Delfin Group — Interim / Quarterly Report 2025

May 7, 2025

Financial report Unaudited results for 3 months

Ending 31 March 2025

Business results

Key characteristics of Q1 2025

Financial results

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

Key results

• Loan issuance in Q1 2025 continued to increase, reaching the record?high level of EUR 30 million, facilitated by a strong online and offline market presence in Latvia and Lithuania.

• Alongside loan issuance, the net loan portfolio has increased by 7% since the beginning of 2025, reaching EUR 121 million.

• Quarterly revenues reached all?time high, reaching EUR 17.5 million, a 23% growth compared to Q1 2025.

• Profit before tax in Q1 reached EUR 2.3 million, an 11% increase.

Total loans Issued

Total revenue

Profit before tax

Net loan portfolio

Management improvements

Laima Eižvertiņa Member of the Management Board

Chief Administrative Officer Laima Eižvertiņa has become a Member of the Management Board of DelfinGroup.

Laima is actively involved in leading strategic and development projects, as well as organizing the work of the management board and supervisory board.

She has extensive experience in company management, project implementation, and operations of regulated financial institutions — both in supervisory bodies and in senior positions within the financial sector in Latvia and abroad.

Merging of Latvian and Lithuanian online stores

Before

LV and LT online stores operated as separate stores with a separate inventory.

Now

the stores are merged and Lithuanian clients can purchase items from Latvia and vice versa.

Merging of the stores creates synergy and allows to save resources on administrating two separate stores. Clients also receive broader product offering.

Stock Analysis updates

The latest analyst updates on DelfinGroup stock valuation

Signet Bank

* Potential upside from 30 April 2025 stock price of EUR 1.152

Capital markets & funding highlights

• B In total 4 DelfinGrouC bond issues are listed on the Nasdaq Baltic stock e3change2
• B 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

• DelfinGroup signed additional credit line agreement wit Multitude Bank for 12.5 million euros.
• Total available financing from Multitude Batk has reached 23.5 million euross

• The futditg will be used to fitatce further growth of the compaty atd will be used gradually.

• Increased Mintos risk score for VIZIA of 9.0 (previous 8.8). Banknote 8.7.È

• RisÊ scores on Mintos remain as one of the best scores on the platform.È
• P2P exposure in Q1 2025 increased by 5.5 million euros.

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:

• Opening of the 4th Banknote XL concept branch in Liepāja, Lielā iela 4.
• Ogre, Skolas street branch redesigned to a more spacious store
• Riga, Marupe street branch redesigning to a more spacious store
• Valmiera branch relocation, opening a new concept store

Operations in Lithuania started at the end of 2023. At the end of Q1 2025, DelfinGroup has 7 branches in Vilnius.

DelfinGroup and Children's Hospital Foundation

• B SCnce 2018, DelfCnGroup has been workCng wCth the ChCldren's HospCtal FoundatCon to help Cmplement varCous CnCtCatCves that promote modern, chCld-centred healthcare.
• B ThCs year, the company Cs makCng a sCgnCfCcant contrCbutCon to the professConal development and CnternatConal exchange of experCence of the staff and caregCvers at the ChCldren's HospCtal.
• B ThCs support wCll form the basCs of an CnCtCatCve that wCll help strengthen the qualCty of treatment and care Cn LatvCa, especCally Cn sCtuatCons where specCfCc expertCse or non-standard solutCons are needed.

Non-performing loan ratio**

**NPL ratio methodology changed from previous presentations. Current formula: loans 90+ days par due / gross consumer loan portfolio.

Consumer loans

• The consumer lending portfolio continued increasing, as did the average loan amount and term. At the end of Q1 2025, the net loan portfolio reached 111.3 million euros, a 7% increase since the beginning of the year.
• During the first full quarter in which consumer loans were offered in Lithuania, company achieved better-than-expected results
• Consumer issuance in Lithuania reached EUR 1.6 million and net loan portfolio was EUR 1.4 million.
• Slight NPL increase due to recent efforts of collecting loans more inhouse rather than selling them to loan collection companies. Ratio still remains at a solid level of 3.8% which comfortable level for healthy loan portfolio.

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

• 2 Pawn loan po3tfolio has inc3eased 8% compa3ed to Q1 2024.
• 2 Pawn loan issuance inc3eased 6% in 12M pe3iod.
• 2 The ave3age pawn loan amount has g3own ove3 the last yea3 as inflation has pushed p3ices fo3 items and jewel3y.

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*

• E SFable and consisFenF growFh has been achieved in Fhe reFail segmenF by promoFing Fhe circular economy principles in LaFvia and LiFhuania.
• E ReFail sales of pre-owned goods in Q1 2025 reached Fhe hisForically highesF quarFerly amounF, reaching EUR 4.7 million, a g1% increase Fo lasF year's respecFive period.
• E Online sFore sales gradually increasing afFer design and UX updaFes and a launch of operaFions in LiFhuania.
• E Online sFore sales increased g6% compared Fo Q1 2024.

Sales of pre-owned goods

Online store sales

Sales split by product category

Sales split by product category (Q1 2025)

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.

**excluding wholesale of precious metals (scrap) and pawn pledges *including sold pawn pledges and pledge storage commissions

Diversification

• = 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.
• = DelfinGroup products cover all age groups thanks to customised financial solutions.

Revenue by business segments 3M 2025

Income statement, EUR'000	2025 3M	2024 3M	Change %
Total revenue	17,527	14,260	+23%
Cost of sales	-1,957	-1,505	+30%
Credit loss expenses	-4,658	-3,421	+36%*
Interest expenses and similar expenses	-2,865	-2,561	+12%
Gross profit	8,048	6,773	+19%
Selling expenses	-3,118	-2,588	+20%
Administrative expenses	-2,571	-2,068	+24%
Other operating income	37	25	+49%
Other operating expenses	-132	-103	+28%
Profit before tax	2,264	2,039	+11%
Income tax expense	-495	-420	+18%
Net profit	1,769	1,619	+9%
EBITDA	5,605	5,028	+11%

Consolidated income statement

• In Q1 the company focused on introduction of consumer lending product in Lithuania thus raising brand awareness and gaining market share.
• Meanwhile Latvian business generated revenue growth of 21% in Q1 2025.
• Profit before tax for Latvian business increased 26% y-o-y.
• 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 of LGD.

Data for previous period of 2024 restated as per corrections made in the audited annual statements for 2024

Balance sheet, EUR'000	31.03.2025	31.12.2024	Change %
Fixed and intangible assets	3,241	3,228	+0%
Right-of-use assets	2,618	2,653	-1%
Net loan portfolio	120,992	113,474	+7%
Inventory and scrap	4,014	3,990	+1%
Other assets	2,034	2,014	+1%
Cash	1,740	1,644	+6%
Total assets	134,638	127,003	+6%
Equity	25,709	24,929	+3%
Share capital and reserves	4,541	4,541	+0%
Share premium	6,891	6,891	+0%
Other capital reserves	248	223	+11%
Retained earnings	14,030	13,274	+6%
Liabilities	108,928	102,074	+7%
Interest-bearing debt	99,597	94,662	+5%
Trade payables and other liabilities	6,409	4,458	+44%
Lease liabilities for right-of-use assets	2,922	2,954	-1%
Total equity and liablities	134,638	127,003	+6%

Consolidated balance sheet

Financial ratios

Data for previous periods of Q4 2024 and 2023 restated as per corrections made in the audited annual statements for 2024 and 2023. 20

***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*

Q1

²⁰²³ Q2 Q3 Q4 Q1 ²⁰²⁴ Q2 Q3 Q4 Q1 0 0

2025

10% 10%

20% 20%

30% 30%

40% 36.6% 36.2% 35.9% 36.1% 36.2% 36.2% 35.8% 34.8% 34.0% 40%

ROE***

Adjusted equity ratio**

Capital structure

DelfinGroup on MIntos

Since 2016 Active investors 80+ thousand Investors from 100+ countries In April 2025 DelfinGroup signed an additional credit line agreement with Multitude Bank for 12.5 million euros for 3.5 years. The total available Multitude Bank financing reaches 23.5 million euros.

Bond financing track record*

m €

Dividends

Unique dividend distribution proposal in Baltics

Quarterly dividends

• 5 At least 4 dividend 6ayments per yeaB
• 5 Up to 50% from previous Q profit

Dividend period	Dividend payment date	EUR/ Share	EUR Total	Payout ratio***
Q1 2025	Upon shareholders approval**	0.0194**	880 885**	49.79%**
Q4 2024	07.04.2025	0.0223	1 012 564	49.93%
Q3 2024	30.12.2024	0.0210	953 535	49.79%
Q2 2024	01.10.2024	0.0202	916 626	49.76%
Q1 2024	14.06.2024	0.0178	807 720	49.89%
Q4 2023	16.04.2024	0.0143	648 898	49.99%
Q3 2023	28.12.2023	0.0214	969 839	49.80%
Q2 2023	29.09.2023	0.0195	883 732	49.95%
Q1 2023	30.06.2023	0.0177	802 157	49.73%

Dividend period

Annual

Annual

Dividend payment date	EUR/ Share	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 1.152 on 30 April 2025 and including management s proposed dividends from Q1 2025 net profit.

Dividend yield 8.0%*

Share performance

• , Share pr-ce changes s-nce Q2 2024 due to the largest shareholder's publ-c share offer-ngs -n wh-ch the shares were offered at a d-scount for a pr-ce of EUR 1.09 per share. S-nce then the share pr-ce has recovered to EUR 1.15 level.
• , Delf-nGroup -nvestors have rece-ved add-t-onally EUR 0.3125 per share -n d-v-dends s-nce IPO.

31.03.202O	DelfinGroup
Capitalization m €	53.4
EPS TTM €	0.167
P/E	6.9
ROE	27.9%

Share price and turnover, €

Share dynamics compared to indexes

120%
115%
110%
105%
100%
95%
90%
85%
80%
75%
70%

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Consolidated income statement

Balance sheet, EUR'000	2021				2022				2023				2024				2025
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1*	Q2*	Q3*	Q4	Q1	Q2	Q3	Q4	Q1
Total revenue	5,890	5,765	6,335	7,199	7,586	8,095	9,587	10,507	11,333	11,970	13,208	13,912	14,260	14,838	16,503	17,353	17,527
Cost of sales	-620	-862	-721	-955	-780	-1,080	-1,179	-1,164	-1,372	-1,096	-1,641	-1,977	-1,505	-1,166	-1,983	-2,374	-1,957
Credit loss expenses	-735	-595	-827	-658	-1,410	-1,082	-1,628	-2,041	-2,466	-2,769	-2,843	-2,608	-3,421	-3,550	-4,072	-4,060	-4,658
Interest expenses and similar expenses	-1,011	-852	-918	-1,046	-689	-958	-1,390	-1,632	-1,792	-2,052	-2,285	-2,450	-2,561	-2,662	-2,797	-2,891	-2,865
Gross profit	3,524	3,457	3,868	4,541	4,707	4,975	5,390	5,670	5,702	6,052	6,439	6,878	6,773	7,461	7,651	8,028	8,048
Selling expenses	-1,326	-1,442	-1,524	-1,832	-1,757	-1,686	-1,939	-2,118	-2,062	-2,054	-2,244	-2,388	-2,588	-2,575	-2,854	-2,984	-3,118
Administrative expenses	-945	-1,054	-1,019	-1,200	-1,280	-1,346	-1,477	-1,671	-1,766	-1,957	-1,942	-2,063	-2,068	-2,482	-2,369	-2,421	-2,571
Other operating income	16	11	29	29	24	22	21	37	15	12	11	37	25	38	72	46	37
Other operating expenses	-142	154	-127	-20	-115	-123	-60	-16	-64	82	-92	-145	-103	-117	-81	-277	-132
Profit before tax	1,128	1,125	1,227	1,517	1,579	1,842	1,935	1,901	1,825	1,971	2,174	2,319	2,039	2,324	2,419	2,391	2,264
Income tax expense	-324	-299	-201	-155	-188	-742	-154	-212	-212	-202	-226	-1,021	-420	-482	-504	-492	-495
Net profit	804	826	1,026	1,362	1,391	1,099	1,782	1,689	1,613	1,769	1,948	1,298	1,619	1,842	1,915	1,899	1,769
EBITDA	2,399	2,241	2,400	2,922	2,559	3,091	3,628	3,833	3,923	4,345	4,786	5,137	5,028	5,422	5,702	5,779	5,605

Consolidated balance sheet

27 *Data for previous periods of Q4 2024 and 2023 restated as per corrections made in the audited annual statements for 2024 and 2023.

Balance sheet, EUR'000	2021*				2022*				2023				2024				2025
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4*	Q1
Fixed and intangible assets	864	818	789	1,201	1,031	1,351	1,387	1,470	1,595	1,823	2,150	2,680	2,814	3,032	3,192	3,228	3,241
Right-of-use assets	3,281	3,145	3,013	2,973	2,915	2,733	2,783	2,636	2,698	2,712	2,655	2,887	2,701	2,804	2,736	2,653	2,618
Loans to related parties	445
Net loan portfolio	32,937	33,859	38,812	43,755	47,967	54,397	60,501	67,518	73,453	78,099	84,552	89,026	95,554	101,549	107,734	113,474	120,992
Inventory and scrap	976	938	1,167	1,255	1,240	1,566	1,844	2,290	3,909	4,662	3,571	3,391	3,558	3,782	3,905	3,990	4,014
Other assets		331	746	520	541	364	1,333	875	1,042	1,105	1,081	1,149	893	1,860	1,370	2,014	2,034
Cash	1,907	594	2,541	2,360	1,704	2,314	4,010	2,369	2,398	3,013	3,222	5,929	2,995	4,354	5,546	1,644	1,740
Total assets	40,905	39,688	47,069	52,163	55,667	62,765	71,858	77,158	85,095	91,415	97,232	105,061	108,515	117,381	124,483	127,003	134,638
Equity	8,639	8,108	8,696	17,476	17,989	15,885	17,059	18,106	18,915	19,917	21,016	21,322	22,332	22,381	23,996	24,929	25,709
Share capital and reserves	4,000	4,000	4,000	4,532	4,532	4,352	4,532	4,532	4,532	4,532	4,532	4,538	4,538	4,538	4,538	4,541	4,541
Share premium				6,891	6,891	6,891	6,891	6,981	6,891	6,891	6,891	6,891	6,891	6,891	6,891	6,891	6,891
Other capital reserves								93	128	163	198	170	210	215	240	223	248
Retained earnings	4,639	4,108	4,696	6,053	6,566	4,462	5,636	6,590	7,364	8,331	9,395	9,724	10,694	11,329	12,327	13,274	14,030
Liabilities	32,266	31,580	38,373	34,687	37,678	46,881	54,799	59,052	66,180	71,497	76,216	82,613	86,183	94,409	100,487	102,074	108,928
Interest-bearing debt	26,894	26,360	33,290	28,412	31,644	40,477	49,704	53,974	59,840	65,872	71,336	76,971	78,152	86,298	92,190	94,662	99,597
Trade payables and other liabilities	1,798	1,768	1,751	1,970	2,788	3,307	1,999	2,159	3,365	2,629	1,934	2,474	5,045	5,015	5,263	4,458	6,409
Lease liabilities for right-of-use assets	3,574	3,452	3,332	3,305	3,246	3,096	3,097	2,918	2,974	2,997	2,946	3,168	2,986	3,096	3,034	2,954	2,922
Total equity and liablities	40,905	39,688	47,069	52,163	55,667	62,765	71,858	77,158	85,095	91,415	97,232	105,061	108,515	117,381	124,483	127,003	134,638

Sustainability

Relevant united nations sustainable development goals:

Promotion of circular economy

Prolonged life-cycle of consumer goods.

More than 160k pre-owned items sold yearly.

-

• -

Inclusive society

The most geographically available financial institution in Latvia. 90+ branches across Latvia.

Serving the underserved customer segments.

Charitable activities for children, seniors and people living in regions.

Sustainable corporate governance

3 independent members of the Supervisory Board. Independent internal audit unit.

Historic timeline

Highly appreciated company

Top Employer CV-Online Latvia

Best Trader of Latvia

Latvian Traders Association

Gold Category in Sustainability Index 2023 Institute of Corporate Sustainability and Responsibility

Latvian Corporate Governance Award 2021

Latvian Corporate Governance Advisory Board

Family-Friendly Workplace

ISO 9001, ISO 5001, ISO 27000 Certification

Bureau Veritas

EBITDA

Earnings before interest, taxes, depreciation and amortization = (Profit before tax) + (Interest expenses and similar expenses) + (Rights of used assets depreciation) + (Depreciation of fixed assets) + (Amortization). Used as a measure of corporate performance as it shows earnings before the influence of accounting and financial deductions.

EBITDA Margin

Operating profitability as a percentage of its total revenue, calculated as EBITDA / (Interest income + Gross profit from sale of foreclosed items). Used as a profitability measure that is factoring out the effects of decisions related to financing and accounting.

Interest Coverage Ratio

Profitability and debt ratio, calculated as EBITDA / Interest expenses and similar expenses. Used to determine how easily a company can pay interest on its outstanding debt.

Cost-to-Income Ratio

((Sales expenses) + (Administrative expenses) + (Other expenses (excluding Loss from cession (debt sales) of non-performing loans)) ) / ((Net sales) – (Cost of sales) + (Interest income and similar income) + (Other operating income) – (Interest expenses and similar expenses))

Return on Equity (ROE)

Net profit for the period/months in the period*12 / ( ((Equity as at start of the period) + (Equity as at period end)) / 2)

Total Revenue

Net sales + Interest income and similar income. Represents income generated by ompany s business segments.

Interest-Bearing Debt

Liabilities that require the payment of interest, including bonds, other loans, leasing liabilities etc. Interest-Bearing Debt has a priority over other debts.

Cost of Interest-Bearing Liabilities

Weighted average nominal interest rate calculated by amount of interest bearing liabilities as at period end

Equity Ratio

Equity/Total assets

Non-Performing Loan Ratio

90+ days overdue portfolio share in consumer loan portfolio

Dividend Yield

Dividends per share paid over the last 12 months / price per share. If additional dividend payment is proposed by the companys Management Board but not yet paid, it is included in the calculation, and the last 12 months are calculated from the proposed dividend payment date.

Definitions for alternative performance measures

The goal of alternative performance measures is to provide investors with performance measures that are widely used when making investment decisions 31 and comparing the performance of different companies.

Disclaimer

This presentation is of selective nature and is made to provide an overview of the company's (AS DelfinGroup and its subsidiaries) business.

Unless stated otherwise, this presentation shows information from consolidated perspective.

Facts and information used in this presentation might be subject to revision in the future. Any forward-looking information may be subject to change as well.

This presentation is not a legally binding document, and the Company has no liability for any direct or indirect loss from the use of this presentation.

This presentation does not intend to contain all the information that investors may require in evaluating the Company. Investors should read publicly available information regarding the Company to make an investment decision.

AS DelfinGroup

Skanstes Street 50A, Riga, Latvia, LV-1013

IR@delfingroup.lv (+371) 26 18 99 88 www.delfingroup.lv