INDEXO

IPAS "Indexo"

Consolidated and Separate Annual Report for 2025

and the independent auditor’s report

(Translation of Latvian original)

This is a translation in .pdf format without the European Single Electronic Format (ESEF) markups of the digitally signed original which was prepared in Latvian and submitted in machine-readable .xhtml format to the Nasdaq Riga Stock Exchange (link: https://nasdaqbaltic.com/)

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Information on the group 3
Subsidiary information 4-6
Management report 7-16
Statement of responsibility of the management board 17

Financial statements:
Consolidated and separate statements of comprehensive income 19
Consolidated and separate statements of financial position 20-21
Consolidated and separate statements of changes in equity 22
Consolidated and separate statements of cash flows 23
Notes to the consolidated and separate financial statements 24-120

Independent auditor's report 121

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Information on the group

Name of the Company
Legal status of the Company
Registered and office address
ISIN Code
Number, place, and date of registration in the Register of Enterprises
Licence number
Date of issue of the licence

IPAS INDEXO
Investment management joint-stock company
Roberta Hirsa 1, Riga, LV-1045, Latvia
LV0000101863
40203042988
Riga, 10 January, 2017
06.03.07.567/478
16.05.2017., reregistered on 31.05.2017.

Shareholders
31.12.2025:
Qualifying holding (shareholding of 5% and more):
ALPPES CAPITAL AS (Latvia) – 28.13%
SIA EC finance – 6.61%
Natural persons and legal entities with a shareholding of under 5%

Members of the Supervisory Board and their position
Valdis Vancovičs – Chairman of the Supervisory Board (from 19.04.2023)
Svens Dinsdorfs – Deputy Chairman of the Supervisory Board (from 19.04.2023)
Renāts Lokomotēts – Member of the Supervisory Board (from 19.04.2023)
Ramona Miglāne – Member of the Supervisory Board (from 19.04.2023)
Mārtiņš Jaunarājs – Member of the Supervisory Board (from 15.04.2025)

Members of the Management Board and their position
Henrik Karmo – Chairman of the Management Board
Artūrs Roze – Member of the Management Board
Marija Černoštana – Member of the Management Board

Reporting period
1 January 2025 – 31 December 2025

Comparative period
1 January 2024 – 31 December 20254

Auditors
"BDO ASSURANCE" SIA
Riga, Mihaila Tāla 1, Licence No. 182
LV-1045, Latvia

Certified auditor in charge
Raivis Jānis Jaunkalns
Sworn auditor certificate No. 237

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Subsidiary information

Investments in subsidiaries

Name of the subsidiary	Indexo Atklātais Pensiju Fonds, AS (Ownership interest held by the parent company - 100%)
Registered and office address	Roberta Hirša 1, Riga, LV-1045, Latvia
Registration number	40203248944
Date of foundation	13.06.2020.
Licence number	06.04.04.705/531
Licence issue date	20.01.2021.
Nature of operations	Administration of private pension scheme assets
Name of the subsidiary	AS INDEXO Banka (Ownership interest held by the parent company - 100%)
Registered and office address	Roberta Hirša 1, Riga, LV-1045, Latvia
Registration number	40203448611
Date of foundation	19.12.2022.
Licence number	27-55/2024/2
Licence issue date	16.05.2024.
Nature of operations	Credit institution
Name of the subsidiary	AS DelfinGroup (Ownership interest held by the parent company – 67.42%)
Registered and office address	Skanstes 50A, Riga, LV-1013, Latvia
Registration number	40103252854
Date of foundation	12.10.2009.
Nature of operations	Other lending services, mail order and e-commerce retail sales, retail sale of second-hand goods in stores, retail sale of watches and jewellery in specialised stores

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Subsidiary information, continued

Name of the subsidiary	UAB DelfinGroup LT (Ownership interest held by the parent company - 67.42% indirectly through DelfinGroup AS, which holds 100%)
Registered and office address	25-701 Lvivo g, Vilnius, Lithuania
Registration number	306462155
Acquisition date of the subsidiary	15.12.2025.
Nature of operations	Other lending services
Name of the subsidiary	DELFINGROUP RO IFN S.A. (Ownership interest held by the parent company - 67.42% indirectly through DelfinGroup AS, which holds 100%)
Registered and office address	București Sectorul 1, Strada GRIGORE MORA, Nr. 16, Etaj 1, Bucharest, Romania
Registration number	J2025052412007
Acquisition date of the subsidiary	15.12.2025
Nature of operations	Other lending services
Name of the subsidiary	SIA VIZIAFINANCE (Ownership interest held by the parent company - 67.42% indirectly through DelfinGroup AS, which holds 100%)
Registered and office address	Skanstes 50A, Riga, LV-1013, Latvia
Registration number	40003040217
Acquisition date of the subsidiary	15.12.2025
Nature of operations	Other lending services
Name of the subsidiary	IPAS VAIRO (Ownership interest held by the parent company - 100%)
Registered and office address	Roberta Hirša 1, Riga, LV-1045, Latvia
Registration number	40203474347
Acquisition date of the subsidiary	19.09.2025
Nature of operations	leguldijumu pārvaldnieks

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Subsidiary information, continued

Investment in associated company share capital

Name of the associated company	SIA Provendi asset management AIFP (Ownership interest held by the parent company - 49%)
Registered and office address	Elizabetes 13-1, Riga, LV-1010, Latvia
Registration number	40203438204
Acquisition date of the subsidiary	02.11.2022.
Nature of operations	Fund management
Name of the associated company	Goindex UAB (Ownership interest held by the parent company – 3,97%)
Registered and office address	Lvivo g. 25-701, LT-09320 Vilnius, Lithuania
Registration number	305706496
Acquisition date of the subsidiary	13.06.2020.
Nature of operations	Pension fund management

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Management report

The mission of the investment management company "Indexo" (IPAS "Indexo", hereinafter the Company or INDEXO) is to offer modern, transparent and simple investment products at low cost and to improve competition and transparency in the Latvian financial services industry.

"2025 has been a year of significant transformation and dynamic development for the INDEXO Group, leaving a substantial impact on the Group’s future growth direction. The pension business continued to deliver strong results, providing another year of real capital growth for our fund clients. Revenues and profit also increased, which will further support the development of our banking business.

During the reporting year, INDEXO Banka significantly accelerated its development pace. By continuously enhancing our product offering, we attracted strong customer interest, and by the end of the reporting period nearly 50 thousand people had opened bank accounts with us. Competitive interest rates on current account balances and deposits helped our clients improve their everyday savings. Our mortgage refinancing product enabled hundreds of clients to reduce their borrowing costs. We will continue to expand and improve our product offering to further enhance our clients’ financial well-being.

To support the Bank’s development, we raised substantial equity capital through both private and public offerings. We thank all investors who supported us in this process. Our priority is to continue expanding the Bank’s business volumes and to achieve bank-level profitability in the near term.

Part of the capital raised was used to finance two acquisitions. On 15 December 2025, we completed the voluntary cash/share exchange offer to the shareholders of DelfinGroup, listed on the Nasdaq Riga Stock Exchange. By January, following completion of the mandatory offer, INDEXO owns 71.42% of this profitable lending business, which regularly distributes dividends. Within the Group, INDEXO is already profitable and is increasingly able to finance its growth from internal financial resources, thereby reducing risk for shareholders. In a smaller transaction in September 2025, we acquired pension manager IPAS VAIRO for cash and shares, with EUR 91 million in assets under management and more than 12.5 thousand clients. These events mark important milestones in the development history of IPAS INDEXO, demonstrating the company’s ability to grow and expand also through strategic transactions. They show that we have become a sufficiently large and influential market participant to execute transactions of this scale, further strengthening our position in the financial market and opening new growth opportunities.

In asset management, the INDEXO Real Estate Fund also experienced significant growth, with assets reaching EUR 176 million (net assets of EUR 75 million). The fund continues to distribute dividends and reflects our long-term commitment to investing in the local market and promoting the development of Latvia’s capital market. As the fund’s assets increased, the management company, in which INDEXO holds a 49% stake, became profitable during the year.

None of this would have been possible without the professional, united and results-oriented INDEXO team.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

We express our deepest gratitude to all INDEXO employees for their professional contribution, high sense of responsibility and continuous commitment to delivering on INDEXO's mission. Your daily work and dedication to INDEXO's values have been decisive in the development achieved to date and will be equally important in the future stages of the Group's growth.

We also extend our appreciation to our shareholders, whose number increased by 31% during the year and now reaches nearly 7 800. Thank you for your trust, support and belief in INDEXO's development vision. Your involvement and confidence in INDEXO strengthen our foundations and provide a solid platform for the sustainable future growth of the INDEXO Group."

Sincerely Yours,

Henrik Karmo, Chairman of the Board of IPAS INDEXO.

We would like to inform you about the key events in the development of INDEXO in 2025:

1) Pension business closed the reporting year with a profit of EUR 2.18 million, an increase of 169% compared to 2024, enabling us to support the development and capital needs of INDEXO Banka to the greatest extent possible.

2) The pension management company, influenced by various factors, shifted its strategic focus towards the voluntary pension product, the 3rd pension pillar, which resulted in very strong growth performance. The number of clients increased by 5 857, from 16 539 to 22 396, representing an increase of 35.4%. Assets under management grew from EUR 37.6 million to EUR 59.2 million, an increase of EUR 21.6 million, or 57.3%.

3) Within INDEXO Group, we place particular emphasis on ensuring that the services and products we offer are meaningful to clients and provide real added value. At the end of 2025, we introduced a new personal finance forecasting tool, the "Retirement Planner", and during the reporting year we significantly expanded the range of products offered by the Bank.

4) INDEXO customer retention is still at a high level and reached an annualized basis 85.23% in December 2025. At the end of 2024, our customer retention was 86.89%. The decrease in customer retention is largely due to increased activity by our competitors. We have taken notice, have implemented and will continue to implement measures to increase customer loyalty.

5) The number of INDEXO Banka clients more than doubled during the year, reaching nearly 50 000, while the loan portfolio grew to EUR 55.5 million at the end of 2025, with new loans issued during the year totalling EUR 61.5 million. To support the development of INDEXO Banka's operations, IPAS INDEXO strengthened the Bank's capital during the reporting period, increasing it to EUR 27 325 002, which is EUR 10 015 557 more than in 2024, when the total investment amounted to EUR 17 309 445.

6) At year-end, INDEXO Banka's customer deposits reached EUR 72.6 million, compared to EUR 33 million at the end of 2024. The growth in deposits reflects strengthening customer confidence in the Bank, while the EUR 1.19 million paid to customers in interest during 2025 demonstrates the development of an active customer base and the competitiveness of the Bank's deposit products.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

General description

The Company was founded on 10 January 2017. The registered office of the Company is Roberta Hirsa iela 1, Riga, LV-1045, Latvia. The uniform registration number in the Commercial Register of the Republic of Latvia is 40203042988. On 16 May 2017, the Financial and Capital Market Commission (after the merger – the Bank of Latvia) issued the Company a licence to provide investment management services, which was re-registered on 31 May 2017 under the number 06.03.07.567/478.

Pension Savings Management

Our aim is to help Latvians save enough for retirement to avoid a significant drop in their quality of life upon reaching that age. Global estimates suggest that maintaining one's standard of living in retirement requires saving around 10–15% of income, yet few people in Latvia follow this rule. Our savings for retirement offers both 2nd pillar (Defined Contribution) and 3rd pillar (voluntary) saving products. On September 19 we acquired IPAS VAIFO with 13 084 clients who had more than 89 million of assets under management.

Pension Savings Management key operating results

With growing assets under management, our revenues and profitability have been growing.

Millions, EUR	Jan - Dec 2025	Jan - Dec 2024	Change
Contribution inflows	142.0	129.0	10.1%
2nd Pillar churn, end of period, annualized %	14.77	13.11	1.66pp
Commission income	5.11	4.44	15.1%
Operating income	3.87	2.77	39.7%
Net income*	2.18	0.81	169.1%
Normalised results**
Operating income	3.73	3.30	13.0%
Normalized net income	2.12	1.34	58.2%

-During the reporting period, IPAS INDEXO received EUR 0.78 million in dividends from AS DelfinGroup
*- Normalized results show pure pension business results excluding expenses which are not attributed to the pension business. Like costs from public capital raises for the Bank, interest expenses of commitment letters, INDEXO employee options and other costs that have been incurred due to the development of INDEXO Bank.

Pension business total AUM growth drivers Q4 2024 – Q4 2025 Millions EUR, based on management estimates

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

INDEXO AUM has increased from the start of the year to EUR 1 566 million, in comparison with 2024, it has grown 17% (from 1 339 million in 2024). All drivers of organic growth (monthly contributions (EUR 142 million), fund transfers from clients joining INDEXO (EUR 128 million) and market returns (EUR 90 million)) have significantly helped fuel AUM growth, yet it is imperative that we mention that the acquisition of IPAS VAIRO has been one of the main assets under management growth drivers in 2025. Our growth would be even faster if not for the worsened 2nd pension pillar customer retention rate during the period. Our 2nd pillar customer retention figure has declined from 86.89% in 2024 to 85.23% in 2025. This was mostly driven by several competitors resorting to active sales tactics, attracting clients into funds that have underperformed compared to INDEXO's equivalents since their inception. With lower contributions and the impact of reduced marginal fees, we are prioritizing the quality of client relationships.

Total pension assets, millions EUR
Total pension clients, thousands

Since the beginning of 2025 our focus has been voluntary savings for retirement. We are seeing early results of this pivot – our customer number has grown from 16 539 to 22 396 (35% y-o-y) and Assets under Management from EUR 37.6 million to EUR 59.2 million (57% y-o-y). Most importantly we have a good proportion of dedicated savers that are contributing regularly and increasing their payments.

INDEXO Jauda pension plan

The graph shows the cumulative returns of INDEXO Jauda 16-55 pension plan on 31.12.2025 relative to the average returns of 100% equity plans in the Latvian 2nd pillar pension market (excluding INDEXO Jauda 16-55), and the consumer price index in Latvia. Sources: manapensija.lv, Central Statistical Bureau of Latvia.

At the end of Q3 2025, our 2nd pillar customers had the highest average Assets Under Management per customer in the 2nd pension pillar market, amounting to EUR 10 679*. Our flagship plan, Jauda,

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

has delivered an annualized return of 9.76% since the inception of the fund, beating both the Latvian market average and, most importantly, significantly outperforming CPI over a 5-year period leading to real, inflation-adjusted wealth growth.

*IPAS INDEXO average AUM/client = 11 086 EUR & IPAS VAIRO average AUM/client = 6 811 EUR.

Financial results of pension savings management

Results of IPAS "Indexo" 2nd pillar and 3rd pillar pension management

EUR'000	Jan - Dec 2025	Jan - Dec 2024
	Audited	Audited
Commission income	5 114	4 440
Dividend income	784	-
Interest income	46	67
Interest expense*	(302)	(300)
Administrative and other expenses for pension management**	(1 763)	(1 175)
Operating income before client acquisition and other business project expenses	3 879	3 032
Client acquisition costs	(1 552)	(1 972)
Pension management operating result	2 327	1 060
Non-cash personnel option expenses	(145)	(239)
Corporate income tax	(3)	(7)
Comprehensive profit for the reporting period	2 179	814
Non-pensions group expenditures	(728)	(464)
Dividend income	784	-
Comprehensive normalised profit for the reporting period***	2 123	1 278

-In the 2024 reporting period, interest payments of EUR 299.8 thousand were paid for commitment letters, and in the 2025 reporting period, interest payments of EUR 299.0 thousand were paid, which are not part of pension business operating expenses.
The increase in expenses is primarily attributable to higher Group-level costs, including capital raising expenses and costs related to the DelfinGroup transaction. Administrative expenses of the pension business increased only marginally. The majority of the increase relates to Group costs recorded through IPAS INDEXO as the parent company of the Group.
**.-Normalised results reflect the performance of pension management activities, excluding income and expenses that are not directly related to the pension business. These adjustments mainly include costs related to capital raising for INDEXO Bank, interest expenses on commitment letters, costs associated with the bank's employee share option programme, as well as other expenses incurred during the establishment and development of INDEXO Bank.

Increases in the client base and AUM have contributed to commission income growth in pension fund management, reaching EUR 5.11 million (compared to EUR 4.44 million in the corresponding reporting period in 2024). During 2025, dividends of EUR 0.78 million were received from DelfinGroup. Profit before client acquisition costs reached EUR 3.88 million (compared to EUR 3.03 million in the corresponding reporting period in 2024). Total net profit during the reporting period was EUR 2.18 million (compared to EUR 0.81 million in the corresponding reporting period in 2024). Our normalised net profit also has significantly increased (EUR 2.12 million) comparing to the same period last year, when it was at EUR 1.28 million.

The growth in our assets under management is driven not only by contributions from new clients and transferred client assets from other managers, but also by market performance. As of 31st of December 2025, our 2nd pillar pension plan returns are as follows:

2nd Pillar Pension plan	Risk Profile	YTD return	3-year return (per annum)	5-year return (per annum)	Return since inception (per annum)
INDEXO Izaugsme 55-62	50% Equity	3.38%	9.13%	5.14%	5.24%
INDEXO Jauda 16-55	100% Equity	7.07%	16.81%	11.41%	9.98%
INDEXO Konservativais 62+	100% Bonds	1.84%	3.73%	-1.44%	-0.12%

The results of our plans using passive investment strategy can be accessed on www.manapensija.lv.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

As of 31st of December 2025, our 3rd pillar pension plan returns are as follows:

3rd Pillar Pension plan	Risk Profile	1-year return (per annum)	2-year return (per annum)	3-year return (per annum)	Return since inception (per annum)
INDEXO Akciju plāns	100% Equity	7.06%	15.73%	16.68%	10.33%
INDEXO Oblīgāciju plāns	100% Bonds	1.61%	1.97%	3.42%	-0.97%

Real Estate Fund Management

In 2022, together with two real estate professionals, we co-founded SIA Provendi Asset Management AIFP, a real estate management company in which INDEXO holds a 49% ownership interest. In 2023, SIA Provendi Asset Management AIFP commenced operations with the lowest cost real estate fund in Latvia, A/S Indexo Real Estate Fund, and two of our investment plans, "Jauda" and "Izaugsme", began allocating a portion of their assets to the fund. The investment was driven by our strategic intention to invest in the local market, capture the attractive long-term return potential of the local real estate sector, and contribute to the development of Latvia's capital market.

By the end of 2025, the fund's total investments in residential and commercial real estate exceeded EUR 176 million, representing nearly a fourfold increase over the past two years. The fund's net asset value (NAV) increased by 10.5%, and the fund paid dividends to investors, including our pension fund. In the fourth quarter of 2025, Indexo Real Estate Fund, managed by Provendi Asset Management, acquired two shopping centres, one in Latvia - Damme, and one in Estonia - Auriga. The total transaction value amounted to EUR 56 million. More information is available here. As of 31 December 2025, the investment of the INDEXO pension plan "Izaugsme" in the fund amounted to EUR 14.5 million, or 5.78% of the plan's assets, while the investment of the plan "Jauda" amounted to EUR 20.5 million, or 1.81% of the plan's assets. During 2025, the value of the fund's investment units increased by more than 10%. We are very proud of the results achieved by Provendi Asset Management and hope for equally strong performance in the future.

Bank Development

AS INDEXO Banka (hereinafter the Bank or INDEXO Banka) commenced operations on 28 August 2024, three and a half months after receiving its banking licence on 21 May 2024. During the reporting period, INDEXO Banka completed its first full year of operations. Reflecting on the year, we are satisfied with the product and service offering developed for retail clients and with the Bank's ability to distinguish itself in the Latvian financial market through ease of use and innovative products, providing new opportunities and more favourable terms for clients.

Within 16 months of operations, the Bank has attracted nearly 50 thousand clients, built a loan portfolio exceeding EUR 55 million, and attracted almost EUR 74 million in deposits. The Bank's results in the second half of the reporting year clearly demonstrate strong demand in Latvia for new and innovative lending services.

INDEXO Banka commenced operations by offering core daily banking services to retail clients, including payments, cards, savings products, such as deposits and savings accounts, and consumer lending through a modern and user-friendly mobile application. The Bank also offers competitive pricing conditions, including being the only credit institution in Latvia that appropriately remunerates clients for balances held in current accounts.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Although the initial service offering was modern, convenient, and competitively priced, further development and enhancement remain necessary. During the reporting year, the Bank implemented the following improvements to its product offering:

Enhancements to daily banking account management solutions. On 12 February 2025, INDEXO Banka became the first bank in Latvia to provide clients, through its mobile application, the ability to view their 2nd pillar pension savings, contributions, and returns, regardless of whether they are clients of INDEXO or any other pension manager in Latvia. This helped increase public interest in pension savings and made information significantly more accessible. In April 2025, the Bank introduced Google Pay and Apple Pay. This important step reflected our commitment to leveraging the latest technologies to enhance the payment experience for our clients.
Mortgage lending. Mortgage loans represent the core retail lending product and are a key driver of client loyalty, typically accompanied using daily banking services with the lending bank. In May 2025, INDEXO Banka launched its mortgage refinancing service. We are proud to have already achieved an atypically large market share in this segment, estimated at 60–70%, helping many Latvian households improve the terms of their mortgage loans.
Consumer lending. From the start of operations, the Bank offered consumer loans fully digitally through its mobile application, with approval and disbursement possible in less than five minutes, setting a new standard in the Latvian banking sector. During the reporting year, we repeatedly refined credit approval and pricing conditions to identify the most suitable market approach. We also established fully automated integrations with leading Latvian lending platforms, significantly expanding our consumer loan distribution capacity. In September, we introduced the option for existing consumer lending clients to increase their loan amount and amend repayment schedules.
Deposit attraction. According to Latvijas Banka data, more than EUR 9 billion is currently held in Latvian residents' current accounts, in most cases earning no return. During the reporting year, INDEXO Banka implemented multiple pricing enhancements across all deposit products. The Bank currently remunerates clients with 1% annually on current account balances, 2% annually on savings accounts, while term deposit rates are not only among the highest offered by leading Latvian banks but also exceed the yield of Latvian government savings bonds.¹
Custodian bank services. Disproportionately high custodian bank fees remain another indicator of limited competition in the Latvian banking sector. INDEXO Banka is technically prepared to provide custodian bank services; however, fulfilling regulatory requirements has required additional time. The Bank plans to launch the service in the coming months, with IPAS INDEXO clients expected to gain access to custodian services in the second quarter of 2026.

Although significant time and resources were invested in enhancing our retail product and service offering during 2025, this work will continue. The introduction of new products and services, as well as further development of existing ones, will remain a priority in 2026. An indicative near term product rollout roadmap is outlined below:

¹ Latvian government savings bonds

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Mortgage lending. In February 2026, we launched home equity loans, loans secured by residential property. Initial client response following the launch has been encouraging, and we expect this product to contribute a meaningful share of the Bank's mortgage portfolio growth in the coming years. The introduction of this service has also created the platform required to soon offer mortgage loans for the acquisition of new properties.
Consumer lending. In 2026, the Bank will continue initiatives aimed at responsibly expanding the loan portfolio, including the introduction of consumer loan refinancing and the expansion of partnerships with new distribution partners. At launch, the Bank relied on an external partner's credit risk assessment model. Having now accumulated the necessary statistical base, we plan to introduce our own credit risk assessment model during 2026, enabling more accurate evaluation of client creditworthiness and improving approval and disbursement metrics.
Deposit attraction. Deposit growth remains one of the Bank's strategic priorities in 2026, and we will continue offering competitive conditions across our deposit products. To support deposit inflows, from the beginning of 2026 the Bank has offered free daily banking services to clients who use an INDEXO Bank account for receiving regular income. During 2026, we also plan to enable parents to open accounts for their children, alongside a range of additional daily banking service enhancements. These improvements are designed both to attract new clients and to encourage existing clients to make more active use of INDEXO Bank's services.

In the second half of the reporting year, we began to realise the benefits of our investments in product development, as well as our sales and marketing initiatives. During the second half of the year, the Bank significantly expanded its loan portfolio and revenue base. Of INDEXO Banka's total income of EUR 1.88 million in 2025, EUR 1.61 million was generated during the second half of the year.

Despite the positive revenue growth trajectory, income levels have not yet reached the scale required to fully cover the Bank's infrastructure and operating costs. As a result, INDEXO Banka recorded a loss of EUR 9.24 million for the reporting period.

The largest investment and expense category related to the establishment of the Bank is IT. In 2025, total capitalised IT investments in intangible assets relating to the Bank's IT infrastructure amounted to EUR 2.65 million. In addition, IT expenses recognised in the profit and loss statement during 2025 totalled EUR 3.06 million. Since the start of INDEXO Banka's development, cumulative investments in intangible IT infrastructure assets have reached EUR 7.5 million.

At the end of the reporting period, INDEXO Banka complied with all regulatory requirements relating to liquidity and capital adequacy. To finance reporting period losses and ensure compliance with capital adequacy requirements amid rapid loan portfolio growth, the Bank's capital was increased by EUR 10 million during 2025, and subordinated borrowings of EUR 1.8 million were raised. At the end of the reporting period, INDEXO Banka's capital and reserves amounted to EUR 9.25 million, and the capital adequacy ratio stood at $21.16\%$. The liquidity coverage ratio was $529.67\%$, significantly exceeding the regulatory minimum of $100\%$.

To continue expanding the loan portfolio, introduce new services, and cover losses until breakeven is achieved, INDEXO Banka will require additional capital during 2026. It is expected that a substantial

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

portion of this capital will be provided by IPAS INDEXO from profits generated in 2025 and the first half of 2026. The Bank may also issue additional AT1 and Tier 2 capital instruments, depending on capital needs and the pace of loan portfolio growth.

Further information on INDEXO Banka's key operational developments, risk management, and financial results for 2025 is available in INDEXO Banka's Annual Report: https://indexo.lv/en/for-investors/reports/

Results of subsidiary INDEXO Banka, AS

	Jan-Dec 2025	Jan-Dec 2024*
	EUR'000	EUR'000
Commission & Interest income/(expense)	1 321	(144)
Administrative and other expenses	(10 566)	(6 019)
Comprehensive losses for the reporting period	(9 245)	(6 163)
	Dec 2025	Dec 2024
	EUR'000	EUR'000
Assets	87 892	44 591
Liabilities	78 545	36 114
Equity	9 247	8 477

- These are bank development expenses incurred by AS "IDX1R" during 2023, not INDEXO Bank, due to it not technically being a bank yet.

"Indexo" Group results:

	Jan-Dec 2025	Jan-Dec 2024
	EUR'000	EUR'000
Commission and other income	6 718	5 096
Administrative and other expenses	(14 453)	(10 478)
Comprehensive losses for the reporting period	(7 735)	(5 382)
	Dec 2025	Dec 2024
	EUR'000	EUR'000
Assets	283 846	48 440
Liabilities	210 815	36 315
Equity	73 032	12 125

The total group losses in 2025 amounted to EUR 7.74 million, of which EUR 9.25 million are attributable to the bank development and a profit of EUR 1.4 million to the pension management business. (Dividends are eliminated at the Group level, as they are received from a Group company) and a bargain purchase gain of EUR 0.12 million from DelfinGroup, as their net assets exceeded the acquisition consideration (more information on Note 18)

Groups equity at the end of reporting period amounted to EUR 73.0 million (in 2024: EUR 12.1 million). During 2025, share capital was increased by EUR 5.236 million. The Group has total assets on the balance sheet of EUR 283.8 million (in 2024: EUR 48.4 million) of which EUR 24.1 million is held in placements with credit institutions (in 2024: EUR 36.6 million). Group's total liabilities stand at EUR 210.8 million (in 2024: EUR 36.3 million), of which EUR 74.4 million are financial liabilities measured at amortized cost including deposits.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Sustainability

INDEXO was established with the aim to improve the financial environment in Latvia. It was a response to the unjustifiably high commission fees and low returns in pension management at the time. INDEXO strives to continuously develop in order to create long-term value for its clients, shareholders, and society at large. In 2025, the Company developed INDEXO Strategy document that includes INDEXO's sustainability strategy for the period from 2025 to 2028.

Environment

As a pension manager with a passive asset management strategy, INDEXO recognises that the greatest impact can be achieved through sustainably selected investments within its assets under management, the Company's digital initiatives, and sustainable solutions implemented in the Company's office premises.

Social Responsibility

INDEXO cares about relationships with employees, clients, shareholders, regulators and society. The company addresses social issues and advocates for positive changes in the Latvian financial environment.

Governance

Since its inception, one of INDEXO's core values has been transparency and good governance. After becoming a public company and reaching nearly 7 800 shareholders, INDEXO continues to improve its corporate governance practice.

Along with the Group's annual report, the company publishes the Corporate Governance Report for 2025, prepared in accordance with the requirements of Article 56.² of the Financial Instruments Market Law and the Corporate Governance Code issued by the Ministry of Justice's Advisory Council in 2025. Evaluating the adherence to the principles mentioned in the code for 2024, the Company's management board concludes that during the reporting period, 13 principles were fully complied with and 5 were partially complied with.

Signed on behalf of the Company by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

Valdis Vancovičs, Chairman of the Supervisory Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Statement of responsibility of the management board

The Management Board of IPAS "Indexo" is responsible for the consolidated and separate financial statements, which provides true and fair view of the Group's and the Company's financial position as of 31 December 2025, as well as their performance and cash flows for 2025, in accordance with IFRS Accounting Standards as adopted by the European Union.

In preparing the financial statements for the year ended 31 December 2025, as set out on pages 18 to 119, management has consistently applied IFRS Accounting Standards, as adopted by the European Union, based on the going concern principle. Management's judgments and assumptions in the preparation of these financial statements have been prudent and reasonable.

The Company's management is responsible for maintaining proper accounting records, safeguarding the Group's and the Company's assets, and detecting and preventing fraud and other irregularities within the Group and the Company. The Management Board of the Company is responsible for compliance with the requirements of the legislation of the Republic of Latvia and Bank of Latvia regulations to the Group and the Company.

Signed on behalf of the Company's Management Board by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

Financial statements

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Consolidated and Separate Statements of Comprehensive Income

	Notes	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
		Group	Group	Company	Company
		EUR' 000	EUR' 000	EUR' 000	EUR' 000
Commission and fee income	3	5 610	4 475	4 877	4 359
Commission expense	4	(569)	(129)	(2)	-
Net commission income		5 041	4 346	4 875	4 359
Interest income calculated using the effective interest rate	6	2 823	471	41	70
Interest expense	7	(1 701)	(773)	(302)	(303)
Net interest income		1 122	(302)	(261)	(233)
Dividend income		-	-	784	-
Net foreign exchange losses		(1)	-	-	-
Profit / (loss) on financial assets and liabilities not measured at fair value through profit or loss		19	-	-	-
Other operating income		427	150	1	-
Gain on bargain purchase	18	117	-	-	-
Other operating expenses	8	(251)	(104)	(176)	(65)
Administrative expenses	5	(11 120)	(8 694)	(3 021)	(3 128)
Depreciation and amortization	19,20,21	(1 935)	(680)	(55)	(51)
Allowances for expected credit losses		(1 146)	(89)	2	(2)
Profit / (Loss) before corporate income tax		(7 727)	(5 373)	2 149	880
Corporate income tax	9	(8)	(9)	(4)	(7)
Profit / (Loss) for the period, attributable to the owners of the shareholders		(7 735)	(5 382)	2 145	873
Profit / (Loss) for the period, attributable to the owners of the shareholders		(7 735)	(5 382)	2 145	873
Basic earnings per share	36	(1.39)	(1.18)	0.39	0.19
Diluted earnings per share	36	(1.39)	(1.18)	0.39	0.19

The notes on pages 24 to 120 form an integral part of these financial statements.
The financial statements have been authorised for issue on 25 February 2026 and signed on behalf of the Company's Management Board by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Consolidated and Separate Statements of Financial Position

	Notes	31.12.2025 Group	31.12.2024 Group	31.12.2025 Company	31.12.2024 Company
		EUR'000	EUR'000	EUR'000	EUR'000
ASSETS
Cash and balances with the central bank	10	20 291	35 374	-	-
Cash on hand		557	-	-	-
Current account balances with The Bank of Latvia		19 734	35 374	-	-
Current account balances with credit institutions	11	3 807	397	17	17
Financial assets measured at amortised cost		223 971	1 937	1 982	1 525
Loans and receivables from non-banks	12	216 115	987	-	-
Term deposits with credit institutions	11	1 892	876	1 916	1 451
Debt securities	13	5 898	-	-	-
Loans to associates	14	66	74	66	74
Financial assets at fair value through profit or loss	15	8 026	-	-	-
Investments in equity securities	16	62	62	62	62
Investment in associates	17	223	198	223	198
Investment in subsidiaries	18	-	-	68 552	18 084
Contract acquisition costs		1 526	1 567	1 526	1 567
Property, plant and equipment	19	1 531	618	21	28
Intangible assets	20	11 067	4 524	182	2
Goodwill	20	128	-	-	-
Intangible contract assets		1 234	-	-	-
Right of use assets	21	4 438	1 973	27	72
Finished goods, inventories and goods held for sale	22	3 002	68	-	-
Deferred tax assets	23	346	-	-	-
Prepayments	24	1 443	752	44	38
Other assets		2 751	970	1 267	491
Receivables		2 658	461	798	452
Prepaid corporate income tax		4	4	-	4
Other assets		89	505	469	35
TOTAL ASSETS		283 846	48 440	73 903	22 084

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

	Notes	31.12.2025	31.12.2024	31.12.2025	31.12.2024
		Group	Group	Company	Company
		EUR'000	EUR'000	EUR'000	EUR'000
EQUITY AND LIABILITIES
Bonds issued	25	70 865	-	-	-
Loans from credit institutions	26	23 500	-	-	-
Other borrowings	27	28 824	-	-	-
Financial liabilities measured at amortised cost		74 408	32 423	-	-
Customer deposits	28	72 606	32 423	-	-
Subordinated loans	29	1 802	-	-	-
Lease liabilities	21	4 887	2 042	30	77
Trade payables	30	1 707	515	40	21
Taxes and social security contributions payable		2 957	198	50	32
Accrued expenses and other liabilities	30	3 666	1 138	363	424
Total liabilities:		210 814	36 316	483	554
Equity
Share capital	31	9 997	4 760	9 997	4 761
Share option reserve	31	390	269	390	269
Other reserves
Share premium		61 888	17 525	61 888	17 525
Accumulated deficit		(10 406)	(5 048)	(1 000)	(1 898)
Profit / (loss) for the reporting period		(7 735)	(5 382)	2 145	873
Total equity attributable to shareholders
Non-controlling interest	18	18 898	-	-	-
Total equity:		73 032	12 124	73 420	21 530
TOTAL EQUITY AND LIABILITIES		283 846	48 440	73 903	22 084

The notes on pages 24 to 120 form an integral part of these financial statements.

The financial statements have been authorised for issue on 25 February 2026 and signed on behalf of the Company's Management Board by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Consolidated and Separate Statement of Changes in Equity

Group	Notes	Share capital	Share premium	Share options	Non-controlling interest	Accumulated deficit	Total
		EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
31.12.2023		3 795	7 094	379	-	(5 397)	5 871
Share option exercise	5, 30	43	32	(349)	-	349	75
Increase in Share option reserves	5	-	-	239	-	-	239
Increase in Share capital		922	10 399	-	-	-	11 321
Total comprehensive loss for the period		-	-	-	-	(5 382)	(5 382)
31.12.2024		4 760	17 525	269	-	(10 430)	12 124
Share issuance	5, 31	5 218	44 341	-	-	-	49 559
Non-controlling interest in the acquisition transaction	18	-	-	-	18 898	-	18 898
Share option exercise		19	22	(24)	-	24	41
Increase in Share option reserves	5	-	-	145	-	-	145
Total comprehensive loss for the period		-	-	-	-	(7 735)	(7 735)
31.12.2025		9 997	61 888	390	18 898	(18 141)	73 032
Company	Notes	Share capital	Share premium	Share Accumulated options	deficit	Total
---	---	---	---	---	---	---
		EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
31.12.2023		3 795	7 094	379	(2 246)	9 023
Share option exercise	5, 31	43	32	(349)	349	75
Increase in Share option reserves	5	-	-	239	-	239
Increase in Share capital		922	10 399	-	-	11 321
Total comprehensive profit for the period		-	-	-	873	873
31.12.2024		4 761	17 525	269	(1 024)	21 531
Share option exercise	5, 31	18	22	(24)	24	40
Increase in Share option reserves	5	-	-	145	-	145
Increase in Share capital	31	5 218	44 341	-	-	49 559
Total comprehensive profit for the period		-	-	-	2 145	2 145
31.12.2025		9 997	61 888	390	1 145	73 420

The notes on pages 24 to 120 form an integral part of these financial statements.

The financial statements have been authorised for issue on 25 February 2025 and signed on behalf of the Company's Management Board by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

INDEXO

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Consolidated and Separate Statements of Cash Flows

	Notes	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
		Group	Group	Company	Company
		EUR'000	EUR'000	EUR'000	EUR'000
Cash flow from operating activities
Profit / (Loss) before corporate income tax		(7 727)	(5 373)	1 360	881
Gain on bargain purchase		117	-	-	-
Depreciation of PPE and amortisation of right-of-use and intangible assets	19,20,21	1 935	663	55	50
Amortisation of contract acquisition costs	5	381	314	381	314
Expense Recognition of Share option reserves	31	145	239	145	239
Allowances for expected credit losses		1 146	89	(2)	1
Interest income calculated using the effective interest rate	6	(2 823)	(471)	(41)	(70)
Interest expense	7	1 701	773	302	303
(Decrease)/increase in cash and cash equivalents from operating activities before changes in operating assets and liabilities		(5 125)	(3 766)	2 200	1 718
Increase in receivables, prepayments, and other assets		(16)	858	(776)	(685)
Financial assets measured at amortized cost (including loans)	12	(57 339)	(1 070)	-	-
Increase / (decrease) in accrued liabilities		(394)	488	(504)	215
Increase/ (decrease) in trade payables and other liabilities	30	361	(2 115)	(31)	(129)
Financial liabilities measured at amortized cost including deposits	28	40 183	32 423	-	-
Corporate income tax	9	(8)	(9)	(4)	(7)
Interest received	6	2 823	471	41	70
Interest paid	7	(1 701)	(773)	(302)	(300)
Decrease in cash and cash equivalents from operating activities		(21 216)	26 507	624	882
Cash flow from investing activities
Intangible asset and PPE purchases	19,20,21	(3 128)	(3 601)	(173)	(12)
Investments in subsidiaries	18	-	-	(13 627)	(12 334)
Investments in associated company share capital	17	(25)	(71)	(25)	(71)
Issued loans	14	-	(24)	-	(24)
Repaid loans	14	-	3	8	707
Net cash inflow from acquisitions	18	14	-	-	-
Decrease in cash and cash equivalents from investing activities		(3 139)	(3 693)	(13 817)	(11 734)
Cash flow from financing activities
Share capital increase	31	12 410	11 396	12 924	11 396
Subordinated loans	29	1 802	-	-	-
Dividends received		-	-	784	-
Payment of principal of lease liabilities	22,32	(399)	(206)	(47)	(56)
Interest paid on lease liabilities	22	(115)	(64)	(3)	(3)
Increase in cash and cash equivalents from financing activities		13 698	11 126	13 658	11 337
(Decrease)/increase in cash and cash equivalents		(10 657)	33 940	465	485
Cash and cash equivalents at the beginning of the reporting period	10,11	36 647	2 707	1 468	983
Cash and cash equivalents at the end of the reporting period	10,11	25 990	36 647	1 933	1 468

The notes on pages 24 to 120 form an integral part of these financial statements.
The financial statements have been authorised for issue on 27 February 2025 and signed on behalf of the Company's Management Board by:

Henrik Karmo, Chairman of the Management Board

Marija Cernoštana, Member of the Management Board

Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Notes to the Consolidated and Company’s Financial Statements

1. General information

Investment management joint-stock company INDEXO was registered on 10 January 2017. The Company received a license for management of the state-funded pension scheme plans and license for investment management services on 16 May 2017. In 2020 the Company established a subsidiary "INDEXO Atklātais Pensiju Fonds" AS (hereinafter – "APF"), Financial and Capital Market Commission issued license on management of private pension funds on 21 January 2021. On 19 December 2022 the Company established a subsidiary AS INDEXO Banka (till May 2024 AS "IDX1R"), AS with the purpose to receive a banking license to begin bank operations in Latvia, which it successfully achieved May 15th, 2024, and changed its name to AS INDEXO Banka.

IPAS INDEXO manages:

State-funded pension scheme investment plan "INDEXO Jauda 16-55"
State-funded pension scheme investment plan "INDEXO Izaugsme 55-62"
State-funded pension scheme investment plan "INDEXO Konservatīvais 62+"

Indexo Atklātais Pensiju Fonds pension plans, managed by IPAS INDEXO:

Private pension scheme pension plan "INDEXO AKCIJU PLANS"
Private pension scheme pension plan "INDEXO OBLIGACIJU PLANS"

IPAS VAIRO manages:

State-funded pension scheme investment plan "VAIRO 1960-1969"
State-funded pension scheme investment plan "VAIRO 1970-1979"
State-funded pension scheme investment plan "VAIRO 1980-1989"
State-funded pension scheme investment plan "VAIRO 1990+"

Following approvals from the Bank of Latvia, the Bank of Lithuania, and the Competition Council, the voluntary share buyback offer for AS DelfinGroup expressed by IPAS INDEXO took place from 24 November 2025 until 8 December 2025 and was completed on 15 December 2025. As a result, IPAS INDEXO acquired 30 643 883 shares in AS DelfinGroup, representing 67.42% of the total voting share capital of DelfinGroup. On 19 January 2026, following the mandatory share buyback offer for AS DelfinGroup, IPAS INDEXO acquired an additional 1 862 021 shares in AS DelfinGroup, representing 4.10% of the total voting share capital. The total number of AS DelfinGroup shares acquired by IPAS INDEXO amounts to 32 505 904 shares, representing 71.52% of the total voting share capital of AS DelfinGroup.

AS DelfinGroup is a Latvian fintech company holding a consumer lending licence issued by the Consumer Rights Protection Centre, CRPC, established in 2009 and currently operating in Latvia, Lithuania, and Romania. In addition to operating under the DelfinGroup brand, the Company also operates under the Banknote and VIZIA brands. AS DelfinGroup has been profitable every year since 2010 and has been listed on the stock exchange since 2021. In 2020, a dividend distribution policy was approved, providing for regular quarterly dividend payments of 50% of the previous quarter's profit. The Company continuously develops and offers consumer loans, unsecured loans, short term and long-term pawn loans, as well as the retail sale of used, slightly used, and new goods through

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

more than 80 branches across Latvia, as well as online.

Following the approval from the Bank of Latvia, on 19 September 2025, IPAS INDEXO acquired IPAS VAIRO ("VAIRO"), obtaining 100% of VAIRO's shares. The total transaction amount was EUR 1.45 million. As a result of the transaction, IPAS VAIRO has been included in the INDEXO Group, and VAIRO's pension pension 2nd pillar plans continue to operate as before. VAIRO is an independent local pension management company that has been offering adaptive 2nd pillar pension plans since 2023. IPAS VAIRO is an investment management company that manages Latvian 2nd pillar pension plans. At the time of acquisition, 13 084 clients had entrusted more than EUR 89 million in pension assets to IPAS VAIRO. The integration of VAIRO into the INDEXO Group represents a positive development for VAIRO's clients and for the Latvian financial sector. As a result of the transaction, INDEXO strengthens a local financial services group that operates in the interests of the Latvian population.

The core idea of INDEXO has always been to transform the stagnant Latvian financial sector, first by introducing low-cost index linked pension investment plans and now by offering refinancing solutions for expensive mortgage loans. The strategic investments made in 2025 will enable INDEXO to build a leading local financial services group that will provide a broad, modern, and cost-efficient range of services to Latvian residents, ranging from pension management to various lending solutions. It is important to emphasize that all companies within the INDEXO Group, including INDEXO pension management, INDEXO Bank, and DelfinGroup's consumer lending operations, are already experiencing strong growth. Each company will continue to implement its own development and growth plans in line with its respective strategy, while the combination of capabilities will create additional synergies in product portfolios, distribution channels, and the financing of further expansion, thereby increasing the value of the newly formed Group for all shareholders.

IPAS INDEXO, INDEXO Banka, INDEXO APF, IPAS VAIRO, AS DelfinGroup, SIA ViziaFinance, UAB DelfinGroup LT, DealShoq SIA and Delfingroup Ro IFN S.A. together form the Group.

IPAS INDEXO, INDEXO APF and IPAS VAIRO are engaged in the management of assets under the state funded pension scheme and the management of assets under private pension schemes on behalf of clients.

The diagram below presents the entities of INDEXO Group.

Data as of 31 December 2025

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Basis of preparation

The Group's and the Company's Financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by European Union (IFRS). Having assessed the most significant risks, Management considers the application of the going concern principle in the preparation of these financial statements to be appropriate and concludes that no material uncertainty exists in relation to the application of the going concern assumption. Certain notes have been prepared in accordance with the requirements set out in the regulations issued by the Bank of Latvia. The financial statements of the Group and the Company have been prepared under the historical cost convention, except for investments in equity instruments and pawn loans, which are measured at fair value, see Note 15. The financial year of the Group and the Company coincides with the calendar year.

Functional currency

Items included in the financial statements of each of The Group's and the Company's financial statements are presented measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). Financial statements are presented in the official currency of the Republic of Latvia – the euro ("EUR"), unless stated otherwise.

Financial statements of the Group and the Company have been prepared on a going concern basis. Cash flows from operating activities in the statement of cash flows have been prepared using the indirect method.

The Group and the Company present assets and liabilities in order of liquidity, as Management considers this presentation to be more appropriate given that the services provided by the Group and the Company do not arise within a clearly defined operating cycle.

2. Significant Information on Accounting Policies

This note presents the most significant accounting policies consistently applied by the Group and the Company during 2025 and 2024, as well as newly adopted standards and interpretations.

New standards and interpretations

New standards or amendments that became effective for the first time for the reporting period beginning on 1 January 2025:

Lack of Exchangeability (Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates) The Group and the Company have not had transactions affected by the new standards or their amendments in force, or their accounting policies already comply with the requirements of the new standards.

The following illustrative examples were issued in 2025 and do not have an effective date:

Illustrative Examples on the Presentation of Uncertainty in Financial Statements

The Group and the Company are currently assessing the impact of these amendments on their financial statements. Based on the initial assessment, the adoption of the new standards and interpretations will not have a material impact on the Bank's financial statements in the period of their initial application.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

New standards and interpretations not yet effective

Several new standards or amendments to standards are effective (some of which have not yet been endorsed by the EU) for reporting periods beginning after 1 January 2025, and earlier application is permitted; however, in preparing these financial statements, the Bank has not early adopted the new standards or amended standards and does not intend to adopt them before their effective date.

The Group and the Company are currently assessing the potential impact, if any, of these new standards and interpretations.

Effective Date	New Accounting Standard or Amendments	EU Endorsement
1 January 2026	Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7);	In progress
1 January 2026	Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)	In progress
1 January 2027	IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024)	In progress
1 January 2027	IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024)	In progress

The Group and the Company are currently assessing the impact of the amendments on their financial statements. Based on the initial assessment, the adoption of the new standards and interpretations will not have a material impact on the financial statements of the Group and the Company in the period of their initial application.

2.1. Estimates and Judgements

In preparing the financial statements in accordance with IFRS Accounting Standards, the management of the Group and the Company is required to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and the related assumptions are based on historical experience and various other factors that are considered reasonable under the circumstances and which collectively form the basis for making judgements about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Significant Accounting Judgements, Estimates, and Related Assumptions

Review of Accounting Estimates

Accounting estimates and the related assumptions are regularly reviewed. Changes in accounting estimates are recognized in the period in which the estimates are revised if the changes affect only that period, or in the period of revision and future periods if the changes affect both the current and subsequent periods.

Assessment of Recoverable Amount of Investments in Subsidiaries

In preparing the financial statements, the Company has made significant judgements and estimates regarding the assessment of the recoverable amount of investments in subsidiary capital.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Contract Acquisition Costs and Their Amortization

The Group and the Company have made estimates regarding contract acquisition costs and their amortization period. The portion of variable remuneration of employees involved in client acquisition is recognized as a contract cost asset. These costs are amortized over a seven-year period.

Share-based Payments

In preparing the financial statements, the Group and the Company have applied significant judgements and estimates in relation to share-based payments.

Lease Accounting and Discount Rates

The Group has made judgements and estimates regarding the application of the lease standard requirements. In 2024, annual discount rates of 6.4% and 6.36% were applied to lease payments depending on the specific lease agreement.

Amortization of Intangible Assets (Software and Systems)

The Group’s business plan envisages the gradual development of new banking products, requiring significant system enhancements. Given the rapid technological developments, particularly in software, the Group and the Company plan to implement intangible assets gradually in stages according to the needs of new processes and products. Based on this assessment, it was decided to amortize the systems over five years, applying an annual amortization rate of 20% for software-related intangible assets.

Determination of Significant Increase in Credit Risk

To determine a significant increase in credit risk, the Group evaluates multiple indicators in both automated and manual processes that reflect deterioration in a client’s risk profile. Days past due, PD, and changes in the client’s creditworthiness relative to the initial assessment are analyzed. If it is determined that the client’s credit risk has increased significantly or a specific delinquency threshold is reached, the relevant asset is classified as Stage 2.

Loan to an Associate and Expected Credit Losses

The Company has made significant judgements and estimates regarding the loan to an associate. Since the loan is unsecured, a 100% LGD is applied in calculating the expected credit loss. The lifetime PD is determined at 4.19%.

SPPI Assessment of Lombard Loans

The SPPI assessment for lombard loans is highly subjective. In determining whether the SPPI criteria are met, primary attention was given to the absence of recourse in the loans, combined with a relatively high risk of default and the loan pricing structure. Given that income from lombard loans in the event of default is closely linked to the sale of collateral, it was concluded that lombard loans do not meet the SPPI criteria and therefore must be measured at fair value through profit or loss. These risk assessment and management procedures are somewhat limited due to the collateral used for the loan.

Fair Value of Lombard Loans

Determining the fair value of lombard loans requires judgement in estimating the amount and

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

timing of future cash flows to determine the fair value of performing lombard loans, and the amount and timing of future cash flows from collateral realization for non-performing loans. Elements of the fair value model for performing loans are determined by the portfolio's effective interest rate and free cash flows. Calculations of the fair value for non-performing loan portfolios depend on the expected timing of collateral realization, its market price, related selling costs, and the applicable discount rate. Fair value model elements and parameters are regularly reviewed and updated as necessary; see Note 32 "Fair Value of Financial Assets and Liabilities."

11. Net Realizable Value of Inventories

The Group's inventory costs may need to be written down to their net realizable value if inventories are damaged, fully or partially obsolete, or if their selling price has declined. Inventory costs may not be recoverable through sale, as completion or estimated selling costs increase. Write-downs to net realizable value are performed individually for each item. Estimates of net realizable value are based on the most reliable evidence available and take into account post-period-end price or cost fluctuations if there is evidence of such conditions at the end of the period.

12. Lease – Estimation of Incremental Borrowing Rate

When the Group cannot readily determine the interest rate implicit in a lease, it uses the incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate that the Group would have to pay to borrow, over a similar term and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a comparable economic environment. Therefore, the IBR reflects what the Group "would have to pay," which requires estimates when actual rates are not available or need adjustment to reflect the lease terms and conditions. The Group estimates the IBR using observable data (e.g., market interest rates) where available and performs necessary company-specific calculations. The measurement of leases is based on the contract term, and no significant judgements are applied beyond this.

13. Identification of Capitalized IT System Costs

The Company and the Group apply professional judgement to distinguish IT system development and implementation costs that meet capitalization criteria from costs recognized in profit or loss in the period incurred. Only costs directly attributable to the creation/configuration and preparation of the system for use (e.g., development, configuration, integration, testing, significant enhancements) that are reliably identifiable and documented are capitalized. Research, training, routine maintenance/support, and general administrative costs are generally not capitalized and are recognized in profit or loss.

14. Expected credit loss (ECL) measurement

Expected credit loss (ECL) is calculated based on estimates of probability of default (PD), exposure at default (EAD), loss given default (LGD), the timing of loss occurrence, as well as forward-looking macroeconomic scenarios. Small changes in these assumptions, including PD thresholds for determining significant increase in credit risk or the weightings of macroeconomic scenarios, may result in material changes in the level of expected credit loss allowances.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

15. Forward-looking macroeconomic information (FLI)

The selection of macroeconomic scenarios and the assessment of their impact on credit risk involve management judgement. The application of different assumptions regarding the development of economic conditions could materially affect the results of ECL calculations.

16. LGD and collateral recoverability

The determination of LGD is subject to uncertainty, as it is based on external data sources and assumptions regarding the amounts and timing of collateral realisation. Changes in these assumptions may materially affect credit loss allowances.

17. Assessment of the Recoverable Amount of Investments in Subsidiaries

Impairment of investments in subsidiaries is calculated with reference to the recoverable amount of the investment. When the recoverable amount is lower than the carrying amount, an impairment loss is recognized. The recoverable amount of INDEXO APF is determined based on the present value of projected future cash flows. The recoverable amount of AS INDEXO Bank (known as "IDX1R" AS until May 2024) is determined based on the present value of projected future cash flows and the Bank's expected future value. See Note 18.

18. Contract Acquisition Costs - Customer Acquisition Expenses

The Group and the Company recognize a contract acquisition cost asset when they expect to recover these costs. Contract acquisition costs are expenses incurred by the Group and the Company in concluding contracts with their clients, which would not have been incurred if the specific contracts had not been concluded (directly attributable costs).

Costs incurred by the Group and the Company regardless of whether a contract is concluded are recognized in profit or loss in the year in which they are incurred, except for costs that can be directly passed on to the Group's and the Company's clients regardless of whether a contract is concluded. Directly attributable costs associated with acquiring a client contract are recognized as an asset in the statement of financial position. If the expected amortization period of the potential contract cost asset is less than one year, the Group and the Company recognize the costs incurred in concluding contracts in profit or loss in the year they are incurred.

The contract cost asset is recognized at its carrying amount, less accumulated amortization and impairment. Accumulated amortization is recognized systematically based on the pattern of services provided under the contract over its expected life, taking into account the expected revenue generation profile.

The Group and the Company recognize the variable remuneration of employees involved in client acquisition as a contract cost asset, amortizing it over a seven-year period. Management considers that the variable remuneration of client acquisition specialists meets the definition of directly attributable costs under IFRS 15 "Revenue from Contracts with Customers," as such costs would not arise without client acquisition and are recoverable.

Capitalized client acquisition costs are recognized in the statement of financial position under "Contract Acquisition Costs," while amortization of these costs is recognized in the statement

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

of comprehensive income under "Administrative Expenses."

	31.12.2025	31.12.2024	31.12.2025	31.12.2024
	Group	Group	Company	Company
	EUR	EUR	EUR	EUR
Customer acquisition costs	1526 565	1566 969	1526 565	1566 969
Total	1526 565	1566 969	1526 565	1566 969

The Group capitalises the variable compensation (including employer's social security contributions) of specialists involved in customer acquisition. The capitalised expenses are amortised over a period of seven years.

According to the data of the State Social Insurance Agency, in the reporting period, on average 15% of participants in the investment plans managed by the Group opted for other investment plans registered in Latvia, while 85% of participants remained in the plans managed by INDEXO. This means that if this indicator remains unchanged in the coming years, a participant of the investment plans managed by the Group will remain a client of INDEXO for about 12-14 years on average. Therefore, the Group believes that the amortisation of the variable compensation of customer acquisition specialists related to customer acquisition over a period of seven years is appropriate.

Customer acquisition costs	EUR	EUR
	Group	Company
31.12.2023.	1 389 048	1 389 048
Capitalised salary costs, including national social insurance mandatory contributions	492 126	492 126
Amortisation of capitalised salary costs, including national social insurance mandatory contributions	(314 205)	(314 205)
31.12.2024.	1 566 969	1 566 969
Capitalised salary costs, including national social insurance mandatory contributions	340 792	340 792
Amortisation of capitalised salary costs, including national social insurance mandatory contributions	(381 196)	(381 196)
31.12.2025.	1 526 565	1 526 565

19. Share-based Payments

The shareholders' meeting of IPAS INDEXO has granted the management and employees of INDEXO the right to purchase the Company's shares. These purchase rights are classified in the Group's and the Company's financial statements as a share-based payment—an equity-settled transaction—in accordance with IFRS 2 requirements. The shareholders of AS DelfinGroup have approved a share option plan for employees and the Group's management, under which rights to acquire AS DelfinGroup shares are granted in accordance with the approved plan terms. When determining the fair value of share purchase rights at the grant date, the management of the Group and the Company considered information on actual direct and indirect transactions in the Company's shares available to them. At the end of each reporting period, the management of the Group and the Company estimates the probability of exercise of share purchase rights by assessing individually the

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

conditions of the vesting period for management and employees, including continued employment within the Group and the Company, expected performance, and recognizes provisions for expected personnel-related tax payments accordingly. See Note 5.

In determining the grant-date fair value of share-based payments, Group management applied significant professional judgement in evaluating available market data. Since both INDEXO and AS DelfinGroup are publicly listed companies, the share price at the grant date, along with other relevant market data, is used as a key input in determining fair value. The fair value estimate is the main source of estimation uncertainty, as it is sensitive to assumptions regarding the share price, expected volatility, and the risk-free interest rate.

At the end of each reporting period, the management of the Group and the Company makes a significant estimate of the expected grant to be used by individually assessing the probability of exercise of share options. This assessment takes into account factors such as expected operational performance during the vesting period, including tenure within the Group and the Company, performance, and potential forfeiture of grants. Accordingly, the Group and the Company recognize provisions for expected personnel-related tax payments, which depend on the estimated exercise rate of the grant and future tax law.

In accordance with IFRS 1.125 and 1.129, the Group discloses a sensitivity analysis, showing how reasonable changes in key assumptions (e.g., share price volatility or estimated exercise rate of the grant) could materially affect share-based payment expenses. Further details are provided in Note 5.

2.2. Significant Policies

1. Basis of Consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it has the right to, or receives, variable returns from its investment in that entity and can affect the amount of those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date control is obtained until the date control ceases.

For practical reasons, when the Group acquires control over an entity, a "convenience date" may be used, as permitted under IFRS 3. This means that if the actual date of obtaining control differs from the Group's selected practical date, the Group uses the practical date for consolidation and acquisition accounting, provided that no transactions or events occurred between these dates that would materially affect the financial position or operating results of the acquired entity.

Investments in subsidiaries are recorded in the Company's separate financial statements at acquisition cost, less any impairment losses, if applicable.

Loss of Control

When the Group loses control over a subsidiary, it derecognizes the subsidiary's assets and liabilities, along with any related non-controlling interests and other equity components. Any gain or loss arising is recognized in profit or loss. If the Group retains an interest in the former subsidiary, such interest is

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

measured at fair value at the date control is lost.

Transactions Eliminated in Consolidation

In preparing these consolidated financial statements, intercompany balances and transactions of Group entities, as well as unrealized gains on transactions between Group companies, have been eliminated. Unrealized losses are eliminated in the same manner as unrealized gains, but only to the extent there is no evidence of impairment.

Uniform Group Accounting Policies

In preparing the consolidated financial statements, the financial statements of Group entities applying accounting policies different from the Group's policies are adjusted to conform to the Group's accounting policies.

Associates

Investments in associates are accounted for using the equity method in the consolidated financial statements.

2. Assets under Management

The Group and the Company manage and administer assets on behalf of their clients, which are held in custodian bank securities and cash accounts. Financial information relating to these assets is not included in these financial statements, as the risks and rewards associated with these assets are entirely attributable to the Group's and the Company's clients. Accordingly, these assets are not recognized as assets of the Group or the Company. For informational purposes, assets under management are included in these financial statements; see Note 40.

3. Intangible Assets and Property, Plant, and Equipment

Intangible assets and property, plant, and equipment are stated at cost, less accumulated depreciation and accumulated impairment. Cost includes expenditures directly attributable to the acquisition of the intangible asset or property, plant, and equipment.

Depreciation Rates Applied for Intangible Assets and Property, Plant, and Equipment Using the Straight-Line Method:

	Years
Software	5
Equipment	3
Computers	3
Furniture	3
Other fixed assets and inventory	3-5
Buildings and constructions	20
Long-term investments in leased fixed assets	1-19
Right-of-use for premises	1-19
Right-of-use for vehicles	3-4
Intangible contractual assets	7
Fair value revalued intangible assets	5
Fair value revalued intangible contractual assets	7
Fair value revalued receivables from loans issued	4

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

All intangible assets are IT investments. IT investments are used in the operations of the Group and the Company to support client acquisition and service, including the mobile application and various other systems. For more detailed information, see Note 19 and 20.

The Group tests intangible assets for impairment at least annually and whenever there are indications that an intangible asset may be impaired. Any impairment losses are recognized as expenses in the profit or loss statement for the period in which they occur. When subsidiaries are disposed of, the profit or loss on disposal includes the carrying amount of intangible assets related to the sold subsidiary.

Software maintenance costs are recognized in profit or loss in the period in which they are incurred. Software installation and customization costs that are directly attributable to identifiable and unique software products controlled by the Group and the Company are recognized as intangible assets if the following criteria are met:

It is possible to use or sell the software;
It can be demonstrated that the software will generate future economic benefits; and
The costs associated with acquiring the software can be measured reliably.

Current repair and maintenance costs of fixed assets are included in profit or loss for the period in which they are incurred.

Gains or losses from the disposal of fixed assets are calculated as the difference between the carrying amount of the asset and the proceeds from sale, and are included in profit or loss for the period in which they occur.

Capital repair costs of leased fixed assets are amortized on a straight-line basis over the shorter of the useful life of the improvements and the lease term. Current repair and maintenance costs of fixed assets are included in profit or loss for the period in which they are incurred.

The residual values, useful lives, and depreciation methods of assets are reviewed and adjusted, if necessary, annually.

Goodwill

Goodwill represents the excess of the cost of acquiring a subsidiary over the fair value of the identifiable net assets of the subsidiary at the acquisition date. Goodwill arising from the acquisition of subsidiaries is included in intangible assets.

Goodwill reflects the excess of the cost of a business combination over the Group's share in the fair value of the acquired identifiable assets, liabilities, and contingent liabilities. The cost includes the fair value of the transferred assets, assumed liabilities, and issued equity instruments, plus any non-controlling interest in the acquired company, as well as the fair value of any previously held interest in the acquired company if the business combination is achieved in stages.

Contingent consideration is included in the cost at its fair value at the acquisition date, and if classified as a financial liability, it is subsequently remeasured through profit or loss.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Goodwill is allocated to cash-generating units and is recorded at cost less any accumulated impairment losses.

Impairment tests for goodwill are conducted annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is carried at cost less accumulated impairment losses.

Gains or losses on the disposal of a subsidiary include the carrying amount of goodwill attributable to the sold subsidiary.

Negative goodwill arising on an acquisition is recognized in the consolidated profit or loss at the acquisition date.

Impairment losses on goodwill are not reversed.

In 2025, the fair value of the identifiable net assets of each subsidiary was assessed at the acquisition date. As a result, fair value adjustments were made to the following asset items (see Note No. 18).

For the subsidiary AS DelfinGroup:
1) Receivables from loans issued;
2) Intangible assets.

For the subsidiary IPAS VAIRO:
1) Intangible contractual assets.

The fair value adjustments made will be amortized in accordance with the Group’s accounting policies (see Note No. 2, section "Intangible Assets and Fixed Assets").

4. Inventories

Inventories consist of card plastics, goods for resale, and gold products that are purchased and held for further sale. The Group uses the perpetual inventory method for inventory accounting.

Inventories are measured at cost. At the end of each reporting period, the Group assesses whether there is objective evidence of a decline in the value of inventories and creates provisions for slow-moving or damaged stock. Inventory losses are recognized at the time they are identified by writing off the respective inventories in the profit or loss statement for the period.

Inventories are measured at the lower of cost or net realizable value. For the usage of card plastics, cost and remaining value are determined using the FIFO (First In, First Out) method.

5. Leases

Classification

At the inception of a contract, the Group and the Company assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Lessee

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

A lease is recognized as a right-of-use asset and a corresponding lease liability on the date the leased asset becomes available for use by the Group and the Company. The cost of the right-of-use asset comprises:

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.

Restoration costs related to dismantling and restoring the underlying asset are separately classified as provisions and the related assets.

Depreciation is calculated on a straight-line basis from the commencement date of the lease to the end of the lease term, unless it is expected that the asset will be purchased. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for remeasurement of the lease liability.

Assets and liabilities arising from leases are measured at the present value of remaining lease payments, discounted using the Group's and Company's incremental borrowing rate at the initial application date, based on the Latvijas Banka domestic lending rate for enterprises at the initial recognition date. Lease liabilities are remeasured if future lease payments change due to a change in an index or rate used to determine these payments, if the Group's and Company's estimate of expected payments changes, or if the Group and the Company change their assessment of exercising purchase options, extending, or terminating the lease. When lease liabilities are remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or recognized in profit or loss if the carrying amount of the right-of-use asset is reduced to zero.

Each lease payment is allocated between the lease liability and interest expense on the lease liability. Interest expense on lease liabilities is recognized in profit or loss over the lease term to produce a constant periodic interest rate on the remaining lease liability for each period.

Right-of-Use Assets

The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date when the underlying leased asset is available for use). Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for any remeasurement of the lease liability. The cost of right-of-use assets includes the recognized lease liability, initial direct costs, and lease payments made at or before the commencement date, less any lease incentives received. If the Group is not reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of the asset's estimated useful life or the lease term. Right-of-use assets are tested for impairment.

Lease Liabilities

At the commencement date, the Group recognizes lease liabilities measured at the present value of lease payments over the lease term. Lease payments include fixed payments (including significant fixed components), less any lease incentives receivable, variable lease payments that depend on an

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

index or rate, and amounts expected to be payable under residual value guarantees. Lease payments also include the exercise price of purchase options if the Group reasonably expects to exercise the option, and penalties for lease termination if the lease term reflects that the Group will exercise the termination option. Variable lease payments that are not dependent on an index or rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

To calculate the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the lease liability is increased to reflect interest accrual and reduced by lease payments made. Additionally, the carrying amount of the lease liability is remeasured if there are changes in the lease term, changes in fixed lease payments, or changes in the assessment of the purchase option for the underlying asset.

Short-Term Leases and Leases of Low-Value Assets

Lease payments related to short-term leases or leases of low-value assets are recognized as expenses on a straight-line basis in profit or loss. A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. For more details, see Note 22.

The Group applies the short-term lease recognition exemption to leases with a term of 12 months or less from the commencement date that do not contain a purchase option. This also applies to the low-value asset recognition exemption for leased equipment considered low-value (i.e., less than EUR 4,500). Lease payments for short-term leases and leases of low-value assets are recognized as expenses on a straight-line basis over the lease term.

6. Investments in Subsidiaries and Associates (Company)

Investments in subsidiaries (i.e., companies in which the Company owns more than 50% of the share capital or otherwise controls) are initially recognized at cost, less any impairment losses.

After initial recognition, investments in subsidiaries are carried at cost, less any impairment losses.

If there is objective evidence that the carrying amount of an investment in a subsidiary has been impaired, the impairment loss is calculated as the difference between the carrying amount of the investment and its recoverable amount. The recoverable amount is determined as the higher of the investment's fair value, less costs to sell, and its value in use. Impairment losses on investments may be reversed if the estimates used to determine the impairment have changed since the last recognition of an impairment loss. The assumptions applied are described in detail in Note 18.

Dividends received from subsidiaries are recognized when the Company's right to receive them is established.

Associates are entities over which the Company has significant influence or joint control. Typically, the Company holds 20% to 50% of the voting shares. Investments in associates are initially recognized at cost and subsequently accounted for using the equity method.

7. Revenue and Expense Recognition

Interest Income and Similar Income

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Interest income and expenses are recognized in the comprehensive income statement using the effective interest rate (EIR) method.

For debt financial assets measured at amortized cost, the Group calculates interest income by applying the EIR to the gross carrying amount of the financial assets, except for assets with credit-impaired status. The EIR is the rate that exactly discounts estimated future cash flows or receipts over the expected life of the financial instrument, or, if appropriate, a shorter period to the net carrying amount of the financial asset or liability. The calculation considers all contractual terms of the financial instrument and includes all fees or incremental costs directly attributable to the instrument that are an integral part of the EIR, but excludes future credit losses. The carrying amount of a financial asset or liability is adjusted if the Group revises its estimates of future cash flows. The adjusted carrying amount is calculated based on the original EIR, and changes in carrying amount are recognized as interest income or expense.

When a financial asset is impaired, the Group calculates interest income using the effective interest rate applied to the asset's amortized net carrying amount. If the financial asset's condition improves and it is no longer credit-impaired, the Group returns to calculating interest income on a gross basis.

For purchased or originated credit-impaired (POCI) financial assets, the Group calculates interest income using the credit-adjusted EIR applied to the amortized cost of the asset. The credit-adjusted EIR is the rate that, at initial recognition, discounts estimated future cash flows (including credit losses) to the amortized cost of the POCI asset.

Interest income on pawn loans is calculated by applying the nominal interest rate to the gross carrying amount of the pawn loan. Interest is recognized for performing pawn loan portfolios until the loan becomes non-performing.

8. Interest Expenses and Similar Costs

The effective interest rate on financial liabilities is calculated at initial recognition. Interest expense is calculated by applying the EIR to the gross carrying amount of the liability. The EIR is periodically adjusted to reflect changes in cash flows from variable-rate instruments due to market interest rate changes.

Fees for managing the State-Funded Pension Scheme (SFPS) and private pension plans are calculated as a percentage specified in the plan prospectus of the average net asset value of the plan during the reporting period. Management fees are accrued daily, with settlements made monthly. Revenue received by the Company for asset management is recognized over time as the related performance obligations are satisfied, without requiring significant judgment to determine the transaction price or the completion of performance obligations.

Accrued income or contract assets at each period-end are presented under "Other Assets."

When determining the management fees for private pension plan and SFPS funds, the Company considers the maximum fee limits established in Cabinet Regulation No. 765 "Procedure for calculating and accounting management fees for state-funded pension scheme funds."

Other commissions and income and expenses are recognized when the related service is provided.

9. Other Income

Other income is recognized on an accrual basis when services are performed.

Revenue from contracts with customers is recognized when the Group satisfies a performance

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

obligation by transferring control of the promised goods or services to the customer. Control transfer is primarily indicated by the transfer of risks and rewards under the delivery terms. The Group typically satisfies its performance obligations at a point in time. Revenue allocated to performance obligations satisfied over time is not material. When a performance obligation is satisfied, the transaction price allocated to that obligation is recognized as revenue. The transaction price is the amount the Group expects to be entitled to in exchange for transferring promised goods or services to the customer. It is allocated to performance obligations in the contract based on the relative stand-alone selling prices of promised goods or services. Revenue is presented net of indirect taxes, such as VAT, penalties, and discounts.

Revenue from the sale of goods and precious metals includes the sale of short-term use goods and precious metals through the Group's branch network and online store. For retail customers, revenue is recognized at the point of control transfer, i.e., when the customer purchases goods in-store or when goods are shipped in online sales. Payment of the transaction price is due immediately at the time of purchase.

Other revenue includes revenue from providing pawn services—commission income for the storage of pawn collateral and the sale of collateral from non-performing pawn loans. Performance obligations are satisfied over time, and payment is typically made upon repayment of the pawn loan or through the sale of collateral from non-performing loans.

Dividend income is recognized when the Group's right to receive the dividend is established. Dividends are presented under "Other Income" and are recognized at gross value.

10. Expenses

Expenses are recognized on an accrual basis in the period in which they are incurred, regardless of the invoice payment date.

11. Foreign Currency Transactions

Transactions in foreign currencies are converted into the functional currency (EUR) at the European Central Bank (ECB) reference rate published on the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the ECB reference rate published on the reporting date.

	31.12.2025	31.12.2024
	1 EUR	1 EUR
USD	1.175	1.04

Foreign currency gains or losses on monetary items are determined as the difference between the amortized cost of the items in the functional currency at the beginning of the period - adjusted for interest income or expenses recognized during the period using the effective interest rate and for any payments received or made - and the amortized cost of the items in the foreign currency at the end of the period, translated using the ECB reference rate published at the end of the period.

Gains or losses resulting from foreign exchange rate fluctuations are recognized in the comprehensive income statement. At the end of the reporting period, the Group and the Company do not hold any foreign currency-denominated assets or liabilities.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

12. Financial Instruments

Initial Recognition and Measurement

Financial assets and financial liabilities are recognized in the statement of financial position on the date when the contractual terms of the instrument become binding on the Group and the Company. All regular purchases and sales of financial assets are recognized on the settlement date, which is the date the financial asset is received or delivered.

Financial assets or financial liabilities are initially measured at fair value, including transaction costs directly attributable to the acquisition of the financial asset or liability.

After initial recognition, expected credit losses are recognized for financial assets measured at amortized cost, resulting in impairment losses on financial instruments being recognized in profit or loss.

If the fair value of a financial asset or liability differs from the transaction price at initial recognition, the Group and the Company account for the difference as follows:

If the fair value can be determined using a quoted price in an active market for an identical asset or liability (i.e., Level 1 of the fair value hierarchy), or based on a valuation technique that uses only observable market data, the difference is recognized in profit or loss.
In all other cases, the difference is deferred, and the period for recognizing the deferred day-one profit or loss is determined individually. It may be amortized over the life of the instrument, deferred until the fair value can be determined using observable market data, or recognized at realization.

Classification and Subsequent Measurement

Financial Asset Classification

At initial recognition, the Group and the Company classify all financial assets based on:

The business model under which the assets are managed, and
The contractual cash flow characteristics of the financial asset (SPPI criterion - whether the cash flows consist solely of principal and interest on the outstanding principal).

Under IFRS 9, classification is determined by assessing:

Whether financial assets are held to collect contractual cash flows (HTC);
Whether assets are held both to collect contractual cash flows and for sale (HTCS);
Whether assets are held for trading purposes (TRD).

Based on the business model and the SPPI criterion, financial assets are classified into one of the following measurement categories:

Amortized cost (AmC);
Fair value through other comprehensive income (FVOCI);
Fair value through profit or loss (FVTPL).

Within the Group's and the Company's business model, financial assets are primarily held to collect contractual cash flows and meet the SPPI criterion. Accordingly, such financial assets, including securities, are classified and measured at amortized cost (AmC).

Financial assets and liabilities in the statement of financial position are classified as current or non-current based on the expected realization or settlement of contractual cash flows. Expected credit loss

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

(ECL) allowances are presented in the same maturity category as the corresponding financial assets to which they relate.

Financial Assets Measured at Amortized Cost

This category includes, for example:

Consumer loans;
Mortgage loans;
Receivables from counterparties;
Receivables from issuers;
Trade receivables;
Technical overdrafts;
Cash and cash equivalents (where applicable).

These assets are subsequently measured at amortized cost using the effective interest rate (EIR) method and are subject to the IFRS 9 expected credit loss (ECL) model.

A consumer loan is a type of credit granted to individuals to finance personal expenses without collateral, typically used for urgent purchases, household needs, or existing debt consolidation.

A current account overdraft is a short-term loan allowing account holders to withdraw more than the available balance, usually with applicable interest and defined repayment terms.

A mortgage loan is a long-term loan provided to individuals for the purchase, construction, or significant renovation of real estate. The loan is secured by a pledged property serving as collateral for repayment. The Bank currently offers refinancing of existing mortgage loans previously taken with another creditor.

Financial Assets at Fair Value Through Profit or Loss (FVTPL)

Financial assets classified at fair value through profit or loss include equity investments and pawn loans.

Equity instruments are instruments that meet the definition of equity from the issuer's perspective; that is, instruments that do not contain contractual obligations to deliver cash or other financial assets and represent a residual interest in the issuer's net assets. Examples of equity instruments include ordinary shares. The Group and the Company measure all equity investments at fair value through profit or loss. Dividends, when they represent a return on such investments and the Group and the Company have established rights to receive them, are recognized in profit or loss.

Expected Credit Losses on Financial Assets

The expected credit loss (ECL) is calculated by considering the probability of default (PD), the exposure at default (EAD), loss given default (LGD), and the timing of losses.

Probability of Default (PD) reflects the likelihood that a loan will not be repaid and obligations will not be fulfilled within the next 12 months (for Stage 1 financial instruments) or over the instrument's lifetime (for Stage 2 and Stage 3 financial instruments). When estimating PD for each individual instrument, client categories and relevant external historical information are considered to incorporate reasonable forward-looking economic conditions.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Exposure at Default (EAD) represents the estimated credit exposure at the time of default and is modeled each time the ECL is calculated.

Loss Given Default (LGD) reflects the portion of the exposure that is not expected to be recovered in the event of default and is determined considering collateral and recovery prospects.

The maximum period over which ECL is assessed is the maximum contractual term during which the Group and the Company are exposed to credit risk.

The ECL calculation incorporates macroeconomic factors affecting credit risk development. Forward-looking information (FLI) adjustments to the ECL are made based on historical correlations between key macroeconomic indicators and default probability, using expert judgment and external data sources. At minimum, a base scenario and one adverse scenario are used for FLI assessment.

In accordance with IFRS 9, the Group applies a specific approach for calculating ECL on loans issued by Group companies operating in consumer lending. Expected credit losses are determined based on historical data from the Group companies, calculating the probability of default (PD) according to the defined default criteria and loss given default (LGD) ratios, taking into account recoveries from non-performing or defaulted loans, including Stage 3 loans.

Credit Portfolio (Consumer and Mortgage Loans) ECL Model

The Group uses a collective ECL model for loans, including those in Stage 3. This model is applied to homogeneous groups of retail loans, such as consumer and mortgage loans, as individual assessments would be disproportionately costly relative to potential losses.

For mortgage loans, LGD is determined individually for each loan based on the characteristics of the collateral property (market value, liquidity, realization costs), which provides greater model granularity and accuracy.

Sources of PD / LGD / EAD

PD is determined using historical data. When historical data for a particular loan portfolio is insufficient, PD is estimated using external sources, including Credit Information Bureau (KIB) data and the EBA Risk Dashboard, adjusted for forward-looking macroeconomic information. For Stage 3 assets, PD is set at 100%.

LGD estimation considers historical and statistical data, as well as collateral quality, value, and other factors affecting cash flows from collateral realization. Where historical data is insufficient, external sources such as the EBA Risk Dashboard are also used.

EAD is modeled each time the ECL is calculated, based on the payment schedule in the loan agreement.

Stages and Significant Increase in Credit Risk (SICR)

The Group and the Company apply the expected credit loss (ECL) model to financial instruments within the scope of the impairment model as follows:

Stage 1 - Financial instruments with no significant increase in credit risk. These are instruments for which credit risk has not increased significantly since initial recognition or for which credit risk is considered low (e.g., an external credit rating of BBB- or better is considered low credit risk). ECL is calculated as the 12-month expected credit loss, i.e., the expected losses over the next 12 months.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Stage 2 - Financial instruments with a significant increase in credit risk (SICR). These instruments have not yet incurred a credit loss but have experienced a significant increase in credit risk since initial recognition. ECL is calculated as the lifetime expected credit loss, i.e., expected losses over the entire remaining contractual life of the instrument.
Stage 3 - Credit-impaired financial instruments. These are instruments that are credit-impaired. ECL is calculated as the lifetime expected credit loss, similar to Stage 2, but the instrument is considered impaired.

At each reporting date, the Group and the Company assess whether the credit risk of a financial instrument has increased significantly since its initial recognition by analyzing changes in the probability of default over the instrument's expected life.

The Group has established a uniform policy for identifying significant increases in credit risk (SICR), while applying different approaches in the Group's subsidiaries according to their operational specifics and the risk assessment tools used.

Loans are classified in Stage 2 if, based on quantitative and qualitative risk indicators, including the evaluation of payment discipline, a significant increase in credit risk is identified, whereas payment delinquencies of 31 to 90 days are used in the Group as a general backstop indicator to ensure consistent classification and compliance with IFRS 9 requirements.

One of the main indicators of a significant increase in credit risk is changes in the probability of default (PD), which are determined by comparing the PD at the reporting date with the PD at the time of initial recognition of the asset.

Additional indicators that may signal a significant increase include:

deterioration of the internal credit risk rating; or
financial assets classified as financial assets on the watchlist; or
modified financial assets (loan agreement terms have been revised and concessions granted due to the client's financial difficulties).

If the credit risk later decreases to the extent that the signs of a significant increase disappear, the instrument is moved back to Stage 1, applying the Bank's prescribed cure period.

Definition of Non-Performance of Obligations

Financial instruments for which obligations are not fulfilled are included in Stage 3. For accounting purposes, the bank applies the definition of non-performance of obligations as set out in the capital requirement regulation (Regulation (EU) No. 575/2013, the European Parliament and Council Regulation on prudential requirements for credit institutions and investment firms, amending Regulation (EU) No. 648/2012, Article 178), namely, financial assets for which payment is overdue for more than 90 days. It is assumed that the credit value of all financial assets in Stage 3 has decreased. It is considered unlikely that the borrower will be able to fully meet the credit obligations without collateral, regardless of the overdue amounts and the number of days overdue. The company and the group make this conclusion based on a regular or ad-hoc analysis of the borrower.

ECL for Receivables from Transaction Partners

Receivables from transaction partners are not discounted because discounting has no significant

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

impact on the financial statements.

The repayment of transaction partner's credit obligations in case of default depends on the creditworthiness of the transaction partners, which is characterized by the assigned credit rating. Therefore:

LGD is determined based on the recovery rate published by the credit rating agency Moody's for the amount of credit obligations to be recovered in the event of default, according to the assigned credit rating and the remaining term of the receivables;
PD is determined based on the average default probabilities published by the credit rating agency Moody's according to the assigned credit rating and the remaining term of the receivables, with the data updated annually by Moody's.

If a transaction partner does not have a credit rating from the Moody's credit rating agency, the ratings assigned by Fitch or Standard and Poor's are used for that partner. If two external ratings are available and they differ, the lower one is used. If more than two ratings are available, the two lowest ratings are used, and if they differ, the higher of the two is used. If a transaction partner does not have an individual rating but belongs to a group of related parties, the applicable rating is determined based on the parent company's rating (if any) and the transaction partner's country rating (if any), choosing the lowest rating.

Debtors and Technical Overdrafts ECL

When determining the ECL for debtor receivables and technical overdrafts, they are divided into two main groups based on the type of debtor: individuals and legal entities. ECL is calculated using the PD * EAD * LGD approach. Discounting is not applied because it has no significant impact. Given that the bank lacks sufficient historical data to calculate PD and LGD, they are determined based on external data sources such as the EBA Risk Dashboard.

Amortized Cost and Effective Interest Rate Method

Amortized cost ("AmC") is the amount at which a financial instrument is initially recognized, minus any principal repayments, plus accrued interest, and for financial assets, minus any expected credit loss provisions. Accrued interest includes the amortization of transaction costs that were deferred at initial recognition and any premiums or discounts to be amortized over the life of the instrument using the effective interest rate method.

The effective interest rate method is a method of allocating interest income or interest expenses over the relevant period in such a way as to achieve a constant periodic interest rate (the effective interest rate) on the carrying amount of the financial instrument.

For assets acquired or originated with credit losses ("POCI"), the effective interest rate is adjusted for credit risk, i.e., it is calculated based on the expected cash flows at initial recognition, rather than contractual payments.

Financial assets are written off either fully or partially when all practical recovery measures have been exhausted and it is concluded that there is no reasonable expectation of recovery. Write-off is a derecognition event.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Financial Liabilities

All financial liabilities are recognized at fair value, and in the case of borrowings, less directly attributable transaction costs. After initial recognition, interest-bearing financial liabilities are recognized at amortized cost using the effective interest rate (EIR) method. Gains or losses are recognized in profit or loss when the liability is derecognized, as well as using the effective interest rate method. The amortized cost is calculated considering any acquisition discounts or premiums, as well as any fees or costs that are an integral part of the EIR. The amortization of the EIR is included in profit or loss as net interest income. Liabilities measured at amortized cost include payables to creditors.

Derecognition

The recognition of a financial asset is derecognized when the contractual rights to receive cash flows from the financial asset have expired or when the bank has transferred all the associated risks and rewards of ownership. Any compensation or liabilities that arise or are retained as a result of the transfer are recognized as a separate asset or liability.

The bank derecognizes a financial liability when it is extinguished, that is, when the liability is settled, cancelled, or has expired.

Set off

Financial assets and liabilities are set off, and the net amount is presented in the financial position statement when there is a legal right to do so, and the bank intends to settle on a net basis or realize the asset and settle the liability simultaneously.

13. Fair Value of Financial Assets and Liabilities

The fair value of assets and liabilities is the price at which an asset could be sold or a liability settled in a normal transaction between market participants at the valuation date.

Fair value is the price that would be received for the sale of an asset or paid for the transfer of a liability in a normal transaction between market participants at the valuation date in the principal market, or in the absence of such a market, the most advantageous market to which the Group has access at that date. The fair value of liabilities reflects the risk of non-performance of the obligation.

The fair value of financial assets and liabilities is classified into the following fair value levels:

Level 1: Unadjusted quoted prices in active markets for identical assets;
Level 2: Adjusted quoted prices or valuation models using observable inputs from active markets;
Level 3: Valuation models where significant inputs are not available from markets and are based on internal assumptions.

The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, i.e., the fair value of the consideration paid or received, unless the fair value of the instrument can be proven by comparing it with other observable current market transactions for the same instrument (i.e., without modification or repackaging) or based on a valuation model whose variables include only observable market data.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

When the transaction price provides the best evidence of the fair value of a financial instrument at initial recognition, the financial instrument is initially measured at the transaction price, and any difference between this price and the value obtained from the valuation model at initial recognition is recognized in comprehensive income depending on the individual facts and circumstances of the transaction, but no later than when the valuation fully relies on observable market data or the transaction is closed.

Several accounting principles and disclosure requirements for the Group and the Company require the determination of the fair value of financial assets and liabilities. If applicable, additional information about the assumptions used to determine fair value is disclosed in the relevant appendices.

If management believes that the fair value of a financial asset or liability significantly differs from its carrying amount, such fair values are disclosed separately. See also Note 32.

14. Pawn Loans

Pawn loans are collateralized loans without recourse. If the client does not redeem the pledged asset by repaying the secured loan by the end of the contract term, the Group has the right to dispose of the goods to cover the outstanding loan balance. Pawn loans are recognized when funds are disbursed to borrowers, and their recognition is discontinued when income-bearing loans are repaid or non-income-bearing loans' collateral is sold. Given that pawn loans do not meet the SPPI criteria, they are initially recognized and then measured at fair value.

The pawn loan portfolio is divided into two categories: income-bearing and non-income-bearing loan portfolios. The income-bearing loan portfolio includes loans where the repayment term has not yet occurred or loans that have already been extended. The non-income-bearing loan portfolio includes loans that have not been repaid by the write-off date, and repayment depends on the realization of collateral.

15. Other Debtors

Receivables from customers and contractors are recorded and reflected in the balance sheet according to the terms of the contracts, less any provisions for expected credit losses. Provisions for expected credit losses (ECL) on receivables are recognized based on a forward-looking assessment in accordance with IFRS 9, taking into account historical loss rates, current conditions, and reasonable forecasts of future economic conditions. Receivables are written off when their recoverability is considered impossible.

Cash and Cash Equivalents

Cash and cash equivalents are cash in hand and highly liquid assets with an original maturity of less than three months, which the Group and Company use for short-term debt settlement. For the purpose of the cash flow statement, cash and cash equivalents consist of cash on hand, balances in current accounts, and deposits with a maturity of up to 90 days.

16. Accrued Liabilities

The "Accrued Liabilities" item represents the clearly identifiable liability amounts to suppliers of goods and service providers for goods or services received during the reporting period, for which no corresponding payment document has been received by the balance sheet date due to delivery, purchase, contract conditions, or other reasons. This item also includes accrued liabilities for

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

employees' unused vacation days and variable compensation.

17. Employee Benefits

Short-term employee benefits, including salaries, social insurance contributions, bonuses, and vacation benefits, are recognized as expenses on an accrual basis when the service is provided. Accruals for employees' vacation pay are estimated based on the unused vacation days up to the balance sheet date.

Short-term employee benefits are recorded as expenses when the relevant service is rendered. Liabilities are recognized for the amounts expected to be paid if the Group has a current legal or constructive obligation to pay this amount as a result of the employee's past work, and if this obligation can be reliably estimated.

The Group and Company make mandatory state social insurance contributions for state pension insurance under the Latvian legislation to the state-funded pension scheme. The state-funded pension scheme is a defined contribution pension plan, under which the Group and Company are required to make payments of a specified amount under the law. The Group and Company do not have additional legal or constructive obligations to make further payments if the state-funded pension scheme is unable to meet its obligations to employees. The mandatory social insurance contributions are recognized as expenses on an accrual basis and are included in employee costs.

18. Share-Based Payments

Expenses are recognized as part of employee compensation along with the corresponding increase in equity (share-based payment reserves) over the period in which the service is rendered and the performance conditions are met (vesting period). Cumulative costs recognized at the end of each reporting period for share-based payments settled using equity instruments reflect the past service rendered during the vesting period and the Group's and Company's best estimate of the number of equity instruments that will vest. Costs or income in the comprehensive income statement for the respective period reflect the changes in cumulative costs recognized at the beginning and end of the period.

No expense is recognized for share-based payments that do not vest, as the relevant off-market and/or performance conditions were not met during the vesting period. If share-based payments include market or non-vesting conditions, transactions are accounted for as vested, regardless of whether the non-vesting conditions have been met, as long as all other conditions and/or performance conditions have been satisfied.

If the terms of share-based payments settled using equity instruments are modified, the minimum recognized expense is the fair value of the unmodified compensation at the grant date, provided the initial vesting conditions have been met. Any additional costs determined on the modification date are recognized for any changes that increase the total fair value of the share-based payment or otherwise provide the employee with a benefit. If the Company or employee cancels the share-based payment, any remaining fair value of the share-based payment is immediately recognized in the comprehensive income statement.

Share-Based Payment Agreements For employee share-based payment agreements, the fair value of the equity-settled share-based payment at the grant date is generally recognized as an expense, increasing equity over the vesting period. The amount recognized as an expense is adjusted to reflect

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

the number of awards for which it is expected that the related service and non-market performance conditions will be met, so that the final recognized amount is based on the number of awards that meet the relevant service and non-market performance conditions at the vesting date. For share-based payments with conditions not related to the granting of rights, the fair value of the share-based payment at the grant date is assessed to reflect these conditions, and no adjustment is made to account for differences between expected and actual outcomes.

19. Corporate Income Tax

The expense for corporate income tax for the reporting period is recognized in the financial statements based on management's calculations in accordance with the tax legislation of the Republic of Latvia. According to the Corporate Income Tax Law of the Republic of Latvia, adopted on July 28, 2017, and effective from January 1, 2018, a 20% rate is applied to the distributable profit.

Corporate income tax is calculated on the distributed profit (20/80 of the amount payable to shareholders). Corporate income tax will be recognized when the decision on profit distribution is made by the subsidiaries and the Company's shareholders. The subsidiaries and the Company also calculate and pay tax on the conditionally distributed profit (20/80 of the calculated tax base), which includes taxable items under the Corporate Income Tax Law, such as non-business expenses, doubtful receivables, and loans to related parties, if they meet the criteria set out in the Corporate Income Tax Law, as well as other expenses exceeding the limits for deduction set by the law. Corporate income tax on conditionally distributed profit is recognized in the comprehensive income statement for the period in which such expenses arise.

20. Taxes

The Group's taxes for the period consist of the calculated corporate income tax for the reporting period and deferred taxes. Current corporate income tax liabilities for the reporting period and prior periods are measured based on the amount expected to be paid to the tax authorities, according to the tax rates and laws in effect at the reporting date or those enacted thereafter. Corporate income tax is calculated on distributed profit or expenses, which are considered to be conditionally distributed profit (20/80 of the net amount payable to shareholders).

In 2024, amendments to the Corporate Income Tax Law were adopted for non-bank credit institutions, which specify that starting from 2024, these institutions are required to pay an additional 20% tax on the previous year's after-tax profit, which is calculated and paid after the submission of the annual report. Therefore, in addition to the tax calculated on the paid dividends, from 2024, expenses for the corporate income tax surcharge will also be recognized, calculated as 20% of the after-tax profit for the reporting year.

The corporate income tax on the distributed profit is recognized when the shareholder makes a decision on the profit distribution, while the tax on conditionally distributed profit and the tax surcharge is recognized in the profit or loss statement for the period in which the tax is calculated. Deferred corporate income tax is recognized based on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases. Deferred tax liabilities are generally recognized for all temporary differences. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets and liabilities are not recognized for temporary differences related to intangible assets or the initial recognition of assets or liabilities (except for business combinations) that

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

do not affect either taxable profit or accounting profit at the time of the transaction.

Deferred income tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the Group will have sufficient future taxable profits to realize these assets, until the estimated amount by which future taxable profits will be reduced. Deferred tax liabilities and assets are measured using the tax rates that are expected to apply when the temporary differences are expected to be settled, based on tax rates (and tax laws) that have been or are substantially enacted by the end of the reporting period. Deferred tax assets and liabilities reflect the tax consequences that the Group expects to incur at the end of the reporting period in order to settle its assets or liabilities.

21. Earnings per Share

Basic earnings per share are determined by dividing:

the profit or loss attributable to the Company's shareholders, excluding any equity transaction costs, unless they relate to ordinary shares;
by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for any ordinary share bonus elements and repurchased treasury shares issued during the period.

Diluted Earnings per Share

Diluted earnings per share adjust the result obtained by calculating basic earnings per share to take into account:

the after-tax impact of interest and other financial costs related to potential additional ordinary shares, and
the weighted average number of additional ordinary shares that would arise if all potential ordinary shares were converted.

Earnings per Share

Earnings per share are determined by dividing the net profit or loss attributable to the shareholders by the weighted average number of shares outstanding during the reporting year. Diluted earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares in circulation during the year, plus the weighted average number of ordinary shares that would be issued by converting all dilutive potential ordinary shares into ordinary shares.

22. Dividend Payment

Dividends payable to shareholders are recognized as liabilities in the financial statements in the period when the shareholders approve the dividend payment.

23. Segment Information

The Group's and Company's management reviews the results of the Group and has identified two operational segments:

(i) asset management, which includes the assets of the newly acquired subsidiary IPAS VAIRO, and (ii) bank development. See Note 38.

Management primarily uses operating profit before customer acquisition costs to assess the performance of each segment. Monthly, management receives information on segment revenue, net

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

profit, and assets.

In 2025, the INDEXO Group acquired AS DelfinGroup, and its results were included in the Group's consolidated financial statements as of December 31, 2025. According to this approach, DelfinGroup's balance sheet figures are included in the Group's segment information. However, as the acquisition took place at the end of the year, DelfinGroup's operating results are not included in the profit or loss calculation for the reporting year.

Thus, the segment information in this annual report reflects only the core business revenues and expenses that the INDEXO Group generated prior to the acquisition of DelfinGroup. The Group's management believes that this separation of figures provides more complete and transparent information about the Group's core operations and its actual financial position at the end of the period.

Contingent Liabilities and Assets

In this financial report, contingent liabilities are not recognized. They are only recognized as liabilities when the likelihood of the outflow of resources becomes sufficiently probable. Contingent assets are not recognized in this financial report but are disclosed only when the likelihood of economic benefits arising from the transaction reaching the Company and the Group is sufficiently probable.

2.3. Risk Management

The Group and the Company organize their operations in the area of risk management in accordance with the regulatory frameworks governing the operations of the Group and the Company, as well as by following the strategies and other governing documents of the Group and the Company. The Bank is responsible for overseeing risk management at the Group level, establishing and ensuring the overall risk management framework for the Group, setting the principles and rules for the implementation of risk management strategies, risk assessment, reporting, analysis, management, and control, and overseeing the implementation of these rules and the local risk management functions within the Group's entities.

The Group and the Company identify all significant risks inherent to their activities and develop, document, and implement appropriate policies for managing these risks, including measurement, assessment, control, mitigation measures, and risk reporting and information provision.

The objectives of risk management for the Group and the Company are to:

Establish and maintain a system for identifying and managing risks within the Group and the Company that minimizes the negative impact of risks on operations and performance as much as possible;
Identify and define the acceptable level of risks that will help the Group and the Company achieve their strategic goals;
Set levels of responsibility for the Group and Company's risk management system and its functions;
Define the structure and methods of the risk management system;
Ensure compliance with the regulatory requirements governing the Group and the Company's operations.

The risk management system is integrated into the Group and the Company's internal control system,

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

providing independent risk control and operational compliance functions that are separate from the business functions.

1. Risk Management Structure

The Boards of the Group's companies are responsible for establishing and ensuring the effective functioning of the risk management system, as well as for approving the relevant risk management policies and strategies.

The Management Boards of the Group's companies are responsible for implementing the risk management strategies and policies approved by the Board.

The Group's Risk Director is the Risk Director of the Bank. The Group's Risk Director:

Leads the Bank's risk control function;
Ensures the monitoring and continuous improvement of the risk management system within the Group's companies;
Regularly provides comprehensive and clear information about the Group's and the Company's overall risk profile, all significant operational risks, and their compliance with the risk management strategy to the Bank's Board, Management, and other stakeholders;
Consults and provides support to the Group and Company Boards in the development of business strategies and in decision-making related to risks associated with the Group and Company's operations.

The Group's companies identify significant risks inherent to their operations, including in the context of capital requirements, and develop risk management policies and procedures. They also ensure compliance with the risk management policies and procedures, including controls for the observance of established limits and restrictions, as well as providing regular reports and information to the Boards and Management of the Group's companies. This allows the Risk Director, the Board, and Management to constantly assess the risks that affect the ability of the Group and the Group's companies to achieve their goals, and to take corrective actions as necessary.

The Bank oversees operational compliance risk at the Group level, setting the basic principles for identifying, assessing, and managing compliance risks within the Group and the Company. The Company's compliance function is responsible for managing compliance risks related to the Company's operations.

The internal audit function provides independent and objective assurance regarding the Group's and the Company's adherence to risk management strategies, policies, and procedures, reporting the results of audits to the Boards of the Group's companies, as well as assessing the effectiveness of the risk management system.

The heads of the Group and the Company's departments and other employees are aware of their duties and responsibilities in the day-to-day management of risks. Within their areas of competence, they regularly report to the Risk Management function on the observance of established limits and restrictions, and participate in the identification, impact assessment, and materiality determination of risks within their areas of competence.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

2. Internal Control System

Risk management within the Group and the Company is based on a three-line-of-defense model and is organized to prevent or escalate any potential conflicts of interest.

First line of defense - Primary risk management, implemented by all business and support units and their employees, who daily identify and manage risks arising from their operations. In the first line, risk identification and the implementation of risk mitigation measures are carried out.

Second line of defense - Independent identification, assessment, analysis, and monitoring of risks, performed by the risk management, compliance, anti-money laundering (AML), counter-terrorism financing (CTF), sanctions compliance, fraud prevention, transaction monitoring, and data protection functions.

Third line of defense - Independent assurance on the effectiveness of the risk management and internal control systems, provided by the internal audit function.

The Group has implemented a process for preventing conflicts of interest, as well as a due diligence procedure for business partners. The Board oversees the monitoring of anti-money laundering, counter-terrorism financing, and sanctions compliance, with a designated responsible board member.

3. Risk Culture

The Group and the Company promote a risk culture that encourages the right behavior, based on the Group's and the Company's values, best industry practices, and ethical standards.

The Group and the Company ensure the creation of a comprehensive risk culture that facilitates the effective implementation of the risk management process, taking into account the development strategy and risk strategy of the Group and the Company.

4. Risk Measurement and Mitigation

At the end of the reporting period, the Group and the Company comply with all regulatory requirements.

Risk assessment is carried out by the Group and the Company based on developed methodologies, and the Bank assesses the capital adequacy required to cover the risks inherent to the Bank's and the Group's operations, based on the European Parliament and Council Regulation (EU) No. 575/2013 (June 26, 2013) on prudential requirements for credit institutions, as amended by Regulation (EU) No. 648/2012, and the standardized and basic indicator approaches described in the Regulation, as well as simplified methods described in the Latvian Bank's rules No. 321, "Regulations on the Capital Adequacy Assessment Process for Credit Institutions," dated September 30, 2024.

To assess the risks inherent in or expected for the operations of the Group and its companies, the

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Group companies also perform stress testing.

To mitigate risks inherent to the Group and its companies, the Group companies develop and implement a limit control system that covers approved limits and defines the risk appetite limits specified in the business strategy. In cases where a risk limit violation is identified, the responsible person reports to the Group's Risk Director and the Management Board of the relevant Group company. In case of a regulatory limit breach, the Group company immediately informs the Bank of Latvia, and further actions are taken in accordance with the Bank of Latvia's regulatory requirements. The Supervisory Board of the Group company is also informed about the breach, and an action plan for remedying the breach is prepared and approved.

5. Risk Materiality Assessment Process

Significant risks are those risks inherent to the Group's and the Company's operations that could substantially negatively affect the Group's and the Company's reputation, ability to provide services, achieve strategic objectives, and/or result in substantial financial losses.

According to the nature of the Group's operations, significant risks are considered to include:

6. Credit Risk

The Group and the Company's goal in credit risk management is to maintain an optimal balance between credit risk, the expected return on assets, and liquidity. The credit risk management framework of the Group and the Company is based on an adequate assessment of the creditworthiness of borrowers and business partners, as well as adherence to established limits and restrictions.

The Group and the Company only invest funds in financial assets whose risks can be identified.

The Group and the Company mainly assume credit risk in Latvia. The Group and the Company issue only those loans where the risks of the borrower can be identified, assessed, and managed.

At the time of this report's preparation, the Group's operations that entail credit risk include the placement of funds in banks, investments in securities, issuing consumer and mortgage loans, and lombard loans. The Company's credit risk operations at the time of this report include the placement of funds in banks and loans issued to associated companies.

The Group and the Company assess credit risk both at the time of loan issuance and regularly throughout the loan's term, at least quarterly.

Each potential borrower undergoes an automated creditworthiness check, and a loan is not issued if criteria indicating an unacceptable credit risk are identified.

Loan issuance is executed through an automated process, with manual decisions being made only in specific cases. Loan agreement amendments are approved according to the internal regulatory documents. The evaluation of the loan application considers the client's creditworthiness, using external credit ratings as well as internal risk levels. Additionally, indicators such as DTI (Debt-to-

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Income) and DSTI (Debt-Service-to-Income) ratios are analyzed. Given the characteristics of unsecured loan segments and the elevated credit risk concentration, enhanced control procedures are implemented both during the loan issuance process and in the timely identification of underperforming clients, along with the creation of provisions. Multiple client identification and verification methods are used for risk assessment, including identity checks, income analysis, and evaluation of existing obligations, cross-referencing the application data with external sources. Applications are analyzed using an automated credit risk underwriting process and centralized credit risk models based on client registration, application data, identification, fraud checks, and credit information.

In the unsecured loan segment, regular debt assignment practices are employed, while for secured loans, collateral valuation is carried out by qualified appraisers. The realization of collateral for lombard loans is organized in branches or through digital channels.

7. Concentration Risk

The Group and the Company integrate the concentration risk management system within the internal control framework and identify risk drivers that can create concentration risks in various operational areas.

Concentration risk is closely related to other risks, and its management system forms part of the various risk management policies and associated procedures of the Group and the Company.

Concentration risk is mitigated by setting various concentration limits, including limits for large risk transactions.

The Bank ensures compliance with large risk transaction limits both at the Bank's individual level and at the Group's consolidated level, as outlined in the European Parliament and Council Regulation (EU) No. 575/2013 (June 26, 2013) on prudential requirements for credit institutions, as amended by Regulation (EU) No. 648/2012, which classifies as large-risk transactions those whose value exceeds 10% of the Bank's and/or the Group's Tier 1 capital.

During the financial reporting period, both at the Bank's individual level and at the Group's consolidated level, it was ensured that the exposure to any single client or a group of connected clients did not exceed 25% of the Group's and the Company's Tier 1 capital. If a client is a credit institution or an investment broker company, or a group of connected clients containing one or more credit institutions or investment broker companies, and the client's country of registration is an EU member state or an equivalent jurisdiction (as determined by Commission Implementing Decision (EU) 2021/1753 of October 1, 2021, concerning the equivalence of regulatory requirements for third countries), the total risk exposure to such a client shall not exceed 100% of the Group's and the Company's Tier 1 capital. If the client is registered in a non-compliant jurisdiction, the risk exposure shall not exceed 25% of the Group's and the Company's Tier 1 capital.

Maximum Credit Risk

Dec 2025	Dec 2024	Dec 2025	Dec 2024
Group	Group	Company	Company
EUR'000	EUR'000	EUR'000	EUR'000

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Demand deposits at Latvijas Banka	19 735	444	-	-
Night deposits at Latvijas Banka	-	34 931	-	-
Demand claims on credit institutions	3 807	397	17	18
Term claims on credit institutions	1 892	876	1 916	1 451
Loan to SIA Provendi Asset Management AIFP	68	79	68	79
Loan to IDX1R AS (from May 2024 – INDEXO Banka AS)	-	-	-	700
Term claims on credit institutions	235 982	1 070	-	-
Financial assets measured at fair value through profit or loss	8 026	-	-	-
Receivables	2 658	461	798	452
Total	272 168	38 258	2 799	2 700

8. Excess Leverage Risk

Excess leverage risk is the risk arising from the vulnerability of the Group's companies caused by actual or potential leverage in their funding structure, which could require unforeseen corrective measures regarding the Group's companies' strategy, including asset sales triggered by financial difficulties that may result in losses or adjustments in the value of remaining assets. Excess leverage risk may also arise from a decrease in the Group's and/or Group companies' Tier 1 capital due to losses or excessive accumulation of risk transactions against Tier 1 capital. The leverage risk is characterized by the leverage ratio and the mismatch between assets and liabilities.

The leverage ratio is calculated at the reference date for reporting, both at the Bank's individual level and at the Group's consolidated level, by dividing the Tier 1 capital measure by the total assets (excluding those excluded), the measure of the sum of off-balance-sheet risk transactions, and expressing it as a percentage.

9. Market Risk

Market risk is the potential for the management service recipient of the Company to incur losses due to the revaluation of financial instruments in its investment portfolio, which is related to changes in market values due to factors such as currency exchange rates, interest rates, equity prices, or the issuer's creditworthiness. The objective of market risk management is to reduce the market risk inherent in pension plans by investing in a variety of different types of investments and across various regions, thus mitigating the negative impact of financial instrument price declines.

10. Foreign Exchange Risk

Foreign exchange risk is the potential to incur losses from the revaluation of financial instruments denominated in foreign currencies due to fluctuations in exchange rates.

During the reporting period, the Group and the Company did not have and, as of the end of the reporting period, did not hold any significant foreign currency positions that could materially affect the Group's and Company's assets or liabilities.

The Company manages both direct foreign exchange risk, which arises from investments in financial

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

instruments denominated in foreign currencies, and indirect foreign exchange risk, which arises from investments in funds denominated in euros that further invest these funds in financial instruments denominated in foreign currencies. Indirect foreign exchange risk is managed by setting the investment asset allocation goal for debt securities portfolios linked to euro-denominated investment category bond indices in investment funds.

11. Interest Rate Risk

The objective of interest rate risk management is to ensure an appropriate balance between the interest rate risk assumed by the Group's companies and their yield to minimize the potential negative impact of interest rate risk on the financial condition and operations of the Group and/or Group companies.

Interest income is primarily generated by promoting the expansion of the credit portfolio, mainly by financing Latvian residents, and making every effort to prevent an increase in the NPL (Non-Performing Loan) ratio above the level specified in the risk appetite.

To assess interest rate risk, the Bank, as the responsible entity for risk management at the Group level, regularly evaluates and plans the repricing term structure both at the Bank's individual level and at the Group's consolidated level, calculates the reduction in net interest income and economic value due to adverse interest rate changes, and determines the amount of capital required to hedge the interest rate risk, both at the Bank's individual level and at the Group's consolidated level.

Interest rate risk assessment is based on the following principles:

The impact of interest rate changes on financial results and economic value is evaluated at both the Bank's individual and Group's consolidated levels.
The interest rate risk level is determined.
All significant interest rate risks related to assets, liabilities, and off-balance-sheet items are evaluated.

The sources of interest rate risk are:

Basis risk - the risk of incurring losses when interest rates change on instruments sensitive to interest rate changes with identical repricing or maturity dates but different base rates.
Gap risk - the risk of incurring losses due to an imbalance in the term structure of instruments sensitive to interest rate changes, covering interest rate term structure changes that occur consistently across the yield curve (parallel risk) or differently across time intervals (non-parallel risk).
Option risk - the risk of incurring losses when instruments sensitive to interest rate changes directly (e.g., options contracts) or indirectly (e.g., loans with early repayment options, demand deposits, term deposits with early withdrawal options, fixed-rate loans) have options that change the size and terms of cash flows.

The degree to which the Group is exposed to interest rate risk is reflected in the term structure of interest rate-sensitive assets, liabilities, and off-balance-sheet claims and liabilities, prepared by considering the remaining repayment or interest rate revision terms of financial instruments sensitive to interest rate changes, selecting the shortest term.

12. Liquidity Risk

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The objective of liquidity risk management is to ensure the necessary level of liquidity, achieving an appropriate, optimal balance between return and risk according to the established risk management principles.

The Group and the Company implement a liquidity management strategy, considering the maturity and volatility of the raised funds, the liquidity level of assets, as well as the balance between the maturity of assets and liabilities, changes in the Group's and the Company's operations, and external circumstances affecting it.

The Group and the Company assume liquidity risk within the set limits and restrictions.

To manage liquidity risk, the Group and the Company apply a combination of asset and liability management methods:

Asset management related to accumulating liquidity reserves, investing excess cash in line with management decisions and cash flow forecasts.
Liability management based on the ability to raise financing if necessary.

To ensure liquidity, the Bank, as the entity responsible for overseeing risk management at the Group level, as well as the Company, undertakes the following activities:

Regularly assesses and plans the term structure of assets and liabilities.
Ensures that liquid assets are available in sufficient amounts for fulfilling obligations.
Controls the funding structure.
Performs intra-day liquidity risk monitoring.
Regularly assesses the liquidity risk level, including conducting stress tests.
Develops internal regulations for liquidity risk management, enabling timely identification, evaluation, analysis, and monitoring of liquidity risk.

The Bank has introduced an early warning system that allows for the early identification of potential difficulties and the operational assessment of the need to implement liquidity risk mitigating measures.

Please refer to Note 32 for the liquidity analysis of the Group's and the Company's assets, liabilities, and off-balance-sheet obligations, which was conducted considering when these can be recovered, repaid, or used as collateral for obtaining liquid assets.

13. Operational Risk

Operational risk is the risk of incurring losses due to inadequate or failed internal processes, human actions, system performance, or external events. This includes legal and documentation-related risks, as well as the risk of losses arising from trading, settlement, and valuation procedures carried out on behalf of the management service recipient. Information and communication technology (ICT) risks are assessed within the framework of operational risk.

The objective of operational risk management is to ensure effective and successful operations while minimizing the likelihood of unexpected losses. The impact of operational risk is always considered when making business decisions.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The operational risk management system in the Group and the Company is established on the assumption that certain operational risk is inherent to all Group and Company activities, processes, and systems.

All Group and Company employees are responsible for the daily identification of operational risk. The key elements of operational risk management include:

Operational risk identification;
Operational risk self-assessment;
Operational risk monitoring;
Operational risk control and mitigation;
Operational risk stress testing.

To promptly detect operational risk events and implement appropriate mitigation measures, the Group and the Company have established a database for recording operational risk events. Within the Group and the Company, a procedure is in place requiring any employee, regardless of position, to immediately register any operational risk event that has caused or could potentially cause losses (regardless of their form). All operational risk events registered in the database are reviewed, and if necessary, risk mitigation measures are developed and implemented to improve the internal control system.

The Group's and Company's information and communication technologies are vital for maintaining sustainable business operations. To mitigate risks associated with ICT operations, the Group and the Company ensure timely remediation of identified control deficiencies, implement consistent third-party risk management, and develop and continuously improve technological controls.

The Group and the Company establish and implement the procedures, scope, and quality of outsourced services required for their operations to manage and minimize risks associated with outsourcing and its potential impact on business continuity. Before delegating any function, the Group and the Company evaluate the risks associated with outsourcing to ensure it can continue providing stable and sustainable operations.

The objective of legal risk management is to ensure compliance with the laws of the Republic of Latvia, European Union legislation, and other applicable compliance laws, regulations, and standards in the legal support of the Group's and the Company's operations.

14. Sustainability Risk

Sustainability risk is the risk that an event or circumstances in the environmental, social, or corporate governance (Environmental, Social, Governance - ESG) areas could negatively impact the value of investments managed by the Company. The Company's risk appetite in sustainability, or the amount of sustainability risk the Company is willing to take on to achieve its investment strategic goals, is considered medium. The Company balances the potential environmental, social, and governance risks associated with investments against the potential long-term benefits in line with its investment strategy.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The Company strives to select investments that at least meet the medium ESG rating level.

15. Model Risk

The objective of the model risk strategy is to ensure that the developed models are fit for their intended purpose, align with the specific operations and complexity of the Group's companies, are sufficiently accurate and reliable, and are properly documented and managed.

The Group's companies take all possible measures to ensure that the internal models used are well understood, including their methodology, input data, assumptions, limitations, and results, and that they are validated, reviewed, monitored, and adjusted as needed.

16. Reputation Risk

The Group's companies refrain from engaging in activities that may result in or be associated with an increased reputation risk, regardless of financial benefits or compensation. Reputation is fundamentally important and is carefully analyzed when making decisions.

Any media coverage of the Group's companies is monitored to build a positive corporate image, continuously tracking media mentions and taking timely actions to prevent negative media escalation and public backlash.

Valid customer complaints are addressed at the management level and resolved promptly and appropriately. Special attention is given to managing information security risks, reducing significant information security incidents such as large-scale customer data breaches or violations of sensitive information confidentiality.

17. Compliance risk

Compliance risk is the risk that the Group and the Company will incur losses or be subject to legal obligations or sanctions, or that their reputation will deteriorate, if the Group and the Company fail to comply with or breach compliance laws, regulations and standards.

The Group and the Company operate in a manner that ensures compliance with applicable laws and regulations.

Compliance management within the Group and the Company is ensured by defining clear roles and responsibilities and by implementing external regulatory requirements through internal policies and procedures that are transparent and understandable to employees.

The Group and the Company take all necessary measures to comply with applicable laws and regulations, including in the areas of conflict of interest management, personal data protection, information security, etc.

18. AML/CFT and Sanctions Risk

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

An effective risk management system in the areas of Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and sanctions is crucial to ensure that these risks are identified, continuously monitored, and managed with appropriate mitigation measures.

The Group and its subsidiaries, according to their type and scale of operations, conduct and document an assessment of AML, CFT, and sanctions risks to identify, assess, understand, and manage the risks associated with their activities and clients. The goal of this risk assessment is to help the Group understand the AML, CFT, and sanctions risks it faces and to evaluate the necessary actions and resources required to implement mitigation measures. Based on this assessment, an internal control system (ICS) for AML, CFT, and sanctions is established, along with the development and documentation of relevant policies, procedures, and instructions.

The subsidiaries within the Group have established and maintain an internal control system and policy that ensures compliance with the regulatory requirements of Latvia and the European Union, as well as outlining the duties and responsibilities of employees in this area across all Group companies, in line with their business activities.

AML, CFT, and sanctions risks are managed based on the risk assessment, which considers the specific risks of each subsidiary within the Group, national and EU risk evaluations, as well as the characteristics of clients, investors, business partners, products, services, and supply channels. Based on this, an internal control system and associated internal regulations are developed and regularly reviewed (at least once every 18 months or upon significant changes).

The Group applies a risk-based approach to the assessment of clients, investors, and business partners, ensuring client due diligence and enhanced due diligence in high-risk cases, as well as determining situations where business relationships are not initiated or are terminated. The Group ensures the identification of suspicious transactions, refrains from conducting them, and reports them promptly to the Financial Intelligence Unit and other competent authorities, in accordance with the prohibition to inform clients about such reports.

To ensure the effective operation of the system, the Board oversees the management of risks and receives regular reports from the responsible employee. The Board ensures compliance with regulatory requirements, allocates resources, and ensures the proper qualification of personnel. Additionally, a responsible member of the Board and a responsible employee (head of the AML/CFT function) are appointed to organize and monitor the implementation of the AML/CFT internal control system.

The Group regularly conducts employee training in the fields of AML/CFT and sanctions, and ensures the technological solutions for client due diligence, transaction monitoring, and sanctions screening. Documents and information regarding clients and AML/CFT measures are stored and processed in accordance with regulatory requirements.

19. Business Model Risk

The Group's companies maintain a reasonably diversified, viable, and sustainable business model, offering a wide range of financial services to clients with varying needs. During the establishment and

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

development phase of INDEXO Bank, the business model risk was elevated until the Bank could operate with operational profit.

The Group's companies strategically build their service offering based on next-generation financial technologies.

To mitigate business model risks, the Group's companies continuously monitor operational performance against set plans and, if necessary, take appropriate actions.

Commission and fee income

	Jan – Dec	Jan – Dec	Jan – Dec	Jan – Dec
	2025	2024	2025	2024
	Group	Group	Company	Company
	EUR' 000	EUR' 000	EUR' 000	EUR' 000
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "INDEXO Jauda 16-55"	3 731	3 260	3 731	3 260
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "INDEXO Izaugsme 55-62"	923	918	923	918
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "INDEXO Konservativais 62+"	127	121	127	121
Commission fee for the management of the assets of the private pension scheme pension plan "INDEXO AKCIJU PLANS"	227	136	88	56
Commission fee for managing the assets of the private pension scheme pension plan "INDEXO OBLIGACIJU PLANS"	20	10	8	4
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "V75"	24	-	-	-
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "V80"	32	-	-	-
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "V90"	30	-	-	-
Commission fee for the management of the assets of the State Funded Pension Scheme Investment Plan "V60"	2	-	-	-
Total commission income from management of private and state funded pension scheme assets	5 116	4 445	4 877	4 359
Account maintenance fees	213	17	-	-
Loan origination fees	139	-	-	-
Card service fees	134	13	-	-
Payment transfer fees	4	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Other	4	-	-	-
Total	5 610	4 475	4 877	4 359

4. Commission and fee expense

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR' 000	EUR' 000	EUR' 000	EUR' 000
Payment card issuance and servicing fees	(163)	(72)	-	-
Loan origination fees	(158)	(12)	-	-
Loan broker commissions	(112)	-	-	-
Settlement fees	(82)	(17)	(2)	-
Client acquisition commissions	(29)	(20)	-	-
Securities portfolio management fees	(23)	-	-	-
Custodian bank fees	(2)	(5)	-	-
Other fees	-	(3)	-	-
Total	(569)	(129)	(2)	-

5. Administrative expenses

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR' 000	EUR' 000	EUR' 000	EUR' 000
IT expenses, including amortisation of intangible assets classified as IT related investments	3 294	2 254	142	128
Remuneration to other staff	2 771	3 447	375	1 269
Other staff costs	1 261	243	1 007	81
Sales and marketing expenses	1 073	951	553	610
Remuneration to the Management Board and Supervisory Board	857	161	202	161
National social insurance mandatory contributions to other staff	644	777	83	276
Professional fees	554	324	315	155
Office maintenance costs	287	172	131	90
National social insurance mandatory contributions to the Management Board and Supervisory Board	195	38	48	33
Share option reserves	145	239	145	239
Other	39	88	20	86
Total	11 120	8 694	3 021	3 128
	Dec 2025	Dec 2024	Dec 2025	Dec 2024
---	---	---	---	---
	Group	Group	Company	Company
Number of employees, average	141*	108	49	58

*-The Group's average number of employees has been calculated for the period, considering the acquisition dates of subsidiaries.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Employee benefits

Short-term employee benefits are recognised as expenses when the related service is rendered. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and if the obligation can be reliably measured.

Remuneration policy

To ensure a high long-term employee performance culture, the Group and the Company determine remuneration that is competitive, differentiated, follows business logic, aligns with market practices, and reflects employee competence and long-term performance. The total remuneration paid for a certain period of time must not jeopardize the Group's and the Company's ability to produce positive results over the relevant business cycle.

Group's Remuneration policy in its current version was approved on 28 March 2025 at the Company's shareholders' meeting. The Policy establishes the core principles governing the remuneration of the Management Board and Supervisory Board of IPAS INDEXO. On 7 April 2025, the Supervisory Boards of IPAS INDEXO, AS "Indexo Atklātais Pensiju Fonds", and AS INDEXO Banka approved a new INDEXO Group Remuneration Policy, which regulates the principles for determining remuneration for officials and employees across the respective INDEXO Group entities. The INDEXO Group Remuneration Policy applies to all employees, as well as Management Board and Supervisory Board members of the Group's companies. With respect to the Management Board and Supervisory Board members of IPAS INDEXO, the Policy applies insofar as it does not conflict with the Remuneration Policy of the Management Board and Supervisory Board of IPAS INDEXO, which is approved by the Shareholders' Meeting of IPAS INDEXO. The core principles of the INDEXO Group Remuneration Policy are reviewed on a regular basis to ensure alignment with the Group's operational plans, growth strategy, regulatory requirements, and the results of internal control system assessments. A significant enhancement in the updated version of the Policy relates to Chapter 6, introducing stricter conditions for determining the fixed component of remuneration for specific roles. A remuneration framework has been implemented under which positions are evaluated and assigned to defined salary bands. Each salary band has a predetermined range for the fixed component of remuneration. The internal audit function regularly checks compliance with the core principles on remuneration. Based on the audit results, action plans are prepared to address the identified weaknesses in the internal control system and to implement improvements.

The remuneration structure of the Group and the Company consists of three components:

base salary;
variable part of remuneration (only in monetary form);
other additional benefits.

The fixed part of the remuneration consists of a part of the salary that is independent of the employee's individual performance. The fixed part of the remuneration is determined by considering the employee's level of education, professional experience, position, duties and responsibilities. This is usually the salary. For the members of the Supervisory Council there is a fixed remuneration determined by shareholders' meeting for the participation in Council's and committees' meetings.

Other additional benefits in monetary and non-monetary form that are included in the standard remuneration package for employees and members of the Management Board and the Supervisory Council are considered to be part of the fixed remuneration and include, for example, contributions for employees to a private pension fund, health insurance, allowances in exceptional circumstances, use of mobile phones purchased by the Company and/or payment of mobile-related expenses, paid participation in seminars, training sessions and other benefits.

The variable component of remuneration may be granted to specific categories of employees and is based on achieved individual performance and pre-defined quantitative and qualitative criteria. In addition, the variable component of remuneration for Management Board members and employees may be granted:

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

(i) as compensation for compliance with non-competition obligations upon termination of employment or other legal relationships, which within a one-year period may not exceed 100% of the individual's fixed remuneration received in the previous year; (ii) as severance compensation upon termination of employment or other legal relationships exceeding the severance amounts prescribed by the Labour Law but not exceeding six months of the individual's fixed remuneration.

During 2025, the variable remuneration of sales specialists and sales team managers consisted of a performance-based component linked to individual results. This component was determined and paid monthly in accordance with IPAS "Indexo" internal regulations governing sales specialists' working time, remuneration, bonus determination, and training. Variable remuneration paid to sales specialists and sales team managers in 2025 did not exceed the policy limit of 500% of the employee's annual variable remuneration. In 2025, variable remuneration was not paid to Supervisory Board members, Management Board members, or employees in positions that have a material impact on the risk profile of the Group or the Company. The total remuneration of the Company's employees during 2025 is presented in the table below.

	Company	Company
	2025	2024
	EUR'000	EUR'000
Total remuneration of affected employees with an impact on risk profile remuneration:	1 324	1 812
-incl. Supervisory and management board	201	161
-incl. audit committee	1	1
-executives	77	90
-other positions which include risk taking for the Company or its funds under management	-	-
-other positions where the employed officials or employees of the company, based on the company's risk assessment, significantly influence the risk profile of the company or its managed investment portfolio through their professional activities, such as the head of the investment department, the head of human resources, and the head of distribution (marketing) department.	21	4
-positions who are responsible for internal control functions in the company	134	40
Other employee remuneration	890	1 516
Total remuneration:	1 324	1 812
-of which fixed part of remuneration	1 057	1 404
-of which variable part of remuneration	267	408
Total count of remuneration received:	1 500	1 511
-of which fixed part of remuneration received	846	920
-of which variable part of remuneration received	654	591

The Group's and the Company's capitalised salary costs in 2025 and 2024:

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR	EUR	EUR	EUR
Remuneration, accrued liabilities for unused annual leave and other corrections	4 676	5 171	1 465	1 695
Capitalised remuneration costs	(341)	(492)	(341)	(492)
Amortisation of capitalised remuneration costs	381	315	381	315
Total	4 716	4 994	1 505	1 518

Share options

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Shareholders of the Company have approved two personnel share option schemes relevant during the reporting period. The first option scheme is referred to hereinafter as an employee stock option scheme while the second option scheme is referred to hereinafter as a management stock option scheme.

Employee stock option scheme

The terms of the Employee Stock Option Scheme were approved at the Company's shareholders' meeting on 29 March 2021. The updated terms were approved at the Company's shareholders' meeting on 24 March 2022, the latest version of the terms was approved on 25 March 2024. Summary of options granted under the Employee Stock Option Scheme

	Jan – Dec	Jan – Dec
2025	2024
Average exercise price per share option	Number of options	Average exercise price per share option
EUR	EUR
As of 1 January	2.86	3 225
Granted during the year (+)	2.86	3 350
Exercised during the year (-)	2.86	(2 975)
Forfeited during the year (-)	2.86	(150)
As of 31 December	2.86	3 350
Vested and exercisable as of 31 December	-	-

The assessed fair value at grant date of options granted during the year ended 31 December 2025 was between EUR 4.87 to EUR 5.19 per option (please see table below) (2024: EUR 9.06 to EUR 10.71). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option.

The utilisation of shares is not subject to any restrictions. Employee stock option scheme is an equity-settled scheme that includes only a service condition. The model inputs for options granted during the year ended 31 December 2025 included:

exercise price: EUR 2.86
grant date: multiple grant dates
exercise period first date: 12 months after grant date
expiry date: The Management Board of the Company determines the option exercise dates ("Option Exercise Date") each year by its decision, ensuring that at least two Option Exercise Dates are set within the calendar year, if not exercised by then, the options expire
share price at grant date: share price at grant date
expected price volatility of the Company's shares: 26%
risk-free interest rate: German 5-year bond yield at grant date

Grant date	Date	09/05/2025	26/08/2025	15/09/2025	23/09/2025
Exercise price	EUR		2.86
Expected price volatility of the company's shares	%		26%
Exercise period first date	Date	11/05/2026	27/08/2026	16/09/2026	24/09/2026
Expiry date	Date	By its decision, the Management Board of the Company determines the option exercise dates each year ("Option Exercise Date"), ensuring that at least two option exercise dates are set within a calendar year. If the options are not exercised by the specified deadline, they expire.
Share price at grant date	EUR	10.15	9.98	9.92	9.7

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The assessed fair value at grant date of options granted during the year ended 31 December 2024 was between EUR 9.06 to EUR 10.71 per option (please see table below). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option.

The utilisation of shares is not subject to any restrictions. Employee stock option scheme is an equity-settled scheme that includes only a service condition. Vested options are exercisable for a period of three months after vesting. The model inputs for options granted during the year ended 31 December 2024 included:

exercise price: EUR 2.86
grant date: multiple grant dates
exercise period first date: 12 months after grant date
expiry date: 3 months after exercise period end date
share price at grant date: share price at grant date
expected price volatility of the company's shares: 26%
risk-free interest rate: German 5-year bond yield at grant date

Grant date	Date	18/03/2024	22/04/2024	03/07/2024	16/07/2024
Exercise price	EUR		2.86
Expected price volatility of the company's shares	%		26%
Exercise period first date	Date	19/03/2025	23/04/2025	04/07/2025	17/07/2025
Expiry date	Date	By its decision, the Management Board of the Company determines the option exercise dates each year ("Option Exercise Date"), ensuring that at least two option exercise dates are set within a calendar year. If the options are not exercised by the specified deadline, they expire.
Share price at grant date	EUR	11.85	12	13.5	13.35
Risk-free interest rate	%	2.48%	2.49%	2.56%	2.41%
Option price per option	EUR	9.06	9.21	10.71	10.56

Phase I management stock option scheme

During the reporting period the Company granted Phase I management stock options to its management team. The terms of the personnel options of the Company were approved by the general meeting of shareholders of the Company on 24 March 2022, the latest version of the terms was approved on 7 November 2025. One option gives the right to purchase one share of the Company for EUR 1.00 with a vesting period of 1 calendar year. After an option is exercised, the Company has a proportional clawback right, if at the target date (Companies board meeting date is no later than 4 months after Company's 2027 Annual report publishing date) stock price does not exceed the specified amount in the Option scheme rules. Option holders can get a material benefit from Phase I management options only if the stock market price exceeds the EUR 16.51 per share price on the exercise date.

Jan – Dec		Jan – Dec
2025		2024
Average exercise price per share option	Number of options	Average exercise price per share option	Number of options

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

	EUR		EUR
As of 1 January,	16.51	4 050	16.51	37 100
Granted during the year (+)	16.51	2 230	16.51	4 050
Exercised during the year (-)	16.51	(2 767)	16.51	(30 592)
Forfeited during the year (-)	16.51	(1 050)	16.51	(6 508)
As of 31 December,	16.51	2 463	16.51	4 050
Vested and exercisable as of 31 December	-	-	-	-

The assessed fair value at grant date of options granted during the year ended 31 December 2025 was between EUR 0.11 – EUR 0.21 per option (please see the table below). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option and the probability of option forfeiture due to the long vesting period.

The model inputs for options granted during the year ended 31 December 2025 included:

exercise price: EUR 16.51
grant date: multiple granting dates
target date: 4 months after approval of FY2027 annual report, expected in August 2027.
probability of option forfeiture during the vesting period: 30%
share price at grant date: share price at grant date
expected price volatility of the company's shares: 26%
risk-free interest rate: German 5-year bond yield at grant date

Grant date	Date	09/05/2025	26/08/2025	15/09/2025	23/09/2025
Exercise price	EUR		16.51
Exercise period first date	Date		01-Aug-27
Probability of option forfeiture during the vesting period	%		30%
Expected price volatility of the company's shares	%		26%
Share price at grant date	EUR	10.15	9.98	9.92	9.7
Risk-free interest rate	%	2.10%	2.27%	2.30%	2.33%
Option price per option	EUR	0.21	0.14	0.13	0.11

The assessed fair value at grant date of options granted during the year ended 31 December 2024 was between EUR 1.16 – EUR 1.24 per option (please see the table below). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option and the probability of option forfeiture due to the long vesting period.

The model inputs for options granted during the year ended 31 December 2024 included:

exercise price: EUR 16.51
grant date: multiple granting dates
target date: 4 months after approval of FY2026 annual report, expected in August 2027.
probability of option forfeiture during the vesting period: 30%
share price at grant date: share price at grant date
expected price volatility of the company's shares: 26%
risk-free interest rate: German 5-year bond yield at grant date

Grant date

Date

03/07/2024

16/07/2024

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Exercise price	EUR	16.51
Exercise period first date	Date	01-Aug-27
Probability of option forfeiture during the vesting period	%	30%
Expected price volatility of the company's shares	%	26%
Share price at grant date	EUR	13.5
Risk-free interest rate	%	2.56%
Option price per option	EUR	1.24

Phase II management stock option scheme

During the reporting period, the Company granted Phase II management stock options to its management team. The terms of the personnel options of the Company were approved by the general meeting of shareholders of the Company on 24 March 2022, the latest version of the terms was approved on 7 November 2025. One option gives the right to purchase one share of the Company for EUR 27.48 with a vesting period of 1 calendar year. Following the exercise of share options, the Company retains the right to repurchase the shares if, at the exercise evaluation date (determined by the Management Board and set no later than four months following the publication of the Company's financial statements for the year 2027), the value of the Company's shares does not exceed EUR 27.48.

	Jan - Dec 2025		Jan - Dec 2024
	Average exercise price per share option	Number of options	Average exercise price per share option	Number of options
	EUR		EUR
As of 1 January	-	139 836	-	126 700
Granted during the year (+)	27.48	23 100	27.48	24 300
Exercised during the year (-)	-	-	-	-
Forfeited during the year (-)	-	(9 753)	-	(11 164)
As of 31 December	27.48	153 183	27.48	139 836
Vested and exercisable as of 31 December	-	-	-	-

The assessed fair value at grant date of options granted during the year ended 31 December 2025 was between EUR 0.00 – EUR 0.01 per option (please see the table below). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option and the probability of option forfeiture due to the long vesting period.

The model inputs for options granted during the year ended 31 December 2025 included:

exercise price: EUR 27.48
grant date: multiple granting dates
target date: 4 months after approval of FY2026 annual report, expected in August 2027.
probability of option forfeiture during the vesting period: 30%
share price at grant date: share price at grant date
expected price volatility of the company's shares: 26%
risk-free interest rate: German 5-year bond yield at grant date

Grant date	Date	09/05/2025	26/08/2025	15/09/2025	23/09/2025
Exercise price	EUR	27.48

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Exercise period first date	Date	01-Aug-27
Probability of option forfeiture during the vesting period	%	30%
Expected price volatility of the company's shares	%	26%
Share price at grant date	EUR	10.15	9.98	9.92	9.70
Risk-free interest rate	%	2.23%	2.27%	2.30%	2.33%
Option price per option	EUR	0.01	0.004	0.003	0.002

The assessed fair value at grant date of options granted during the year ended 31 December 2024 was between EUR 0.18 – EUR 0.21 per option (please see the table below). The fair value at grant date is independently determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share the risk-free interest rate for the term of the option and the probability of option forfeiture due to the long vesting period.

The model inputs for options granted during the year ended 31 December 2024 included:
- exercise price: EUR 27.48
- grant date: multiple granting dates
- target date: 4 months after approval of FY2026 annual report, expected in August 2027.
- probability of option forfeiture during the vesting period: 30%
- share price at grant date: share price at grant date
- expected price volatility of the company's shares: 26%
- risk-free interest rate: German 5-year bond yield at grant date

Grant date	Date	03/07/2024	15/07/2024	16/07/2024
Exercise price	EUR		27.48
Exercise period first date	Date		01-Aug-27
Probability of option forfeiture during the vesting period	%		30%
Expected price volatility of the company's shares	%		26%
Share price at grant date	EUR	13.5	13.3	13.35
Risk-free interest rate	%	2.56%	2.45%	2.41%
Option price per option	EUR	0.21	0.18	0.19

The options are recognized in the financial statements linearly over the vesting period. Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit expense were as follows:

	Jan – Dec	Jan – Dec
	2025	2024
	EUR	EUR
Options issued under employee option scheme	44 106	137 017
Options issued under Phase I management option scheme	88 935	90 275
Options issued under Phase II management option scheme	11 815	11 665
Total option scheme expense	144 856	238 957

2025 Share Option Programme

The employee share option programme approved in 2025 has been established as a long-term motivation and retention instrument aimed at strengthening employee and Management Board engagement in the Company's development, supporting retention, and aligning interests towards the growth of overall shareholder value.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The programme provides for the granting of up to 130 000 employee share options, with each option granting the right to acquire one newly issued share at an exercise price of EUR 7. Options are granted free of charge and become exercisable after a 36-month vesting period, following which they may be exercised once per year on the option exercise date determined by the Management Board.

Options that are not exercised at the nearest exercise date are automatically cancelled. Following the acquisition of shares, employees are subject to a 24-month restriction period on share disposals. Employees may dispose of up to 15% of shares during the first six months, an additional 15% during the following six months, and up to 30% during the subsequent 12 months. A contractual penalty of 20% of the value of improperly disposed shares applies in cases of non-compliance with disposal restrictions.

The programme applies to all employees and Management Board members of the INDEXO Group who maintain active employment relationships. If employment is terminated during the vesting period, the granted options are automatically cancelled, except where employment continues within another entity of the Group.

The programme establishes a clear framework for the granting, registration, exercise, and share issuance process, including the share capital increase procedure following option exercise, ensuring a transparent and consistent approach to the administration of this long-term incentive instrument.

Share options AS DelfinGroup

In September 2021, the shareholders approved a share option plan for employees and the Group's management. Under the programme, up to 450 000 new shares may be issued. The first share options under the plan were granted to employees in December 2022. In accordance with the AS DelfinGroup share option plan, parent company share options are granted to employees of AS DelfinGroup. Eligibility to receive employee share options is subject to the following conditions:

The employee has been employed by the Company for at least 12 months;

The employee has achieved individual performance targets set by management and contributed to the achievement of overall business objectives.

To exercise the share options, the holder must be employed within the Group. Upon exercise, option holders are entitled to subscribe for newly issued shares of AS DelfinGroup at a price of EUR 0.10 per share. The minimum vesting period from the grant date until the date on which the option may be exercised is 12 months. Option agreements must be exercised within one month following the exercise date, and cash settlement is not permitted.

In connection with the share option plan, the Group recognised share-based payment expenses of EUR 90 694 during the reporting year, compared to EUR 66 750 in 2024, and reversed previously recognised expenses of EUR 38 904, compared to EUR 13 158 in 2024. The reversals were recognised because not all employees who held share options exercised them, and certain employees terminated their employment with AS DelfinGroup within 12 months of the grant date and were therefore not eligible to exercise their options.

Although the remaining 320 679 plan options have been approved for future share-based schemes, they have not yet been included in binding agreements, and therefore no expense has been

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

recognised in respect of these options during the reporting year.

Movements in the number of share options during the year:
Outstanding on 1 January 2024 85 002
Granted 73 838
Exercised (28 930)
Forfeited (11 266)
Outstanding on 31 December 2024 118 644
Exercisable on 31 December 2024 44 806
Granted 85 838
Exercised (42 480)
Forfeited (37 664)
Outstanding on 31 December 2025 169 144
Exercisable on 31 December 2025 38 500

Fair value measurement

The fair value of share options is estimated at the grant date using the Black Scholes option pricing model. In estimating the fair value of the options, the terms and conditions under which the share options were granted are considered, together with assumptions applied to adjust the Black Scholes model calculations. Where available, market data is used as model inputs, including the share price, expected dividend yield, and the risk-free interest rate. The weighted average fair value of options granted at the measurement date ranged from EUR 1.00497 to EUR 1.09660, compared to a range of EUR 0.90056 to EUR 0.90776 in 2023.

The table below presents the key inputs used in the fair value measurement:

	2025	2024
Weighted average share price fair value	1,182 – 1,288	1,076 – 1,086
Weighted average exercise price	0,1	0,10
Expected option life (years)	1	1
Expected volatility (%)	40,34% - 40,74%	26,79% - 28,03%
Dividend yield (%)	7,01% - 7,61%	7,57% - 7,77%
Risk-free interest rate (%)	3,00%	3,00%

Interest income calculated using the effective interest rate

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Interest income from financial assets measured at amortised cost
Interest income from loans and advances to customers	2 023	22	-	-
Interest income from balances with the Bank of Latvia	613	375	-	-
Interest income from loans to related parties	-	-	25	32
Interest income from debt securities	170	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Interest expense

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Interest expense on financial liabilities measured at amortised cost
Interest paid on customer deposits	1 176	171	-	-
Interest on borrowings for share acquisition	299	300	299	300
Interest expense on lease liabilities	115	64	3	3
Interest expense on subordinated borrowings	12	-	-	-
Contributions to the deposit guarantee scheme and other payments	99	238	-	-
Total	1 701	773	302	303

Other operating expenses

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Bank of Latvia financing fee	251	104	176	65
Total	251	104	176	65

Corporate income tax expense

The components of income tax expense for the years ended 31 December 2024 and 2025 were as follows:

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Corporate income tax expense	(8)	(9)	(4)	(7)
Total	(8)	(9)	(4)	(7)

Demand deposits with the central banks

	Dec 2025	Dec 2024	Dec 2025	Dec 2024
	EUR '000	EUR '000	EUR '000	EUR '000
	Group	Group	Company	Company
Cash	557	-	-	-
Overnight with Bank of Latvia	17 610	34 931	-	-
Placement with the Bank of Latvia	2 125	444	-	-
Total before impairment loss from financial instruments allowance	19 735	35 375	-	-
Allowances for expected credit losses	(1)	(1)	-	-
Total	20 291	35 374	-	-

Due from the Bank of Latvia represents the EUR nominated balance on the correspondent account with the Bank of Latvia.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The obligatory reserve EUR 510 168 is compared to the Bank's average monthly balance on the correspondent account with the Bank of Latvia. The Bank's average cash and correspondent account balance should exceed the compulsory reserve requirement. As of 31 December 2025, the Bank complied with the requirements.

Due from financial institutions

	Dec 2025	Dec 2024	Dec 2025	Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Neither impaired nor past due
Demand balances
Credit institutions in the EEA*	3 807	397	17	18
Credit institutions outside the EEA	-	-	-	-
International credit ratings**
A- and above	456	14	3	14
BBB- to BB+	897	-	-	-
Unrated	2 454	383	14	3
Total demand balances	3 807	397	17	17
Term deposits
Credit institutions in the EEA*	1 892	876	1 916	1 451
International credit ratings**
A- and above	-	-	-	-
BBB- to BB+	1 000	-	-	-
Unrated	892	876	1 916	1 451
Term deposits neither impaired nor past due	1 892	876	1 916	1 451
Total balances with credit institutions	5 699	1 273	1 933	1 468
Expected credit losses on balances with credit institutions	-	-	-	-
Net balances with credit institutions	5 699	1 273	1 933	1 468

Demand balances with credit institutions in the EEA include balances with 11 counterparties
*The breakdown is based on credit ratings assigned by the rating agency Moody's Investors Service

In accordance with IFRS 9 "Financial Instruments", the Group assessed expected credit losses on balances with credit institutions. The Group holds most of its cash balances with AS Swedbank. Based on the assessment performed, the level of expected credit losses was determined to be immaterial, and no impairment allowance was recognised. AS INDEXO Banka has not been assigned a credit rating as at the reporting date.

Cash balances held with banks earn interest at variable rates based on daily deposit rates. As of 31 December 2025, the Group had available undrawn borrowings of EUR 4 900 000, compared to EUR 823 820 as of 31 December 2024.

AS DelfinGroup has pledged its term deposits to meet collateral requirements. Further information is disclosed in Note 33.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Concentration of deposits with credit institutions

As of 31 December 2025, and 31 December 2024, the Group and the Company held individual deposits and demand balances with credit institutions that each exceeded 10% of total balances with credit institutions. As of 31 December 2025, and 31 December 2024, balances with credit institutions that individually exceeded 10% of total balances with credit institutions represented 46% and 99%, respectively, of total balances. The total amount of deposits and demand balances with credit institutions that individually exceeded 10% of total balances with credit institutions amounted to EUR 2 614 thousand as of 31 December 2025, compared to EUR 1 259 thousand as of 31 December 2024. These balances represented exposures to SWEDBANK AS, which does not have an assigned credit rating.

12. Loans and receivables from non-banks

Consumer loans (unsecured loans) represent loans granted to individuals to finance personal expenses without collateral. These loans are typically used for urgent purchases, household needs, or consolidation of existing liabilities.

Overdrafts on current accounts (unsecured credit) represent short term credit facilities that allow account holders to withdraw funds more than their available balance, subject to applicable interest and repayment terms.

Mortgage loans (loans secured by real estate) represent long term loans granted to individuals for the acquisition, construction, or substantial renovation of residential property. The loan is secured by a pledge over real estate, which serves as collateral for the borrower's obligations. AS INDEXO Banka currently offers refinancing of existing mortgage loans originally granted by other lenders.

a) The tables below present loans and receivables from non-banks by loan type measured at amortised cost. The information is presented as of 31 December 2025 and 31 December 2024.

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Dec 2025	Dec 2024	Dec 2025	Dec 2024
Group	Group	Company	Company
EUR'000	EUR'000	EUR'000	EUR'000

Receivables from unsecured loans

Non-current receivables from unsecured loans	172 620	1 063	-	-
Current receivables from unsecured loans	34 196	2	-	-
Accrued interest on unsecured loans	5 567	5	-	-
Total unsecured loans before impairment allowances	212 383	1 070
Expected credit loss allowances	(19 833)	(83)	-	-
Total unsecured loans, net	192 550	987	-	-

Receivables from loans secured by real estate

Non-current receivables from loans secured by real estate	23 555	-	-	-
Current receivables from loans secured by real estate	-	-	-	-
Accrued interest on loans secured by real estate	44	-	-	-
Total loans secured by real estate before impairment allowances	23 599	-	-	-
Expected credit loss allowances	(34)	-	-	-
Total loans secured by real estate, net	23 565	-	-	-
Total receivables from issued loans	216 115	987	-	-
---	---	---	---	---

All loans have been issued in euro to households. The weighted average loan maturity for consumer loans at AS DelfinGroup is 4.2 years, while the weighted average maturity for consumer loans at AS INDEXO Banka is 4 years. AS DelfinGroup has entered into an agreement with a third party for the regular assignment of receivables, under which overdue receivables with payment delays exceeding 60 days are ceded monthly. Losses arising from these transactions were recognised in the reporting year.

b) Impairment allowances for loans issued to customers measured at amortised cost. The analysis of movements in the gross carrying amount of issued loans and the corresponding expected credit loss allowances for the year ended 31 December 2025 is presented below:

Group	Stage 1 EUR'000	Stage 2 EUR'000	Stage 3 EUR'000	Total EUR'000
Gross carrying amount as of 1 January 2024	-	-	-	-
New assets originated or acquired	1 070	-	-	1 070
Assets repaid or partially repaid	(5)	(1)	(1)	(7)
Transferred to Stage 1	(282)	282	-	-
Transferred to Stage 2	-	(22)	22	-
Transferred to Stage 3	-	-	-	-
As of 31 December 2024	783	259	21	1 063

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IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

New assets originated or acquired	71 231	-	-	71 231
Increases arising from the acquisition of a new Group entity in 2025	165 239	6 775	7 819	179 833
Assets repaid or partially repaid	(15 777)	(122)	(7)	(15 906)
Impact of accrued interest	42	1	-	43
Transferred to Stage 1	106	(103)	(3)	-
Transferred to Stage 2	(2 300)	2 002	(2)	(300)
Transferred to Stage 3	(549)	(20)	587	18
As of 31 December 2025	218 775	8 792	8 415	235 982

Expected credit loss allowances for loans to customers measured at amortised cost (continued)

Group	Stage 1 EUR'000	Stage 2 EUR'000	Stage 3 EUR'000	Total EUR'000
Expected credit losses as of 1 January 2024	-	-	-	-
New assets originated or acquired	83	-	-	83
Transferred to Stage 1	(55)	55	-	-
Transferred to Stage 2	-	(15)	15	-
Transferred to Stage 3	-	-	-	-
As of 31 December 2024	28	40	15	83
New assets originated or acquired	1 166	-	-	1 166
Assets repaid or partially repaid	-	(19)	(10)	(29)
Increases arising from the acquisition of a new Group entity in 2025	10 184	2 948	5 515	18 647
Transferred to Stage 1	5	(5)	-	-
Transferred to Stage 2	(234)	234	-	-
Transferred to Stage 3	(397)	(15)	411	-
As of 31 December 2025	10 752	3 183	5 931	19 867

c) Ageing analysis of unsecured loans to customers measured at amortised cost:

	Group Dec 2025 EUR'000	Group Dec 2024 EUR'000	Company Dec 2025 EUR'000	Company Dec 2024 EUR'000
Not past due	181 565	1 060	-	-
Past due 1-30 days	15 468	8	-	-
Past due 31-90 days	7 218	2	-	-
Past due 91-180 days	2 804	-	-	-
Past due 181-360 days	2 945	-	-	-
Past due over 360 days	2 383	-	-	-
Total	212 383	1 070	-	-

d) Ageing analysis of secured loans issued measured at amortised cost:

	Group Dec 2025 EUR'000	Group Dec 2024 EUR'000	Company Dec 2025 EUR'000	Company Dec 2024 EUR'000
Not past due	23 599	-	-	-
Past due 1-30 days	-	-	-	-
Past due 31-90 days	-	-	-	-
Past due 91-180 days	-	-	-	-
Past due 181-360 days	-	-	-	-
Past due over 360 days	-	-	-	-
Total	23 599	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

e) Ageing analysis of impairment allowances for credit impaired loans:

	Group Dec 2025 EUR'000	Group Dec 2024 EUR'000	Company Dec 2025 EUR'000	Company Dec 2024 EUR'000
Not past due	7 942	79	-	-
Past due 1–30 days	3 214	1	-	-
Past due 31–90 days	3 121	3	-	-
Past due 91–180 days	1 758	-	-	-
Past due 181–360 days	1 958	-	-	-
Past due over 360 days	1 874	-	-	-
Total expected credit loss allowances	19 867	83	-	-

f) Fair value of unsecured loans of the newly acquired Group entity

As the loan portfolio of AS DelfinGroup was acquired as part of a business combination, it was initially recognised at fair value. As a result, a fair value adjustment of EUR 24 818 thousand was recognised in respect of AS DelfinGroup's unsecured loan portfolio. Further information is disclosed in Note 18.

13. Debt securities measured at amortised cost

Within the Group, debt securities measured at amortised cost are presented by issuer type as follows:

	Dec 2025
	EUR'000
Debt securities
Government and municipal securities
European Union and EEA	5 307
Latvia	591
Total government and municipal securities, gross	5 898
Allowance for expected credit losses	-
Total government and municipal securities, net	5 898

As of 31 December 2024, the Group did not hold any debt securities.

The geographical breakdown is based on the credit risk of the issuers' countries of registration. The credit quality of the Group's debt securities measured at amortised cost is presented below:

	Dec 2025
	EUR'000
Debt securities
Government and municipal securities
A- and above	2 399
AAA- to AAA+	998
BBB- to BBB+	2 501
Total government and municipal securities, net	5 898

All financial instruments issued by the Group's counterparties, with a total carrying value, were classified in Stage 1 in accordance with the requirements of IFRS 9.

14. Loans to associates and subsidiaries

31.12.2025 31.12.2024 31.12.2025 31.12.2024

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
SIA Provendi asset management AIFP	68	79	68	79
Total loans	68	79	68	79
Accrued interest	-	-	-	-
Total accrued interests	-	-	-	-
Allowances for expected credit losses	(2)	(5)	(2)	(5)
Total	66	74	66	74

Loan to associated company was made for working capital, to cover the borrower's current expenses, the maturity date is set at the end of 2026 with the interest rate 6% p.a. Assessing the credit quality of the loan as of 31 December, 2025, the loan is classified in stage 2 according to IFRS 9, and allowances for expected credit losses were made. Considering that the loan is unsecured, the expected credit losses from financial instruments are determined with LGD=100%. The lifetime PD is determined to be 4.48%.

Changes in allowances for expected credit losses (Group):

	Allowances for expected credit losses	Loans, gross
Stage 1	Stage 2	Stage 3
31.12.2024	-	(5)
SIA Provendi asset management AIFP	-	3
31.12.2025	-	(2)

Changes in allowances for expected credit losses (Company):

	Allowances for expected credit losses	Loans, gross
Stage 1	Stage 2	Stage 3
31.12.2024	-	(5)
SIA Provendi asset management AIFP	-	3
31.12.2025	-	(2)

15. Financial assets measured at fair value

	Group	Group	Company	Company
Pawn loans measured at fair value	31.12.2025
EUR'000	31.12.2024
EUR'000	31.12.2025
EUR'000	31.12.2024
EUR'000
Non-current pawn loans	190	-	-	-
Current pawn loans	7 399	-	-	-
Accrued interest on pawn loans	437	-	-	-
Total pawn loans measured at fair value	8 026	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Pawn loans with a carrying value of EUR 8 025 506 are secured by pledged collateral and are measured at fair value. The weighted average maturity of pawn loans is one month.

16. Investments in equity securities

	Shareholding		Shareholding
	31.12.2025	31.12.2025	31.12.2024	31.12.2024
	Company	Company	Company	Company
		EUR'000		EUR'000
Goindex UAB (Lithuania)	3.97%	62	4.36%	62
Total		62		62
	Shareholding		Shareholding
	31.12.2024	31.12.2024	31.12.2023	31.12.2023
	Group	Group	Group	Group
		EUR'000		EUR'000
Goindex UAB (Lithuania)	3.97%	62	4.36%	62
Total		62		62

Goindex UAB was established with the objective of improving the pension market in Lithuania, in line with the Company's mission and values. The investment is intended to support positive developments in the Lithuanian pension market.

17. Investment in associates

	Shareholding		Shareholding
	31.12.2025	31.12.2025	31.12.2024	31.12.2024
	Company	Company	Company	Company
		EUR'000		EUR'000
SIA Provendi asset management AIFP, SIA	49%	223	49%	198
Total		223		198
	Shareholding		Shareholding
	31.12.2025	31.12.2025	31.12.2024	31.12.2024
	Group	Group	Group	Group
		EUR'000		EUR'000
SIA Provendi asset management AIFP, SIA	49%	223	49%	198
Total		223		198

SIA Provendi Asset Management AIFP was established to create a modern, low-cost real estate fund in Latvia, aligned with the Company's mission and values. The investment supports positive developments in the Latvian investment market. During 2025, the Company invested EUR 24 500 in SIA Provendi Asset Management AIFP, compared to EUR 71 050 in 2024.

The investment in SIA Provendi Asset Management AIFP is carried at cost, and the carrying amount of the investment is adjusted only if indicators of impairment are identified. Dividends received (if any) are recognised in the profit or loss of the Company and the Group as income from investments.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The Company has assessed the recoverable amount of the investment based on a long-term valuation of the associate, SIA Provendi Asset Management AIFP, by discounting the associate's projected future cash flows. The valuation was determined using forecast cash flows and applying a discount rate of 10%. Cash flow projections were prepared for a three-year period based on the associate's long term business plan for 2025 and expected future growth.

18. Investments in subsidiaries

| | Shareholding
31.12.2025 | 31.12.2025 | Shareholding
31.12.2024 | 31.12.2024 |
| --- | --- | --- | --- | --- |
| | EUR'000 | | | EUR'000 |
| AS DelfinGroup (Latvia) | 67,42% | 38 987 | | - |
| INDEXO Banka, AS (Latvia) | 100% | 27 325 | 100% | 17 309 |
| IPAS VAIRO (Latvia) | 100% | 1 450 | | - |
| Indexo Atklātais Pensiju Fonds, AS (Latvia) | 100% | 790 | 100% | 775 |
| Total | | 68 552 | | 18 084 |

*- The ownership interest acquired by IPAS INDEXO as at the balance sheet date of 31 December 2025. In January 2026, an additional 4.10% ownership interest was acquired, increasing total ownership to 71.52%.

2021 was the first year in which AS "Indexo Atklātais Pensiju Fonds" offered its services. "AS Indexo Atklātais Pensiju Fonds" has remained loss-making since the first year of operations. Losses were planned for the first years of operation of the APF as the private pension plans under management are yet to accumulate the number of customers and related investments in the plans to generate sufficient returns in a form of asset management fees to cover operating costs.

In 2025, AS "Indexo Atklātais Pensiju Fonds" share capital was increased by EUR 15 000. On 31 December 2025 share capital of AS "Indexo Atklātais Pensiju Fonds" consists of 790 000 shares with a nominal value of 1 EUR per share.

The Company has assessed the recoverable amount of the investment by discounting the expected future cash flows of its subsidiary. The key assumptions used for value in use calculation is as follows:

Discount rate of 10% (2024: 10%);
Increase in the number of clients (according to the long-term business plan);
Growth in asset under management (according to the long-term business plan);
Market returns;
Cost level within the subsidiary (according to the long-term business plan);
Planned fees for asset under management and private pension plan administration (according to the long-term business plan).

The following individual change in each of the key assumptions would make recoverable amount approximate the investments carrying amount:

43% less new clients throughout the forecast period (2024: 43%);
49% lower average AUM per client joining INDEXO (2024: 49%);
Market returns reduced to 9.5% per annum throughout the forecast period (2024: 9.5%);
Cost level within the subsidiary increases by 19% per annum throughout the valuation period (2024: 19%);
Planned fees for asset under management and private pension plan administration reduced by 26% throughout the valuation period (2024: 26%).

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

AS INDEXO Banka (till May 2024 AS "IDX1R") was established on 19 December 2022 with the aim to develop the legal and IT infrastructure required for receiving a Banking license. On 31 December 2024, share capital of AS INDEXO Banka (till May 2024 AS "IDX1R") consisted of 17 309 445 shares with a nominal value of 1 EUR per share. In 2025 share capital was increased by EUR 10 015 557. At the end of the reporting period, INDEXO Banka, AS share capital consists of 27 325 002 shares with a nominal value of 1 EUR per share.

The Company has assessed the recoverable amount of the investment based on the long-term valuation of its subsidiary, AS INDEXO Banka (till May 2024 AS "IDX1R"), by discounting the future cash flows of the subsidiary and calculating the terminal value using third year's discounted cash flow. The key assumptions used for value in use calculation is as follows:

Discount rate of 10% (2024: 10%);
Multiplier x10 for terminal valuation (2024: x10);
Future cash flows (according to the long-term business plan);
Increase in the number of clients (according to the long-term business plan);
Deposit and credit portfolio increase (according to the long-term business plan);

The following individual change in each of the key assumptions would make recoverable amount approximate the investments carrying amount:

Terminal valuation multiplicator decreased to 3.3 (2024: 3.3);
84% less new clients (2024: 84%);
42% less deposit and credit portfolio (2024: 42%);
Discount rate of 100% (2024: 100%);
58% less future cash flows (2024: 58%).

According to the recoverability calculations, it is not necessary to recognize any impairment of investments in subsidiary companies as of 31 December 2025.

On 31 December 2025 share capital of IPAS VAIRO consists of 1 850 000 shares with a nominal value of 1 EUR per share.

The Company has assessed the recoverable amount of the investment by discounting the expected future cash flows of its subsidiary. The key assumptions used for value in use calculation is as follows:

Discount rate of 10%;
Multiplier x10 for terminal valuation;
Increase in the number of clients (according to the long-term business plan);
Growth in asset under management (according to the long-term business plan);
Market returns;
Cost level within the subsidiary (according to the long-term business plan);
Planned fees for asset under management and private pension plan administration (according to the long-term business plan).

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The following individual change in each of the key assumptions would make recoverable amount approximate the investments carrying amount:

43% less new clients throughout the forecast period;
49% lower average AUM per client joining INDEXO;
Market returns reduced to 9.5% per annum throughout the forecast period;
Cost level within the subsidiary increases by 19% per annum throughout the valuation period;
Planned fees for asset under management and private pension plan administration reduced by 26% throughout the valuation period.

Sensitivity analysis

The following table demonstrates the sensitivity to reasonably possible changes in parameters for INDEXO Banka, AS, IPAS VAIRO and AS "Indexo Atklātais Pensiju Fonds", based on the value depreciation test performed as of 31.12.2024. Using the aforementioned variables, the net present value of the Bank project is determined in the amount of EUR 68 914 thousand, which exceeds the investment made. IPAS VAIRO's net present value is EUR 224 thousand, which exceeds the investment made. On the other hand, the net present value of "Indexo Atklātais Pensiju Fonds" investment stands at EUR 1 031 thousand, which also exceeds the investment made. Sensitivity analysis was prepared to calculate changes in net present value of the project in cases when key parameters would worsen compared to the forecast. The analysis assumes that all other variables remain constant.

Indexo Banka, AS	Parameter Value	Net present value EUR'000 from unfavourable changes in the parameter by 5%	Net present value EUR'000 from unfavourable changes in the parameter by 10%
Discount Rate	10%	68 380	67 851
Terminal Value multiplier	x10	63 016	57 117
Future Cash Flows	EUR	66 015	63 116
Number of Clients	#	65 914	62 367
Deposit Portfolio	EUR	67 431	65 427
Credit Portfolio	EUR	57 842	45 982
AS "Indexo Atklātais Pensiju Fonds"	Parameter Value	Net present value EUR'000 from unfavourable changes in the parameter by 5%	Net present value EUR'000 from unfavourable changes in the parameter by 10%
Discount rate	10%	1 015	999
Number of Clients	#	998	951
Growth in Assets under management	EUR	902	777
Market Returns	6%	1 019	1 004
Cost level	EUR	1 007	986
Planned fees for pension plan administration	% of AUM	901	775
IPAS VAIRO	Parameter Value	Net present value EUR'000 from unfavourable changes in the parameter by 5%	Net present value EUR'000 from unfavourable changes in the parameter by 10%

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Discount rate	10%	223	223
Number of Clients	#	206	188
Growth in Assets under management	EUR	206	188
Market Returns	6%	222	221
Planned fees for pension plan administration	% of AUM	204	185

Financial information of subsidiaries:

	AS "Indexo Atklātais Pensiju Fonds"		INDEXO Banka, AS
	Dec 2025	2024	Dec 2025	2024
	EUR'000	EUR'000	EUR'000	EUR'000
Assets	760	557	87 792	44 591
Liabilities	552	325	78 545	36 114
Equity	208	232	9 247	8 477
Operating income	154	81	1 321	(144)
Loss for the reporting year	(40)	(59)	(9 245)	(6 163)
	IPAS VAIRO
---	---	---
	Dec 2025	Dec 2024
	EUR'000	EUR'000
Assets	296	-
Liabilities	19	-
Equity	277	-
Operating income	333	-
Loss for the reporting year	(420)	-
Profit for the reporting year attributable to IPAS INDEXO*	61	-

IPAS VAIRO was acquired on 19 September 2025; however, for financial reporting purposes a convenience date of 30 September 2025 was applied. Accordingly, the profit for the fourth quarter of 2025 is included in the Group's results.

	AS DelfinGroup
	Dec 2025	Dec 2024
	EUR'000	EUR'000
Assets	162 582	-
Liabilities	132 438	-
Equity	30 144	-
Operating income	13 364	-
Profit for the reporting year	9 615	-
Profit for the reporting year attributable to IPAS INDEXO*	-	-

AS DELFIGROUP
INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Following approvals from the Bank of Latvia, the Bank of Lithuania, and the Competition Council, a voluntary share buyback offer expressed by IPAS INDEXO for the shares of AS DelfinGroup took place from 24 November 2025 to 8 December 2025. Under the offer, DelfinGroup shareholders were given the option to exchange their DelfinGroup shares for newly issued INDEXO shares at an exchange ratio of one INDEXO share for 7.3 DelfinGroup shares, or to sell their DelfinGroup shares for a cash consideration of EUR 1.30 per share. Shareholders also had the option not to participate in the offer and to retain their AS DelfinGroup shares. As a result of the voluntary offer, as of 15 December 2025 IPAS INDEXO had acquired 30 643 883 shares in AS DelfinGroup, representing 67.42% of the total voting share capital of DelfinGroup. Through this transaction, IPAS INDEXO also obtained control over the subsidiaries within the AS DelfinGroup group:

1) SIA ViziaFinance, engaged in non-bank lending through the issuance of unsecured consumer loans. The company holds a consumer lending licence issued by the Consumer Rights Protection Centre;
2) UAB DelfinGroup LT, engaged in pawn lending and the sale of pre-owned goods;
3) DELFINGROUP RO IFN S.A., whose principal activity will be consumer lending in Romania following the receipt of the relevant operating licence.

AS DelfinGroup is a Latvian fintech company holding a consumer lending licence issued by the Consumer Rights Protection Centre (PTAC in Latvian). Established in 2009, the company currently operates in Latvia, Lithuania, and Romania. In addition to operating under the DelfinGroup brand, the company also conducts business through the Banknote and VIZIA brands. AS DelfinGroup has operated profitably every year since 2010 and has been a listed company since 2021. In 2020, a dividend distribution policy was approved, providing for regular quarterly dividend payments of 50% of the previous quarter's profit. The company continuously develops and offers consumer lending services, unsecured loans, short term and long-term pawn loans, and the sale of pre-owned, slightly used, and new goods through more than 80 branches across Latvia, as well as online.

This voluntary share buyback transaction represents the first transaction of this scale in the Latvian capital market. Through the transaction, INDEXO aims to increase the value of both groups by combining their respective strengths and complementary business lines. INDEXO holds strong positions in the pension market alongside the rapidly growing INDEXO Banka, while DelfinGroup operates a well-established consumer lending business supported by an extensive branch network. Significant synergy potential is expected across product portfolio development, marketing, and funding. The transaction also provides clear financial benefits to both parties. By acquiring a majority stake in AS DelfinGroup, INDEXO will gain access to a recurring dividend stream, supporting the accelerated growth of AS INDEXO Banka through reinvestment into lending and development. At the same time, DelfinGroup will gain access to substantially lower cost funding, strengthening its financial performance and enabling further growth opportunities.

Investment of IPAS INDEXO in subsidiary AS DelfinGroup and its group:

	December 31 2025	December 31 2024
Investment in AS DelfinGroup, ‘000 EUR	38 987	-
Core business activity	Provision of non-bank financial services and pawn lending
Country of registration	Latvia
Registered address	Skanstes 50A, Riga, Latvia, LV-1013
Ownership interest	67.42%	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Following settlement of the voluntary share buyback offer for AS DelfinGroup on 15 December 2025, IPAS INDEXO acquired 67.42% of the total voting share capital of AS DelfinGroup. After completion of the voluntary buyback settlement on 15 December 2025, the management of IPAS INDEXO determined a convenience date of 31 December 2025, practically, this means that although actual control was obtained on 15 December 2025, for financial reporting purposes DelfinGroup AS and its subsidiaries are consolidated starting from 31 December 2025. Accordingly, the statement of comprehensive income of DelfinGroup AS for 2025 is not consolidated; only the balance sheet is consolidated. This decision was made considering practical considerations related to transaction accounting, as well as the need to ensure completeness and comparability of financial information. Management concluded that the net impact of the transaction on consolidated profit or loss for the period from 15 December 2025 to 31 December 2025 was immaterial, amounting to a net profit of EUR 607 thousand.

Carrying amount of the financial position of subsidiary AS DelfinGroup group:

'000 EUR	31 December 2025
Cash and cash equivalents	3 540
Receivables from issued loans	144 394
Securities	2 501
Inventories	2 947
Property, plant and equipment	3 745
Intangible assets	2 136
Other assets	3 319
Borrowings from credit institutions	(70 865)
Borrowings from bonds	(23 500)
Other borrowings	(28 824)
Other liabilities	(9 249)
Net assets	30 144

Financial performance of subsidiary AS DelfinGroup group:

'000 EUR	31 December 2025
Revenue	34 570
Expenses	(24 955)
Profit for the period	9 615
Profit attributable to IPAS INDEXO (considering convenience date)	0%

At the acquisition date, the fair value of the identifiable net assets was assessed. As a result, fair value adjustments were recognised for the following asset classes:

1) Loans and receivables from customers – The fair value of loans and receivables from customers was determined using a discounted cash flow approach. The valuation model is based on projected contractual cash flows derived from the actual terms of loan agreements, taking into account scheduled amortisation over the repayment period and expected future interest payments over the contractual life of the loans. A discount rate of 18% was applied in the valuation. This rate reflects the yield required by market participants for the acquisition of a comparable loan portfolio at the acquisition date, considering the following risk components:

risk-free rate;
uncertainty and volatility exceeding ECL assumptions;

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

liquidity and marketability risk;
operational risk;
collection and recovery risk.

When modelling expected future cash flows, the calculations also incorporated early loan repayments, the volume of which was determined based on the historically observed share of early repayments in DelfinGroup’s existing portfolio, as well as on reasonable assumptions regarding borrowers’ future behaviour, taking into account the specifics of DelfinGroup’s operations, a more competitive lending environment and a conservative modelling approach, as early repayment risk may materially affect portfolio revenue projections.

Credit risk was modelled by applying stage-specific probability of default (PD) assumptions to each credit stage. PD levels were determined based on the structure of the DelfinGroup portfolio and historically observed default rates. For Stage 1 exposures, PD assumptions were conservatively adjusted upward, reflecting the currently low default environment in Latvia and the expectation of a potential deterioration in borrowers’ creditworthiness over the longer term. Loss given default (LGD) assumptions were determined primarily based on historical loss experience observed when borrowers reached default status, adjusted where necessary to reflect current market trends and recovery expectations.

2) Intangible assets - For valuation purposes, intangible assets were classified into two categories: internally developed software assets and other intangible assets. Both internally developed software and other intangible assets were valued using a discounted cash flow (DCF) approach. Within the discounting process, projected cost development was used as a key valuation input. The primary assumption applied relates to expected growth in employee compensation costs, reflecting the ongoing development, enhancement, and maintenance requirements of the respective intangible assets. For internally developed software assets, salary growth assumptions applicable to information technology professionals employed within the financial services industry were used, applying an annual growth rate of 5.0%. For other intangible assets, salary growth assumptions applicable to the broader information technology sector were applied, using an annual growth rate of 5.9%. The compensation growth benchmarks were derived from market data compiled by Figure Baltic Advisory. The applied valuation methodology reflects the expected cost dynamics and prevailing market conditions relevant to the continued development and maintenance of the respective intangible assets.

In addition to the asset classes described above, other assets were also assessed as part of the purchase price allocation, including the following:

1) The revaluation of AS DelfinGroup real estate properties was performed using two valuation approaches. Under the first approach, data from the Arco Real Estate 2024 real estate market report was used, reflecting current market trends and price levels. Under the second approach, the cadastral universal valuation was applied, where the standard adjustment coefficient of 0.8 was replaced with a coefficient of 1.0 to better reflect the fair value of the real estate as at the reporting date. Based on the results obtained from both approaches, the differences were assessed as immaterial, and therefore no fair value adjustment was recognised in the financial statements.

2) AS DelfinGroup performs regular fair value remeasurement of inventories; therefore, no additional revaluation was performed at the acquisition date.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Fair value recognition result:

‘000 EUR	Acquisition value	Changes	Fair value
Cash and cash equivalents	3 540	-	3 540
Loans	144 394	24 818	169 212
Securities	2 501	-	2 501
Inventories	2 947	-	2 947
Property, plant and equipment	3 745	-	3 745
Intangible assets	2 136	3 038	5 174
Other assets	3 319	-	3 319
Borrowings from credit institutions	(70 865)	-	(70 865)
Bonds issued	(23 500)	-	(23 500)
Other borrowings	(28 824)	-	(28 824)
Other liabilities	(9 249)	-	(9 249)
Net assets	30 144	27 856	58 000
Share of net assets at fair value attributable to IPAS INDEXO (67.42%)	-	-	39 104
Share of net assets at fair value attributable to non-controlling interests (32.58%)	-	-	18 898

Minority shareholders' participation, representing the non-controlling interest, is recognised and presented in the financial statements using the fair value method at the acquisition date. Accordingly, the non-controlling interest is measured at fair value, including its attributable share of the acquiree's net assets at fair value.

Fair value of the transaction:

	‘000 EUR
Share swap	35 820
Voluntary share buyback	3 167
Total consideration transferred	38 987
Fair value of net assets attributable to IPAS INDEXO (67.42%)	39 104
Gain on bargain purchase	117

As a result of the voluntary offer, as of 31 December 2025 IPAS INDEXO had acquired 30 643 883 shares of AS DelfinGroup, representing 67.42% of the total voting share capital of DelfinGroup. Of this, 62.06% was acquired through the share swap and 5.36% through cash settlement. At the time of completion of the transaction, DelfinGroup's market capitalisation was approximately EUR 59 million (total number of DelfinGroup shares 45 448 915 multiplied by their share price on 15 December EUR 1.30).

The gain on bargain purchase recognised in the amount of EUR 117 thousand reflects the difference between the consideration transferred by IPAS INDEXO and the fair value of the identifiable net assets of AS DelfinGroup attributable to the acquired ownership interest. This relatively small difference, representing approximately 0.3% of the transaction value, indicates that the transaction price did not materially differ from the assessed fair value of DelfinGroup. The combination was therefore executed at a price that appropriately reflected market participants' view of the company's value at the acquisition date. The bargain purchase gain primarily arose from the fact that a significant portion of the shares was acquired through a share swap, reflecting investor confidence in the future growth

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

prospects of the enlarged INDEXO Group and shareholders' willingness to participate in the Group's further development.

The gain on bargain purchase has been recognised in the Consolidated and Company Statements of Comprehensive Income under the line item "Gain on bargain purchase."

Cash flow analysis of the acquisition:

	‘000 EUR
Consideration transferred	(3 167)
Net cash acquired with the subsidiary	3 539
Net cash flow from acquisition	372

IPAS VAIRO

Following approval from the Bank of Latvia, on 19 September 2025 IPAS INDEXO acquired IPAS VAIRO ("VAIRO"), obtaining 100% of VAIRO's shares. The total consideration amounted to EUR 1.45 million, of which EUR 580 000 was paid in cash and EUR 870 000 was contributed as a noncash contribution to IPAS VAIRO. As a result of the transaction, IPAS VAIRO was included in the INDEXO Group, and VAIRO's pension investment plans continue to operate without changes.

IPAS VAIRO is an investment management company managing Latvian second pillar pension plans. At the acquisition date, 13 084 clients had entrusted more than EUR 89 million in pension assets to IPAS VAIRO.

The integration of VAIRO into the INDEXO Group represents a positive development for VAIRO's clients and for the Latvian financial sector. Through this transaction, INDEXO further strengthens its position as a locally owned financial services group serving Latvian residents.

The investment is consistent with INDEXO's strategy to expand its range of financial services and build a strong domestic capital financial group, reinforcing its position in the Latvian second pillar pension market.

Investment of IPAS INDEXO in subsidiary IPAS VAIRO:

	December 31 2025	December 31 2024
Investment in IPAS VAIRO, ‘000 EUR	1 450	-
Core business activity	Management of second pension pillar investment plans
Country of registration	Latvia
Registered address	Roberta Hirsa 1, Riga, Latvia, LV-1045
Ownership interest	100%	-

Control over IPAS VAIRO was obtained on 19 September 2025. For financial reporting purposes, a convenience date of 30 September 2025 was applied. This decision was made taking into account the practical considerations of transaction accounting, as well as the need to ensure completeness and comparability of financial information.

Carrying amount of the financial position of subsidiary IPAS VAIRO:

‘000 EUR

30 September 2025

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Cash and cash equivalents	222
Property, plant and equipment	3
Receivables from pension plans	30
Trade payables	(16)
Salaries payable	(12)
Taxes payable	(5)
Other liabilities	(6)
Net assets	216

Financial performance of subsidiary IPAS VAIRO:

‘000 EUR	31 December 2025
Revenue	333
Expenses	(753)
Profit / (loss)	(420)
Share of profit attributable to IPAS INDEXO*	61

Profit of IPAS VAIRO for the period from 1 October 2025 to 31 December 2025 attributable to the IPAS INDEXO consolidation group.

At the acquisition date, the fair value of the identifiable net assets was assessed. As of 30 September 2025, the net assets of IPAS VAIRO amounted to EUR 216 thousand, primarily consisting of cash and cash equivalents of EUR 222 thousand, which approximate fair value and were recognised at that amount. As IPAS VAIRO operates as an investment management company, a separate intangible asset, "Contractual customer agreements," was recognised at acquisition. These represent legally binding, transferable agreements with clients in respect of specific second pension pillar investment plans. The fair value of this intangible asset at the acquisition date amounted to EUR 1 234 thousand and was determined using a discounted cash flow method. The valuation was based on management assumptions regarding:

customer attrition (IPAS VAIRO historically had the highest attrition rate in the market; in the first-year attrition was assumed at approximately 20%, gradually declining in the long term to 10%, slightly above the market average),
retirement assumptions (a retirement model was developed; more than 80% of IPAS VAIRO clients are aged 45 or younger, therefore retirement age had a limited short-term impact, however it remains a critical variable for overall model accuracy),
contribution rates (5%, assuming no legislative changes; in Latvia, contributions to the state funded pension system second pension pillar are made as a fixed percentage of gross salary and allocated to individual pension investment accounts; starting from 2025, the contribution rate was reduced from 6% to 5%, with the difference reallocated to the first pension pillar solidarity system),
market growth (8% for equity markets and 2% for bond markets throughout the projection horizon),
salary growth (7% annually),
fee changes (fees were reduced as IPAS VAIRO pension plans will be integrated into IPAS INDEXO plans, thereby lowering maximum fee income potential; the Bank of Latvia applies a fee tier system where maximum allowable fees decline as assets under management increase;

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

given that IPAS INDEXO manages significantly larger assets than IPAS VAIRO, the applicable fee level aligns with INDEXO's fee structure and is projected to reach the minimum regulatory fee cap of 0.25% in the long term),

a 15% discount rate (managements internally determined required rate of return, consistent with the Group's weighted average cost of capital WACC, calculated using the standard WACC methodology incorporating the risk-free rate, beta coefficient, expected market return, Latvian equity risk premium, country risk premium and Latvian government risk premium).

Result of fair value recognition:

‘000 EUR	Acquisition value	Changes	Fair value
Cash and cash equivalents	222	-	222
Property, plant and equipment	3	-	3
Receivables from pension plans	30	-	30
Contractual customer agreements	0	1 234	1 234
Trade payables	(16)	-	(16)
Salaries payable	(12)	-	(12)
Taxes payable	(5)	-	(5)
Other liabilities	(6)	-	(6)
Net assets	216	1 234	1 450

Fair value of the transaction at the acquisition date (19 September 2025):

	‘000 EUR
Share swap	870
Share purchase	580
Total consideration transferred	1 450
Fair value of net assets attributable to IPAS INDEXO (100.00%)	1 450
Goodwill	0

Cash flow analysis of the acquisition:

	‘000 EUR
Consideration transferred	(580)
Net cash acquired with the subsidiary	222
Net cash flow from acquisition	(358)

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Property, Plant and Equipment

Group	Notes	Land plots and structures	Buildings	Other property, plant and equipment	Leasehold improvements	Advance payments for property, plant and equipment	Total
		EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Initial cost
31.12.2023		-	-	48	-	-	48
Additions in 2024		-	-	246	366	10	622
Revaluation		-	-	-	-		-
Write offs		-	-	-	-	-	-
Disposals		-	-	(1)	-	-	(1)
31.12.2024		-	-	293	366	10	669
Additions in 2025		-	-	252	62	-	314
Increase related to acquisition of new Group entities in 2025	18	99	100	1 614	1 016	55	2 884
Revaluation		-	-	-	-	-	-
Write offs		-	-	-	-	(10)	(10)
31.12.2025		99	100	2 159	1 444	55	3 857
Depreciation
31.12.2023		-	-	27	-	-	27
Depreciation for the year 2024		-	-	24	-	-	24
Write offs		-	-	-	-	-	-
31.12.2024		-	-	51	-	-	51
Depreciation for the year 2025		-	-	135	63	-	198
Increase related to acquisition of new Group entities in 2025	18	-	33	1 299	745		2 077
Write offs		-	-	-	-	-	-
31.12.2025		-	33	1 485	808	-	2 326
Carrying amount as of 31.12.2025		99	67	674	636	55	1 531
Carrying amount as of 31.12.2024		-	-	242	366	10	618

Lietošanas tiesību aktivu atsavināšana ir saistīta ar nomas ligumu pirmstermina izbeigšanu.

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Company	Notes	Land plots	Buildings and structures	Other property, plant and equipment	Leasehold improvements	Advance payments for property, plant and equipment
Initial cost	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
31.12.2023	-	-	28	-	-	28
Additions in 2024	-	-	27	-	-	27
Revaluation	-	-	-	-	-	-
Write offs	-	-	-	-	-	-
31.12.2024	-	-	55	-	-	55
Additions in 2025	-	-	5	-	-	5
Revaluation	-	-	-	-	-	-
Write offs	-	-	-	-	-	-
31.12.2025	-	-	60	-	-	60
Depreciation	-	-	-	-	-	-
31.12.2023	-	-	22	-	-	22
Depreciation for the year 2024	-	-	5	-	-	5
Write offs	-	-	-	-	-	-
31.12.2024	-	-	27	-	-	27
Depreciation for the year 2026	-	-	12	-	-	12
Write offs	-	-	-	-	-	-
31.12.2025	-	-	39	-	-	39
Carrying amount as of 31.12.2025	-	-	21	-	-	21
Carrying amount as of 31.12.2024	-	-	28	-	-	28

Visi pamatlīdzekļi tiek izmantoti Grupas un Sabiedribas pamatdarbības vajadzībām. Pamatlīdzekļi sastāv no mēbeļiem un tehniskā aprīkojuma.

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Nemateriālie ieguldījumi

Group	Notes	Patents, licences, trademarks and similar rights	Internally developed software*	Other intangible assets	Advance payments for intangible assets	Goodwill**	Total
		EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Initial cost		-	892	1111	72	-	2075
31.12.2023		-	1195	1780	5	-	2980
Additions in 2024		-	-	-	-	-	-
Write offs		-	2087	2891	77	-	5055
31.12.2024		-	804	2007	13	-	2824
Additions in 2025		-	2296	1664	42	128	4478
Increase related to acquisition of new Group entities in 2025	18	348	-	-	-	-	-
Write offs		-	-	-	-	-	-
31.12.2025		348	5187	6562	132	128	12357
Amortisation		-	-	110	-	-	110
31.12.2023		-	108	313	-	-	421
Amortisation expense for 2024		-	-	-	-	-	-
Write offs		-	108	423	-	-	531
31.12.2024		-	494	833	-	-	1327
Amortisation expense for 2025		-	-	-	-	-	-
Write offs		-	343	1264	735	-	2342
Increase related to acquisition of new Group entities in 2025		343	1264	735	-	-	4200
31.12.2025		343	1866	1991	-	-	3038
Measured at fair value	18	343	1670	1025	-	-	-
Carrying amount as of 31.12.2025		348	4991	5596	132	128	11195
Carrying amount as of 31.12.2024		-	1979	2468	77	-	4524
Company	Patents, licences, trademarks and similar rights	Internally developed software*	Other intangible assets	Advance payments for intangible assets	Goodwill **	Total
---	---	---	---	---	---	---
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Initial cost
31.12.2023	-	-	-	-	-	-
Additions in 2024	-	-	2	-	-	2
Write offs	-	-	-	-	-	-
31.12.2024	-	-	2	-	-	2
Additions in 2025	-	-	184	-	-	184
Write offs	-	-	-	-	-	-
31.12.2025	-	-	186	-	-	186
Amortisation
31.12.2023	-	-	-	-	-	-
Amortisation expense for 2024	-	-	-	-	-	-
Write offs	-	-	-	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

31.12.2024

Amortisation expense for 2025	-	-	4	-	-	4
Write offs	-	-	-	-	-	-
31.12.2025	-	-	4	-	-	4
Carrying amount as of 31.12.2025	-	-	182	-	-	182
Carrying amount as of 31.12.2024	-	-	2	-	-	2

*Software development and capitalisation

Certain IT employees are involved in developing technical solutions required for the Group's operations. To meet both corporate and client needs, new technical solutions and IT systems are regularly developed, and existing systems are continuously enhanced. As IT systems and technical solutions are developed internally by the Group's IT department, the related salary and payroll tax costs of those IT employees directly involved in development activities are capitalised. The list of capitalised employees is reviewed monthly, and the capitalised amount is determined based on the actual work performed. After initial recognition as an asset, development costs are carried at cost less accumulated amortisation and impairment losses. In 2025, capitalised salaries and related payroll taxes for such systems amounted to EUR 747 595 (2024: EUR 0). These systems are continuously improved and support loan issuance, credit portfolio growth, provision of financial services and sale of goods. Accordingly, future economic benefits are expected to be generated over an extended period, which supports their capitalisation.

Other intangible assets primarily consist of outsourced IT programming services related to the development and implementation of technical solutions for the Group's operations. The future economic benefits associated with these outsourced services are expected to flow to the Group over a longer period, thereby justifying capitalisation.

Goodwill

Goodwill arose within the Group in 2015 following the acquisition of SIA Rigas pilsētas lombards (currently SIA ViziaFinance) for EUR 880,000. At the acquisition date, the net assets of the acquired entity amounted to EUR 752,384, and the difference of EUR 127,616 was recognised as goodwill. Goodwill has an indefinite useful life and is not amortised. It is tested annually for impairment. During the reporting year, no indicators of impairment were identified and, accordingly, goodwill remains recognised in the statement of financial position at EUR 127,616.

21. Right-of-use assets

Right of use assets and lease liabilities

	Group Dec 2025 EUR'000	Group Dec 2024 EUR'000	Company Dec 2025 EUR'000	Company Dec 2024 EUR'000
Non-current investments
Right of use assets – premises	4 186	1 973	27	72
Right of use assets – vehicles	252	-	-	-
Total assets	4 438	1 973	27	72

Non-current payables

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Lease liabilities	3 800	2 042	30	77
Current payables	-	-	-	-
Lease liabilities	1 087	-	-	-
Total lease liabilities	4 887	2 042	30	77
	Group	Group	Group	Company
---	---	---	---	---
	Right of use assets – premises	Right of use assets – vehicles	Total right of use assets	Right of use assets – premises
	EUR'000	EUR'000	EUR'000	EUR'000
Lease assets
31.12.2023	38	-	38	38
Changes in right of use assets	2 128	-	2 128	90
Amortisation	(224)	-	(224)	(44)
Adjustments	31	-	31	(12)
31.12.2024	1 973	-	1 973	72
Changes in right of use assets	-	-	-	-
Amortisation	(412)	-	(412)	(41)
Adjustments	(61)	-	(61)	(4)
Increase related to acquisition of new Group entities in 2025	2 686	252	2 938	-
31.12.2025	4 186	252	4 438	27
	Group	Group	Group	Company
	Non-current	Current	Total	Non-current
Lease liabilities	EUR'000	EUR'000	EUR'000	EUR'000
31.12.2023	47	-	47	47
Changes during the reporting year	1 968	-	1 968	45
Adjustments	27	-	27	(15)
31.12.2024	2 042	-	2 042	77
Changes during the reporting year	(348)	-	(348)	(42)
Adjustments	(68)	-	(68)	(5)
Increase related to the acquisition of new Group entities in 2025	2 519	742	3 261	-
31.12.2025	4 145	742	4 887	30

The table presents the maturity analysis of lease payables, showing undiscounted lease payments to be made after the end of the reporting period.

	Group 31.12.2025 EUR'000	Group 31.12.2024 EUR'000	Company 31.12.2025 EUR'000	Company 31.12.2024 EUR'000
Less than 1 year	1 367	357	30	49
1 to 2 years	1 229	373	-	28
2 to 3 years	1 130	386	-	-
3 to 4 years	985	430	-	-
4 to 5 years	390	435	-	-
More than 5 years	564	-	-	-
Total undiscounted lease payments	5 665	1 981	30	77

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

The Group applies IFRS 16 to lease transactions. During the reporting period, the Group leased several office premises. AS INDEXO Banka’s lease agreement for office premises at Roberta Hirša 1 is effective from 15 July 2024 until 15 July 2029, and the related lease liability is calculated using a 6.4% discount rate. For the purpose of determining the discount rate, AS INDEXO Banka uses the intercompany lending rate published by the Bank of Latvia on the specific calculation date. The lease agreement includes annual indexation. Under the contract, the maximum indexation coefficient is 4%, but it cannot be lower than 2.5% per year. The indexation rate applied in 2025 was 2.9%.

During the reporting period, AS INDEXO Banka reassessed the lease term and currently does not consider it necessary to extend the contract. In determining the lease term, management considered all facts and circumstances that create an economic incentive to exercise or not exercise extension options. Extension options are included in the lease term only where there is reasonable certainty that the lease will be extended. Potential future cash outflows are not included in lease liabilities as there is no reasonable certainty that the lease will be extended.

The sales office lease agreement is valid until 31 July 2026, and the lease liability is calculated using a 6.36% discount rate.

Right of use assets are recognised in the statement of profit or loss within the following line items: Interest expense and similar charges (Note 6) and administrative expenses (Note 5).

AS DelfinGroup lease agreements for premises are concluded for periods ranging from two years to eighteen years and six months. Vehicle lease agreements are concluded for periods ranging from three to five years. The weighted average incremental borrowing rate for premises leases in 2025 was 8.4% (2024: 8.31%), while the weighted average incremental borrowing rate for vehicle leases in 2025 was 5.2% (2024: 6.85%).

The total amount of short-term lease and low value asset lease payments recognised as expenses in the statement of profit or loss as of 31 December 2025 was EUR 2 393 (31 December 2024: EUR 4 569). Total cash outflows for leases as of 31 December 2025 amounted to EUR 1 135 762 for the Group and EUR 984 791 for the Company. Variable lease payments are not included in the measurement of lease liabilities. Right of use assets are not subleased.

22. Gatavie ražojumi, krājumi un preces pārdošanai

	Group	Group	Company	Company
	31.12.2025	31.12.2024	31.12.2025	31.12.2024
	EUR'000	EUR'000	EUR'000	EUR'000
Goods held for sale	1 365	-	-	-
Gold articles	1 582	-	-	-
Payment card plastics inventory	55	68	-	-
	3 002	68	-	-

In 2025, inventory write downs to net realisable value amounted to EUR 304 (2024: EUR 0). The allowance for inventories to net realisable value as of 31 December 2025 amounted to EUR 549 (31 December 2024: EUR 0). The Group has registered commercial pledges, pledging its assets as collateral. See further information in Note 33.

23. Deferred tax assets

Group Group Company Company

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

In the fourth quarter of 2023, amendments to the Corporate Income Tax (CIT) law were introduced in Latvia, stipulating that a CIT advance payment must be made in the amount of 20% of the unadjusted accounting profit derived from lending operations in Latvia. The advance paid may be used to fully offset dividend distribution tax without any expiration date. As a result of these amendments, additional tax expenses for 2023 were recognised retrospectively.

Previously, CIT in Latvia was payable upon profit distribution rather than when profit was earned. The recent legislative changes require an advance payment of CIT on profits earned in Latvia from 2023 onwards.

These CIT advance payments may only be offset against future dividend distribution tax. Accordingly, the CIT advance amount, which is calculated based on profit and can generally be offset against future distribution tax, is recognised as an expense in the reporting period in which the profit is earned. No additional CIT expense will arise in respect of the Group's dividend distributions from retained earnings generated under the previous tax regime (prior to 2018).

The deferred tax asset relates to temporary differences and tax losses carried forward from the operations of DelfinGroup LT UAB. There is no statutory expiry period for prior year tax losses; however, the Group expects to utilise the deferred tax asset within the next five years.

24. Prepayments

	Dec 2025		Dec 2024
	Group	Group	Group	Group
	EUR'000	EUR'000	EUR'000	EUR'000
Maintenance costs, IT, Software licences	770	691	-	-
Health insurance	45	36	15	36
Card system access fee for the reporting year	95	-	-	-
Marketing expenses	-	13	-	-
Customer acquisition and product growth activities	97	-	-	-
Subscription fees	-	10	-	-
Other	436	2	29	2
Total	1443	752	44	38

25. Bonds issued

Group Group Company Company

31.12.2025 31.12.2024 31.12.2025 31.12.2024

EUR'000 EUR'000 EUR'000 EUR'000

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Non-current borrowings against bonds, total	46 674	-	-	-
Borrowing against bonds	24 071	-	-	-
Accrued interest	120	-	-	-
Current borrowings against bonds, total	24 191	-	-	-
Borrowings against bonds, total	70 745	-	-	-
Accrued interest, total	120	-	-	-
Borrowings against bonds, net	70 865	-	-	-

As of 31 December 2025, the Company has bonds outstanding (ISIN LV0000802718) in the amount of EUR 10 995 000, registered with the Latvian Central Depository, issued in a private placement on 1 August 2023 under the following terms - number of financial instruments: 10 995, with a nominal value of EUR 1 000 each. The coupon rate - 3M EURIBOR + 9.00%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 February 2026. On 3 October 2023, trading of the bonds commenced on the NASDAQ Baltic First North Alternative market debt securities list. The bonds are unsecured.

As of 31 December 2025, the Company has bonds outstanding (ISIN LV0000860146) in the amount of EUR 15 000 000, registered with the Latvian Central Depository, issued in a private placement on 3 October 2023 under the following terms - number of financial instruments: 15 000, with a nominal value of EUR 1 000 each. The coupon rate - 3M EURIBOR + 9.00%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 July 2028. On 7 November 2024, trading of the bonds commenced on the NASDAQ Baltic First North Alternative market debt securities list. The bonds are unsecured.

As of 31 December 2025, the Company has bonds outstanding (ISIN LV0000803914) in the amount of EUR 15 000 000, registered with the Latvian Central Depository, issued in a public offering on 25 September 2024 under the following terms: number of financial instruments: 150 000, with a nominal value of EUR 100 each. The coupon rate is 10.00%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 100 per bond) is 25 September 2028. On 25 September 2024, trading of the bonds commenced on the NASDAQ Baltic regulated market. The bonds are unsecured.

As of 31 December 2025, the Company has bonds outstanding (ISIN LV0000106649) in the amount of EUR 22 085 000 (total issue size up to EUR 25 000 000), registered with the Latvian Central Depository, issued in a private placement on 3 September 2025 under the following terms: number of financial instruments: 25 000, with a nominal value of EUR 1 000 each. The coupon rate is 9.50%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 September 2027. The bonds are unsecured.

As of 31 December 2025, the Company has subordinated bonds outstanding (ISIN LV0000802700) in the amount of EUR 5 000 000, registered with the Latvian Central Depository, issued in a private placement on 24 July 2023 under the following terms: number of financial instruments: 5 000, with a nominal value of EUR 1 000 each. The coupon rate is 3M EURIBOR + 11.50%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 July 2028. On 7 November 2024, trading of the bonds commenced on the NASDAQ Baltic First North Alternative

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

market debt securities list. The bonds are unsecured.

As of 31 December 2025, the Company has subordinated bonds outstanding (ISIN LV0000870145) in the amount of EUR 5 000 000, registered with the Latvian Central Depository, issued in a private placement on 29 May 2024 under the following terms: number of financial instruments: 5 000, with a nominal value of EUR 1 000 each. The coupon rate is 3M EURIBOR + 11.00%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 May 2029. On 15 October 2025, trading of the bonds commenced on the NASDAQ Baltic First North Alternative market debt securities list. The bonds are unsecured.

As of 31 December 2025, the Company has subordinated bonds outstanding (ISIN LV0000106631) in the amount of EUR 0 (total issue size up to EUR 5 000 000), registered with the Latvian Central Depository, issued in a private placement on 3 September 2025 under the following terms: number of financial instruments: 5 000, with a nominal value of EUR 1 000 each. The coupon rate is 11.50%, coupon is paid monthly on the 25th. The final maturity date of the principal (EUR 1 000 per bond) is 25 September 2030. The bonds are unsecured.

As of 31 December 2025, the Group has complied with all covenants included in the Bond issue terms.

In September 2025, DelfinGroup registered a new unsecured bond issue in the amount of EUR 25 000 000. The purpose of the issue was to refinance existing financial liabilities, including existing bonds (ISIN LV0000802718) and a loan from Signet Bank, as well as to finance further growth of the loan portfolio. The bonds were issued with ISIN LV0000106649, nominal value per bond EUR 1 000, coupon rate 9.5%, coupon payment frequency monthly, and maturity date 25 September 2027. The bonds were issued in a private placement with a minimum subscription amount of EUR 100 000.

In connection with the issuance of bonds LV0000106649, holders of the existing bonds ISIN LV0000802718 were offered a bond exchange. As a result of the exchange offer, existing investors subscribed to the new LV0000106649 bonds in the total amount of EUR 4 005 000. Accordingly, the issue size of bonds LV0000802718 was reduced to EUR 10 995 000. The remaining bonds LV0000802718 are planned to be repaid on their maturity date on 25 February 2026.

In 2025, DelfinGroup also registered new subordinated bonds in the amount of EUR 5 000 000. The bonds are offered in a private placement with a minimum investment amount of EUR 100 000. The coupon rate of the bonds is set at 11.5%, with a term until 25 September 2030. As of 31 December 2025, all bonds are held in the placement account (liability balance EUR 0) and will be offered to investors if the Group sees the need to sell these bonds.

On 15 October, DelfinGroup commenced listing of subordinated bonds ISIN LV0000870145 on the Nasdaq First North Alternative market. These bonds were previously available only to a limited number of investors within a private placement but are now available for free trading. By offering subordinated bonds on the exchange, DelfinGroup provides greater liquidity to existing and potential investors. Subordinated bonds (ISIN: LV0000870145) have been issued in the amount of EUR 5 000 000 with an interest rate of 11.0% + 3M EURIBOR, and their nominal value is EUR 1 000 per bond. The maturity date of these bonds is 25 May 2029.

ISIN	Nominal value of Maturity	Coupon	Listing

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

To ensure funding for the development of the loan portfolio, DelfinGroup continued to use the Mintos investment platform, through which investors from more than one hundred countries invested in loans issued by the Group. DelfinGroup has been attracting funding through Mintos since 2016, and during this period DelfinGroup has succeeded in attracting investments in excess of EUR 400 million. As a result, DelfinGroup's outstanding liabilities on the Mintos platform as of 31 December 2025 amounted to EUR 30.1 million.

The Group has developed a strategic plan to issue new bonds in order to refinance current liabilities that have reached their repayment term, to cooperate with credit institutions to obtain financing from them, as well as to continue placing loans on the Mintos P2P platform. This approach will allow the Group to settle outstanding debt using proceeds obtained from the sale of these newly issued bonds, borrowings received from credit institutions, and funding attracted on the Mintos platform.

26. Borrowings from credit institutions

	Group 31.12.2025 EUR'000	Group 31.12.2024 EUR'000	Company 31.12.2025 EUR'000	Company 31.12.2024 EUR'000
Non-current borrowings from credit institutions	12 500	-	-	-
Non-current borrowings from credit institutions, total	12 500	-	-	-
Current borrowings from credit institutions	11 000	-	-	-
Current borrowings from credit institutions, total	11 000	-	-	-
Borrowings from credit institutions, total	23 500	-	-	-

As of 31 December 2025, the Parent Company of the Group has received borrowings from credit institutions with fixed interest rates, maturing in 2028, and with variable interest rates (base interest rate 3M and 6M EURIBOR plus a fixed margin), maturing in 2026 and 2027.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

To ensure fulfilment of its obligations, the Group has registered commercial pledges, see Note 33. As of 31 December 2025, the Group has complied with the terms of the loan agreements.

27. Other borrowings

	Group 31.12.2025 EUR'000	Group 31.12.2024 EUR'000	Company 31.12.2025 EUR'000	Company 31.12.2024 EUR'000
Other non-current borrowings	17 490	-	-	-
Other non-current borrowings, total	17 490	-	-	-
Other current borrowings	11 334	-	-	-
Other current borrowings, total	11 334	-	-	-
Other borrowings, total	28 824	-	-	-

The borrowing amount consists of loans received from the European Union registered crowdfunding platform Mintos. The weighted average annual interest rate as of 31 December 2025 is 8.7%. In accordance with the loan agreement with AS Mintos Marketplace, loan repayment terms are aligned with the specific terms of the loan agreements that the Group has concluded with its customers. To ensure fulfilment of its obligations, the Group has registered a commercial pledge, see Note 33. As of 31 December 2025, the Group has complied with the terms of the loan agreements.

28. Deposits from clients

A current account is the primary account opened following acceptance of AS INDEXO Banka's terms and conditions during the client assessment (onboarding) process.

A savings account is a deposit for an indefinite period on which interest is paid. Funds can be deposited into and withdrawn from the savings account without restrictions or prior notice.

A term deposit is a deposit for a fixed period on which interest is paid and which cannot be supplemented.

In accordance with the deposit terms:

	Dec 2025	Dec 2024
	EUR'000	EUR'000
Current account (incl. accrued interests)	13 666	5 008
Savings vaults	33 123	16 585
Term deposits (incl. accrued interests):	25 817	11 505
to 6 months	-	-
from 6 months to 1 year	18 771	10 389
from 1 year to 2 years	1 545	134
from 2 years to 5 years	5 501	308
Total deposits:	72 606	32 423

By geographical region:

	Dec 2025	Dec 2024
	EUR'000	EUR'000
Latvia	72 410	32 295
European Economic Area	196	128
Total deposits:	72 606	32 423

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Current accounts:	Dec 2025	Dec 2024
Residents	EUR'000	EUR'000
Private individuals	13 495	4 954
Bank’s employees	143	43
Total:	13 638	4 997
	Dec 2025	Dec 2024
Non-residents	EUR'000	EUR'000
Private individuals	29	10
Total:	29	10

Savings vaults:

	Dec 2025	Dec 2024
Residents	EUR'000	EUR'000
Private individuals	32 494	16 201
Bank’s employees	577	285
Total:	33 071	16 486
	Dec 2025	Dec 2024
---	---	---
Non-residents	EUR'000	EUR'000
Private individuals	52	99
Total:	52	99

Term deposits:

	Dec 2025	Dec 2024
Residents	EUR'000	EUR'000
Private individuals	25 387	10 599
Juridiskās personas (IPAS INDEXO)	-	-
Bank’s employees	314	213
Total:	25 701	10 812
	Dec 2025	Dec 2024
Non-residents	EUR'000	EUR'000
Private individuals	116	18
Total:	116	18

Interest rates applied to the deposits of the Bank’s employees do not differ from interest rates on deposits from other customers.

Subordinated borrowings

	Dec 2025	Dec 2024
	EUR'000	EUR'000
Subordinated borrowings
Private individuals	611	-
Legal entities	1 191	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Subordinated borrowings, total 1 802

Subordinated borrowings include loans with a maturity at initial recognition of not less than five years and whose early repayment is possible only in the event of the Bank's liquidation or upon receiving permission from the Bank of Latvia. If the Bank's operations are discontinued, subordinated borrowings are subordinated to the claims of the Bank's depositors and other creditors. In 2024, the Group had no subordinated borrowings.

Concentration of subordinated borrowings

As of 31 December 2025, the Bank had three client subordinated loan agreements, the outstanding balances of which exceeded 10% of the total borrowing amount and which are presented in the table below.

Client	Currency	Contract amount EUR '000	Interest rate	Contract start date	Contract term	Carrying amount EUR '000
Legal entity – resident 1	EUR	200	11%	23.12.2025	23.12.2032	200
Legal entity – resident 2	EUR	200	11%	30.12.2025	23.12.2032	200
Legal entity – resident 3	EUR	400	11%	24.12.2025	23.12.2032	400

30. Other liabilities

	Dec 2025	Dec 2024	Dec 2025	Dec 2024
	Group	Group	Company	Company
	EUR'00	EUR'00	EUR'000	EUR'000
	0	0
Other financial liabilities
Settlements for financial services	324	501	24	126
Lease liabilities	4 904	2 042	30	77
Settlements for IT infrastructure development	416	138	-	-
Obligations related to pension plans	505	-	-	-
Other financial liabilities, total	6 149	2 681	54	203
Other non-financial liabilities
Accrued expenses	1 583	-	2	-
Temporary liabilities and cash in transit	1 566	389	171	154
Accrued liabilities for unused vacations	705	222	89	103
Other liabilities	249	403	110	62
Other non-financial liabilities, total	4 103	1 014	372	319
Other liabilities, total	10 252	3 695	426	522

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

31. Share Capital

The registered and fully paid share capital of IPAS "Indexo" as of 31 December 2024 amounted to EUR 9 997 448 (as of 31 December 2025: EUR 4 760 549) and consisted of 9 997 448 registered shares with a nominal value of EUR 1 (one euro) per share, each carrying one voting right. In 2025, the Company's share capital was increased by EUR 19 310 (in 2024: EUR 43 149) following the exercise of employee options (see Note 5), by EUR 162 784 (in 2024: EUR 921 993) following a private placement, by EUR 1 105 041 following a public offering (in 2024: EUR 0), by EUR 85 714 as a contribution in kind, and by EUR 3 864 050 (in 2024: EUR 0) as a share exchange transaction.

	Share capital	Number of shares	Paid-in capital
Shareholders	EUR	%	EUR
Resident legal entities with shareholding above 10% of share capital	2 811 859	28.13%	2 811 859
Resident legal entities with shareholding up to 10% of share capital	3 352 457	33.53%	3 352 457
Non-resident legal entities with shareholding up to 10% of share capital	1 440 696	14.41%	1 440 696
Resident natural persons with shareholding up to 10% of share capital	1 973 247	19.74%	1 973 247
Non-resident natural persons with shareholding up to 10% of share capital	419 189	4.19%	419 189
Total	9 997 448	100.00%	9 997 448

Number of shares directly held, and number of share options granted to members of the Company's Management Board and Supervisory Board as at the end of the reporting year.

	Position	Number of shares held directly	Number of share options	Number of unexercised share options
Henrik Karmo	Chairman of the Management Board	100 000	100 000	-
Artūrs Roze	Member of the Management Board	6 623	5 500	8 000
Marija Cernoštana	Member of the Management Board	560	500	5 000
Board, total		107 183	106 000	13 000
Valdis Vancovičs	Chairman of the Supervisory Board	63 743	-	-
Svens Dinsdorfs	Deputy Chairman of the Supervisory Board	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

Renāts Lokomots	Member of the Supervisory Board	-	-	-
Ramona Miglāne	Member of the Supervisory Board	-	-	-
Mārtiņš Jaunarājs	Member of the Supervisory Board	-	-	-
Supervisory board, total		63 743	-	-

32. Transactions with related parties

Related parties are shareholders who have significant influence in the Group and the Company, entities controlled by them, members of the Supervisory Board and Management Board, and other related parties, i.e. key management personnel, their close family members and entities controlled by them, as well as related entities. During the period from 1 January 2025 to 31 December 2025, all transactions with related parties were carried out in accordance with arm's length principles. Related parties are participants of the Group, members of the Management Board and Supervisory Board, their close family members and entities in which the persons have control or significant influence.

| Subsidiary – AS "INDEXO Banka" | Transaction description | Dec 2025
Group | Dec 2024
Group | Dec 2025
Company | Dec 2024
Company |
| --- | --- | --- | --- | --- | --- |
| | | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
| Statement of financial position balance | Receivables | 58 | - | 7 | 1 |
| Statement of financial position balance | Accrued interest | 8 | - | 8 | 5 |
| Statement of financial position balance | Short-term deposit with INDEXO Banka AS | 1 171 | - | 1 171 | 670 |
| Statement of financial position balance | Payables | 19 | - | - | - |
| Comprehensive income | Interest income | 18 | - | 18 | - |
| Comprehensive expenses | Interest expense | (18) | - | - | - |
| Comprehensive income | Other income | 14 | - | 7 | - |
| Comprehensive expenses | Services received | (67) | - | (60) | - |
| Comprehensive income | Services received | 50 | - | - | - |
| Subsidiary – AS "Indexo Atklātais Pensiju Fonds" | Transaction description | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
| Statement of financial position balance | Receivables | - | - | - | - |
| Comprehensive income | Services provided | - | - | - | - |
| Associated company - SIA Provendi asset management AIFP | Transaction description | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
| Statement of financial position balance | Loan to associate | 68 | 79 | 68 | 79 |
| Statement of financial position balance | Credit loss allowances | (2) | (5) | (2) | (5) |

INDEXO
105

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Statement of financial position balance	Accrued interest	-	-	-	-
Comprehensive income	Interest income	8	4	8	4
Members of the Management Board and Supervisory Board	Transaction description	EUR'000	EUR'000	EUR'000	EUR'000
Comprehensive income	Remuneration for work	857	763	202	161
Comprehensive income	Mandatory state social insurance contributions	195	180	48	33

33. Issued guarantees, pledges and contingent liabilities

The Group has registered commercial pledges by pledging its assets and receivables up to a maximum amount of EUR 47 million as collateral to SIA Mintos Finance No. 20 and AS Mintos Marketplace to secure loans placed on the Mintos P2P platform.

On 29 November 2023, the Company registered a commercial pledge by pledging its assets as collateral to Multitude Bank p.l.c. up to a maximum amount of EUR 15 million. The Company's subsidiary SIA ViziaFinance signed a guarantee agreement on 13 November 2023, undertaking to be liable to Multitude Bank p.l.c. for the Company's obligations. As at the date of publication of the report, the pledge has been released.

On 14 December 2023, 20 February 2024, 14 May, 26 September and 17 July, the Company signed an agreement with Multitude Bank p.l.c. regarding the pledging of a bank account and a balance in the amount of EUR 999 900 as part of the collateral. As at the date of publication of the report, the pledged funds have been released from the pledge.

On 24 October 2024, the Company registered a commercial pledge by pledging receivables as collateral to AS "Citadele banka" up to a maximum amount of EUR 6.37 million. The Company's subsidiary SIA ViziaFinance signed a guarantee agreement on 16 October 2024, undertaking to be liable to AS "Citadele banka" for the Company's obligations.

On 16 April 2025, the Company and SIA ViziaFinance registered a commercial pledge by pledging their assets as collateral to Multitude Bank p.l.c. up to a maximum amount of EUR 17 million. SIA ViziaFinance signed a guarantee agreement on 7 April 2025, undertaking to be liable to Multitude Bank p.l.c. for the Company's obligations.

On 29 December 2025, the Company and SIA ViziaFinance signed a commercial pledge agreement with the purpose of pledging their assets as collateral to Multitude Bank p.l.c. up to a maximum amount of EUR 17.25 million. SIA ViziaFinance and UAB DelfinGroup LT signed a guarantee agreement on 29 December 2025, undertaking to be liable to Multitude Bank p.l.c. for the Company's obligations.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

As of 31 December 2025, the amount of secured liabilities is EUR 52 268 762 (31 December 2024: EUR 41 689 242).

According to the results of the voluntary share buyback offer for AS DelfinGroup shares expressed by IPAS INDEXO, IPAS INDEXO became the owner of 67.42% of AS DelfinGroup shares. As a result, in accordance with the terms of bonds ISIN LV0000860146 and LV0000803914, the change in shareholder structure transaction qualifies as a Change of Control Put Event. In line with the terms of the above-mentioned issues, each bondholder of the respective issue has the right to exercise the put option. The total amount of both issues is EUR 30 000 000. As of 31 December 2025, bondholders can apply for the put option. The application period is valid until 20 January 2026. Settlements for the put option are planned on 6 March 2026.

In 2025, the Consumer Rights Protection Centre (hereinafter – PTAC) initiated one administrative case against SIA ViziaFinance and one case against AS DelfinGroup. Regarding SIA ViziaFinance, it is related to the review of the consumer creditworthiness assessment method “income – expenditure” in connection with PTAC’s intention to improve the application of this method across the industry. In parallel with the administrative case, PTAC is updating the existing guidelines on the assessment of consumers’ ability to repay credit. SIA ViziaFinance has agreed to several PTAC invitations related to improving the application of the method, while discussions between SIA ViziaFinance and PTAC are ongoing regarding certain invitations.

The case initiated against AS DelfinGroup relates to the assessment of the borrower’s creditworthiness and its compliance with applicable regulatory requirements. In this case, AS DelfinGroup has provided its responses to PTAC, and on a voluntary basis AS DelfinGroup has commenced the use of all credit information bureaus operating in Latvia as of 30 September 2025 in relation to obtaining information on consumers’ credit liabilities.

PTAC may impose a fine on AS DelfinGroup in accordance with Section 15.2, Paragraph 11 of the Unfair Commercial Practices Prohibition Law, which sets out the maximum applicable amount of the fine. However, the Group’s management does not acknowledge that regulatory requirements have been breached and has obtained a legal opinion from one of the largest law firms in Latvia supporting its position. As at the date of signing these financial statements, PTAC has not adopted final decisions. Management does not believe that the outcome of these cases will require material adjustments to the financial statements.

AS INDEXO Banka has undertaken commitments to issue loans. Such commitments represent loans that have already been approved but not yet disbursed.

	Dec 2025	Dec 2024
Contractual amount	EUR'000	EUR'000
Mortgage loans	2 400	-
Off-balance sheet commitments, total	2 400	-
Allowances for off-balance sheet commitments	-	-

INDEXO

IPAS "Indexo" Consolidated Annual
Report for 2025 and the independent
auditor's report
(Translation of the Latvian original)

34. Maturity analysis of financial liabilities

The table presents the maturity analysis of the Group's and the Company's financial liabilities, prepared based on the remaining period from the end of the reporting period to the contractual maturity date.

Maturity structure analysis of undiscounted financial liabilities:

Group	Total	On demand	Up to 3 months	From 3 months to 1 year	From 1 to 5 years	Carrying amount
31.12.2025., EUR
Financial liabilities
Borrowings against bonds	(85 084)	-	(10 912)	(20 318)	(53 855)	70 865
Borrowings from credit institutions	(29 954)	-	(372)	(1 860)	(27 721)	23 500
Other borrowings	(34 961)	-	(1 940)	(8 958)	(24 063)	28 824
Customer deposits	(73 786)	(46 792)	(2 802)	(17 027)	(7 165)	72 606
Subordinated loans	(1 802)	-	-	(12)	(1 790)	1 802
Lease liabilities	(5 071)	-	(339)	(998)	(3 734)	4 887
Trade and other payables	(1 707)	(1 707)	-	-	-	1 707
Total financial liabilities	(232 365)	(48 499)	(16 365)	(49 173)	(118 328)

*Security deposit

Group	Total	On demand	Up to 1 month	From 1 to 3 months	From 3 months to 1 year	From 1 to 5 years
31.12.2024., EUR
Financial liabilities
Customer deposits	(32 761)	(21 592)	(26)	(51)	(10 620)	(472)
Accrued liabilities	(124)	-	(124)	-	-	-
Trade and other payables	(430)	-	(430)	-	-	-
Total financial liabilities	(33 314)	(21 592)	(579)	(51)	(10 620)	(472)
Company	Total	On demand	Up to 1 month	From 1 to 3 months	From 3 months to 1 year	From 1 to 5 years
---	---	---	---	---	---	---
31.12.2025., EUR
Financial liabilities	(24)	-	(24)	-	-	-
Settlements for financial services	(24)	-	(24)	-	-	-
Total financial liabilities	-	-	-	-	-	-
Company	Total	On demand	Up to 1 month	From 1 to 3 months	From 3 months to 1 year	From 1 to 5 years
---	---	---	---	---	---	---
31.12.2024., EUR
Financial liabilities
Settlements for financial services	(102)	-	(102)	-	-	-
Total financial liabilities	(102)	-	(102)	-	-	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Remuneration to the sworn auditor's commercial company

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR'000	EUR'000	EUR'000	EUR'000
Audit of financial statements	113	125	43	41
Non-audit assurance services	8	18	-	7
Total	121	143	43	48

For the reporting year, in addition to the audit required by law, BDO provided the following non-audit services to the Group and the Company:

A reasonable assurance engagement on the consolidated financial statements of IPAS "INDEXO" for 2025, prepared in accordance with the European Single Electronic Reporting Format (ESEF) requirements.

A limited assurance engagement on compliance with the criteria and requirements set out in Sections 24.1 and 24.2 of the Law on Private Pension Funds regarding the calculation and accounting of accumulated supplementary pension capital for participants and pension plans of "Indexo Atklātais Pensiju Fonds" AS for the year ended 31 December 2025.

A limited assurance engagement on the segregation of funds of AS IPAS INDEXO and its clients and compliance with the requirements of the Deposit Guarantee Law of AS INDEXO Banka regarding the preparation of reports on guaranteed deposits and contributions to the deposit guarantee fund.

A limited assurance engagement on the preparation of pro forma financial information in the AS IPAS INDEXO document on exemption from the obligation to publish a prospectus.

Earnings per share

	Jan – Dec 2025	Jan – Dec 2024	Jan – Dec 2025	Jan – Dec 2024
	Group	Group	Company	Company
	EUR	EUR	EUR	EUR
Basic earnings per share
Profit/(loss) from continuing operations attributable to the ordinary equity holders of the Company	(7 852)	(5 382)	2 144	873
Total basic earnings per share attributable to the ordinary equity holders of the Company	(1.42)	(1.18)	0.39	0.19
Diluted earnings per share
Profit/(loss) from continuing operations attributable to the ordinary equity holders of the Company	(7 852)	(5 382)	2 144	873
Total basic earnings per share attributable to the ordinary equity holders of the Company	(1.41)	(1.18)	0.39	0.19

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Weighted average number of shares used as denominator

Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share	5 548	4 546	5 548	4 546
Adjustments for calculation of diluted earnings per share:
Options	19	89	19	89
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share	5 563	4 635	5 563	4 635

Options granted to employees under the option schemes are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share, if the required TSR hurdles would have been met based on the Company's performance up to the reporting date, and to the extent to which they are dilutive.

37. Fair Value

Financial assets and liabilities according to the fair value hierarchy of valuation inputs (Group):

31.12.2025.	Level 1:	Level 2:	Level 3:	Total fair value	Total carrying amount
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Financial assets
Cash and cash equivalents	20 291	-	-	20 291	20 291
Loans and receivables from non-banks			183 336	183 336	216 115
Debt securities	-	5 898	-	5 898	5 898
Loans to associates	-	-	66	66	66
Financial assets measured at fair value through profit or loss	-	-	8 026	8 026	8 026
Other assets	-	-	2 751	2 751	2 751
Investments in equity securities	-	-	62	62	62
Financial liabilities
Customer deposits	-	74 408	-	74 408	74 408
Borrowings against bonds	-	-	73 016	73 016	70 864
Borrowings from credit institutions	-	-	23 465	23 465	23 500
Accrued liabilities	-	-	3 666	3 666	3 666
Trade and other payables	-	-	1 707	1 707	1 707

Financial assets and liabilities according to the fair value hierarchy of valuation inputs (Group):

31.12.2024.	Level 1:	Level 2:	Level 3:	Total fair value	Total carrying amount
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Financial assets
Loans to subsidiaries and households	36 647	-	-	36 647	36 647
Receivables	-	-	988	988	988
Other assets	-	-	461	461	461
Loans to associates	-	-	535	535	535
Investments in equity securities	-	-	74	74	74
Loans to subsidiaries and households	-	-	62	62	62

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Financial liabilities

Customer deposits	-	32 423	-	32 42	32 423
Accrued liabilities	-	-	363	363	363
Trade and other payables	-	430	-	430	430

Financial assets and liabilities according to the fair value hierarchy of valuation inputs (Company):

31.12.2025.	Level 1:	Level 2:	Level 3:	Total fair value	Total carrying amount
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Financial assets
Cash and cash equivalents	-	1933	-	1933	1933
Receivables	-	-	461	461	461
Other assets	-	-	505	505	505
Loans to associates	-	-	66	66	66
Investments in equity securities	-	-	62	62	62
Financial liabilities
Customer deposits	-	-	-	-	-
Payables and accrued liabilities	-	-	363	363	363
Trade and other payables	-	33	-	33	33
31.12.2024.	Level 1:	Level 2:	Level 3:	Total fair value	Total carrying amount
---	---	---	---	---	---
Financial assets	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Cash and cash equivalents	-	1468	-	1468	1468
Receivables	-	-	452	452	452
Other assets	-	-	35	35	35
Loans to associates			74	74	74
Investments in equity securities	-	-	62	62	62
Financial liabilities	-	-	-	-	-
Payables and accrued liabilities	-	-	424	424	424
Trade and other payables	-	21	-	2	2

During 2025 and 2024, there were no reclassifications between levels of the fair value hierarchy.

Cash and cash equivalents comprise euro currency cash and deposits with the Bank of Latvia, the carrying amount of which approximates fair value.

Other financial assets consist of card security deposits, cash in transit and office lease security deposits; therefore, their carrying amount equals fair value.

Loans and receivables from customers are financial assets measured using the discounted cash flow method. All rates correspond to average industry rates. The methodology for determining fair value is described in the principal accounting policies.

Unobservable inputs used in the fair value measurement

The table provides information on significant unobservable inputs used as of 31 December 2025 and 2024 in measuring financial instruments classified within the fair value hierarchy as level 3.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Type of financial instrument	Fair value as of 31 December	Valuation technique	Significant unobservable inputs	Key unobservable inputs	Sensitivity of the fair value measurement to unobservable inputs
Pawn loans	Group: 2025: 8 026 (2024: 0)	Discounted cash flow	Sales costs	2025: 8% - 28% (2024: 0%)	A significant increase in any of these inputs individually would result in a lower fair value.
			Discount rate	2025: 9%-190% (2024: 0%)
			Expected cash flow return	2025: 27% - 31% (2024: 0%)
			Maximum markup	2025: 65%-85% (2024: 0%)

Significant unobservable inputs are obtained as follows:

Sales costs and markup are derived from historical trends. Sales costs reflect expenses related to the sale of repossessed collateral and include salaries, branch expenses, marketing and other costs. The sales markup cap sets limits on profit amounts charged from sales.
Expected cash flows are derived from the company's business plan and by comparing historical planned results with actual results.

Impact of unobservable inputs on the fair value measurement

Although the Group believes that its fair value estimates are appropriate, the use of different methodologies or assumptions could lead to different fair value measurements. Changing one or more of the assumptions used in relation to Level 3 fair value measurements to reasonably possible alternative assumptions would result in the following impact.

Impact on profit or loss

Favourable (Unfavourable)

31 December 2025	Pawn loans	727 461	(790 159)
31 December 2024	Pawn loans	-	-

The favourable and unfavourable impact from the use of reasonably possible alternative assumptions for the valuation of pawn loans has been calculated by recalibrating the model values using unobservable inputs – costs of sale, discount rate, expected recovery and maximum markup.

As of 31 December 2025, the key inputs and assumptions used in the models included:

average monthly discount rate of 15.88% (with reasonably possible alternative assumptions of 14.88% and 16.88%) (in 2024: 15.7%, 14.7% and 16.7%, respectively).
cumulative average expected return of 29.31% (with reasonably possible alternative assumptions of 31.31% and 27.31%) (in 2024: 29.6%, 31.6% and 27.6%, respectively).
average maximum markup of 85% (with reasonably possible alternative assumptions of 65% and 105%) (in 2024: 85%, 65% and 105%, respectively).
average sales costs of 18.4% (with reasonably possible alternative assumptions of 8% and 28%) (in 2024: 18%, 8% and 28%, respectively).

Collateral of pawn loans

Pawn loans issued by the Group are secured by the borrower's pledged collateral, which limits the

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Group's claim rights to the cash flows of the underlying collateral (non-recourse loans). The table below presents the main types of collateral held against pawn loans:

	2025	2024
Goods	3 736 679	-
Gold	4 288 516	-
Total	8 025 195	-

In the following tables, pawn loan credit exposures are presented by loan-to-value (LTV) ratio ranges. LTV is calculated as the ratio of the gross loan amount to the value of the collateral. The collateral valuation does not include any adjustments related to the repossession and sale of the collateral. The value of goods collateral is determined based on the collateral value at the time the loan is issued.

LTV rādītājs	2025	2024
Goods
Less than 50%	127 889	-
51–70%	1 469 821	-
71–90%	1 608 135	-
91–100%	360 179	-
Greater than 100%	170 655	-
Total	3 736 679	-

The value of gold collateral is determined based on the market price of gold on the loan disbursement date, and the loan value may be up to 95% of the market price of gold.

38. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the person or the Group that allocates resources to and assesses the performance of the operating segments of the Group. The Management Board of the Group's parent company IPAS "Indexo" is the chief operating decision maker. The Group distinguishes two separate segments (i) asset management, (ii) banking activities and (iii) non-bank lending. Operating activities of both segments are in Latvia. Segment results reflect the operating results of each respective entity or group of entities.

1) Asset management (IPAS INDEXO, IPAS VAIRO, IAPF)

Includes management of the assets of state-funded pension scheme investment plans and private pension scheme investment plans.

2) Bank development (AS INDEXO Banka)

Includes all the revenues, costs and main balance sheet items for the Banking activities.

3) Non-bank lending (AS DelfinGroup)

Includes all the revenues, costs and main balance sheet items for the non-bank lending activities.

Segment results (2025)

‘000 EUR	Asset management	Bank development	Non-bank lending
Commission income	5 114	494	-
Commission expense	-	(563)	-
Interest income	46	2 806	-
Interest expense	-	(1 416)	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Other income	784	491	-
Administrative and other expenses allocation	(2 065)	(11 053)	-
Operating income before client acquisition and other business project expenses	3 879	(9 241)	-
Client acquisition cost allocation	(1 552)	-	-
Income after client acquisition and other business project expenses	2 327	(9 241)	-
Non-cash personnel option expenses	(145)	-	-
Corporate income tax	(3)	(4)	-
Comprehensive profit / (losses) for the reporting period	2 179	(9 245)	-

Segment assets and liabilities (2025)

Assets, '000 EUR	Asset management	Bank development	Non-bank lending
Cash and cash equivalents	2 895	19 735	4 540
Loans to customers	66	54 929	144 394
Investments	68 837	3 397	2 501
Contract acquisition costs	1 526	-	-
Intangible assets, property, plant and equipment and right-of-use assets	275	7 978	5 881
Other assets	1 352	1 753	5 266
Total assets	74 951	87 792	162 582
Liabilities, '000 EUR	Asset management	Bank development	Non-bank lending
---	---	---	---
Customer deposits	-	73 786	-
Subordinated and other borrowings	-	1 802	52 324
Issued debt securities	-	-	70 865
Other liabilities	1 048	2 957	9 249
Total liabilities	1 048	78 545	132 438

Segment results (2024)

'000 EUR	Asset management	Bank development	Non-bank lending
Commission income	4 445	30	-
Commission expense	-	-	-
Interest income	73	614	-
Interest expense	(303)	-	-
Other income	-	-	-
Administrative and other expenses allocation	(1 183)	(6 775)	-
Operating income before client acquisition and other business project	3 032	(6 131)	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

expenses
Client acquisition cost allocation	(1 972)	-	-
Income after client acquisition and other business project expenses	1 060	(6 131)	-
Non-cash personnel option expenses	(239)	-	-
Corporate income tax	(7)	(2)	-
Comprehensive profit / (losses) for the reporting period	814	(6 133)	-

Segment assets and liabilities (2024)

Assets, '000 EUR	Asset management	Bank development	Non-bank lending
Cash and cash equivalents	1 939	34 708	-
Loans to customers	-	987	-
Investments	-	-	-
Contract acquisition costs	1 567	-	-
Intangible assets, property, plant and equipment and right-of-use assets	179	6 974	-
Other assets	872	1 247	-
Total assets	4 557	43 916	-
Liabilities, '000 EUR	Asset management	Bank development	Non-bank lending
---	---	---	---
Customer deposits	-	32 423	-
Subordinated and other borrowings	-	-	-
Issued debt securities	-	-	-
Other liabilities	876	3 016	-
Total liabilities	876	35 439	-

39. Capital adequacy calculation

The amount of required own funds is determined in accordance with Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013. The Company is required to maintain a minimum level of own funds that (i) exceeds the minimum initial capital (EUR 125 000), (ii) minimum initial capital and additional capital, calculated based on assets under management, and (iii) 25% of fixed overheads of the preceding year. The Company's own funds exceeded capital requirements at all times during the reporting period.

		Dec 2025	Dec 2024
		EUR	EUR
1	Total own funds (1.1 + 1.2)	2 093 753	1 617 310
1.1	Tier 1 capital (1.1.1 + 1.1.2)	2 093 753	1 617 310
+	Share capital	9 997 448	4 760 549
+	Reserves	414 080	618 004
+	Share premium	61 887 564	17 525 087
+	Accumulated deficit	(1 024 341)	(2 246 376)
+	Profit/(loss) for the period	1 363 854	873 235
-	Contract acquisition costs	1 526 565	1 566 969

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

-	Intangible assets	181 798	1 742
-	Investments in subsidiaries	68 551 956	18 084 445
-	Investments in share capital of associated companies	222 950	198 450
-	Investments in equity securities	61 583	61 583
1.1.1	Total Tier 1 capital	2 093 753	1 617 310
1.1.2	Additional Tier 1 capital	-	-
1.2	Tier 2 capital	-	-
2	Minimum capital requirement
2.1	Company fixed overheads of the preceding year	2 654 148	2 466 598
2.2	Minimum initial capital	125 000	125 000
2.3.	Assets under management	1 475 585 153	1 339 223 684
2.4.	Assets under management limit for additional capital requirement	250 000 000	250 000 000
2.5	Maximum limit for own fund requirement	10 000 000	10 000 000
2.6	Additional capital requirement ((2.3-2.4) x 0.02%)	245 117	217 845
3	Company capital adequacy calculation
3.1	Excess own funds relative to minimum initial capital (1. - 2.2.)	1 968 753	1 492 310
3.2	Excess own funds relative to 25% of fixed overheads of the preceding year (1. - 2.1.x25%)	1 430 216	1 000 661
3.3	Excess own funds relative to minimum initial capital and additional capital requirement (1. - 2.2 - 2.6.)	1 723 636	1 274 466
4	Minimum own funds for capital requirement compliance
4.1	Minimum own funds relative to minimum initial capital and additional capital requirement (2.2 + 2.6)	370 117	342 845
4.2	Minimum own funds relative to 25% of fixed overheads of the preceding year (2.1 x 25%)	663 537	616 650

The capital adequacy calculation is based on internal reports of the Company, provided to key management of the Company.

State funded and private pension plans established and managed by the Group by net asset value

INDEXO managed state-funded pension scheme and private pension scheme plan assets under management	Net asset value of plans, EUR'000
	Registration date	Dec 2025	Dec 2024
State-funded pension scheme investment plan "INDEXO Jauda 16-55"	18.01.2018.	1 129 507	996 466
State-funded pension scheme investment plan "INDEXO Izaugsme 55-62"	21.06.2017.	251 005	267 779
State-funded pension scheme investment plan "INDEXO Konservativais 62+"	04.04.2018.	35 305	37 344
Private pension scheme pension plan "INDEXO AKCIJU PLANS"	25.03.2021.	54 320	34 821
Private pension scheme pension plan "INDEXO OBLIGACIJU PLANS"	25.03.2021.	4 889	2 815
State-funded pension scheme investment plan "VAIRO 1960-1969"	04.02.2025.	1 922	-
State-funded pension scheme investment plan "VAIRO 1970-1979"	26.09.2023.	24 495	-
State-funded pension scheme investment plan "VAIRO 1980-1989"	26.09.2023.	32 875	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

41. Interest rate risk

The Group and the Company are exposed to interest rate risk in relation to the maturities of financial assets and financial liabilities subject to interest rate risk, based on the shorter of the remaining maturities of financial instruments exposed to interest rate risk and the interest rate repricing dates. The table below summarises the Group’s and the Company’s financial assets and liabilities at carrying amount, categorised by the earlier of the contractual interest rate repricing date or maturity date. For the assessment of interest rate risk, the Group and the Company apply the simplified standardised methodology referred to in Regulation (EU) 2024/857, which determines the core deposit base (stable non-maturity deposits whose repricing is unlikely in significantly changing interest rate environments and market conditions), as well as their allocation across time bands. Accordingly, the Group and the Company do not perform customer behavioural modelling in relation to accounts without specified repricing dates or accounts with no defined maturity, considering the characteristics of both depositors and customer accounts.

The Group and the Company identify instruments sensitive to interest rate changes, including financial instruments with embedded options (transactions with early withdrawal or early redemption options), and perform customer behavioural modelling by determining the term deposit early redemption rate and the conditional prepayment rate for fixed interest rate loans, based on historical observations that are consistent over time, to the extent available. The loan prepayment rate reflects expected annual prepayment amounts, while the term deposit early redemption rate reflects cumulative expected redemption amounts over the life of the term deposit.

During the initial operating period, while the Group and the Company do not yet have sufficient historical data, the Group and the Company determine these rates using available historical information, expert judgement, professional experience and available information about the market and competitors, as well as taking into account the potential impact on current and future loan prepayment speeds arising from the economic environment, contractual terms, interest rate change scenarios and other factors affecting customer behaviour.

Undiscounted maturity structure analysis of the Group’s interest rate sensitive assets and liabilities as of 31 December 2025:

31.12.2025., EUR	Total	On demand	Up to 1 month	1 to 3 months	From 3 months to 1 year	From 1 to 5 years	More than 5 years	Interest free
Financial assets
Cash and cash equivalents	20 322	20 322	-	-	-	-	-	-
Loans and receivables from non-banks	196 957	7 099	8 222	16 358	30 145	99 436	35 697	-
Debt securities	5 930	-	1 001	14	1 571	3 345	-	-
Other assets	7 904	7 904	-	-	-	-	-	-
Total financial assets	231 113	35 325	9 223	16 372	31 716	102 781	35 697	-

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Financial liabilities

Deposits	(74 336)	(46 741)	(1 320)	(1 119)	(16 463)	(7 098)	(1 593)	-
Borrowings from companies	(29 936)	(31)	(1 084)	(2 077)	(8 385)	(18 359)	-	-
Issued debt securities	(71 730)	-	(104)	(9 851)	(15 663)	(46 112)	-	-
Other liabilities	(11 636)	(11 636)	-	-	-	-	-	-
Total financial liabilities	(187 638)	(58 408)	(2 508)	(13 047)	(40 511)	(71 569)	(1 593)	-
Interest rate risk	43 475	(23 083)	6 715	3 325	(8 795)	31 212	34 104	-

Undiscounted maturity structure analysis of the Group’s interest rate sensitive assets and liabilities as of 31 December 2024:

31.12.2024., EUR	Total	On demand	Up to 1 month	1 to 3 months	From 3 months to 1 year	From 1 to 5 years	Interest free
Financial assets
Cash and cash equivalents	35 374	35 374	-	-	-	-	-
Loans and receivables from non-banks	1 990	838	37	75	308	732	-
Other assets	3 063	3 063	-	-	-	-	-
Total financial assets	40 427	39 275	37	75	308	732	-
Financial liabilities
Deposits	-	-	-	-	-	-	-
Other liabilities	(253)	(253)	-	-	-	-	-
Total financial liabilities	(253)	(253)	-	-	-	-	-
Interest rate risk	40 174	39 022	37	75	308	732	-

Interest rate risk information is presented based on the Group’s internal reports provided to the Group’s management.

42. Going concern

The financial year 2025 for the INDEXO Group ended with a loss of EUR 7.74 million (loss of EUR 5.38 million in 2024). The losses are mainly related to the launch and development of INDEXO Banka, including significant investments in technological infrastructure and the development of new services.

INDEXO Banka commenced operations on 28 August 2024 and completed its first full year of operations in 2025. At the end of 2025, the Bank’s client base reached 49.7 thousand (21.1 thousand at the end of 2024) with total deposits of EUR 73.8 million (EUR 33.1 million at the end of 2024), while the loan portfolio exceeded EUR 55 million (EUR 1.1 million at the end of 2024). As the Bank’s operations commenced relatively recently, revenues have not yet reached a level sufficient to fully cover operating costs, resulting in the Bank closing the reporting period with a loss of EUR 9.24 million.

During 2025, IPAS INDEXO increased the Bank’s capital by EUR 10 million, while the Bank attracted subordinated borrowings in the amount of EUR 1.8 million. At the end of 2025, the Bank’s capital adequacy ratio stood at 21.26% (54.17% in 2024), exceeding the regulatory guideline

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

recommendation of 20%. The liquidity coverage ratio (LCR) at the end of the reporting period was 529.67% (1 273.49% in 2024), significantly exceeding regulatory recommendations.

In January 2026, IPAS INDEXO successfully completed the acquisition of AS DelfinGroup shares in several stages, acquiring a total shareholding of 71.52% in the company. Considering that AS DelfinGroup operates with stable and high profitability, because of the transaction, INDEXO Group becomes profitable from the first day of consolidation. Accordingly, the Group's management expects that the more profitable companies within the INDEXO Group will help cover the development costs of INDEXO Banka in 2026, until profitability is also achieved at the Bank level. With the current revenue and cost structure, INDEXO Banka plans to reach the break-even point before expected credit losses in December 2026.

At the same time, to implement the Bank's strategic objectives in 2026, including further growth of the Bank's loan portfolio and total revenues, and the successful launch of additional planned products such as home equity loans, consumer loan consolidation products and family accounts, the Group's management recognises that additional external capital will be required to execute these plans.

The Group's management is considering and evaluating various external capital raising options, including a public share offering by IPAS INDEXO and the issuance by INDEXO Banka of Tier 2 or additional Tier 1 capital instruments.

Based on the financial and liquidity assessments performed, and considering the overall profitability of the Group, management concludes that the going concern principle is appropriately applied in the preparation of the financial statements.

43. Events after the end of the reporting period

As of 25 February 2026, the number of INDEXO Banka clients increased to 54.0 thousand, the volume of deposits reached EUR 83.6 million, while the volume of loans issued reached EUR 66.7 million.
From 6 January 2026 to 19 January 2026, the mandatory share buyback offer for AS DelfinGroup shares made by IPAS INDEXO took place. The obligation to launch the mandatory buyback offer arose after the acquisition of 67.42% of DelfinGroup shares in the voluntary share buyback offer implemented at the end of 2025. On 26 January 2026, settlements were completed under the mandatory share buyback offer made by IPAS INDEXO, and IPAS INDEXO acquired an additional 1 862 021 AS DelfinGroup shares, representing 4.09% of the total voting share capital of DelfinGroup. As a result, IPAS INDEXO's total shareholding in AS DelfinGroup amounts to 71.52%.
On 6 February 2026, the Bank introduced a new type of mortgage loan to its product offering – a loan secured by residential property, which allows residents to use the value of their existing property to obtain financing for various purposes, such as home renovation, acquisition of a new property, loan consolidation or implementation of other plans.
By 25 February 2026, the Bank's capital has been increased by EUR 1.05 million, and the Bank has attracted EUR 0.75 million in subordinated deposits.

INDEXO

IPAS "Indexo" Consolidated Annual Report for 2025 and the independent auditor's report (Translation of the Latvian original)

Member of the Bank’s Supervisory Board Ramona Miglène resigned from her position as Member of the Supervisory Board on 12 February 2026. A new Member of the Bank’s Supervisory Board, Zlata Elksnīņa-Zaščīrinska, was appointed to the Supervisory Board following the candidate’s approval by the Bank of Latvia. The appointment of the new Supervisory Board member and the new composition of the Supervisory Board were registered in the Commercial Register on February 17, 2026.
Reduction of indirect and total costs. We are pleased to announce a further reduction in our clients’ indirect fund costs and fund management fees. In January 2026, these were reduced by 1–2 basis points for INDEXO-managed second pillar pension plans to – from 0.47% to 0.45% for equity funds (0.391% for the plan Jauda and 0.400% for the plans Izaugsme and Konservativais), as well as by 1 basis point for all VAIRO-managed plans. In February 2026, INDEXO third pillar pension management fees were reduced by 3 basis points from 0.62% to 0.59% per annum. The reduction of indirect costs will result in better returns for our clients and higher long-term investment growth.

The financial statements were authorised for issue on 25 February 2026 and signed for and on behalf of the Management Board of the Company by:

Henrik Karmo, Chairman of the Management Board
Marija Cernoštana, Member of the Management Board
Artūrs Roze, Member of the Management Board

THIS DOCUMENT IS SIGNED WITH A SECURE DIGITAL SIGNATURE AND CONTAINS A TIMESTAMP

INDEXO

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Tel: +371 25780900

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Riga, LV-1045

Latvia

Independent Auditors’ Report

To the shareholders of IPAS “Indexo”

Report on the Audit of the Consolidated and Separate Financial Statements

Our Opinion on the Consolidated and Separate Financial Statements

We have audited the separate financial statements of IPAS “Indexo” (“the Company”) and accompanying consolidated financial statements of the Company and its subsidiaries (“the Group”) set out on pages 19 to 120 of the accompanying consolidated and separate Annual Report, which comprise:

the consolidated and separate statements of comprehensive income for the year ended 31 December 2025,
the consolidated and separate statements of financial position as at 31 December 2025,
the consolidated and separate statements of changes in equity for the year then ended,
the consolidated and separate statement of cash flows for the year then ended,
notes to the consolidated and separate financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying consolidated and separate financial statements give a true and fair view of the consolidated and separate financial position of the Group and the Company as at 31 December 2025, and of its consolidated and separate financial performance and its cash flows for the year then ended in accordance with the IFRS Accounting standards as adopted by the European Union.

Basis for Opinion

In accordance with the Law on Audit Services of the Republic of Latvia we conducted our audit in accordance with International Standards on Auditing adopted in the Republic of Latvia (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Separate and Consolidated Financial Statements section of our report.

We are independent of the Group and the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards), as applicable to audits of the financial statements of public interest entities and independence requirements included in the Law on Audit Services of the Republic of Latvia that are relevant to our audit of the separate and consolidated financial statements of public interest entities in the Republic of Latvia. We have also fulfilled our other professional ethics responsibilities and objectivity requirements in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) and Law on Audit Services of the Republic of Latvia.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current

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period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report:

| “Expected credit loss allowances” for “Loans and receivables from non-banks” (Group)
We refer to the financial statements: Note 2.2.12. “Financial instruments” (Material accounting policies), Note 12 “Loans and receivables from non-banks”. | |
| --- | --- |
| Key audit matter | “Loans and receivables from non-banks” totaled EUR 216 115 thousand and represent approximately 76% of the Group’s assets as at 31 December 2025 (31 December 2024: EUR 987 thousand and approximately 2%).
The Group offers unsecured loan products and secured mortgage loans issued to private individuals.
In accordance with IFRS 9, the Group calculates impairment allowance based on expected credit losses (“ECLs”). ECLs are estimated mainly based on the historical pattern of losses and changes in loan risk characteristics based on qualitative and quantitative indicators such as the probability of default (“PD”) and loss given default (“LGD”). The Group incorporates forward looking information into modelling techniques applied.
“Expected credit loss allowances” represents the Management’s best estimate of the expected credit losses related the “Loans and receivables from non-banks” as at the reporting date and requires significant judgments.
Due to the above factors, we consider the area to be associated with a significant risk of material misstatement, which requires our increased attention in the audit. As such, we determined it to be a key audit matter. |
| Our audit response | Our procedures included, among others:
• inspected the Group’s expected credit loss (“ECL”) methodology and assessed its compliance with the relevant requirements of IFRS 9,
• tested for operating effectiveness selected key controls over the approval and recording and monitoring of loans, as well as delay day calculation correctness,
• engaged IT specialists who tested the effectiveness of the overall IT environment and controls over the systems supporting the calculation of days past due and the scripts used in determining ECL,
• assessed the definition of default and the staging criteria and their consistent application by evaluating these against the requirements of IFRS 9
• assessed and challenged the forward-looking information used in the ECL model, by means of corroborating inquiries of Management and inspection of publicly available information,
• challenged LGD and PD parameters, by assessing historical default levels and by reference to historical realized losses on defaults and loan sales, |

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	· assessed the adequacy of the Group’s disclosures on the loss allowances, and credit risk management in the notes to the financial statements.
“Commission income from management of private and state funded pension scheme assets” recognition (Group and Company)
We refer to the financial statements: Note 2.2.7. “Revenue and Expense Recognition” (Material accounting policies), Note 3 “Commission and fee income”.
---	---
Key audit matter	Consolidated financial statements
For the year ended 31 December 2025, “Commission income from management of private and state funded pension scheme assets” totalled EUR 5 116 thousand and represents approximately 57% of the Group’s total income and other revenue (31 December 2024: EUR 4 445 thousand and approximately 87%).

Separate financial statements
For the year ended 31 December 2025, “Commission income from management of private and state funded pension scheme assets” totalled EUR 4 877 thousand and represents approximately 86% of the Company’s total income and other revenue (31 December 2024: EUR 4 359 thousand and approximately 98%).

In accordance with IFRS 9 - Recognized interest income is determined using the effective interest rate (“EIR”) method. In determining the amount of interest income, the Group uses a model whereby automatically calculated interest amounts are manually adjusted based on the contractual interest rate to reflect the additional costs incurred in entering into the loan agreement in the EIR measurement and the resulting interest income is recognized in the income statement.

The calculation of interest income is performed using sophisticated information technology systems that process frequently updated and voluminous data.

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| | • verified that the Group’s and the Company’s managed state funded pension scheme investment plans and private pension plans performance fee as determined in the prospectus is nil;
• tested the completeness and accuracy of the disclosures relating to commission income from management of private and state funded pension scheme assets in the notes to the consolidated and separate financial statements. |
| --- | --- |
| “Interest income calculated using the effective interest rate” recognition (Group) | |
| --- | --- |
| We refer to the financial statements: Note 2.2.7. “Revenue and Expense Recognition” (Material accounting policies), Note 6 “Interest income calculated using the effective interest rate”. | |
| Key audit matter | For the year ended 31 December 2025, “Interest income calculated using the effective interest rate” totalled EUR 2 823 thousand and represents approximately 31% of the Group’s total income and other revenue (31 December 2024: EUR 471 thousand and approximately 9%).

In accordance with IFRS 9 - Recognized interest income is determined using the effective interest rate (“EIR”) method. In determining the amount of interest income, the Group uses a model whereby automatically calculated interest amounts are based on the contractual interest rate to reflect the additional costs incurred in entering into the lease and loan agreement in the EIR measurement and the resulting interest income is recognized in the income statement.

The calculation of interest income is performed using sophisticated information technology systems that process frequently updated and voluminous data.

Due to the above factors, we consider the area to be associated with a significant risk of material misstatement, which requires our increased attention in the audit. As such, we determined it to be a key audit matter. |
| Our audit response | Our procedures included, among others:
• assessed the accounting policies, management assumptions and tested inputs used in the recognition of interest income,
• engaged IT specialists who tested the effectiveness of the overall IT environment and controls over the systems supporting the calculation of interest income,
• tested the design and implementation of selected controls over the interest revenue recognition process, controls over the application of appropriate contractual interest rates and other contractual terms, as well as recalculated interest income to assess the correctness of the effective interest rate applied,
• performed other substantive and analytical procedures,
• tested the completeness and accuracy of the disclosures relating to interest income in the notes to the financial statements. |

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| Accounting for business combinations (Group and Company)
We refer to the consolidated and separate financial statements: Note 2.2.1. “Basis of Consolidation” (Material accounting policies), Note 18 “Investments in subsidiaries”. | |
| --- | --- |
| Key audit matter | During the financial year ended 31 December 2025, the Group completed two acquisitions that have resulted in the Company acquiring controlling interest in DelfinGroup AS (“DelfinGroup”) and VAIRO IPAS (“VAIRO”).

A controlling stake in DelfinGroup was acquired through the framework of the voluntary share buyback offer including a share swap by the Company issuing new shares during 2025. A controlling stake in VAIRO was acquired through a share swap by the Company issuing new shares during 2025 and a cash payment.

We considered the audit of accounting for these acquisitions to be a key audit matter as these are significant transactions during the year which require significant management judgement regarding the allocation of the purchase price to the assets and liabilities acquired and adjustments made to align accounting policies of the newly acquired entities with those of the Group. This exercise also require management to determine the fair value of the assets and liabilities acquired and to identify intangible assets acquired in the acquisition.

Due to the above factors, we consider the area to be associated with a significant risk of material misstatement, which requires our increased attention in the audit. As such, we determined it to be a key audit matter. |
| Our audit response | Our procedures included, among others:
• read the sales and purchase agreements and the circulars issued to the shareholders in relation to these acquisitions to obtain an understanding of the transactions and the key terms,
• assessed whether the appropriate accounting treatment has been applied to these transactions,
• tested the identification and fair value calculation of the acquired assets including: intangible assets acquired and liabilities by corroborating this identification based on our discussion with management and understanding of the business of DelfinGroup and VAIRO,
• reviewed the valuation methodologies used by management in the fair value calculation of acquired assets and liabilities, especially related to the loan portfolio and intangible assets of DelfinGroup and client base of VAIRO,
• assessed the reasonableness of the valuation assumptions such as discount and growth rates by comparing these assumptions to source data and market data,
• assessed the determination of the acquisition date and the validity of the date used for consolidation purposes, including the concept of “convenience date”. |

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	· assessed the adequacy of the related disclosures in the financial statements regarding these acquisitions in Note 18 “Investments in subsidiaries”.

Other matter

The consolidated and separate financial statements of the Group and the Company for the year ended 31 December 2024 were audited by another auditor who expressed an unmodified opinion on those statements on February 27, 2025.

Reporting on Other Information

The Group’s and Company’s management is responsible for the other information. The other information comprises:

Information on the Company and subsidiaries, as set out from pages 3 to 6 of the accompanying separate and consolidated Annual Report,
the Management Report, as set out from page 7 to 16 of the accompanying separate and consolidated Annual Report,
the Statement of Management’s Responsibility, as set out on page 17 of the accompanying separate and consolidated Annual Report.
the Statement of Corporate Governance prepared by the management as a stand-alone statement which at the date of the auditor’s report is publicly available on the Group’s website https://indexo.lv,
Remuneration report prepared by the management as a stand-alone statement which at the date of the auditor’s report is publicly available on the Group’s website https://indexo.lv.

Our opinion on the separate and consolidated financial statements does not cover the other information included in the Annual Report, and we do not express any form of assurance conclusion thereon, except as described in the Other reporting responsibilities in accordance with the legislation of the Republic of Latvia related to other information section of our report.

In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the separate and consolidated financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed and in light of the knowledge and understanding of the Company, Group and its environment obtained in the course of our audit, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Other reporting responsibilities in accordance with the legislation of the Republic of Latvia related to other information

In addition, in accordance with the Law on Audit Services of the Republic of Latvia with respect to the Management Report, our responsibility is to consider whether the Management Report is prepared in accordance with the requirements of the Latvijas Banka Regulation No. 326 "Regulations regarding the annual accounts and consolidated annual accounts of credit institutions, investment brokerage companies, investment management companies and private pension funds"

Based solely on the work required to be undertaken in the course of our audit, in our opinion:

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the information given in the Management Report for the financial year for which the separate and consolidated financial statements are prepared is consistent with the separate and consolidated financial statements; and
the Management Report has been prepared in accordance with the requirements of the requirements of Latvijas Banka Regulation No. 326 "Regulations regarding the annual accounts and consolidated annual accounts of credit institutions, investment brokerage companies, investment management companies and private pension funds".

In accordance with the Law on Audit Services of the Republic of Latvia with respect to the Statement of Corporate Governance, our responsibility is to consider whether the Statement of Corporate Governance includes the information required in section 56.1, first paragraph, clause 3, 4, 6, 8 and 9, as well as section 56.2, second paragraph, clauses 5 and 8, and third paragraph of the Financial Instruments Market Law of the Republic of Latvia.

In our opinion, the Statement of Corporate Governance includes the information required in section 56.1, first paragraph, clauses 3, 4, 6, 8 and 9, as well as section 56.2, second paragraph, clauses 5 and 8, and third paragraph of the Financial Instruments Market Law of the Republic of Latvia.

Furthermore, in accordance with the Law on Audit Services of the Republic of Latvia our responsibility is to consider whether the Remuneration Report includes the information required in section 59.4 of the Financial Instruments Market Law of the Republic of Latvia, and whether material misstatements have been identified in the Remuneration Report in relation to the financial information disclosed in the Annual Report.

In our opinion, the Remuneration Report includes the information required in section 59.4 of the Financial Instruments Market Law of the Republic of Latvia, and no material misstatements have been identified in the Remuneration Report in relation to the financial information disclosed in the separate and consolidated Annual Report.

Responsibilities of Management and Those Charged with Governance for the Separate and Consolidated Financial Statements

Management is responsible for the preparation of the separate and consolidated financial statements that give a true and fair view in accordance with IFRS Accounting standards as adopted by the European Union and for such internal control as management determines is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate and consolidated financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company and/or the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's and the Group's financial reporting process.

Auditor's Responsibility for the Audit of the Consolidated and Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

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expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and/or the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and/or the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves a fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and objectivity, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate and consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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Other Reporting Responsibilities and Confirmations Required by the Legislation of the Republic of Latvia and the European Union when Providing Audit Services to Public Interest Entities

We were appointed by the shareholder's meeting on 16 September 2025 to audit the consolidated and separate financial statements of IPAS "Indexo" for the year ended 31 December 2025. This is our first year of appointment.

We confirm that:

our audit opinion is consistent with the additional report presented to the Audit Committee of the Group and the Company,
as referred to in the paragraph 37.6 of the Law on Audit Services of the Republic of Latvia we have not provided to the Company and the Group the prohibited non-audit services (NASs) referred to in paragraph 1 of article 5 of EU Regulation (EU) No 537/2014. We also remained independent of the audited entity (the Company) and the Group in conducting the audit.

For the period to which our statutory audit relates, we have not provided any services to the Group and the Company in addition to the audit, which have not been disclosed in the Management Report or in the separate and consolidated financial statements of the Group and the Company.

The responsible sworn auditor on the audit resulting in this independent auditors' report is Raivis Jānis Jaunkalns.

Report on the Auditors' Examination of the European Single Electronic Format (ESEF) Report

In addition to our audit of the accompanying consolidated and separate financial statements, as included in the consolidated and separate Annual Report, we have also been engaged by the management of the Group to express an opinion on compliance of the consolidated and separate financial statements prepared in a format that enables uniform electronic reporting ("the ESEF Report") with the requirements of the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (the "RTS on ESEF").

Responsibilities of Management and Those Charged with Governance for the ESEF Report

Management is responsible for the preparation of the consolidated and separate financial statements in a format that enables uniform electronic reporting that complies with the RTS on ESEF. This responsibility includes:

the preparation of the consolidated and separate financial statements in the applicable xHTML format,
the selection and application of appropriate iXBRL tags, using judgment where necessary,
ensuring consistency between digitalized information and the consolidated financial statements presented in human-readable format; and
the design, implementation and maintenance of internal control relevant to the application of the RTS on ESEF.

Those charged with governance are responsible for overseeing the financial reporting process.

Auditors' Responsibility for the Examination of the ESEF Report

Our responsibility is to express a conclusion on whether the ESEF report complies, in all material respects, with the RTS on ESEF, based on the evidence we have obtained. We conducted our

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reasonable assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000) issued by the International Auditing and Assurance Standards Board.

A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence about compliance with the RTS on ESEF. The nature, timing and extent of procedures selected depend on the auditor's judgment, including the assessment of the risks of material departures from the requirements of set out in the RTS on ESEF, whether due to fraud or error.

Our procedures included, among other things:

obtaining an understanding of the tagging process,
tracing the tagged data to the consolidated financial statements of the Group presented in human-readable format,
evaluating the completeness of the Group's tagging of the consolidated financial statements,
evaluating the appropriateness of the Group's use of iXBRL elements selected from the ESEF taxonomy and creation of extension elements where no suitable element in the ESEF taxonomy has been identified,
evaluating the use of anchoring in relation to the extension elements; and
evaluating the appropriateness of the format of the consolidated and separate financial statements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Conclusion

In our opinion, the ESEF Report of the Group and the Company as at and for the year ended 31 December 2025 has been prepared, in all material respects, in accordance with the requirements of the RTS on ESEF.

SIA "BDO ASSURANCE"
License No 182

Raivis Jānis Jaunkalns
Responsible sworn auditor
Certificate No 237
Member of the Board

Riga, Latvia
25 February 2026

THIS DOCUMENT HAS BEEN SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND IT HAS A TIME-STAMP

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INDEXO — Annual Report 2025

2240_rns_2026-02-26_3072b06f-868f-47bd-838e-d498de2fae2c.pdf

IPAS "Indexo"

Table of contents

Information on the group

Subsidiary information

Subsidiary information, continued

Subsidiary information, continued

Investment in associated company share capital

Management report

General description

Pension Savings Management

Pension Savings Management key operating results

Financial results of pension savings management

Real Estate Fund Management

Bank Development

Results of subsidiary INDEXO Banka, AS

"Indexo" Group results:

Sustainability

Environment

Social Responsibility

Governance

Statement of responsibility of the management board

Financial statements

Notes to the Consolidated and Company’s Financial Statements

1. General information

Basis of preparation

Functional currency

2. Significant Information on Accounting Policies

New standards and interpretations

New standards and interpretations not yet effective

2.1. Estimates and Judgements

Significant Accounting Judgements, Estimates, and Related Assumptions

11. Net Realizable Value of Inventories

12. Lease – Estimation of Incremental Borrowing Rate

13. Identification of Capitalized IT System Costs

14. Expected credit loss (ECL) measurement

15. Forward-looking macroeconomic information (FLI)

16. LGD and collateral recoverability

17. Assessment of the Recoverable Amount of Investments in Subsidiaries

18. Contract Acquisition Costs - Customer Acquisition Expenses

19. Share-based Payments

2.2. Significant Policies

1. Basis of Consolidation

Subsidiaries

Loss of Control

Transactions Eliminated in Consolidation

Uniform Group Accounting Policies

Associates

2. Assets under Management

3. Intangible Assets and Property, Plant, and Equipment

Goodwill

4. Inventories

5. Leases

Right-of-Use Assets

Lease Liabilities

Short-Term Leases and Leases of Low-Value Assets

6. Investments in Subsidiaries and Associates (Company)

7. Revenue and Expense Recognition

8. Interest Expenses and Similar Costs

9. Other Income

10. Expenses

11. Foreign Currency Transactions

12. Financial Instruments

Initial Recognition and Measurement

Classification and Subsequent Measurement

Financial Asset Classification

Financial Assets Measured at Amortized Cost

Financial Assets at Fair Value Through Profit or Loss (FVTPL)

Expected Credit Losses on Financial Assets

Credit Portfolio (Consumer and Mortgage Loans) ECL Model

Sources of PD / LGD / EAD

Stages and Significant Increase in Credit Risk (SICR)

Definition of Non-Performance of Obligations

ECL for Receivables from Transaction Partners

Debtors and Technical Overdrafts ECL

Amortized Cost and Effective Interest Rate Method

Financial Liabilities

Derecognition

INDEXO Annual Report 2025