Čakovečki mlinovi d.d.

Quarterly Report • Apr 30, 2025

ČAKOVEČKI MLINOVI INC.

QUARTERLY CONSOLIDATED FINANCIAL REPORT FOR Q1 2025

	CONSOLIDATED INTERIM MANAGEMENT REPORT FOR THE PERIOD 1-3 2025	3
1.	BUSINESS RESULTS IN Q1 20254
	ABOUT THE GROUP ČAKOVEČKI MLINOVI4
	BUSINESS SEGMENTS AND OPERATIONAL BUSINESS	4
	KEY FINANCIAL INDICATORS OF THE GROUP 6
	QUARTERLY PERFORMANCE OVERVIEW OF THE GROUP8
	SALES REVENUE	9
	OPERATING COSTS	10
	EBITDA	10
	NET PROFIT	11
	NET DEBT	11
	CASH FLOWS	12
	VALUATION OF THE ČAKOVECKI MLINOVI GROUP	12
2.	EXPECTED BUSINESS DEVELOPMENT IN 2025	13
	CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1-3 2025	15

ČAKOVEČKI MLINOVI INC.

CONSOLIDATED INTERIM MANAGEMENT REPORT FOR THE PERIOD 1-3 2025

CONSOLIDATED INTERIM MANAGEMENT REPORT FOR Q1 2025

3

1. BUSINESS RESULTS IN Q1 2025

ABOUT THE GROUP ČAKOVEČKI MLINOVI

Čakovečki mlinovi Inc. (hereinafter: "Čakovečki mlinovi" or "Company"), founded in 1893 in Čakovec, is one of the oldest Croatian food and retail companies. The Company operates a vertically integrated business model that includes the production of high-quality mill, bakery and oil products on the one hand and the retail sale of mixed goods on the other. Although food production is the Company's tradition and heritage, the Company has grown into a business system through a series of successful acquisitions and integrations of retail chains, which today generates the majority of its revenue from retail activities.

Čakovečki mlinovi Inc. operates six subsidiaries: Trgovina Krk Inc. Malinska, Trgocentar Inc. Virovitica, Radnik Opatija Inc. Lovran, Zagrebačke pekarne Klara Inc., Zagreb, Prehrana trgovina Inc., Zagreb and NewMip Ltd. (hereinafter together: "Čakovečki mlinovi Group" or "Group") and one associated company: Narodni trgovačka lanac Ltd. Soblinec . Čakovečki mlinovi Inc., in addition to the unconsolidated reports of the Company, also prepares the consolidated reports of the Group separately.

In the first quarter of 2025, the Čakovečki mlinovi Group generated EUR 73.5 million in consolidated total revenue based on consolidated total assets of EUR 193.1 million and employed an average of 4,583 employees based on working hours. According to the Accounting Act, the Čakovečki mlinovi Group belongs to a large group of entrepreneurs.

The shares of Čakovečki mlinovi Inc. are listed on the Official Market of the Zagreb Stock Exchange under the symbol CKML. As of March 31, 2025, the Company had 16,020,000 issued and 10,290,000 listed shares with a market capitalization of EUR 105 million.

On January 30, 2025, the company Čakovečki mlinovi Inc. paid a dividend of EUR 5,042,100 (EUR 0.49 per share).

BUSINESS SEGMENTS AND OPERATIONAL BUSINESS

The Čakovečki mlinovi Group is organized into two strategic business segments:

• Trade, which includes retail and wholesale of food and non-food products;
• Food, which includes the production of mill and bakery products and oil.

Čakovečki mlinovi Inc. manages the segments from a strategic level and acts as the corporate center of the Group. The Trade business segment is operationally managed by Trgovina Krk Inc. The Food business segment is operationally managed by Čakovečki mlinovi Inc.

The business segments of the Group and their key operational indicators are presented below.

Trade

KEY OPERATIONAL INDICATORS	31.3.2025.	31.3.2024.
Number of retail stores	859	425
Retail store area (in m2 net)	86,933	54,875
Average store area (in m2 net)	101	129
Area of distribution warehouses (in m2 gross)	11,343	11,343
Average number of employees	4,271	1,783

Trade is the largest segment of the Čakovečki mlinovi Group, which generated 81% of the Group's sales revenue in the first quarter of 2025.

The Trade segment is organized into two business areas:

• retail trade in predominantly food and, to a lesser extent, non-food assortment;
• Wholesale trade in food, non-food and construction products.

Retail accounts for 95% of the sales revenue of the Trade segment.

As of 31 March 2025, Trgovina operated 859 retail stores located in northwestern and eastern Croatia, in Kvarner and on the island of Krk. The total net sales area was 86,933 m ² . The main factors of the offer of the Retail segment are the proximity of stores and local assortment, which is why the Group's retail stores are mostly located in smaller settlements or residential areas and have an average net sales area of up to 101 m ². This store format in Croatia is defined as a market or supermarket, and is better known internationally as the proximity format due to its characteristic proximity to customers.

Trgovina Krk Inc. holds a 25% ownership stake in the company Narodni trgova lanac Ltd. (hereinafter: "NTL"), the largest purchasing association for food products in Croatia, through which it realizes approximately 75% of the procurement of goods. In aInc.ition to providing commercial services to its members, developing the NTL brand and purchasing and distributing fruit and vegetables, NTL operates its own retail network of 346 stores and 9 wholesale logistics and distribution centers. In Q1 2025, NTL generated EUR 0.2 million in net profit (Q1 2024: EUR 0.5 million). Trgovina Krk Inc. also holds a 10% ownership stake in the company Grandal grupa Ltd., the largest purchasing association for construction materials in Croatia.

Food

KEY OPERATIONAL INDICATORS	31.3.2025.	31.3.2024.
Cereal processing (in tons)	24,580	14,190
Production of bakery products (in tons)	8,672	1,844
Oil production (in tons)	2	1
Average number of employees	739	273

The Food segment covers food production and is organized into three business areas:

• milling production of mostly flour and other mill products, and to a lesser extent porridge and cattle meal;
• bakery production of mainly bread, pastries and cakes and to a lesser extent dough and;
• Oil production own production of pumpkin seed oil and service production of olive oil.

As of March 31, 2025, the Food segment operated three milling plants (Čakovec, Donji Kraljevec and Sisak) with a total production capacity of 105,000 tons per year, five bakery plants (Čakovec, Oroslavje, Lovran, Malinska, Zagreb) with a total production capacity of 37,533 tons per year, and one oil mill (Punat).

KEY FINANCIAL INDICATORS OF THE GROUP

PROFIT AND LOSS ACCOUNT (in millions of euros)	1-3. 2025.	1-3. 2024.	1.-3. 2025./ 1.-3. 2024.
Sales revenue	71.9	41.6	72.8%
Operating expenses, net 1	70.2	41.6	68.6%
EBITDA 2	1.7	0.0	-
Normalized EBITDA 3	1.7	0.1	-
Amortization	3.0	1.8	68.5%
EBIT 4	(1.3)	(1.8)	(28.0%)
Net financial result 5	0.3	0.3	4.6%
Net profit (loss)	(1.3)	(1.5)	(18.4%)
Profit margins 6
EBITDA margin	2.4%	-0.1%	2.4 bp
Normalized EBITDA margin	2.3%	0.1%	2.2 bp
EBIT margin	-1.8%	-4.4%	2.5 bp
Net profit margin	-1.7%	-3.7%	2.0 bp
BALANCE SHEET			31.3.2025./
(in millions of euros)	31.3.2025.	31.12.2024.	31.12.202 4.
7 Net debt (cash)	(7.7)	(20.6)	(62.5%)
Capital and reserves	119.5	87.6	36.4%
Net working capital 8	29.8	23.7	25.5%
CASH FLOWS			1.-3. 2025./
(in millions of euros)	1-3. 2025.	1-3. 2024.	1.-3. 2024.
Net cash flows from operating activities.	8.6	3.9	122.8%
Capital expenditure (CapEx) 9	3.0	2.0	50.9%
Cash expenditures for dividend payments	5.0	0.0	-

1 Operating costs, net include business expenses less depreciation, other business income and income based on the use of own products, goods and services; a detailed calculation is presented under Operating costs in this part of the report.

2 EBITDA (eng. earnings before interest, taxes, depreciation and amortization) represents operating profit before amortization; calculated as business income - business expenses + depreciation.

3 Normalization implies adjustment for one-off items; detailed calculation is presented under EBITDA Normalization in this section of the report.

4 EBIT (eng. earnings before interest and taxes) represents operating profit; calculated as business income - business expenses.

5 Net financial result is calculated as financial income + share in the profit of the associated company (NTL) – financial expenses.

6 Profit margins are calculated on the basis of sales revenue.

7 Net debt (money) includes long-term and short-term financial liabilities minus cash and cash equivalents and deposits with banks. Deposits with banks are included in net debt regardless of the maturity date because they are available on call.

8 Net working capital includes inventories plus short-term trade receivables and less short-term trade payables and advances.

9 CapEx (capital expenditures) represents financial expenditures for the purchase of long-term tangible and intangible assets.

Note: Amounts in this section, as well as in the rest of the report, are rounded to one decimal place.

SUMMARY OF GROUP RESULTS

In the first quarter of 2025, the Čakovečki mlinovi Group generated EUR 71.9 million in sales revenue, EUR 1.7 million in normalized EBITDA and EUR (1.3) million in loss.

The Group's operations were marked by a growth in sales revenue of 72.8% or EUR 30.3 million compared to the same period of the previous year. Sales revenue of Retail, the Group's largest business area, grew by 73.1% or EUR 23.2 million, or by 74.6% or EUR 23.2 million on a comparable (hereinafter: "LFL") basis. The aforementioned revenue growth is primarily a result of the Group's growth in the results of the new members Zagrebačka Pekarna Klara Inc., Prehrana Trgovina Inc. and NewMIP Ltd.

The Trade business segment, as the largest segment of the Group, achieved EUR 58.3 million or 81.1% of the Group's sales revenue and EUR 0.2 million of normalized EBITDA.

The Group's net operating expenses increased by 68.6% or EUR 28.5 million, mostly as a result of the inclusion of new affiliated companies.

In the first quarter of 2025, the Group's normalized EBITDA increased by EUR 1.6 million, and the net loss amounted to EUR 1.3 million, which was reduced by EUR 0.2 million compared to 1Q 2024. The Group achieved an increase in the normalized EBITDA margin to 2.3% (Q1 2024: 0.1%), the net profit margin was (1.7%) (Q1 2024: (3.7%)).

QUARTERLY PERFORMANCE OVERVIEW OF THE GROUP

Group EBITDA

Group sales revenue

Note: Data for the fourth quarter were calculated based on audited (if available) annual financial statements and unaudited quarterly financial statements for the first, second and third quarters.

Given the impact of the tourist season on the Group's operations in the Trade segment, the first quarter is typically financially weaker than the remaining quarters of the year.

SALES REVENUE

SALES REVENUE BY SEGMENT
(in millions of euros)	1-3. 2025.	% of sales revenue	1-3. 2024.	% of sales revenue	1.-3. 2025./ 1.-3. 2024.
Trade	58.3	81.1%	35.7	85.8%	63.4%
Food	13.6	18.9%	5.9	14.2%	129.2%
Consolidated sales revenue	71.9	100.0%	41.6	100.0%	72.8%

Note: Data are presented on a consolidated basis.

LFL 1 RETAIL GROWTH
			1.-3. 2025./
(in millions of euros)	1-3. 2025.	1-3. 2024.	1-3. 2024.
Revenue from the sale of goods – Trade	57.6	35.5	62.1%
Revenue from sales of goods - Retail	54.9	31.7	73.1%
Revenues from the sale of goods - Retail - LFL	29.7	31.1	(4.4%)

1 Revenues on a comparative basis (eng. like-for-like, LFL) refer to stores that operated throughout both comparative periods. Note: Data are presented on a consolidated basis.

In the first quarter of 2025, the Group generated sales revenue of EUR 71.9 million, which is 72.8% or EUR 30.3 million more than in the same period of the previous year as a result of revenue growth from new members of the Group, while sales revenue from the Food segment increased by 129.2% also as a result of the merger of new members.

Sales revenue in the Trade segment amounted to EUR 57.6 million or 81.1% of the Group's sales revenue and increased by 63.4% or EUR 22.6 million compared to the same period last year. This growth is a result of the positive effects of the merger of new members. Sales revenue in Retail increased by 73.1% or EUR 23.2 million, or decreased by 4.4% or EUR 1.4 million on an LFL basis.

Sales revenue of the Food segment amounted to EUR 13.6 million or 18.9% of sales revenue and is 129.2% or EUR 7.7 million higher than in the same period last year.

OPERATING COSTS

		% of			1.-3. 2025./
(in millions of euros)	1-3. 2025.	sales revenue	1-3. 2024.	% of sales revenue	1-3. 2024.
Raw and material costs and change in
inventory value	2.7	3.8%	5.8	13.9%	(53.3%)
Cost of goods sold, net 1	45.3	63.1%	24.7	59.5%	83.3%
Other external costs	3.7	5.1%	1.6	3.8%	128.5%
Staff costs 2	17.6	24.5%	8.8	21.2%	100.1%
Other costs	0.9	1.2%	0.5	1.3%	69.3%
Other operating expenses (income) 3	0.4	0.49%	0.2	0.4%	118.6%
Operating expenses, net	70.6	97.6%	41.6	100.1%	68.6%

1 Cost of goods sold less income from subsequently approved rebates and marketing services.

2 Personnel costs include net salaries, taxes and contributions from salaries, contributions to salaries and paid non-taxable benefits to employees.

3 Other business expenses less: paid non-taxable receipts of employees, other business income without income from subsequently approved rebates and marketing services and for income based on the use of own products, goods and services.

In the first quarter of 2025, the Group recorded an increase in net operating expenses by 68.6% or EUR 29.0 million compared to the same period of the previous year. The increase in expenses is a result of the merger of new members into the Group.

Cost of goods sold increased by 83.3% or EUR 20.6 million as a result of the merger. Personnel costs together with non-taxable benefits paid amounted to EUR 17.6 million and increased by 100.1% or EUR 8.8 million. Personnel costs increased under the influence of the increase in the minimum wage and the spillover of this impact to the remaining salaries. As of 31 March 2025, the Group employed 4,933 employees (Q1 2024: 2,282), or in the first quarter of 2025 on average 4,583 employees based on hours worked (Q1 2024: 2,056).

EBITDA

EBITDA BY SEGMENTS	1-3. 2025.			1-3. 2024.
(in millions of euros)	GROUP	TRADE	FOOD	GROUP	TRADE	FOOD
Cons. sales revenue	71.9	58.3	13.6	41.6	35.7	5.9
EBITDA	1.7	0.2	1.5	-0.1	-0.5	0.4
EBITDA margin	2.4%	0.4%	10.7%	-0.1%	-1.3%	7.1%
Normalized EBITDA 1	1.7	0.2	1.5	0.1	-0.4	0.5
Normalized EBITDA margin	2.3%	0.3%	10.8%	0.1%	-1.2%	8.4%

1 Normalization implies adjustment for material one-off items; detailed calculation is presented under EBITDA Normalization in this section of the report.

Note: Data are presented on a consolidated basis.

In the first quarter of 2025, the Group achieved normalized EBITDA of EUR 1.7 million, which is EUR 1.6 million more than in the same period of the previous year. Reported EBITDA amounted to EUR 1.7 million (Q1 2024: EUR 0.1 million).

Normalized EBITDA of the Trade segment amounted to EUR 0.2 million, an increase of EUR 0.6 million compared to the same period of the previous year. Normalized EBITDA margin of the Trade segment amounted to 0.3% (Q1 2024: -1,2%).

EBITDA normalization

EBITDA NORMALIZATION	1-3. 2025.			1-3. 2024.
(in millions of euros)	GROUP	TRADE	FOOD	GROUP	TRADE	FOOD
EBITDA	1.7	0.2	1.5	-0.1	-0.5	0.4
Intellectual services costs	0.0	0.0	0.0	0.1	0.1	0.0
Other one-time expenses (income),
net	0.0	0.0	0.0	0.1	0.1	0.1
Normalized EBITDA	1.7	0.2	1.5	0.1	-0.4	0.5

Note: The term 'net' implies that an individual item of income is netted by a comparable item of expenditure.

In aInc.ition to reporting on alternative (non-IFRS) business performance measures such as EBITDA, the Group discloses the impact of non-recurring items in order to achieve a higher level of transparency of its normal business activities. Non-recurring items are those items that do not appear regularly and have a significant impact on the result. In the first quarter of 2025, there were no one-time normalization items in the Group.

NET PROFIT

In the first quarter of 2025, the Group recorded a net loss of EUR 1.3 million, which is the same as in 1Q 2024.

NET DEBT

(in millions of euros)	31.3.2025.	31.12.2024.	31.3.2025./ 31.12.2024.
Long-term liabilities for loans received	2.6	0.0	-
Long-term lease liabilities	13.1	2.7	-
Short-term liabilities from loans received	5.7	4.2	37.0%
Short-term lease liabilities	2.8	1.4	96.9%
Loans, deposits, etc. given	-6.2	0.0	-
Money in the bank and cash register	-25.8	-28.8	-10.7%
Net debt (cash)	-7.8	-20.5	-62.5%

As of 31 March 2025, the Group recorded a net cash item of EUR 7.8 million (31.12.2024: EUR 20.5 million), of which EUR 8.3 million (31.12.2024: EUR 4.2 million) relates to loan and credit liabilities, EUR 13.1 million (31.12.2024: EUR 2.7 million) to lease liabilities, and EUR 25.8 million (31.12.2024: EUR 28.8 million) to cash and cash equivalents and deposits.

CASH FLOWS

In the first quarter of 2025, the Čakovečki mlinovi Group generated EUR 8.6 million in net cash flows from operating activities, which is higher than the EBITDA achieved, primarily as a result of an increase in net working capital by EUR 6.1 million.

NET WORKING CAPITAL
(in millions of euros)	31.3.2025.	31.12.2024.	31.3.2025./ 31.12.2024.
Inventories	46.4	25.8	80.1%
Short-term receivables from customers	15.6	8.1	93.5%
Short-term liabilities to suppliers	(32.3)	(10.2)	218.0%
Net working capital	29.7	23.7	25.5%

The Group's net working capital increased by 25.5% or EUR 6.0 million, with inventories increasing by 80.1% or EUR 20.6 million. Trade receivables increased by 93.5% or EUR 7.5 million due to revenue growth, while short-term trade payables increased by 218.0% or EUR 22.1 million.

The Group's capital expenditures in the first quarter of 2025 amounted to EUR 3.0 million and are higher than in the same period of the previous year (Q1 2024: EUR 2.0 million).

VALUATION OF THE ČAKOVECKI MLINOVI GROUP

KEY VALUATION INDICATORS OF CKML SHARES
(in millions of euros)	31.3.2025.	31.12.2024.	31.3.2025./ 31.12.2024.
Price per share (PPS, in euros) 1	10.2	10.6	(3.8%)
Market capitalization 2	105.0	109.1	(3.8%)
EV 3	101.7	84.7	20.1%

1 Price per share (PPS) is represented by the reference price on the Zagreb Stock Exchange, i.e. the average price weighted by the volume of traded shares as a better representative of the price given the low liquidity of the CKML share.

2 Market capitalization represents the market value of share capital on the stock exchange; calculated as the product of the number of shares (10,290,000) and the price per share.

3 EV (enterprise value) represents the value of business; calculated as market capitalization + net debt (money) + minority interest.

2. EXPECTED BUSINESS DEVELOPMENT IN 2025

The forecast for 2025 is based on mild economic growth due to growth in consumption and investment, with slowing inflation and a challenging combination of opportunities and risks for entrepreneurs in an environment of deteriorating global economic expectations due to growing protectionism and geopolitical instability. The management of the parent company of the Group will continue to actively work on further business development. In this part, during 2025, the Management Board of the parent company of the Group will carry out all the necessary activities with the aim of consolidating the operations of the MIP Group and the Čakovečki mlinovi Group with the aim of increasing competitiveness and expanding operations on the relevant market, optimizing costs and increasing the client base with the planned modernization of operations.

The Group's operations in 2025 are subject to macroeconomic and economic trends in the world and Europe, and the Group will continue with a focused approach to finding opportunities in a dynamic environment.

At the date of issuance of this report, the Group has sufficient cash position to meet its liabilities as they fall due and therefore prepares its financial statements on a going concern basis.

General economic environment

According to CNB data, core inflation in Croatia is expected to slow from 4.0% to 3.7% in 2025. The slowdown in inflation in the first 8 months of 2024 is reflected in the weakening of current inflationary pressures, primarily core inflation and food price inflation. The risks of higher inflation are mainly related to geopolitical tensions that could result in higher allocations for defense and thus higher prices of energy and other raw materials, then trade barriers and stronger than expected wage growth

Real GDP in Croatia for 2024 was 3.8%, and the CNB expects further growth but at a slightly lower level of 3.2% in 2025.

For 2025, global and regional GDP is expected to continue to grow, although perhaps at a slower pace than during the post-pandemic recovery. Depending on the region, economies could experience stabilization, while markets in developed countries should record moderate growth. In Croatia and Europe, the return to economic growth will also depend on favorable circumstances in the international market, interest rate policy and stability of political and trade relations. Thus, in Croatia we have a slowdown in growth to 3.2% (in 2024 3.8%).

Further GDP growth is expected through a greater contribution from the export of goods and services, assuming a recovery in external demand, but also through a continued decline in interest rates and more favorable financing costs. The slowdown in growth results from the slower growth of investments and the weakening of consumer confidence, i.e. the weakening of personal consumption in the first two months.

The impact of the war in Ukraine and Middle East

The extended duration of the wars in Ukraine and the Middle East represent negative risks for global trends and the economic growth of the Eurozone, which ultimately affects the Croatian economy.

As of the date of this report, the Group has no relationship with, nor exposure to, companies from Russia, Belarus or Ukraine. The Group maintains all business operations in Croatia, to a lesser extent the Group's foreign revenues relate to EU countries. Therefore, the parent company Čakovečki mlinovi Inc. does not have any shareholders from Russia or Belarus nor does it directly or indirectly hold any ownership interests in entities in these countries.

There is no direct exposure to the mentioned countries. The management continuously considers all risks associated with external geopolitical movements and assesses that these risks do not threaten the stability of the Group's operations.

State price control measures

In the retail segment, during 2025, new government measures aimed at controlling the prices of certain products will potentially have a negative impact on the volume and profitability of the Group's business. As of January 2025, limited prices have been defined for 70 products in retail. Management is influencing the negative effects through the pricing policy of the rest of the assortment and through the adjustment of business operations to Sundays.

State price control measures have limited the prices of flour type T-550 smooth and T-400 sharp, wheat bread, instant polenta, Kaiser rolls, and barley porridge from January 31, 2025, which prevents them from having an active pricing policy and indexing costs that affect the price of the final product.

ČAKOVEČKI MLINOVI D.D.

CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1-3 2025

CONSOLIDATED FINANCIAL STATEMENTS FOR Q1 2025

15

CONSOLIDATED STATEMENT OF COMPREHENSIVE PROFIT FOR 1.-3. IN THE YEAR 2025

	1-3. 2025.	1-3. 2024.
	in '000 EUR	in '000 EUR
Sales revenue	71,862	41,592
Other operating income	1,226	1,010
Business income	73,088	42,602
Change in the value of work in progress and finished goods	5,988	66
inventories
Raw material costs	(8,690)	(5,857)
Cost of goods sold	(46,362)	(25,668)
Other external costs	(3,655)	(1,600)
Personnel costs	(15,901)	(7,824)
Amortization	(2,996)	(1,778)
Other costs	(2,619)	(1,512)
Value adjustments	(0)	-
Provisinos	395	-
Other business expenses	(552)	(240)
Business expenses	(74,391)	(44,414)
Operating profit	(1,304)	(1,811)
Financial income	419	211
Financial expenses	(113)	(22)
Net financial result	306	189
Share in the profit of an associated company	38	140
Profit before tax	(960)	(1,482)
Income tax	(295)	(56)
Net profit	(1,255)	(1,538)
Attributable to:
To the shareholders of the Company	(1,444)	(1,534)
To owners of non-controlling interests	189	(4)
Earnings per share for profit attributable to shareholders of
the Company during the year (in euros)
- basic	(0.14)	(0.15)
- diluted	(0.14)	(0.15)

CONSOLIDATED STATEMENT OF COMPREHENSIVE PROFIT FOR 1.-3. IN THE YEAR 2025

	1-3. 2025.	1-3. 2024.
	in '000 EUR	in '000 EUR
NET PROFIT FOR 2024	(1,255)	(1,538)
Other comprehensive gains:
Items that will not be reclassified to the income statement
Fair valuation of shares in associated companies
Fair valuation of shares
Total comprehensive income for the year, net of tax	-	-
Total comprehensive income/(loss) for the year	(1,255)	(1,538)
Attributable to:
To the shareholders of the Company	(1,444)	(1,534)
To owners of non-controlling interests	189	(4)

ČAKOVECKI MLINOVI INC.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 31.03.2025

	31.3.2025.	31.12.2024.
	in '000 EUR	in '000 EUR
Assets
Non - current assets
Intangible assets	2,875	72
Tangible assets	78,632	37,786
Real estate investments	769	481
Investments in associates	9,116	9,078
Financial assets	1,852	1,799
Deferred tax assets	321	321
	93,565	49,537
Current assets
Inventories	46,434	25,786
Receivables	21,081	8,994
Financial assets	6,224	81
Money in the bank and cash register	25,753	28,833
	99,492	63,694
TOTAL ASSETS	193,057	113,231
Capital and reserves
Share capital	21,262	13,657
Capital reserves	54,909	-
Reserves from profit	3,132	3,132
Fair value reserves	2,990	2,990
Retained earnings	32,714	71,615
	115,007	91,394
To owners of non-controlling interests	4,481	(3,823)
Total capital	119,488	87,571
Liabilities
Non - current liabilities
Provisions	2,385	1,421
Liabilities for loans, deposits, leases, etc.	13,062	2,699
Liabilities to banks and other financial institutions	2,620	-
Deferred tax liability	656	656
	18,723	4,776
Current liabilities
Liabilities to group enterprises	6,998	5,610
Liabilities for loans, deposits and similar	1,546	-
Liabilities for advances	38	64
Trade payables	32,321	10,164
Employee benefits payables	5.123	2,078
Taxes, contributions and other duties payable	5,232	2,409
Liabilities from equity share in profit	2,487	29
Other short-term liabilities	956	530
Provisions	145	-
	54,846	20,884
TOTAL EQUTIY AND LIABILITIES	193,057	113,231

ČAKOVECKI MLINOVI INC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD 1-3 2025

	Share capital	Capital reserves	Legal reserves	Other reserves	Fair value reserves	Retained earnings	Total	Non-controlling interests	Total
5	in '000	in '000	in '000	in '000	in '000	in '000	in '000	in '000 EUR	in '000
	EUR	EUR	EUR	EUR	EUR	EUR	EUR		EUR
Status as of 1.1.2024.	13,657	0	683	2,563	2,869	65,766	85,538	-3.865	81,673
Transfer to retained earnings				(114)		114
Profit/(loss) for the year	-	-	-	-	-	6,764	6,764	42	6,806
Other comprehensive income	-	-	-	-	121	-	121	-	121
Total comprehensive income/(loss)	-	-	-	(114)	121	6,878	6,885	42	6,927
Other non-ownership changes in capital	-	-	-	-	-	-	-	-	-
Dividend	-	-	-	-	-	(1,029)	(1,029)	-	(1,029)
Balance as of 31.12.2024.	13,657	0	683	2,449	2,990	71,615	91,394	-3.823	87,571
Status as of 1.1.2025.	13,657	0	683	2,449	2,990	71,615	91,394	-3.823	87,571
Profit/(loss) for the year	-	-	-	-	-	(1,443)	(1,443)	189	(1,255)
Other comprehensive income	-	-	-	-	-	-	-	-	-
Total comprehensive income/(loss)	-	-	-	-	-	(1,443)	(1,443)	189	(1,255)
Payments from members/shareholders	7,605	54,909	-	-	-	-	62,514	-	62,514
Other non-ownership changes in capital	-	-	-	-	-	140	140	8.115	8.255
Other distributions	-	-	-	-	-	(32,441)	(32,441)	-	(32,441)
Dividend	-	-	-	-	-	(5,042)	(5,042)	-	(5,042)
Status as of 31.03.2025.	21,262	54,909	683	2,449	2,990	32,829	115,122	4,481	119,602

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD 1-3 2025

	1-3. 2025.	1-3. 2024.
	in '000 EUR	in '000 EUR
CASH FLOW FROM BUSINESS ACTIVITIES
Profit before tax	(960)	(1,482)
Adjustments:
Amortization	2,996	1,778
Gains and losses from the sale and value adjustments of long-term	(11)	871
tangible and intangible assets
Share in the profit of an associated company	-	(140)
Interest and dividend income	(180)	(477)
Interest expenses	113	53
Reservations	1,000	-
Exchange differences (unrealized)	-	-
Other adjustments for non-cash transactions and unrealized gains	(76)	4
and losses
Increase or decrease in cash flows before changes in working capital	2,882	606
Changes in working capital	6.134	3,538
Increase or decrease in short-term liabilities	47,281	5,590
Increase or decrease in current receivables	(20,499)	(2,482)
Increase or decrease in inventory	(20,648)	430
Cash from business	9,016	4.145
Cash expenses for interest	(113)	(53)
Paid income tax	(295)	(226)
Cash receipts from the collection of previously corrected
receivables	1	-
NET CASH FLOWS FROM BUSINESS ACTIVITIES	8,609	3,865
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from the sale of fixed assets and intangible assets	1	-
Cash receipts from the sale of financial instruments	-	-
Cash receipts from interest	180	357
Cash receipts from dividends	-	120
Cash receipts based on the return of loans and savings deposits	3.179	-
Other cash receipts from investing activities	-	7
Cash expenditures for the purchase of long-term tangible and intangible assets	(3,009)	(1,994)
Cash expenditures based on loans and savings deposits for the
period	(347)	(2)
Acquisition of a subsidiary, net of cash acquired	(5.225)	-
Other cash expenditures from investment activities	-	(15)
NET CASH FLOWS FROM INVESTING ACTIVITIES	(5.222)	(1,527)
CASH FLOWS FROM FINANCIAL ACTIVITIES
Cash expenses for financial lease	(1,425)	(186)
Cash expenditures for dividend payments	(5,042)	-
NET CASH FLOWS FROM FINANCIAL ACTIVITIES	(6,467)	(186)
TOTAL NET CASH FLOW	(3,080)	2.152
Cash and cash equivalents at the beginning of the period	28,833	23,754
Cash and cash equivalents at the end of the period	25,753	25,906

NOTE 1 – GENERAL INFORMATION

The company Čakovečki mlinovi Inc. Čakovec, Mlinska ulica 1 (hereinafter referred to as: the Company) has harmonized its general acts with the Companies Act and, on the basis thereof, the Commercial Court in Varaždin, by Decision Tt-95/482-2 on 4 December 1995, entered the Company into the court register. Country of incorporation of the company: Croatia, Company registration number: 03108414 Company OIB: 20262622069.

The Company's share capital on the date of this report amounts to EUR 21,262,193.93, fully paid up and divided into 16,020,000 ordinary dematerialized registered shares, without nominal value. 10,290,000 shares of Čakovečki mlinovi Inc. are listed on the Official Market of the Zagreb Stock Exchange under the symbol CKML-RA, and 5,730,000 shares with the symbol CKML-RB, which were issued in accordance with the decision of the General Assembly of the Company dated 15 January 2025 on increasing the share capital by rights issues by issuing ordinary shares with partial exclusion of pre-emptive rights of existing shareholders, will also, in accordance with the decision of the General Assembly of the Company dated 15 January 2025, be listed on the Official Market of the Zagreb Stock Exchange in the future.

From the point of view of the provisions of Article 475, paragraph 3 of the Companies Act, the company MLIN I PEKARE Ltd., Sisak, is the direct controlling company in relation to Čakovečke mlinove Inc., and indirectly in relation to the companies of the Čakovečki mlinove Group, i.e. its subsidiaries, namely the companies TRGOVINA KRK Inc., Malinska, RADNIK OPATIJA Inc., Lovran, TRGOCENTAR Inc., Virovitica, ZAGREBAČKE PEKARNE KLARA Inc., Zagreb, PREHRANA TRGOVINA Inc., Zagreb and NewMip Ltd., Sisak (hereinafter together: the "Čakovečki mlinove Group" or the "Group") and one associated company: Narodni trgovačka lanac Ltd. Soblinec. Čakovečki mlinove Inc. prepares the consolidated reports of the Group separately, in aInc.ition to the unconsolidated reports of the Company. The annual consolidated financial statements of the Čakovečki mlinovi Group are available on the Company's website : www.cak-mlinovi.hr .

The Company's business accounts are opened with the following banks:

• Privredna banka Zagreb Inc. IBAN: HR2623400091116005907,
• Erste&Steiermärkische Bank Inc. IBAN: HR4924020061100031817,
• Zagrebačka banka Inc. IBAN: HR9223600001102561339.

GROUP ACTIVITIES

The Group generates the majority of its revenue from retail trade, wholesale trade, and the production and sale of food products (flour, bread, pastries, biscuits, waffles, pasta, porridge, edible oils).

The Company's business accounts are opened with the following banks:

• Privredna banka Zagreb Inc. IBAN: HR2623400091116005907,
• Erste&Steiermärkische Bank Inc. IBAN: HR4924020061100031817,
• Zagrebačka banka Inc. IBAN: HR9223600001102561339.

NOTE 1 – GENERAL INFORMATION (CONTINUED)

COMPANY BODIES

The composition of the Company's bodies as of March 31, 2025 is as follows.

Administration

• Mario Sedlacek, President of the Management Board
• Krešimir Kvaternik, member of the Management Board
• Marijan Sršen, member of the Management Board

Supervisory Board

• Damir Metelko, President of the Supervisory Board, independent member
• Igor Komorski, independent member of the Supervisory Board
• Vanja Kutnjak, member of the Supervisory Board, employee representative
• Josip Plodinec, member of the Supervisory Board
• Franjo Plodinec, Deputy Chairman of the Supervisory Board
• Prof. Dr. Sc. Mislav Ante Omazić, independent member of the Supervisory Board

Audit Committee

• Franjo Plodinec. Chairman of the Audit Committee
• Igor Komorski, Deputy Chairman of the Audit Committee (independent member)
• Damir Metelko, , independent member
• Vanja Kutnjak, member of the Audit Committee
• Josip Plodinec, member of the Audit Committee
• Prof. Mislav Ante Omazić, independent member of the Audit Committee

NOTE 1 – GENERAL INFORMATION (CONTINUED)

SUBSIDIARIES ND ASSOCIATED COMPANIES

Name	Headquarters	Principal activity	Accounting method	Direct ownership /voting rights 31.3.2025.	Direct ownership /voting rights 31.12.2024.
Radnik Opatija Inc.	Lovran, Croatia	Retail trade; Bakery	Consolidated	100%	100%
Krk Trade Inc.	Malinska, Croatia	Retail	Consolidated	100%	100%
NewMip Ltd.	Sisak, Croatia	Production, Wholesale and retail trade	Consolidated	100%	0%
Prehrana Trgovina Inc.	Zagreb, Croatia	Retail	Consolidated	92.90%	0%
Zagrebačke Pekarne Klara Inc.	Zagreb, Croatia	Retail trade; Bakery	Consolidated	65.12%	0%
Trgocentar Inc.	Virovitica, Croatia	Real estate rental	Consolidated	49.55% / 52.03 %	49.55% / 52.03 %
Narodni trgovački lanac Ltd.	Soblinec, Croatia	Wholesale and retail trade	Equity method	25%	25%

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of these financial statements are International Financial Reporting Standards and Accounting Policies of Čakovečki mlinovi Inc., and have been consistently applied to all periods presented, unless otherwise stated.

The accounting policies that were applied in the preparation of the audited consolidated annual financial statements for 2024 have not been changed and have been applied in the preparation of these consolidated financial statements. The stated accounting policies can be found in the audited consolidated annual financial statements for 2024, published on the website of the Zagreb Stock Exchange ( www.zse.hr ).

ČAKOVECKI MLINOVI INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1-3 2025

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