Market announcement

Title

Unaudited consolidated interim accounts for the first quarter of 2025

Message

Segments (EURm)           Q1/25   Q1/24    yoy
---------------------------------------------------
  Selver supermarkets       148.3   146.4    1.3%

  Department stores          22.7    24.0   -5.2%

  Car trade                  37.3    44.8   -16.8%

  Security segment            4.6     4.5    1.6%

  Real Estate                 2.0     1.7   15.7%
---------------------------------------------------
  Total sales               214.9   221.5   -3.0%
---------------------------------------------------


  Selver supermarkets         0.7     1.0   -34.7%

  Department stores          -1.7    -1.2   44.2%

  Car trade                   0.7     2.3   -69.6%

  Security segment           -0.1    -0.1   -2.2%

  Real Estate                 2.2     2.2    0.6%

  IFRS 16                    -0.5    -0.4   19.4%
---------------------------------------------------
  Total profit before tax     1.3     3.8   -66.4%
---------------------------------------------------


In  the first quarter  of 2025, the consolidated  unaudited sales revenue of the
Group  was  214.9 million  euros.  Compared  to  the  first quarter of 2024, the
decline  was 3.0%. The net loss for  the reporting period was 6.5 million euros,
which was 5.0 million euros lower compared to the profit of the first quarter of
2024, including  income tax of 2.5 million euros  more than in 2024. The pre-tax
profit  was 1.3 million euros, and it  also decreased compared to the comparable
result of the previous year by 2.5 million euros.

The   first   quarter   was  marked  by  an  increasingly  challenging  economic
environment,  shaped both by turbulent global economic policymaking and domestic
tax  increases. The most significant impact  on the Group's revenue stemmed from
the  vehicle tax introduced  at the beginning  of the year,  which resulted in a
year-on-year  contraction of more than 50% in the Estonian new car market during
the  first quarter.  Nevertheless, the  Group's car  segment revenue  in Estonia
declined by only approximately one-third. This negative impact was partly offset
by  stronger sales from  subsidiaries in Latvia  and Lithuania, and overall, the
Group's  car segment revenue declined by  16.8% compared to the same period last
year.  As a result, the  Group's total revenue fell  slightly below the level of
the  previous year.  However, in  the Selver  supermarkets segment, the downward
trend  in sales revenue that had persisted for four consecutive quarters came to
an  end, with a growth of  1.3% achieved. Contributing factors included previous
efforts  to improve the segment's  price image and the  continued success of the
"Golden  Wednesday" campaign,  which remains  a customer  favourite. The segment
also  continued to enhance supply chain  efficiency through integration with the
Group's  logistics  centre,  aiming  to  increase  the effectiveness of internal
commercial  processes.  Both  the  security  and  real  estate segments recorded
revenue  growth  in  the  first  quarter,  and  their respective pre-tax profits
remained  in line with the prior year's figures. Despite the impact of declining
revenue  on profitability, the Group's  gross profitability did not deteriorate,
as   gross   margins   were  maintained  in  the  Group's  non-retail  segments.
Nevertheless,  the Group's retail segments were  able to maintain a gross margin
comparable  to the previous year through  effective inventory planning and well-
executed  promotional campaigns. Labour costs increased by 3.7%, while the total
number  of employees  declined by  0.3%. Financial expenses,  including loan and
interest obligations, remained at the same level as in the previous year.

In the first quarter of 2025, renovation works were carried out on two floors of
the  Children's  Department  (Lastemaailm)  at  the Kaubamaja Tallinn department
store.  In  March,  the  fully  renewed  Lastemaailm was opened, featuring a new
concept.  The addition of new brands and a lifestyle-oriented layout attracted a
significant  number  of  new  customers  to  Lastemaailm  in  March.  Within the
department  store segment, development work commenced on upgrading the I.L.U. e-
store  to a new platform and quality standard, with completion scheduled for the
third  quarter.  The  Group's  Lithuanian  real  estate  company  continued  the
construction  of a  new KIA  and Shkoda  showroom and  service centre in Vilnius,
aimed  at supporting the expansion of the  Group's car segment in the Lithuanian
market.  In Estonia, preparatory work  has begun for the  establishment of a new
body  repair workshop adjacent to the Peetri  car dealership. This year has also
seen  the launch  of several  store renovation  projects, with  the objective of
aligning  the properties with current business  needs and improving their energy
efficiency.  Preparations have also been made for the expansion of the Laulasmaa
and Keila Selver stores.

Selver supermarkets

The consolidated sales revenue of the supermarket business segment for the first
quarter  of 2025 was 148.3 million euros,  representing a 1.3% increase compared
to  the same period of the previous year. The average monthly revenue from goods
per  square metre of selling space was  0.39 thousand euros in the first quarter
of 2025, reflecting a 2.3% decline year on year. On a like-for-like store basis,
revenue  from goods per  square metre of  selling space was 0.39 thousand euros,
remaining  at the previous year's level  (change -0.8%). A total of 10.7 million
purchases  were made at  Selver stores in  the first quarter  of 2025, marking a
2.7% increase  compared to the previous year. The consolidated pre-tax profit of
the  supermarket segment  was 0.7 million  euros in  the first quarter, which is
0.4 million  euros  less  than  the  result  for  the same period last year. The
consolidated  net profit of the supermarket segment was 0.1 million euros, which
was  0.7 million euros higher than in the prior year. The difference between net
profit  and profit before tax is attributable  to income tax on dividends - this
year, dividend income tax was 1.0 million euros lower than in the previous year.
The  base figures do not include data from Raadi and Rocca al Mare Selver stores
opened  in the  third quarter  of 2024, but  are increased  by data  from Maardu
Selver, which was closed in February of the current year.

Selver's sales performance has not remained unaffected by the broader challenges
facing  the Estonian retail environment,  where consumer confidence continues to
be  subdued.  The  impact  of  various  tax  amendments  and price increases has
diminished  consumers'  ability  to  purchase  goods  and  services.  Purchasing
decisions  are made more cautiously, with shopping increasingly dispersed across
multiple  outlets in search  of promotional offers,  which has in  turn led to a
decrease  in the average basket value. The volume of sales in the food and daily
goods  retail sector continues to show a  downward trend. According to data from
Statistics  Estonia, in  the first  two months  of 2025, retail sales revenue at
current  prices in the non-specialised  store segment-primarily comprising food,
tobacco, and alcohol-grew by 1.9%.

The  economic performance of the first quarter of 2025 was affected by a decline
in sales volumes and a slight decrease in the gross margin on goods sales due to
a  higher proportion of  promotional items. This  year's operating cost base has
increased  as a result of new store  openings and also includes one-off expenses
related to the closure of the Maardu store. The segment has successfully managed
pressure from rising input prices for various services and materials, as well as
optimised  expenditure volumes, enabling operational efficiency indicators to be
maintained  at the same level  as the previous year.  Ongoing efforts to improve
work processes have also helped to sustain labour efficiency.

In   the  second  half  of  the  year,  Selver  plans  to  renovate  one  store,
incorporating  environmentally sustainable solutions. Continued focus remains on
product  assortment  and  process  optimisation.  In  the  course  of  2025, the
Logistics Centre established in Maardu in 2024 will be fully integrated into the
supply  chain. Key priorities include increasing operational volumes on the Bolt
Market  and Wolt  platforms and  further developing  the Selver  e-store. At the
beginning  of the year, Selver's e-store was voted the public's favourite in the
food  and consumer goods category in a  public vote organised by the Estonian E-
Commerce Association.

The  supermarket segment continues to operate  responsibly and with a commitment
to  sustainability,  aiming  to  continuously  improve  its activities to reduce
environmental  impact while offering  customers value-driven and well-considered
solutions.  The  segment's  focus  areas  include reducing direct greenhouse gas
emissions,  increasing waste recycling, reducing food waste, improving packaging
and  packaging  use,  supporting  short  supply  chains,  and advancing fast and
convenient  digital solutions. Kulinaaria, the  producer of Selveri Köök branded
products,  continues its  active product  development with  the aim  of offering
customers  a  wide  variety  of  new  flavours,  placing  emphasis  not  only on
maintaining  high product quality but also on  reducing the salt, sugar, and fat
content  of products. As  a result of  this product development, 15 new products
reached  store shelves during the first quarter. The main emphasis was placed on
the  confectionery segment, with new anniversary  products added. New items were
also  introduced in the hot and cold  ready meals categories, and the successful
sushi  segment  was  expanded.  In  celebration  of Selver's 30th anniversary, a
special pâté with a new flavour has been created.

As  at the end of  March, the supermarket segment  includes 72 Selver stores, 2
Delice  stores, a mobile  store, and a  café, with a  total sales area of 123.8
thousand m². In addition, it includes e-Selver, e-store with the largest service
area in Estonia, and the central kitchen Kulinaaria OÜ.

Department stores

The  sales revenue  of the  department stores  segment for  the first quarter of
2025 amounted  to 22.7 million  euros, representing  a 5.2% decrease compared to
the  same period  in the  previous year.  The pre-tax  loss totalled 1.7 million
euros, increasing by 0.5 million euros year on year.

Sales revenue per square metre of selling space was 0.3 thousand euros per month
in  the first quarter, which  is 5.2% lower than in  the comparative period. The
continued  cooling of the economic environment persisted into the first quarter,
negatively  impacting  the  performance  of  industrial  goods in the department
stores.  Due to milder  than average winter  months, the winter fashion discount
campaign  was extended into  the first half  of February, positively influencing
sales.  The inventory position  was more optimal  compared to the previous year,
which  eliminated the need for deep discounts  during the period. In the grocery
section,  the distinctive product range continues to attract new loyal customers
to  the  Food  World  stores,  with  sales  results  in  line with expectations.
Renovation  works were  carried out  on two  floors of  the Children's  World in
Tallinn  during the  early months  of the  year, and  in March  a fully revamped
department  was  opened  under  a  new  concept.  The addition of new brands and
lifestyle-based displays sparked significant customer interest.

The  sales revenue of OÜ  TKM Beauty Eesti, which  operates the I.L.U. cosmetics
stores, totalled 1.8 million euros in the first quarter of 2025, marking a 6.5%
decrease  compared to the same period in 2024. The segment posted a loss of 0.1
million euros, which is 0.1 million euros weaker than the profit recorded in the
comparative  period of  2024. First-quarter results  were negatively affected by
general   consumer   uncertainty,   with  most  purchases  taking  place  during
promotional  campaigns, exerting pressure on margins. Development work commenced
on  transferring the I.L.U. e-store to a new platform and enhancing its quality;
this is expected to be completed in the third quarter.

Car trade

The  car trade segment's sales revenue for the first quarter of 2025 amounted to
37.3 million euros. Revenue declined by 16.8% compared to the previous year. The
segment's  consolidated pre-tax profit  totalled 0.7 million euros  in the first
quarter, which represents a decrease of 1.6 million euros year-on-year.

The  first quarter  of 2025 began  under challenging  market conditions  for the
Group's  car  segment.  In  addition  to  the customary seasonal slowdown at the
beginning of the year, the Estonian car market was significantly impacted by the
motor  vehicle  tax  effective  from  January,  which  led consumers to postpone
purchasing  decisions. As a result, sales of  new passenger cars in Estonia fell
by  55% compared to the  same period last  year. The Group's  car segment sold a
total  of  1,030 new  passenger  cars  in  the  first  three months of the year,
representing a 23.6% decrease compared to the same period last year. In response
to  the  market  contraction,  aggressive  pricing campaigns were undertaken for
popular  models  such  as  the  KIA  Sportage  and KIA Ceed, which had a notable
negative  impact on  the segment's  profitability. Despite  the downturn  in the
Estonian  market, the Group's pan-Baltic business model in the car segment helps
to diversify risks and maintain profitability. In addition, customer interest in
electric  and hybrid vehicles has  grown, and sales of  these vehicles are on an
upward  trend.  The  KIA  range  of  electric  vehicles  has  expanded-with  the
introduction  of  the  new,  more  affordable  KIA  EV3  alongside the refreshed
premium-class  model EV6.  Several important  new launches  are anticipated this
year,  including  the  KIA  EV4  and  the  PV5  electric  van. Second-half sales
prospects  are also supported  by the upcoming  market entry of  the updated KIA
Sportage and an entirely new Ceed model family.

In  Lithuania, construction of  the KIA-Shkoda multi-brand  dealership in Vilnius
progressed  according to plan. In Estonia, Viking Motors opened its new flagship
KIA  sales  and  service  centre  in  Peetri  at  the  beginning  of  the  year.
Preparations  have  also  commenced  for  establishing  a  body  repair workshop
adjacent to the Peetri dealership.

Security segment

The  security segment's non-group  sales revenue for  the first quarter of 2025
amounted to 4.6 million euros, representing a year-on-year increase of 1.6%. The
segment posted a pre-tax loss of 0.1 million euros for the quarter, remaining at
the same level as in the corresponding period last year.

The first quarter continued the trends observed at the end of the previous year.
The  economic environment  continues to  exert pressure  on profit margins, with
rising  input costs on  one hand and  a cautious, price-sensitive  market on the
other.   Within   the   segment,  better  results  were  achieved  in  technical
surveillance  and security equipment maintenance, with both portfolios recording
growth. By contrast, security technology installation projects and cash handling
services underperformed relative to the previous year.

Real estate

The real estate segment's non-group sales revenue for the first quarter of 2025
amounted  to 2.0 million  euros, representing  a 15.7% increase  compared to the
first quarter of the previous year. The segment's pre-tax profit for the quarter
was 2.2 million euros, reflecting a year-on-year increase of 0.6%.

Revenue  growth in the real estate segment was largely driven by the addition of
rental  income from the logistics centre that commenced operations at the end of
last  year. The logistics centre  has been leased to  a third party. In March, a
new tenant, the Vapiano restaurant, opened in the Viimsi Centre, contributing to
increased  footfall in the shopping centre. On the other hand, quarterly revenue
declined  in the Latvian real  estate company following the  sale of the Kuld?ga
and  Salaspils commercial properties to external parties at the beginning of the
year.

The  segment's  profit  was  positively  influenced  by  the  more accommodative
monetary  policy adopted  by central  banks, as  the gradual  decline in Euribor
rates  has begun to reduce interest expenses  in the real estate segment. Profit
was  negatively impacted by one-off expenses related  to the sale of the Latvian
properties. No additional revenue was recognised from the property transactions,
as  the buildings had already  been revalued to market  price at the end of last
year.  The income arising from the revaluation was reflected in the prior year's
report.

The  Group's Lithuanian real  estate company, which  commenced construction last
year  of a  new KIA  and Shkoda  showroom and  service centre  in Vilnius for the
Group's  car segment,  continued work  on the  project. In  Estonia, preparatory
works  are underway for the  construction of a body  repair workshop adjacent to
the  Viking  Motors  dealership  in  Peetri.  This year, several retail building
renovation projects have been initiated with the aim of modernising the premises
and aligning them with current business needs. The renovations will also improve
the  energy efficiency of  the buildings. Preparatory  works have been completed
for the expansion of the Laulasmaa and Keila Selver stores.


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

-------------------------------------------------------------------------
                                                 31.03.2025   31.12.2024
-------------------------------------------------------------------------
  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                          41,768       45,454

  Trade and other receivables                        19,363       30,310

  Inventories                                        98,777       97,091
-------------------------------------------------------------------------
  Total current assets                              159,908      172,855
-------------------------------------------------------------------------
  Non-current assets

  Long-term receivables and prepayments                 237          235

  Investments in associates                           1,789        1,733

  Investment property                                76,282       81,284

  Property, plant and equipment                     417,223      424,794

  Intangible assets                                  25,862       25,785
-------------------------------------------------------------------------
  Total non-current assets                          521,393      533,831
-------------------------------------------------------------------------
  TOTAL ASSETS                                      681,301      706,686
-------------------------------------------------------------------------

-------------------------------------------------------------------------
  LIABILITIES AND EQUITY
-------------------------------------------------------------------------
  Current liabilities

  Borrowings                                         35,236       44,436

  Trade and other payables                          129,137      110,997
-------------------------------------------------------------------------
  Total current liabilities                         164,373      155,433
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        278,689      279,958

  Trade and other payables                            1,287        1,285

  Deferred tax liabilities                            7,939        7,939

  Provisions for other liabilities and charges          508          543
-------------------------------------------------------------------------
  Total non-current liabilities                     288,423      289,725
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 452,796      445,158
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                               111,489      112,167

  Retained earnings                                  98,121      130,466
-------------------------------------------------------------------------
  TOTAL EQUITY                                      228,505      261,528
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      681,301      706,686
-------------------------------------------------------------------------


CONDENSED  CONSOLIDATED  STATEMENT  OF  PROFIT  OR  LOSS AND OTHER COMPREHENSIVE
INCOME

In thousands of euros

  -----------------------------------------------------------------------------
                                                    3 months 2025 3 months 2024
  -----------------------------------------------------------------------------
   Revenue                                                214,934       221,503

   Other operating income                                     329           209



   Cost of merchandise                                   -156,424      -162,090

   Services expenses                                      -15,751       -15,262

   Staff costs                                            -28,303       -27,294

   Depreciation, amortisation and impairment losses       -10,766       -10,610

   Other expenses                                            -368          -332
  -----------------------------------------------------------------------------
   Operating profit                                         3,651         6,124
  -----------------------------------------------------------------------------
   Finance income                                             279           253

   Finance costs                                           -2,709        -2,648

   Share of net profit of associates accounted for
   using the equity method                                     56            72
  -----------------------------------------------------------------------------
   Profit before tax                                        1,277         3,801
  -----------------------------------------------------------------------------
   Income tax expense                                      -7,826        -5,312
  -----------------------------------------------------------------------------
   NET PROFIT FOR THE FINANCIAL YEAR                       -6,549        -1,511
  -----------------------------------------------------------------------------
   Other comprehensive income:

   Items that will not be subsequently reclassified
   to profit or loss
  -----------------------------------------------------------------------------
   Other comprehensive income for the financial
   year                                                         0             0
  -----------------------------------------------------------------------------
   TOTAL COMPREHENSIVE PROFIT FOR THE FINANCIAL
   YEAR                                                    -6,549        -1,511
  -----------------------------------------------------------------------------
 Basic and diluted earnings per share (euros)               -0.16         -0.04



Raul Puusepp
Chairman of the Board
Phone +372 731 5000