Eleving Group S.A.

Annual Report (ESEF) • Apr 29, 2025

Eleving Group S.A. - 894500N14T2GUDX0FL66 - 2024 894500N14T2GUDX0FL662024-01-012024-12-31894500N14T2GUDX0FL662023-01-012023-12-31894500N14T2GUDX0FL662024-12-31894500N14T2GUDX0FL662023-12-31894500N14T2GUDX0FL662022-12-31ifrs-full:IssuedCapitalMember894500N14T2GUDX0FL662022-12-31ifrs-full:TreasurySharesMember894500N14T2GUDX0FL662022-12-31ifrs-full:SharePremiumMember894500N14T2GUDX0FL662022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember894500N14T2GUDX0FL662022-12-31ifrs-full:RetainedEarningsMember894500N14T2GUDX0FL662022-12-31ifrs-full:OtherReservesMember894500N14T2GUDX0FL662022-12-31ifrs-full:ReserveOfSharebasedPaymentsMember894500N14T2GUDX0FL662022-12-31ext:TotalEquityAttributableToEquityHoldersOfTheParentCompany894500N14T2GUDX0FL662022-12-31ifrs-full:NoncontrollingInterestsMember894500N14T2GUDX0FL662022-12-31894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:IssuedCapitalMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:TreasurySharesMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:SharePremiumMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:RetainedEarningsMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:OtherReservesMember894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:ReserveOfSharebasedPaymentsMember894500N14T2GUDX0FL662023-01-012023-12-31ext:TotalEquityAttributableToEquityHoldersOfTheParentCompany894500N14T2GUDX0FL662023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember894500N14T2GUDX0FL662023-12-31ifrs-full:IssuedCapitalMember894500N14T2GUDX0FL662023-12-31ifrs-full:TreasurySharesMember894500N14T2GUDX0FL662023-12-31ifrs-full:SharePremiumMember894500N14T2GUDX0FL662023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember894500N14T2GUDX0FL662023-12-31ifrs-full:RetainedEarningsMember894500N14T2GUDX0FL662023-12-31ifrs-full:OtherReservesMember894500N14T2GUDX0FL662023-12-31ifrs-full:ReserveOfSharebasedPaymentsMember894500N14T2GUDX0FL662023-12-31ext:TotalEquityAttributableToEquityHoldersOfTheParentCompany894500N14T2GUDX0FL662023-12-31ifrs-full:NoncontrollingInterestsMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:IssuedCapitalMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:TreasurySharesMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:SharePremiumMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:RetainedEarningsMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:OtherReservesMember894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:ReserveOfSharebasedPaymentsMember894500N14T2GUDX0FL662024-01-012024-12-31ext:TotalEquityAttributableToEquityHoldersOfTheParentCompany894500N14T2GUDX0FL662024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember894500N14T2GUDX0FL662024-12-31ifrs-full:IssuedCapitalMember894500N14T2GUDX0FL662024-12-31ifrs-full:TreasurySharesMember894500N14T2GUDX0FL662024-12-31ifrs-full:SharePremiumMember894500N14T2GUDX0FL662024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember894500N14T2GUDX0FL662024-12-31ifrs-full:RetainedEarningsMember894500N14T2GUDX0FL662024-12-31ifrs-full:OtherReservesMember894500N14T2GUDX0FL662024-12-31ifrs-full:ReserveOfSharebasedPaymentsMember894500N14T2GUDX0FL662024-12-31ext:TotalEquityAttributableToEquityHoldersOfTheParentCompany894500N14T2GUDX0FL662024-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:EUR General information Name of the Parent Company Eleving Group Legal status of the Parent Company Société Anonyme Unified registration number, place and date of registration B 174.457, Luxembourg, 18 December 2012 Registered office 8-10, Avenue de la Gare, L-1610 Luxembourg Major shareholders 31.12.2024 SIA ALPPES Capital (Latvia) 37.31% AS Novo Holdings (Latvia) 12.44% SIA EMK Ventures (Latvia) 12.44% AS Obelo Capital (Latvia) 12.44% Lock-up shareholders each below 5% 6.19% Eleving Group S.A. 0.58% Other shareholders 18.60% TOTAL 100.00% Management Board members Māris Kreics (type A) from 25.07.2018 Modestas Sudnius (type A) from 09.03.2019 Sébastien Jean-Jacques J. François (type B) from 01.11.2022 Delphine Glessinger (type B) from 15.10.2023 Supervisory Board members Mārcis Grīnis (chairman) from 06.06.2024 Lev Dolgatšjov from 06.06.2024 Derek Bryce Urben from 06.06.2024 Financial year January - December 2024 Previous financial year January - December 2023 Auditors BDO AUDIT Société Anonyme Cabinet de révision agréé 1 rue Jean Piret, L-2350 Luxembourg Consolidated Financial Statements Consolidated Statement of Profit and Loss and Other Comprehensive Income Notes 2024 EUR 2023 EUR Continuing operations Interest revenue 4 203,749,375 176,297,775 Interest expense 5 (41,520,275) (37,499,444) Net interest income 162,229,100 138,798,331 Fee and commission income related to finance lease activities 6 10,076,029 8,968,142 Impairment expense 7 (42,102,621) (39,846,624) Net gain/(loss) from de-recognition of financial assets measured at amortized cost 8 1,759,100 1,159,323 Expenses related to peer-to-peer platform services 9 (895,450) (987,970) Revenue from leases 10 2,748,356 4,067,111 Revenue from car sales and other goods 11 7,074,452 1,936,451 Expenses from car sales and other goods 11 (6,559,224) (1,789,166) Selling expense 12 (7,203,030) (6,426,852) Administrative expense 13 (74,700,997) (63,246,010) Other operating income 14 2,859,320 2,368,739 Other operating expense 15 (13,834,721) (10,133,640) Net foreign exchange result 16 (3,709,849) (6,385,833) Profit before tax 37,740,465 28,482,002 Corporate income tax 17 (8,203,820) (8,324,461) Deferred corporate income tax 18 (732,929) 1,758,559 Profit from continuing operations 28,803,716 21,916,100 Discontinued operations Profit from discontinued operation, net of tax 19 768,112 2,538,954 Profit for the period 29,571,828 24,455,054 Other comprehensive income/(loss): Items that may be reclassified subsequently to profit or loss: Translation of financial information of foreign operations to presentation currency 1,977,649 (4,582,333) Other comprehensive income/(loss) 1,977,649 (4,582,333) Total profit and loss for the year 31,549,477 19,872,721 Profit is attributable to: Equity holders of the Parent Company 23,502,987 20,098,665 Non-controlling interests 6,068,841 4,356,389 Net profit for the year 29,571,828 24,455,054 Other comprehensive income/(loss) is attributable to: Equity holders of the Parent Company 1,836,593 (4,355,896) Non-controlling interests 141,056 (226,437) Other comprehensive income/(loss) for the year 1,977,649 (4,582,333) Consolidated Statement of Financial Position ASSETS NON-CURRENT ASSETS Notes 31.12.2024 31.12.2023 EUR EUR (restated) Intangible assets Goodwill 20 6,807,055 6,807,055 Internally generated intangible assets 20 11,784,864 10,263,919 Other intangible assets 20 5,319,515 5,393,463 Total intangible assets 23,911,434 22,464,437 Tangible assets Right-of-use assets 21, 22 10,779,098 10,559,286 Rental fleet 21 2,037,986 7,085,928 Property, plant and equipment 21 2,594,569 2,089,283 Leasehold improvements 21 869,889 782,859 Advance payments for assets 21 663 - Total tangible assets 16,282,205 20,517,356 Non-current financial assets Loans and advances to customers 23 189,649,583 154,854,453 Loans to affiliated companies 24, 41 3,253,724 - Equity‑accounted investees 25 1,238,003 580,714 Other loans and receivables 145,344 175,783 Deferred tax asset 18 9,193,592 8,877,839 Total non-current financial assets 203,480,246 164,488,789 TOTAL NON-CURRENT ASSETS 243,673,885 207,470,582 CURRENT ASSETS Inventories Finished goods and goods for resale 26 2,452,606 4,818,099 Total inventories 2,452,606 4,818,099 Receivables and other current assets Loans and advances to customers 23 179,516,427 158,349,702 Loans to affiliated companies 24, 41 54,455 - Other loans and receivables 9,964 198,574 Prepaid expense 27 4,353,931 3,124,744 Trade receivables 28 2,164,840 1,606,770 Other receivables 29 8,740,369 8,267,676 Cash and cash equivalents 30 34,461,093 27,470,468 Total receivables and other current assets 229,301,079 199,017,934 Assets of subsidiary held for sale or under liquidation 31 - 9,556,863 Assets held for sale 32 861,195 452,055 Total assets held for sale 861,195 10,008,918 TOTAL CURRENT ASSETS 232,614,880 213,844,951 TOTAL ASSETS 476,288,765 421,315,533 Consolidated Statement of Financial Position EQUITY AND LIABILITIES EQUITY Notes 31.12.2024 31.12.2023 EUR EUR Share capital 33 1,171,088 1,000,500 Treasury shares 33 (1,146,772) - Share premium 33 25,467,034 - Reserve 33 4,691,940 4,287,631 Share-based payments 45 40,654 - Foreign currency translation reserve 2,369,355 532,762 Retained earnings 60,110,305 47,773,110 brought forward 36,607,318 27,674,445 for the period 23,502,987 20,098,665 Total equity attributable to equity holders of the Parent Company 92,703,604 53,594,003 Non-controlling interests 15,413,373 11,841,222 TOTAL EQUITY 108,116,977 65,435,225 LIABILITIES Non-current liabilities Borrowings 35 267,562,839 225,944,140 Subordinated borrowings 35 - 16,462,354 Total non-current liabilities 267,562,839 242,406,494 Provisions 34 174,780 157,316 Total provisions for liabilities and charges 174,780 157,316 Current liabilities Borrowings 35 72,015,592 96,180,026 Liabilities associated with the assets held for sale or under liquidation 31 - 2,045,004 Prepayments and other payments received from customers 36 902,053 1,083,554 Trade and other payables 1,980,625 2,224,874 Current corporate income tax payable 17 3,591,081 729,149 Taxes payable 37 6,919,797 3,374,002 Derivative financial liabilities 38 5,317,084 - Other liabilities 39 2,367,886 1,902,392 Accrued liabilities 40 7,340,051 5,777,497 Total current liabilities 100,434,169 113,316,498 TOTAL LIABILITIES 368,171,788 355,880,308 TOTAL EQUITY AND LIABILITIES 476,288,765 421,315,533 Consolidated Statement of Changes in Equity Share capital Treasury shares Share premium Foreign currency translation reserve Retained earnings Reserve Share-based payments Total equity attributable to Equity holders of the Parent Company Non-controlling interest Total EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Balance at 01.01.2023 1,000,500 - - 4,888,658 38,167,599 1,122,204 - 45,178,961 8,894,339 54,073,300 Profit for the financial year - - - - 20,098,665 - - 20,098,665 4,356,389 24,455,054 Other comprehensive income - - - (4,355,896) - - - (4,355,896) (226,437) (4,582,333) Total comprehensive income - - - (4,355,896) 20,098,665 - - 15,742,769 4,129,952 19,872,721 Change in share capital - - - - - - - - (147,239) (147,239) Change in NCI without change in control - - - - (978,846) - - (978,846) 695,962 (282,884) Obtaining of subsidiary - - - - - 1,927,058 - 1,927,058 - 1,927,058 Dividends - - - - (8,275,939) - - (8,275,939) (1,731,792) (10,007,731) Reserve (Note 33) - - - - (1,238,369) 1,238,369 - - - - Balance at 31.12.2023 1,000,500 - - 532,762 47,773,110 4,287,631 - 53,594,003 11,841,222 65,435,225 Balance at 01.01.2024 1,000,500 - - 532,762 47,773,110 4,287,631 - 53,594,003 11,841,222 65,435,225 Profit for the financial year - - - - 23,502,987 - - 23,502,987 6,068,841 29,571,828 Other comprehensive income - - - 1,836,593 - - - 1,836,593 141,056 1,977,649 Total comprehensive income - - - 1,836,593 23,502,987 - - 25,339,580 6,209,897 31,549,477 Change in share capital 170,588 - - - - (100,000) - 70,588 388 70,976 Sale of subsidiary - - - - - (2,842) - (2,842) - (2,842) Change in NCI without change in control - - - - (1,597,725) - - (1,597,725) 649,750 (947,975) Share premium increase - - 25,467,034 - - - - 25,467,034 - 25,467,034 Purchase of treasury shares - (1,146,772) - - - - - (1,146,772) - (1,146,772) Interim dividends - - - - (9,020,262) - - (9,020,262) (3,287,884) (12,308,146) Share-based payments - - - - (40,654) - 40,654 (40,654) - (40,654) Reserve (Note 33) - - - - (507,151) 507,151 - - - - Balance at 31.12.2024 1,171,088 (1,146,772) 25,467,034 2,369,355 60,110,305 4,691,940 40,654 92,703,604 15,413,373 108,116,977 Consolidated Statement of Cash Flows Cash flows to/from operating activities Notes 2024 2023 EUR EUR Profit before tax from continuing operations 37,740,465 28,482,002 Profit from discontinued operation, net of tax 768,112 2,538,954 Adjustments for: Amortization and depreciation 20, 21 9,854,800 9,442,554 Interest expense 5 41,520,275 37,499,444 Interest income 4 (203,749,375) (176,297,775) Loss from disposal of property, plant and equipment 13 802,362 3,374,819 Impairment expense 7 42,102,621 39,846,624 (Gain)/loss from fluctuations of currency exchange rates 1,732,200 10,968,166 Cash flow (to)/from operating activities before working capital changes (69,228,540) (44,145,212) Decrease/(increase) in inventories 2,365,493 (2,332,279) Increase in finance lease receivables, loans and advances to customers (82,737,115) (69,245,456) and other current assets (Decrease)/increase in accrued liabilities 1,580,018 (318,380) Increase in trade payable, taxes payable and other liabilities 6,857,619 705,706 Cash generated to/from operations (141,162,525) (115,335,621) Interest received 203,694,920 176,297,775 Interest paid 35 (37,484,963) (33,269,320) Corporate income tax paid (6,635,098) (10,545,511) Net cash flows to/from operating activities 18,412,334 17,147,323 Cash flows to/from investing activities Purchase of property, plant and equipment and intangible assets 20, 21 (7,888,229) (7,956,761) Purchase of rental fleet 21 (421,846) (1,108,735) Disposal of discontinued operation, net of cash disposed of 19 - (104,578) Received payments for sale of shares in subsidiaries - 7,601 Made payments for acquisition of minority interest shares (947,975) (290,485) Cash acquired from integration of EC Finance - 4,379,262 Loan repayments received 368,831 4,857,599 Loans issued (3,403,364) (11,714) Net cash flows to/from investing activities (12,292,583) (227,811) Cash flows to/from financing activities Repayments of share capital to minority interest 27,753,617 (147,239) Fees paid to service providers during IPO process (3,362,379) - Proceeds from borrowings 35 199,164,638 288,281,493 Repayments for borrowings 35 (205,400,158) (275,592,907) Payments made for acquisition costs of borrowings 35 (1,984,721) (2,915,882) Dividends paid (12,308,146) (10,007,731) Repayment of liabilities for right-of-use assets 35 (3,119,372) (2,855,262) Net cash flows to/from financing activities 743,479 (3,237,528) Effect of exchange rates on cash and cash equivalents 127,395 (46,353) Change in cash 6,990,625 13,635,631 Cash at the beginning of the year 27,470,468 13,834,837 Cash at the end of the year 30 34,461,093 27,470,468 The Group has elected to present a statement of cash flows that includes an analysis of all cash flows in total - including both continuing and discontinued operations. Amounts related to discontinued operations by operating, investing and financing activities are disclosed in Note 19. Notes to the Consolidated Financial Statements 1. Corporate information Eleving Group S.A. (hereinafter “the Parent Company”) is a Luxembourg company incorporated on December 18, 2012 as a Société Anonyme for an unlimited duration, subject to the Company Law in Luxembourg. The Parent Company is registered in Luxembourg trade register under number B174457. Shares of the Parent Company are listed in Frankfurt stock exchange and Nasdaq Baltics stock exchange platforms (ELEVR | ISIN LU2818110020). The consolidated financial statements include Eleving group S.A. and its associated undertakings (hereinafter “the Group”): Subsidiary name Country of incorporation Registration number Principal activities % equity interest 2024 2023 Eleving Vehicle Finance AS Latvia 42103088260 Management services 98.85% 98.86% Mogo Peru S.A.C. Peru 20609973618 Financing 98.85% 98.86% Mogo UCO LLC Armenia 42 Financing 98.85% 98.86% Eleving Finance AS Latvia 40203150030 Management services 98.70% 98.70% SIA EC Finance Group Latvia 40203082656 Management services 98.70% 87.00% EC finance branch in Botswana Botswana BW00004103567 Management services 98.70% 87.00% AS ExpressCredit Holding Latvia 40203169911 Management services 98.70% 87.00% YesCash Group Ltd Mauritius 137426 C1/GBL Financing 98.70% 87.00% ExpressCredit Ltd Lesotho TRMBS:68483 Financing 98.70% 87.00% ExpressCredit Proprietary Ltd Botswana BW00000115487 Financing 98.70% 87.00% YesCash Zambia LTD Zambia 120180003452 Financing 98.70% 43.50% Primero Finance OU Estonia 12401448 Financing 88.32% 91.19% Mogo LLC Georgia 404468688 Financing 88.32% 91.19% Eleving Georgia LLC Georgia 402095166 Retail of motor vehicles 88.32% 91.19% Eleving AM LLC (Longo LLC) Armenia 286.110.1015848 Retail of motor vehicles 88.32% 91.19% Mogo OY Finland 3263702-2 Financing 88.32% 91.19% Mogo IFN SA Romania 35917970 Financing 88.32% 91.19% Eleving Stella AS Latvia 40103964830 Management services 88.32% 91.19% Eleving Stella LT UAB Lithuania 305018069 Management services 88.32% 91.19% Renti AS Latvia 40203174147 Rent services 88.32% 89.37% Mogo AS Latvia 50103541751 Financing 88.32% 89.37% MOGO FINANCE LLC JE Uzbekistan 310380440 Financing 86.55% 89.37% Mogo Loans SRL Moldova 10086000260223 Financing 85.23% 88.40% Mogo LT UAB Lithuania 302943102 Financing 88.32% 88.28% Renti UAB Lithuania 305653232 Financing 88.32% 88.28% Eleving Solis AS Latvia 40203182962 Management services 85.72% 84.84% Eleving Solis UAB Lithuania 304991028 Management services 85.72% 84.84% MOGO LOANS SMC LIMITED Uganda 80020001522601 Financing 85.23% 84.84% Mogo Auto Ltd Kenya PVT-AJUR7BX Financing 85.72% 84.84% Green Power Trading LTD (Mogo Kenya Ltd) Kenya PVT-BEU3ZKD Financing 85.72% 84.84% Mogo Lend LTD Uzbekistan 305723654 Financing 83.24% 82.38% Eleving Consumer Finance Holding, AS Latvia 40203249386 Management services 81.75% 81.74% ExpressCredit Cash Advance Ltd Namibia 2016/0767 Financing 78.66% 42.63% Eleving Consumer Finance AS Latvia 54103145421 Management services 78.13% 78.12% Insta Finance LLC Ukraine 43449827 Financing 78.13% 78.12% Kredo Finance SHPK Albania L71610009A Financing 78.02% 78.16% OCN SE Finance SRL Moldova 1020600028773 Financing 77.55% 77.54% FINTEK DOO Skopje (TIGO Finance DOOEL) North Macedonia 7229712 Financing 77.38% 79.41% OCN Sebo Credit SRL Moldova 1017600000371 Financing 77.12% 77.30% Mogo Balkans and Central Asia AS (liquidated on 06.11.2024.) Latvia 40203150045 Management services 0.00% 100.00% Mogo Leasing d.o.o. (liquidated on 04.07.2024.) Bosnia 4202540500009 Financing 0.00% 100.00% Rocket Leasing OOO (liquidated on 19.12.2024.) Belarus 193553071 Financing 0.00% 91.19% ExpressCredit Ltd (liquidated on 31.01.2024.) Eswatini R7/55063 Financing 0.00% 87.00% Autotrade OOO (sold on 07.05.2024.) Belarus 192846476 Other services 0.00% 87.18% MOGO Kredit LLC (sold on 07.05.2024.) Belarus 192981714 Financing 0.00% 87.18% Next Fin LLC (sold on 23.09.2024.) Ukraine 42273138 Financing 0.00% 78.12% SIA Spaceship (reorganized on 07.10.2024.) Latvia 40203300224 Car sharing services 0.00% 59.16% * - Subsidiary was fully consolidated in the Group in 2023, but after reorganization it has been excluded from consolidation in 2024 and disclosed as equity‑accounted investee. See Note 25 for more information. Changes in equity interest percentages are mainly driven by vesting of share option plans for key management employees. The core business activity of the Group comprises of providing financing services and loans and advances to customers as well as car retail. These Consolidated financial statements were authorized for issue by decision of the Board of directors on 28 April 2025. Shareholders have the financial statements' approval rights after approval by the Board of Directors. 2. Material accounting policy information a) Basis of preparation These consolidated financial statements as at and for the year ended 31 December 2024 are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The Group’s consolidated financial statements and its financial result are affected by accounting policies, assumptions, estimates and management judgement (Note 3), which necessarily have to be made in the course of preparation of the annual consolidated financial statements. The Group's management makes estimates and assumptions that affect the reported amounts of assets and liabilities within the current and next financial period. All estimates and assumptions required in conformity with IFRS are best estimates undertaken in accordance with the applicable standard. Estimates and judgements are evaluated on a continuous basis, and are based on past experience and other factors, including expectations with regard to future events. Accounting policies and management’s judgements for certain items are especially critical for the Group’s results and financial situation due to their materiality. Future events may occur which cause the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will be recorded in the financial statements, when determinable. The consolidated financial statements are prepared on a historical cost basis as modified by the recognition of financial instruments measured at fair value, and except for inventory which is accounted in lower of cost or net realizable value and contingent consideration that has been measured at fair value. Intercompany transactions, balances and gains or losses on transactions between group companies are eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform to the Group’s accounting policies. The Group's presentation and functional currency is euro (EUR). Accounting policies and methods are consistent with those applied in the previous years, except as described below. The consolidated financial statements comprise the financial statements of Eleving Group S.A. (Parent company) and entities controlled by the Parent Company (its subsidiaries) as at 31 December 2024. The financial statements of the subsidiaries are prepared for the same reporting period as for the Parent company, using consistent accounting policies. Control is achieved when the Parent Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The financial statements of the Parent Company and its subsidiaries are consolidated in the Group’s consolidated financial statements by adding together like items of assets and liabilities as well as income and expense. All intercompany transactions, balances and unrealized gains and losses on transactions between controlled members of the Group are eliminated in full on consolidation. The equity and net income attributable to non-controlling interests are shown separately in the statement of financial position and the statement of profit and loss and other comprehensive income. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. The acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction in accordance with IFRS 10. Any excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognized in equity of the parent in transactions where the non-controlling interests are acquired or sold without loss of control. The Group recognizes this effect in retained earnings. If the subsidiary to which these non-controlling interests relate contain accumulated components recognized in other comprehensive income/ (loss), those are reallocated within equity of the Parent. If the Group loses control over a subsidiary, it: - Derecognizes the related assets (including goodwill) and liabilities of the subsidiary; - Derecognizes the carrying amount of any non-controlling interests; - Derecognizes the cumulative translation differences recorded in equity; - Recognizes the fair value of the consideration received; - Recognizes the fair value of any investment retained; - Recognizes any surplus or deficit in the profit and loss; - Reclassifies the Group’s share of components previously recognized in other comprehensive income to profit and loss or retained earnings, as appropriate. Going concern As the global economy is entering a third year of non-zero key interest rates environment, the Group has managed to post its strongest ever financial results for year 2024 as well as 2023. The Group’s product structure allows a significant equity build up during the periods of stable growth. Although the Group largely operates with borrowed capital, the interest expense forms only 20.4% (in 2023: 21.3%) from its interest revenue. As at 31 December 2024, the principal of Group’s total borrowings amounted to EUR 339.6 million of which EUR 72.0 million is due for renewal over the following 12 months. The Group’s current assets are EUR 232.6 million, effectively exceeding the principal of borrowings due next 12 months by more than three times. The Group has a track record of successful cash generation and ability to access funding from debt capital markets as well as other sources during protracted periods of economic uncertainty (tested in both 2020, 2022 and onwards), hence the Group is expected to meet its funding requirements for the foreseeable future. Although exposed to external economic environment, the Group’s portfolio quality is substantially at the control of Group itself as it has the ability to adjust the underwriting standards on a country as well as individual product basis. Practically that means the Group would tighten the underwriting criteria for new loans to be issued if external factors (such as inflation or currency volatility) would potentially impact Group's borrowers' credit worthiness, meaning the Group would seek to issue loans primary to those customers with the highest ability to settle their debts in future. As a result of these activities the ratio of impairment expenses to the interest revenue has decreased by 2 percentage points when comparing year 2024 to the year 2023. Importantly the improvement of the mentioned ratio has been achieved despite having higher net portfolio by 16.0% in 2024 versus 2023. Given the regional diversification of the Group’s business across three continents and Eastern European region being one of them, it is important to highlight that the Group is not a sanctions target and does not maintain business relations with sanctioned entities. Additionally, two its subsidiary in Ukraine has been substantially scaled down without a substantial impact on the overall Group results and its subsidiary in Belarus has not been fully divested without negative impact on Group's financial results. 1) In Ukraine the Group is focused on collection activities only. The collected funds are being partially repatriated with remainder temporarily being housed in the country. The funds collected as well as temporarily housed in country are not material for the Group and its going concern operations. 2) In April 2024, the Group has completed the sale of Belarus entities coupled with a full refinance of Group's liabilities. Additionally during June 2024 the Group received a credit rating upgrade from Fitch Ratings upgrading Group from 'B-' to 'B' with a stable outlook. As stated in Fitch’s report, the key drivers for the rating update were improvements in the Group’s performance in the last 24 months, including lower leverage, a longer record of business model stability, and access to debt capital markets. During October 2024 the Group successfully placed the largest IPO in Latvia and one other largest ones in Baltics by attracting EUR 29 million and further strengthening its capital base. The Group's shares have become traded in Nasdaq Riga Baltic Main List and on the Frankfurt Stock Exchange’s Prime Standard This event together with already established independent supervisory board and published dividend policy, notably improves Group's credit profile and its access to the European capital markets. Total equity reached EUR 108.1 million at the end of 2025, compared to EUR 65.4 million at the end of the corresponding reporting period a year ago. Net profit for year reached EUR 29.6 million, an increase of 21%, compared to the corresponding reporting period a year ago (2023: EUR 24.5 million). These consolidated financial statements are prepared on a going concern basis. 2. Material accounting policy information (continued) b) Changes in accounting policy and disclosures The accounting policies adopted are consistent with those of the previous financial year, except changes disclosed under section e). c) New standards, interpretations and amendments adopted from 1 January 2024 The following amendments are effective for the period beginning 1 January 2024: - Supplier Finance Arrangements (Amendments to IAS 7 & IFRS 7); - Lease Liability in a Sale and Leaseback (Amendments to IFRS 16); - Classification of Liabilities as Current or Non-Current (Amendments to IAS 1); and - Non-current Liabilities with Covenants (Amendments to IAS 1). These amendments to various IFRS Accounting Standards are mandatorily effective for reporting periods beginning on or after 1 January 2024. See the applicable notes for further details on how the amendments affected the Group. Supplier Finance Arrangements (Amendments to IAS 7 & IFRS 7) On 25 May 2023, the IASB issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The amendments require entities to provide certain specific disclosures (qualitative and quantitative) related to supplier finance arrangements. The amendments also provide guidance on characteristics of supplier finance arrangements. These amendments had no effect on the consolidated financial statements of the Group. Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) On 22 September 2022, the IASB issued amendments to IFRS 16 - Lease Liability in a Sale and Leaseback (the Amendments). Prior to the Amendments, IFRS 16 did not contain specific measurement requirements for lease liabilities that may contain variable lease payments arising in a sale and leaseback transaction. In applying the subsequent measurement requirements of lease liabilities to a sale and leaseback transaction, the Amendments require a seller-lessee to determine ‘lease payments’ or ‘revised lease payments’ in a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. These amendments had no effect on the consolidated financial statements of the Group. Classification of Liabilities as Current or Non-Current and Non-current Liabilities with Covenants (Amendments to IAS 1) The IASB issued amendments to IAS 1 in January 2020 Classification of Liabilities as Current or Non-current and subsequently, in October 2022 Non-current Liabilities with Covenants. The amendments clarify the following: - An entity’s right to defer settlement of a liability for at least twelve months after the reporting period must have substance and must exist at the end of the reporting period. - If an entity’s right to defer settlement of a liability is subject to covenants, such covenants affect whether that right exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the end of the reporting period. - The classification of a liability as current or non-current is unaffected by the likelihood that the entity will exercise its right to defer settlement. - In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entity’s own equity instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the option is classified as an equity instrument. These amendments have no effect on the measurement of any items in the consolidated financial statements of the Group. d) New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2025: - Lack of Exchangeability (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates). The following amendments are effective for the period beginning 1 January 2026: - Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7); - Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7). The following amendments are effective for the period beginning 1 January 2027: - IFRS 18 Presentation and Disclosure in Financial Statements; - IFRS 19 Subsidiaries without Public Accountability: Disclosures. The Group is currently assessing the effect of these new accounting standards and amendments. IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024 supersedes IAS 1 and will result in major consequential amendments to IFRS Accounting Standards including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures. The Group is yet to assess the impact on its accounting policies of IFRS 19 in the future. 2. Material accounting policy information (continued) e) Reclassification of comparative indicators To further improve the readability of the Group's Consolidated Financial Statements, the Group has decided to merge two items of its statement of financial position into one. Previously the Group split its receivables related to customer financing in two separate items based on legal framework. The Group has recognized that such split of receivables does not show desired information, therefore it has decided to merge those receivables into one and disclose more significant information in Notes, respectfully showing the segragation of its financing receivables according to their risk profile and showing them in secured and unsecured portions. As a result, the Group has restated the balances as at 31 December 2023. Balance at 31.12.2023 in annual report for 2023 Restatements Balance at 31.12.2023 after restatement Statement of financial position - Assets NON-CURRENT ASSETS Finance lease receivables 59,798,508 (59,798,508) - Loans and advances to customers 95,055,945 59,798,508 154,854,453 CURRENT ASSETS Finance lease receivables 52,204,095 (52,204,095) - Loans and advances to customers 106,145,607 52,204,095 158,349,702 TOTAL: 313,204,155 - 313,204,155 Foreign currency translation The consolidated financial statements are presented in euro (EUR), which is the presentation currency of the Group. EUR is the monetary unit of Luxembourg, where the Parent Company is established. Transactions in foreign currencies are translated into the euro at the reference exchange rate fixed by the European Central Bank at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into EUR applying the reference exchange rate established by the European Central Bank at the last day of the reporting year. The differences arising on settlements of transactions or on reporting foreign currency transactions at rates different from those at which these transactions have originally been recorded in the profit and loss and presented within finance costs. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. The non-monetary items are carried at historical cost and no further retranslation is performed. For the purpose of presenting consolidated financial statements, the assets and liabilities of foreign operations except non-monetary items, valued at historical exchange rate are translated into euros at the rate of exchange prevailing at the reporting date and their statements of profit and loss and other comprehensive income are translated at exchange rates prevailing at the dates of transactions. If subsidiary’s functional currency differs from the presentation currency of the Group, income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during the period, in which case the currency exchange rates at the date of the transactions are applied. The exchange differences arising on translation for consolidation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified in profit or loss. Currency exchange rates used for translation of foreign operations into euros: 31.12.2024 31.12.2023 2024 average 2023 average 1 EUR 1 EUR 1 EUR 1 EUR GEL 2.9306 2.9753 2.9455 2.8436 RON 4.9741 4.9746 4.9746 4.9464 ALL 98.15 103.88 100.70 108.75 MDL 19.3106 19.3574 19.2533 19.6431 BYR 3.4864 3.5363 3.3131 3.2544 UAH 43.9266 42.2079 43.4749 39.5619 UZS 13,436.01 13,731.82 13,694.50 12,694.06 AMD 413.89 447.90 424.88 424.59 MKD 61.4950 61.495 61.5728 61.5570 BAM 1.95583 1.9558 1.95583 1.95583 KEL 134.2900 173.78 145.8864 151.3074 UGX 3,822.52 4,172.28 4,064.98 4,029.01 BWP 14.5138 14.8588 14.6712 14.4545 ZMW 28.9679 28.3798 28.2497 21.8612 LSL 19.5710 20.2064 19.8347 19.9753 SZL 19.5710 20.2064 19.8261 19.9753 NAD 19.5710 20.2064 19.8339 19.9807 Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, including contingent consideration, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, the Group elects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed and included in other operating expense in the statement of profit and loss. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date and any difference is recognized in profit and loss. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group will retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. During the measurement period, the Group will also recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as the Group receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability will be recognized in accordance with IFRS 9 in profit or loss. If the contingent consideration is classified as equity, it will not be remeasured. Subsequent settlement is accounted for within equity. In instances where the contingent consideration does not fall within the scope of IFRS 9, it is remeasured at fair value at each reporting date and subsequent changes in fair value are recognized in profit or loss. 2. Material accounting policy information (continued) Discontinued operations A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: - represents a separate major line of business or geographic area of operations; - is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or - is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year. Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the gain is recognized in profit or loss statement immediately. Goodwill is carried at cost less accumulated impairment losses, if any. The Group tests goodwill for impairment at least annually and whenever there are indications that goodwill may be impaired. Goodwill is allocated to the cash-generating units. Such units represent the smallest groups of assets that generate cash inflows from continuing use that are largely independent of the cash flows of other assets or CGUs. Measurement of gains or losses on disposal of an operation within a cash generating unit to which goodwill has been allocated include the carrying amount of goodwill associated with the disposed operation, generally measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit which is retained. Impairment is recognized whenever the carrying value of CGU to which goodwill is allocated is above the recoverable value of such CGU. The recoverable amount of cash generating units has been determined based on value in use calculations. These calculations require the use of estimates as disclosed in Note 20. Internally generated intangible assets Internally generated intangible assets primarily include the development costs of the Group's information management systems. These costs are capitalized only if they satisfy the criteria as defined by IAS38 and described below. Internal and external development costs on management information systems arising from the development phase are capitalized. Significant maintenance and improvement costs are added to the initial cost of assets if they specifically meet the capitalization criteria. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. Internally generated intangible assets cost value is increased by Group's information technology costs - salaries and social security contribution capitalization. All other expenditure is recognised in profit or loss as incurred. Asset useful life is reassessed by management at each year end and amortization periods adapted accordingly. Internally generated intangible assets are amortized over their useful lives of 7 years. The main internally generated intangible assets are CRM systems. According to IAS38, development costs shall be capitalized if, and only if, the Group can meet all of the following criteria: - the project is clearly identified and the related costs are itemized and reliably monitored; - the technical and industrial feasibility of completing the project is demonstrated; - there is a clear intention to complete the project and to use or sell the intangible asset arising from it; - the Group has the ability to use or sell the intangible asset arising from the project; - the Group can demonstrate how the intangible asset will generate probable future economic benefits; - the Group has adequate technical, financial and other resources to complete the project and to use or sell the intangible asset. When these conditions are not satisfied, development costs generated by the Group are recognized as an expense when incurred. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is completed and the asset is available for use. Additional information is included in Notes 3 and 20. Amortization is calculated on a straight-line basis over the estimated useful life of the asset as follows: IT systems - over 7 years. Other intangible assets Other intangible non-current assets are stated at cost and amortized over their estimated useful lives on a straight-line basis. The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Losses from impairment are recognized where the carrying value of intangible non-current assets exceeds their recoverable amount. Other intangible assets mainly consists of acquired computer software products. Amortization is calculated on a straight-line basis over the estimated useful life of the asset as follows: Concessions, patents, licences and similar rights - over 1 year; Internally developed intangible assets - over 7 years; Other intangible assets - over 2 to 7 years. Trademarks, licenses and customer contracts (if separable) acquired in a business combination are recognized at fair value at the acquisition date. Trademarks are used to identify and distinguish specific brand names of companies. The rights to use brand names have a set expiry date, however it is renewable at a notional cost. The group intends to renew the trademark continuously and past evidence supports its ability to do so. An analysis of future cash flows provides evidence that the brands will generate net cash inflows for the group for an indefinite period. Therefore, the trademarks are considered to have infinite useful lives and are measured at cost less accumulated impairment losses if the recoverable amount is lower than carrying value. Such impairment testing is done annually by allocating trademarks to relevant CGUs and estimating their value in use (VIU). Please see Note 20 for further details. 2. Material accounting policy information (continued) Property, plant and equipment Equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as described below. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items: Computers - over 3 years; Furniture - over 5 years; Vehicles - over 5 years; Leasehold improvements - over lease term; Other equipment - over 2 years. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only then when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The carrying values of equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of equipment is the higher of an asset’s fair value less cost to sell and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in the statement of profit and loss in the impairment expense caption. An item of equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of profit and loss in the year the item is derecognized. Depreciation methods, useful lives and residual values of property, plant and equipment are reviewed at each reporting date and adjusted if appropriate. Rental fleet Rental fleet includes assets leased by the Group (as lessor) under operating leases. Group accounts for the underlying assets in accordance with IAS 16. Depreciation policy for the underlying assets subject to operating leases is consistent with the Group’s depreciation policy for similar assets (vehicles) and amounts to 7 years. Group adds initial direct costs, including The Global Positioning System (GPS) costs and dealership commissions, incurred in obtaining the operating lease to the carrying amount of the underlying asset and recognizes those costs as an expense over the lease term on the same basis as the lease income. The Group applies the general principles described under ‘Critical accounting estimates and judgements’ (Note 3) to determine whether an underlying asset subject to an operating lease may have residual value unrecoverable and impairment loss may need to be recognized. Financial assets Financial instruments - initial recognition Date of recognition Loans and advances to customers are recognized when funds are transferred to the customers’ accounts. Other assets are recognized on the date when Group enters into the contract giving rise to the financial instruments. Initial measurement of financial instruments The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments, as described further in the accounting policies. Financial instruments are initially measured at their fair value (which is generally equal to the transaction price) adjusted for transaction costs that are directly attributable to its acquisition or issue, except in the case of financial assets and financial liabilities recorded at FVPL. Classification of financial assets The Group measures Loans and advances to customers, Loans to related parties, Receivables from related parties, cash equivalents and Other loans and receivables at amortized cost if both of the following conditions are met: - The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. All financial assets not classified as measured at amortised cost as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. 2. Material accounting policy information (continued) Business model assessment The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective - the risks that affect the performance of the business model (and the financial assets held within that business model) and the way those risks are managed. The frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectations about future sales activity are also important aspects of the Group’s assessment. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Group’s stated objective for managing the financial assets is achieved and how cash flows are realised. The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’ scenarios into account. If cash flows after initial recognition are realized in a way that is different from the Group's original expectations, the Group does not change the classification of the remaining financial assets held in that business model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward. The assessed business model is with the intention to hold financial assets in order to collect contractual cash flows. Sales that take place from these portfolios relate to credit events. Loans from portfolios might be sold to debt collector agencies when underlying debtors have defaulted on their obligations. When, and only when, an entity changes its business model for managing financial assets it shall reclassify all affected financial assets. No financial liability reclassifications take place. SPPI test As a second step of its classification process the Group assesses, where relevant, the contractual terms of the financial assets to identify whether they meet the SPPI test. Financial assets subject to SPPI testing are loans and advances to customers and loans to related parties that solely include payments of principal and interest. ‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are repayments of principal or amortization of the premium/discount). The most significant elements of interest within a lending arrangement are typically the consideration for the time value of money and credit risk. In assessing whether the contractual cash flows are SPPI, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making the assessment, the Group principally considers: - contingent events that would change the amount and timing of cash flows; - prepayment and extension terms; and - terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse loans). In general, the loan contracts stipulate that in case of default and collateral repossession the claim is not limited to the collateral repossession and if the collateral value does not cover the remaining debt, additional resources can still be claimed from the borrower to compensate for credit risk losses. Accordingly, this aspect does not create obstacles to passing SPPI test. However, in some cases, loans made by the Group that are secured by collateral of the borrower limit the Group’s claim to cash flows of the underlying collateral (non-recourse loans). The group applies judgment in assessing whether the non-recourse loans meet the SPPI criterion. The Group typically considers the following information when making this judgement: - whether the contractual arrangement specifically defines the amounts and dates of the cash payments of the loan; - the fair value of the collateral relative to the amount of the underlying loan; - the ability and willingness of the borrower to make contractual payments, notwithstanding a decline in the value of collateral; - the Group’s risk of loss on the asset relative to a full-recourse loan; and - whether the Group will benefit from any upside from the underlying assets. According to the judgement made the non-recourse loans that are secured by collateral of the borrower meet the SPPI criterion. Embedded derivatives The Group has certain call and put option agreements that can accelerate repayment of the issued bonds. These options arise out of bond (host contract) prospectus and individual agreements with certain bondholders and meet the definition of an embedded derivative in accordance with IFRS 9. An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided that, in the case of a non-financial variable, it is not specific to a party to the contract. A derivative that is attached to a financial instrument, but is contractually transferable independently of that instrument, or has a different counterparty from that instrument, is not an embedded derivative, but a separate financial instrument. The Group accounts for an embedded derivative separately from the host contract when: - the host contract is not an asset in the scope of IFRS 9; - the host contract is not itself carried at FVPL; - the terms of the embedded derivative would meet the definition of a derivative if they were contained in a separate contract; and - the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract. Separated embedded derivatives are measured at fair value, with all changes in fair value recognised in profit or loss (unless they form part of a qualifying cash flow or net investment hedging relationship) and presented in the statement of financial position together with the host contract. The Group has derivatives embedded in financial liabilities and non-financial host contracts, see further information under 'Separation of embedded derivatives from the host contract' (Note 3). Financial assets are classified based on the business model and SPPI assessments as outlined above. Please refer to Note 3 for further discussion on embedded derivative details and considerations of separability. The Group also has receivables recognized at fair value due to them containing a derivative element. When measuring the fair value of an asset, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques. Reclassification of financial assets The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances in which the Group acquires, disposes of, or terminates a business line and changes its business model for managing financial assets. Financial liabilities are never reclassified. The Group did not reclassify any of its financial assets or liabilities in 2024 nor 2023. 2. Material accounting policy information (continued) Derecognition of financial assets Derecognition provisions below apply to all financial assets measured at amortized cost. Derecognition due to substantial modification of terms and conditions The Group derecognizes a loan to a customer when the terms and conditions have been renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognized as a derecognition gain or loss, to the extent that an impairment loss has not already been recorded. The newly recognized loans are classified as Stage 1 for ECL measurement purposes, unless the new financial asset is deemed to be purchased or originated credit impaired (POCI). When assessing whether or not to derecognize a financial asset, the Group evaluates whether the cash flows of the modified asset are substantially different and the Group considers the following qualitative factors: - Change in currency of the loan - Change in counterparty - If the modification is such that the instrument would no longer meet the SPPI criterion for financial asset - Whether legal obligations have been extinguished. - Furthermore, for loans to customers the Group specifically considers the purpose of the modification for increase in loan principal. It is evaluated whether modification was entered into for commercial reasons upon customer initiative or for credit restructuring reasons. Management has performed analysis of the changes being made due to business reasons and evaluated that changes due to business reasons result in substantial modification of terms and conditions. This is in line with the objective of this modification that is to originate a new asset with substantially different present value of expected cash flows. If the customer was not in delay, and the principal was increase on a mutual agreement, the respective modification is considered to occur for a commercial reasons and results in derecognition of the initial loan receivable. Other modifications to the agreement terms are treated as modifications that do not result in derecognition (see section on Modifications below). Derecognition other than for substantial modification A financial asset is derecognized when the rights to receive cash flows from the financial asset have expired. The Group also derecognizes the financial asset if it has both transferred the financial asset and the transfer qualifies for derecognition. The Group has transferred the financial asset if the Group has transferred its contractual rights to receive cash flows from the financial asset. The Group has transferred the asset if, and only if, either: - The Group has transferred its contractual rights to receive cash flows from the asset or - It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement. Pass-through arrangements are transactions when Group retains the contractual rights to receive the cash flows of a financial asset (the 'original asset'), but assumes a contractual obligation to pay those cash flows to one or more entities (the 'eventual recipients'), when all of the following three conditions are met: - Group has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short-term advances by the entity with the right of full recovery of the amount lent plus accrued interest at market rates; - Group cannot sell or pledge the original asset other than as security to the eventual recipients for the obligation to pay them cash flows; - Group has to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the Group is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents during the short settlement period from the collection date to the date of required remittance to the eventual recipients, and interest earned on such investments is passed to the eventual recipients. A transfer only qualifies for derecognition if either: - The Group has transferred substantially all the risks and rewards of the asset, or - The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Modifications The Group sometimes makes modifications to the original terms of loans a response to the borrower’s financial difficulties, rather than taking possession or to otherwise enforce collection of collateral. The Group considers a loan restructured when such modifications are provided as a result of the borrower’s present or expected financial difficulties and the Group would not have agreed to them if the borrower had been financially healthy. Indicators of financial difficulties include default or DPDs prior to the modifications. Such modifications may involve extending the payment arrangements and the agreement of new loan conditions. If the modification does not result in cash flows that are substantially different, as set out in the preceding section, the modification does not result in derecognition. Based on the change in cash flows discounted at the original EIR, the Group records a modification gain or loss in interest revenue/expenses calculated using the effective interest method (Note 4, 5) in the consolidated statements of profit and loss, to the extent that an impairment loss has not already been recorded (Note 7). Further information on modified financial assets is disclosed in the following section on impairment. Further, as described in section on 'Derecognition due to substantial modification of terms and conditions' if modification is performed for commercial reasons, then it is considered to result in derecognition of the initial loan receivable. Such modifications include increase in the loan amount and increase in loan term, which are agreed upon with customers for commercial reasons (i.e.-, customers and the Group are both interested in substantially modifying the scope of the loan transaction). Whenever such an agreement to modify is reached the old agreement and respective receivable is derecognized. Treatment of non-substantial modifications If expectations of fixed rate financial assets’ cash flows (such assets present core part of Group' s financial asset base) are revised for reasons other than credit risk, then changes to future contractual cash flows are discounted at the original EIR with a consequential adjustment to the carrying amount. The difference from the previous carrying amount is booked as a positive or negative adjustment to the carrying amount of the financial asset on the consolidated statement of financial position with a corresponding increase or decrease in Interest revenue/expense calculated using the effective interest method. The carrying amount of the financial asset or financial liability is adjusted if the Group revises its estimates of payments or receipts. If modification of a financial asset or liability measured at amortized cost does not result in the derecognition a modification gain/loss is calculated. The adjusted carrying amount is calculated based on the revised effective interest rate and the change in carrying amount is recorded as interest income or expense. Changes in the contractual cash flows of the asset are recognized in statement of profit and loss and any costs or fees incurred adjust the carrying amount of the modified financial asset and are amortized over the remaining term of the modified instrument. Therefore, the original EIR determined at initial recognition is revised on modification to reflect any costs or fees incurred. 2. Material accounting policy information (continued) Overview of the expected credit loss principles The Group recognizes the allowance for expected credit losses for all loans and other debt financial assets not held at FVPL. In this section all referred to as ‘financial instruments’. If there has been no significant increase in credit risk since origination, the ECL allowance is based on the 12 months’ expected credit loss (12mECL) as outlined in below. If there has been a significant increase in credit risk since initial recognition, the ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL). The Group’s policies for determining if there has been a significant increase in credit risk are set out in below. The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date. Both LTECLs and 12mECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments. The Group has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. This is further explained in section on Significant increase in credit risk (Note 3). Impairment of loans and advances to customers Defining credit rating The Group’s core business assets - loans and advances to customers - are of retail nature, they are therefore grouped per countries and products for a collective ECL calculation that is modelled based on DPD (days past due) classification. Specifically, the Group analyzes its portfolio of loans and advances to customers by segregating receivables in categories according to: country, product group, days past due and presence of underlying collateral (for secured products). Secured loans (more specifically vehicle secured loans) are combined together due to similar nature of the products. The Group continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a portfolio of instruments is subject to 12m ECL or LTECL, the Group assesses whether there has been a significant increase in credit risk since initial recognition. When estimating ECLs on a collective basis for a group of similar assets, the Group applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition across the portfolios within the country based on product type - secured or unsecured product. The Group segregates loans and advances to customers in the following categories: Secured loans (mature countries): 1) Not past due 2) Days past due up to 30 days 3) Days past due 31 up to 60 days 4) Days past due over 60 days 5) unsecured (general definition: days past due over 90 or collateral is not available, i.e. lost or sold). * - Matured countries - Operations in Latvia, Estonia, Lithuania, Georgia, Armenia, Romania, Moldova. Operations in these countries are the longest, with the smoothest processes, therefore consistent lending practices in these countries have a long enough track record. Refer to Eleving Vehicle Finance only. Secured loans (non-mature countries): 1) Not past due 2) Days past due up to 25 days (up to 30 days for Africa region) 3) Days past due 26 up to 34 days (31 - 34 days for Africa region) 4) Days past due over 35 days 5) unsecured (general definition: days past due over 90 or collateral is not available, i.e. lost or sold). * - Non-matured countries - Operations in Kenya, Uganda and Uzbekistan. Refer to Eleving Vehicle Finance only. Loans and advances to customers (unsecured loans, refer to Eleving Vehicle Finance only): 1) Not past due 2) Days past due up to 30 days 3) Days past due 31 up to 60 days 4) Days past due over 60 days Loans and advances to customers (unsecured loans, acquired businesses): 1) Not past due 2) Days past due up to 30 days 3) Days past due 31 up to 60 days 4) Days past due 61 up to 90 days 5) Days past due over 90 days * - Businesses acquired during 2020 and 2023 - the term refers to unsecured consumer lending companies acquired in 2020 and 2023; acquired companies operate in Moldova, Ukraine, North Macedonia, Albania, Namibia, Botswana, Zambia and Lesotho. Term is introduced to distinguish unsecured consumer lending operations in these countries from Eleving greenfield investments into unsecured consumer lending operations in Latvia, Estonia, Armenia and Lithuania as there are differences in product set up and processes. 2. Material accounting policy information (continued) Before the acquisition of consumer unsecured portfolios, the Group made due diligence on the impairment of respective portfolios. It was concluded that applied methodology is inline with the IFRS9 standard, it is well aligned with debt collections and other critical business processes and it is quite prudent. Although methodology differed from the one applied for Mogo unsecured portfolios it was decided to keep the applied methodology. Based on the above process, the Group groups its loans into Stage 1, Stage 2, and Stage 3, as described below: The Group defines staging predominantly based on DPD and aligns it with the debt collections processes. For more accurate ECL assessment, split by stages is enhanced by healing bucket concept to reflect on cases when DPD is not a sufficient indicator of credit risk. This is applicable to car loans (unsecured consumer loan where clients borrow a sum of money in order to purchase a car). The Group’s experience in lending suggests that DPD is a strong predictor of a credit default, thus DPD is the main quantitative factor for the backstop identification for Stage 2. Data from the Groups active vehicle operations (active 3+ years) shows that probability to reach default status over the next 12 months horizon is quite low for accounts which have 0 DPD and merely low for accounts with delay up to 30 DPD. Respective probabilities are higher for immature markets due to very strict default definition at 35 DPD. Additionally, debt collection process is structured in such way that the Group actively works with delaying clients at least 30 days. Recovery results show ~90% cure rate within 30 days for regular invoices. However, accounts with DPD 30 and more demonstrate probability to default within the next 12 months above 50% and thus based on the Group’s management judgement clearly have signs of SICR. The Group applies the rule that not more than 30 DPD should trigger backstop and transfer to Stage 2. It is set 30 DPD for matured countries loans portfolios, for African countries loan portfolios and consumer loan portfolios. For the sake of alignment with default definition for immature countries loan portfolios backstop is 25 DPD. Additionally, to reflect on significant increase in credit risk (SICR) in the case when DPD is not a sufficient indicator the Group have introduced Healing state. Healing state concept is applied for car loans, and it is applied in the case of: - Loan contract recoveries during middle DC stage - after 30 delay days for matured counties and after 26 delay days for immature (2 months period from reporting date is observed). - Loan contract delaying 26-30 days for immature countries. - Loan contract renewal after termination or theoretical renewal (returning to active portfolio without terminating the agreement) after default (including countries without termination functionality). In these cases, 2 months period from reporting date is observed. - Only for immature Africa’s countries - restructurings due to credit reasons. In 2021 year, the Group decided to supplement healing bucket definition for Africa’s countries as a reaction on massive usage of such amendments as an effective DC tool. At current stage the Group cannot evaluate increase in credit risk for such cases due to insufficient history, therefor uses more prudent approach for balance staging. In such cases the exposures are included in Stage 2 for a period of two months. Afterwards SICR related to the event is settled and exposure is allocated to the stage based on DPD. - Stage 1: When loans are first recognized, the Group recognizes an allowance based on 12mECLs. The Group considers loans that are current or with DPD up to 30 (up to 25 DPD in non-mature countries) as Stage 1. A healing period of 2 months is applied before an exposure previously classified as Stage 2 can be transferred to Stage 1 and such an exposure must meet the general Stage 1 DPD criteria above. Healing period concept is applicable to car loans. Exposures are classified out of Stage 1 if they no longer meet the criteria above. - Stage 2: When a loan has shown a significant increase in credit risk since origination, the Group records an allowance for the LTECLs. The Group generally considers secured loans and car loans that have a status of 31-60 DPD (matured countries) and 26-34 DPD (non-matured countries) to being Stage 2. An unsecured loan is considered Stage 2 if DPD is in the range of 30 to 60 or 30 to 90 days for acquired businesses. Loan exposures remain in Stage 2 for a healing period of 2 months, even if they otherwise would meet Stage 1 criteria above during this period. - Stage 3: Loans considered credit-impaired and at default. The Group records an allowance for the LTECLs. The Group considers a loan agreement, secured loan and car loans agreement defaulted and therefore Stage 3 in all cases when the borrower becomes 61 DPD (matured countries) or 35 DPD (non-matured countries) on its contractual payments or the loan agreement is terminated. The Group considers an unsecured loan agreement defaulted and therefore Stage 3 in all cases when the borrower becomes 91 days past due for acquired businesses on its contractual payments. The difference in default definition for unsecured consumer loan agreements is driven by different business processes, product set up and development history in greenfield and acquired operations. Debt collections practices applied in Latvia, Estonia, Armenia and Lithuania for secured loans were transferred to unsecured operations, thus active in-house debt collections process runs until DPD 60. After that exposure is either sold, or legal execution starts, or settlement process is enabled. Acquired businesses have active in-house debt collections process running until DPD 90. After that exposure is transferred to external agencies for the debt collections. Later it is either sold or legal execution starts. Macroeconomic shocks, geopolitical crisis, and other unpredictable situations: business adoption and reflection in Impairment, impact on SICR. The first years of this decade have heralded a particularly disruptive period in human history. The return to a “new normal” following the COVID-19 pandemic was quickly disrupted by the outbreak of war in Ukraine, ushering in a fresh series of crises in food and energy - triggering problems that decades of progress had sought to solve. Majority of Group Countries returned to “older” risks as inflation, cost-of-living crises, widespread social unrest, geopolitical confrontation which negatively impacted Group’s operations and caused increase in credit risk. In early 2025 also a threat of U.S. imposed import tariffs added uncertainty to the global market. Potential impact of these tariffs are yet to be analised by the Group. Analysing and evaluating Group’s responses to such non-standard situations in past, management decided to keep and maintain introduced during Covid-19 pandemic so-called TDR (temporary debt restructuring) program. Forbearance tools (TDR and restructuring, i.e., change of the original payment schedule) is almost the only feasible solution to reduce financial burden on customers crisis circumstances, thus fact of the forbearance as such does not lead to the recognition of SICR if customer pays according to new terms and later returns to the original schedule or close to it. Following the crisis situation Group’s management might decide to activate TDR program for certain market for defined period (from 3 to 6 months). In mentioned situation - cases where the Group has sound grounds to expect customer to return to the regular discipline not longer than in 12-month time should not be classified as SICR even if customer has been granted forbearance tool. Temporary debt restructuring (TDR) and other forbearance tools: 1. Alternative schedule (AS) - a temporary reduction of monthly payment, typically not more than 50%. Customers use this option for several, e.g. 3-6 months in row. 2. Extension - is a payment holiday for 1 month. Customer pays extension fee (in some cases free extensions are possible) and returns to the original schedule in next 1-3 months. 3. Restructurings - permanent amendment of the schedule (term end increase, monthly payment decrease, interest decrease). TDR is granted upon customer’s request. Customer is on TDR program if he complies with agreed terms (no SICR is recognized). If terms are breached customer returns to the original schedule and his credit risk is assessed as per actual DPD. 2. Material accounting policy information (continued) The calculation of ECLs The Group calculates ECLs based on probability-weighted scenarios to measure the expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive. Key elements of the model are, as follows: - PD The Probability of Default is an estimate of the likelihood of default over a 12 month or lifetime horizon (time horizon depends on ECL type - i.e. 12mECL or LTECL); - the Default distribution vector (DDV) is the estimate of the time to default, more specifically it provides distribution of PD over the course of a 12 month or lifetime horizon; Specifically, how many defaulted loans during 12 months/ lifetime defaulted during 1st, 2nd, 3rd etc. month started from certain moment of time (evaluation starting point); - EAD The Exposure at Default is an estimate of the exposure at a future default date, considering expected changes in the exposure after the reporting date, including repayments, whether scheduled by contract or otherwise; - LGD The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the cash flows due at the moment of default and those that the lender would expect to receive, including from the realization of any collateral and deducting expenses related to cash collections or collateral realization processes. It is usually expressed as a percentage of the defaulted balance; - lifetime period is estimated as average remaining contractual term of respective portfolio. The Group may choose to use actual balance instead of EAD and do not apply DDV for the segments with the elevated credit risk. Significant judgments used for determining PD and LGD are described in Note 3. The Group employs multiplication model across all Stages for the ECL calculation: ECL=EADPDLGD[DDV] Given that DDV is a multidimensional vector (generally 12 or 13 dimensions, but can be shorter if representative historical data is available for s a shorter period ) it is aggregated into one value before multiplication - [DDV]. DDV aggregated value is obtained as follows: - each value of the DDV is multiplied with discount factor; - discount factor is calculated in a regular way (e.g. NPV formula), where discount is calculated on EIR of the portfolio and number of periods corresponds to the dimension of the respective DDV value; - [DDV] is the sum of all respective multiplications of DDV values with respective discount factors. Depending on the Stage the following specifics are applied to the general ECL model: - Stage 1: The 12mECL is calculated. The Group calculates the 12mECL allowance using 12 months (or shorter if lifetime of the product is less than 12 months) PDs and DDV over the 12-month horizon. These 12-month default probabilities are applied to an estimated EAD and multiplied by the expected LGD and discounted by an approximation to the original EIR using DDV, in this way incorporating time to default into model. - Stage 2: When a loan has shown a significant increase in credit risk since origination, the Group records an allowance for the LTECLs. The mechanics are like those explained above, but PDs and DDV are estimated over the lifetime of the instrument. The expected cash shortfalls are discounted by an approximation to the original EIR using DDV. - Stage 3: For loans considered credit-impaired, the Group recognizes the LTECLs for these loans. The method is similar to that for Stage 2 assets, with the PD set at 100%. ECL on restructured and modified loans Some types of modifications performed to customers that serve to renegotiate terms of an agreement that was previously in default result in continued Stage 3 treatment during the one month healing period for mature countries followed by 2 months of healing period in Stage 2. For immature countries due to the nature of the default definition and lack of ability to renew terminated agreements, exposure enters Stage 2 directly. In case of modification for credit reasons prior to default (generally term extension), exposure is moved to Stage 2 for a healing period of 2 months. Write off of unrecoverable debts The Group considers any kind of receivable completely unrecoverable and writes off the receivable from balance sheet entirely if all legal actions have been performed to recover the receivable and the Group has no reasonable expectations of recovering the exposure. Impairment of contract assets and financial assets other than loans and advances to customers Further financial assets where the Group calculates ECL on an individual basis or collective basis are: - Other receivables from customers/contract assets - on collective basis; - Loans and advance payments to related parties - on individual basis; - Trade receivables - on collective basis; - Cash and cash equivalents - on individual basis; - Deposits - on individual basis. Financial assets are aggregated in categories considering the similarities of key risk characteristics and nature of each of these. The Group assesses the impairment for other receivables from customers/contract assets on a collective basis at country level. For the rest of financial assets other than loans and advances to customers the Group calculates ECL on an individual basis. Impairment of other receivables from customers/contract assets During the course of business, the Group may have other type of claims against its customers. In such cases, considering the portfolio features, the ECL methodology of the related loan receivable is mirrored and the ECL mirrors the impairment of the loan receivable. The Group considers other receivables from customers/contract assets that are current or with DPD up to 25 as Stage 1. A healing period of 5 days is applied before an exposure previously classified as Stage 2 can be transferred to Stage 1. The Group generally considers other receivables from customers/contract assets that have a status of 26-34 DPD to be Stage 2 loans. The Group considers financial assets defaulted and therefore Stage 3 in all cases when the borrower becomes 35 DPD. For other receivables and contract assets that are not related to loan portfolio receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The ECL recorded is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Impairment for loans and advance payments to related parties, trade receivables Receivables from related parties inherently are subject to the Group’s credit risk. Therefore, a benchmarked PD and LGD rate - based on Standard & Poor's corporate statistics studies has been applied in determining the ECLs. For related party exposures Stage 2 and lifetime ECL calculation is applied based on 30 day back stop and 90 day back stop is applied to Stage 3 determination. Further qualitative factors evaluated include extension of the payment terms granted, previous arrears in the last 12 months and significant adverse changes in business. Impairment of cash and cash equivalents and deposits For cash and cash equivalents default is considered as soon as balances are not cleared beyond conventional banking settlement timeline, ie., a few days. Therefore, transition is straight from Stage 1 to Stage 3 given the low number of days that it would take the exposure to reach Stage 3 classification, meaning default. For cash and cash equivalents no Stage 2 is applied given that any past due days would result in default. When calculating the impairment for a bank deposit, any loans or other credit facilities granted by the credit institution to the Group is being set off against the deposits if the bank has a contractual right to offset in case of resolution. Hence, the ECL is recognized on the net amount. 2. Material accounting policy information (continued) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL or other financial liabilities that are measured at amortized cost. All financial liabilities are recognized initially at fair value plus, for an item not at FVTPL, directly attributable transaction costs. The Group’s financial liabilities include trade and other payables and loans and borrowings, including funding attracted through peer-to-peer platforms as well as subordinated borrowings. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss A financial liability is classified at FVTPL if it is classified as held for trading, it is a derivative or it is designated as such upon initial recognition. Net gains or losses, including any interest expense, on liabilities held at FVTPL are recognized in the statement of profit and loss. The Group has not designated any financial liability as at fair value through profit or loss. Loans and borrowings This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized; interest expense is recognized through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. This category generally applies to interest-bearing loans and borrowings. Subordinated borrowings The Group recognizes liabilities as subordinated borrowings if it is an unsecured loan or bond that ranks below other, more senior loans or securities, and have lower payment priority than more senior debt. Accordingly, the claims of more senior debt holders must be satisfied before the holders of subordinated debt can be paid. In the case of default, creditors who own subordinated debt will not be paid out until after more senior creditors are paid in full. Borrowings are classified as subordinated only if respective agreements contain dedicated clauses defining the borrowing as subordinated. Modification of financial liabilities For financial liabilities, the Group considers a modification substantial based on qualitative factors and if it results in a difference between the adjusted discounted present value and the original carrying amount of the financial liability of, or greater than, ten percent. If the modification is substantial, then a derecognition gain or loss is recorded on derecognition. If the modification does not result in cash flows that are substantially different the modification does not result in derecognition. Based on the change in cash flows discounted at the original EIR, the Group records a modification gain or loss. Treatment of non-substantial modifications If expectations of fixed rate financial liabilities’ cash flows are revised, then changes to future contractual cash flows are discounted at the original EIR with a consequential adjustment to the carrying amount. The difference from the previous carrying amount is booked as a positive or negative adjustment to the carrying amount of the financial liability on the consolidated statement of financial position with a corresponding increase or decrease in Interest revenue/expense calculated using the effective interest method. The carrying amount of the financial liability is adjusted if the Group revises its estimates of payments or receipts. If modification of a financial liability measured at amortized cost does not result in the derecognition a modification gain/loss is calculated. The adjusted carrying amount is calculated based on the original effective interest rate and the change in carrying amount is recorded as interest income or expense (Note 5). Changes in the contractual cash flows of the asset are recognized in statement of profit and loss and any costs or fees incurred adjust the carrying amount of the modified financial asset or liability and are amortized over the remaining term of the modified instrument. Therefore, the original EIR determined at initial recognition is revised on modification to reflect any costs or fees incurred. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss. The Group considers a modification substantial based on qualitative factors and if it results in a difference between the adjusted discounted present value and the original carrying amount of the financial liability of, or greater than, ten percent. Transactions with peer-to-peer platforms Background Certain subsidiaries, as loan originators, have signed cooperation agreements with operator of a peer-to-peer (P2P) investment internet-based platform. Cooperation agreements and the related assignment agreements are in force until parties agree to terminate. Purpose of the cooperation agreement for the Group is to attract funding through the P2P platform. The P2P platform makes it possible for individual and corporate investors to obtain a fully proportionate interest cash flows and the principal cash flows from debt instruments (loans and advances to customers) issued by the Group in exchange for an upfront payment. These rights are established through assignment agreements between investors and P2P platform, who is acting as an agent on behalf of the Group. Assignment agreements are of two types: 1) Agreements with recourse rights which require the Group to guarantee full repayment of invested funds by the investor in case of default of Group’s customer (buy back guarantee); 2) Agreements without recourse rights which do not require the Group to guarantee repayment of invested funds by the investor in case of default of the customer (no buy back guarantee). The Group retains the legal title to its debt instruments (including payment collection), but transfers a part of equitable title and interest to investors through P2P platform. 2. Material accounting policy information (continued) Receivables and payables from/to P2P platform The P2P platform is acting as an agent in transferring cash flows between the Group and investors. The receivable for attracted funding from investors through the P2P platform corresponds to the due payments from the P2P platform. Receivable is arising from assignments made through P2P platform where the related investment is not yet transferred to the Group (Note 29). P2P platform commissions and service fees incurred by the Group are fees charged by P2P platform for servicing the funding attracted through peer-to-peer platform and are disclosed in Note 9. Funding attracted through peer-to-peer platform Liabilities arising from assignments with or without recourse rights are initially recognized at cost, being the fair value of the consideration received from investors net of issue costs associated with the loan. Liabilities to investors are recognized in statement of financial position caption Funding attracted through peer-to-peer platform (Note 35) and are treated as loans received. After initial recognition the funding attracted through peer-to-peer platform is subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any issue costs, and any discount or premium on settlement. Gains and losses are recognized in the statement of profit and loss as interest income/ expense when the liabilities are derecognized. The Group must repay to the investor the proportionate share of the attracted funding for each debt instrument according to the conditions of the respective individual agreement with the Group’s client, which can be up to 72 months. Assignments with recourse rights (buy back guarantee) Assignments with recourse rights provide for direct recourse to the Group, thus do not meet the requirements to be classified as pass-through arrangement in accordance with IFRS 9. Specifically, neither investors, nor the P2P platform bear any risks in relation to creditworthiness of the Group's borrower. The Group is obliged, on first demand of the P2P platform, to repay all monies due if loan agreement with borrower defaults . Additionally, the Group retains the risks and rewards of ownership of the financial asset. Therefore, the Group’s respective debt instruments do not qualify to be considered for partial derecognition and interest expense paid to investors is shown in gross amount under Interest expense calculated using effective interest method (Note 5). Assignments without recourse rights (no buy back guarantee) On the contrary, assignments without recourse rights (the Group is not obliged to reimburse neither to investors nor to P2P platform if the borrower defaults) are arrangements that transfer to investors substantially all the risks and rewards of ownership equal to a fully proportionate share of the cash flows to be received from Group’s debt instruments. Therefore such arrangements are classified as pass-through arrangements in accordance with IFRS 9. As such, a fully proportionate share, equal to investor’s claim in relation to the related debt instrument, is derecognized. The derecognized part is accounted as an off-balance sheet item (Note 35) and interest income is recognized to the extent of being the residual interest. Residual interest is the difference between the interest earned on the respective debt instrument by the Group and the respective share of interest earned by the investor. Equity - accounted investees The Group interests in equity-accounted investees comprise investment in associate. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Interests in associates are accounted for using the equity method. They are initially recognized as cost, which includes transaction costs. As the Group gained significant influence over its associate after losing control over the investee, the deemed cost is the fair value of the interest retained subsequent to the loss of control. Subsequent to initial recognition, the consolidated financial statements include the Group's share of the profit or loss and other comprehensive income of the associate, until the date on which significant influence ceases. Unrealised gain arising from transactions with associate are eliminated against the investments to the extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Group as a Lessee Lease liability Initial recognition At the commencement date of the lease the Group measures the lease liability at the present value of the lease payments that are not paid at that date in accordance with lease term. Lease payments included in the measurement of the lease liability comprise: - fixed payments (including in-substance fixed payments), less any lease incentives receivable; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - amounts expected to be payable by the Group under residual value guarantees; - the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and - payments of penalties for terminating the lease, if the lease term reflects the Group exercising an option to terminate the lease. The Group has elected for all classes of underlying assets not to separate non-lease components from lease components in lease payments. Instead Group accounts for each lease component and any associated non-lease components as a single lease component. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the incremental borrowing rate. Lease term is the non-cancellable period for which the Group has the right to use an underlying asset, together with both: (a) Periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and (b) Periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. At the commencement date, the Group assesses whether it is reasonably certain to exercise an option to extend the lease or to purchase the underlying asset, or not to exercise an option to terminate the lease. Subsequent measurement After the commencement date, the Group measures the lease liability by: - increasing the carrying amount to reflect interest on the lease liability; - reducing the carrying amount to reflect the lease payments made; and - remeasuring the carrying amount to reflect any reassessment or lease modifications specified, or to reflect revised in-substance fixed lease payments. 2. Material accounting policy information (continued) Right-of-use assets Initial recognition At the commencement date of the lease, the Group recognizes right-of-use asset at cost. The cost of a right-of-use asset comprises: - the amount of the initial measurement of the lease liability; - any lease payments made at or before the commencement date, less any lease incentives received; - any initial direct costs incurred by the Group; and - an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are to produce inventories. Subsequent measurement Group measures the right-of-use asset at cost, less any accumulated depreciation and accumulated impairment losses; and adjusted for the remeasurement of the lease liability (which may take place when there is a change in future lease payments arising from a change in an index or rate, when there is change in estimated amounts payable under residual value guarantee or there is a change of assessment of extension, purchase or termination option) . Depreciation of the right-of-use asset is recognized on a straight-line basis in profit or loss. If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Group involvement with the underlying asset before the commencement date If a Group incurs costs relating to the construction or design of an underlying asset, the lessee accounts for those costs applying other IFRS, such as IAS 16. Costs relating to the construction or design of an underlying asset do not include payments made by the lessee for the right to use the underlying asset. Group applies IAS 36 to determine whether the right-of-use asset is impaired and to account for any impairment loss identified. Initial recognition exemptions applied As a recognition exemption the Group elects not to apply the recognition requirements of right-of-use asset and lease liability to: (a) Short term leases - for all classes of underlying assets; and (b) Leases of low-value assets - on a lease-by-lease basis. For leases qualifying as short-term leases and/or leases of low-value assets, the Group does not recognize a lease liability or right-of-use asset. The Group recognizes the lease payments associated with those leases as an expense on either a straight-line basis over the lease term. (a) Short term leases A short-term lease is a lease that, at the commencement date, has a lease term of 3 months or less. A lease that contains a purchase option is not a short-term lease. This lease exemption is applied for all classes of underlying assets. (b) Leases of low-value assets The Group defines a low-value asset as one that: 1) has a value, when new of 5 000 EUR or less. Group assesses the value of an underlying asset based on the value of the asset when it is new, regardless of the age of the asset being leased. 2) the Group can benefit from use of the assets on its own, or together with, other resources that are readily available to the Group; and 3) the underlying asset is not dependent on, or highly interrelated with, other assets. Inventories Inventories are valued at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories in the ordinary course of business less estimated costs necessary to make the sale. Inventories contain only vehicles which are purchased for the sole purpose of selling them to customers. Value of inventories is measured by using specific identification of individual unit cost. Disposal of each individual stock item is performed on sale of respective individual stock item. Accrued revenue or expenses from currency trading The Group recognizes accrued income or expenses from transactions of trading currency based on currency rates agreed for each currency hedging transaction. The difference between hedging rate and currency rate at year end is recognized as accrued income or expenses depending from mathematical result. Non-Deliverable Forward Hedge contracts Foreign exchange risk arises when individual group operations enter into transactions denominated in a currency other than their functional currency. Where the risk to the Group is considered to be significant, Group treasury enters into a matching Non-Deliverable Forward Hedge contract with a reputable financial institution. "Matching" refers to the practice of aligning the terms of the hedge contract (such as the amount, maturity, and timing) with the anticipated foreign currency exposure of the underlying transaction or cash flow. This ensures that the hedge effectively mitigates the risk by directly offsetting the fluctuations in exchange rates that could impact the Group's financial position. Non-Deliverable Forward hedge contracts will mature at various dates within the next 12 months. As of 31 December 2024, gains and losses from open contracts are recognized in the Consolidated Statement of Profit and Loss, while financial receivables and liabilities related to open Non-Deliverable Forward hedge contracts at year-end, with settlement dates within the next 12 months, are recognized in the Consolidated Statement of Financial Position. The total result consists of a variable component and a fixed cost component for the period ending 31 December 2024. For each transaction, the variable component is determined by applying the agreed strike currency rate and the currency rate as of 31 December 2024. The total fixed cost component is determined based on the difference between the agreed strike currency rate and the currency rate as of the transaction’s execution date. Assets held for sale The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale includes vehicles which are obtained by enforcement of repossession in case clients default on existing loan agreements. Such repossessed collaterals are classified as held for sale and measured at the lower of their carrying amount and fair value less costs to sell (FVLCTS). Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense. Once classified as held-for-sale, vehicles are no longer depreciated. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification. Assets classified as held for sale are presented separately as current items in the statement of financial position. 2. Material accounting policy information (continued) Share premium Share premium represents the amount subscribed for share capital in excess of nominal value deducted by expense incurred during IPO process. Treasury shares Treasury shares represent the Group’s own equity instruments that have been reacquired but not canceled. These shares are recorded as a deduction from equity at the cost of acquisition, with no recognition of gain or loss in profit or loss on subsequent sale, reissuance, or cancellation. Any consideration received from the sale or reissuance of treasury shares is recognized directly in equity. Treasury shares do not carry voting rights or entitlement to dividends while held by the Group. The Group presents treasury shares separately within equity in the statement of financial position. Reserves Luxembourg companies are required to allocate to a legal reserve a minimum of 5% of its annual net profit until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed. Lithuania companies are required to allocate to a legal reserve a minimum of 10% of its annual net profit until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed. Moldavian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 10% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital. Macedonian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 10% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital. Reserve may be increased above 5% in order to meet capital adequacy ratio. Romanian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 20% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital. Foreign currency translation reserve is used to record exchange differences arising from the translation of assets and liabilities of foreign operations. Provisions In accordance with IAS 37, provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of provisions to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as finance cost. Contingent assets and contingent liabilities Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognized in the financial statements but disclosed when an inflow of economic benefits is probable. Share-based payments The Group may grant share options of Subsidiaries to its employees. Share options are generally awarded on the first day of employment. A share-based payment is primarily a payment in equity instruments of the entity. Under certain circumstances there are cash settlement alternatives which are subject to cash settlement events occurring or entity’s choice in certain scenarios. Given absence of an ongoing sale of subsidiaries or Eleving Group S.A. and any other relevant cash settlement events, the cash settlement is considered not to be probable. The Group does not have a present obligation to settle in cash, therefore awards are classified as equity settled. The Group does not have a past practice of cash settlement for these awards. Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit and loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. 2. Material accounting policy information (continued) Income and expenses Expenses are recognized as incurred. Expenses are recognized net of the amount of value added tax. In certain situations value added tax incurred on a services received or calculated in accordance with legislation requirements is not recoverable in full from the taxation authority. In such cases value added tax is recognized as part of the related expense item as applicable. The same principles is applied if value added tax is not recoverable on acquisition an asset. Revenue is recognized in accordance with the related standard’s requirements and to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The effective interest rate method For all financial instruments measured at amortized cost interest income or expense is recorded at the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the net carrying amount of the financial asset or financial liability. The calculation takes into account all contractual terms of the financial instrument and includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses. When a financial asset becomes credit-impaired and is regarded as ‘Stage 3’, the Group stops calculating interest. If the financial asset cures and is no longer credit-impaired, the Group reverts to calculating interest income on a gross basis. Income from cession of bad debt Gain or loss from sale of doubtful loans and advances to customers is presented on net basis under ” Net loss from de-recognition of financial assets measured at amortized cost”. Gains or losses arising on cession deals are recognized in the statement of profit and loss at transaction date as the difference between the proceeds received and the carrying amount of derecognized loan receivables assigned through cession agreements. Expenses related to attracting funding Expenses related to attracting funding consists of administration fee for using peer-to-peer platform. Expenses are charged monthly and recognized in Group's statement of profit and loss when they occur. Revenues and expenses from contracts with customers Revenue from contracts with customers in scope of IFRS 15 encompasses sold goods or services provided as output of the Group’s ordinary activities. The Group uses the following criteria to identify contracts with customers: - the parties in the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations; - can be identified each party’s rights regarding the goods or services to be transferred; - can be identified the payment terms for the goods or services to be transferred; - the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); - it is probable that the Group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Performance obligations are promises in the contracts (either explicitly stated or implied) with Group’s customers to transfer to the customers distinct goods or services. Promised goods or services represent separate performance obligations if the goods or services are distinct. A promised good or service is considered distinct if the customer can benefit from the good or service on its own or with other readily available resources (i.e. distinct individually) and the good or service is separately identifiable from other promises in the contract (distinct within the context of the contract). Both of these criteria must be met to conclude that the good or service is distinct. The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price for the sale of equipment, the Group considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any). The Group recognizes revenue when (or as) it satisfies a performance obligation to transfer a promised good or service to a customer. Revenue is recognized when customer obtains control of the respective good or service. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue from satisfied performance obligations is recognized over time, if one of the following criteria is met: - customer simultaneously receives and consumes the benefits; - customer controls the asset as it is created or enhanced; - the Group’s performance creates an asset and has a right to payment for performance completed. Payment terms for goods or services transferred to customers according to contract terms are within 45 to 60 days from the provision of services or sale of goods. The transaction price is generally determined by the contractually agreed conditions. Invoices typically are issued after the goods have been sold or service provided. Key revenue streams the Group generates relate to provision of goods or services provided directly to end customer with no third party service/product provider involved. In such transactions the Group acts as a principal. However, for certain services, where other parties are involved, as described below, the Group performs assessment whether it acts as an agent or a principal. Such revenue streams include income from debt collection activities, income from providing registration services and income from agency services as described below. When another party is involved in providing goods or services to the Group's customers, the Group considers that it is a principal, if it obtains control of any one of the following: a) a good or another asset from the other party that it then transfers to the customer; b) a right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity's behalf - relevant for car registration income to conclude on principal presentation; c) a good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer - relevant for debt collection income to conclude on agent presentation. 2. Material accounting policy information (continued) Fee and commission income (Note 6) Income from debt collection activities and earned penalties (point in time) Fee and commission income arises from contracts with customers. Accordingly, it results in a recognized financial instrument in the Group's financial statements that is partially in scope of IFRS 9 and partially in scope of IFRS 15. Therefore, the Group first applies IFRS 9 to separate and measure the part of the contract that is in the scope of IFRS 9 and then applies IFRS 15 to the residual. Income from debt collection activities and penalties is recognized in Group's statement of profit and loss at the moment when the likelihood of consideration being settled for such services is high, therefore income is recognized only when actual payment for provided services is actually received. Income from penalties arise in case customers breach the contractual terms of loans and advances to customers agreements, such as exceeding the payment date. In those situations Group is entitled to charge the customers in accordance with the agreement terms. The Group recognizes income from penalties at the moment of cash receipt as likelihood and timing of settlement is uncertain. In case customers do not settle the penalty amount, the Group is entitled to enforce repossession of the collateral. Debt collection activities revenue typically arises when customers delay the payments due. As a lessor, the Group has protective rights in the loan agreements with customers that require the customers to safeguard and maintain the condition of the vehicle, as it serves as a collateral to the loan. Group’s revenue encompasses a compensation of internal and external costs incurred by the Group in relation to debt management, legal fees as well as repossession of vehicle in case of loan agreement termination and are recharged to the customers in accordance with the agreement terms. The performance obligation is satisfied when respective service has been provided. Income from commissions (point in time) Income from commissions arises from additional services provided by the Group to its customers. Main additional source of income from commissions is from premature termination of contracts by the initiative from a customer. Income is recognized at the moment of cash receipt as likelihood and timing of settlement is uncertain. The performance obligation is satisfied when respective service has been provided. Income from providing registration services (point in time) In certain countries, the Group provides vehicle registration services to its customers. The Group organizes the registration of the vehicles with the state authorities on behalf of the customer, which is a separate service provided by the Group. Typically these services are performed before customers enter the loan agreements. Income from providing these services is recognized at the moment of providing the services. In majority of countries such services are not provided by the Group, as the customers perform registration procedures themselves and costs are covered by the customers directly without the need for such services from the Group. The performance obligation is satisfied when the respective service has been provided. Revenue from car sales and other goods (Note 11) Sale of motor vehicles and other goods (point in time) The Group earns part of its revenues from the sales of used vehicles that were either bought from third parties or repossessed from its non-performing leasing customers . The Group is calculating minimum sales price based on initial cost or value after repossession plus additional cost incurred (e.g. repairs) and a margin added in order to make profit from the deal. The performance obligation is satisfied when the car is registered on client’s name. Similarly the Group is selling mobile phones in Africa region. Other operating income (Note 14) Income from management services (over time) The Group provides management services to its related parties. Income is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for providing these services. The performance obligation is satisfied as the respective service is being provided. Revenue from agency services (point in time) Agency services consist of different services, such as settlement of costs on behalf of 3rd parties and recharging those costs to customers. The Group is acting as an agent in provision of these services to the customers. Such services are provided with the intention to realize the economies of scale of purchasing power for a service that is both used by the Group and the 3rd party. The Group recognises revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified services to be provided by the other party. The performance obligation is satisfied when the respective service has been provided. Variable consideration revenue from client acquisition (point in time) The Group has entered into a contract with JSC Primero Finance on providing commercial client acquisition services with the variable component of the contract on 26 September, 2019. The fee is paid on all concluded agreements with clients. The fee consists of two elements - fixed and variable. Fixed fee is set as % from total loan amount and is invoiced every month based on concluded agreement list for previous month. Variable fee part is an additional fee and is set as percentage dependant on the specific annual percentage rate (APR) threshold for each individual concluded agreement. The fixed and variable part of client acquisition fee is calculated and invoiced monthly. The revenue from the fixed part of the fee is recognized at point in time as the corresponding performance obligations are satisfied, and there is no significant judgement applied to determine the transaction price or the satisfaction of the performance obligations. The additional client acquisition fee is determined to be a variable consideration as it is based on the individual APR of each concluded agreement. In the case of loan defaults, the parties agreed to measure the default loss. In the cases when not all outstanding debt has been covered after the collateral sale, the Group returns part (proportional to the uncovered debt) of the additional fee, which has been invoiced to JSC Primero Finance. Contract balances Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration. As at 31 December 2024 the Group did not have any contract assets in its consolidated statement of financial position. Trade receivables A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). These receivables are disclosed in balance sheet caption 'Trade receivables' (Note 28). Trade receivables are non-interest bearing and are generally on terms of 30 to 120 days. Accounting policies applicable to financial assets measured using amortized cost are applicable as described above in Note 2. Contract liabilities A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are extinguished and revenue is recognized when the Group performs under the contract. As at 31 December 2024 the Group does not have any contract liabilities in its consolidated statement of financial position. 2. Material accounting policy information (continued) Income taxes Income taxes include current and deferred taxes. Income taxes are recognized in profit and loss except to the extent that they are related to a business combination, or items recognized directly in equity or other comprehensive income. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates enacted or substantively enacted at the reporting date in the countries where the Group and the Parent Company operates. Current corporate income tax rate for the Parent company is applied at the statutory rate of 24.94%. Current corporate income tax rates for the foreign subsidiaries are: Country Tax rate Country Tax rate Estonia 20% Moldova 12% Latvia 20% Albania 15% Lithuania 15% Ukraine 18% Georgia 20% Uzbekistan 7.5% Romania 16% North Macedonia 10% Kenya 30% Lesotho 25% Uganda 30% Namibia 32% Botswana 22% Mauritius 15% Zambia 30% * - as described further below corporate income tax in these countries is paid on distributed profits and deemed profit distributions only. Deferred tax assets and liabilities Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of transaction affects neither accounting nor taxable profit / loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. In Latvia, Estonia and Georgia deferred tax assets and liabilities are not recognized starting from 2017 or before in accordance with local legislation. Accordingly, deferred tax assets and liabilities which were calculated and recognized previously have been reversed through the statement of profit and loss and other comprehensive income in the year when the legislation was amended (for Latvia: 2017). In Latvia legal entities are not required to pay income tax on earned profits starting from 1 January 2018 in accordance with amendments made to the Corporate Income Tax Law of the Republic of Latvia. Corporate income tax is paid on distributed profits and deemed profit distributions. Consequently, current and deferred tax assets and liabilities are measured at the tax rate applicable to undistributed profits. Starting from 1 January 2018, both distributed profits and deemed profit distributions are subject to the tax rate of 20 per cent of their gross amount, or 20/80 of net expense. Corporate income tax on dividends is recognized in the statement of profit and loss and other comprehensive income as expense in the reporting period when respective dividends are declared, while, as regards to other deemed profit items, at the time when expense is incurred in the reporting year. Similar accounting policies are adopted in Estonia and Georgia. Related parties The parties are considered related when one party has a possibility to control the other one or has significant influence over the other party in making financial and operating decisions. Related parties of the Group are shareholders who could control or who have significant influence over the Group in accepting operating business decisions, key management personnel of the Group including members of Supervisory body - Audit committee and close family members of any above-mentioned persons, as well as entities over which those persons have a control or significant influence. The Group has defined that a person or a close member of that person’s family is related to a reporting entity if that person: - has control or joint control of the reporting entity; - has significant influence over the reporting entity; or - is a member of the key management personnel of the reporting entity or of a parent of the reporting entity. An entity is related to a reporting entity if any of the following conditions applies: - The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); - One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); - Both entities are joint ventures of the same third party; - One entity is a joint venture of a third entity and the other entity is an associate of the third entity; - The entity is a post‑employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity; - The entity is controlled or jointly controlled by a person identified in (a); - A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); - The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity. A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Non-controlling interest Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not owned, directly or indirectly, by the Group. Non-controlling interest forms a separate component of the Group’s equity. Non-controlling interest are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Dividend distribution Dividend distribution to the shareholders of the Group is recognized as a liability and as distribution of retained earnings in the financial statements in the period in which the dividends are approved by the shareholders as the Group has the obligations to pay the dividend which cannot be withdrawn. 2. Material accounting policy information (continued) Subsequent events Post-period-end events that provide additional information about the Group’s position at the statement of financial position date (adjusting events) are reflected in the consolidated financial statements. Post-period-end events that are not adjusting events are disclosed in the notes when material. 3. Critical accounting estimates and judgements The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosure of contingencies. The most significant areas of estimation and judgement used in the preparation of the consolidated financial statements include assumptions used in Goodwill and other non-financial asset impairment tests, Impairment of financial assets, Determination of fair values and judgements around Going concern and military conflict in Ukraine impact assessment. They are described below among other estimates and judgements used in the preparation of these consolidated financial statements. Although these estimates and conclusions are based on the management’s best knowledge of current events and actions, the actual results may ultimately differ from those estimates. Principal versus agent assessment In provision of agency services (Note 14) the Group has assessed that it does not obtain control of these services before they are transferred to customers, as these services or goods are acquired on their behalf. Therefore, it is considered agent in these transactions. The Group is also acting as an agent in purchasing specific goods and services from 3rd parties on behalf of customers - mainly legal, recruitment and similar services, as it does not obtain control of the service, does not incur inventory risk nor has discretion in determining the sales price. For all other revenue streams the Group concluded that it acts as a principal. Other revenue streams where the Group involves third parties in the provision of services include income from debt collection activities (Group acts as an agent as it does not control the service before it is provided to the customer) and income from car registration services (Group acts as a principal as it controls the asset being registered for the prospective customer). Goodwill and other non-financial asset impairment tests The calculation of value in use for cash generating units among other is sensitive to the assumptions of discount rate and growth rates. These assumptions and their sensitivity are outlined in Note 20. Determination of the FVLCTS of assets held for sale Determination of the FVLCTS for repossessed vehicles is performed on an individual basis at the moment of the repossession. Management's estimate is based on available data from historical sales transactions for such assets in previous reporting periods. The Group also considers factors such as historical actual average loss (if any) from the previous years. Management considers whether also events after the reporting year indicate a decline in the sales prices of such assets. See further information in Note 32. Estimation of the residual value of rental fleet The Group assesses at each reporting date whether there is an indication that the expected residual value of the rental fleet asset at the end of the current rental period may not be recoverable. The residual value is an estimate of the amount that could be received from disposal of the vehicle at the reporting date if the asset were already of the age and in the condition that it will be in when Group expects to dispose of it (i.e. after expiration of the ultimate loan period, if any). Therefore, if any indication exists, in order to determine the recoverable amount for rental fleet assets, the management uses valuation models based on two methods primarily depending from the status of the loan agreement: 1) value in use (VIU) - for assets with active loan agreements; and 2) fair value less costs of disposal (FVLCOD) - for assets with inactive loan agreements. VIU is the present value of the future cash flows expected to be derived from an asset or cash generating unit, both from its continuing use and ultimate disposal. In assessing VIU, the estimated future cash flows are discounted to their present value using WACC. In measuring VIU the Group bases its cash flow projections on reasonable and supportable assumptions that represent management’s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset covering in total 7-year period. For assets with an inactive loan agreement the Group applies probability-weighted scenario in determining the possible future use of vehicles - secondary rent or disposal. The outcome of the probability-weighted scenario has been determined based on the Group’s/Company’s historical data. According to management assessment, the carrying amount of secondary rent assets is expected to be recovered principally through a continuing use of it rather than sale transactions, therefore VIU method has been applied. For assets with an inactive agreement, for which the carrying amount is expected to be recovered principally through disposal, the Group determines the residual value based on FVLCOD method. Assumptions applied for determination of the FVLCOD of assets are based on making a reliable estimate of the price at which a transaction to sell the asset would take place between market participants at the measurement date under current market conditions and on available data from historical sales transactions. The market price is being adjusted for car repair costs, which are estimated based on historical data for an average vehicle repair expenses occurred in 2023. In addition, management considers whether events after the reporting year indicate a decline in the sales prices of such assets. Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash generating unit, excluding finance costs and income tax expense. For assets an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss and other comprehensive income unless the asset is carried at a revaluated amount, in which case the reversal is treated as a revaluation increase. As at 31 December 2024 the Group recognised impairment of rental fleet. Please refer to Note 21. Impairment of financial assets The measurement of impairment losses under IFRS 9 across all categories of financial assets in scope requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different levels of allowances. The Group’s ECL calculations are outputs of complex models with a number of underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models that are considered accounting judgements and estimates include Probability of Default and Loss Given Default, judgment is applied also when determining significant increase in credit risk. 3. Critical accounting estimates and judgements (continued) Impairment of loans and advances to customers The Probability of Default (PD) The Probability of Default is an estimate of the likelihood of default over a given time horizon, where default is defined as: 1. 61 DPD (Secured loans, matured countries) 2. 35 DPD (Secured loans, non-matured countries) 3. 61 DPD Loans and advances to customers (unsecured loans, car loans) 4. 91 DPD Loans and advances to customers (unsecured loans, acquired businesses). In order to estimate PDs the Group utilizes Markov chains methodology. This methodology employs statistical analysis of historical transitions between delinquency buckets to estimate the probability that loan will eventually end up in default state which is set as absorbing state. The Group uses 12-months continuous horizon window (or smaller if actual lifetime of the product is shorter), and estimation over lifetime is defined as nth power of 12-months matrix (n - depends on the estimated lifetime, e.g., if lifetime is 36-months then n=3). Exposures are grouped into buckets of days past due (DPD) loans. Forward-looking macroeconomic indicators model for portfolio Guided by IFRS 9, the Group assesses forward looking information and incorporates it into impairment model. Impairment change is modelled given expected future changes of macroeconomic factors’ (hereinafter macro model). In 2021 the Group changed Hierarchical Bayes model approach to simplified approached based on relation analysis between changes in input variables and changes in PD and the Group expert’s opinion. Macro model uses several assumptions which were agreed by group of experts. Model assumptions and historical periods for macroeconomic factors are reviewed and analyzed once per year considering available macroeconomic outlooks. General description of the model Macro model uses expected changes in macroeconomic indicators and assumes the same or similar change to Stage 1 PD. Model incorporates three macro indicators - unemployment rate, inflation rate and GDP annual growth rate, as more relevant for private individuals’ financial stability evaluation. The model is based on actual and forecasted data points. Recalculated in December 2024 model includes macroeconomic indicators as of 2024 Q4 and average of all four 2025 quarter forecasts to predict the effect on Stage 1 PD. Data points average is taken to avoid significant indicator fluctuations due to forecast volatility. The Group built macroeconomic models for each country and business (vehicle/consumer) individually - LV, LT, EE, GE, AM, UZ, KE, UG, MD, RO, MK, AL, LES, ZM, NM, BOT. Data for all cases is taken from the source: https://tradingeconomics.com/indicators. Forecasts are validated by National Banks forecasts. For each macro indicator three scenarios are obtained - base, best and worse. Base scenario is based on actual data and forecasts. Worse and best scenario is obtained from base scenario increasing or decreasing base scenario by confidence interval of given macro indicator forecast. For each scenario is applied probability of occurring. The impact on PD from each macro indicator is calculated as weighted output across all three scenarios. As for all input macro indicators are applied weights according to their significance to the default rates of the Group customers then the final model output is obtained as sum of weighted output across all macro indicators. Model’s variables and assumptions The model includes indicators which, based on the Group experts’ opinion and used practice in industry, might have a significant impact on finance products default rates. Such indicators are also widely used by banking and non-banking industry across the world: 1. GDP growth 2. unemployment rate (UR) change 3. inflation rate (IR) change. There are several assumptions made in the model to accommodate the Group customer specifics. Assumption 1. UR is one of the main variables in the model, and it significantly affects Stage 1 PD. Assumption 2. Okun’s law holds in macro environment affected by macro-economic shocks. Assumption 3. Typically, reasonably increasing inflation rate positively affects consumption and economy in general, and therefore reduces PD. However, the Groups customers rather suffers from increase in prices than benefit from income increase. Thus, the Group arrived at the assumption 3: increase in inflation in will affect customers negatively. Determination of impact on PD based on macro indicator change The model assumes relation between changes in macro indicators and Stage 1 PD change. If there is strong correlation between Stage 1 PD and macro indicator change then used linear regression equation to determine the impact on PD due to macro indicator changes. If there is no visible correlation between Stage 1 PD and macro indicators change then impact on PD is evaluated based on qualitative analysis of available data and reasonable experts’ assumptions: 1. For each macro indicator chosen 25 data points, one 0 point and another 24 points that reflects indicator change - 12 points with negative change and 12 data points with positive change. The distance between 2 adjacent points is the same for all 24 points and is evaluated considering historical changes in macro indicators. 2. For PD impact determination relational table is built that describes linear or piecewise smooth function and its direction changes at 0 point. At 0 point assumed 0 PD impact. For other macro indicator change points impact on PD is evaluated individually based on historical PD rates and PD change in time, as well taking into account each country and product specifics. Then evaluated PD impacts on each macro indicator change point are summarized in table. This table remains fixed until the next year when impact on PD will be reviewed. 3. Critical accounting estimates and judgements (continued) Weighted scenarios approach To take into account possible economic fluctuations and uncertainty, three scenarios are considered and used for final calculation to arrive at weighted average probability: 1. base case scenario - based on actual data and forecasts by external source. 2. worst case scenario - based on expert judgement of potential worsening of macroeconomic indicators. 3. best case scenario - based on expert judgement of potential improvement of macroeconomic indicators. Worse and best scenario is obtained from base scenario increasing or decreasing base scenario by confidence interval of given historical macro indicators. Confidence intervals are calculated based on last 24 or more macro indicator data points applying confidence level of 99%. How long period is taken is indicated for each country and indicator separately. Each scenario also has a specific probability of occurring, which is configurable for each country separately to account for potential differences in macroeconomic outlooks. Recent global macroeconomic trends in the regions where the company operates suggest a challenging environment for the businesses which specialize in financing solutions. The pandemic's disruptions, supply chain pressures, and energy crises in recent years have fuelled inflation and led to tighter monetary policies, reducing credit affordability and loan demand. In emerging markets, high debt levels and exchange rate volatility continue to pose risks, particularly in regions with weak fiscal positions. In such circumstances a significant risk lies in debtors' growing challenges to repay loans, increasing default risks. In order to mitigate that, lending companies must adapt by focusing on risk management, leveraging fintech innovations, and targeting resilient sectors to navigate the economic uncertainty effectively. Considering mentioned information, the Group applies at least 15% probability for worst-case scenario and only 5% for best-case. Last updated forecasts for macroeconomic indicators already reflect actual trends, for example - increase in inflation rate. At this stage base-case scenario is considered as a most possible. Sensitivity test was done to evaluate impact from scenarios probability change. Changing worst-case scenario probability till 50%, no major effect on macro coefficient noticed. But, considering uncertainty in projections, macro coefficient was increased by 1-2pp for Eurozone countries. Macro model results To obtain final effect on PD from macro indicator change, applied weights for each macro indicator and the final result is taken as a weighted average of macro indicator PD effect. Weights are changed based on their significance in affecting default rate overall. Considering model main assumptions, the Group’s experts evaluate historical relationship and chooses weights for each country individually. In most of the countries UR (unemployment rate) and IR (inflation rate) chosen as main macro indicators and higher weights are applied for them. To account for future uncertainty in case the model yields positive PD correction, the Group decided to be prudent and not to apply improving PD effect for impairment correction. Illustration of example: UR impact evaluation on PD: Scenarios Current rate 2Y forecast Difference (p.p.) Likelihood of the scenario Impact on PD Worst case scenario 7.400% 8.50% 1.1pp 15% 109.6% Base case scenario 7.400% 7.40% 0pp 80% 100.0% Best case scenario 7.400% 6.30% -1.1pp 5% 93.7% Final macroeconomic correction 100% 101.1% Loss Given Default Group closely following recoveries from defaulted financing receivables and revises LGD rates every month for portfolios based on actual recoveries received. - The sample used for LGD calculation consists of all the financing receivables that have been defaulted historically. If termination of the contract happens before default state is reached, then loan is considered defaulted (early default) and it is considered in LGD sample. Subsequent recoveries on such loans are monitored on a monthly basis. Recoveries from regular collections process, car sales, cessions and legal process are followed. - Renewed loans (restored payments capacity after termination) also affect the LGD rate by incorporating recovered cash after renewal of the agreement and comparing it to the exposure at default of the agreements subsequently renewed, implying the cure rate. Cure rate from renewals is calculated over a three-year period. For the 31 December 2024 impairment purposes recovery rate for renewed cases were applied in range of 55% to 96% depending on the market. Above described LGD rate is used for all portfolio groups except for unsecured portfolio part. For unsecured portfolio part LGD is estimated using triangular recovery matrix on all unsecured cases. Received recovery is discounted with effective interest rate depending on the number of months between the date account got unsecured status and the date when recovery was received. Given that majority of the car sales happen before unsecured status, the LGD for unsecured portfolio is higher than for other buckets - as of 31 December 2024 Group average LGD unsecured for portfolios with DPD less than 360 DPD was 75%, respective LGD for portfolio older than 360 DPD was 94%. Loans and advances to customers (unsecured loans, car loans) For unsecured loans LGD is determined based on debt sales market activity and offered prices or based on historical recoveries. For the later stages (DPD 360) LGD is set to 100%. Loans and advances to customers (unsecured loan, businesses acquired in 2020 and 2023) LGD is calculated using triangle recovery matrix built on all defaulted loans. Received recovery is discounted with effective interest rate depending on the number of months between the date account got into default and the date when recovery was received. For later stages (DPD 360) LGD is set to 100%. 3. Critical accounting estimates and judgements (continued) Exposure at default (EAD ) modelling Exposure at default is modelled by adjusting the unpaid balance of loan receivables as at the reporting date by expected future repayments during the next 12 months. As of 31 December 2024, it is applied for Stage 1 exposures only. This is performed based on contractual repayment schedules, adjusted for historical prepayment rate observed. Historical prepayment patterns are assumed to be a reliable estimate for future prepayment activity. Loans and advances to customers (unsecured loan, businesses acquired in 2020 and 2023) EAD is calculated using the sample of defaulted loans. Outstanding balance of defaulted loans is divided by outstanding balance of the same accounts 12 months ago. Observation window can be shortened; however, it cannot exceed 12 months to avoid overestimation of EAD which may lead to underestimation of ECL. As of 31 December 2024, EAD is applied for Stage 1 and Stage 2. Impairment for loans to and receivables from related parties Receivables from related parties inherently are subject to the Group’s credit risk. Therefore, a benchmarked PD and LGD rate - based on Standard & Poor's corporate statistics studies has been applied in determining the ECLs. Significant increase in credit risk for related party transactions is determined based on information available in the Group about the financial performance of the related parties. Financial position of related parties as at impairment assessment date is compared to that when the exposure was originated. Further 30 days past due back stop indicator is utilized to transfer exposures to Stage 2. Recoverability of deferred tax asset Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The deferred tax assets are recognized based on profitability assumptions over 3 year horizon. In developing these assumptions the Group considers both positive and negative evidence of past performance and future development plans to ensure that assumptions used are reasonable, realistic and achievable. The future taxable profit of 2025-2026 has been approved by the Management Board, while 2027 is considered as plausible taxable profit of the Group. Budgeting models used are the same as the ones used in goodwill impairment tests. At each reporting date, the Group’s management analyses the recoverability of deferred tax and reduces the deferred tax asset if it is no longer probable that during the period of utilization of tax losses future taxable profits will be available against which unused tax losses can be utilized (Note 18). Capitalization of development costs For capitalization of expenses in process of developing Group's enterprise resource planning (ERP) system and other IT systems management uses certain assumptions. Capitalization of salary expenses of IT personnel is based on employee time sheets and personnel involved in development dedicate up to 80% of their time on developing new functionality. Therefore up to 80% of salary expenses of involved personnel are capitalized under Other intangible assets while remaining 20% are recognized as salary expenses in Statement of profit and loss. Expenses from amortization of capitalized development costs are included in statement of profit and loss caption "Administrative expense". See further information in Note 20. Separation of embedded derivatives from the host contract The Group has certain call and put option arrangements that can accelerate repayment of the issued bonds. These options arise out of bond (host contract) prospectus and meet the definition of an embedded derivative in accordance with IFRS 9. There are call and put options included in Eurobond prospectus. The Group may redeem all of the outstanding Eurobonds in full prior to the their maturity date, at 102.375 percent of the nominal amount if is exercised up to 18 October 2025; and 100% of the Nominal Amount if the call option is exercised after 18 October 2025. There is also a put option possibility in case of change of control event, breach of certain financial covenants, ultimate beneficial owner of the Group being included into a sanction list of the European Union and the USE, then each bondholder has the right to request that all, or only some, of its Eurobonds are repurchased at a price of 101.00 percent of the nominal amount plus accrued unpaid interests. The Group’s management has evaluated that the embedded derivatives are not contractually separable, not contractually transferrable independently and have the same counterparty. Each option’s exercise price is approximately equal on each exercise date to the amortized cost of bond, therefore these embedded derivatives are not separated from the host contract. Fair value of employee share options The Group’s employees have entered a share option agreement with the Parent Company or the Parent Company’s shareholders and Subsidiaries. Under the agreements respective employees obtain rights to acquire Parent company’s or certain subsidiaries’ shares under several graded vesting scenarios. The respective option would be classified as an equity-settled share-based payment transaction in Group’s consolidated financial statements in accordance with IFRS 2. There are cash settlement alternatives. Given absence of an ongoing sale of any of Subsidiaries or the Parent or any listing process initiated and other relevant cash settlement events, then cash settlement is considered not to be probable and the Group does not have a present obligation to settle in cash. The Group’s management has determined the fair value of the share options and recorded expenses related to this transaction and recognized a respective component of equity. In estimating fair value for the share option the most appropriate valuation model would depend on the terms and conditions of the grant. In 2019 fair value of employee share options has been estimated by first establishing the fair value at the grant date of the relevant issuer company/group applying discounted cash flow valuation methodology and same assumptions as the ones used in value in use estimation (refer to Goodwill impairment tests). Subsequently, the estimate is adjusted by the number of options granted, vesting period and the employee turnover rates in the respective grade. Deferred Tax Liability on unremitted earnings In Latvia, Estonia and Georgia legal entities are required to pay income tax on earned profits in accordance with local legislation on Corporate Income Tax. Corporate income tax would be paid on distributed profits and deemed profit distributions. Corporate income tax on dividends would be recognized in the statement of profit and loss as expense in the reporting period when respective dividends are declared, while, as regards other deemed profit items, at the time when expense is incurred in the reporting year. The Group has decided to use these beneficial tax regimes to reinvest profits in further development of respective subsidiaries, therefore it does not plan to distribute dividends from subsidiaries in these countries in the next 5 years. The Group controls the process of dividend distribution and does not plan to distribute dividends from subsidiaries of these countries for year 2024 and after in the foreseeable future: 5 year horizon is considered appropriate given the Group's planning cycle. Due to above mentioned reason, the Group has not recognized deferred tax liabilities. See further information in Note 17. 3. Critical accounting estimates and judgements (continued) Provisions Significant management judgement is used for estimating provisions in relation to tax amounts disputed with tax authorities. For more details see Note 34. Lease term determination under IFRS 16 (Group as a Lessee) IFRS 16 requires that in determining the lease term and assessing the length of the non-cancellable period of a lease, an entity shall determine the period for which the contract is enforceable. In assessment of lease term determination the Group considers the enforceable rights and obligations of both parties. If both the lessee and the lessor can terminate the contract without more than an insignificant penalty at any time at or after the end of the non-cancellable term, then there are no enforceable rights and obligations beyond the non-cancellable term. For lease agreements without a fixed term and agreements that are “rolled over” on monthly basis until either party gives notice the Group considers that it does have enforceable rights and obligations under such agreements, therefore a reasonable estimate of the lease term assessment is made. When determining the lease term, the Group considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise an option to renew or not to exercise an option to terminate early. When assessing whether the Group is reasonably certain to exercise an option to extend, or not to exercise an option to terminate early, the economic reasons underlying the Group's past practice regarding the period over which it has typically used particular types of assets (whether leased or owned) are considered. Furthermore, the following factors are considered: level of rentals in any secondary period compared with market rates, contingent payments, renewal and purchase options, costs relating to the termination of the lease and the signing of a new replacement lease, costs to return the underlying asset, nature and the level of specialization of the leased assets, asset location, availability of suitable alternatives and existence of significant leasehold improvements. See Note 22. Lease liability incremental borrowing rate determination under IFRS 16 (Group as a Lessee) The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group has used market rates in each of the countries as its incremental borrowing rate. The discount rate applied is obtained from official state government institutions as the average market rate available at the beginning of the lease agreement for loans over a similar term, security, value and applied in similar economic environment. The Group considers market rates used as an appropriate measure for incremental borrowing rates as they correctly reflect the ability the respective subsidiary to finance a specific asset purchase in each of the jurisdictions given the Group’s wide geographical coverage, its track record in ability to raise public debt and the overall financial results of the Group and each subsidiary individually. As additional factor considered is the way how local lenders would approach the asset financing at each subsidiary level. The two most important factors assessed would be the potential borrower’s (in this case Group’s subsidiary’s) financial position and the asset that is being financed (i.e. the quality of the security). As per Group’s assessment each of the Group’s subsidiaries would qualify as a good quality borrower in the local markets in the context of overall Group results. Lease classification for rental fleet (Group as a Lessor) The Group has entered into vehicle leases on its rental fleet (Note 21). These lease agreements have a non-cancellable term of 6 months and an optional term of up to 72 months. After the non-cancellable term of 6 months the lessee can return the leased asset to the Group and losses associated with the cancellation are borne by the Group. The leased asset is not transferred to lessee at the end of lease term. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the leased assets and the present value of the minimum lease payments not amounting to substantially all of the fair value of the leased asset, that it retains all the significant risks and rewards of ownership of these assets and accounts for the contracts as operating leases. Measurement of fair values Trademarks obtained in business combinations during 2023 The Relief-from-royalty method was used for measuring the fair value of trademarks obtained. The relief from-royalty method considers the discounted estimated royalty payments that are expected to be avoided as a result of the patents or trademarks being owned. Management’s key assumptions used to determine the value of trademarks were as follows: Average cash flow forecast (5 Year) revenue growth rate is 19% per year (range 10% - 37%) Long term revenue growth rate is 0% as a matter of prudence for fair value estimation. Average trademark royalty rate is 0.9% (range 0.9% - 1.1%) Average discount rate is 25.4% (range 22.2% - 32.0%) Property, plant and equipment obtained in business combinations Depreciated replacement cost technique was used for measuring the fair value of Property, plant and equipment obtained. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence of assets obtained. Other intangible assets obtained in business combinations The With and Without Method (WWM) was used for measuring fair value of DAS Access asset acquired. The WWM estimates an intangible asset’s value by calculating the difference between two discounted cash-flow models: one that represents the status quo for the business enterprise with the asset in place, and another without it. Management’s key assumptions used to determine the value of DAS Asset were as follows: Loan issuance growth rate is 18% Long term growth rate is 0% as a matter of prudence for fair value estimation. Expected Loss (EL) for DAS loans issued: With asset is 8.0%; Without asset is 25.0% Discount rate is 32% Depreciated replacement cost technique was used for measuring the fair value of Intangible assets obtained (excluding Trademarks and DAS Access Asset). Depreciated replacement cost reflects adjustments for functional and economic obsolescence of assets obtained. Please refer to Note 44 for disclosure of and relevant inputs for fair value techniques applied to financial assets and liabilities. Obtaining control over obtained entities During 2023 the Group obtained several new subsidiaries in a transaction where legal ownership of the companies was obtained through obtaining of a holding entity EC Finance Group SIA. The Group assumed full control over the newly obtained entities from the moment of signing the agreements since they include clauses granting the Group the power to govern the obtained entities from day of signing the share obtaining agreements. Accordingly, the Group concluded that control in accordance with IFRS 10 was exercised and commenced consolidation of the subsidiaries. The management of Eleving Group S.A. evaluated whether the acquisition of EC Finance Group SIA is considered as “transaction under common control”, whereas such transactions are outside of the scope of IFRS 3 “Business combinations”. Such evaluation was performed due to the fact that CI Holding AS and Eleving Group S.A. has overlapping shareholders. However, after careful consideration and interpretation of IFRS Accounting Policies, the management determined that the transaction should not be treated as under common control. This determination was made due to the impact of the transaction on minority shareholders, leading the management to conclude that the acquisition method prescribed by IFRS 3 should be applied. Consequently, the transaction falls within the scope of IFRS 3 for business combinations. 3. Critical accounting estimates and judgements (continued) Disposal groups and discontinued operations At the end of 2021 the Group made a decision to fully exit the Balkan region with its car financing business as well as in late 2023 the Group decided to exit also from Belarus. As a result of these decisions some entities have been sold in 2024, but for some entities the process of liquidation has been completed. Due to these reasons all of the following group subsidiaries as at 31 December 2023 were classified as subsidiaries held for sale or under liquidation and as discontinued operations in 2023 and 2024: - Mogo Leasing d.o.o. (Bosnia&Herzegovina) - liquidated in 2024; - Rocket Leasing OOO (Belarus) - liquidated in 2024; - Autotrade OOO (Belarus) - sold in early 2024; - MOGO Kredit LLC (Belarus) - sold in early 2024. 4. Interest revenue 2024 2023 EUR EUR Interest income from secured receivables according to effective interest rate method 97,959,131 98,735,235 Interest income from unsecured receivables according to effective interest rate method 105,173,029 76,785,582 Other interest income according to effective interest rate method 617,215 776,958 TOTAL: 203,749,375 176,297,775 Interest income contains earned interest on portfolio derecognized from Group's assets due to being listed on P2P platform and having no buy back obligation. Gross and net earned interest are as follows: 2024 2023 EUR EUR Gross interest income 203,749,375 176,298,402 Interest derecognized due to derecognition of portfolio from Group's assets - (627) TOTAL NET INTEREST: 203,749,375 176,297,775 Interest income from impaired Stage 3 loans amounts to EUR 2 116 441 (2023: EUR 1 898 445). 5. Interest expense 2024 2023 EUR EUR Interest expenses on financial liabilities measured at amortised cost: Interest expense on issued bonds 27,825,505 23,807,651 Interest expenses for loans from P2P platform investors 6,707,269 9,399,425 Interest expenses for bank liabilities and related parties 4,912,231 2,952,186 Interest expenses for lease liabilities 825,878 727,919 Interest expenses for other borrowings 1,249,392 612,263 TOTAL: 41,520,275 37,499,444 6. Fee and commission income related to financing activities Revenue from contracts with customers recognized point in time: 2024 2023 EUR EUR Income from penalties received 9,331,627 7,754,726 Income from commissions 4,113,572 3,663,653 TOTAL: 13,445,199 11,418,379 Gain/(loss) from contracts with customers recognized point in time related to debt collection activities: 2024 2023 EUR EUR Gross income from debt collection activities 2,034,840 2,423,808 Gross expenses from debt collection activities (5,404,010) (4,874,045) TOTAL: (3,369,170) (2,450,237) Total fees and commissions income: 10,076,029 8,968,142 7. Impairment expense 2024 2023 EUR EUR Change in impairment of intangible assets (Notes 20) - 65,640 Change in impairment in rental fleet (Note 21) (27,303) (61,895) Change in impairment in loans and advances to customers (Note 23) (347,044) 7,479,821 Change in impairment in loans to related parties (Note 24) - (49,727) Change in impairment of finished goods and goods for resale (Notes 26) 427,961 297,207 Change in impairment in trade receivables (Note 28) (332,150) 381,300 Change in impairment in other receivables (Note 29) 3,796 (612,092) Change in impairment in assets held for sale (Note 32) 132,938 241,165 Disposal of impairment after sale of the respective receivables 17,336,331 9,030,123 Written off debts 24,908,092 23,075,082 TOTAL: 42,102,621 39,846,624 * - In 2024 the Group more actively performed sales transactions of bad debts thus its impairment expense of sold receivables increased compared to previous year while change in impairment of remaining portfolio was relatively low. In 2023 the Group sold less doubtful receivables therefore the cost of impairment of sold receivables were less while change in impairment was higher. 8. Net gain/(loss) from de-recognition of financial assets measured at amortized cost 2024 2023 EUR EUR Loans and advances to customers Income arising from cession of loans and advances to customers receivables to non related parties 3,700,998 5,778,683 Loss arising from cession of loans and advances to customers receivables to non related parties (1,995,005) (4,626,282) TOTAL: 1,705,993 1,152,401 Receivables from rent contracts Income arising from cession of customers receivables to non related parties 432,044 54,653 Loss arising from cession of customers receivables to non related parties (378,937) (47,731) TOTAL: 53,107 6,922 Net gain/(loss) arising from cession of loans and advances to customers and rent contracts 1,759,100 1,159,323 During 2023 and 2024 the Group performed cessions of doubtful loans and advances to customers receivables to non related parties. The Group uses opportunities to sell receivables in cession to improve cash flow and reduce debt collection related expenses associated of recovering of doubtful debts. When loans and advances to customers portfolio is sold in cession the Group reverses the respective part of impairment allowance of the ceded assets (Note 23). The Group then separately recognizes net losses arising from derecognition of the ceded portfolio, which is reduced by the respective cession income. 9. Expenses related to peer-to-peer platform services 2024 2023 EUR EUR Service fee for using P2P platform 895,450 987,970 TOTAL: 895,450 987,970 10. Revenue from leases 2024 2023 EUR EUR Revenue from operating lease 2,748,356 4,067,111 TOTAL: 2,748,356 4,067,111 The Group has scaled down its operating lease business line therefore income from this revenue stream has reduced compared to previous year. 11. Revenue from car sales and other goods Revenue from contracts with customers recognized point in time: 2024 2023 EUR EUR Income from sale of vehicles and other goods 7,074,452 1,936,451 TOTAL: 7,074,452 1,936,451 Expenses from contracts with customers recognized point in time: 2024 2023 EUR EUR Expenses from sale of vehicles and other goods (6,559,224) (1,789,166) TOTAL: (6,559,224) (1,789,166) Total Net revenue from contracts with customers recognized point in time 515,228 147,285 During 2023 the Group has started car sale and mobile phone sale business in Kenya which has resulted in significant increase in revenue from this business line. In 2024 the Group continued expansion of this business line. 12. Selling expense 2024 2023 EUR EUR Online marketing expenses 1,700,614 1,342,637 Radio advertising 551,230 215,735 TV advertising 484,711 582,692 Affiliate fees 6,463 26,671 Other marketing expenses 1,816,998 1,286,993 Total marketing expenses 4,560,016 3,454,728 Customer insurance expenses 2,021,612 2,172,727 Other selling expenses 621,402 799,397 TOTAL: 7,203,030 6,426,852 13. Administrative expense 2024 2023 EUR EUR Employees' salaries 41,807,837 34,814,751 Amortization and depreciation 9,854,800 9,442,554 Professional services 4,057,927 2,802,696 IT services 3,827,765 3,220,247 Office and branches' maintenance expenses 3,480,022 2,928,259 Communication expenses 1,800,781 1,450,133 GPS tracking service expenses 1,539,965 1,649,342 Business trip expenses 1,319,030 1,060,195 Other personnel expenses 1,206,002 832,018 Bank commissions 1,198,499 927,972 Credit database expenses 947,413 757,986 Transportation expenses 640,586 667,357 Insurance expenses 524,651 503,786 Low value equipment expenses 232,966 182,197 Expenses from disposal of rental fleet and other fixed assets 181,804 39,093 Employee recruitment expenses 139,082 126,863 Real estate tax 86,796 132 Donations 50,946 23,990 Other administration expenses 1,804,125 1,816,439 TOTAL: 74,700,997 63,246,010 Audit fees for Group’s entities’ 2024 financial statements audit amounts to 683 660 EUR, the Parent Company - 138 000 EUR (2023: EUR 549 930; the Parent Company - 80 430 EUR). In 2024 the audit company also provided services related to interim dividend distribution in total amount of EUR 15 900 (2023: EUR 25 200). The audit company provided 6 month 2024 ISRE 2410 review services and issued a comfort letter on the proposed international public offering. Total amount of these services consisted of EUR 427 000. No other permitted non-audit-services were provided to the Group by the auditor and member firms of its network during the year. Amounts included in 'Professional services' line. Key management personnel compensation Members of the Management 2024 2023 EUR EUR Remuneration 4,182,741 4,376,041 Social security contribution expenses 502,877 631,353 TOTAL: 4,685,618 5,007,394 Key management personnel is considered to be all Group top management employees, regional management employees and country managers. * - Including vacation accruals. Although total amount of employees has reduced, total salary costs for the year have increased due to the fact that the EC Finance Group SIA (obtained in second half of 2023) has contributed salary expenses for full year in 2024 compared to only half year in 2023. There are no amounts receivable or payable as of 31 December 2024 with members of the Group’s Management (none at 31 December 2023) for any past transactions. There are no emoluments granted for current and for former members of the management and commitments in respect of retirement pensions for former members of the management. In 2024 the Group employed 2 589 employees (in 2023: 2 817). Country 2024 2023 Country 2024 2023 EUR EUR EUR EUR Albania 222 231 Lithuania 75 74 Armenia 60 72 Mauritius 2 3 Belarus - 61 Moldova 184 195 Bosnia&Hercegovina - 2 Namibia 203 139 Botswana 86 73 North Macedonia 179 163 Estonia 23 21 Romania 57 57 Georgia 71 75 Uganda 233 355 Kenya 723 833 Ukraine 15 59 Latvia 273 257 Uzbekistan 58 50 Lesotho 13 11 Zambia 112 86 14. Other operating income 2024 2023 EUR EUR Supplementary services income 1,890,635 1,003,605 Income from management services 567,920 476,572 Other operating income 400,765 888,562 TOTAL: 2,859,320 2,368,739 * - Additionally to its main services provided by the Group to its customers, the Group also provides other minor supplementary services which improve customer experience. Such services are not significant part of the Groups' service portfolio on individual type basis, thus are aggregated and disclosed as 'Supplementary services'. Revenue from contracts with customers recognized point in time where the Group acted as an agent ** 2024 2023 EUR EUR Gross revenue from agency services 140,173 271,600 Gross expenses from agency services (140,173) (271,600) TOTAL: - - ** - Revenue associated with these transactions is presented as revenue in net amount in these consolidated financial statements. 15. Other operating expense 2024 2023 EUR EUR Withholding tax expenses 3,824,459 3,594,500 Non-deductible VAT from management services 3,504,857 3,083,292 Additional VAT calculated by tax authorities in Romania 3,030,217 - Credit default swap expenses 1,338,248 1,352,161 Expense from associates accounted under equity method 490,439 623,908 Other operating expenses 1,646,501 1,479,779 TOTAL: 13,834,721 10,133,640 * - On December 16, 2024, the Romanian tax authorities concluded a VAT audit of Eleving Group's company for 2017-2022, assessing an additional EUR 3 million in VAT liabilities. Utilizing Romania's tax amnesty provisions, the company settled only the assessed tax amount by the January 20, 2025 deadline, while actively contesting the findings, with a formal appeal submitted by January 31, 2025. ** - a subsidiary of the Parent company - Mogo LT UAB, has signed a credit default swap agreement with a former company of the Group - Risk Management Services OU. Based on this contract the Group incurs credit default swap expenses in return for an insurance of the default of Mogo LT UAB loans and advances to customers portfolio. 16. Net foreign exchange result 2024 2023 EUR EUR Currency exchange gain (15,469,241) (2,737,620) Currency exchange loss 19,179,090 9,123,453 TOTAL: 3,709,849 6,385,833 Main impact comes from currency rate fluctuations of Kenya Shiling. 17. Corporate income tax 2024 2023 EUR EUR Current corporate income tax charge for the reporting year 8,203,820 8,324,461 Deferred corporate income tax due to changes in temporary differences 732,929 (1,758,559) Corporate income tax charged to the income statement: 8,936,749 6,565,902 Unrecognized deferred tax liability for undistributed dividends as described in Note 3 comprises 10 030 374 EUR. (2023: 9 406 035 EUR) 31.12.2024 31.12.2023 EUR EUR Current corporate income tax liabilities 3,591,081 729,149 TOTAL: 3,591,081 729,149 Corporate income tax liabilities have increased in 2024 compared to 2023 mainly due to subsidiaries in Africa obtained in 2023. Those subsidiaries have generated taxable profits in 2024 which caused increase of corporate income tax liabilities at year end. 18. Deferred corporate income tax Balance sheet Income statement 31.12.2024 31.12.2023 2024 2023 EUR EUR EUR EUR Deferred corporate income tax liability Accelerated depreciation for tax purposes 164,988 251,308 (75,462) (64,391) Other 2,126,423 229,918 1,610,477 137,428 Gross deferred tax liability 2,291,411 481,226 1,535,015 73,037 Deferred corporate income tax asset Tax loss carried forward (2,350,119) (2,846,009) 523,335 (76,945) Unused vacation accruals (245,902) (196,978) (32,939) 54,514 Impairment (7,483,783) (4,720,754) (1,633,653) 289,392 Currency fluctuation effect - - (1,048,682) 1,198,508 Other (1,405,199) (1,595,324) 341,171 (2,098,557) Gross deferred tax asset (11,485,003) (9,359,065) (1,850,768) (633,088) Net deferred tax liability/ (asset) (9,193,592) (8,877,839) (315,753) (560,051) Increase in net deferred tax asset: In the statement of profit and loss - - 732,929 (1,758,559) Net deferred corporate income tax assets (9,193,592) (8,877,839) Net deferred corporate income tax expense/ (benefit) 732,929 (1,758,559) The Group believes that tax asset arising from tax losses will be utilized in nearest few years with future profits as well as asset arising due to temporary impairment cost recognition when low performing portfolio will be sold to third parties. 18. Deferred corporate income tax (continued) For all countries the asset is deemed recoverable based on trends of historical performance and estimates of future results. Deferred tax asset has been recognized in subsidiaries in following countries: Deferred tax asset Subsidiary 2024 2023 EUR EUR Mogo Auto Ltd 2,506,292 2,998,449 YesCash Group Ltd 2,247,180 1,876,026 MOGO LOANS SMC LIMITED 1,834,029 2,062,902 ExpressCredit Proprietary Ltd 780,691 438,623 ExpressCredit Cash Advance Ltd 696,529 145,978 YesCash Zambia LTD 467,341 531,251 Kredo Finance SHPK 244,876 271,449 Green Power Trading LTD 233,480 311,281 Other 183,174 241,880 TOTAL: 9,193,592 8,877,839 Recognition of deferred taxes mainly is driven from accumulated tax losses from entities in Mauritius and Uganda as well as temporary differences in taxable impairment in Kenya. Deferred tax assets have not been recognized mainly in respect to tax losses arisen in Luxembourg and Ukraine as there may be no future taxable profits available in the foreseeable future. Subsidiaries in Ukraine have been loss-making and there are no other tax planning opportunities or other evidence of recoverability in the near future. Recoverability of deferred tax asset in Luxembourg in nearest future is also unlikely. Deferred tax asset not recognized due to the above reason in amount of 8 824 652 EUR. (2023: 8 548 066 EUR). The potential income tax consequence attached to the payment of dividends in 2024 amounts to 624 339 EUR. (2023: 624 736 EUR.) Tax losses for which no deferred tax assets are recognized by the Group may be utilized as follows for carry forward: Tax loss Expiry term EUR Tax loss for 2019 3,852,603 2025 Tax loss for 2020 6,787,321 2025-2026 Tax loss for 2021 20,813,333 2026-2027 Tax loss for 2022 3,703,855 2027-2028 Tax loss for 2023 2,253,199 2028-2029 Tax loss for 2024 2,462,672 2029-2030 TOTAL: 39,872,983 Tax losses for which no deferred tax assets were recognized by the Group for previous reporting period consisted of EUR 38 632 230. Actual corporate income tax charge for the reporting year, if compared with theoretical calculations: 2024 2023 EUR EUR Profit before tax 37,740,465 28,482,002 Tax at the applicable tax rate 9,412,472 7,103,411 Undistributed earnings taxable on distribution (572,496) (2,534,833) Unrecognized deferred tax asset 106,073 354,482 Effect of different tax rates of subsidiaries operating in other jurisdictions (2,675,034) (3,146,455) Non-temporary differences: Business not related expenses (donations, penalties and similar expenses) (185,911) (807,112) Other 2,851,645 5,596,409 Actual corporate income tax for the reporting year: 8,936,749 6,565,902 Effective income tax rate 23.68% 23.05% * - Tax rate for the Parent company for year 2024 - 24,94% (2023 - 24,94%) ** - In Latvia, Estonia and Georgia corporate income tax expenses are not recognized starting from 2017 or before in accordance with local legislation. See further information in Note 3. *** - 'Other' contains other non-temporary differences as well as impact of consolidation adjsutments. 19. Discontinued operations As of end of 2023 the Group had either sold or was in active liquidation process of its vehicle business operations in the Balkan region. In 2022 the Group had decided to fully exit from the Balkan region as a geographical market with its vehicle financing business line while retaining its consumer financing business lines in the region. Due to this reason the Group had decided to classify the vehicle financing operations in Bosnia-Herzegovina as well as Poland as discontinued operation and present their results separately. The subsidiary in Bosnia-Herzegovina was liquidated in 2024. Also in 2023 the Group decided to exit Belarus as a geographical market therefore several subsidiaries in Belarus are also classified as discontinued operations. As of end of 2024 all entities in Belarus are either sold or liquidated. The Group does not have any discontined operations at 2024 year end. All following entities are classified as discontinued operations in these consolidated financial statements: - Mogo Leasing d.o.o. (Bosnia&Herzegovina), liquidation process finished in Q1 of 2024 - Rocket Leasing OOO (Belarus), company sold in January 2024 - Autotrade OOO (Belarus), company sold in January 2024 - MOGO Kredit LLC (Belarus), company sold in January 2024 Results of discontinued operation 2024 2023 EUR EUR Interest income 900,598 4,894,168 Other debt collection income/(expense) 45,812 301,050 External revenue 946,410 5,195,218 Expenses (552,901) (3,745,069) Elimination of expenses related to inter‑segment sales - 1,104,241 External expenses (552,901) (2,640,828) Results from operating activities 393,509 2,554,390 Income tax (270,622) (291,447) Results from operating activities, net of tax 122,887 2,262,943 Gain on sale of discontinued operation/(loss) on measurement to fair value less costs to sell of the disposal group 645,225 276,011 Profit (loss) from discontinued operations, net of tax 768,112 2,538,954 19. Discontinued operations (continued) Cash flows from discontinued operation 2024 2023 EUR EUR Net cash used in operating activities 8,175,838 5,078,806 Net cash from investing activities 401,587 253,509 Net cash from financing activities (9,541,121) (14,875,734) Net cash flows for the year (963,696) (9,543,419) Effect of disposal on the financial position of the Group 2024 2023 EUR EUR Intangible assets - - Tangible assets - (405,104) Deferred tax asset - (290,860) Loans and advances to customers - (145,140) - (8,050,101) Other receivables - (561,080) Cash and cash equivalents disposed of - (104,578) Total disposed assets - (9,556,863) Other liabilities - 2,045,004 Net assets and liabilities - (7,511,859) Net cash outflows - (104,578) 20. Intangible assets Internally generated intangible assets Other intangible assets Other intangible assets SUBTOTAL Goodwill Trademarks TOTAL EUR EUR EUR EUR EUR EUR Cost 4,659,049 14,789,632 2,151,085 409,993 2,561,078 22,009,759 Accumulated amortization - (6,148,194) - (149,820) (149,820) (6,298,014) As at 1 January 2023 4,659,049 8,641,438 2,151,085 260,173 2,411,258 15,711,745 2023 Additions - 2,474,926 - 1,060,536 1,060,536 3,535,462 Acquisition of a subsidiary through business combination 2,148,006 7,798,508 1,072,000 1,860,778 2,932,778 12,879,292 Reclassification - 904,566 - (904,566) (904,566) - Reclassified to assets held for sale (cost) - (366,717) - (2,144) (2,144) (368,861) Disposals (cost) - (75,263) - (37,423) (37,423) (112,686) Exchange difference, net - 9,555 - (6,455) (6,455) 3,100 Amortization charge - (3,081,502) - (55,817) (55,817) (3,137,319) Disposals (amortization) - 76,879 - 15,177 15,177 92,056 Acquisition of a subsidiary through business combination (amortization) - (6,096,372) - (26,298) (26,298) (6,122,670) Reclassified from assets held for sale (amortization) - 62,254 - 1,902 1,902 64,156 Impairment - (65,640) - - - (65,640) Exchange difference, net - (18,713) - 4,515 4,515 (14,198) Cost 6,807,055 25,535,207 3,223,085 2,380,719 5,603,804 37,946,066 Accumulated amortization - (15,271,288) - (210,341) (210,341) (15,481,629) As at 31 December 2023 6,807,055 10,263,919 3,223,085 2,170,378 5,393,463 22,464,437 2024 Additions - 1,477,326 - 3,066,640 3,066,640 4,543,966 Reclassification - 3,104,261 - (3,104,261) (3,104,261) - Disposals (cost) - (27,829) - (56,760) (56,760) (84,589) Exchange difference, net - 77,316 - 3,239 3,239 80,555 Amortization charge - (3,166,962) - (33,582) (33,582) (3,200,544) Disposals (amortization) - 7,589 - 51,646 51,646 59,235 Exchange difference, net - 49,244 - (872) (870) 48,372 Cost 6,807,055 30,166,281 3,223,085 2,289,577 5,512,662 42,485,998 Accumulated amortization - (18,381,417) - (193,149) (193,147) (18,574,566) As at 31 December 2024 6,807,055 11,784,864 3,223,085 2,096,428 5,319,515 23,911,432 * Internally generated intangible assets mainly consist of Group's developed ERP systems. Carrying amount of ERP systems at reporting year end was EUR 11 613 281. Expected amortization period is 7 years with year 2030 end date. Carrying amount has increased as the Group continued to make investments in further development of the systems. Amortization costs are included in the caption "Administrative expense". Split of goodwill per cash generating unit: 31.12.2024 31.12.2023 Name EUR EUR TIGO Finance DOOEL Skopje (North Macedonia) 3,000,276 3,000,276 EC Finance Group SIA 2,148,006 2,148,006 UAB mogo (Lithuania) 646,063 646,063 OU Primero Finance (Estonia) 451,894 451,894 AS mogo (Latvia) 298,738 298,738 Mogo UCO (Armenia) 182,028 182,028 Mogo LLC (Georgia) 80,050 80,050 6,807,055 6,807,055 Each cash generating unit represents a subsidiary of the Group. * - During 2023 the Group obtained the EC Finance Group SIA as a whole group with its 'Express Credit' brand. Goodwill from this transaction was recognized on the group as a whole instead of individual subsidiaries due to the fact that the Group considers whole EC Finance Group SIA as one cash generating unit therefore does not recognize goodwill on each individual subsidiary obtained. Goodwill and trademarks impairment test As at 31 December 2024, goodwill and trademarks were tested for impairment. The impairment test was performed for each cash generating unit separately. The recoverable amounts for each unit were calculated based on their value in use, determined by discounting the future cash flows expected to be generated from the continuing activities of the units. No impairment losses were recognized because the recoverable amounts of these units including the goodwill allocated were determined to be higher than their carrying amounts. The calculations of value-in-use were based on free cash flow to equity approach to each unit respectively, discounted by estimated cost of equity. The value-in-use calculations are most sensitive to projected operating cash-flow, terminal growth rates used to extrapolate cash flows beyond the budget period, and discount rates. Projected operating cash-flow figures were based on detailed financial models. Recoverable amount for the subsidiaries are estimated to be: Name Amount TIGO Finance DOOEL Skopje (North Macedonia) 13.4 million EUR EC Finance Group SIA 39.1 million EUR UAB mogo (Lithuania) 11.8 million EUR OU Primero Finance (Estonia) 10.1 million EUR AS mogo (Latvia) 9.6 million EUR Mogo UCO (Armenia) 9.6 million EUR Mogo LLC (Georgia) 19.7 million EUR 2024 actual figures were used as a starting point in these models, and took into account management's expectations of the future performance of each unit. Five years of cash flows were included in the discounted cash flow model. A long-term terminal growth rate into perpetuity was determined to be from 2.1% to 5.0%. The rate was estimated by management based on the forecasted trends of economic and macroeconomic environment in existing markets. Discount rates reflect the current market assessment of the risk specific to each unit. Discount rates applied are: Name Rate TIGO Finance DOOEL Skopje (North Macedonia) 31.4% EC Finance Group SIA 27.8% - 54.3% UAB mogo (Lithuania) 15.6% OU Primero Finance (Estonia) 14.8% AS mogo (Latvia) 15.9% Mogo UCO (Armenia) 30.0% Mogo LLC (Georgia) 28.3% Sensitivity analysis was performed to assess changes to key assumptions that could influence whether the carrying value of the units exceeded their recoverable amounts. The results of this analysis indicate that for all units, the recoverable amount would not be below the carrying amount including goodwill (i.e. goodwill would not become impaired), if terminal growth rates decreased by 0.5% and discount rates increased by 5%. The recoverable amounts after stress test exceed the carrying amounts for: Name Amount TIGO Finance DOOEL Skopje (North Macedonia) 8.5 million EUR EC Finance Group SIA 37.0 million EUR UAB mogo (Lithuania) 6.8 million EUR OU Primero Finance (Estonia) 6.7 million EUR AS mogo (Latvia) 6.4 million EUR Mogo UCO (Armenia) 8.8 million EUR Mogo LLC (Georgia) 15.8 million EUR The following table shows currently applied terminal growth and discount rates and their adjusted values which would result in carrying value to be equal to recoverable value: Currently applied values Adjusted values Terminal growth rate Discount rate Terminal growth rate Discount rate Name TIGO Finance DOOEL Skopje (North Macedonia) 3.5% 31.4% 0.0% 165.4% EC Finance Group SIA 2.1% - 4.9% 27.8% - 54.3% 0.0% 294.2% UAB mogo (Lithuania) 2.2% 15.6% 0.0% 73.8% OU Primero Finance (Estonia) 2.0% 14.8% 0.0% 152.9% AS mogo (Latvia) 2.5% 15.9% 0.0% 112.7% Mogo UCO (Armenia) 4.5% 30.0% 0.0% 3903.5% Mogo LLC (Georgia) 5.0% 28.3% 0.0% 5703.3% The Group has determined that there is no risk in terms of potential impairment arising from a change in the valuation parameters. 21. Property, plant and equipment and Right-of-use assets Other property, plant and equipment Right-of-use premises Right-of-use motor vehicles SUBTOTAL Right-of-use assets Car sharing rental fleet Long term rental fleet SUBTOTAL Rental fleet TOTAL EUR EUR EUR EUR EUR EUR EUR EUR Cost 15,097,612 327,385 15,424,997 750,747 13,256,631 14,007,378 6,947,223 36,379,598 Accumulated depreciation (5,407,430) (82,938) (5,490,368) (25,393) (3,973,490) (3,998,883) (4,169,468) (13,658,719) As at 1 January 2023 9,690,182 244,447 9,934,629 725,354 9,283,141 10,008,495 2,777,755 22,720,879 2023 Additions 4,976,220 15,508 4,991,728 3,013,359 1,108,735 4,122,094 1,407,939 10,521,761 Disposals (cost) (2,485,573) (48,757) (2,534,330) (38,651) (7,640,331) (7,678,982) (478,011) (10,691,323) Acquisition of a subsidiary through business combination 1,850,387 - 1,850,387 - - - 1,600,186 3,450,573 Reclassified to assets held for sale (cost) (190,949) (16,945) (207,894) - - - (82,394) (290,288) Exchange difference, net (1,069,714) (2,302) (1,072,016) - - - (589,262) (1,661,278) Depreciation charge (2,341,327) (84,902) (2,426,229) (179,198) (1,299,276) (1,478,474) (1,213,667) (5,118,370) Disposals (depreciation) 686,550 27,105 713,655 5,236 2,045,664 2,050,900 231,922 2,996,477 Acquisition of a subsidiary through business combination (depreciation) (1,149,316) - (1,149,316) - - - (1,179,191) (2,328,507) Reclassified to assets held for sale (depreciation) 108,952 10,407 119,359 - - - 74,047 193,406 Impairment release - - - - 61,895 61,895 - 61,895 Exchange difference, net 337,906 1,407 339,313 - - - 322,818 662,131 Cost 18,177,983 274,889 18,452,872 3,725,455 6,725,035 10,450,490 8,805,681 37,709,043 Accumulated depreciation (7,764,665) (128,921) (7,893,586) (199,355) (3,165,207) (3,364,562) (5,933,539) (17,191,687) As at 31 December 2023 10,413,318 145,968 10,559,286 3,526,100 3,559,828 7,085,928 2,872,142 20,517,356 2024 Additions 4,738,145 159,446 4,897,591 2,358 421,846 424,204 3,341,906 8,663,701 Disposals (cost) (2,967,447) (246,231) (3,213,678) - (2,394,139) (2,394,139) (1,848,656) (7,456,473) Disposals due to subsidiary reorganisation (cost) - - - (3,727,813) - (3,727,813) - (3,727,813) Exchange difference, net 527,847 161 528,008 - - - 322,148 850,156 Depreciation charge (4,037,231) (73,070) (4,110,301) (128,589) (804,849) (933,438) (1,610,517) (6,654,256) Disposals (depreciation) 2,289,910 151,221 2,441,131 - 1,227,997 1,227,997 617,678 4,286,806 Disposals due to subsidiary reorganisation (depreciation) - - - 327,944 - 327,944 - 327,944 Impairment release - - - - 27,303 27,303 - 27,303 Exchange difference, net (322,788) (151) (322,939) - - - (229,580) (552,519) Cost 20,476,528 188,265 20,664,793 - 4,752,742 4,752,742 10,621,079 36,038,614 Accumulated depreciation (9,834,774) (50,921) (9,885,695) - (2,714,756) (2,714,756) (7,155,958) (19,756,409) As at 31 December 2024 10,641,754 137,344 10,779,098 - 2,037,986 2,037,986 3,465,121 16,282,205 Operating leases maturity analysis Contractual cash flows Carrying value Up to 1 year 1-5 years More than 5 years Total EUR EUR EUR EUR EUR Long term rental fleet 2,037,986 1,552,292 869,013 - 2,421,305 Impairment test of non-financial assets (long term rental fleet) As of 31 December 2024, non-financial assets of long term rental fleet were tested for impairment. An impairment indication existed as Renti AS has been loss making. Out of total long term rental fleet with the acquisition cost of EUR 4 752 742, impairment was identified for the total long term rental fleet with a acquisition cost of EUR 1 036 669. For those cars recoverable amount is estimated to EUR 281 656. The recoverable amount was estimated based on the value in use method discounting the cash-flow using a WACC of 12.6%. The cash-flow was projected based on rental agreements probabilities of default and early repayments. As a result, impairment loss was recognised in previous years and remaining impairment amount as at 31 December is EUR 48 095. For the remaining long term rental fleet with the acquisition value of EUR 3 716 073 the recoverable amount was estimated as EUR 1 153 141. Sensitivity analysis was performed to assess changes to key assumptions that could influence whether the carrying value of the long term rental fleet assets exceeded their recoverable amounts. If WACC would have increased by 2%, all other assumptions remaining the same including the rental income, acquisition cost would increase to EUR 1 129 990 and the recoverable amount of impaired assets would equal to EUR 311 985, additional impairment of EUR 4 239 would need to be recognized. For detailed description of impairment testing refer to ‘Impairment of non-financial assets (rental fleet) (Note 3). 22. Right-of-use assets and lease liabilities Right-of-use assets and lease liabilities are shown as follows in the statement of financial position and statement of profit and loss: 31.12.2024 31.12.2023 EUR EUR ASSETS Non-current assets Right-of-use assets - premises 10,641,754 10,413,318 Right-of-use assets - motor vehicles 137,344 145,968 TOTAL: 10,779,098 10,559,286 EQUITY AND LIABILITIES Non-current liabilities Lease liabilities 6,805,081 7,247,159 Current liabilities Lease liabilities 5,067,981 4,553,929 TOTAL: 11,873,062 11,801,088 2024 EUR Leases in the statement of profit and loss Revenue from contracts with customers Operating lease income 2,748,356 Total cash inflow from leases 2,748,356 Administrative expense Expense relating to leases of low-value assets and short-term leases (369,371) Depreciation (4,281,910) Net finance costs Interest expense on lease liabilities (769,723) Total cash outflow from lease liabilities Principal payments for finance lease liabilities (2,349,649) Interest payments for lease liabilities (769,723) Total cash outflow from leases (3,119,372) In 2024 the Group incurred expenses for lease agreements which did not qualify for recognition of Right-of-use assets in total amount of EUR 369 371. The cost relating to variable lease payments that do not depend on an index or a rate amounted to EUR nil for the year ended December 31, 2024. There were no leases with residual value guarantees or leases not yet commenced to which the Group is committed. 23. Loans and advances to customers Non-Current Current Non-Current Current Loans and advances to customers, net 31.12.2024 31.12.2024 31.12.2023 31.12.2023 EUR EUR EUR EUR (restated) (restated) Loans and advances to customers (secured) 140,830,463 110,245,433 123,487,542 89,282,439 Impairment allowance for secured loans (6,579,988) (30,695,254) (4,853,057) (27,770,540) Loans and advances to customers (unsecured) 61,376,766 123,096,365 43,858,190 118,615,693 Impairment allowance for unsecured loans (5,785,923) (52,627,768) (6,830,011) (52,099,017) Accrued interest and handling fee - 29,718,909 - 31,615,709 Fees paid and received upon loan disbursement (191,735) (221,258) (808,211) (1,294,582) 189,649,583 179,516,427 154,854,453 158,349,702 The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. 2024 2023 Loans and advances to customers (unsecured) Stage 1 Stage 2 Stage 3 TOTAL TOTAL EUR EUR EUR EUR EUR Not past due 131,156,213 115,276 576,297 131,847,786 106,193,377 Days past due up to 30 days 10,279,829 999,409 391,596 11,670,834 9,408,556 Days past due up to 60 days 801,770 3,742,020 225,055 4,768,845 3,913,017 Days past due over 60 days - 2,290,288 48,564,289 50,854,577 52,390,489 TOTAL, GROSS: 142,237,812 7,146,993 49,757,237 199,142,042 171,905,439 2024 2023 Loans and advances to customers (secured) Stage 1 Stage 2 Stage 3 TOTAL TOTAL EUR EUR EUR EUR EUR Not past due 167,526,641 9,592,655 294,128 177,413,424 148,996,364 Days past due up to 30 days 30,130,370 12,963,603 421,386 43,515,359 43,252,083 Days past due up to 60 days - 3,090,518 3,619,853 6,710,371 8,950,523 Days past due over 60 days - - 38,486,740 38,486,740 33,755,164 TOTAL, GROSS: 197,657,011 25,646,776 42,822,107 266,125,894 234,954,134 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to loans and advances to customers are, as follows: Loans and advances to customers (unsecured) Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Balance at 1 January 2024 114,903,724 5,964,421 51,037,294 171,905,439 Transfer to Stage 1 514,702 (386,365) (128,337) - Transfer to Stage 2 (1,893,321) 1,920,527 (27,206) - Transfer to Stage 3 (9,630,237) (2,316,254) 11,946,491 - New financial assets acquired 94,253,688 4,897,338 10,317,528 109,468,554 Receivables settled (56,049,451) (1,441,885) (4,915,579) (62,406,915) Receivables written off (701,685) (1,298,531) (5,874,765) (7,874,981) Receivables sold (2,912,530) (738,355) (13,585,920) (17,236,805) Receivables partially settled 916,794 434,287 800,831 2,151,912 Currency conversion effect 2,836,128 111,810 186,900 3,134,838 Balance at 31 December 2024 142,237,812 7,146,993 49,757,237 199,142,042 23. Loans and advances to customers (continued) Impairment allowance (unsecured) Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Balance at 1 January 2024 8,853,112 2,958,314 47,117,602 58,929,028 Transfer to Stage 1 199,649 (144,612) (55,037) - Transfer to Stage 2 (266,681) 280,505 (13,824) - Transfer to Stage 3 (1,906,392) (1,303,713) 3,210,105 - Impairment for new financial assets acquired 7,008,872 2,595,353 7,716,468 17,320,693 Reversed impairment for settled receivables (3,217,187) (381,507) (643,243) (4,241,937) Reversed impairment for written off receivables (724,499) (1,299,040) (8,044,823) (10,068,362) Reversed impairment for sold receivables (310,019) (698,953) (11,919,426) (12,928,398) Net remeasurement of loss allowance 337,146 823,906 7,817,809 8,978,861 Currency conversion effect 209,923 60,722 153,161 423,806 Balance at 31 December 2024 10,183,924 2,890,975 45,338,792 58,413,691 Change in impairment excluding impact from foreign exchange conversion 1,120,889 (128,061) (1,931,971) (939,143) Loans and advances to customers (secured) Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Balance at 1 January 166,808,290 28,675,566 39,470,278 234,954,134 Transfer to Stage 1 7,404,476 (6,686,966) (717,510) - Transfer to Stage 2 (11,612,757) 12,382,156 (769,399) - Transfer to Stage 3 (18,469,237) (11,480,327) 29,949,564 - New financial assets acquired 140,333,923 15,101,147 18,831,029 174,266,099 Receivables settled (35,530,530) (2,768,040) (1,623,115) (39,921,685) Receivables written off (1,005,670) (1,051,167) (13,414,904) (15,471,741) Receivables sold (1,405,495) (769,385) (5,264,588) (7,439,468) Receivables partially settled (60,384,288) (11,731,852) (28,746,709) (100,862,849) Currency conversion effect 11,518,299 3,975,644 5,107,461 20,601,404 Balance at 31 December 197,657,011 25,646,776 42,822,107 266,125,894 Impairment allowance (secured) Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Balance at 1 January 4,770,950 4,001,301 23,851,346 32,623,597 Transfer to Stage 1 1,075,974 (843,215) (232,759) - Transfer to Stage 2 (533,439) 751,175 (217,736) - Transfer to Stage 3 (899,616) (1,788,356) 2,687,972 - Impairment for new financial assets acquired 4,048,393 2,169,854 11,042,672 17,260,919 Reversed impairment for settled receivables (506,771) (170,930) (459,864) (1,137,565) Reversed impairment for written off receivables (868,031) (1,034,337) (13,145,715) (15,048,083) Reversed impairment for sold receivables (364,049) (392,958) (3,650,926) (4,407,933) Net remeasurement of loss allowance (1,668,122) 396,136 5,196,747 3,924,761 Currency conversion effect 501,787 552,227 3,005,532 4,059,546 Balance at 31 December 5,557,076 3,640,897 28,077,269 37,275,242 Change in impairment excluding impact from foreign exchange conversion 284,339 (912,631) 1,220,391 592,099 * - Amounts presented as changes in loans and advances to customers and impairment allowance due to transfer among stages include only movement of opening balances as at 1 January. Information about transfers among stages does not include new financial assets acquired and impairment calculated during the year. 24. Loans to associated companies Non current Interest rate per annum (%) Maturity 31.12.2024 31.12.2023 EUR EUR Loans to associated companies (Spaceship SIA) 10% 31/01/2027 3,253,724 - TOTAL: 3,253,724 - Current 31.12.2024 31.12.2023 EUR EUR Accrued interest 54,455 - TOTAL: 54,455 - The Group has recognised the loan to its former subsidiary as a result of subsidiary's reorganization and becoming an equity accounted investee. The loan is colletarised with all assets of the entity. An analysis of Loans to related parties staging and the corresponding ECL allowances at the year end are as follows: 31.12.2024 Stage 1 Stage 2 Stage 3 Total Loans to associated companies (Spaceship SIA) 3,253,724 - - 3,253,724 Accrued interest 54,455 - - 54,455 Total 3,308,179 - - 3,308,179 Total ECL calculated - - - - 25. Equity‑accounted investees Interest rate Maturity 31.12.2024 31.12.2023 EUR EUR Investments in associates 1,238,003 580,714 TOTAL: 1,238,003 580,714 In September 2019 the Group sold 51% of its previously wholly owned investment in its subsidiary Primero Finance AS. As a result the Group lost the control over the subsidiary and recognizes this investment in the statement of financial position as equity-accounted investees. During 2021 the Group established a new holding company - Primero Holding AS together with majority shareholder of Primero Finance AS. Group's shareholding also is 49% in the new entity. At the same time ownership of Primero Finance AS was transferred to Primero Holding AS. Through 49% shareholding in Primero Holding AS, the Group continues to have investment in Primero Finance AS at the same level. Also during 2021 Primero Holding AS established a new company in Lithuania - Primero Finance UAB and plans to expand its activities in this market. In 2022 Primero Holding AS also established a subsidiary 'Primero SV1 OU' and also will expand its activities in Estonia. OX Drive (Spaceship SIA), Eleving Group’s electric car-sharing business, and Carguru (Slyfox SIA), the frontrunners of car-sharing services in Latvia, have combined their operations, with Eleving Group converting its previous majority stake in Spaceship SIA into a minority equity holding in the joint venture, which now operates under the Carguru brand in September 2024. This merger elevates their market position with a robust fleet of over 420 vehicles, making them one of the leading players in the Latvian car-sharing space. Eleving Group now holds 36.24% of the combined entity. 25. Equity‑accounted investees (continued) Further information on entities performance disclosed below: 31.12.2024 (unaudited) Interest in associate equity Net value according to equity method Share capital Name of the company Country Total Equity EUR EUR % EUR Primero Holding AS (Latvia) Latvia 2,550,000 573,869 49 286,275 SlyFox SIA (Latvia) Latvia 1,691,687 2,626,181 36.24 951,728 31.12.2023 (unaudited) Interest in associate equity Net value according to equity method Share capital Name of the company Country Total Equity EUR EUR % EUR Primero Holding AS (Latvia) Latvia 2,150,000 1,642,011 49 580,714 Changes in investments in associate 2024 2023 EUR EUR Balance as at 1 January 580,714 420,622 Increase in share capital 1,415,573 784,000 Income/(loss) from associates accounted under equity method (758,284) (623,908) Balance as at 31 December 1,238,003 580,714 Consolidated statement of profit and loss of associates (unaudited) 2024 2023 EUR EUR Interest revenue 4,702,101 3,518,858 Interest expense (15,268) (58,269) Net interest income 4,686,833 3,460,589 Fee and commission income 947,652 26,027 Revenue from leases 4,868,133 - Impairment expense (611,121) (741,965) Net loss from de-recognition of financial assets measured at amortized cost (1,327,628) (583,487) Selling expense (166,094) (281,298) Administrative expense (4,566,840) (1,163,099) Other operating income (222,465) 197,485 Other operating expense (5,342,375) (2,176,750) Profit before tax (1,733,905) (1,262,498) Corporate income tax (6,078) (10,155) Deferred income tax - (628) Net profit (1,739,983) (1,273,281) Consolidated statement of financial position at year end of associates 31.12.2024 31.12.2023 EUR EUR (unaudited) (unaudited) ASSETS Other intangible assets 1,124,737 11,897 Right-of-use assets 4,494 5,877 Property, plant and equipment 7,624,628 990 Loans and advances to customers 22,219,629 17,410,021 TOTAL NON-CURRENT ASSETS 30,973,488 17,428,785 Loans and advances to customers 6,545,860 9,806,952 Stock 413,168 - Prepaid expense 519,087 67,820 Trade receivables 198,334 260,988 Other receivables 1,125,330 102,841 Cash and cash equivalents 492,607 2,037,451 Assets held for sale 10,712 77,103 TOTAL CURRENT ASSETS 9,305,098 12,353,155 TOTAL ASSETS 40,278,586 29,781,940 EQUITY Share capital 5,782,529 2,150,000 Retained earnings/(losses) (2,582,479) (507,989) brought forward (842,496) 765,292 for the period (1,739,983) (1,273,281) TOTAL EQUITY 3,200,050 1,642,011 LIABILITIES Non-current liabilities Borrowings 34,282,237 26,814,699 Total non-current liabilities 34,282,237 26,814,699 Current liabilities Borrowings 1,362,102 53,787 Trade and other payables 693,437 1,048,317 Taxes payable 138,736 33,675 Other liabilities 430,459 55,043 Accrued liabilities 171,565 134,408 Total current liabilities 2,796,299 1,325,230 TOTAL LIABILITIES 37,078,536 28,139,929 TOTAL EQUITY AND LIABILITIES 40,278,586 29,781,940 26. Finished goods and goods for resale 31.12.2024 31.12.2023 EUR EUR Advance payments to vehicle dealerships 2,406,828 2,517,439 Acquired vehicles for purpose of selling them to customers 512,012 2,220,088 Other inventory 258,934 377,779 Impairment allowance (725,168) (297,207) TOTAL: 2,452,606 4,818,099 Income and expenses from sale of vehicles and other goods during the reporting year were EUR 7 074 452 and EUR 6 559 224 respectively. (2023: EUR 1 936 451 and EUR 1 789 166 respectively. Note 11). 27. Prepaid expense 31.12.2024 31.12.2023 EUR EUR Advances paid for services 607,623 647,299 Prepaid insurance expenses 630,633 557,675 Prepaid Mintos service fee 1,667 1,667 Other prepaid expenses 3,114,008 1,918,103 TOTAL: 4,353,931 3,124,744 28. Trade receivables 31.12.2024 31.12.2023 EUR EUR Receivables for ceased financial assets 2,037,237 1,190,064 Receivables for rent services 197,874 610,249 Receivables for provided management services 76,387 424,589 Receivables for insurance services 112,879 92,840 Receivables for other services provided 304,086 184,801 Impairment allowance (563,623) (895,773) TOTAL: 2,164,840 1,606,770 An analysis of trade receivables staging and the corresponding ECL allowances at the year end are as follows: 31.12.2024 Current 1-30 DPD 31-60 DPD >60 DPD Total Receivables for ceased financial assets - - - 2,037,237 2,037,237 Receivables for rent services 24,450 25,289 2,207 145,928 197,874 Receivables for provided management services 76,387 - - - 76,387 Receivables for insurance services 112,879 - - - 112,879 Receivables for other services provided 304,086 - - - 304,086 Total 517,802 25,289 2,207 2,183,165 2,728,463 Total ECL calculated (563,623) - - - (563,623) 31.12.2023 Current 1-30 DPD 31-60 DPD >60 DPD Total Receivables for ceased financial assets - - - 1,190,064 1,190,064 Receivables for rent services 61,258 44,174 2,833 501,984 610,249 Receivables for provided management services 424,589 - - - 424,589 Receivables for insurance services 92,840 - - - 92,840 Receivables for other services provided 184,801 - - - 184,801 Total 763,488 44,174 2,833 1,692,048 2,502,543 Total ECL calculated (651) (8,652) (1,069) (885,401) (895,773) The Group does not have contract assets and contract liabilities at 31.12.2024 (EUR 0 at 31.12.2023). 29. Other receivables 31.12.2024 31.12.2023 EUR EUR CIT paid in advance 3,792,023 1,610,554 Currency hedging deposits 1,010,684 - Disputed tax audit measurement in Georgia 932,225 911,322 Receivables for payments received from customers through online payment systems 720,349 320,394 Security deposit for office lease (more information in Note 22). 538,758 358,706 Overpaid VAT 500,822 566,688 Receivables from P2P platform for attracted funding 318,882 1,016,629 Advance payments for other taxes 215,158 287,472 Accrued income from currency hedging transactions 174,563 1,960,166 Advances to employees 9,105 34,454 Other debtors 706,903 1,376,598 Impairment allowance (179,103) (175,307) TOTAL: 8,740,369 8,267,676 29. Other receivables (continued) * - In order to establish contractual relationship with currency hedging partners the Group must reserve certain amounts as deposits with partners before concluding the transactions. Such deposits are disclosed as other receivables in these financial statements. ** - The Georgian tax administration has initiated a transfer pricing audit for Mogo LLC (Georgia). The audit covers the financial years 2016, 2017 and 2018. Additional audit has been initiated for financial years 2019, 2020 and 2021. Audit decisions have been issued for respective year. The Georgian tax administration has challenged that interest rate applied by Eleving Group S.A. on loan issued to Mogo LLC complies with arm’s lengths principle. According to the decisions additional tax amount of EUR 932 225 has been assessed. The amount has been withheld by the Georgian tax administration from a tax overpayment of Mogo LLC, and part of the amount has been transferred to the Georgian state budget by Mogo LLC. Mogo LLC has appealed the decisions. The tax audit decisions for have been appealed within Tbilisi City Court. Group’s management has made a decision to apply for a mutual agreement procedure according to the double tax treaty concluded between Georgia and Luxembourg. In 2022 the Group has submitted the application within the Luxembourg tax administration to initiate mutual agreement procedure. The tax administration is assessing the application. The management of the Group considers that the interest rate applied by Eleving Group S.A. on loans issued to related parties fully complies with the arm’s length principle. The applied interest rate is justified by transfer pricing policies held by the Group. The management of the Group considers that the approach of the Georgian tax administration does not comply with basic loan pricing principles and international guidelines. In order to determine the market interest rate for the Eleving Group S.A. loan issued to the Mogo LLC, Georgian tax administration has used coupon rate of bonds issued by credit institutions as a comparable source. The coupon rates of such bonds are not comparable as represents lower risk market comparing with that where the Group operates. Additionally, when issuing the decision Georgian tax administration has not considered borrowing costs of Eleving Group S.A. The interest rate applied by the Georgian tax administration in the decisions is significantly lower than the borrowing costs of Eleving Group S.A. The Group is in a position to use all available local and international measures to justify its transfer pricing policies and to achieve the result that the decisions are fully cancelled. According to management’s best estimate no significant economical outflows in relation to the transfer pricing audit is expected in the future as the possibility of such has been assessed as remote. The Group management expects to fully recover paid tax. *** - The Group enters into currency exchange transactions where it tries to limit its foreign currency rate fluctuation loss. The transaction requires the Group to reserve the a cash deposit with its currency transaction partners. At year end the Group recognizes accrued income based on year end currency rates versus agreed currency transaction rates and recognizes income if the estimated result is expected to be profitable. 30. Cash and cash equivalents 31.12.2024 31.12.2023 EUR EUR Cash at bank 33,414,949 26,754,625 Cash on hand* 1,046,144 715,843 TOTAL: 34,461,093 27,470,468 * - The Group provides the possibility to its customers to pay their monthly receivables in cash, therefore it holds cash on hand at period end. An analysis of cash and cash equivalent staging and the corresponding ECL allowances at the year end are as follows: 31.12.2024 Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Cash at bank 33,414,949 - - 33,414,949 Cash on hand 1,046,144 - - 1,046,144 Total 34,461,093 - - 34,461,093 Total ECL calculated - - - - 31.12.2023 Stage 1 Stage 2 Stage 3 Total EUR EUR EUR EUR Cash at bank 26,754,625 - - 26,754,625 Cash on hand 715,843 - - 715,843 Total 27,470,468 - - 27,470,468 Total ECL calculated - - - - The Group has not calculated an ECL allowance for cash and cash equivalents on the basis that placements with banks are of short term nature and the lifetime of these assets under IFRS 9 is so short that the low probability of default would result in immaterial ECL amounts (2023: EUR 0). The Group cooperates with banks with credit ratings no less than BBB-. The Group also does not keep large amounts of funds in one specific bank to limit concentration risk and high exposure to small amount of banks. 31. Disposal groups held for sale In latter part of 2021, management committed to a plan to sell parts of its vehicle finance business operations in Balkan countries and liquidate subsidiary in Bosnia&Herzegovina. Accordingly, several entities were presented as a disposal group held for sale. Also in 2024 the Group has sold its subsidiaries in Belarus, therefore respective entities are disclosed as disposal groups in these consolidated financial statements. As at 31 December 2023 following companies were classified as held for sale or under liquidation and were fully disposed from the Group in 2024: - Mogo Leasing d.o.o., Bosnia&Herzegovina (liquidated) - Rocket Leasing OOO, Belarus (liquidated) - Autotrade OOO, Belarus (sold) - MOGO Kredit LLC, Belarus (sold) Assets and liabilities of disposal groups held for sale 31.12.2024 31.12.2023 EUR EUR ASSETS Mogo Leasing d.o.o., Bosnia&Herzegovina - 35,172 Rocket Leasing OOO, Belarus - 856 Autotrade OOO, Belarus - 2,464 MOGO Kredit LLC, Belarus - 9,518,371 TOTAL ASSETS OF DISPOSAL GROUPS HELD FOR SALE - 9,556,863 LIABILITIES Mogo Leasing d.o.o., Bosnia&Herzegovina - 4,086 Rocket Leasing OOO, Belarus - 382 Autotrade OOO, Belarus - 110 MOGO Kredit LLC, Belarus - 2,040,426 TOTAL LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS HELD FOR SALE - 2,045,004 32. Assets held for sale Other assets held for sale 31.12.2024 31.12.2023 EUR EUR Repossessed collateral (gross) 1,287,988 745,910 Impairment allowance (426,793) (293,855) 861,195 452,055 Changes in other assets held for sale Net changes during the year 31.12.2023 31.12.2024 Repossessed collateral (net) 452,055 409,140 861,195 TOTAL: 452,055 409,140 861,195 Repossessed collaterals are vehicles taken over by the Group in case of default by the Group's clients on the related loan agreements. After the default of the client, the Group has the right to repossess the vehicle and sell it to third parties. The Group does not have the right to repossess, sell or pledge the vehicle in the absence of default by Group's clients. The Group usually sells the repossessed vehicles within 90 days after repossession. There are no balances left unsold from previous reporting period. 33. Share capital, share premium, treasury shares and reserves Share capital On 16 October 2024, Eleving Group S.A. Successfully completed the initial public offering (IPO) and shares of the Company have become traded in Nasdaq Riga Baltic Main List and on the Frankfurt Stock Exchange’s Prime Standard. During IPO the Company issued 17 058 824 new shares with par value of EUR 0.01 each. The subscribed share capital of the Group amounts to EUR 1 171 088 and is divided into 117 108 824 shares fully paid up. The movements on the Share capital caption during the year are as follows: Share capital EUR Number of regular Shares Total number of Shares Opening balance as at 1 January 2023 1,000,500 100,050,000 100,050,000 Subscriptions - - - Redemptions - - - Closing balance as at 31 December 2023 1,000,500 100,050,000 100,050,000 Opening balance as at 1 January 2024 1,000,500 100,050,000 100,050,000 Subscriptions 170,588 17,058,824 17,058,824 Redemptions - - - Closing balance as at 31 December 2024 1,171,088 117,108,824 117,108,824 Share premium As a result of successful IPO the Group has attracted additional equity funding in form of share premium which is comprised as follows: Number of shares issued in IPO 17,058,824 Share price at the end of subscription period; EUR 1.70 Proceeds from shares issued; EUR 29,000,001 Par value of new shares; EUR (170,588) Costs related to IPO; EUR (3,362,379) Share premium 25,467,034 Treasury shares During 30 days after IPO the Group performed purchase of its own share as part of share price stabilisation process. As a result the Group purchased in total 689 558 shares for total amount of EUR 1 146 772 (on average around EUR 1.663 per share). Earnings per share Continued operations Discontinued operations Continued operations Discontinued operations Total Total 2024 2024 2024 2023 2023 2023 EUR EUR EUR EUR EUR EUR Profit for the year 28,803,716 768,112 29,571,828 21,916,100 2,538,954 24,455,054 Number of shares 117,108,824 117,108,824 117,108,824 100,050,000 100,050,000 100,050,000 Earnings per share 0.25 0.01 0.25 0.22 0.03 0.24 Profit attributable to equity holders of the Parent 23,502,987 20,098,665 Earnings per share attributable to equity holders of the Parent 0.20 0.20 Dividends During 2024 the Group paid out dividends to equity holders of the Parent company for total amount of EUR 9 020 262. Amount of paid dividends per share was EUR 0.09. Foreign currency translation reserve As explained in Note 2, foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. Reserves 31.12.2024 31.12.2023 EUR EUR Mandatory reserves in TIGO Finance DOOEL Skopje (North Macedonia) 2,092,386 1,938,924 Reserve in Eleving Finance AS 1,827,058 1,927,058 Mandatory reserve in Renti LT UAB (Lithuania) 353,689 - Mandatory reserve in OCN Sebo Credit SRL (Moldova) 258,187 258,187 Mandatory reserve in Eleving Group S.A. (Luxembourg) 100,050 100,050 Mogo IFN SA (Romania) 52,940 52,940 Mandatory reserve in Mogo Loans SRL (Moldova) 4,733 4,733 Mandatory reserve in Mogo LT UAB (Lithuania) 2,897 2,897 Mandatory reserve in Next Fin LLC (Ukraine) - 2,842 TOTAL: 4,691,940 4,287,631 * - Reserve in Eleving Finance AS consists of 1 827 058 EUR. It was obtained during the integration of EC Finance Group SIA into the Groups equity. Reserve was reduced during financial year as a result of increase of share capital of respective subsidiary by using this reserve. ** - further information disclosed in Note 2. 34. Provisions Non-current 31.12.2024 31.12.2023 EUR EUR Provision for VAT liabilities in Latvia 133,044 123,798 Provision for taxes and duties in Latvia 41,736 33,518 TOTAL: 174,780 157,316 Changes in provisions Additional provisions recognized Unused provisions reversed Provisions used Unwinding of discount 01.01.2024 31.12.2024 Provision for VAT liabilities in Latvia 123,798 - - 9,246 - 133,044 Provision for taxes and duties in Latvia 33,518 8,218 - - - 41,736 157,316 8,218 - 9,246 - 174,780 35. Borrowings Non-current Subordinated borrowings Interest rate per annum (%) Maturity 31.12.2024 31.12.2023 EUR EUR Eleving Group S.A. subordinated bonds nominal value1) 12%+6m Euribor 29/12/2031 - 16,850,000 Bonds acquisition costs - (387,647) TOTAL: - 16,462,353 Bonds Interest rate per annum (%) Maturity 31.12.2024 31.12.2023 EUR EUR Eleving Group S.A. bonds nominal value2) 9.5% 18.10.2026 144,991,000 144,916,000 Eleving Group S.A. bonds nominal value3) 13% 31/10/2028 50,000,000 46,667,200 Bond additional interest accrual - 171,461 Bonds acquisition costs (4,392,355) (5,538,601) TOTAL: 190,598,645 186,216,060 Other borrowings Long term loan from banks4) 3.1% - 20% up to December 2033 5,486,441 3,054,777 Long term loan from fund in Romania5) 10% -12% 31/12/2028 10,000,000 - Lease liabilities for rent of premises6) 2%-12% up to 10 years 6,300,511 6,466,463 Lease liabilities for rent of vehicles6) 2%-12% up to 3 years 504,570 780,696 Financing received from P2P investors7) 6% - 13.55% up to December 2031 30,191,629 21,077,011 Long term borrowings in Kenya8) 9.5%-15.5% 21/06/2027 6,739,370 6,302,336 Long term loans from non related parties in Botswana and Namibia9) 13.25%-18.75% up to December 2028 4,343,979 - Long term borrowings in Albania12) 13.5% 15/04/2027 3,056,546 - Long term loans from non related parties in Luxembourg10) 12%+6M EURIBOR up to August 2027 2,300,000 - Other borrowings11) 17%-22.5% up to August 2027 8,697,983 2,198,622 Loan acquisition costs (656,835) (151,824) TOTAL: 76,964,194 39,728,081 TOTAL NON CURRENT BORROWINGS: 267,562,839 242,406,494 Current Other borrowings Interest rate per annum (%) Maturity 31.12.2024 31.12.2023 EUR EUR Short term loans from banks4) 3.1% - 20% up to December 2025 3,404,266 3,029,560 Accrued interest for loans from banks 149,782 15,906 Lease liabilities for rent of premises6) 2%-12% up to December 2025 4,768,360 3,763,479 Lease liabilities for rent of vehicles6) 2%-12% up to December 2025 299,621 790,450 Financing received from P2P investors7) 6% - 13.55% up to December 2025 29,224,027 42,798,405 Accrued interest for financing received from P2P investors 1,288,764 312,643 Short term loans from non related parties in Botswana and Namibia9) 13.25%-18.75% up to December 2025 7,967,087 12,328,261 Accrued interest for loans from non related parties 293,826 264,992 Short term loans from related parties 14% up to December 2025 1,755,321 100,000 Accrued interest for short term loans from related parties 14,631 - Other borrowings11) 17%-22.5% up to December 2025 18,010,667 11,244,485 Accrued interest for borrowings in Kenya 869,624 375,424 Accrued interest for bonds 3,969,616 3,675,421 Mogo AS 30m bonds nominal value - 17,481,000 TOTAL: 72,015,592 96,180,026 35. Borrowings (continued) 1) On 29 December 2021 Eleving Group S.A. registered with the Latvian Central Depository a bond facility through which it can raise up to EUR 25 million (XS2427362491). The notes are issued at par, have a maturity at 29 of December, 2031 and carry a coupon of 12% + 6 month Euribor per annum, paid monthly in arrears. On 7 March 2022 the bonds were listed on the First North unregulated bond market of NASDAQ OMX Baltic. On 2 December 2024 the Group repaid these liabilities prematurely. As a result of successfully actracting equity funding through IPO process, the Group prematurely repaid its most expensive borrowings, therefore subordinated bonds were paid in 2024. 2) On 18 October 2021, Eleving Group successfully issued a 5-year senior secured corporate bond (XS2393240887), listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange in 2023 for EUR 150 million at par with an annual interest rate of 9.5%. The bond will mature on 18 October 2026. 3) On 31 October 2023, Eleving Group successfully issued a 5-year senior secured corporate bond (DE000A3LL7M4), admitted to trading on Frankfurt Stock Exchange’s and Nasdaq Riga Stock Exchange’s regulated market, for EUR 50 million at par with an annual interest rate of 13%. The bond will mature on 31 October 2028. 4) Loans from banks comprise loans received by: - Renti UAB from bank in Lithuania. The loans are denominated in EUR currency with an interest rates of 3.1%-3.5% plus 3M EURIBOR. - MOGO LOANS SMC LIMITED from bank in Uganda. The loans are denominated in local currency with an interest rate of 20%. - Mogo Armenia from bank in Armenia. The loans are denominated in local currency with an interest rate of 7.5%-14%. - OCN Sebo Credit SRL from bank in Moldova. The loan is denominated in local currency with an interest rate of 16%. - Kredo Finance SHPK (Albania) from Union Bank JSC (Albania) in amount of ALL 150 million and from Tirana Bank JSC (Albania) in the amount of ALL 120 million and interest rate of 10%. 5) At the end of 2023, Mogo IFN signed a new financing agreement with ACP Credit, a leader on the Central European lending market, in order to contract a credit facility totaling EUR 10 million, which was successfully disbursed at the beginning of January 2024. The loan matures within 5 years from the date of disbursement, with variable interest rate and quarterly interest payment. 6) Group has entered into several lease agreements for office premises and branches as well as several vehicle rent agreements, which are accounted under IFRS 16. 7) Attracted funding from P2P platform non-current/ current split is aligned with the related non-current/ current split of the loan agreement which is assigned to investors through the P2P platform. Funds are transferred to Group's bank accounts once per week. 8) On 21 June 2023 Mogo Auto Limited (Kenya) has attracted from VERDANT CAPITAL HYBRID FUND I GMBH & CO. a USD 7 million loan facility consisting of USD 5.5 million senior secured tranche and USD 1.5 million unsecured subordinated tranche. The senior secured tranche has an interest rate of 9.5% + 3m SOFR and the unsecured subordinated tranche of 15.5% + 3m SOFR. The loan facility matures on the fourth anniversary of the agreement. 9) Expresscredit Proprietary Ltd, based in Botswana, has borrowed funds from unrelated non-financial institutions and the Mintos Marketplace AS peer-to-peer lending platform. - Loans from unrelated parties have interest rates ranging from 15% to 17.5% per annum, backed by long-standing relationships. - Borrowings from Mintos are secured by the Company’s customer loans and offer interest rates up to 14.0% per annum as of 31 December 2024. Express Credit Cash Advance (Proprietary) Limited, based in Namibia, has borrowed funds from unrelated non-financial institutions, with interest rates ranging from 13.25% to 18.75% per annum. 10) As of the reporting date, the Parent company's total other long term borrowings from non related parties amounted to EUR 2.3 million. Of this amount, EUR 2.0 million has been borrowed from a non-related corporate entity, while the remaining EUR 0.3 million was provided by private individuals. All borrowings bear an annual interest rate of 12% plus the applicable 6-month EURIBOR rate. The borrowings mature in August 2027. 11) In June 2022, Mogo Auto Limited entered into an agreement for short term note program with Dry Associates Limited, where the later was to manage the placement of funds. The average rate of interest is 15.5% for notes issued in local currency (KES), while EUR and USD notes are issued at 8.3% and 9.3% respectively. 12) ECFA JSC (Albania) Private bond with American Bank of Investment JSC in amount of 300m ALL and interest rate of 13.5%. The bond will mature on 15 April 2027. Subordinated borrowings 01.01.2024 Cash flows Foreign exchange effect Other 31.12.2024 Eleving Group S.A. subordinated bonds nominal value 16,850,000 (16,850,000) - - - TOTAL SUBORDINATED BORROWINGS PRINCIPAL: 16,850,000 (16,850,000) - - - Other borrowings 01.01.2024 Cash flows Foreign exchange effect Other 31.12.2024 Bonds nominal value 209,064,200 (14,058,007) (15,193) - 194,991,000 Financing received from P2P investors 63,875,416 (5,244,632) 784,872 - 59,415,656 Loans from banks 6,084,337 2,268,593 537,777 - 8,890,707 Long term loan from fund in Romania - 9,999,074 926 - 10,000,000 Long term loans from non related parties in Luxembourg - 2,300,000 - - 2,300,000 Short term loans from related parties 100,000 1,655,321 - - 1,755,321 Borrowings in Kenya 17,546,821 5,235,854 1,967,362 - 24,750,037 Borrowings in Albania - 2,979,100 77,446 - 3,056,546 Other borrowings 2,198,622 5,807,965 691,396 - 8,697,983 Short term loans from non related parties in Botswana and Namibia 12,328,261 (328,788) 311,593 - 12,311,066 Lease liabilities 11,801,088 (3,119,372) 271,714 2,919,632 11,873,062 TOTAL OTHER BORROWINGS PRINCIPAL: 322,998,745 7,495,108 4,627,893 2,919,632 338,041,378 TOTAL BORROWINGS PRINCIPAL: 339,848,745 (9,354,892) 4,627,893 2,919,632 338,041,378 Total cash flow of borrowings of EUR -9 354 892 consists of cash inflows EUR 199 164 638, cash outflows of EUR 205 400 158 and payments for lease liabilities in amount of EUR 3 119 372. Acquisition costs and accrued interest 01.01.2024 Cash flows Foreign exchange effect Other 31.12.2024 Bonds acquisition costs (5,926,248) (1,313,699) (40,886) 2,888,478 (4,392,355) Loan acquisition costs (151,824) (671,022) (4,871) 170,882 (656,835) Acquisition costs of borrowings (6,078,072) (1,984,721) (45,757) 3,059,360 (5,049,190) Accrued interest for loans from non related parties 264,992 (1,618,481) 6,290 1,641,025 293,826 Accrued interest for short term loans from related parties - (148,980) - 163,611 14,631 Accrued interest for financing received from P2P investors 312,643 (3,660,907) 3,773 4,633,255 1,288,764 Accrued interest for short term borrowings in Kenya 375,424 (1,468,183) 69,125 1,893,258 869,624 Additional bond interest accrual 3,846,882 (30,107,476) 2,322 30,227,888 3,969,616 Accrued interest for loan from bank 15,906 (480,935) 9,239 605,572 149,782 TOTAL ACQUISITION COSTS AND ACCRUED INTEREST: 4,815,847 (37,484,962) 90,749 39,164,609 6,586,243 TOTAL BORROWINGS: 338,586,520 (48,824,575) 4,672,885 45,143,601 339,578,431 Subordinated borrowings 01.01.2023 Cash flows Foreign exchange effect Other 31.12.2023 Eleving Group S.A. subordinated bonds nominal value 18,956,000 (2,106,000) - - 16,850,000 TOTAL SUBORDINATED BORROWINGS PRINCIPAL: 18,956,000 (2,106,000) - - 16,850,000 35. Borrowings (continued) Other borrowings 01.01.2023 Cash flows Foreign exchange effect Other 31.12.2023 Bonds nominal value 178,876,000 30,188,200 - - 209,064,200 Financing received from P2P investors 67,647,262 (15,266,084) 399,824 11,094,414 63,875,416 Loans from banks 5,495,958 830,421 (242,042) - 6,084,337 Short term loans from related parties - 100,000 - - 100,000 Borrowings in Kenya 7,289,026 13,829,173 (3,571,378) - 17,546,821 Lease liabilities for acquired rental fleet 2,940,308 (2,939,818) (490) - - Lease liabilities 10,096,492 (2,855,262) (768,670) 5,328,528 11,801,088 Short term loans from non related parties in Botswana and Namibia 1,462,811 (14,265,479) 5,112 25,125,817 12,328,261 Other borrowings 198,184 2,318,173 (317,735) - 2,198,622 TOTAL OTHER BORROWINGS PRINCIPAL: 274,006,041 11,939,324 (4,495,379) 41,548,759 322,998,745 TOTAL BORROWINGS PRINCIPAL: 292,962,041 9,833,324 (4,495,379) 41,548,759 339,848,745 Total cash flow of borrowings of EUR 9 833 324 consists of cash inflows EUR 288 281 493, cash outflows of EUR 275 592 907 and payments for lease liabilities in amount of EUR 2 855 262. Acquisition costs and accrued interest 01.01.2023 Cash flows Foreign exchange effect Other 31.12.2023 Bonds acquisition costs (5,310,582) (2,740,283) 54,123 2,070,494 (5,926,248) Loan acquisition costs (131,905) (175,599) 4,380 151,300 (151,824) Acquisition costs of borrowings (5,442,487) (2,915,882) 58,503 2,221,794 (6,078,072) Accrued interest for loans from non related parties 32,516 (1,640,802) (2,997) 1,876,275 264,992 Accrued interest for financing received from P2P investors 489,376 (6,358,270) 17,670 6,163,867 312,643 Accrued interest for short term borrowings in Kenya 188,268 267,847 (80,691) - 375,424 Additional bond interest accrual 3,017,725 (22,952,765) - 23,781,922 3,846,882 Accrued interest for loan from bank 60,914 (605,537) (4,507) 565,036 15,906 TOTAL ACQUISITION COSTS AND ACCRUED INTEREST: 3,788,799 (31,289,527) (70,525) 32,387,100 4,815,847 TOTAL BORROWINGS: 291,308,353 (24,372,085) (4,507,401) 76,157,653 338,586,520 * - mainly consists of accrued expenses and other changes in liabilities which are not a result of direct cash flows. In 2023 also contains changes in liability as a result of obtaining EC Finance SIA group. See Note 42 for additional information about covenants. 36. Prepayments and other payments received from customers 31.12.2024 31.12.2023 EUR EUR Unallocated payments received 610,693 785,587 Received deposits from customers 250,894 253,587 Overpayments from former customers 34,612 36,926 Advances for sold cars 1,192 2,524 Payments received from ceased receivables 4,662 4,930 TOTAL: 902,053 1,083,554 * - Unallocated payments are payments received from former clients after contractual terms are ended and payments received which cannot be identified and allocated to a respective loan and advance to customer balance at 31 December 2024. 37. Taxes payable 31.12.2024 31.12.2023 EUR EUR Value added tax 3,958,304 917,821 Withholding tax 1,645,893 1,271,185 Social security contributions 587,777 503,980 Personal income tax 208,252 227,822 Other taxes 519,571 453,194 TOTAL: 6,919,797 3,374,002 * - please see Note 15 for more information. 38. Derivative financial liabilities 31.12.2024 31.12.2023 EUR EUR Non-current: Non-Deliverable Forward (NDF) Hedge - - Current: Non-Deliverable Forward (NDF) Hedge 5,317,084 - TOTAL: 5,317,084 - The Group has elected to adopt the hedge accounting requirements of IFRS 9 Financial Instruments. The Group enters into hedge relationships where the critical terms of the hedging instrument and the hedged item match, therefore, for the prospective assessment of effectiveness a qualitative assessment is performed. Hedge effectiveness is determined at the origination of the hedging relationship. Quantitative effectiveness tests are performed at each period end to determine the continuing effectiveness of the relationship. As of 31 December 2024, Non-Deliverable Forward hedge contracts have been concluded by AS Eleving Solis (Latvia) and MOGO LOANS LIMITED (Uganda). The effect of Non-Deliverable Forward hedge contracts concluded by AS Eleving Solis are as follows on 31 December: EUR - KES Execution date 07/08/2024 Notional amount 5,000,000 Settlement date 07/08/2025 Carrying amount of derivative 635,328 Variable component 318,691 Cost component 316,637 EUR - UGX Execution date 19/01/2024 Notional amount 15,000,000 Settlement date 21/01/2025 Carrying amount of derivative 2,438,093 Variable component 1,350,111 Cost component 1,087,982 EUR - KES Execution date 05/11/2024 Notional amount 5,000,000 Settlement date 05/05/2025 Carrying amount of derivative 324,551 Variable component 244,599 Cost component 79,952 EUR - KES Execution date 08/11/2024 Notional amount 5,000,000 Settlement date 08/05/2025 Carrying amount of derivative 274,157 Variable component 197,894 Cost component 76,263 TOTAL Notional amount 30,000,000 Carrying amount of derivative 3,672,129 Variable component 2,111,295 Cost component 1,560,834 The effect of Non-Deliverable Forward hedge contract concluded by MOGO LOANS LIMITED is as follows on 31 December: EUR - UGX Execution date 19/01/2024 Notional amount 10,000,000 Settlement date 21/01/2025 Carrying amount of derivative 1,644,955 Variable component 944,288 Cost component 700,667 The total effect of Non-Deliverable Forward hedge contracts concluded by Group companies is as follows on 31 December: Notional amount 40,000,000 Carrying amount of derivatives 5,317,084 Variable component 3,055,583 Cost component 2,261,501 39. Other liabilities 31.12.2024 31.12.2023 EUR EUR Liabilities against employees for salaries 690,778 664,049 Deferred income 421,097 643,591 Other liabilities 1,256,011 594,752 TOTAL: 2,367,886 1,902,392 40. Accrued liabilities 31.12.2024 31.12.2023 EUR EUR Accrued unused vacation 2,017,240 1,895,772 Accruals for bonuses 2,027,169 2,174,311 Other accrued liabilities for received services 3,295,642 1,707,414 TOTAL: 7,340,051 5,777,497 Increase in other accrued liabilities is caused by standard economic activities and overall growth of the Group. 41. Related party disclosures All ultimate beneficial shareholders and entities controlled or jointly controlled by these individuals or close family members of these individuals are deemed as related parties of the Group. All shareholders have equal rights in making decisions proportional to their share value. As at 31 December 2024 and 31 December 2023 none of the ultimate beneficial owners individually controls the Group. All transactions between related parties are performed according to market rates. Receivables and payables incurred are not secured with any kind of pledge. More detailed information about transactions with related parties is provided in Notes 33 and 35. Other related parties are entities which are under control or joint control of the shareholders of the Group, but not part of the Group. The information related to remuneration of the Groups Management Board and council members is provided in Note 13. The income and expense items with related parties for 2024 were as follows: Related party Shareholder controlled companies Other related parties EUR EUR Interest income 116,875 - Management services provided to associated entities - 328,915 The income and expense items with related parties for 2023 were as follows: Related party Shareholder controlled companies Other related parties EUR EUR Interest income 221,079 - Sale of loan receivables to associated entities - 1,008,330 Management services provided to associated entities - 408,422 The receivables and liabilities with related parties as at 31.12.2024 and 31.12.2023 were as follows: 31.12.2024 31.12.2023 EUR EUR Amounts owed by related parties Loans to associated companies 3,308,179 - Trade receivables* 81,678 424,589 Total 3,389,857 424,589 Amounts owed to related parties Payables to associated companies 146,239 275,584 Total 146,239 275,584 * Other short term receivables from related parties contain receivables for provided management services to equity accounted investees. Movement in amounts owed by related parties Amounts owed by related parties EUR Amounts owed by related parties as of 01 January 2023 3,334,516 Receivables repaid in period (2,909,927) Amounts owed by related parties as of 31 December 2023 424,589 Amounts owed by related parties as of 01 January 2024 424,589 Receivables incurred in period 2,965,268 Amounts owed by related parties as of 31 December 2024 3,389,857 Movement in amounts owed to related parties Amounts owed to related parties EUR Amounts owed to related parties as of 01 January 2023 444,894 Change in other payables (75,041) Dividends calculated for shareholders 10,007,731 Dividends paid to shareholders (10,102,000) Amounts owed to related parties as of 31 December 2023 275,584 Amounts owed to related parties as of 01 January 2024 275,584 Change in other payables (129,345) Dividends calculated for shareholders 12,308,146 Dividends paid to shareholders (12,308,146) Amounts owed to related parties as of 31 December 2024 146,239 42. Commitments and contingencies Externally imposed regulatory capital requirements The Group considers both equity capital as well as borrowings a part of its overall capital risk management strategy. The Group is subject to externally imposed capital requirements in several countries. The main requirements are listed below: Albania Acquired license on performing financing activities requires to maintain amount of equity at all times not lower than 10% of the total assets of the entity. Management of the Group monitors and increases the share capital if needed to satisfy this requirement. Armenia Acquired license on performing financing activities require: 1) To maintain minimum amount of statutory capital of 150mln AMD; 2) To maintain minimum amount of total capital of 150mln AMD; 3) To maintain minimum ratio of amounts of total capital and risk-weighted assets at 10%. Management of the Group monitors and increases the share capital if needed to satisfy this requirement. Romania Acquired license on performing financing activities require to ensure the level of equity is not less than company's finance receivables portfolio divided 15 times. Management of the Group monitors and increases the share capital or issues subordinated loans l if needed to satisfy this requirement. 42. Commitments and contingencies (continued) North Macedonia Acquired license on performing financing activities require to ensure that the loan portfolio limit is set as share capital multiplied by 10. Moldova The non-bank credit organization is required to hold and maintain its own capital in relation to the value of the assets at any date in the amount of at least 5%. Botswana In terms of Regulation 6 of the Micro-Lending Regulations, any person applying to carry on a business as a micro lender shall have and maintain at all times a minimum financial balance of P20,000 (Twenty Thousand Pula). Zambia As at 31st December 2024, the subsidiary in Zambia did not meet the minimum capital requirements as per the Bank of Zambia regulations. On the 19th December 2024, the subsidiary reclassified a portion of its related party loan, an amount of ZMW 43 299 400, to secondary capital as part of its ongoing capital management strategy. This reclassification is subject to approval by the Bank of Zambia. Once approved, the subsidiary's capital position will be strengthened and will reflect an improvement over the figures reported in the local standalone audited financial statements. Cooperation agreement with P2P platforms Cooperation agreements with P2P platforms require to maintain positive amount of equity at all times in Albania, Armenia, Estonia, Georgia, Kenya, Latvia, Lithuania, Moldova, North Macedonia, Romania and Botswana. Management of the Group monitors and increases the share capital if needed to satisfy this requirement. The Group is subject to additional financial covenants relating to its attracted funding through P2P platform. Group is regularly monitoring respective indicators and ensures that covenants are satisfied. The Group is in compliance during the entire reporting period. Eleving Group S.A. bonds There are restrictions in the prospectus for the bonds issued on the Frankfurt Stock exchange (ISIN (XS2393240887 and DE000A3LL7M4)). These financial covenants are the following: (a) the Interest Coverage Ratio for the Relevant Period is at least 1.25; (b) the Capitalization Ratio for the Relevant Period is at least 15%; and (c) the Consolidated Net Leverage Ratio for the Relevant Period does not exceed 6.00x. There are other limitations regarding additional and permitted debt, restricted and permitted payments, permitted loans and securities. The Group is in compliance with all covenants during the entire reporting period. Other contingent liabilities and commitments 1) Starting from 14 October 2021 Eleving Group and certain of its Subsidiaries entered into several pledge agreements with TMF Trustee Services GmbH, establishing pledge over shares of those Subsidiaries, pledge over present and future loan receivables of those Subsidiaries, pledge over trademarks of those Subsidiaries, general business pledge over those Subsidiaries, pledge over primary bank accounts if feasible, in order to secure Eleving Group obligations towards bondholders deriving from Eleving Group bonds (ISIN: XS2393240887). Subsequently additional pledgors were added who became material (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) according to terms and conditions of the bonds. 2) Starting from 14 October 2021 Eleving Group as Issuer and certain of its Subsidiaries (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) as Guarantors have entered into a guarantee agreement dated 14 October 2021 (as amended and restated from time to time) according to which the guarantors unconditionally and irrevocably guaranteed by way of an independent payment obligation to each holder of the Eleving Group bonds (ISIN: XS2393240887) the due and punctual payment of principal of, and interest on, and any other amounts payable under the Eleving Group bonds (ISIN: XS2393240887) offering memorandum. 3) On 12 December 2018 the subsidiary in Latvia - mogo AS issued guarantee letters for the benefit of SIA Skanste City (previously SWH Grupa JSC) to secure other Subsidiary Eleving Vehicle Finance JSC (previously Mogo Group JSC) obligations from the secured office space lease agreements concluded on 12 December 2018. According to the guarantee letters the Company undertook to fulfil Eleving Vehicle Finance JSC obligations towards SIA Skanse City if they are overdue on liabilities under the agreements terms. The guarantees expire if the lease agreements are amended, renewed without prior written approval by the Company and is effective for the entire duration of the respective lease agreements. At the beginning of 2020 both lease agreements were amended and the Company provided the new guarantee to secure only obligations of Eleving Vehicle Finance JSC. 4) On 22 July, 2020 O.C.N. Sebo Credit issued guarantee favour of private individual Tamara Paun to secure repayment of the loan issued by Tamara Paun to Rodica Paun. The loan was used to provide a subordinated loan to O.C.N. Sebo Credit. 5) The Group has signed Covenant Agreements with P2P platform companies AS Mintos Marketplace and Mintos Finance OU according to which the Group secures P2P platform's claims towards the subsidiaries if certain subsidiaries cooperating with P2P platform fail to perform their obligations. The claims are limited by amounts borrowed by each subsidiary. 6) The Group has signed Guarantee Agreements with P2P platform companies AS Mintos Marketplace, SIA Mintos Finance No.1 and Mintos Finance Estonia OU according to which the Group secures P2P platform's claims towards the subsidiaries if certain subsidiaries cooperating with P2P platform fail to perform their obligations. The claims are limited by amounts borrowed by each subsidiary. 7) Certain subsidiaries of the Group have entered into a commercial pledge agreements with SIA Mintos Finance No.1 and/or Mintos Finance Estonia OU, in order to secure those Group subsidiary obligations towards AS Mintos Marketplace, SIA Mintos Finance No.1 and Mintos Finance Estonia OU deriving from cooperation agreements entered into between the respective subsidiary and AS Mintos Marketplace, SIA Mintos Finance No.1 and/or Mintos Finance Estonia OU. 8) The Group's subsidiary AS Eleving Vehicle Finance (Latvia) has entered into a put option agreement with Ropat Trust Company Limited according to which AS Eleving Vehicle Finance undertakes to purchase Mogo Auto Limited (Kenya) secured revolving loan notes up to two billion Kenya Shillings in case of default of Mogo Auto Limited under the terms and conditions of the short term notes programme and Mogo Auto Limited (Kenya) secured revolving loan notes up to two billion Kenya Shillings in case of default of Mogo Auto Limited under the terms and conditions of the medium term notes programme. 9) The Group's subsidiary AS Eleving Stella (Latvia) has entered into a guarantee agreement with SIA Citadele Leasing in order to secure SIA Citadele Leasing claims towards AS Renti under several financial leasing agreements entered between AS Renti and SIA Citadele Leasing. 10) The Group's subsidiary Mogo Auto Limited (Kenya) has entered into a deed of assignment and Ropat Trust Company Limited (acting on behalf of the noteholders) in order to secure Mogo Auto Limited (Kenya) liabilities towards the noteholders under the terms and conditions of Mogo Auto Limited (Kenya) secured revolving short term notes and medium term notes programmes. 11) Eleving Group has provided a guarantee to VERDANT CAPITAL HYBRID FUND I GMBH & CO. KG with the aim to secure punctual performance by Mogo Auto Limited (Kenya) of all Mogo Auto Limited (Kenya) obligations under the Finance Documents relating to USD 7,000,000 loan facility provided by VERDANT CAPITAL HYBRID FUND I GMBH & CO. 12) Mogo Auto Limited has entered into an account charge agreement creating a security interest over the accounts of Mogo Auto Limited and a fixed and floating charge agreement creating a security interest over specified receivable assets of Mogo Auto Limitedin order to secure Mogo Auto Limited (Kenya) obligations under the Finance Documents relating to USD 7,000,000 loan facility provided by VERDANT CAPITAL HYBRID FUND I GMBH & CO. 42. Commitments and contingencies (continued) 13) The Group's subsidiary AS Eleving Vehicle Finance (Latvia) has entered into a guarantee agreement with AS Industra Bank according to which AS Eleving Vehicle Finance guarantees SIA Spaceship loan liabilities against AS Industra Bank in the total amount of for 918 825,00 EUR. 14) On 30 March 2023 Express Credit Cash Advance (Proprietary) Limited, registered in Namibia, has entered into Pledge and Cession Agreement (Account Pledge) establishing a pledge over the funds in the bank accounts of Express Credit Cash Advance (proprietary) Limited, and in Cession in Security agreement ceding the rights over Loan book and insurance, in favour of trustees of Private Capital Trust, in order to secure Express Credit Cash Advance (Proprietary) Limited obligations towards Private Capital Trust trustees deriving from Loan Agreement dated 30 March 2023. The Loan Agreement is separated into three tranches. The second tranche was on 23 February 2024, and the third tranche was on 15 March 2024. 15) On 6 May 2022 ExpressCredit (Pty) Limited, registered in Botswana, has signed Cession in Security Agreement No. LVMM/06-07-2021-125 with P2P platform company SIA Mintos Finance No. 8, ceding the rights over loan agreement portfolio (loan agreements entered into between ExpressCredit (Pty) Limited and its customers, book debts and loan receivables) to ensure timely and proper performance of obligations by ExpressCredit (Pty) Limited towards SIA Mintos Finance No. 8 derived from Cooperation Agreement dated 6 May 2022. 16) On 22 December 2021 ExpressCredit (Pty) Limited, registered in Botswana, has entered into Cession in Security agreement with Norsad Finance Limited, ceding the rights over book debts to ensure timely and proper performance of obligations by ExpressCredit (Pty) Limited towards Norsad Finance Limited derived from the Credit Facility Agreement dated 20 December 2020. In addition, with the Credit Facility Agreement simultaneously is also guarantee established by YesCash Group Limited (now - Eleving Consumer Finance Mauritius Ltd) to ensure proper performance of obligations by ExpressCredit (Pty) Limited in favour of Norsad Finance Limited. 17) Starting from 31 October 2023 Eleving Group and certain of its Subsidiaries entered into several pledge agreements with TMF Trustee Services GmbH, establishing pledge over shares of those Subsidiaries, pledge over present and future loan receivables of those Subsidiaries, pledge over trademarks of those Subsidiaries, general business pledge over those Subsidiaries, pledge over primary bank accounts if feasible, in order to secure Eleving Group obligations towards bondholders deriving from Eleving Group bonds (ISIN: DE000A3LL7M4). 18) Starting from 31 October 2023 Eleving Group as Issuer and certain of its Subsidiaries (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) as Guarantors have entered into a guarantee agreement dated 31 October 2023 according to which the guarantors unconditionally and irrevocably guaranteed by way of an independent payment obligation to each holder of the Eleving Group bonds (ISIN: DE000A3LL7M4) the due and punctual payment of principal of, and interest on, and any other amounts payable under the Eleving Group bonds (ISIN: DE000A3LL7M4). 19) On 18 December 2023 ACP CREDIT I SCA SICAV-RAIF has made available to MOGO IFN S.A. (Romania) a facility amounting to EUR 10,000,000. The ACP Facility has a 48-month maturity with an amortised loan repayment schedule and carries an interest rate of 11.6% in the first year, 10.8% in second year and 8% + 3m EURIBOR thereafter. The ACP Facility is secured with a movable mortgage on loan receivables and separate bank account of MOGO IFN S.A. (Romania), a commercial pledge over AS Eleving Stella subordinated loan receivables from MOGO IFN S.A. (Romania) and a guarantee from AS Eleving Vehicle Finance. 20) On 18 December 2023 Union Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) concluded a Loan Agreement (Installment Loan), under which the bank made funds available to Kredo amounting to 150'000'000 Albanian Leke. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio for the minimum value of 195'000'000.00 ALL or 130% of the remaining value of the loan according to a specific list of loans attached to the Security Agreement. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement. In addition to the loan portfolio provided by Kredo to the bank as a security, Kredo's majority shareholder AS Eleving Consumer Finance Holding also provided its corporate guarantee to ensure the rights and obligations of Kredo arising out of the Loan Agreement. 21) On 18 December 2023 Tirana Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) and Eleving Group as Guarantor concluded a Loan Agreement (Overdraft Agreement), under which the bank made funds available to Kredo amounting to 120'000'000 Albanian Leke. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio (loans receivables) for the minimum value of 156'000'000.00 ALL or 130% of the loan value. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement. In addition to the loan portfolio (loans receivables) provided by Kredo to the bank as a security, Eleving Group also became a guarantor of rights and obligations of Kredo arising out of the concluded Guarantee Agreement and Loan Agreement. 22) On 29 December 2023, Eleving Group has provided a guarantee in favour of MFX Solutions whereby Eleving Group absolutely, unconditionally and irrevocably guarantees on all transactions of Eleving Group subsidiary AS Eleving Solis makes under ISDA Master Agreement entered into between AS Eleving Solis and MFX Solutions. 23) On 21 February 2024 FI Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) concluded a Loan Agreement, under which the bank made funds available to Kredo amounting to 100'000'000 Albanian Lek. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio (loans receivables) for the minimum value of 130'000'000.00 ALL or 130% of the loan value. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement. 24) On 1 August 2024, Eleving Group and AS Eleving Solis has provided a letter of guarantee and indemnity in favour of I&M Bank (Kenya) whereby Eleving Group and AS Eleving Solis absolutely, unconditionally and irrevocably guarantees on Mogo Auto Limited (Kenya) debt liabilities towards I&M Bank (Kenya) under the KES 500,000,000 credit facility dted 19 July 2024. 25) On 10 October 2024, Eleving Group has provided professional payment guarantee in favour of Absa Bank Uganda Limited whereby Eleving Group and AS Eleving Solis absolutely, unconditionally and irrevocably guarantees on MOGO Loans (Uganda) debt liabilities towards Absa Bank Uganda Limited under the UGX 19,000,000,000 credit facility dated 25 September 2024. 26) On 2 October 2024, Mogo Loans (Uganda) entered into a specific debenture agreement with Absa Bank Uganda Limited, whereby Mogo Loans (Uganda) provided a debenture over a portion of it's net loan book not voer 60 days past due with minimum collateral cover equivalent to 120% of Absa Bank Uganda Limited debt exposure or UGX 22,800,000,000. 27) On 4 November 2024, Eleving Group has entered into a deed of guarantee and indemnity agreement, whereby Eleving Group agreed to guarantee and indemnity Cambridge Mercantile Corp. (UK) Limited and/or Cambridge Mercantile Risk Management (UK) Ltd. Eleving Consumer Finance Mauritius Limited liabilities under one or more agreement under which Corpay provides certain foreign currency exchange and/or payment services to Eleving Consumer Finance Mauritius Limited. 43. Financial risk management The risk management function within the Group is carried out in respect of financial risks, operational risks and legal risks. Financial risk comprises market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure to risks stays within these limits. The operational and legal risk management functions are intended to ensure proper functioning of internal policies and procedures, in order to minimize operational and legal risks. Operational risks The Group takes on exposure to certain operational risks, which result from general and specific market and industry requirements. Compliance risk Compliance risk refers to the risk of losses or business process disruption resulting from inadequate or failed internal processes systems, that have resulted in a breach of applicable law or other regulation currently in place. 43. Financial risk management (continued) Regulatory risks Group’s operations are subject to regulation by a variety of consumer protection, financial services and other state authorities in various jurisdictions, including, but not limited to, laws and regulations relating to consumer loans and consumer rights protection, debt collection and personal data processing. Formal licences issued by respective regulators are required in all countries where the Group operates in, except for Lithuania, Georgia, Moldova and Uzbekistan. The Group closely monitors all the changes in regulatory framework for each of the countries it operates in. The Group employs both in-house as well as outsourced legal specialists to assist in addressing any current or future regulatory developments that might have an impact on Group’s business activities. Regulatory changes in Romania During 2024, significant regulatory developments took place in Romania, notably the enactment of Law No. 243/2024, which introduced caps on the effective annual interest rates (APR) for certain categories of loans granted by non-banking financial institutions (NBFIs). These changes reflect broader market efforts to enhance consumer protection and transparency in lending practices. The Group has assessed the implications of this new legislation and implemented necessary adjustments to ensure full compliance with the applicable regulatory requirements. See further information on regulatory matters in Note 42. Anti-money laundering and Know Your Customer laws compliance risk The Group is subject to anti-money laundering laws and related compliance obligations in most of the jurisdictions in which it does business. The Group has put in place local anti-money laundering policies in those jurisdictions where it is required under local law to do so and in certain other jurisdictions. As a financial institution, the Group is required to comply with anti-money laundering regulations that are generally less restrictive than those that apply to banks. As a result, the Group often relies on anti-money laundering and know your customer checks performed by our customers’ banks when such customers open new bank accounts, however Group has implemented further internal policies to minimise these risks. Group has put in place internal control framework to identify and report all suspicious transactions with a combination of IT based solutions and human involvement. Internal policies of the Group typically include customers’ background check against sanctioned lists and other public sources as required by each local law. Privacy, data protection compliance risk The Group’s business is subject to a variety of laws and regulations internationally that involve user privacy, data protection, advertising, marketing, disclosures, distribution, electronic contracts and other communications, consumer protection and online payment services. The Group has put in place an internal control framework consisting from a combination of IT based solutions and business procedures that are designed to capture any potential non-compliance matter before it has occurred and to ensure compliance with these requirements. Market risks The Group takes on exposure to market risks, which are the risks that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and currency products, all of which are exposed to general and specific market movements and changes in the level of volatility or market rates or prices such as interest rates and foreign exchange rates. Financial risks The main financial risks arising from the Group’s financial instruments are foreign currency risk, interest rate risk, liquidity risk, and credit risk. Foreign currency risk The Group accepts the currency risk by issuing loans in local currencies and funding local operations mostly with EUR. Further currency risk is managed transaction wise by avoiding unnecessary conversions back and forth to settle payments and invoices in EUR. Also Group is constantly looking for ways to fund local country operations with local currency funds. The currency risk is defined as the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Group is exposed to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The most significant foreign currency exposure comes from Armenia, Georgia, Moldova, Kenya, Uganda, and Uzbekistan, where Group has evaluated potential hedging options, but due to the costs associated with it, has decided not to pursue hedging strategy for now and assume potential short to mid-term currency fluctuations with retaining potential upside from strengthening in those currencies. The Group has always operated with a forex loss being a legitimate and always present cost item that was adequately priced within each non-EUR country's product portfolio. It is expected that Group’s exposure to volatile foreign currencies will be continuing to decrease in future with Group’s divestment of several of its subsidiaries. Additionally, the Group has started to proactively manage to foreign currency exposure risk towards USD, since in several of Group’s largest markets local loan portfolios are linked to USD. The proactive management of USD exposure can be observed by forward contract purchases that have started already in 2020 and continued since then. The U.S. imposed (but currently paused for 90 days) tariffs in early 2025 are a very recent action whose longer-term actual implications are very hard (or virtually impossible) to assess reliably in the mid or longer term. Currently it is virtually impossible to gauge any reasonable near-term outlook both at macroeconomic as well as the Group's levels. However, thr Group remains alert to possible second-order effects on global funding (especially high-yield credit) markets as well as foreign currency markets both of which might impact the Group's future growth plans in the existing and new markets and generally the Group's appetite towards larger portfolios in non-EUR emerging markets. Assets and liabilities exposed to foreign currencies fluctuation risk as at 31 December 2024: Foreign exchange contracts Net assets exposed to currency risk Currency Equity and liabilities Assets in EUR in EUR in EUR in EUR ALL (Albania)* 43,946,188 (21,707,150) - 22,239,037 AMD (Armenia) 19,391,726 (14,090,628) - 5,301,097 BWP (Botswana) 21,412,065 (20,549,976) - 862,089 GEL (Georgia) 21,522,843 (21,216,361) - 306,482 KEL (Kenya) 57,841,661 (44,129,874) (15,000,000) (1,288,213) LSL (Lesotho) 3,459,750 (421,508) - 3,038,242 MDL (Moldova) 26,009,687 (17,212,333) - 8,797,355 MKD (North Macedonia)* 24,842,678 (14,148,489) - 10,694,190 NAD (Namibia) 20,306,645 (10,185,966) (10,250,000) (129,321) RON (Romania)* 47,588,654 (10,883,367) - 36,705,288 SZL (Eswatini) 2,379 (2,292) - 87 UAH (Ukraine) 1,279,943 605,716 - 1,885,659 UGX (Uganda) 34,566,981 (14,102,728) (25,000,000) (4,535,747) USD (Group) 15,477,573 (16,392,380) - (914,807) UZS (Uzbekistan) 13,644,721 (3,284,077) - 10,360,644 ZMW (Zambia) 12,805,646 (3,720,223) - 9,085,424 TOTAL: 364,099,138 (211,441,634) (50,250,000) 102,407,504 excluding currencies with currency rate fluctuations below 5% over the last three years 247,721,618 (164,702,629) (50,250,000) 32,768,990 * - currency has not fluctuated more than 5% during last 3 years. 43. Financial risk management (continued) Assets and liabilities exposed to foreign currencies fluctuation risk as at: 31 December 2023: Foreign exchange contracts Net assets exposed to currency risk Currency Equity and liabilities Assets in EUR in EUR in EUR in EUR ALL (Albania)* 38,142,013 (21,346,733) - 16,795,280 AMD (Armenia) 14,299,457 (8,745,835) - 5,553,623 BYR (Belarus) 1,431,951 (728,057) - 703,895 GEL (Georgia) 21,436,604 (19,443,418) - 1,993,186 KEL (Kenya) 32,364,407 (18,083,658) - 14,280,749 MDL (Moldova) 40,113,979 (15,108,211) - 25,005,768 MKD (North Macedonia)* 25,785,315 (11,070,868) - 14,714,447 RON (Romania)* 34,578,737 (2,987,459) - 31,591,278 UAH (Ukraine) 2,956,528 241,987 - 3,198,515 UGX (Uganda) 29,242,422 (5,236,855) - 24,005,567 USD (Group) 35,436,845 (14,380,483) (71,350,000) (50,293,638) UZS (Uzbekistan) 13,054,932 (1,505,292) - 11,549,640 BWP (Botswana) 17,365,335 (7,999,159) - 9,366,176 ZMW (Zambia) 5,007,424 (3,045,941) - 1,961,483 LSL (Lesotho) 2,305,927 (14,519) - 2,291,408 SZL (Eswatini) 2,366 (2,281) - 84 NAD (Namibia) 9,588,106 (2,548,951) - 7,039,156 TOTAL: 323,112,348 (132,005,732) (71,350,000) 119,756,616 excluding currencies with currency rate fluctuations below 5% over the last three years 224,606,284 (96,600,673) (71,350,000) 56,655,611 * - currency has not fluctuated more than 5% during last 3 years. An analysis of sensitivity of the Group’s net assets to changes in foreign currency exchange rates based on positions existing as at 31 December 2024 and 31 December 2023 and a simplified scenario of a +/- 5% change in respective currency to EUR exchange rates (which is considered a reasonable historical approximation of average currency fluctuations) is as follows*: Foreign currency rate risk exposure 31.12.2024 31.12.2023 in EUR in EUR ALL currency +/- 1,111,952 +/- 839,764 AMD currency* +/- 530,110 +/- 555,362 BYR currency* - +/- 70,389 GEL currency* +/- 30,648 +/- 199,319 KEL currency* +/- 128,821 +/- 1,428,075 MDL currency +/- 439,868 +/- 1,250,288 MKD currency +/- 534,709 +/- 735,722 RON currency +/- 1,835,264 +/- 1,579,564 UAH currency* +/- 188,566 +/- 319,851 UGX currency* +/- 453,575 +/- 2,400,557 USD currency +/- 45,740 +/- 2,514,682 UZS currency* +/- 1,036,064 +/- 1,154,964 BWP currency* +/- 86,209 +/- 936,618 ZMW currency* +/- 908,542 +/- 196,148 LSL currency* +/- 303,824 +/- 229,141 SZL currency* +/- 9 +/- 8 NAD currency* +/- 12,932 +/- 703,916 TOTAL: +/- 7,646,833 +/- 15,114,368 * - Due to historical fluctuations and higher risk of future significant fluctuations a higher sensitivity rate of 10% has been used for these currencies. An analysis of sensitivity of the Group’s net profit to changes in foreign currency exchange rates based on positions existing as at 31 December 2024 and 31 December 2023 and a simplified scenario of a +/- 5% change in respective currency to EUR exchange rates (which is considered a reasonable historical approximation of average currency fluctuations) is as follows: Foreign currency rate risk exposure 31.12.2024 31.12.2023 in EUR in EUR ALL currency +/- 579,106 +/- 424,505 AMD currency +/- 164,007 +/- 65,185 BWP currency +/- 124,924 +/- 71,373 BYR currency +/- 23,634 +/- 66,112 GEL currency +/- 208,214 +/- 180,765 KEL currency +/- 41,408 +/- 145,000 LSL currency +/- 15,496 +/- 6,415 MDL currency +/- 291,199 +/- 370,080 MKD currency +/- 297,312 +/- 130,780 NAD currency +/- 140,062 +/- 17,144 RON currency +/- 65,662 +/- 8,719 SZL currency +/- 3 +/- 4 UAH currency +/- 22,401 +/- 27,118 UGX currency +/- 156,824 +/- 138,308 UZS currency +/- 79,409 +/- 30,127 ZMW currency +/- 7,918 +/- 31,824 TOTAL: +/- 2,217,579 +/- 1,713,459 Interest rate risk The Company is exposed to interest rate risk through its floating coupon notes in Kenya (9.5%-15.5%). However, due to its relatively low size in terms of total borrowings (2.0% from total borrowings as at end of 2024), which in turn are fixed rate, the Group believes its revenue will be sufficient to cover the increased borrowings costs. 43. Financial risk management (continued) Financial risks Capital risk management The Group considers both equity capital as well as borrowings a part of overall capital risk management strategy. The Group manages its capital to ensure that it will be able to continue as going concern. In order to maintain or adjust the capital structure, the Group may attract new credit facilities or increase its share capital. The Group fulfils externally imposed equity capital requirements as stated in Note 42. The Group monitors equity capital on the basis of the capitalization ratio as defined in Eurobond prospectus. This ratio is calculated as Net worth (the sum of paid in capital, retained earnings, reserves and shareholder loan) divided by Net Loan portfolio. As of end of reporting year the capitalization ratio was 29.3% (2023: 26.1%). In order to maintain or adjust the overall capital structure, the Group may issue new bonds, borrow in P2P platform or sell assets to reduce debt. The management of the borrowings is driven by monitoring and complying the lender imposed covenants as well as planning the further borrowing needs to ensure business development of the Group. Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages its liquidity risk by arranging an adequate amount of committed credit facilities with related parties, P2P investors and by issuing bonds. The Group monitors daily cash flows and plans for milestone dates for cash outflows to cover major liabilities like semi-annual interest payments for Eurobonds. The Group regulates its issuances of new loans to ensure the adequate funds are available when upcoming larger settlement of liabilities is approaching. The table below presents the cash flows payable by the Group and to the Group under non-derivative financial liabilities and assets held for managing liquidity risk by remaining contractual maturities at the date of the statement of financial position. The amounts disclosed in the table are the contractual undiscounted cash flow. Cash flow payable for borrowings includes estimated interest payments assuming principal is paid in full at maturity date. Contractual cash flows Carrying value More than 5 years Total As at 31.12.2024 On demand Up to 1 year 1-5 years EUR EUR EUR EUR EUR Assets Cash in bank 34,461,093 34,461,093 - - - 34,461,093 Loans and advances to customers 369,166,009 - 361,570,352 314,564,532 25,122,688 701,257,572 Loans to related parties 3,308,178 - 55,321 4,229,841 - 4,285,162 Trade receivables 2,164,840 - 2,164,840 - - 2,164,840 Other loans and receivables 155,309 - 10,269 - - 10,269 Total undiscounted financial assets 409,255,429 34,461,093 363,800,782 318,794,373 25,122,688 742,178,936 Liabilities Borrowings* (339,578,431) - (100,237,905) (339,161,523) (1,572,781) (440,972,209) Derivative financial liabilities (5,317,084) - (5,317,084) - - (5,317,084) Other current liabilities (12,590,615) - (12,590,615) - - (12,590,615) Total undiscounted financial liabilities (357,486,130) - (118,145,604) (339,161,523) (1,572,781) (458,879,908) Net undiscounted financial assets/ (liabilities) 51,769,299 34,461,093 245,655,178 (20,367,150) 23,549,907 283,299,028 * - borrowings contain balances from P2P lenders which might require earlier repayment due to 'buy back' guarantee. Carrying amount of such liabilities is 59 415 656 EUR. See Note 2 for further information on 'buy back' guarantee. Contractual cash flows Carrying value More than 5 years Total As at 31.12.2023 On demand Up to 1 year 1-5 years EUR EUR EUR EUR EUR EUR Assets Cash in bank 27,470,468 27,470,468 - - - 27,470,468 Loans and advances to customers 313,204,155 - 331,613,080 315,228,214 22,324,441 669,165,735 Loans to related parties - - - - - - Trade receivables 1,606,770 - 1,606,770 - - 1,606,770 Other loans and receivables 374,357 - 180,096 27,826 - 207,922 Total undiscounted financial assets 342,655,750 27,470,468 333,399,946 315,256,040 22,324,441 698,450,895 Liabilities Borrowings* (322,124,166) - (114,282,330) (293,195,656) (6,626,662) (414,104,648) Other current liabilities (10,988,315) - (10,988,315) - - (10,988,315) Total undiscounted financial liabilities (333,112,481) - (125,270,645) (293,195,656) (6,626,662) (425,092,963) Net undiscounted financial assets/ (liabilities) 9,543,269 27,470,468 208,129,301 22,060,384 15,697,779 273,357,932 * - borrowings contain balances from P2P lenders which might require earlier repayment due to 'buy back' guarantee. Carrying amount of such liabilities is 63 875 416 EUR. See Note 2 for further information on 'buy back' guarantee. 43. Financial risk management (continued) Credit risk The Group is exposed to credit risk through its loans and advances to customers, loans to associated companies, trade and other receivables as well as cash and cash equivalents. Maximum credit risk exposure is represented by the gross carrying value of the respective financial assets. The key areas of credit risk policy cover loan granting process (including solvency check of the loan), monitoring methods, as well as decision making principles. 31.12.2024 31.12.2023 EUR EUR Loans and advances to customers 465,267,936 406,859,573 Loans to associated companies 3,308,179 - Trade and other receivables 4,066,282 4,694,748 Cash and cash equivalents 34,461,093 27,470,468 TOTAL: 507,103,490 439,024,789 The Group collateralizes and provides loans in amount of no more than 85% of the market values of the collateral. The Group operates by applying a clear set of loan granting criteria. This criteria includes assessing the credit history of customer, means of loan repayment and understanding the loan object. The Group takes into consideration both quantitative and qualitative factors when assessing the creditworthiness of the customer. Based on this analysis, the Group sets the credit limit for each and every customer. When the loan agreement has been signed, the Group monitors the loan object and customer’s solvency. The Group has developed loan monitoring process so that it helps to quickly spot any possible non-compliance with the provisions of the agreement. The receivable balances are monitored on an ongoing basis to ensure that the Group’s exposure to bad debts is minimized, and, where appropriate, provisions are being made. The Group does not have a significant credit risk exposure to any single counterparty, but has risk to group of counterparties having similar characteristics. Excessive risk concentration Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry or geographical location. In order to avoid excessive concentrations of risk, the Group is maintaining a diversified portfolio. It’s main product is subprime loans, however it is offering also near prime loans, as well as instalment loan and long-term rent products. The concentration risk on Groups financial assets (based on net exposure) is the following: 31.12.2024 31.12.2023 EUR EUR Kenya 50,084,853 46,435,188 Romania 46,446,880 33,481,634 Albania 41,597,468 36,941,231 Moldova 37,950,549 37,935,566 Lithuania 32,142,389 34,308,971 Uganda 31,040,036 24,609,498 Luxembourg 27,856,140 8,477,994 North Macedonia 23,507,516 23,518,504 Botswana 20,096,869 16,288,324 Georgia 20,061,553 19,768,338 Namibia 18,189,044 8,477,667 Armenia 18,110,654 13,340,306 Uzbekistan 12,839,220 11,929,791 Estonia 12,655,273 11,360,545 Zambia 11,077,347 4,156,237 Lesotho 3,243,440 2,046,890 Mauritius 1,320,142 679,367 Ukraine 843,181 2,468,167 Latvia 190,276 6,421,446 Finland 220 7,720 Eswatini 2,379 2,366 TOTAL: 409,255,429 342,655,750 Climate-related risk ‘Climate-related risks’ are potential negative impacts on the Group arising from climate change. Climate-related risks have an impact on the principal risk categories discussed above (i.e. credit, liquidity, market and operational risks), but due to their pervasive nature have been identified and managed by the Group on an overall basis. The Group distinguishes between physical risks and transition risks. Physical risks arise as the result of acute weather events such as hurricanes, floods and wildfires, and longer-term shifts in climate patterns, such as sustained higher temperatures, heat waves, droughts and rising sea levels. Transition risks arise as a result of measures taken to mitigate the effects of climate change and transition to a low-carbon economy - e.g. changes to laws and regulations, litigation due to failure to mitigate or adapt, and shifts in supply and demand for certain commodities, products and services due to changes in consumer behaviour and investor demand. The Group has incorporated Climate related risks into a broader ESG policy that aims to assess the materiality of focus areas as well as defines future goals for 2026 (including climate related ones). 44. Fair value of financial assets and liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability, or - In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: - Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities - Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable - Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Instruments within Level 1 include highly liquid assets and standard derivative financial instruments traded on the stock exchange. Fair value for such financial instruments as Financial assets at fair value through profit and loss is mainly determined based on publicly available quoted prices (bid price, obtainable from Bloomberg system). 44. Fair value of financial assets and liabilities (continued) Instruments within Level 2 include assets, for which no active market exists, such as over the counter derivative financial instruments that are traded outside the stock exchange, bonds, as well as balances on demand with the central banks, balances due from banks and other financial liabilities. Bonds fair value is observable in Frankfurt Stock Exchange public information. Fair value of bank loans is based on effective interest rate which represents current market rate to similar companies. The management recognizes that cash and cash equivalents' fair value is the same as their carrying value therefore the risk of fair value change is insignificant. Instruments within Level 3 include loans and receivables. Fair value of loans and advances to customers is determined using discounted cash flow model consisting of contractual loan cash flows that are adjusted by expectations about possible variations in the amount and timings of cash flows using methodology consistent with the expected credit loss determination as at 31 December 2024 to determine the cash flows expected to be received net of impairment losses. The pre-tax weighted average cost of capital (WACC) of the entity holding the respective financial assets is used as the basis for the discount rate. The WACC is based on the actual estimated cost of equity and cost of debt that reflect any other risks relevant to the loans that have not been taken into consideration by the impairment loss adjustment described above and also includes compensation for the opportunity cost of establishing a similar loan. An additional 1.5 to 4.1% is added to the discount rate as an adjustment to consider service costs of the portfolio that are not captured by the cash flow adjustments. The annual discount rate was determined between 6.18% and 31.34% depending on the Group’s component holding the respective financial asset. Impairment loss is estimated by applying PD and LGD rates, which are in line with ECL methodology described under 'The calculation of ECLs' (Note 2). The table below summarizes the carrying amounts and fair values of those financial assets and liabilities not presented on the Group’s statement of financial position at their fair value: Carrying value Fair value Carrying value Fair value 31.12.2024 31.12.2024 31.12.2023 31.12.2023 EUR EUR EUR EUR Assets for which fair value is disclosed Loans to associated companies 3,308,179 3,308,179 - - Loans and advances to customers 369,166,010 469,299,211 313,204,155 463,826,143 Other loans and receivables 155,308 155,308 374,357 374,357 Trade receivables 2,164,840 2,164,840 1,606,770 1,606,770 Other receivables 8,740,369 8,740,369 8,267,676 8,267,676 Cash and cash equivalents 34,461,093 34,461,093 27,470,468 27,470,468 Total assets for which fair value is disclosed 417,995,799 518,129,000 350,923,426 501,545,414 Liabilities for which fair value is disclosed Borrowings Eleving Group S.A. bonds 194,568,261 196,610,886 189,720,020 177,572,764 Mogo AS bonds - - 17,652,461 17,470,317 Lease liabilities for right-of-use assets 11,873,062 11,873,062 11,801,088 11,801,088 Long term loan from banks 8,890,707 8,890,707 6,084,337 6,084,337 Financing received from P2P investors 58,758,821 58,758,821 63,723,592 63,723,592 Other borrowings 65,487,580 65,487,580 33,142,668 33,142,668 Trade payables 1,980,625 1,980,625 2,224,874 2,224,874 Other liabilities 2,367,886 2,367,886 1,902,392 1,902,392 Total liabilities for which fair value is disclosed 343,926,942 345,969,567 326,251,432 313,922,032 Liabilities measured at fair value Other financial liabilities - - - - Total liabilities measured at fair value and liabilities for which fair value is disclosed 343,926,942 345,969,567 326,251,432 313,922,032 The table below specified analysis by fair value levels as at 31 December 2024 (based on their fair values): Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 31.12.2024 31.12.2024 31.12.2024 31.12.2023 31.12.2023 31.12.2023 EUR EUR EUR EUR EUR EUR Assets for which fair value is disclosed Loans to associated companies - - 3,308,179 - - - Loans and advances to customers - - 469,299,211 - - 463,826,143 Other loans and receivables - - 155,308 - - 374,357 Trade receivables - - 2,164,840 - - 1,606,770 Other receivables - - 8,740,369 - - 8,267,676 Cash and cash equivalents 34,461,093 - - 27,470,468 - - Total assets for which fair value is disclosed 34,461,093 - 483,667,907 27,470,468 - 474,074,946 Liabilities for which fair value is disclosed Borrowings Eleving Group S.A. bonds - 196,610,886 - - 177,572,764 - Mogo AS bonds - - - - - 17,470,317 Lease liabilities for right-of-use assets - - 11,873,062 - - 11,801,088 Long term loan from banks - - 8,890,707 - - 6,084,337 Financing received from P2P investors - - 58,758,821 - - 63,723,592 Other borrowings - - 65,487,580 - - 33,142,668 Trade payables - - 1,980,625 - - 2,224,874 Other liabilities - - 2,367,886 - - 1,902,392 Total liabilities for which fair value is disclosed - 196,610,886 149,358,681 - 177,572,764 136,349,268 Liabilities measured at fair value Other financial liabilities - - - - - - Total liabilities measured at fair value and liabilities for which fair value is disclosed - 196,610,886 149,358,681 - 177,572,764 136,349,268 Bonds issued by Eleving Group S.A. have been classified as Level 2 fair value measurement given that there are observable market quotations in markets. The market for Mogo AS bonds is not assessed as an active market thus classified as Level 3. Fair value of the bonds has been determined based on observable quotes. There have been no transfers between fair value hierarchy levels during 2024 and 2023. 45. Share-based payments General Employee Share Option Plan The Group may grant share options of Subsidiaries to its employees. Share options are generally awarded on the first day of employment. The share options vest within four years time with front loaded vesting of 25% of the granted shares after one year of employment. The maximum term of options granted is 4 years. Fair value of the respective share options The fair value of share options granted is estimated at the date of grant. Group’s management has assessed that the fair value of the respective share options as at reporting period end is EUR 40 654. The exercise price of the share options under typical circumstances is equal to the nominal priceof the underlying shares. There are cash settlement alternatives.The Group does not have a past practice of cash settlement for these awards and the Group does not have a present obligation to settle in cash. The following table illustrates the number and weighted average exercise prices of the General Employee share option plan: 2024 2023 Weighted average exercise price, EUR Weighted average exercise price, EUR Number Number Outstanding at 1 January 23 0.1 66 0.1 Granted during the year 2 0.1 4 0.1 Fully vested during the year -9 0.1 -45 0.1 Terminated due to failed vesting conditions -1 - -2 - Outstanding at 31 December 15 0.1 23 0.1 Exercisable at the end of the period - - - - Several employee share options have been exercised, expired and/or forfeited in accordance with the terms and conditions of the General Share Option plan, while a several other employee share options remain outstanding and may be exercised, expired and/or forfeited in the future. The table above does not include employee share options that have been granted during the year and exercised during the year or shares provided to the employees. Refer to note 1 for Eleving Group equity Interest percentage in the Group subsidiaries. The exercise price for options outstanding at the end of the year was 0.1 EUR (2023: 0.1 EUR). The weighted average remaining contractual life for the share options outstanding as at 31 December 2024 is less than a year (2023: 1). The main purpose of both share option plans is to attract and retain highly experienced employees for extensive period of time and build strong management team. 46. Segment information For management purposes, the Group is organized into business units based on their geographical locations and on internal management structure, which is the basis for reporting system. These consolidated financial statements provide information on the following operating segments. Comparative figures reflect segments according to previous years structure. - Eleving Stella. This is the major segment of the Group representing entities performing car financing activities in Latvia, Lithuania, Romania, Moldova, Georgia, Armenia and Estonia. - Eleving Solis. This is the major segment of the Group representing entities performing car financing activities in Uzbekistan, Kenya and Uganda. - Entities performing consumer loan financing activities. This is the major segment of the Group representing entities performing activities in Moldova, Albania, Ukraine, Botswana, Namibia, Zambia, Lesotho, Mauritius and Eswatini. - Discontinued operations. This group includes entities from countries where the group has decided to exit from geographical markets. Countries included Bosnia&Herzegovina, Poland and Belarus. - Other segments. This segment comprises Group’s business lines with aggregate unconsolidated revenue below 10% of the total unconsolidated revenue of all operating segments. - Other. The Group’s financing (including finance costs, finance income and other income) and income taxes are managed on a Group basis and are not allocated to operating segments hence these are presented in “Other”. Management monitors mainly the following indicators of operating segments for the purpose of making decisions about resource allocation and performance assessment: net revenue, profit before tax, gross portfolio and impairment. Other segment is not monitored on segment level but on comprising subsidiaries level. The Groups Chief operating decision maker is Group`s CEO. Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Group’s total revenue in 2023 or 2024. Segment information below shows main income and expense items of profit and loss statement. Other smaller income and expense items are summarized and shown under 'Other income/(expense)' column. 46. Segment information (continued) Segment information for the period ended on 31 December 2024 is presented below: Operating segment Interest income Interest expenses Impairment expense Other operating income Other operating expense Corporate income tax Segment profit/(loss) for the period Total assets Total liabilities Eleving Stella 55,923,129 (14,644,718) (10,287,719) 7,824,455 (33,308,962) (1,238,485) 4,267,700 204,722,129 164,548,734 Eleving Solis 57,789,316 (16,571,572) (10,263,607) 9,114,591 (36,676,130) (1,774,626) 1,617,972 116,355,395 114,877,724 Entities performing consumer loan financing 87,430,932 (7,556,577) (19,485,696) 6,562,115 (34,359,289) (5,615,719) 26,975,766 126,604,560 65,100,002 Discontinued operations 897,522 (285,862) (37,519) 57,672 (238,304) (270,622) 122,887 - - Other segments 241,886 (1,134,586) (1,530,389) 16,452,632 (14,265,662) (2,002) (238,121) 20,945,324 12,718,057 Total segments 202,282,785 (40,193,315) (41,604,930) 40,011,465 (118,848,347) (8,901,454) 32,746,204 468,627,408 357,244,517 Other 24,243,611 (24,075,965) (78,633) 10,210,826 (3,436,313) (35,295) 6,828,231 231,895,501 201,944,118 Total 226,526,396 (64,269,280) (41,683,563) 50,222,291 (122,284,660) (8,936,749) 39,574,435 700,522,909 559,188,635 Adjustments and eliminations (22,777,021) 22,749,005 1,340,042 (27,464,134) 15,381,389 - (10,770,719) (224,234,143) (191,016,846) Consolidated 203,749,375 (41,520,275) (40,343,521) 22,758,157 (106,903,271) (8,936,749) 28,803,716 476,288,766 368,171,789 * - includes net gain/(loss) from de-recognition of financial assets measured at amortized cost. 46. Segment information (continued) Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ line. All other adjustments and eliminations are part of detailed reconciliations presented further below. Revenue 2024 EUR External customers (interest income and other income) 192,053,095 Inter-segment (interest income and other income) 50,241,155 TOTAL: 242,294,250 Reconciliation of profit 2024 EUR Segment profit 32,746,204 Profit from other 6,828,231 Elimination of inter-segment revenue (50,241,155) Elimination of intragroup interest income (22,777,019) Elimination of intragroup income from dividends (11,691,878) Elimination of intragroup management services (7,626,512) Elimination of intragroup other income (8,015,401) Elimination of intragroup income from dealership commissions (130,345) Elimination of inter-segment expenses 39,470,436 Elimination of intragroup interest expenses 22,749,005 Elimination of intragroup management services 7,827,458 Elimination of intragroup other expenses 7,553,931 Elimination of impairment expenses 1,340,042 Consolidated profit for the period 28,803,716 Reconciliation of assets 31.12.2024 EUR Segment operating assets 468,627,408 Loans to subsidiaries (assets of Other) 193,100,449 Other short term receivables (assets of Other) 38,795,052 Elimination of intragroup loans (187,957,738) Elimination of other intragroup receivables (36,276,405) Total assets 476,288,766 Reconciliation of liabilities 31.12.2024 EUR Segment operating liabilities 357,244,517 Borrowings (liabilities of Other) 200,437,377 Other liabilities (liabilities of Other) 1,506,741 Elimination of intragroup borrowings (187,844,831) Elimination of other intragroup accounts payable (3,172,015) Total liabilities 368,171,789 Segment information for the period ended on 31 December 2023 is presented below: Interest income Interest expenses Impairment expense Other operating income Other operating expense Corporate income tax Segment profit for the period Total assets Total liabilities Eleving Stella 45,721,926 (12,786,195) (8,197,387) 8,000,373 (26,851,637) (985,228) 4,901,852 197,861,294 143,052,784 Eleving Solis 58,952,956 (13,641,605) (15,222,425) 4,205,343 (33,725,804) (446,184) 122,281 103,835,772 106,286,739 Entities performing consumer loan financing 68,272,605 (8,088,821) (15,222,530) 5,140,774 (25,160,192) (4,745,215) 20,196,621 122,521,648 75,281,520 Discontinued operations 4,912,144 (1,296,305) (137,513) 322,033 (2,350,208) (291,447) 1,158,704 9,597,949 9,432,078 Other segments (254,985) (2,883,929) (11,093,219) 11,440,883 (8,708,678) (499) (11,500,427) 27,812,078 20,526,637 Total segments 177,604,646 (38,696,855) (49,873,074) 29,109,406 (96,796,519) (6,468,573) 14,879,031 461,628,741 354,579,758 Other 18,434,908 (18,793,579) (619,429) 7,531,774 (1,634,539) (97,329) 4,821,806 214,687,811 207,017,742 Total 196,039,554 (57,490,434) (50,492,503) 36,641,180 (98,431,058) (6,565,902) 19,700,837 676,316,552 561,597,500 Adjustments and eliminations (19,741,779) 19,990,990 11,805,202 (19,300,737) 9,461,587 - 2,215,263 (255,001,019) (205,717,192) Consolidated 176,297,775 (37,499,444) (38,687,301) 17,340,443 (88,969,471) (6,565,902) 21,916,100 421,315,533 355,880,308 * - includes net gain/(loss) from de-recognition of financial assets measured at amortized cost. Revenue 2023 EUR External customers (interest income and other income) 167,671,536 Inter-segment (interest income and other income) 39,042,516 TOTAL: 206,714,052 46. Segment information (continued) Reconciliation of profit 2023 EUR Segment profit 14,879,031 Profit from other 4,821,806 Elimination of inter-segment revenue (39,042,516) Elimination of intragroup interest income (20,025,671) Elimination of intragroup income from dividends (9,470,579) Elimination of intragroup management services (7,787,025) Elimination of intragroup other income (1,687,008) Elimination of intragroup income from dealership commissions (72,233) Elimination of inter-segment expenses 41,257,779 Elimination of intragroup interest expenses 19,990,990 Elimination of intragroup management services 7,791,873 Elimination of intragroup other expenses 1,669,714 Elimination of impairment expenses 11,805,202 Consolidated profit for the period 21,916,100 Reconciliation of assets 31.12.2023 EUR Segment operating assets 461,628,741 Loans to subsidiaries (assets of Other) 195,461,113 Other short term receivables (assets of Other) 19,226,698 Elimination of intragroup loans (204,762,773) Elimination of other intragroup receivables (50,238,246) Total assets 421,315,533 Reconciliation of liabilities Segment operating liabilities 354,579,758 Borrowings (liabilities of Other) 190,139,431 Other liabilities (liabilities of Other) 16,878,311 Elimination of intragroup borrowings (204,762,772) Elimination of other intragroup accounts payable (954,420) Total liabilities 355,880,308 47. Events after balance sheet date Since the last day of the reporting year several significant events took place: 1) On 10 March 2025 the Group has concluded the public bond offering of its senior secured and guaranteed bonds (ISIN DE000A3LL7M4). As a result of the bond tap, the Group has issued additional new bonds worth EUR 40 mln in nominal with original matury date of 31.10.2028, but with effectve yield reduced from 13% to 10%. Additional funds will be mainly used to fuel the future growth of the business and partially refinance existing liabilities. 2) In March 2025 the government of North Macedonia has lost a court case where it is now obliged to pay back one off solidarity tax payments made by companies in 2023. The Group's subsidiary in North Macedonia made such a payment to government authorities in 2023 for total amount of EUR 1 151 000. Now the entity is eligible for a refund of this payment and the Group expects to receive the refund in second quarter of 2025. As of the last day of the reporting year until the date of signing these integrated consolidated financial statements there have been no other events requiring adjustment of or disclosure in the statements or Notes thereto. 48. Alternative performance measures (unaudited) This Integrated report provides, as incorporated in these consolidated financial statements, alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards as adopted by the EU. We believe these APMs provide readers with important additional information on our business. To support this, we have included, a reconciliation of the APMs we use where relevant and a glossary indicating the APMs that we use, an explanation of how they are calculated. These numbers are unaudited. APM Definition Capitalization ratio Total equity (incl. subordinated loans/bonds)/net loan portfolio (excl. rental fleet) EBITDA Profit from continuing operations for the period before corporate income tax and deferred corporate income tax, interest expense, amortization and depreciation, and net foreign exchange result Interest coverage ratio Last twelve-month Adjusted EBITDA/interest expense less Eurobonds acquisitions costs and subordinated loans/bonds interest expense Net leverage Sum of non-current and current borrowings (excl. lease liabilities for rent of vehicles and premises and subordinated debt/bonds) less cash and cash equivalents / last twelve-month Adjusted EBITDA Net loan portfolio Sum of rental fleet and loans and advances to customers Net profit before FX Net profit for the period before net foreign exchange result Revenue Sum of interest revenue, fee and commission income related to financing activities and revenue from loans Capitalization ratio 2024 2023 2022 2021 2020 Total Equity 108,116,977 65,435,225 54,073,300 31,390,094 22,238,223 Subordinated loans/bonds - 16,462,353 18,477,014 17,300,238 12,126,467 Net loan portfolio 369,166,010 313,204,155 282,954,694 234,851,859 186,890,484 Capitalization ratio 29.3% 26.1% 25.6% 20.7% 18.4% EBITDA 2024 2023 2022 2021 2020 Profit from continuing operations 28,803,716 21,916,100 14,608,552 11,205,675 1,647,029 Corporate income tax (8,203,820) (8,324,461) (9,004,133) (6,932,013) (709,012) Deferred corporate income tax (732,929) 1,758,559 2,151,290 815,335 1,012,121 Net foreign exchange result (3,709,849) (6,385,833) (7,422,727) 1,095,031 (11,061,815) Amortization and depreciation 9,854,800 9,442,554 8,063,484 7,399,657 5,347,054 Interest expense (41,520,275) (37,499,444) (31,131,649) (29,022,570) (24,877,404) EBITDA 92,825,389 81,809,833 68,079,255 52,649,549 42,630,193 (Gain)/Loss from subsidiary sale - - 805,957 - (2,270,197) Loss from cancelled acquisition in Kosovo - - - 960,237 - Amortization of acquisitions’ fair value gain - - - 3,183,838 3,365,103 Bonds refinancing expense - - - 5,667,930 - Warrant repurchase from Mezzanine Management - - - - 2,546,353 Gain from acquisitions - - - - (11,473,296) VAT in Romania for prior periods 3,030,217 - - - - Non-controlling interests (6,068,841) (4,356,389) (3,311,445) (5,002,715) 426,199 Adjusted EBITDA 89,786,765 77,453,444 65,573,767 57,458,839 35,224,355 Interest coverage ratio 2024 2023 2022 2021 2020 Interest expense 41,520,275 37,499,444 31,131,649 29,022,570 24,877,404 Interest expense from subordinated loans/bonds 2,022,044 2,774,925 2,233,276 1,735,481 344,406 Bonds issuance costs 2,114,297 1,259,773 1,079,908 2,142,668 1,938,791 Interest coverage ratio 2.4 2.3 2.4 2.3 1.6 Net leverage 2024 2023 2022 2021 2020 Non-current borrowings, less: 267,562,839 242,406,494 231,194,120 229,757,374 166,696,463 Subordinated loans/bonds - 16,462,353 18,477,014 17,300,238 12,126,467 Non-current lease liabilities for rent of premises 6,300,511 6,466,463 7,115,543 6,612,744 5,682,880 Non-current lease liabilities for rent of vehicles 504,570 780,696 178,449 93,446 42,135 Current borrowings, less: 72,015,592 96,180,026 60,114,233 38,267,475 76,537,465 Current lease liabilities for rent of premises 4,768,360 3,763,479 2,659,706 2,443,778 2,013,871 Current lease liabilities for rent of vehicles 299,621 790,450 142,794 57,412 56,425 Cash and cash equivalents 34,461,093 27,470,468 13,834,837 10,127,087 9,315,430 Net leverage 3.3 3.7 3.8 4.0 6.1 Net loan portfolio 2024 2023 2022 2021 2020 Rental fleet 2,037,986 7,085,928 10,008,495 10,700,138 14,549,784 Non-current loans and advances to customers 189,649,583 154,854,453 139,934,850 119,126,287 98,368,630 Current loans and advances to customers 179,516,427 158,349,702 143,019,844 115,725,572 88,521,854 Net loan portfolio 371,203,996 320,290,083 292,963,189 245,551,997 201,440,268 Net profit after FX 2024 2023 2022 2021 2020 Profit from continuing operations 28,803,716 21,916,100 14,608,552 11,205,675 1,647,029 Net profit after FX 28,803,716 21,916,100 14,608,552 11,205,675 1,647,029 (Gain)/Loss from subsidiary sale - - 805,957 960,237 (2,270,197) Amortization of acquisitions’ fair value gain - - - 3,183,838 3,365,103 Bonds refinancing expense - - - 5,667,930 - Warrant repurchase from Mezzanine Management - - - - 2,546,353 Gain from acquisitions - - - - (11,473,296) VAT in Romania for prior periods 2,555,565 - - - - One off solidarity tax payment in North Macedonia - 1,151,000 - - - Adjusted Net profit after FX 31,359,281 23,067,100 15,414,509 21,017,680 (6,185,008) 48. Alternative performance measures (unaudited) (continued) Net profit before FX 2024 2023 2022 2021 2020 Profit from continuing operations 28,803,716 21,916,100 14,608,552 11,205,675 1,647,029 Net foreign exchange result (3,709,849) (6,385,833) (7,422,727) 1,095,031 (11,061,815) Net profit before FX 32,513,565 28,301,933 22,031,279 10,110,644 12,708,844 (Gain)/Loss from subsidiary sale - - 805,957 960,237 (2,270,197) Amortization of acquisitions’ fair value gain - - - 3,183,838 3,365,103 Bonds refinancing expense - - - 5,667,930 - Warrant repurchase from Mezzanine Management - - - - 2,546,353 Gain from acquisitions - - - - (11,473,296) VAT in Romania for prior periods 2,555,565 - - - - One off solidarity tax payment in North Macedonia - 1,151,000 - - - Adjusted Net profit before FX 35,069,130 29,452,933 22,837,236 19,922,649 4,876,807 Revenue 2024 2023 2022 2021 2020 Interest revenue 203,749,375 176,297,775 162,516,856 139,857,244 73,685,522 Fee and commission income related to financing activities 10,076,029 8,968,142 7,743,433 7,317,048 5,040,256 Revenue from leases 2,748,356 4,067,111 5,421,567 6,549,933 6,247,484 Revenue 216,573,760 189,333,028 175,681,856 153,724,225 84,973,262 Amortization of acquisitions’ fair value gain - - - 3,183,838 3,365,103 Adjusted revenue 216,573,760 189,333,028 175,681,856 156,908,063 88,338,365 Signed on behalf of the Group on 28 April 2025 by: Māris Kreics Sébastien Jean-Jacques J. François Type A director Type B director Management Board's statement The undersigned Eleving Group, a public limited liability company (societe anonyme), governed by laws of the Grand-Duchy of Luxembourg, having its registered office at 8-10 Avenue de la Gare, L-1610, Luxembourg and registered with the Luxembourg Trade and Companies Register under the number B 174457 (the “Company”), Hereby formally and expressly declares the following: 1. The consolidated annual report of the Company for the year ended 31 December 2023 is, to the best of Directors’ knowledge, prepared in accordance with the applicable set of accounting standards and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole, 2. The management report of the Company includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole. Signed on behalf of the Group on 28 April 2025 by: Māris Kreics Sébastien Jean-Jacques J. François Type A director Type B director