5 Income tax paid                                                                                                                | 019        | 0                        | 0                        |
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)                                                                      | 020        | 9.504.360                | 12.844.242               |
| Cash flow from investment activities<br>1 Cash receipts from sales of fixed tangible and intangible assets                       | 021        | 34.650                   | 8.962                    |
| 2 Cash receipts from sales of financial instruments                                                                              | 022        | 0                        | 0                        |
| 3 Interest received                                                                                                              | 023        | 123.585                  | 220.420                  |
| 4 Dividends received                                                                                                             | 024        | 0                        | 0                        |
| 5 Cash receipts from repayment of loans and deposits                                                                             | 025        | 0                        | 0                        |
| 6 Other cash receipts from investment activities                                                                                 | 026        | 132.723                  | 0                        |
| III Total cash receipts from investment activities (ADP 021 to 026)                                                              | 027        | 290.958                  | 229.382                  |
| 1 Cash payments for the purchase of fixed tangible and intangible assets                                                         | 028        | -4.141.012               | -3.921.676               |
| 2 Cash payments for the acquisition of financial instruments                                                                     | 029        | 0                        | 0                        |
| 3 Cash payments for loans and deposits for the period                                                                            | 030        | -500                     | -1.500                   |
| 4 Acquisition of a subsidiary, net of cash acquired                                                                              | 031        | 0                        | 0                        |
| 5 Other cash payments from investment activities                                                                                 | 032        | 0                        | 0                        |
| IV Total cash payments from investment activities (ADP 028 to 032)<br>B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) | 033<br>034 | -4.141.512<br>-3.850.554 | -3.923.176<br>-3.693.794 |
| Cash flow from financing activities                                                                                              |            |                          |                          |
| 1 Cash receipts from the increase in initial (subscribed) capital                                                                | 035        | 0                        | 0                        |
| 2 Cash receipts from the issue of equity financial instruments and debt                                                          | 036        | 0                        | 0                        |
| financial instruments                                                                                                            |            |                          |                          |
| 3 Cash receipts from credit principals, loans and other borrowings                                                               | 037        | 5.330.000                | 21.500.000               |
| 4 Other cash receipts from financing activities<br>V Total cash receipts from financing activities (ADP 035 to 038)              | 038<br>039 | 0<br>5.330.000           | 0<br>21.500.000          |
| 1 Cash payments for the repayment of credit principals, loans and other                                                          |            |                          |                          |
| borrowings and debt financial instruments                                                                                        | 040        | -13.562.544              | -27.496.489              |
| 2 Cash payments for dividends<br>3 Cash payments for finance lease                                                               | 041<br>042 | 0<br>-256.430            | 0<br>-59.188             |
| 4 Cash payments for the redemption of treasury shares and decrease in initial                                                    |            |                          |                          |
| (subscribed) capital                                                                                                             | 043        | 0                        | 0                        |
| 5 Other cash payments from financing activities                                                                                  | 044        | 0                        | -192.167                 |
| VI Total cash payments from financing activities (ADP 040 to 044)                                                                | 045        | -13.818.974              | -27.747.844              |
| C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)<br>1 Unrealised exchange rate differences in respect of cash and cash  | 046        | -8.488.974               | -6.247.844               |
| equivalents                                                                                                                      | 047        | 0                        | 0                        |
| D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP<br>020+034+046+047)                                                               | 048        | -2.835.168               | 2.902.604                |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE<br>PERIOD                                                                   | 049        | 9.706.664                | 6.871.496                |
| F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD<br>(ADP 048+049)                                                           | 050        | 6.871.496                | 9.774.100                |

| STATEMENT OF CHANGES IN EQUITY                                                                                                                                                                                                         |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|---------------------------------|------------------|---------------------|-----------------------------------------------------------------------------------|--------------------------------|-------------------|----------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------|----------------------------|--------------------------------------|-----------------------------------------------|-----------------------------------|-----------------------------------------------|--------------------------------------------------------|
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
| for the period from<br>1.1.2024<br>to                                                                                                                                                                                                  | 31.12.2024     |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   | in EUR                                        |                                                        |
|                                                                                                                                                                                                                                        |                |                                 |                  |                     |                                                                                   |                                |                   |                      | Attributable to owners of the parent<br>Fair value of financial assets                               | Hedge of a net                                           |                            | Exchange rate differences from       |                                               |                                   |                                               | Minority (non-                                         |
| Item                                                                                                                                                                                                                                   | ADP<br>code    | Initial (subscribed)<br>capital | Capital reserves | Legal reserves      | Treasury shares and holdings<br>Reserves for treasury shares<br>(deductible item) | Statutory reserves             | Other reserves    | Revaluation reserves | through other comprehensive<br>Cash flow hedge -<br>effective portion<br>income (available for sale) | investment in a foreign operation<br>- effective portion | Other fair value reserves  | translation of foreign<br>operations | Retained profit /<br>loss brought forw<br>ard | Profit/loss for the business year | Total attributable to owners of the<br>parent | Total capital and reserves<br>controlling)<br>interest |
| 1                                                                                                                                                                                                                                      | 2              | 3                               | 4                | 5                   | 6<br>7                                                                            | 8                              | 9                 | 10                   | 11<br>12                                                                                             | 13                                                       | 14                         | 15                                   | 16                                            | 17                                | 18 (3 to 6 - 7<br>+ 8 to 17)                  | 19<br>20 (18+19)                                       |
| Previous period<br>1 Balance on the first day of the previous business year<br>2 Changes in accounting policies                                                                                                                        | 01<br>02       | 92.384.936<br>0                 | 0<br>0           | 5.975.017<br>0      | 1.221<br>0                                                                        | 1.221<br>0<br>0<br>0           | 198.432<br>0      |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | -30.489.754<br>0                              | 0<br>0                            | 68.068.631<br>0                               | 0<br>68.068.631<br>0                                   |
| 3 Correction of errors<br>4 Balance on the first day of the previous business year (restated)<br>(ADP 01 to 03)                                                                                                                        | 03<br>04       | 0<br>92.384.936                 | 0<br>0           | 0<br>5.975.017      | 0<br>1.221                                                                        | 0<br>0<br>1.221<br>0           | 0<br>198.432      |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>-30.489.754                              | 0<br>0                            | 0<br>68.068.631                               | 0<br>0<br>68.068.631                                   |
| 5 Profit/loss of the period<br>6 Exchange rate differences from translation of foreign operations                                                                                                                                      | 05<br>06       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 1.401.462<br>0                    | 1.401.462<br>0                                | 0<br>0                                                 |
| 7 Changes in revaluation reserves of fixed tangible and intangible assets<br>8 Gains or losses from subsequent measurement of financial assets at fair                                                                                 | 07             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| value through other comprehensive income (available for sale)<br>9 Profit or loss arising from effective cash flow<br>hedge                                                                                                            | 08<br>09       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 10 Profit or loss arising from effective hedge of a net investment in a foreign<br>operation                                                                                                                                           | 10             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| 11 Share in other comprehensive income/loss of companies linked by virtue of<br>participating interests<br>12 Actuarial gains/losses on the defined benefit obligation                                                                 | 11<br>12       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 13 Other changes in equity unrelated to ow<br>ners<br>14 Tax on transactions recognised directly in equity<br>15 Decrease in initial (subscribed) capital (other than arising from the pre-                                            | 13<br>14       | -79.431<br>0                    | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 79.431<br>0       |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| bankruptcy settlement procedure or from the reinvestment of profit)<br>16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy                                                                                     | 15             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| settlement procedure<br>17 Decrease in initial (subscribed) capital arising from the reinvestment of profit                                                                                                                            | 16<br>17       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 18 Redemption of treasury shares/holdings<br>19 Payments from members/shareholders                                                                                                                                                     | 18<br>19       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 20 Payment of share in profit/dividend<br>21 Other distributions and payments to members/shareholders                                                                                                                                  | 20<br>21       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 22 Transfer to reserves according to the annual schedule<br>23 Increase in reserves arising from the pre-bankruptcy settlement procedure<br>24 Balance on the last day of the previous business year reporting                         | 22<br>23<br>24 | 0<br>0<br>92.305.505            | 0<br>0<br>0      | 0<br>0<br>5.975.017 | 0<br>0<br>1.221                                                                   | 0<br>0<br>0<br>0<br>1.221<br>0 | 0<br>0<br>277.863 |                      | 0<br>0<br>0<br>0<br>0<br>0                                                                           | 0<br>0<br>0                                              | 0<br>0<br>0<br>0<br>0<br>0 | 0<br>0<br>0                          | 0<br>0<br>-30.489.754                         | 0<br>0<br>1.401.462               | 0<br>0<br>69.470.093                          | 0<br>0<br>0<br>69.470.093                              |
| period (ADP 04 to 23)<br>APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)<br>I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF |                |                                 |                  |                     |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
| TAX (ADP 06 to 14)                                                                                                                                                                                                                     | 25             | -79.431                         | 0                | 0                   | 0                                                                                 | 0<br>0                         | 79.431            |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP<br>05+25)<br>III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED                                                                                               | 26             | -79.431                         | 0                | 0                   | 0                                                                                 | 0<br>0                         | 79.431            |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 1.401.462                         | 1.401.462                                     | 0                                                      |
| DIRECTLY IN EQUITY (ADP 15 to 23)                                                                                                                                                                                                      | 27             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| Current period<br>1 Balance on the first day of the current business year<br>2 Changes in accounting policies                                                                                                                          | 28<br>29       | 92.305.505<br>0                 | 0<br>0           | 5.975.017<br>0      | 1.221<br>0                                                                        | 1.221<br>0<br>0<br>0           | 277.863<br>0      |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | -29.088.292<br>0                              | 0<br>0                            | 69.470.093<br>0                               | 0<br>69.470.093<br>0                                   |
| 3 Correction of errors<br>4 Balance on the first day of the current business year (restated)<br>(AOP 28 to 30)                                                                                                                         | 30<br>31       | 0<br>92.305.505                 | 0<br>0           | 0<br>5.975.017      | 0<br>1.221                                                                        | 0<br>0<br>1.221<br>0           | 0<br>277.863      |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>-29.088.292                              | 0<br>0                            | 0<br>69.470.093                               | 0<br>0<br>69.470.093                                   |
| 5 Profit/loss of the period<br>6 Exchange rate differences from translation of foreign operations                                                                                                                                      | 32<br>33       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 9.364.119<br>0                    | 9.364.119<br>0                                | 0<br>0                                                 |
| 7 Changes in revaluation reserves of fixed tangible and intangible assets<br>8 Gains or losses from subsequent measurement of financial assets at fair                                                                                 | 34             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| value through other comprehensive income (available for sale)<br>9 Profit or loss arising from effective cash flow<br>hedge                                                                                                            | 35<br>36       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 10 Profit or loss arising from effective hedge of a net investment in a foreign<br>operation                                                                                                                                           | 37             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| 11 Share in other comprehensive income/loss of companies linked by virtue of<br>participating interests<br>12 Actuarial gains/losses on the defined benefit obligation                                                                 | 38<br>39       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 13 Other changes in equity unrelated to ow<br>ners<br>14 Tax on transactions recognised directly in equity                                                                                                                             | 40<br>41       | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 15 Decrease in initial (subscribed) capital (other than arising from the pre-<br>bankruptcy settlement procedure or from the reinvestment of profit)<br>16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy    | 42<br>43       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| settlement procedure<br>17 Decrease in initial (subscribed) capital arising from the reinvestment of profit                                                                                                                            | 44             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| 18 Redemption of treasury shares/holdings<br>19 Payments from members/shareholders                                                                                                                                                     | 45<br>46       | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0<br>0            |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 0<br>0                            | 0<br>0                                        | 0<br>0                                                 |
| 20 Payment of share in profit/dividend<br>21 Other distributions and payments to members/shareholders<br>22 Carryforw<br>ard per annual plane                                                                                          | 47<br>48<br>49 | 0<br>0<br>0                     | 0<br>0<br>0      | 0<br>0<br>0         | 0<br>0<br>0                                                                       | 0<br>0<br>0<br>0<br>0<br>0     | 0<br>0<br>0       |                      | 0<br>0<br>0<br>0<br>0<br>0                                                                           | 0<br>0<br>0                                              | 0<br>0<br>0<br>0<br>0<br>0 | 0<br>0<br>0                          | 0<br>0<br>0                                   | 0<br>0<br>0                       | 0<br>0<br>0                                   | 0<br>0<br>0                                            |
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure<br>24 Balance on the last day of the current business year reporting                                                                                      | 50<br>51       | 0<br>92.305.505                 | 0<br>0           | 0<br>5.975.017      | 0<br>1.221                                                                        | 0<br>0<br>1.221<br>0           | 0<br>277.863      |                      | 0<br>0<br>0<br>0                                                                                     | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>-29.088.292                              | 0<br>9.364.119                    | 0<br>78.834.212                               | 0<br>0<br>78.834.212                                   |
| period (ADP 31 to 50)<br>APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance w<br>I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF              |                |                                 |                  | ith the IFRS)       |                                                                                   |                                |                   |                      |                                                                                                      |                                                          |                            |                                      |                                               |                                   |                                               |                                                        |
| TAX (ADP 33 to 41)<br>II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32                                                                                                                                                   | 52             | 0                               | 0                | 0                   | 0                                                                                 | 0<br>0                         | 0                 |                      | 0<br>0                                                                                               | 0                                                        | 0<br>0                     | 0                                    | 0                                             | 0                                 | 0                                             | 0                                                      |
| do 52)                                                                                                                                                                                                                                 | 53             | 0<br>0                          | 0<br>0           | 0<br>0              | 0<br>0                                                                            | 0<br>0<br>0<br>0               | 0                 | 0<br>0               | 0<br>0                                                                                               | 0<br>0                                                   | 0<br>0<br>0<br>0           | 0<br>0                               | 0<br>0                                        | 9.364.119<br>0                    | 9.364.119<br>0                                | 0<br>0                                                 |

#### NOTES TO FINANCIAL STATEMENTS - TFI

(Drawn up for quarterly reporting periods)

Name of the issuer: LIBURNIA RIVIERA HOTELI d.d.

Personal identification number (OIB): 1557308024

Reporting period: from 1.1.2024 to 31.12.2024

Notes to financial statements for quarterly periods include:

a) explanation of business events relevant to understanding changes in the statement of financial position and financial performance for the reporting quarterly period of the issuer with respect to the last business year: information is provided regarding these events and relevant information published in the last annual financial statement is updated (items 15 to 15C IAS 34 - Interim financial reporting)

The Company's financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS). They are made using the historical cost method. Significant business events and transactions in the observed period are explained in the report "Business results from 1.1.2024 to 31.12.2024" which was published simultaneously with this document on the company's website as well as on the website of the Zagreb Stock Exchange and submitted to the Official Register at the Croatian Financial Services Supervisory Agency.

b) information on the access to the latest annual financial statements, for the purpose of understanding information published in the notes to financial statements drawn up for the semi-annual reporting period

Report "Business results from 1.1.2024 to 31.12.2024" as well as all officially published reports so far are available on the website of the Zagreb Stock Exchange and on the Company's website.

Audited annual reports of Liburnia Riviera Hotels d.d. for 2023 are available on the website of the Zagreb Stock Exchange as well as on the company's website. (www.liburnia.hr, www.hanfa.hr, www.zse.hr).

c) a statement explaining that the same accounting policies are applied while drawing up financial statements for the semi-annual reporting period as in the latest annual financial statements or, in the case where the accounting policies have changed, a description of the nature and effect of the changes (item 16.A (a) IAS 34 - Interim financial reporting)

The Company declares that the accounting policies applied in the preparation of the financial statements for the reporting period ending on 31.12.2024 are identical to those applied in the last published annual audited financial statements.

d) a description of the financial performance in the case of the issuer whose business is seasonal (items 37 and 38 IAS 34 - Interim financial reporting)

Report "Business results from 1.1.2024 to 31.12.2024" as well as all officially published reports so far are available on the website of the Zagreb Stock Exchange and on the Company's website (www.liburnia.hr, www.hanfa.hr, www.zse.hr).

e) other comments prescribed by IAS 34 - Interim financial reporting

All other announcements can be found in the Report "Business Results from 1.1.2024 until 31.12.2024" which is available on the website of the Zagreb Stock Exchange and on the Company's website (www.liburnia.hr, www.hanfa.hr, www.zse.hr).

f) in the notes to quarterly periods financial statements, in addition to the information stated above, information in respect of the following matters shall be disclosed:

1. undertaking's name, registered office (address), legal form, country of establishment, entity's registration number and, if applicable, the indication whether the undertaking is undergoing liquidation, bankruptcy proceedings, shortened termination proceedings or extraordinary administration

Name of the issuer: LIBURNIA RIVIERA HOTELI d.d.

Headquarters: Maršala Tita 198, 51410 Opatija

Legal form: joint stock company

Country of establishment: Republic of Croatia

OIB: 1557308024

Statistic number of the subject: 040008080

2. adopted accounting policies (only an indication of whether there has been a change from the previous period) No changes were applied in the accounting policies.

3. the total amount of any financial commitments, guarantees or contingencies that are not included in the balance sheet, and an indication of the nature and form of any valuable security which has been provided; any commitments concerning pensions of the undertaking within the group or company linked by virtue of participating interest shall be disclosed separately

All financial liabilities of the Company are included in the balance sheet.

4. the amount and nature of individual items of income or expenditure which are of exceptional size or incidence

Details are available in the published report "Business results from 1.1.2024 until 31.12.2024."

5. amounts owed by the undertaking and falling due after more than five years, as well as the total debts of the undertaking covered by valuable security furnished by the undertaking, specifying the type and form of security

On 31.12.2024 long-term and short-term loans liabilities and liabilities under operational and financial lease contracts of the Company amounted to EUR 36,634 thousand of which EUR 14,006 thousand matures after more than 5 years.

Bank loans are secured primarily by mortgages on the Company's real estate, while lease liabilities are secured by issued debentures of the Company.

Liabilities for leases according to IFRS 16 as of 31.12.2024, based on signed concession agreements, amount to EUR 929 thousand, of which EUR 561 thousand is due after more than 5 years.

6. average number of employees during the financial year

The average number of employees in the period from 1.1.2024 to 31.12.2024 was 831.

7. where, in accordance with the regulations, the undertaking capitalized on the cost of salaries in part or in full, information on the amount of the total cost of employees during the year broken down into the amount directly debiting the costs of the period and the amount capitalized on the value of the assets during the period, showing separately the total amount of net salaries and the amount of taxes, contributions from salaries and contributions on salaries

During the period from 1.1.2024 to 31.12.2024 the Company capitalized salary expenses in the amount of EUR 29 thousand.

8. where a provision for deferred tax is recognized in the balance sheet, the deferred tax balances at the end of the financial year, and the movement in those balances during the financial year

Deferred tax assets amount to EUR 2,598 thousand, reflecting a decrease of EUR 807 thousand due to the reduction of the tax base in 2024 for temporarily non-deductible expenses and the effect of utilizing previously recognized tax losses.

9. the name and registered office of each of the undertakings in which the undertaking, either itself or through a person acting in their own name but on the undertaking's behalf, holds a participating interest, showing the proportion of the capital held, the amount of capital and reserves, and the profit or loss for the latest financial year of the undertaking concerned for which financial statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking

The company has 100% ownership in the company Ika 21 d.o.o., with registered office at Ulica Maršala Tita 198, Opatija. As of 31st of December 2023, the share capital of the company is EUR 2,654 and the loss was EUR 13 thousand. In August 2021, Liburnia also acquired 100% ownership in the company Aeris d.o.o. in Opatija, address Ulica Maršala Tita 198. The share capital of the company on the day of acquisition amounts to EUR 2,654 and the loss in 2023 was EUR 45 thousand.

10. the number and the nominal value or, in the absence of a nominal value, the accounting par value of the shares subscribed during the financial year within the limits of the authorized capital

During the business year, there were no new share subscriptions.

11. the existence of any participation certificates, convertible debentures, warrants, options or similar securities or rights, with an indication of their number and the rights they confer

There are no certificates of participation, convertible debentures, guarantees, options or similar securities or rights related to the reporting period.

12. the name, registered office and legal form of each of the undertakings of which the undertaking is a member having unlimited liability

Not applicable.

13. the name and registered office of the undertaking which draws up the consolidated financial statements of the largest group of undertakings of which the undertaking forms part as a controlled group member

Not applicable.

14. the name and registered office of the undertaking which draws up the consolidated financial statements of the smallest group of undertakings of which the undertaking forms part as a controlled group member and which is also included in the group of undertakings referred to in point 13

Not applicable.

15. the place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained, provided that they are available

Not applicable.

16. the nature and business purpose of the undertaking's arrangements that are not included in the balance sheet and the financial impact on the undertaking of those arrangements, provided that the risks or benefits arising from such arrangements are material and in so far as the disclosure of such risks or benefits is necessary for the purposes of assessing the financial position of the undertaking

There are no arrangements with companies that are not included in the financial statements as of 31.12.2024.

17. the nature and the financial effect of material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet

There are no events with material effect in the financial position after the balance date.