Delfin Group

Interim / Quarterly Report • Aug 26, 2024

AS "DelfinGroup" Unaudited consolidated interim report January – June 2024

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Translation from Latvian

AS DelfinGroup Unaudited consolidated interim report

January – June 2024 (translation from Latvian)

Table of Contents

AS DelfinGroup Unaudited consolidated interim report

January – June 2024 (translation from Latvian)

Information on the Company and subsidiaries	3 – 5
Statement of management's responsibility	6
Management report	7 - 10
Interim consolidated Statement of profit or loss	12
Interim consolidated Balance sheet	13 – 14
Interim consolidated Statement of changes in equity	15
Interim consolidated Statement of cash flows	16
Notes	17 – 25

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Information on the Company and Subsidiaries

Name of the Company	DelfinGroup
Legal status of the Company	Joint stock company (till 19.01.2021, Limited liability company)
Number, place and date of registration	40103252854 Commercial Registry Riga, 12 October 2009
Operations as classified by NACE classification code system	NACE2 64.92 Other credit granting NACE2 47.91 Retail sale via mail order houses or via Internet NACE2 47.79 Retail sale of second-hand goods in stores NACE 47.77 Retail sale of watches and jewellery in specialised stores
Address	50A Skanstes Street, Riga, LV-1013 Latvia
Names and addresses of shareholders	SIA ALPPES Capital (18.35%), 12 Juras Street, Liepaja, Latvia
	SIA EC finance (14.93%), 50A Skanstes Street, Riga, Latvia
	SIA AE Consulting (8.21%), 50A Skanstes Street, Riga, Latvia
	Other (58.51%)
Names and positions of Board	Didzis Ādmīdiņš – Chairman of the Board (from 19.01.2021)
members	Aldis Umblejs – Member of the Board (from 15.12.2021)
	Nauris Bloks – Member of the Board (from 08.06.2023)
	Sanita Pudnika – Member of the Board (from 01.03.2022 to 28.06.2024)

Names and positions of Supervisory Board members	Agris Evertovskis – Chairperson of the Supervisory Board (from 13.04.2021)
	Gatis Kokins – Deputy Chairman of the Supervisory Board (from 13.04.2021)
	Mārtiņš Bičevskis – Member of the Supervisory Board (from 13.04.2021)
	Jānis Pizičs – Member of the Supervisory Board (from 13.04.2021)
	Edgars Voļskis – Member of the Supervisory Board (from 13.04.2021 to 22.05.2024)
Reporting period	1 January 2024 – 30 June 2024

Information on the Subsidiaries

Subsidiary	SIA ViziaFinance (parent company interest in subsidiary – 100%)
Date of acquisition of the subsidiary	23.02.2015
Number, place and date of registration of the subsidiary	40003040217; Riga, 06 December 1991
Address of the subsidiary	50A Skanstes Street, Riga, Latvia
Operations as classified by NACE classification code system of the subsidiary	64.92 Other financing services
Subsidiary	UAB DelfinGroup LT (parent company interest in subsidiary – 100%)
Date of establishment of the subsidiary	28.09.2023
Number, place and date of registration of the subsidiary	306462155; Vilnius, 28 September 2023

Statement of management`s responsibility

The management of AS DelfinGroup (hereinafter – the Company) is responsible for the preparation of the Consolidated interim report January – June 2024 (hereinafter – interim report) of the Company and its subsidiaries (hereinafter – the Group or DelfinGroup).

The interim report set out on pages 12 to 25 are prepared in accordance with the source documents and present the financial position of the Group as of 30 June 2024 and the results of its operations, changes in shareholders' equity and cash flows for the six-month period ended 30 June 2024. The management report set out on pages 7 to 11 presents fairly the financial results of the reporting period and future prospects of the Group.

The interim report are prepared on a going concern basis in accordance with International Financial Reporting Standards as adopted by the European Union. Appropriate accounting policies have been applied on a consistent basis. Prudent and reasonable judgments and estimates have been made by the Management in the preparation of the financial statements.

The Management of AS DelfinGroup is responsible for the maintenance of proper accounting records, the safeguarding of the Group's assets and the prevention and detection of fraud and other irregularities in the Group. The Management is also responsible for compliance with requirements of legal acts of the countries where Group companies and the Parent company operate.

Didzis Ādmīdiņš Chairman of the Board Aldis Umblejs Board Member Nauris Bloks Board Member

Management report

In the first half of 2024, the Latvian financial services group AS DelfinGroup achieved revenues of EUR 29.1 million, 25% more than in the corresponding period of 2023. In addition, EBITDA in the first six months of 2024 showed solid growth, increasing by 25% year-on-year to EUR 10.5 million. The significant improvement in revenue also contributed to the increase in profitability. Profit before tax for the first six months of 2024 was EUR 4.4 million, up 15%, while net profit increased by 2% to EUR 3.5 million.

Similar positive results were recorded in Q2 2024. Revenues increased by 24% compared to the same period last year and amounted to 14.8 million euros. EBITDA increased by 25% in Q2, while profit before tax rose by 18% to EUR 2.3 million. Net profit for the period was EUR 1.8 million, up 4%.

Strong demand for DelfinGroup products continued throughout the first half of 2024. The Group disbursed a record EUR 51.1 million in loans during this period, up 12%, while Q2 disbursements increased by 20% compared to last year. New consumer loan originations increased by 24% to EUR 19.6 million in Q2 and by 12% in the first 6 months of the year. Meanwhile, the pawn lending segment showed a significant improvement, increasing loan issuance by 10% to EUR 12.8 million in the 6-month period and setting a historical quarterly origination record of EUR 6.5 million in the second quarter of 2024. With increased lending in the first half of the year, a record net loan portfolio of EUR 101.5 million was achieved, already exceeding the strategic target of a net loan portfolio of EUR 100 million at the end of 2025. Since the beginning of the year, the Group's loan portfolio has grown by 14%.

The Group made significant improvements in the sales of the pre-owned, slightly pre-owned, and new goods segment. The segment's sales for the six-month period amounted to EUR 7.6 million, an increase of 12% compared to 2023, while in the second quarter, sales amounted to EUR 4 million.

In the 2nd quarter of 2024, the Group continued active work on business expansion, efficiency and promoting circular economy principles. Business development in Lithuania, where the first branches were opened at the end of 2023, continued, and based on the growing demand, the Group worked on expanding the branch network, leading to the opening of two more branches in Vilnius in July 2024. Also, during the second quarter, active efforts were made to obtain a licence for the provision of consumer loan services, which resulted in the Company's subsidiary DelfinGroup LT UAB being included in the Lithuanian public list of consumer lending service providers at the beginning of July 2024. During the rest of 2024, the Group will continue to work on expanding its branch network in Lithuania and launching its consumer loan offering in Lithuania.

In response to demand, the existing Banknote circular economy store in Daugavpils was expanded into a Banknote XL concept store, increasing the floor space and doubling the range of pre-owned and verified products. This step follows the Banknote XL concept, established last year with the opening of the first XL concept branch in Riga. Similarly, a third Banknote XL branch was opened in Rēzekne shortly after the end of Q2. The new store is almost four times bigger, providing people with an even more comprehensive range of pre-owned and verified products in one place.

In Q2, the Group's management team was strengthened, and Edgars Kokins, who is experienced in the industry, joined the team as Chief Revenue Officer. He will lead processes related to product and service sales, efficiency improvement, branch network development, and international expansion and take part in shaping the company's strategic growth. Edgars Kokins has rich and varied international experience, having worked in 35 countries – Europe, Africa, Asia and South America – and has worked for companies such as Eleving Group, Nutrameg, 4Finance, and CIVITTA, where he led the organisation towards successful change, growth and expansion. E. Kokins graduated with honours from the Stockholm School of Economics in Riga and has successfully led a team of over 250 people in fintech in 9 countries, as well as managed both restructuring and growth projects for existing businesses in Europe and Asia. Sanita Pudnika, the company's former Management Board Member and Chief Commercial Officer, resigned on 28 June.

Thanks to the public offering of shares by the Company's largest shareholders ALPPES Capital AS and Curiosity Capital SIA, the number of the Group's investors increased significantly during the last quarter. During the public offering, ALPPES Capital AS and Curiosity Capital SIA offered to sell up to 8,985,000 shares, representing 19.8% of the Company's total share capital. 1,046 investors from all the Baltic states participated, subscribing for 8,293,780 shares worth EUR 9,040,220, representing 92% of the offer volume. The highest demand came from Latvian investors. In addition to broad based retail interest, several family offices and large investors from Baltic states also participated in the share offer. With the successful closing of the public offer, the number of DelfinGroup shares in free float increased from 29.1% to 47.4%, one of the highest on the Nasdaq Baltic Exchange, which will further increase the liquidity of DelfinGroup shares on the exchange.

On 30 May 2024, the Annual General Meeting approved the 2023 Annual Report and the dividend payment. DelfinGroup shareholders approved two dividend payments. An annual dividend on 2023 profits of EUR 400 thousand, or EUR 0.0088 per share, with a payment date of 12 July 2024, and a quarterly dividend on 2024 Q1 profits of EUR 808 thousand, or EUR 0.0178 per share, with a payment date of 14 June 2024 were approved. As a result of these decisions, a dividend of EUR 1.2 million or EUR 0.0266 per share was paid to DelfinGroup shareholders.

During the reporting period, the Group continued its efforts to improve and diversify its capital structure, issuing new subordinated bonds with a nominal value of EUR 5 million. The bonds are offered as a private placement with a minimum investment of EUR 100,000. The coupon rate of the bonds is set at 11.00% + 3M EURIBOR with maturity on 25 May 2029. The issuance of the subordinated bonds ensures the long-term strengthening of the Group's capital structure, compliance with financial covenants and diversification.

The Group also continues its work on refinancing the existing bonds ISIN LV0000850055, maturing on 25 September 2024. To refinance the bonds, the Group is taking the necessary steps to organise a new public bond issue in the Baltics, offering the Company's bonds to retail and institutional investors. At the General Meeting held on 25 July 2024, the Company's shareholders approved a new public bond issue of up to EUR 15 million, delegating the Company's Management Board to take all necessary steps to conduct the public offer and bond issue. The planned bond issue will be the first public bond issue in the Group's history, as until now, all issues have been organised in the form of a private placement with a higher investment threshold. By organising a public bond issue, the Group intends to expand the Group's investor base by making the Company's bonds more accessible to Baltic investors.

By continuing to support the introduction of new and innovative solutions in children's healthcare services, the Group, in cooperation with the Children's Hospital Foundation, helped the Children's Clinical University Hospital (BKUS) to provide a new anaesthesia machine that will allow young patients to prepare more calmly for surgery. The Group has also supported the training of doctors in new technologies. The total donation to the hospital amounts to almost EUR 66,000.

Management report (CONTINUED)

By implementing the business strategy and all planned activities, the following financial results of the Group were achieved in the first six months of 2024 (profit statement items are compared to the same period of the previous year, balance sheet items are compared to the data as at 31.12.2023):

Position	EUR, million	Change, %
Net loan portfolio	101.5	+14.1
Assets	117.4	+11.7
Revenue	29.1	+24.9
EBITDA	10.5	+26.4
Profit before taxes	4.4	+14.9
Net profit	3.5	+2.3*

*In relation to the changes in CIT applied at the end of 2023 for banks and non-bank lenders, an advance of 20% of the whole 2023 profit was recognised in Q4 2023. As a result, CIT expenses for the first six months of 2023 were recognised only for the distributed dividends. If these changes had not come into effect, the net profit for first six months of 2024 would have been EUR 4.0 million, representing an 18.0% increase compared to the same period of the previous year.

And following the Group's key financial figures for the last 5 financial quarters:

Position	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2
Revenue, EUR million	12.0	13.2	13.9	14.3	14.8
EBITDA, EUR million	4.3	4.8	5.1	5.0	5.4
EBITDA margin, %	36%	36%	36%	36%	36%
EBIT, EUR million	4.0	4.5	4.8	4.6	5.0
EBIT margin, %	33%	33%	34%	34%	34%
Profit before taxes, EUR million	2.0	2.2	2.3	2.0	2.3
Net profit, EUR million	1.8	1.9	1.3	1.6	1.8
Net profit margin, %	16%	15%	13%	12%	13%
ROE (annualised), %	37%	40%	26%	30%	33%
ROA (annualised), %	8%	9%	6%	6%	7%
ROCE (annualised), %	36%	35%	34%	25%	26%
Current ratio	0.7	0.9	1.0	0.9	1.0

In some cases, quantitative values have been rounded up to the nearest decimal place or whole number to avoid an excessive level of detail. As a result, certain values may not necessarily add up to the respective totals due to the effects of the approximation. 2023 Q1 and Q2 are corrected by restatements in Note 1.

EBITDA calculation, EUR million:

	2024 Q2	2023 Q2
Item
Profit before tax	2.3	2.0
Interest expenses and similar expenses	2.7	2.1
Depreciation of fixed assets and amortisation	0.4	0.3
EBITDA, EUR million	5.4	4.3

Management report (CONTINUED)

As for compliance with the Issue Terms of notes ISIN LV0000850055, ISIN LV0000802718, ISIN LV0000802700, ISIN LV0000860146 and ISIN LV0000870145 the financial covenant computation is as follows:

Covenant	Value as of 30.06.2024	Compliance
to maintain a Capitalization Ratio at least 25%	29%	yes
to maintain consolidated Interest Coverage Ratio of at least 1.5 times, calculated on the trailing 12 month basis	2.0	yes
to maintain the Net Loan portfolio, plus Cash and Cash Equivalents, net value of outstanding Mintos Debt Security and Bank Debt Security I, at least 1.2 times the outstanding principal amount of all unsecured interest-bearing debt excluding Subordinated debt on a consolidated basis.	1.5	yes

Principles of alternative performance measures

Dividend yield = dividends paid per share / share price at the end of the period * 100.

Net loan portfolio = non-current loans and receivables + current loans and receivables.

Revenue = net sales + interest income and similar income.

EBITDA margin = (profit before tax + interest expenses and similar expenses + depreciation of property, plant and equipment and amortization of intangible assets + depreciation of right-of-use assets) / (net sales + interest income and similar income) * 100.

EBIT margin = (profit before tax + interest expenses and similar expenses) / (net sales + interest income and similar income) * 100.

Net profit margin = net profit / (net sales + interest income and similar income) * 100.

Return on equity (ROE) = net profit / ((total equity as at start of the period + total equity as at period end) / 2) * 100.

Return on assets (ROA) = net profit / ((total assets as at start of the period + total assets as at period end) / 2) * 100.

Return on capital employed (ROCE) = EBIT / (((total assets as at start of the period + total assets as at period end) / 2) – ((short-term liabilities as at start of the period + short-term liabilities as at period end) / 2)) * 100.

Current ratio = total current assets / total short-term liabilities * 100.

Capitalization ratio = (total equity + subordinated debt) / (non-current loans and receivables + current loans and receivables + inventories + other debtors) * 100.

Interest coverage ratio = EBITDA / interest expenses and similar expenses.

Equity ratio = total equity / total assets * 100.

Cost to income ratio = (selling expenses + administrative expenses + other operating expenses – debt sale results) / (net sales – cost of sales + interest income and similar income – interest expenses and similar expenses + other operating income) * 100.

Management report (CONTINUED)

Investor information

DelfinGroup shares are listed on the Baltic Main List in Nasdaq Riga with ISIN code LV0000101806. Shareholders receive 1 vote per share. On 30 June, 2024, a total of 45 377 505 share were issued, the price of which was 1.086 euros, making the total market capitalization of 49.3 million euros.

Share trading information	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2
Opening price, EUR	1.51	1.365	1.33	1.305	1.23
High price, EUR	1.54	1.37	1.34	1.32	1.266
Low price, EUR	1.355	1.32	1.22	1.22	1.00
Last price, EUR	1.365	1.32	1.305	1.235	1.086
Turnover, mEUR	1.67	1.40	0.89	0.79	1.87
Capitalization, mEUR	61.86	59.82	59.22	56.04	49.28

Share price changes and turnover

Branches

As at 30 June 2024, the Group had 96 branches, 89 in Latvia and 7 in Lithuania (31.12.2023 - 96 branches, 91 in Latvia and 5 in Lithuania).

Risk management

The Group is not exposed to foreign exchange rate risk because the basic transaction currency is the Euro. The funding of the Group consists of both fixed rate and floating rate borrowings, so the Group is exposed to variable interest rate risk. Accurate application of the prudent strategies chosen has allowed the Group to successfully manage its financial risks, particularly the liquidity and credit risk. All Group transactions are performed in Latvia, the Group has no counterparties in Russia and Belarus thus the impact of the war in Ukraine and the associated sanctions has insignificant effect on the company's operations.

Distribution of the profit proposed by the Company

The Company's board recommends the distribution of Q2 2024 profit as dividends in accordance with the Company's dividend policy, which sets the target of up to 50% quarterly dividend pay out.

Didzis Ādmīdiņš Chairman of the Board Aldis Umblejs Board Member

Nauris Bloks Board Member

Interim consolidated Statement of profit or loss January – June 2024

		For 6 months ended 30 June		For 3 months ended 30 June
		2024	2023 (restated, note 1)	2024	2023 (restated, note 1)
	Notes	EUR	EUR	EUR	EUR
Net sales	(2)	4 287 230	3 912 554	1 959 078	1 813 990
Cost of sales		(2 670 468)	(2 468 200)	(1 165 548)	(1 095 977)
Interest income and similar income	(3)	24 810 540	19 389 997	12 878 786	10 155 940
Interest expenses and similar expenses	(4)	(5 222 432)	(3 844 283)	(2 661 772)	(2 052 323)
Credit loss expenses		(6 971 408)	(5 235 588)	(3 549 987)	(2 769 195)
Gross profit		14 233 462	11 754 480	7 460 557	6 052 435
Selling expenses	(5)	(5 163 325)	(4 115 790)	(2 575 167)	(2 053 218)
Administrative expenses	(6)	(4 550 238)	(3 722 602)	(2 482 441)	(1 957 751)
Other operating income		62 394	26 911	37 524	11 968
Other operating expenses		(219 198)	(146 333)	(116 680)	(82 084)
Profit before corporate income tax		4 363 095	3 796 666	2 323 793	1 971 350
Income tax expenses		(902 021)	(414 428)	(481 581)	(202 198)
Net profit		3 461 074	3 382 238	1 842 212	1 769 152
Basic earnings per share	(7)	0.076	0.075	0.041	0.039
Diluted earnings per share	(7)	0.076	0.075	0.041	0.039

Notes on pages from 17 to 25 are an integral part of these interim reports.

Didzis Ādmīdiņš	Aldis Umblejs	Nauris Bloks
Chairman of the Board	Board Member	Board Member

Interim consolidated Balance sheet as at 30 June 2024

Assets		Group 30 June 2024	Group 31 December 2023
Non-current assets:	Notes	EUR	EUR
Intangible assets:
Patents, licences, trademarks and similar rights		11 624	13 946
Internally developed software		896 436	799 156
Other intangible assets		1 051 216	769 917
Goodwill		127 616	127 616
Work in progress internally developed software		27 248	31 678
Advances for intangible assets		35 523	125 044
Total intangible assets:		2 149 663	1 867 357
Property, plant and equipment:
Land, buildings and structures		177 240	174 597
Leasehold improvements		336 138	315 442
Right-of-use assets		2 804 126	2 887 270
Other fixtures and fittings, tools and equipment		369 014	322 104
Total property, plant and equipment		3 686 518	3 699 413
Non-current financial assets:
Loans and receivables	(8)	78 974 281	66 686 257
Total non-current financial assets:		78 974 281	66 686 257
Total non-current assets:		84 810 462	72 253 027
Current assets: Inventories:
Finished goods and goods for sale		3 781 846	3 390 882
Total inventories:		3 781 846	3 390 882
Receivables:
Loans and receivables	(8)	22 575 061	22 339 708
Other debtors		1 315 283	913 637
Total receivables:		23 890 344	23 253 345
Deferred expenses		544 275	235 250
Cash and cash equivalents		4 354 119	5 928 570
Total current assets:		32 570 584	32 808 047
Total assets		117 381 046	105 061 074

Notes on pages from 17 to 25 are an integral part of these interim reports.

Didzis Ādmīdiņš Chairman of the Board

Aldis Umblejs Board Member

Nauris Bloks Board Member

Interim consolidated Balance sheet as at 30 June 2024

		Group	Group
Liabilities and equity		30 June 2024	31 December 2023
Equity:	Notes	EUR	EUR
Share capital		4 537 751	4 537 751
Share premium		6 890 958	6 890 958
Other capital reserves		214 812	169 812
Retained earnings	(9)	11 328 727	9 723 592
Total equity:		22 972 248	21 322 113
Liabilities:
Long-term liabilities:
Bonds issued	(10)	31 699 321	26 862 004
Loans from credit institutions	(11)	11 683 681	6 406 925
Other borrowings	(12)	15 220 393	14 904 405
Lease liabilities for right-of-use assets		2 295 060	2 337 138
Total long-term liabilities:		60 898 455	50 510 472
Short-term liabilities:
Bonds issued	(10)	14 021 963	13 404 540
Loans from credit institutions	(11)	1 615 030	887 067
Other borrowings	(12)	12 057 567	14 505 929
Lease liabilities for right-of-use assets		800 866	831 318
Trade payables		910 647	1 011 347
Taxes and social insurance		2 422 766	393 498
Unpaid dividends		399 322	996 770
Accrued liabilities		1 282 182	1 198 020
Total short-term liabilities:		33 510 343	33 228 489
Total liabilities		94 408 798	83 738 961
Total liabilities and equity		117 381 046	105 061 074

Notes on pages from 17 to 25 are an integral part of these interim reports.

Didzis Ādmīdiņš Chairman of the Board

Aldis Umblejs Board Member Nauris Bloks Board Member

Interim consolidated Statement of changes in equity January - June 2024

	Share capital	Share premium	Other capital reserves	Retained earnings	Total
	EUR	EUR	EUR	EUR	EUR
As at 01 January 2023	4 531 959	6 890 958	93 058	6 589 761	18 105 736
Profit for the reporting period	-	-	-	3 382 238	3 382 238
Dividends paid	-	-	-	(1 640 568)	(1 640 568)
Share-based payments	-	-	70 002	-	70 002
As at 30 June 2023	4 531 959	6 890 958	163 060	8 331 431	19 917 408

As at 01 January 2024	4 537 751	6 890 958	169 812	9 723 592	21 322 113
Profit for the reporting period	-	-	-	3 461 074	3 461 074
Dividends paid	-	-	-	(1 855 939)	(1 855 939)
Share-based payments	-	-	45 000	-	45 000
As at 30 June 2024	4 537 751	6 890 958	214 812	11 328 727	22 972 248

Notes on pages from 17 to 25 are an integral part of these interim reports.

Didzis Ādmīdiņš Chairman of the Board

Aldis Umblejs Board Member Nauris Bloks Board Member

Interim consolidated statement of cash flows January - June 2024

		For 6 months ended	For 6 months ended
		30 June 2024	30 June 2023
	Notes	EUR	EUR
Cash flow from operating activities
Profit before corporate income tax		4 363 095	3 796 666
Adjustments for non-cash items:
a) depreciation and amortisation		427 796	230 462
b) depreciation of right-of-use assets		436 640	349 676
c) credit loss expenses		6 971 408	5 235 588
d) share-based payment expense		45 000	70 002
e) interest income and similar income	(3)	(24 810 540)	(19 389 997)
f) interest expenses and similar expenses	(4)	5 222 432	3 844 283
Profit before adjustments of working capital and short-term liabilities Change in operating assets/liabilities:		(7 344 169)	(5 863 320)
a) (Increase) on loans and receivables and other debtors		(20 600 007)	(14 966 783)
b) (Increase)/ decrease on inventories		(390 964)	(2 372 530)
c) (Decrease)/ increase on trade payable and accrued liabilities		788 150	1 472 552
Gross cash flow from operating activities		(27 546 990)	(21 730 081)
Interest received		25 205 091	18 310 109
Interest paid		(5 971 294)	(4 218 186)
Corporate income tax payments		(611 818)	(1 296 108)
Net cash flow from operating activities		(8 925 011)	(8 934 266)
Cash flow from investing activities
Acquisition of property, plant and equipment		(203 281)	(139 284)
Acquisition of intangible assets		(577 070)	(444 574)
Net cash flow from investing activities		(780 351)	(583 858)
Cash flow from financing activities
Loans received		16 234 780	10 609 891
Loans repaid		(11 149 833)	(3 804 877)
Bonds issued		5 991 000	5 466 000
Redemption of bonds		(1 000 000)	-
Repayment of lease liabilities		(488 419)	(468 746)
Dividends paid		(1 456 617)	(1 640 568)
Net cash flow from financing activities		8 130 911	10 161 700
Net cash flow of the reporting period		(1 574 451)	643 576
Cash and cash equivalents at the beginning of the reporting period		5 928 570	2 369 029
Cash and cash equivalents at the end of the reporting period		4 354 119	3 012 605

Notes on pages from 17 to 25 are an integral part of these interim reports.

Didzis Ādmīdiņš Chairman of the Board Aldis Umblejs Board Member

Nauris Bloks Board Member

(1) Accounting policies

Basis of preparation

These financial statements have been prepared based on the accounting policies and measurement principles as set out below.

The interim reports for the six-months ended 30 June 2024 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Management considers that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim reports do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2023.

These interim reports are prepared and disclosed on a consolidated basis. The following subsidiaries are included in the consolidation: SIA ViziaFinance (100%) and UAB DelfinGroup LT (100%) for the period ended 30 June 2024.

Restatement in comparative figures due to correction of errors

(a) The Management has identified a classification error on pawn loans while preparing Group's financial statements. The error relates to incorrect classification of collateral as Net sales. The error resulted in overstatement of the Group's Net sales by EUR 637 210, Cost of sales by EUR 376 405 for 6 months ended 30 June and Net sales by EUR 432 968, Cost of sales by EUR 305 291 for 3 months ended 30 June understatement of Interest income and similar income by EUR 260 805 in statement of profit and loss for the prior 6 months ended 30 June 2023 and 127 677 for the 3 months ended 30 June 2023.

The aforementioned corrections were performed by restating each of the affected financial statements line items for the prior 6 months ended 30 June period, as follows:

Statement of profit or loss

	Reference	Before restatement	Restatement	After restatement
		for 6 months ended 30 June 2023		for 6 months ended 30 June 2023
Net sales	(a)	4 549 764	(637 210)	3 912 554
Cost of sales	(a)	(2 844 605)	376 405	(2 468 200)
Interest income and similar income	(a)	19 129 192	260 805	19 389 997
Interest expenses and similar expenses		(3 844 283)	-	(3 844 283)
Credit loss expense		(5 235 588)	-	(5 235 588)
Gross profit		11 754 480	-	11 754 480
Selling expenses		(4 115 790)	-	(4 115 790)
Administrative expenses		(3 722 602)	-	(3 722 602)
Other operating income		26 911	-	26 911
Other operating expenses		(146 333)	-	(146 333)
Profit before corporate income tax		3 796 666	-	3 796 666
Income tax expenses		(414 428)	-	(414 428)
Net profit		3 382 238	-	3 382 238

The aforementioned corrections were performed by restating each of the affected financial statements line items for the prior 3 months ended 30 June period, as follows:

Statement of profit or loss

	Reference	Before restatement for 3 months ended 30 June 2023	Restatement	After restatement for 3 months ended 30 June 2023
Net sales	(a)	2 246 958	(432 968)	1 813 990
Cost of sales	(a)	(1 401 268)	305 291	(1 095 977)
Interest income and similar income	(a)	10 028 263	127 677	10 155 940
Interest expenses and similar expenses		(2 052 323)	-	(2 052 323)
Credit loss expense		(2 769 195)	-	(2 769 195)
Gross profit		6 052 435	-	6 052 435
Selling expenses		(2 053 218)	-	(2 053 218)
Administrative expenses		(1 957 751)	-	(1 957 751)
Other operating income		11 968	-	11 968
Other operating expenses		(82 084)	-	(82 084)
Profit before corporate income tax		1 971 350	-	1 971 350
Income tax expenses		(202 198)	-	(202 198)
Net profit		1 769 152	-	1 769 152

(2) Net sales

Net revenue by type of revenue

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
		(restated,		(restated,
		note 1)		note 1)
	EUR	EUR	EUR	EUR
Income from sales of goods	2 878 440	3 264 004	1 208 509	1 558 431
Income from sales of precious metals	839 690	140 936	461 224	-
Other income (loan and storage commission) for financial
instruments measured as FVTPL	569 100	507 614	289 345	255 559
	4 287 230	3 912 554	1 959 078	1 813 990

(3) Interest income and similar income

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
		(restated,		(restated,
		note 1)		note 1)
	EUR	EUR	EUR	EUR
Interest income on unsecured loans according to effective interest rate method Interest income on pawn loans Other interest income according to effective interest rate method	20 836 373 3 974 268 (101)	16 484 378 2 903 001 2 618	10 797 110 2 081 676 -	8 905 542 1 248 457 1 941
	24 810 540	19 389 997	12 878 786	10 155 940

(4) Interest expenses and similar expenses

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
	EUR	EUR	EUR	EUR
Bonds' interest expense	3 179 304	1 326 879	1 621 269	718 971
Interest expense on other borrowings	1 278 416	2 447 811	613 436	1 304 100
Interest expense on loans from credit institutions	652 606	21 269	366 597	21 269
Interest expense on lease liabilities for leased premises	110 963	46 957	59 935	7 266
Interest expense lease liabilities for leased vehicles	1 143	1 349	535	735
Net loss on foreign exchange	-	18	-	(18)
	5 222 432	3 844 283	2 661 772	2 052 323

(5) Selling expenses

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
	EUR	EUR	EUR	EUR
Salary expenses	1 873 700	1 653 394	928 875	859 130
Advertising expenses	834 161	448 403	418 216	217 808
Depreciation of property, plant and equipment and amortisation of
intangible assets	427 796	230 462	215 599	112 311
Social insurance expenses	416 846	390 358	209 629	203 644
Depreciation of right-of-use assets - premises	379 374	344 729	193 475	182 443
Non-deductible VAT	334 994	258 761	183 977	102 750
Maintenance expenses	290 090	227 525	152 546	113 691
Utilities expenses	184 088	175 583	74 404	70 164
Provisions for unused annual leave	56 495	53 530	24 772	19 713
Transportation expenses	45 092	39 753	22 702	21 948
Depreciation of right-of-use assets - motor vehicles	5 574	4 947	2 787	2 787
Other expenses	315 115	288 345	148 185	146 829
	5 163 325	4 115 790	2 575 167	2 053 218

(6) Administrative expenses

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
	EUR	EUR	EUR	EUR
Salary expenses	2 553 297	2 060 558	1 399 000	1 077 254
Social insurance expenses	602 444	523 166	323 868	272 322
Bank commission	544 936	484 130	298 480	271 714
Communication expenses	290 557	193 593	148 881	65 932
Legal and professional services	96 242	65 650	65 281	54 089
State fees and duties, licence expenses	68 313	67 447	34 007	33 630
Provisions for unused annual leave	60 104	75 895	16 687	36 884
Depreciation of right-of-use assets - premises	49 345	46 957	23 314	23 478
Public relations expenses	46 089	38 838	30 979	26 432
Audit expenses	13 200	7 510	13 200	7 510
Depreciation of right-of-use assets - motor vehicles	2 347	-	1 174	-
Other administrative expenses	223 364	158 858	127 570	88 506
	4 550 238	3 722 602	2 482 441	1 957 751

(7) Basic earnings and Diluted earnings per share

Earnings per share are calculated by dividing the net result for the year after taxation attributable to shareholders by the weighted average number of shares in issue during the year. The dilution effect when calculation the Diluted earnings per share comes from share options granted on 1 December 2022 to employees of the Group. The table below presents the income and share data used in the computations of basic earnings and Diluted earnings per share for the Group:

	For 6 months ended 30 June		For 3 months ended 30 June
	2024	2023	2024	2023
	EUR	EUR	EUR	EUR
Net profit attributed to shareholders	3 461 074	3 382 238	1 842 212	1 769 152
Weighted average number of shares	45 377 505	45 319 594	45 377 505	45 319 594
Earnings per share	0.076	0.075	0.041	0.039
Weighted average number of shares used for calculating the diluted earnings per shares	45 419 370	45 363 687	45 419 370	45 363 687
Diluted earnings per share	0.076	0.075	0.041	0.039

(7) Basic earnings and Diluted earnings per share (continued)

The table below presents the income and share data used in the computations of earnings per share for the Group:

	Change EUR	Actual number of shares after transaction
		EUR
For 6 months ended 30 June 2023
Number of shares at the beginning of the period		45 319 594
Number of shares at the end of the period		45 319 594
Weighted average number of shares:		45 319 594
Weighted average number of share options for DelfinGroup AS employees granted in
January – June 2023*		52 033
Weighted average potential number of shares		45 363 687
For 6 months ended 30 June 2024
Number of shares at the beginning of the period		45 377 505
Number of shares at the end of the period		45 377 505
Weighted average number of shares:		45 377 505
Weighted average number of share options for DelfinGroup AS employees granted in
January – June 2024**		41 865
Weighted average potential number of shares		45 419 370

*Number of shares granted on 1 December 2022 73 968 with FV at grant date 1.258 EUR and option exercise price 0.10 EUR. 7 006 of these shares were cancelled because employees to whom the shares were granted left the Group before the term of share options could be exercised. **Number of shares granted on 30 June 2023 40 196 with FV at grant date 1.168 EUR and option exercise price 0.10 EUR. Number of shares granted on 31 December 2023 44 806 with FV at grant date 1.116 EUR and option exercise price 0.10 EUR.

(8) Loans and receivables

a) Loans and receivables by loan type

	Group 30 June 2024	Group
	EUR	31 December 2023 EUR
Pawn loans measured at fair value
Long-term pawn loans	191 331	198 079
Short-term pawn loans	8 117 509	6 982 259
Interest accrued for pawn loans	312 063	261 743
Pawn loans measured at fair value, total	8 620 903	7 442 081
Debtors for loans issued without pledge
Long-term debtors for loans issued without pledge	78 782 950	66 488 178
Short-term debtors for loans issued without pledge	19 797 570	18 909 730
Interest accrued for loans issued without pledge	3 539 865	2 989 733
Debtors for loans issued without pledge, total	102 120 385	88 387 641
Loans and receivables before allowance, total	110 741 288	95 829 722
ECL allowance on loans issued without pledge	(9 191 946)	(6 803 757)
Loans and receivables	101 549 342	89 025 965

All loans are issued in euros. Weighted average term for consumer loans is 2.5 years and for pawn loans is one month.

The Group signed a contract with a third party for the receivable amounts regular debt sale to assign debtors for loans issued which are outstanding for more than 60 days. Losses from these transactions were recognised in the current period.

Pawn loans in the amount of EUR 8 620 903 (31.12.2023: EUR 7 442 081) are secured by the value of the collateral and measured at fair value.

(8) Loans and receivables (continued)

b) Allowance for impairment of loans issued without pledge at amortised cost

An analysis of changes in the gross carrying value for loans issued and corresponding ECL during the six-month period ended 30 June 2024 is as follows:

Group	Stage 1	Stage 2	Stage 3	Total
Gross carrying value as at 1 January 2024	84 286 323	2 199 712	1 901 606	88 387 641
New assets originated or purchased	38 264 068	-	-	38 264 068
Assets settled or partly settled	(18 663 242)	(2 018 898)	(744 002)	(21 426 142)
Assets derecognised due to debt sales	-	(2 451 965)	(1 094 034)	(3 545 999)
Assets written off	-	-	(216 757)	(216 757)
Effect of interest accruals	461 614	60 800	135 160	657 574
Transfers to Stage 1	477 054	(420 343)	(56 711)	-
Transfers to Stage 2	(6 937 783)	6 942 588	(4 805)	-
Transfers to Stage 3	(1 089 353)	(1 420 989)	2 510 342	-
At 30 June 2024	96 798 681	2 890 905	2 430 799	102 120 385
Group	Stage 1	Stage 2	Stage 3	Total
ECL as at 1 January 2024	4 161 063	855 126	1 787 568	6 803 757
New assets originated or purchased	3 183 943	-	-	3 183 943
Assets settled or partly settled	(1 515 970)	(894 341)	(413 372)	(2 823 683)
Assets derecognised due to debt sales	-	(1 933 276)	(1 035 569)	(2 968 845)
Assets written off	-	-	(214 771)	(214 771)
Effect of interest accruals	50 983	35 928	135 160	222 071
Transfers to Stage 1	39 194	(185 792)	(31 491)	(178 089)
Transfers to Stage 2	(599 873)	3 072 050	(2 684)	2 469 493
Transfers to Stage 3	(84 713)	(627 550)	1 396 433	684 170
Impact on period end ECL changes in credit risk and
inputs used for ECL calculation	385 816	931 990	696 094	2 013 900
At 30 June 2024	5 620 443	1 254 135	2 317 368	9 191 946

c) Age analysis of loans issued without pledge at amortised cost:

	Group	Group 31 December 2023 EUR
	30 June 2024
	EUR
Receivables not yet due	89 226 548	79 059 132
Outstanding 1-30 days	7 572 134	5 227 191
Outstanding 31-90 days	2 890 905	2 199 712
Outstanding 91-180 days	599 351	494 068
Outstanding for 181-360 days	685 871	514 729
Outstanding for more than 360 days	1 145 576	892 809
Total claims against debtors for loans issued	102 120 385	88 387 641

d) Age analysis of provision for bad and doubtful trade debtors:

	Group	Group 31 December 2023 EUR
	30 June 2024
	EUR
For trade debtors not yet due	4 244 353	3 299 618
Outstanding 1-30 days	1 454 376	912 746
Outstanding 31-90 days	1 379 303	930 393
Outstanding 91-180 days	466 702	350 619
Outstanding for 181-360 days	583 533	477 273
Outstanding for more than 360 days	1 063 679	833 108
Total provisions for bad and doubtful trade debtors	9 191 946	6 803 757

Loan loss allowance has been defined based on collectively assessed impairment. For ECL calculation purposes debtors for loans issued without pledge were grouped by brands – Banknote and VIZIA.

(9) Retained earnings

	For 6 months ended 30 June
	2024	2023
	EUR	EUR
Balance as at 1 January	9 723 592	6 589 761
Net profit for the period	3 461 074	3 382 238
Dividends declared and paid:
Interim dividends of 0.0321 EUR (2023: 0.0362 EUR) per share	(1 456 617)	(1 640 568)
Dividends declared:
Annual dividend of 0.0088 EUR	(399 322)	-
Balance as at 30 June	11 328 727	8 331 431

(10) Bonds issued

	Group 30 June 2024 EUR	Group 31 December 2023 EUR
Total long-term part of bonds issued	31 699 321	26 862 004
Bonds issued Interest accrued	13 938 724 83 239	13 330 155 74 385
Total short-term part of bonds issued	14 021 963	13 404 540
Bonds issued, total Interest accrued, total	45 638 045 83 239	40 192 159 74 385
Bonds issued net	45 721 284	40 266 544

As of 30 June 2024, the Company of the Group has outstanding bonds (ISIN LV0000850055) in the amount of EUR 10 000 000, registered with the Latvia Central Depository and issued in a closed offer on 7 July 2022 on the following terms – number of financial instruments is 10 000, with a nominal value 1 000 euro per each bond, coupon rate – 3M EURIBOR + 8.75%, coupon is paid once a month on the 25th date. The principal amount (EUR 1 000 per each bond) is to be repaid by 25 September 2024. The bond issue in full amount is traded on NASDAQ Baltic First North Alternative market as of 03.07.2023. The bonds are not secured.

As of 30 June 2024, the Company of the Group has outstanding bonds (ISIN LV0000802718) in the amount of EUR 15 000 000, registered with the Latvia Central Depository and issued in a closed offer on 1 August 2023 on the following terms – number of financial instruments is 15 000, with a nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 9.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 1 000 per each bond) is to be repaid by 25 February 2026. The bond issue in full amount is traded on NASDAQ Baltic First North Alternative market as of 03.10.2023. The bonds are not secured.

As of 30 June 2024, the Company of the Group has outstanding subordinated bonds (ISIN LV0000802700) in the amount of EUR 5 000 000, registered with the Latvia Central Depository and issued in a closed offer on 24 July 2023 on the following terms – number of financial instruments is 5 000, with a nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 11.50%, coupon is paid once a month on the 25th date. The principal amount (EUR 1 000 per each bond) is to be repaid by 25 July 2028. The bonds are not secured.

As of 30 June 2024, the Company of the Group has outstanding bonds (ISIN LV0000860146) in the amount of EUR 15 000 000, registered with the Latvia Central Depository and issued in a closed offer on 03 October 2023 on the following terms – number of financial instruments is 15 000, with a nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 9.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 1 000 per each bond) is to be repaid by 25 July 2028. The bonds are not secured.

As of 30 June 2024, the Company of the Group has outstanding subordinated bonds (ISIN LV0000870145) in the amount of EUR 5 000 000, registered with the Latvia Central Depository and issued in a closed offer on 29 May 2024 on the following terms – number of financial instruments is 5 000, with a nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 11.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 1 000 per each bond) is to be repaid by 25 May 2029. The bonds are not secured.

As at 30 June 2024 the Group is in compliance with covenants stated in all Terms of the Notes Issue. Please see covenants disclosed in Management report.

The group has devised a strategic plan to issue new bonds with the aim of refinancing its existing maturing liabilities as well as continue placing loans on the Mintos P2P platform. This approach will enable the group to settle its outstanding debt by utilizing the proceeds generated from the sale of these newly issued bonds and funding attracted on Mintos.

(11) Loans from credit institutions

	Group 30 June 2024	Group 31 December 2023
	EUR	EUR
Long-term loans from credit institutions	11 683 681	6 406 925
Total long-term loans from credit institutions	11 683 681	6 406 925
Short-term loans from credit institutions	1 615 030	887 067
Total short-term loans from credit institutions	1 615 030	887 067
Loans from credit institutions, total	13 298 711	7 293 992

At 30 June 2024 the Company of the Group have loans from credit institutions with floating interest rates (the base interest rate of 3M EURIBOR plus fixed rate) and maturities in 2025 and 2026.

To ensure fulfilment of liabilities the Group has registered commercial pledge, see note 15. As at 30 June 2024 the Group is in compliance with covenants.

(12) Other borrowings

	Group 30 June 2024	Group 31 December 2023
	EUR	EUR
Other long-term loans	15 220 393	14 904 405
Total other long-term loans	15 220 393	14 904 405
Other short-term loans	12 057 567	14 505 929
Total other short-term loans	12 057 567	14 505 929
Other loans, total	27 277 960	29 410 334

Amount of other borrowings is represented by loans received from crowdfunding platform Mintos, a platform registered in the European Union. The weighted average annual interest rate as of 30 June 2024 is 8.1%. According to the loan agreement with SIA Mintos Finance the loans matures according to the particular loan agreement terms concluded by the Group with its customers.

To ensure fulfilment of liabilities the Group has registered commercial pledge, see note 15. As at 30 June 2024 the Group is in compliance with covenants.

(13) Related party transactions

Group's transactions

	Transactions for 6 months 2024 EUR	Transactions in 2023 EUR
Shareholders Interest paid	43 891	51 556
Key management personnel Interest paid	1 433	683
Other related companies Services received	2 000	4 250

Bonds issued to the related companies

	Group 30 June 2024	Group 31 December 2023
	EUR	EUR
Key management personnel	33 000	20 000
Shareholders	300 000	300 000
Long-term part of bonds issued to the related companies, total	333 000	320 000
Shareholders	307 000	307 000
Short-term part of bonds issued to the related companies, total	307 000	307 000
Bonds issued to the related companies, total	640 000	627 000

(14) Segment information

For management purposes, the Group is organised into four operating segments based on products and services as follows:

Pawn loan segment	Handling pawn loan issuance, sale of pawn shop items in the branches and online.
Retail of pre-owned goods	Sale of pre-owned goods in the branches and online purchased from customers.
Consumer loan segment	Handling consumer loans to customers, debt collection activities and debt sales to external debt collection companies.
Other operations segment	Providing loans for real estate development, general administrative services to the companies of the Group, transactions with related parties, dividends payable. Loans for real estate development are no longer issued and are fully recovered.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance, as explained in the table below, is measured on consolidation basis. Management mainly focuses on net sales, interest income and similar income and profit before taxes of the segment. For the costs, for which direct allocation to a particular segment is not attributable, the judgement of the management is used to allocate general costs by segments, based on the following cost allocation drivers – loan issuance, segment income, segment employee count, segment employee costs, the amount of segment assets.

Based on the nature of the services, the Group's operations can be divided as follows (statement of profit or loss is compared for the same period of the previous year, balance sheet positions are compared to the data as at 31.12.2023):

EUR	Consumer loans For 6 months period ended 30 June		Pawn loans For 6 months period ended 30 June		Retail of pre-owned goods For 6 months period ended 30 June		Other For 6 months period ended 30 June		Total For 6 months period ended 30 June
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Assets	101 702 921	90 623 040	10 691 444	9 802 525	4 980 048	4 632 912	6 633	2 597	117 381 046	105 061 074
Liabilities of the segment	80 903 115	71 448 313	9 293 645	8 518 974	3 807 863	3 770 088	404 175	1 586	94 408 798	83 738 961
Net sales Interest	-	-	-	-	4 287 230	3 912 554	-	-	4 287 230	3 912 554
income and similar income Net	20 836 373	15 962 767	3 974 167	3 424 612	-	-	-	2 618	24 810 540	19 389 997
performance of the segment	7 814 538	5 995 690	1 356 140	1 104 081	373 103	531 097	41 746	10 081	9 585 527	7 640 949
Financial (expenses)	(4 594 098)	(3 404 246)	(437 768)	(209 706)	(190 566)	(230 331)	-	-	(5 222 432)	(3 844 283)
Profit/(loss) before taxes	3 220 440	2 591 444	918 372	894 375	182 537	300 766	41 746	10 081	4 363 095	3 796 666
Corporate income tax	(665 789)	(282 859)	(189 863)	(97 628)	(37 738)	(32 831)	(8 631)	(1 110)	(902 021)	(414 428)

(15) Guarantees issued, pledges

The Group has registered commercial pledges by pledging its assets and claim rights for a maximum amount of EUR 34.8 million as collateral registered to SIA Mintos Finance No.20 and AS Mintos Marketplace to provide collateral for loans placed on the Mintos P2P platform.

On 25 May 2023, the Company registered a 2nd rank commercial pledge by pledging its assets for a maximum amount of EUR 1.4 million as collateral registered to AS Signet Bank.

On 25 September 2023, the Company registered a 2nd rank commercial pledge by pledging its assets for a maximum amount of EUR 1.883 million as collateral registered to AS Signet Bank.

On 25 September 2023, the Company registered a commercial pledge by pledging its assets for a maximum amount of EUR 15 million as collateral registered to MULTITUDE BANK P.L.C.

On 14 December 2023, on 20 February, 14 May, 26 June and 17 July 2024, the Company signed an agreement for the pledge of bank accounts and balances in the amount of EUR 999 900 as part of the collateral with MULTITUDE BANK P.L.C.

As of 30 June 2024, the amount of secured liabilities constitutes EUR 40 576 671 (As of 31 December 2023 EUR 36 704 326).

(16) Subsequent events

During the second quarter, active efforts were made to obtain a licence for the provision of consumer loan services, which resulted in the Company's subsidiary DelfinGroup LT UAB being included in the Lithuanian public list of consumer lending service providers at the beginning of July 2024.

On 25 July shareholders approved the Company's intention to organise a new bond issue in the Baltic States. The Management Board of the Company therefore authorised to sign the prospectus for the public offer of the bond issue and to take all necessary steps to commence the coordination and approval of the public offer with the Bank of Latvia, as well as the listing and trading of the bonds on Nasdaq Riga, the regulated corporate bond market in the Baltics. The Company plans to issue a total of 15 million euros in bonds in all three Baltic States, attracting retail and institutional investors. The funds raised will be used to refinance existing bonds and liabilities.

Didzis Ādmīdiņš Chairman of the Board

Aldis Umblejs Board Member Nauris Bloks Board Member