Delfin Group — Interim / Quarterly Report 2024

Feb 27, 2025

Financial report Unaudited results for 12 months

Ending 31 December 2024

Business results

Key characteristics of 2024

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

Key results

• 3 Loan issuan4e in Q4 2024 4ontinued to in4rease, rea4hing the re4ord-high level of EUR 27 million, fa4ilitated by a strong online and offline market presen4e in Latvia.
• 3 Alongside loan issuan4e, the net loan portfolio has in4reased by 27% in 2024, rea4hing EUR 113.5 million.
• 3 Quarterly revenues rea4hed all-time high, rea4hing EUR 17.4 million, a 25% growth 4ompared to Q4 2023.
• 3 Profit before tax in Q4 rea4hed EUR 2.6 million, a 12% in4rease.

Total loans Issued

Total revenue

Profit before tax

Net loan portfolio

Consumer lending launched in Lithuania

• * In November 2024 company started cons+mer lending iss+ance in Lith+ania.
• * Loans are iss+ed both online and offline at branch network.
• * Now operations in Lith+ania are carried o+t in all the b+siness segments as in Latvia.

Capital markets & funding highlights

• C Bonds ISIN LV0000860146 and LV0000802700 listed on Nasdaq )irst North in November 2024(
• C In total D DelfinGroup bond issues are listed on the Nasdaq Baltic stock exchange(
• C In September 202D DelfinGroup organized a successful public bond issue with oversubscription of 1D8% with total demand reaching EUR 22.3 million.

Bonds

Banks

P2P

• C Delfinzrup raised 4.9 millin eurs frm Citadele ¡ank
• C Citadele funding is an overdraft facility to ensure effective cash management and further growth(

• C Diversified ¡ank financing of EUR 18.2 million split ¡etween 3 ¡anks.

• µ Gradual decrease of P2P exposure from EUR 30.2 million at the beginning of the year to EUR 25 million at the end of 202D(

• µ Risk scores on Mintos remain at one of the best scores on the platform. Banknote 8.7 and VIZIA 8.8 (10 being the best score).

branch network

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

Opening of new branches and expansion of Banknote XL network:

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

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

Improved online store

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

Renewed online store design according to latest standards

Improved UX for seamless shopping

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

65 000+ Goods available for sale 30 000+

Units sold via online store

9

Management improvements

Andrejs Aleksandrovičs CFO

Has become a member of the Management Board.

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

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

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

Consumer loans

• 4 The 5onsumer lending portfolio 5ontinued in5reasing, as did the average loan amount and term. At the end of Q4 2024, the net loan portfolio rea5hed 104.0 million euros.
• 4 Due to stable demand and in5reasing ti5ket and term size, the 5onsumer loan portfolio grew by 28% 2024.
• 4 Non-performing loan (NPL) ratio (loans late 90+ days) remains at a solid level of 2.4% whi5h is signifi5antly below 5ompany's internally set target of _%.

Non-performing loan ratio

Average loan*

Consumer net loan portfolio

Weighted average term of loans issued

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

Pawn loans

• 8 Pawn loan portfolio has increased 18% in 2024.
• 8 Pawn loan issuance increased 9% in 12M period, and 12% in Q4 compared to correspondin9 periods last year.
• 8 The avera9e pawn loan amount has 9rown over the last year as inflation has pushed prices for items and Vewelry.

Pawn net loan portfolio*

Average pawn loan amount

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

Retail of pre-owned goods*

• ; Stable and <onsistent growth has been a<hieved in the retail segment by promoting the <ir<ular e<onomy prin<iples in Latvia and Lithuania.
• ; Retail sales of pre-owned goods in Q4 2024 rea<hed histori<ally highest quarterly amount, rea<hing EUR 4.6 million, a 15% in<rease to last year's respe<tive period.
• ; Online store sales gradually in<reasing after design and UX updates and a laun<h of operations in Lithuania.
• ; Gross margin in Q4 at 39% whi<h is in line with histori< levels in the retail of pre-owned goods segment.

Sales of pre-owned goods

Online store sales

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

Sales split by product category

Sales split by product category (Q4M 2024)

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

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

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

Diversification

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

Distribution of active clients by age on 31 December 2024iii

Revenue by business segments 12M 2024

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

Consolidated income statement

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

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

• T In 2024 Uompany Uontinued investing in Lithuanian business to set up IT systems, open branUhes and raise brand awareness.
• T Meanwhile Latvian business generated revenue growth of 24% in 2024.
• T Profit before tax for Latvian business inUreased 23% y-o-y and 25% q-o-q.
• T EBITDA for Latvian business inUreased 26% y-oy and 22% q-o-q.

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

Consolidated balance sheet

Financial ratios

EBITDA margin data for previous periods of 2023 restated as per corrections made in the audited annual statements for 2023. 19

***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*

ROE***

Adjusted equity ratio**

Capital structure

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

Bond financing track record*

m €

Dividends

Unique dividend distribution proposal in Baltics

Quarterly dividends

• K At least 4 dividend payments peE yeaD
• K Up to 50% fEom pEevious Q pEofit

Dividend
Leriod

Q4 2024

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

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

Dividend Leriod

Annual

Annual

Dividend Layment 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 1.15 on 24 February 2025 and including management s proposed dividends from Q4 2024 net profit.

Dividend yield 7.8%*

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

Share performance

• Share pri?e ?hanges sin?e Q2 2024 due to the largest shareholder's publi? share offerings in whi?h the shares were offered at a dis?ount for a pri?e of EUR 1.09 per share. Sin?e then the share pri?e has re?overed to EUR 1.15 level.

• DelfinGroup investors have re?eived additionally EUR 0.2902 per share in dividends sin?e IPO.

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

Share price and turnover, €

Share dynamics compared to indexes

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

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Business Performance Business Appendix Highlights

Consolidated income statement

Balance sheet, EUR'000	2021				2022						2023		2024
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1*	Q2*	Q3*	Q4	Q1	Q2	Q3	Q4
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	17,356
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	-2,373
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
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
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	8,031
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	-2,985
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
Other operating income	16	11	29	29	24	22	21	37	15	12	11	37	25	38	72	46
Other operating expenses	-142	154	-127	-20	-115	-123	-60	-16	-64	82	-92	-145	-103	-117	-81	-75
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	2,596
Income tax expense	-324	-299	-201	-155	-188	-742	-154	-212	-212	-202	-226	-1,021	-420	-482	-504	-568
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	2,028
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	5,983

Consolidated balance sheet

Balance sheet,	2021*			2022*						2023	2024
EUR'000	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
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
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
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
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
Other assets		331	746	520	541	364	1,333	875	1,042	1,105	1,081	1,149	893	1,860	1,370
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
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
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
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
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
Other capital reserves								93	128	163	198	170	210	215	240
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
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
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
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
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
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

* Data reflected according to restated comparatives in the latest financial statements. 26

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

Pawnshop

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 THe Society Integration Foundations

ISO 9001, ISO 5001 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 30 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