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# **AS Silvano Fashion Group**

# **Consolidated Interim Financial Report for Q4 and 12 months of 2024 (unaudited)**

(translation of the Estonian original) \*

| Beginning of the reporting period | 1 January 2024                                    |
|-----------------------------------|---------------------------------------------------|
| End of the reporting period       | 31 December 2024                                  |
|                                   |                                                   |
| Business name                     | AS Silvano Fashion Group                          |
| Registration number               | 10175491                                          |
| Legal address                     | Tulika 17, 10613 Tallinn                          |
| Telephone                         | +372 684 5000                                     |
| Fax                               | +372 684 5300                                     |
| E-mail                            | info@silvanofashion.com                           |
| Website                           | www.silvanofashion.com                            |
| Core activities                   | Design, manufacturing and distribution of women's |
|                                   | lingerie                                          |
| Auditor                           | Ernst & Young Baltic AS                           |

*\* This version of our report is a translation from the original, which was prepared in Estonian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.*

| Management Report  3                                 |  |
|------------------------------------------------------|--|
| Declaration of the Management Board  11              |  |
| Consolidated Statement of Financial Position 12      |  |
| Consolidated Income Statement  13                    |  |
| Consolidated Statement of Comprehensive Income  13   |  |
| Consolidated Statement of Cash Flows  14             |  |
| Consolidated Statement of Changes in Equity  15      |  |
| Notes to the Interim Report  16                      |  |
| Note 1 Summary of significant accounting policies 16 |  |
| Note 2 Cash and cash equivalents  16                 |  |
| Note 3 Trade and other receivables  17               |  |
| Note 4 Inventories  17                               |  |
| Note 5 Property, plant and equipment  18             |  |
| Note 6 Trade and other payables  19                  |  |
| Note 7 Equity  19                                    |  |
| Note 8 Earnings per share  19                        |  |
| Note 9 Revenue from contracts with customers  19     |  |
| Note 10 Transactions with related parties  20        |  |
| Note 11 Operating segments  20                       |  |

# **Management Report**

# **General information about AS Silvano Fashion Group**

AS Silvano Fashion Group (hereinafter "the Group") is a holding company that controls group of entities involved in the design, manufacturing, wholesale, franchise and retail sales of Ladies lingerie. The Group's revenue is generated by sales of Milavitsa, Alisee, Aveline, Lauma Lingerie, Laumelle and Hidalgo brand products through wholesale channels, franchised sales and own retail operated via Milavitsa and Lauma Lingerie retail stores. Key sales markets for the Group are Russia, Belarus, other CIS countries and the Baltics.

The parent company of the Group is AS Silvano Fashion Group (hereinafter "the Parent company"), which is domiciled in Estonia. AS Silvano Fashion Group registered address is Tulika 17, Tallinn, Estonia.

The shares of the Group are listed on the Nasdaq OMX Tallinn Stock Exchange and on the Warsaw Stock Exchange.

As of 31 December 2024 the Group employed 1 655 people (as of 31 December 2023: 1 626 people).

The Group comprises of the following entities:

|                           |          |                             | Ownership<br>interest | Ownership<br>interest |
|---------------------------|----------|-----------------------------|-----------------------|-----------------------|
|                           | Location | Main activity               | 31.12.2024            | 31.12.2023            |
| Parent company            |          |                             |                       |                       |
| Silvano Fashion Group AS  | Estonia  | Holding                     |                       |                       |
| Entities belonging to the |          |                             |                       |                       |
|                           |          |                             |                       |                       |
| Silvano Fashion Group:    |          |                             |                       |                       |
| CJSC Silvano Fashion*     | Russia   | Retail and wholesale        | 100%                  | 100%                  |
| LLC Silvano Fashion       | Belarus  | Retail and wholesale        | 100%                  | 100%                  |
| LLC Silvano Fashion       | Ukraine  | Wholesale                   | 100%                  | 100%                  |
| Silvano Fashion SIA       | Latvia   | Retail                      | 100%                  | 100%                  |
| CJSC Milavitsa            | Belarus  | Manufacturing and wholesale | 85.02%                | 85.02%                |
| JSC Sewing firm Yunona    | Belarus  | Manufacturing and wholesale | 58.33%                | 58.33%                |
| LLC Gimil                 | Belarus  | Manufacturing and wholesale | 100%                  | 100%                  |
| JSC Lauma Lingerie        | Latvia   | Manufacturing and wholesale | 100%                  | 100%                  |
| Alisee SARL               | Monaco   | Holding                     | 99%                   | 99%                   |
| JCS Metropolitan Trade    | Russia   | Holding                     | 100%                  | 100%                  |
| Company Milavitsa **      |          |                             |                       |                       |
| LLC Baltsped logistik     | Belarus  | Logistics                   | 50%                   | 50%                   |

\* Silvano Fashion CJSC is 100% owned by Metropolitan Trade Company Milavitsa CJSC (same was effective as of 31.12.2023).

\*\* Metropolitan Trade Company Milavitsa LLC is owned by AS Silvano Fashion Group and SIA Silvano Fashion, each holding 50% (same was effective as of 31.12.2023).

In addition, as of 31.12.2024 the subsidiary of AS Silvano Fashion Group, CJSC Milavitsa, had investment in associate LLC Trade house "Milavitsa "Novosibirsk with a 25% ownership interest (same was effective as of 31.12.2023).

# **Business environment and results**

The Group's sales amounted to 58 070 thousand EUR during the 12 months of 2024, representing a 0.9% decrease as compared to the same period for the previous year. The Group's gross profit during the 12 months of 2024 amounted to 34 278 thousand EUR and increased by 1.6% compared to 12 months of 2023. The Gross margin during the 12 months of 2024 increased to 59.0% from 57.6% as compared to 12 months of 2023.

Consolidated operating profit for 12 months of 2024 decreased by 4.0% to 17 248 thousand EUR, compared to 17 973 thousand EUR for 12 months of 2023. Consolidated EBITDA for 12 months of 2024 decreased by 3.8% and was 20 316 thousand EUR, compared to 21 120 thousand EUR for 12 months of 2023.

Reported consolidated net profit for 12 months of 2024 amounted to 13 673 thousand EUR, as compared to net profit of 11 107 thousand EUR in the prior year's same period. Net profit attributable to equity holders of the Parent company for 12 months of 2024 amounted 12 366 thousand EUR.

# **Russia Economic Outlook**

The Group's sales on the Russian market 33 959 thousand EUR, decrease is 2.1% compared to 12 months of 2023. Local currency sales increased by 6.3% during 12 months of 2024 compared to the same 12 months of 2023. Group will focus on improving profitability of its retail business, we will also continue to expand our store chain there depending on the availability of reasonably priced sales areas. At the end of the reporting period, there were a total of 57 stores operated by the Group itself (as of 31 December 2023: 58 stores).

# **Belarus Economic Outlook**

The Group's sales in Belarus in the 12 months of 2024 were 15 914 thousand EUR and increased by 6.0% compared to the 12 months of 2023. Sales in local currency increased by 14.7% during the same period. At the end of the reporting period, there were a total of 62 stores operated by the Group itself (as of 31 December 2023: 59 stores).

# **Ukraine Economic Outlook**

The Group's sales in Ukraine in the 12 months of 2024 were 108 thousand EUR and decreased by 32.9% compared to the 12 months of 2023.

# **Sales structure**

#### **Sales by markets**

Group sales in its 2 major markets – Russia and Belarus– were 85.9% of its total sales. Measured in local currencies sales increase was accordingly – 6.3% in Russia, 14.7% in Belarus.

|                 | 12m 2024  | 12m 2023  |         | Change Change, % |
|-----------------|-----------|-----------|---------|------------------|
| Russia, th RUB  | 3 361 697 | 3 163 150 | 198 547 | 6,3%             |
| Belarus, th BYN | 55 877    | 48 725    | 7 152   | 14,7%            |

Group`s sales results by markets measured in EUR are presented below:

|                     | 12m 2024 | 12m 2023 | Change, | Change, % | 12m 2024,  | 12m 2023,  |
|---------------------|----------|----------|---------|-----------|------------|------------|
| in thousands of EUR |          |          | EUR     |           | % of sales | % of sales |
| Russia              | 33 959   | 34 692   | -733    | -2.1%     | 58.5%      | 59.2%      |
| Belarus             | 15 914   | 15 013   | 901     | 6.0%      | 27.4%      | 25.6%      |
| Ukraine             | 108      | 161      | -53     | -32.9%    | 0.2%       | 0.3%       |
| Baltics             | 1 294    | 1 443    | -149    | -10.3%    | 2.2%       | 2.5%       |
| Other markets       | 6 795    | 7 288    | -493    | -6.8%     | 11.7%      | 12.4%      |
| Total               | 58 070   | 58 597   | -527    | -0.9%     | 100.0%     | 100.0%     |

The majority of lingerie sales revenue during 12 months of 2024 in the amount 33 959 thousand EUR was generated in Russia, accounting for 58.5% of total sales. The second largest market was Belarus, where sales were 15 914 thousand EUR, contributing 27.4% of lingerie sales (both retail and wholesale).

|                     | 12m 2024 | 12m 2023 | Change, | Change, % | 12m 2024,  | 12m 2023,  |
|---------------------|----------|----------|---------|-----------|------------|------------|
| in thousands of EUR |          |          | EUR     |           | % of sales | % of sales |
| Wholesale           | 35 517   | 37 335   | -1 818  | -4.9%     | 61.2%      | 63.7%      |
| Retail              | 22 482   | 21 203   | 1 279   | 6.0%      | 38.7%      | 36.2%      |
| Other operations    | 71       | 59       | 12      | 20.4%     | 0.1%       | 0.1%       |
| Total               | 58 070   | 58 597   | -527    | -0.9%     | 100.0%     | 100.0%     |

## **Sales by business segments**

During 12 months of 2024 wholesale revenue amounted to 35 517 thousand EUR, representing 61.2% of the Group's total revenue (12 months of 2023: 63.7%). The main wholesale regions were Russia and Belarus.

Our retail revenue increased by 6.0% and amounted 22 482 thousand EUR, this represents 38.7% of the Group`s total revenue.

#### **Own & franchise store locations, geography**

|               | Own | Franchise | Total |
|---------------|-----|-----------|-------|
| Russia        | 57  | 328       | 385   |
| Belarus       | 62  | 0         | 62    |
| Baltics       | 5   | 21        | 26    |
| Other regions | 0   | 91        | 91    |
| Total         | 124 | 440       | 564   |

At the end of the reporting period the Group and its franchising partners operated 539 Milavitsa and 25 Lauma Lingerie brand stores, including 124 stores operated directly by the Group (as of 31 December 2023: 122 stores).

# **Selected Financial Indicators**

Summarized selected financial indicators of the Group for 12 months of 2024 compared to 12 months of 2023 and 31.12.2024 compared to 31.12.2023 were as follows:

| in thousands of EUR                                                  | 12m 2024   | 12m 2023   | Change |
|----------------------------------------------------------------------|------------|------------|--------|
| Revenue                                                              | 58 070     | 58 597     | -0.9%  |
| Gross Profit                                                         | 34 278     | 33 743     | 1.6%   |
| Operating profit                                                     | 17 248     | 17 973     | -4.0%  |
| EBITDA                                                               | 20 316     | 21 120     | -3.8%  |
| Net profit for the period                                            | 13 673     | 11 107     | 23.1%  |
| Net profit attributable equity holders of the Parent company         | 12 366     | 9 927      | 24.6%  |
| Earnings per share (EUR)                                             | 0,34       | 0,28       | 21.4%  |
| Operating cash flow for the period                                   | 11 164     | 11 703     | -4.6%  |
|                                                                      |            |            |        |
| in thousands of EUR                                                  | 31.12.2024 | 31.12.2023 | Change |
| Total assets                                                         | 84 489     | 72 252     | 16.9%  |
| Total current assets                                                 | 70 871     | 59 395     | 19.3%  |
| Total equity attributable to equity holders of the Parent<br>company | 65 993     | 54 120     | 21.9%  |
| Cash and cash equivalents                                            | 39 690     | 32 878     | 20.7%  |
|                                                                      |            |            |        |
| Margin analysis, %                                                   | 12m 2024   | 12m 2023   | Change |
| Gross profit                                                         | 59.0       | 57.6       | 2.4%   |
| Operating profit                                                     | 29.7       | 30.7       | -3.3%  |
| EBITDA                                                               | 35.0       | 36.0       | -2.8%  |
| Net profit                                                           | 23.5       | 19.0       | 23.7%  |
| Net profit attributable to equity holders of the Parent company      | 21.3       | 16.9       | 26.0%  |
|                                                                      |            |            |        |

| Financial ratios, %           | 31.12.2024 | 31.12.2023 | Change |
|-------------------------------|------------|------------|--------|
| ROA                           | 15.3       | 14.5       | 5.5%   |
| ROE                           | 20.0       | 20.2       | -1.0%  |
| Price to earnings ratio (P/E) | 3.0        | 4.1        | -26.8% |
| Current ratio                 | 6.6        | 5.8        | 13.8%  |
| Quick ratio                   | 4.0        | 3.4        | 17.6%  |

#### **Underlying formulas:**

EBITDA = net profit for the period + depreciation and amortisation + net finance income + income tax expense Gross profit margin = gross profit / revenue

EBITDA margin = EBITDA / revenue

Net profit margin = net profit / revenue

Net profit margin attributable to equity holders of the Parent company = net profit attributable to equity holders of the Parent company / revenue

ROA (return on assets) = net profit attributable to owners of the Company for the last 4 quarters/ average total assets

ROE (return on equity) = net profit attributable to owners of the Company for the last 4 quarters/ average equity attributable to equity holders of the Company

EPS (earnings per share) = net profit attributable to owners of the Company/ weighted average number of ordinary shares Price to earnings ratio = Share price at the end of reporting period/earnings per share, calculated based on the net profit attributable

to owners of the Company for the last 4 quarters

Current ratio = current assets / current liabilities

Quick ratio = (current assets – inventories) / current liabilities

# **Financial performance**

The Group`s sales amounted 58 070 thousand EUR during 12 months of 2024, representing a 0.9% decrease as compared to the same period of previous year. Overall, wholesale decreased by 4.9%, measured in EUR.

The Group's gross profit during 12 months of 2024 amounted to 34 278 thousand EUR and increase by 1.6% compared to previous year. The gross margin during 12 months of 2024 increased by 2.4% compared to 12 months of 2023. The cost of sold goods decreased by 4.3%.

Consolidated operating profit for 12 months of 2024 amounted to 17 248 thousand EUR, compared to 17 973 thousand EUR for 12 months of 2023, decrease by 4.0%. The consolidated operating profit margin was 29.7% for 12 months of 2024 (30.7% for 12 months of 2023). Consolidated EBITDA for 12 months of 2024 decreased by 3.8% and amounted to 20 316 thousand EUR, which is 35.0% in margin terms (21 120 thousand EUR and 36.0% for 12 months of 2023).

Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2024 amounted 12 366 thousand EUR, compared to net profit of 9 927 thousand EUR for 12 months of 2023, net profit margin attributable to equity holders of the Parent company for 12 months of 2024 was 21.3% against net profit 16.9% for 12 months of 2023.

# **Financial position**

As of 31 December 2024 consolidated assets amounted to 84 489 thousand EUR representing increase by 16.9% as compared to the position as of 31 December 2023.

Trade and other receivables decreased by 148 thousand EUR as compared to 31 December 2023 and amounted to 1 206 thousand EUR as of 31 December 2024. Inventory balance increased by 4 365 thousand EUR and amounted to 28 305 thousand EUR as of 31 December 2024.

Equity attributable to equity holders of the Parent company increased by 11 873 thousand EUR and amounted to 65 993 thousand EUR as of 31 December 2024. Current liabilities increased by 420 thousand EUR during 12 months of 2024.

# **Investments**

During 12 months of 2024 the Group's investments into property, plant and equipment totalled 942 thousand EUR, in previous year same period 1 133 thousand EUR. Investments were made mainly into opening and renovating own stores, as well into equipment and facilities to maintain effective production for future periods.

# **Personnel**

As of 31 December 2024, the Group employed 1 655 employees, including 518 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2023 there were 1 626 employees, including 500 people in retail operations.

Total salaries and related taxes during 12 months of 2024 amounted 14 155 thousand EUR ( 13 266 thousand EUR in 12 months 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 679 thousand EUR.

# **Decisions made by governing bodies during 12 months 2024**

On the 19th of March 2024, the AS Silvano Fashion Group proposed to the shareholders to adopt the resolution of the extraordinary general meeting of shareholders stated below without convening the meeting.

The notice of the general meeting was published on March 19, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=b77cafc430f1ac23a81813069a95a15cd&lang=en and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/ and in the newspaper Eesti Päevaleht.

On April 9, 2024 Silvano Fashion Group Extraordinary Meeting of Shareholders adopted the following decisions:

1.1. To appoint the auditing company Ernst & Young Baltic AS (registry code 10877299, located at Rävala puiestee 4, 10143 Tallinn) as the auditor of AS Silvano Fashion Group;

1.2. To authorize the Management Board of AS Silvano Fashion Group to enter into an audit service agreement with the auditing company AS Ernst & Young Baltic for auditing the economic activities of AS Silvano Fashion Group 2023.

On the 29th of May 2024, AS Silvano Fashion Group proposed to the shareholders to adopt the resolutions of the annual general meeting of shareholders without convening the meeting.

The notice of the general meeting was published on May 29, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=bc1ccceca27a9390039f730c2b2b98136&lang=en&src=listed and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/companyannouncements/ and in the daily newspaper Eesti Ekspress.

On June 20, 2024 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions:

- 1. To approve the 2023 Annual Report;
- 2. To left the net profit undistributed and to include the net profit of the financial year 2023 in retained earnings.

The decisions of the general meeting were published on the website of AS Silvano Fashion Group https://www.silvanofashion.com/investors/company-announcements/.

# **Shares of AS Silvano Fashion Group**

As of 31 December 2024 registered share capital of AS Silvano Fashion Group amounted to 3 600 thousand EUR divided into 36 000 000 ordinary shares with a nominal value of 0.10 EUR each. The share register is electronic and maintained at the Estonian Central Register of Securities. The Company has been listed on Nasdaq OMX Tallinn Stock Exchange main list (since 21.11.2006) and on Warsaw Stock Exchange (since 23.07.2007).

As of 31 December 2024 AS Silvano Fashion Group had 2 830 shareholders (as of 31 December 2023: 3 336 shareholders).

As of 31 December 2024 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:

| Name                      | Number of shares | Shareholding |
|---------------------------|------------------|--------------|
| Major shareholders        | 19 811 841       | 55.03%       |
| AS SEB PANK CLIENTS       | 8 000 000        | 22.22%       |
| BALTPLAST AS              | 7 835 931        | 21.77%       |
| BREM AVARII OSAÜHING      | 2 000 000        | 5.56%        |
| UNICREDIT BANK AUSTRIA AG | 1 975 910        | 5.49%        |
| Other shareholders        | 16 188 159       | 44.97%       |
| Total number of shares    | 36 000 000       | 100.00%      |

As of 31 December 2023 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:

| Name                      | Number of shares | Shareholding |
|---------------------------|------------------|--------------|
| Major shareholders        | 19 262 985       | 53.50%       |
| BALTPLAST AS              | 9 115 798        | 25.32%       |
| AS SEB PANK CLIENTS       | 8 000 000        | 22.22%       |
| UNICREDIT BANK AUSTRIA AG | 2 147 187        | 5.96%        |
| Other shareholders        | 16 737 015       | 46.50%       |
| Total number of shares    | 36 000 000       | 100.00%      |

## **Share price development and turnover on the Tallinn Stock Exchange during 12 months of 2024 (EUR)**

During 12 months of 2024 the highest and lowest prices of the AS Silvano Fashion Group` share on the Tallinn Stock Exchange were 1.188 EUR and 0.90 EUR, respectively

![](_page_8_Figure_3.jpeg)

![](_page_8_Figure_4.jpeg)

# **Share price development on the Warsaw Stock Exchange during 12 months of 2024(PLN)**

During 12 months of 2024, the highest and lowest prices of the AS Silvano Fashion Group` share on the Warsaw Stock Exchange were 6.33 PLN and 3.85 PLN respectively.

![](_page_9_Figure_3.jpeg)

![](_page_9_Figure_4.jpeg)

# *AS Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12 months of 2024*

# **Declaration of the Management Board**

The Management Board of AS Silvano Fashion Group has reviewed and approved Consolidated Interim Financial Report for Q4 and 12 months of 2024 (hereinafter "the Interim Report").

Member of the Management Board confirms that according to his best knowledge the Interim Report gives a true and fair view of financial position of the Group, its financial performance and its cash flows in accordance with International Financial Reporting Standards, as adopted by EU, and IAS 34 "Interim Financial Reporting".

Furthermore, Member of the Management Board confirms that in his opinion the Interim Report provides a fair review of significant developments in the Group's activities that occurred during the reporting period and their impact and describes significant risks and uncertainties that may affect the Group during future reporting periods.

The Interim Report has not been audited or otherwise reviewed by the auditors.

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

Jarek Särgava Member of the Management Board February 28, 2025

# **Consolidated Statement of Financial Position**

| in thousands of EUR                         | Note | 31.12.2024 | 31.12.2023 |
|---------------------------------------------|------|------------|------------|
|                                             |      | Unaudited  | Audited    |
| ASSETS                                      |      |            |            |
| Current assets                              |      |            |            |
| Cash and cash equivalents                   | 2    | 7 683      | 32 878     |
| Short-term deposits over 3 months           | 2    | 32 007     | 0          |
| Trade and other receivables                 | 3    | 1 206      | 1 354      |
| Prepayments and other tax receivables       | 3    | 1 603      | 1 115      |
| Current loans granted                       |      | 0          | 29         |
| Other assets                                |      | 67         | 79         |
| Inventories                                 | 4    | 28 305     | 23 940     |
| Total current assets                        |      | 70 871     | 59 395     |
| Non-current assets                          |      |            |            |
| Non-current receivables                     | 8    | 271        | 292        |
| Investments in associates                   |      | 92         | 85         |
| Investments in other shares                 |      | 208        | 213        |
| Deferred tax asset                          |      | 3 347      | 2 155      |
| Intangible assets                           |      | 649        | 579        |
| Investment property                         |      | 837        | 899        |
| Property, plant and equipment               | 5    | 8 214      | 8 634      |
| Total non-current assets                    |      | 13 618     | 12 857     |
| TOTAL ASSETS                                |      | 84 489     | 72 252     |
| LIABILITIES AND EQUITY                      |      |            |            |
| Current liabilities                         |      |            |            |
| Current lease liabilities                   |      | 2 252      | 2 162      |
| Trade and other payables                    | 6    | 7 031      | 7 377      |
| Tax liabilities                             |      | 1 423      | 747        |
| Total current liabilities                   |      | 10 706     | 10 286     |
| Non-current liabilities                     |      |            |            |
| Deferred tax liability                      |      | 715        | 736        |
| Non-current lease liabilities               |      | 3 694      | 4 321      |
| Non-current provisions                      |      | 43         | 46         |
| Total non-current liabilities               |      | 4 452      | 5 103      |
| Total liabilities                           |      | 15 158     | 15 389     |
| Equity                                      |      |            |            |
| Share capital                               | 7    | 3 600      | 3 600      |
| Share premium                               |      | 4 967      | 4 967      |
| Statutory reserve capital                   |      | 1 306      | 1 306      |
| Unrealised exchange rate differences        |      | -20 495    | -20 002    |
| Retained earnings                           |      | 76 615     | 64 249     |
| Total equity attributable to equity holders |      |            |            |
| of the Parent company                       |      | 65 993     | 54 120     |
| Non-controlling interest                    |      | 3 338      | 2 743      |
| Total equity                                |      | 69 331     | 56 863     |
| TOTAL EQUITY AND LIABILITIES                |      | 84 489     | 72 252     |

# **Consolidated Income Statement**

| in thousands of EUR                                                                                    | Note | 4Q 2024 | 4Q 2023                       | 12m 2024 | 12m 2023 |
|--------------------------------------------------------------------------------------------------------|------|---------|-------------------------------|----------|----------|
|                                                                                                        |      |         | Unaudited Unaudited Unaudited |          | Audited  |
| Revenue from contracts with customers                                                                  | 9    | 11 581  | 11 858                        | 58 070   | 58 597   |
| Cost of goods sold                                                                                     |      | -4 535  | -6 193                        | -23 792  | -24 854  |
| Gross Profit                                                                                           |      | 7 046   | 5 665                         | 34 278   | 33 743   |
| Distribution expenses                                                                                  |      | -2 637  | -2 501                        | -11 360  | -10 572  |
| Administrative expenses                                                                                |      | -1 441  | -1 198                        | -4 981   | -4 501   |
| Other operating income                                                                                 |      | 91      | 92                            | 269      | 286      |
| Other operating expenses                                                                               |      | -263    | -352                          | -958     | -983     |
| Operating profit                                                                                       |      | 2 796   | 1 706                         | 17 248   | 17 973   |
| Currency exchange income/(expense)                                                                     |      | -458    | 237                           | -873     | -3 345   |
| Other finance income/(expenses)                                                                        |      | 455     | 93                            | 856      | -93      |
| Net finance income/(expenses)                                                                          |      | -3      | 330                           | -17      | -3 438   |
| Profit (loss) from associates using equity method                                                      |      | -2      | 5                             | 14       | 24       |
| Profit before tax                                                                                      |      | 2 791   | 2 041                         | 17 245   | 14 559   |
| Income tax expense                                                                                     |      | 177     | 224                           | -3 572   | -3 452   |
| Profit for the period                                                                                  |      | 2 968   | 2 265                         | 13 673   | 11 107   |
| Attributable to :                                                                                      |      |         |                               |          |          |
| Equity holders of the Parent company                                                                   |      | 2 655   | 2 015                         | 12 366   | 9 927    |
| Non-controlling interest                                                                               |      | 313     | 250                           | 1 307    | 1 180    |
| Earnings per share from profit attributable to equity<br>holders of the Parent company, both basic and |      |         |                               |          |          |
| diluted (EUR)                                                                                          | 8    | 0,07    | 0,06                          | 0,34     | 0,28     |

# **Consolidated Statement of Comprehensive Income**

| in thousands of EUR                                                                                     | Note | 4Q 2024 | 4Q 2023                       | 12m 2024 | 12m 2023 |
|---------------------------------------------------------------------------------------------------------|------|---------|-------------------------------|----------|----------|
|                                                                                                         |      |         | Unaudited Unaudited Unaudited |          | Audited  |
| Profit for the period                                                                                   |      | 2 968   | 2 265                         | 13 673   | 11 107   |
| Other comprehensive income (loss) that will be<br>reclassified to profit or loss in subsequent periods: |      |         |                               |          |          |
| Exchange differences on translation of foreign operations                                               |      | -445    | -2 799                        | -602     | -2 520   |
| Total other comprehensive income for the period                                                         |      | -445    | -2 799                        | -602     | -2 520   |
| Total comprehensive income (loss) for the period                                                        |      | 2 523   | -534                          | 13 071   | 8 587    |
| Attributable to :                                                                                       |      |         |                               |          |          |
| Equity holders of the Parent company                                                                    |      | 2 252   | 1 625                         | 11 873   | 9 334    |
| Non-controlling interest                                                                                |      | 271     | -2 159                        | 1 198    | -747     |

| Consolidated Statement of Cash Flows                                |       |           |          |
|---------------------------------------------------------------------|-------|-----------|----------|
| in thousands of EUR                                                 | Note  | 12m 2024  | 12m 2023 |
| Cash flow from operating activities                                 |       | Unaudited | Audited  |
| Profit for the period                                               |       | 13 673    | 11 107   |
| Adjustments for:                                                    |       |           |          |
| Depreciation and amortization of non-current assets                 | 11,13 | 3 068     | 3 147    |
| Impairment losses of non-current assets                             |       |           |          |
| Share of profit of equity accounted investees                       |       | -14       | -24      |
| Gains/Losses on the sale of property, plant and equipment           | 13    | 7         | 1        |
| Net finance income / costs                                          |       | 17        | 3 438    |
| Provision for impairment losses on trade receivables                | 5,19  | -18       | 54       |
| Provision for inventories                                           | 9     | 91        | 1 198    |
| Income tax expense                                                  | 14    | 3 572     | 3 452    |
| Change in inventories                                               | 9     | -4 365    | -7 845   |
| Change in trade and other receivables                               | 8,14  | -271      | -839     |
| Change in trade and other payables                                  | 8,14  | 280       | 2 530    |
| Interest paid                                                       |       | -54       | 0        |
| Income tax paid                                                     |       | -4 822    | -4 516   |
| Net cash flow from operating activities                             |       | 11 164    | 11 703   |
| Cash flow from investing activities                                 |       |           |          |
| Interest received                                                   |       | 1 391     | 601      |
| Dividends received                                                  |       | 8         | 11       |
| Purchase of other financial investments                             |       | -31 800   | 0        |
| incl purchase of deposits with maturities greater than 3 months     |       | -31 800   | 0        |
| Proceeds from disposal of property, plant and equipment             | 13    | 22        | 39       |
| Loans granted                                                       |       | 0         | -19      |
| Proceeds from repayments of loans granted                           |       | 29        | 0        |
| Acquisition of property, plant and equipment                        | 13    | -942      | -1 133   |
| Acquisition of intangible assets                                    | 11    | -147      | -144     |
| Net cash flow from investing activities                             |       | -31 439   | -645     |
| Cash flow from financing activities                                 |       |           |          |
| Proceeds from borrowings                                            | 8     | 4 000     | 0        |
| Repayment of borrowings                                             | 8     | -4 000    | 0        |
| Payment of principal portion of lease liabilities                   |       | -2 318    | -2 307   |
| Interest paid on lease liabilities                                  |       | -739      | -688     |
| Dividends paid                                                      |       | -603      | -692     |
| Net cash flow from financing activities                             |       | -3 660    | -3 687   |
| Net increase/decrease in cash and cash equivalents                  |       | -23 935   | 7 371    |
| Change of deposits with maturities greater than 3 months            |       | 32 007    | 0        |
| Total change                                                        |       | 8 072     | 7 371    |
| Cash and cash equivalents at the beginning of period                | 7     | 32 878    | 25 909   |
| Effect of translation to presentation currency                      |       | -1 095    | -845     |
| Effect of exchange rate fluctuations on cash held                   | 7     | -165      | 443      |
| Cash and cash equivalents at the end of period                      |       | 7 683     | 32 878   |
| Deposits with maturities greater than 3 months at the end of period |       | 32 007    | 0        |
| Total at the end of the period                                      |       | 39 690    | 32 878   |

|  |  |  |  | AS Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12 months of 2024 |
|--|--|--|--|---------------------------------------------------------------------------------------------|
|--|--|--|--|---------------------------------------------------------------------------------------------|

#### **Consolidated Statement of Changes in Equity**

| in<br>ho<br>ds<br>f E<br>U<br>R<br>t<br>usa<br>n<br>o                                                                                                          | S<br>ha<br>re<br>Ca<br>ita<br>l<br>p | S<br>ha<br>re<br>Pr<br>ium<br>em | Sta<br>tut<br>ory<br>res<br>erv<br>e<br>ita<br>l<br>cap | Un<br>l<br>ise<br>d<br>rea<br>ha<br>ex<br>c<br>ng<br>e<br>rat<br>e<br>d<br>i<br>f<br>fer<br>en<br>ces | Re<br>ine<br>d<br>ta<br>ing<br>ea<br>rn<br>s | To<br>l e<br>ity<br>ta<br>q<br>u<br>ibu<br>b<br>le<br>att<br>ta<br>to<br>r<br>ity<br>ho<br>lde<br>f<br>eq<br>u<br>rs<br>o<br>he<br>Pa<br>t<br>t<br>ren<br>co<br>mp<br>an<br>y | No<br>n<br>ll<br>ing<br>ntr<br>co<br>o<br>int<br>st<br>ere | To<br>l e<br>ity<br>ta<br>q<br>u |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|----------------------------------|---------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|----------------------------------|
| (<br>ite<br>)<br>Ba<br>lan<br>3<br>1 D<br>mb<br>2<br>0<br>2<br>2<br>Au<br>d<br>d<br>at<br>ce<br>as<br>ece<br>er                                                | 3<br>6<br>0<br>0                     | 4<br>9<br>6<br>7                 | 1<br>3<br>0<br>6                                        | -1<br>9<br>4<br>0<br>9                                                                                | 5<br>4<br>3<br>2<br>2                        | 4<br>4 7<br>8<br>6                                                                                                                                                            | 4<br>1<br>8<br>2                                           | 4<br>8<br>9<br>6<br>8            |
| f<br>it<br>for<br>he<br>io<br>d<br>Pro<br>t<br>p<br>er                                                                                                         | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 9<br>9<br>27                                 | 9<br>9<br>27                                                                                                                                                                  | 1<br>1<br>8<br>0                                           | 1<br>1<br>1<br>0<br>7            |
| Ot<br>he<br>hen<br>ive<br>inc<br>for<br>he<br>io<br>d<br>t<br>r c<br>om<br>p<br>re<br>s<br>om<br>e<br>p<br>er                                                  | 0                                    | 0                                | 0                                                       | 9<br>3<br>-5                                                                                          | 0                                            | -5<br>9<br>3                                                                                                                                                                  | -1<br>9<br>27                                              | -2<br>5<br>2<br>0                |
| To<br>l c<br>he<br>ive<br>inc<br>for<br>he<br>io<br>d<br>ta<br>t<br>om<br>p<br>re<br>ns<br>om<br>e<br>p<br>er                                                  | 0                                    | 0                                | 0                                                       | -5<br>9<br>3                                                                                          | 9<br>9<br>27                                 | 9<br>3<br>3<br>4                                                                                                                                                              | -7<br>47                                                   | 8<br>5<br>8<br>7                 |
| ion<br>it<br>ise<br>ire<br>in<br>ity<br>Tr<br>t<br>h o<br>d<br>d<br>ct<br>ly<br>an<br>sac<br>s w<br>wn<br>ers<br>, r<br>eco<br>g<br>n<br>eq<br>u               |                                      |                                  |                                                         |                                                                                                       |                                              |                                                                                                                                                                               |                                                            |                                  |
| D<br>iv<br>i<br>den<br>ds<br>de<br>lar<br>d<br>c<br>e                                                                                                          | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 0                                            | 0                                                                                                                                                                             | -6<br>9<br>2                                               | -6<br>9<br>2                     |
| To<br>l tr<br>ion<br>it<br>h o<br>ise<br>d<br>d<br>ire<br>ly<br>in<br>ity<br>ta<br>t<br>ct<br>an<br>sac<br>s w<br>wn<br>ers<br>, r<br>eco<br>g<br>n<br>eq<br>u | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 0                                            | 0                                                                                                                                                                             | -6<br>9<br>2                                               | -6<br>9<br>2                     |
| 3<br>1 D<br>2<br>0<br>2<br>3<br>(<br>Au<br>ite<br>)<br>Ba<br>lan<br>at<br>mb<br>d<br>d<br>ce<br>as<br>ece<br>er                                                | 3<br>6<br>0<br>0                     | 4<br>9<br>6<br>7                 | 1<br>3<br>0<br>6                                        | -2<br>0<br>0<br>0<br>2                                                                                | 6<br>4<br>2<br>4<br>9                        | 4<br>1<br>2<br>0<br>5                                                                                                                                                         | 2 7<br>4<br>3                                              | 6<br>8<br>6<br>3<br>5            |
| Ba<br>lan<br>3<br>1 D<br>mb<br>2<br>0<br>2<br>3<br>(<br>Au<br>d<br>ite<br>d<br>)<br>at<br>ce<br>as<br>ece<br>er                                                | 3<br>6<br>0<br>0                     | 4<br>9<br>6<br>7                 | 1<br>3<br>0<br>6                                        | -2<br>0<br>0<br>0<br>2                                                                                | 6<br>4<br>2<br>4<br>9                        | 5<br>4<br>1<br>2<br>0                                                                                                                                                         | 2 7<br>4<br>3                                              | 5<br>6<br>8<br>6<br>3            |
| f<br>it<br>for<br>he<br>io<br>d<br>Pro<br>t<br>p<br>er                                                                                                         | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 1<br>2<br>3<br>6<br>6                        | 1<br>2<br>3<br>6<br>6                                                                                                                                                         | 1<br>3<br>0<br>7                                           | 1<br>3<br>6<br>7<br>3            |
| he<br>hen<br>ive<br>inc<br>for<br>he<br>io<br>d<br>Ot<br>t<br>r c<br>om<br>p<br>re<br>s<br>om<br>e<br>p<br>er                                                  | 0                                    | 0                                | 0                                                       | -4<br>9<br>3                                                                                          | 0                                            | -4<br>9<br>3                                                                                                                                                                  | -1<br>0<br>9                                               | -6<br>0<br>2                     |
| ive<br>inc<br>for<br>io<br>To<br>ta<br>l c<br>he<br>t<br>he<br>d<br>om<br>p<br>re<br>ns<br>om<br>e<br>p<br>er                                                  | 0                                    | 0                                | 0                                                       | -4<br>9<br>3                                                                                          | 1<br>2<br>3<br>6<br>6                        | 1<br>1<br>8<br>3<br>7                                                                                                                                                         | 1<br>1<br>9<br>8                                           | 1<br>3<br>0<br>1<br>7            |
| Tr<br>ion<br>it<br>h o<br>ise<br>d<br>d<br>ire<br>ly<br>in<br>ity<br>t<br>ct<br>an<br>sac<br>s w<br>wn<br>ers<br>, r<br>eco<br>g<br>n<br>eq<br>u               |                                      |                                  |                                                         |                                                                                                       |                                              |                                                                                                                                                                               |                                                            |                                  |
| iv<br>i<br>den<br>ds<br>de<br>lar<br>d<br>D<br>c<br>e                                                                                                          | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 0                                            | 0                                                                                                                                                                             | -6<br>0<br>3                                               | -6<br>0<br>3                     |
| ion<br>it<br>ise<br>ire<br>in<br>ity<br>To<br>ta<br>l tr<br>t<br>h o<br>d<br>d<br>ct<br>ly<br>an<br>sac<br>s w<br>wn<br>ers<br>, r<br>eco<br>g<br>n<br>eq<br>u | 0                                    | 0                                | 0                                                       | 0                                                                                                     | 0                                            | 0                                                                                                                                                                             | -6<br>0<br>3                                               | -6<br>0<br>3                     |
| Ba<br>lan<br>3<br>1 D<br>mb<br>2<br>0<br>2<br>4<br>(<br>Un<br>d<br>ite<br>d<br>)<br>at<br>ce<br>as<br>ece<br>er<br>au                                          | 3<br>6<br>0<br>0                     | 4<br>9<br>6<br>7                 | 1<br>3<br>0<br>6                                        | -2<br>0<br>4<br>9<br>5                                                                                | 7<br>6<br>6<br>15                            | 6<br>5<br>9<br>9<br>3                                                                                                                                                         | 3<br>3<br>3<br>8                                           | 6<br>9<br>3<br>3<br>1            |

# **Notes to the Interim Report**

## **Note 1 Summary of significant accounting policies**

AS Silvano Fashion Group is a company registered in Estonia. This Interim Report of the Group is prepared for the reporting period ended 31 December 2024 and comprises parent company and its subsidiaries.

The principal accounting policies applied in the preparation of this Interim Report are set out below. The policies have been consistently applied to all the years presented unless otherwise stated.

The Interim Report has not been audited or reviewed by external auditors.

#### **Basis for preparation**

This Interim Report of AS Silvano Fashion Group for Q4 and 12 months 2024 ended on 31 December 2024 has been prepared in accordance with IAS 34 "Interim financial reporting" as adopted by the European Union. The Interim Report should be read in conjunction with the Annual Report for the financial year ended on 31 December 2023, which have been prepared in accordance with IFRS as adopted by the European Union.

This Interim Report is comprised in thousands of Euros (EUR).

The Group's performance is not significantly affected by any seasonal or cyclical factors. Nevertheless, revenue during vacation periods and holidays in CIS countries is usually higher compared to other periods.

#### **New standards and interpretations**

In additions to disclosures already made in the Annual Report for the financial year ended on 31 December 2023 there are no new IFRSs or IFRIC interpretations that are effective for the financial year beginning on or after 1 January 2024 and that would be expected to have a material impact on the Group.

#### **Note 2 Cash and cash equivalents**

| in thousands of EUR                                   | 31.12.24 |     | 31.12.23 |
|-------------------------------------------------------|----------|-----|----------|
| Cash on hand                                          |          | 146 | 53       |
| Current bank accounts in EUR                          | 1 218    |     | 1 925    |
| Current bank accounts in other currencies than EUR    |          | 879 | 466      |
| Short-term bank deposits in EUR                       | 4 941    |     | 29 500   |
| Short-term bank deposits in other currencies than EUR |          | 391 | 566      |
| Cash in transit                                       |          | 108 | 368      |
| Total                                                 | 7 683    |     | 32 878   |
|                                                       |          |     |          |
| in thousands of EUR<br>31.12.24                       | 31.12.23 |     |          |
| Estonia<br>4 919                                      | 29 763   |     |          |
| Latvia<br>517                                         | 61       |     |          |
| Russia<br>706                                         | 943      |     |          |
| Belarus<br>1 028                                      | 1 536    |     |          |
| Ukraine<br>178                                        | 150      |     |          |
| Monaco<br>335                                         | 425      |     |          |
| Total<br>7 683                                        | 32 878   |     |          |

#### **Short-term bank deposits over 3 months**

| in thousands of EUR | 31.12.24 | 31.12.23 |
|---------------------|----------|----------|
| Estonia             | 32 007   | 0        |
| Total               | 32 007   | 0        |

| in thousands of EUR                            | 31.12.24 | 31.12.23 |
|------------------------------------------------|----------|----------|
|                                                |          |          |
| Trade accounts receivable from third parties   | 1 075    | 1 301    |
| Trade accounts receivable from related parties | 0        | 0        |
| Receivables on services rended                 | 31       | 33       |
| Other receivables                              | 195      | 133      |
|                                                | 1 301    | 1 467    |
| Allowance for expected credit losses           | -95      | -113     |
| Total trade and other receivables              | 1 206    | 1 354    |
|                                                |          |          |
| Prepayments and other tax receivables          |          |          |
| Prepayments issued to suppliers                | 504      | 409      |
| VAT recoverable                                | 979      | 704      |
| Other tax prepayments                          | 120      | 2        |
| Total prepayments and other tax                |          |          |
| receivables                                    | 1 603    | 1 115    |

#### **Note 3 Trade receivables and other assets**

The fair values of trade and other receivables are not materially different from the carrying values based on the expected discounted cash flows.

#### **Note 4 Inventories**

| 31.12.24 | 31.12.23 |
|----------|----------|
| 5 365    | 6 501    |
| 1 125    | 1 321    |
| 20 154   | 14 220   |
| 1 661    | 1 898    |
| 28 305   | 23 940   |
|          |          |

| in thousands of EUR                  |                       |                        | Other                        |                          |                                 |         |
|--------------------------------------|-----------------------|------------------------|------------------------------|--------------------------|---------------------------------|---------|
|                                      | Land and<br>buildings | Plant and<br>equipment | equipment<br>and<br>fixtures | Right<br>of-use<br>asset | Assets<br>under<br>construction | Total   |
| 31.12.2022                           |                       |                        |                              |                          |                                 |         |
| Cost                                 | 4 020                 | 14 838                 | 4 688                        | 14 350                   | 33                              | 37 929  |
| Accumulated depreciation             | -2 280                | -13 560                | -4 127                       | -8 714                   | 0                               | -28 681 |
| Net book amount                      | 1 740                 | 1 278                  | 561                          | 5 636                    | 33                              | 9 248   |
| Movements during 12m 2023            |                       |                        |                              |                          |                                 |         |
| Additions                            | 0                     | 21                     | 529                          | 3 524                    | 583                             | 4 657   |
| Disposals                            | 0                     | 0                      | -40                          | -197                     | 0                               | -237    |
| Transfers to Investment property     | -74                   | 0                      | 0                            | 0                        | 0                               | -74     |
| Reclassifications                    | 0                     | 408                    | 197                          | 0                        | -605                            | 0       |
| Depreciation                         | -72                   | -335                   | -339                         | -2 327                   | 0                               | -3 073  |
| Unrealised exchange rate differences | -293                  | -245                   | -141                         | -1 203                   | -5                              | -1 887  |
| Closing net book amount              | 1 301                 | 1 127                  | 767                          | 5 433                    | 6                               | 8 634   |
| 31.12.2023                           |                       |                        |                              |                          |                                 |         |
| Cost                                 | 3 242                 | 12 775                 | 4 464                        | 13 470                   | 6                               | 33 957  |
| Accumulated depreciation             | -1 941                | -11 648                | -3 697                       | -8 037                   | 0                               | -25 323 |
| Net book amount                      | 1 301                 | 1 127                  | 767                          | 5 433                    | 6                               | 8 634   |
| Movements during 12m 2024            |                       |                        |                              |                          |                                 |         |
| Additions                            | 0                     | 35                     | 213                          | 2 014                    | 694                             | 2 956   |
| Modifications                        | 0                     | 0                      | 0                            | 6                        | 0                               | 6       |
| Disposals                            | 0                     | 0                      | -29                          | -34                      | 0                               | -63     |
| Transfers to Investment property     | 14                    | 0                      | 0                            | 0                        | 0                               | 14      |
| Transfers and reclassification       | 4                     | 375                    | 244                          | 0                        | -623                            | 0       |
| Depreciation                         | -65                   | -252                   | -346                         | -2 317                   | 0                               | -2 980  |
| Unrealised exchange rate differences | -30                   | -32                    | -49                          | -240                     | -2                              | -353    |
| Closing net book amount              | 1 224                 | 1 253                  | 800                          | 4 862                    | 75                              | 8 214   |
| 31.12.2024                           |                       |                        |                              |                          |                                 |         |
| Cost                                 | 3 183                 | 12 574                 | 4 379                        | 14 494                   | 75                              | 34 705  |
| Accumulated depreciation             | -1 959                | -11 321                | -3 579                       | -9 632                   | 0                               | -26 491 |
| Net book amount                      | 1 224                 | 1 253                  | 800                          | 4 862                    | 75                              | 8 214   |

# **Note 5 Property, plant and equipment**

The Group didn't have any significant binding commitments to purchase property plant and equipment as of 31 December 2024.

| in thousands of EUR                     | 31.12.24 | 31.12.23 |
|-----------------------------------------|----------|----------|
| Trade accounts payable to third parties | 4 643    | 5 349    |
| Prepayments received from customers     | 743      | 669      |
| Accrued expenses                        | 757      | 552      |
| Accounts payables to employees          | 442      | 422      |
| Other payables                          | 446      | 385      |
| Total trade and other payables          | 7 031    | 7 377    |
|                                         |          |          |

# **Note 6 Trade and other payables**

Fair values of trade and other payables are not materially different from book values due to short maturities.

# **Note 7 Equity**

# **Shares**

As of 31 December 2024 registered share capital of AS Silvano Fashion Group amounted to 3 600 thousand EUR divided into 36 000 000 shares with a nominal value of 0.10 EUR each (as of 31 December 2023, 3 600 thousand EUR 36 000 000 shares and 0.10 EUR nominal value, respectively). All shares of AS Silvano Fashion Group are ordinary shares and all are registered. Each ordinary share gives a shareholder one vote in General Meeting of Shareholders. No share certificates are issued for registered shares. The share register is electronic and maintained at the Estonian Central Depositary for Securities. All shares are fully paid shares.

As of 31 December 2024 AS Silvano Fashion Group had 2 830 shareholders (as of 31 December 2023: 3 336 shareholders).

# **Note 8 Earnings per share**

The calculation of basic earnings per share for 12 months of 2024 (12 months of 2023) is based on profit attributable to owners and a weighted average number of ordinary shares.

| in thousands of shares                                                              | 12m 2024 | 12m 2023 |
|-------------------------------------------------------------------------------------|----------|----------|
| Number of ordinary shares at the beginning of the period                            | 36 000   | 36 000   |
| Effect of own shares held at the beginning of the period                            | 0        | 0        |
| Number of ordinary shares at the end of the period                                  | 36 000   | 36 000   |
| Effect of own shares held at the end of the period                                  | 0        | 0        |
| Weighted average number of ordinary shares for the<br>Period                        | 36 000   | 36 000   |
| in thousands of EUR                                                                 | 12m 2024 | 12m 2023 |
| Profit (loss)for the period attributable to equity holders of<br>the Parent company | 12 366   | 9 927    |
| Basic earnings per share (EUR)                                                      | 0.34     | 0.28     |
| Diluted earnings per share (EUR)                                                    | 0.34     | 0.28     |

Diluted earnings per share do not differ from basic earnings per share as the Group has no financial instruments issued that could potentially dilute the earnings per share.

# **Note 9 Revenue from contracts with customers**

| in thousands of EUR         | 12m 2024 | 12m 2023 |
|-----------------------------|----------|----------|
|                             |          |          |
| Revenue from wholesale      | 35 517   | 37 335   |
| Revenue from retail         | 22 482   | 21 203   |
| Subcontracting and services | 64       | 35       |
| Other sales                 | 7        | 24       |
| Total                       | 58 070   | 58 597   |

# **Note 10 Transactions with related parties**

The following parties are considered to be related;

- a) Shareholders owning, directly or indirectly, a voting power in the parent company or its significant subsidiaries that gives them significant influence over the parent company or its significant subsidiaries and companies under their control.
- b) Associates enterprises in which parent company or its subsidiaries have significant influence;
- c) Members of the Management Board and Supervisory Boards of parent company and its significant subsidiaries and their immediate family members and companies under their control or significant influence.

The Group's owners are legal and physical persons and no sole shareholder has control over the Group's activities. According to management's assessment, the prices applied in transactions with related parties did not differ significantly from the market terms.

| Sales of goods and services             |          |                       |
|-----------------------------------------|----------|-----------------------|
| in thousands of EUR                     | 12m 2024 | 12m 2023              |
| Associates                              | 348      | 475                   |
| Total                                   | 348      | 475                   |
| Balances with related parties           |          |                       |
| in thousands of EUR                     |          | 31.12.2024 31.12.2023 |
| Trade receivables from associates       | 0        | 0                     |
| Total                                   | 0        | 0                     |
| Benefits to key management of the group |          |                       |
| in thousands of EUR                     | 12m 2024 | 12m 2023              |
| Remunerations and benefits              | 679      | 552                   |

**Total 679 552** 

## **Note 11 Operating segments**

The Group`s operating segments have been determined based on regular reports being monitored and analysed by Management and Supervisory Boards of the parent company on an on-going basis.

The Management and Supervisory Board consider the business primarily from the activity perspective, monitoring separately wholesale and retail activities.

- The wholesale segment includes purchasing and production of women's lingerie, and distribution to external wholesale customers and the retail segment. The Group's manufacturing facilities are located in Latvia and Belarus.
- The retail segment sells the lingerie through own retail network in Latvia, Belarus and Russia.

There is a strong integration between wholesale and retail segments. The accounting policies of reportable segments are the same. Management estimates that intersegment transactions have been done on arm's length basis.

Primary measures monitored by the Supervisory Board are segment revenues, segment EBITDA (which is defined as profit before depreciation, amortisation, net financial income, income tax expense and gain on net monetary position) and segment net profit. These measures are included in the internal management reports that are reviewed by the Management Board and the Supervisory Board. Segment EBITDA is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segment relative to other entities that operate within the industry.

Interest income and interest expenses are not core activities of operating segments and are not provided to management and are not evaluated by management as performance assessment criteria of segments' performance. Therefore, interest income and interest expenses are presented on net basis.

Unallocated revenues include revenues from services, commissions and rental income. Unallocated assets include cash and bank deposits not used in daily operations of either of the segments.

| Operating segments                                            |                    | 12m 2024 and as of 31.12.2024 |         |        |                                   |        |
|---------------------------------------------------------------|--------------------|-------------------------------|---------|--------|-----------------------------------|--------|
| in thousands of EUR                                           | Lingerie<br>retail | Lingerie<br>wholesale         | Total   |        | segments Unallocated Eliminations | Total  |
| Revenue from external customers                               | 22 482             | 35 517                        | 57 999  | 71     |                                   | 58 070 |
| Intersegment revenues                                         | 0                  | -34 740                       | -34 740 | -3 484 | 38 224                            | 0      |
| EBITDA                                                        | 10 446             | 10 034                        | 20 480  | -164   |                                   | 20 316 |
| Amortization and depreciation                                 | -2 133             | -612                          | -2 745  | -323   |                                   | -3 068 |
| Operating income, EBIT<br>Profit from associates using equity | 8 313              | 9 422                         | 17 735  | -487   | 0                                 | 17 248 |
| method                                                        | 0                  | 14                            | 14      | 0      |                                   | 14     |
| Net financial income                                          | -595               | -151                          | -746    | 729    |                                   | -17    |
| Income tax                                                    | -905               | -1 916                        | -2 821  | -751   |                                   | -3 572 |
| Net profit                                                    | 6 813              | 7 369                         | 14 182  | -509   | 0                                 | 13 673 |
| Investments in associates                                     | 0                  | 92                            | 92      | 0      |                                   | 92     |
| Other operating segments assets                               | 13 588             | 32 041                        | 45 629  | 38 768 |                                   | 84 397 |
| Reportable segments liabilities                               | 3 799              | 9 320                         | 13 119  | 2 039  |                                   | 15 158 |
| Capital expenditures<br>Number of employees as of reporting   | 2 262              | 792                           | 3 054   | 49     |                                   | 3 103  |
| date                                                          | 518                | 1 035                         | 1 553   | 102    |                                   | 1 655  |
| Operating segments<br>in thousands of EUR                     |                    | 12m 2023 and as of 31.12.2023 |         |        |                                   |        |

|                                                               | Lingerie | Lingerie  | Total   |        |                                   |        |
|---------------------------------------------------------------|----------|-----------|---------|--------|-----------------------------------|--------|
|                                                               | retail   | wholesale |         |        | segments Unallocated Eliminations | Total  |
| Revenue from external customers                               | 21 203   | 37 335    | 58 538  | 59     |                                   | 58 597 |
| Intersegment revenues                                         | 0        | -32 482   | -32 482 | -3 083 | 35 565                            | 0      |
| EBITDA                                                        | 8 888    | 12 376    | 21 264  | -144   |                                   | 21 120 |
| Amortization and depreciation                                 | -2 105   | -596      | -2 701  | -446   |                                   | -3 147 |
| Operating income, EBIT<br>Profit from associates using equity | 6 783    | 11 780    | 18 563  | -590   | 0                                 | 17 973 |
| method                                                        | 0        | 24        | 24      | 0      |                                   | 24     |
| Net financial income                                          | -704     | -233      | -937    | -2 501 |                                   | -3 438 |
| Income tax                                                    | -819     | -2 082    | -2 901  | -551   |                                   | -3 452 |
| Net profit                                                    | 5 260    | 9 489     | 14 749  | -3 642 | 0                                 | 11 107 |
| Investments in associates                                     | 0        | 85        | 85      | 0      |                                   | 85     |
| Other operating segments assets                               | 16 331   | 23 641    | 39 972  | 32 195 |                                   | 72 167 |
| Reportable segments liabilities                               | 9 840    | 3 304     | 13 144  | 2 245  |                                   | 15 389 |
| Capital expenditures<br>Number of employees as of reporting   | 1 927    | 871       | 2 798   | 36     |                                   | 2 834  |
| date                                                          | 500      | 1 028     | 1 528   | 98     |                                   | 1 626  |

# **Revenue and non-current assets breakdown by geographical areas**

Revenues in the table below are based on the geographical location of customers; segment assets are based on the geographical location of the assets.

# **Geographical segments**

| in thousands of EUR | Revenue<br>12m 2024 | Revenue<br>12m 2023 | Non-current<br>assets 31.12.2024 | Non-current<br>assets 31.12.2023 |
|---------------------|---------------------|---------------------|----------------------------------|----------------------------------|
| Russia              | 33 959              | 34 692              | 3 590                            | 3 638                            |
| Belarus             | 15 914              | 15 013              | 9 680                            | 8 784                            |
| Ukraine             | 108                 | 161                 | 0                                | 0                                |
| Baltics             | 1 294               | 1 443               | 323                              | 410                              |
| Other countries     | 6 795               | 7 288               | 25                               | 25                               |
| Total               | 58 070              | 58 597              | 13 618                           | 12 857                           |