Delfin Group

Annual Report • Feb 28, 2025

Financial report Unaudited results for 12 months

Ending 31 December 2024

Data for previous periods of 2023 restated as per corrections made in the audited annual statements for 2023

Total loans Issued

Profit before tax

Net loan portfolio

Consumer lending launched in Lithuania

• .n November 2024 company started consumer lending issuance in Lithuania.
• Loans are issued both online and offline at branch network.
• Now operations in Lithuania are carried out in all the business segments as in Latvia.

Capital markets & funding highlights

• Z B[nds ISIN LV0000860146 and LV0000802700 listed on Nasdaq First N[rth in N[vember 2Y24X
• Z In total 4 DelfinGroup bond issues are listed on the Nasdaq Baltic stock exchangeX
• Z In September 2024 DelfinGroup organized a successful public bond issue with oversubscription of 148% with total demand reaching EUR 22.3 million.

Bonds

Banks

P2P

• Z DelfinGr up raised 49 milli n eur s fr m Citadele {ank
• Z Citadele funding is an overdraft facility to ensure effective cash management and further growthX

• Z Diversified {ank financing of EUR 18.2 million split {etween 3 {anks

• Ñ Gradual decrease of P2P exposure from EUR 30.2 million at the beginning of the year to EUR 25 million at the end of 2024X

• Ñ Risk scores on Mintos remain at one of the best scores on the platform. Banknote 8.7 and V¸Z¸A 8.8 (10 being the best score).

branch network

Efficiency of the branch network has been set as a focus in Latvia to secure sustainable business operations.

Opening of new branches and expansion of Banknote XL network:

• Valmiera branch relocation, opening a new concept store
• Ogre, Skolas street branch redesigned to a more spacious store
• Riga, Marupe street branch redesigning to a more spacious store
• Work on the 4th XL concept branch opening in Liepaja. Opening is planned in late March

Operations in Lithuania started at the end of 2023. At the end of 2024, DelfinGroup has 7 branches in Vilnius.

Improved online store

Online store is now available in Banknote mobile app. New, improved UX/UI design. AI integrations for cross-sales / up-sales development and product description creation.

Renewed online store design according to latest standards

Improved UX for seamless shopping

Artificial intelligence (AI) integrations to automate manual work for product administration

65 000+ Goods available for sale 30 000+

Units sold via online store

8

Management improvements

Andrejs Aleksandrovičs CFO

Has become a member of the Management Board.

Andrejs is an experienced finance professional with more than 20 years of experience.

He has extensive experience as a finance expert in global companies such as Worldline, Brink's, First Data, and PricewaterhouseCoopers.

*Average consumer loan balance for one client at the end of period.

Consumer loans

• < T=e consumer lending portfolio continued increasing, as did t=e average loan amount and term. At t=e end of Q4 2024, t=e net loan portfolio reac=ed 104.0 million euros.
• < Due to stable demand and increasing ticket and term size, t=e consumer loan portfolio grew by 28% 2024.
• < Non-performing loan (NPL) ratio (loans late 90+ days) remains at a solid level of 2.4% w=ic= is significantly below company's internally set target of 7%.

Non-performing loan ratio

Average loan*

Consumer net loan portfolio

Weighted average term of loans issued

* Active portfolio excluding portfolio part where collateral is available for sale.

Pawn loans

• 8 Pawn loan portfolio has increased 18% in 2024.
• 8 Pawn loan issuance increased 9% in 12M period, and 12% in Q4 compared to corresponding periods last year.
• 8 khe average pawn loan amount has grown over the last year as inflation has pushed prices for items and jewelry.

Pawn net loan portfolio*

Average pawn loan amount

* Including directly purchased goods from clients and unredeemed items from pawnshop. Excluding wholesale of precious metals (scrap).

Retail of pre-owned goods*

• = Stable an> consistent growth has been achieve> in the retail segment by promoting the circular economy principles in Latvia an> Lithuania.
• = Retail sales of pre-owne> goo>s in Q4 2024 reache> historically highest quarterly amount, reaching EUR 4.6 million, a 15% increase to last year's respective perio>.
• = Online store sales gra>ually increasing after >esign an> UX up>ates an> a launch of operations in Lithuania.
• = Gross margin in Q4 at 39% which is in line with historic levels in the retail of pre-owne> goo>s segment.

Sales of pre-owned goods

Online store sales

m €	Q4 y-o-y				Q4 y-o-y
	+0.49		+126%		+0.42		+48%
0.39	0.56	0.55	0.77	0.88	0.86	0.94	1.00	1.30

Sales split by product category

Sales split by product category (Q4M 2024)

Clients have access to a wide range of pre-owned goods at Banknote online store and branch network. The most demanded product categories are electronics, such as smartphones, computers, TVs and jewelry.

Jewelry is professionally renewed and sold with its original appearance but for a more affordable price.

***Active consumer lending segment clients in Latvia **excluding wholesale of precious metals (scrap) and pawn pledges *including sold pawn pledges and pledge storage commissions

Diversification

• P Although the most significant part of the revenue stream comes from the consumer loan segment, we see great potential in gradually growing other DelfinGroup segments.
• P DelfinGroup products cover all age groups thanks to customised financial solutions.

Distribution of active clients by age on 31 December 2024iii

Revenue by business segments 12M 2024

Income statement, EUR'000	2024 Q4	2023 Q4	Change %	2024 12M	2023 12M	Change %
Total revenue	17,356	13,912	+25%	62,957	50,423	+25%
Cost of sales	-2,373	-1,977	+20%	-7,027	-6,086	+15%
Credit loss expenses	-4,060	-2,608	+56%*	-15,104	-10,687	+41%*
Interest expenses and similar expenses	-2,891	-2,450	+18%	-10,911	-8,579	+27%
Gross profit	8,031	6,878	+17%	29,916	25,071	+19%
Selling expenses	-2,985	-2,388	+25%	-11,002	-8,747	+26%
Administrative expenses	-2,421	-2,063	+17%	-9,340	-7,727	+21%
Other operating income	46	37	+23%	181	75	+140%
Other operating expenses	-75	-145	-48%	-375	-383	-2%
Profit before tax	2,596	2,319	+12%	9,378	8,290	+13%
Income tax expense	-568	-1,021	-44%**	-1,974	-1,662	+19%**
Net profit	2,028	1,298	+56%	7,404	6,628	+12%
EBITDA	5,983	5,137	+16%	22,135	18,191	+22%

Consolidated income statement

** Decreased Corporate income tax (CIT) in Q4 2024 compared to Q4 2023 due to changes in CIT regulation at the end of 2023 when all the tax for 2023 was applied in Q4 2023. In 2024 company paid CIT in full amount from pre-tax profit throughout the year and not from the dividends as it was in 2023.

* Credit loss expenses have increased mainly due to the significant loan portfolio growth over the last year, resulting in increased provisions. Costs also partly driven by increase in LGD

• S Tn 2024 company continued investing in Lithuanian business to set up TT systems, open branches and raise brand awareness.
• S Meanwhile Latvian business generated revenue growth of 24% in 2024.
• S Profit before tax for Latvian business increased 23% y-o-y and 25% q-o-q.
• S EBTTDA for Latvian business increased 26% y-oy and 22% q-o-q.

Balance sheet, EUR'000	31.12.2024	31.12.2023	Change %
Fixed and intangible assets	3,228	2,680	+20%
Right-of-use assets	2,653	2,887	-8%
Net loan portfolio	113,477	89,026	+27%
Inventory and scrap	3,991	3,391	+18%
Other assets	1,454	1,149	+52%
Cash	2,628	5,929	-56%
Total assets	127,431	105,061	+21%
Equity	25,057	21,322	+18%
Share capital and reserves	4,541	4,538	+0%
Share premium	6,891	6,891	+0%
Other capital reserves	223	170	+32%
Retained earnings	13,402	9,724	+38%
Liabilities	102,372	83,739	+22%
Interest-bearing debt	95,084	76,971	+24%
Trade payables and other liabilities	4,337	3,600	+20%
Lease liabilities for right-of-use assets	2,954	3,168	-7%
Total equity and liablities	127,431	105,061	+21%

Consolidated balance sheet

Financial ratios

EBITDA margin data for previous periods of 2023 restated as per corrections made in the audited annual statements for 2023. 18

***Annualized.

*Last 12 months figures.

**Including subordinated debt

Cost-to-income ratio*

Cost of interest-bearing liabilities

EUR 56 million of funding currently has a floating EURIBOR rate. A potential decrease in interest rates will positively impact the company's funding costs.

Interest coverage ratio*

EBITDA margin*

Q4 ²⁰²² Q1 Q2 Q3 Q4 ²⁰²³ Q1 Q2 Q3 Q4 2024 10% 10% 0 0 20% 20% 30% 30%

40% 36.2% 35.9% 36.1% 36.2% 36.2% 40%

36.6%

35.2% 36.6% 35.8%

ROE***

Adjusted equity ratio**

Capital structure

**Amount which has been subscribed from the initial placement on 31.12.2024.

Bond financing track record*

m €

Dividends

Unique dividend distribution proposal in Baltics

Quarterly dividends

• K At least 4 dividend payments pe6 yea5
• K Up to 50% f6om p6evious Q p6ofit

Dividend
peLiod

Q4 2024

• Q3 2024
• Q2 2024
• Q1 2024
• Q4 2023
• Q3 2023
• Q2 2023
• Q1 2023

Dividend payment date	EUR/ ShaLe	EUR Total	Payout Latio***
Upon shareholders approval**	0.0223**	1 012 564**	49.93%**
30.12.2024	0.0210	953 535	49.79%
01.10.2024	0.0202	916 626	49.76%
14.06.2024	0.0178	807 720	49.89%
16.04.2024	0.0143	648 898	49.99%
28.12.2023	0.0214	969 839	49.80%
29.09.2023	0.0195	883 732	49.95%
30.06.2023	0.0177	802 157	49.73%

Dividend peLiod

Annual

Annual

Dividend payment date	EUR/ ShaLe	EUR Total
12.07.2024	0.0088	399 322
17.05.2022, 15.07.2022	0.0552	2 501 642

***Dividend amount paid from the net profit of the respective quarter. **Proposed dividends, distribution is subject to Shareholders meeting decision.

*Based on share price of EUR 1.15 on 24 February 2025 and including management s proposed dividends from Q4 2024 net profit.

Dividend yield 7.8%*

*Average ratio for financial services companies listed on Nasdaq Baltic Main list on 31.12.2024. as per last published financial data.

Share performance

• M Share price changes since Q2 2024 due to the largest shareholder's public share offerings in which the shares were offered at a discount for a price of EUR 1.09 per share. Since then the share price has recovered to EUR 1.15 level.
• M DelfinGroup investors have received additionally EUR 0.2902 per share in dividends since IPN.

31.12.202m	DelfinGroup	Financial industry*
Capitalization m €	48.9
EPS TTM €	0.163
P/E	6.55	7.46
ROE	35.0%	20.2%

Share price and turnover, €

Share dynamics compared to indexes

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95%
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