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Title

Unaudited consolidated interim accounts for the first quarter of 2026

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Unaudited consolidated interim accounts for the first quarter of 2026

  Segments (EURm)           Q1/26   Q1/25     yoy
----------------------------------------------------
  Selver supermarkets       142.4   148.3    -4.0%

  Department stores          22.8    22.7    0.4%

  Car trade                  55.8    37.3    49.6%

  Security segment            5.5     4.6    19.9%

  Real Estate                 1.8     2.0    -6.2%
----------------------------------------------------
  Total sales               228.4   214.9    6.3%
----------------------------------------------------


  Selver supermarkets         0.0     0.7   -106.5%

  Department stores          -1.8    -1.7    4.2%

  Car trade                   2.1     0.7   200.1%

  Security segment            0.0    -0.1   -110.4%

  Real Estate                 2.2     2.2    -1.9%

  IFRS 16                    -0.4    -0.5    -2.2%
----------------------------------------------------
  Total profit before tax     2.0     1.3    58.3%
----------------------------------------------------

The  Group's consolidated unaudited sales revenue for the first quarter of 2026
was  228.4 million euros. Compared with the first quarter of 2025, sales revenue
increased  by 6.3%. The reporting  period resulted in  a net loss of 4.7 million
euros.  Compared with the same  period a year earlier,  the loss was 1.8 million
euros  lower, including the positive  effect of lower income  tax expense in the
amount of 1.1 million euros. Profit before tax was 2.0 million euros, increasing
by 0.7 million euros compared with the result a year earlier.
The  economic growth forecast for  2026 nevertheless translated into only modest
growth in consumption in the first quarter. Higher utility bills during the cold
winter  months absorbed  a significant  share of  household spending,  while the
outbreak  of a new war in the Middle  East led consumers to become more cautious
once  again. In the Group's first-quarter  financial results, this was felt most
clearly  in food retail, i.e. the Selver supermarkets segment, where performance
declined  both in  terms of  sales revenue  and profit.  This was  offset by the
gradual  recovery in car sales, which made  the Group's car segment the fastest-
growing  segment among the  Group's business segments  in both sales revenue and
profit.  As from 1 March 2026, the Group's  results have included the results of
Rohe  Auto AS  and SKO  Motors OÜ,  acquired at  the beginning of March. The car
segment  was also the  main driver of  the Group's overall  6.3% growth in sales
revenue.  In addition  to the  car segment,  the department  stores and security
segment  also  increased  sales  revenue,  and  unlike in the previous year, the
security segment also returned a small profit. The Group's gross margin declined
to  some extent, reflecting the sales results  achieved by the car segment under
pricing  pressure.  Gross  margin  did  not  decline in the Group's other retail
segments.  Staff costs  increased by  3.9%, while the  total number of employees
decreased  by 0.4%. Finance costs  decreased by 0.8% compared  with the previous
year.
In  March, a  significant strategic  investment in  the acquisition of shares in
Rohe  Auto AS and the holdings in SKO Motors OÜ and SKO Motors Kinnisvara OÜ was
successfully  completed. Through this investment, the Group is strengthening the
position  of its car segment in Estonia  and the Baltics, creating synergies and
adding  resilience  to  the  Group's  brand  portfolio.  Work  continued  on the
construction  of  a  new  bodyshop  adjacent  to the Peetri car dealership, with
opening  planned for the beginning of the second quarter. Development of the new
Papiniidu Selver in Pärnu and the extension of Laulasmaa Selver also continued.
Selver supermarkets
The consolidated sales revenue of the supermarkets segment for the first quarter
of  2026 was  142.4 million  euros,  a  decrease  of 4.0% compared with the same
period a year earlier. In the first quarter of 2026, 10.2 million purchases were
made  at Selver stores, which  was 5.0% fewer than in  the comparative period of
the  previous year. The consolidated pre-tax  loss of the supermarket segment in
the  first quarter  was 0.04 million  euros, which  was 0.7 million euros weaker
than the result a year earlier. The consolidated net loss was 1.0 million euros.
In  the comparable period of  the base year, net  profit was 0.09 million euros.
The  difference  between  net  profit  and  profit before income tax arises from
income  tax paid on dividends  - this year, dividend  income tax was 0.4 million
euros higher than a year earlier.
Selver's  sales performance  has been  affected by  weakened consumer purchasing
power  and intensified competition,  in which it  is difficult to increase sales
revenue  with  the  existing  store  base  alone.  Revenue  performance has been
affected  in part by a higher comparison base due to one additional store and by
a  considerable decline in sales of industrial goods in the supermarket segment.
One  of the contributing  factors was also  that, this year,  Easter fell in the
second  quarter, whereas in  the base year  it fell in  the first quarter. Sales
revenue  from food products  remained at a  level close to  that of the previous
year, while sales volumes, similarly to the wider market segment, remained below
the previous year's level. According to Statistics Estonia, the sales revenue of
food  stores in  current prices  increased by  3.2% in the  first two  months of
2026, while sales volumes declined by approximately 2%.
The  financial results for the first quarter of 2026 were mainly affected by the
decline  in  sales  volumes.  As  regards  operating  expenses,  the company has
successfully coped with the upward pressure on input prices for various services
and  materials and  with optimising  expenditure volumes.  However, market price
increases  in  energy  costs  (electricity,  heating  and fuel) have still had a
negative  effect on the company's operating expenses, increasing operating costs
by  several hundred thousand euros and slightly reducing the company's operating
cost  efficiency ratio. Continuous  improvements in work  processes have made it
possible to keep labour costs 1.2% below the base year level.
This  year, Selver plans to  open two new stores  and to renovate and expand one
existing  store.  In  the  first  half  of  the  year, Laulasmaa Selver is being
renovated  and  expanded.  The  extension  works  are  proceeding  according  to
schedule,  and in May  the store will  be temporarily closed  to customers for a
couple  of weeks.  In the  second half  of the  year, Selver will open Papiniidu
Selver  in Pärnu, while operations at Pärnu  Mai Selver will be discontinued due
to  the expiry of the lease agreement.  Loo Selver in Jõelähtme Parish will also
be  opened in the second half  of the year. There are  also plans to convert the
refrigeration  equipment of one store  to a CO2 system  in order to improve cost
efficiency  and reduce negative  climate impact. The  focus remains on improving
supply  chain  efficiency,  preparations  for  the  implementation  of the Relex
inventory  management solution,  and increasing  volumes on  the Bolt Market and
Wolt platforms.
The  supermarket segment continues its strategic focus on developing sustainable
and  customer-centric solutions. In order to reduce environmental impact, Selver
has  taken steps towards paperless administration. The company has significantly
reduced the mass mailing of customer leaflets, directing paper-based direct mail
only  to selected campaigns or areas.  At Kulinaaria, active product development
has  further improved the flavours of its ready-meal range and reduced packaging
use.  The assortment of Selver and Delice  stores was supplemented with the Grøn
Balance product range, a Scandinavian white-label brand that is sold exclusively
in  Estonia through the Selver retail  chain. The range includes environmentally
friendly  laundry, cleaning and personal care products, as well as baby products
and  nappies. The range is aimed primarily at allergy sufferers and children and
carries  the internationally recognised Nordic  Swan Ecolabel and Asthma Allergy
Nordic certifications, confirming the safety and environmental sustainability of
the  products. At the same time,  Selver continues to expand measures supporting
healthier  customer choices by  offering a 15% discount  on fruit and vegetables
every Friday to encourage balanced and varied nutrition.
As  at the end of the year,  the supermarket segment comprises 72 Selver stores,
2 Delice  stores, the mobile store and a café, with a total sales area of 124.3
thousand  m². In addition, the segment  includes e-Selver, the online store with
the largest service area in Estonia, and the central kitchen Kulinaaria OÜ.
Department stores
The sales revenue of the department stores segment in the first quarter of 2026
was  22.8 million euros, which  was 0.4% higher than  in the same  period of the
previous  year. The  pre-tax loss  amounted to  1.8 million euros, increasing by
0.07 million euros compared with the same period last year.
In  the first  quarter, the  sales revenue  of the  department stores per square
metre  of selling  space was  0.3 thousand euros  per month, which was 1% higher
than  in the comparable period of the previous year. This year's winter discount
campaign  began  with  proper  winter  weather,  which  contributed  to a strong
campaign  performance and left  winter goods inventories  at a lower level after
the  campaign than  last year,  when the  winter months  were on average warmer.
Although  high utility bills had a negative impact on February sales, the spring
season  began very positively in March both  in the fashion departments and with
the  Beauty Time campaign, despite the  excavation works taking place on Laikmaa
Street in Tallinn, delivering the strongest growth ever recorded. The children's
department  in Tallinn, which was refurbished  in March last year, has attracted
customer  interest in  its assortment  and has  delivered better results in both
department  stores and in the e-store. With its distinctive assortment, the food
department has moved against the declining trend in Estonia's food retail sector
and   continues  to  post  monthly  growth  both  in  customer  numbers  and  in
performance.  Changes in digital marketing  have significantly increased traffic
to the e-store and, as a result, improved performance compared with the previous
year.
The  sales revenue of TKM  Beauty Eesti OÜ, which  operates the I.L.U. cosmetics
stores, amounted to 1.8 million euros in the first quarter of 2026, representing
a  decrease of 3,3% compared with the same period in 2025. In the first quarter,
the  loss was  0.1 million euros,  which was  0.04 million euros weaker than the
profit  reported in the comparable  period of 2025. Colder-than-usual weather in
January  and February  favoured purchases  of winter  sports and  fashion goods,
leaving  beauty  products  in  the  background.  This affected sales revenue and
created pressure for deeper promotional campaigns.
Car trade
The  sales revenue  of the  car segment  in the  first quarter of 2026 was 55.8
million euros. Sales revenue increased by 49.6% compared with the previous year.
The  segment's consolidated pre-tax profit in  the first quarter was 2.1 million
euros,  tripling compared with the  same period a year  earlier. As from 1 March
2026, the  results of Rohe Auto AS and  SKO Motors OÜ, acquired at the beginning
of March, have been consolidated into the results of the car segment. A total of
1,499 new vehicles were sold in the first quarter.
In  the  first  quarter,  the  Estonian  car  market  returned  to strong growth
(100.4%),  although this does not  yet indicate a full  recovery of the Estonian
car  market. Growth  was driven  mainly by  a low  comparison base,  while sales
continued  to take  place under  pricing pressure  and with larger discounts. In
Latvia  and Lithuania, the new passenger car market remained on a stable path of
moderate  growth. In  the first  quarter, the  Group's car  segment succeeded in
increasing  both sales revenue and profit. Results were supported by the stable,
albeit  moderate, growth of the Group's Baltic car dealerships and by the launch
of new KIA models by the importer. During the quarter, the Group's car companies
focused  on  improving  sales  processes,  more  specifically  through  targeted
marketing campaigns and increasing the share of electric vehicle models.
The  most significant event in  the Group's car segment  in the first quarter of
2026 was  the acquisition in Tallinn of two Shkoda dealerships - Rohe Auto AS and
SKO  Motors OÜ. This strategic step strengthens  the position of the car segment
in  the Estonian car market  and expands the Group's  cooperation with the Shkoda
importer  to  Tallinn  in  addition  to  Riga  and Vilnius, making the Group the
largest Shkoda dealer in the Baltics.
In  Lithuania, the growth of  the car segment is  supported by the new KIA-Shkoda
multi-brand  dealership in Vilnius, opened in November last year, which makes it
possible  to  offer  customers  a  wider  choice  of  vehicles and significantly
improves  sales and service capacity  in the largest market  in the Baltics. The
Lithuanian  dealership  has  been  well  received  by  customers and has started
operations   as   planned.   The  dealership's  modern  infrastructure  and  the
concentration  of several brands under one roof create a strong basis for growth
in sales volumes. In Estonia, construction of Viking Motors' new and modern body
repair workshop in Tallinn is continuing, with opening planned for the beginning
of  the  second  quarter.  This  will  be  the  largest and most technologically
advanced vehicle body repair workshop in the region, enabling substantially more
work to be carried out than before.
The  expanded KIA model range supports the direction of the Group's car business
to increase its presence both in the electric vehicle segment and in the compact
SUV  category,  particularly  in  light  of  growing  consumer  interest in more
affordable electric cars.
Security segment
The  security segment's external sales revenue for the first quarter of 2026 was
5.5 million euros, representing growth of 19.9% compared with the same period of
the  previous year. The segment's pre-tax  profit for the first quarter amounted
to  0.01 million euros, which was an  improvement of 0.15 million euros compared
with the same period last year.
In  the first  quarter, the  segment continued  to improve  its results.  Of the
business  areas, the strongest  growth was delivered  by the security technology
projects business, where profitability also recovered and the contract portfolio
increased.  Owing to  the challenging  economic environment,  pressure on profit
margins  remains in the  highly competitive market  and customers continue to be
price  sensitive. The increase in fuel prices  that began at the end of February
is  bringing further  direct and  indirect increases  in input  costs. The focus
remains on efficiency, the addition of new services and sales growth.
Real estate
The  real estate segment's external sales revenue for the first quarter of 2026
was  1.8 million euros, which was 6.2% lower than  in the same period last year.
During  the reporting period,  the segment earned  pre-tax profit of 2.2 million
euros, which was 1.9% lower than in the comparative period.
The decline in quarterly sales revenue was partly attributable to changes in the
rental  space and reconstruction works at Tartu Kaubamaja Centre. In the autumn,
one  of Estonia's most modern  sports clubs, MyFitness, will  open on the second
floor  of the building, operating on more  than 1,500 square metres of space. In
April,  a new footwear store  will begin operations in  the centre. In addition,
the  segment's quarterly sales revenue was reduced by the sale, at the beginning
of  last year, of commercial buildings leased by the Latvian real estate company
to external customers.
The  moderate  decline  in  the  real  estate segment's quarterly profit was due
primarily  to higher depreciation costs related to the addition of new buildings
and  to lower external sales  revenue. Profit was supported  by growth in intra-
group  sales revenue and lower loan interest  expense. In Vilnius, a new KIA and
Shkoda  showroom together with a  service building was opened  at the end of last
year.  At the end of  last year, the real  estate segment also acquired Ülemiste
Autokeskus.
Extension and reconstruction works are continuing at Laulasmaa Selver. In April,
the bodyshop building being constructed next to the KIA sales and service centre
in Peetri, on the outskirts of Tallinn, will be completed.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

-------------------------------------------------------------------------
                                                 31.03.2026   31.12.2025
-------------------------------------------------------------------------
  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                          32,529       29,516

  Trade and other receivables                        25,166       23,628

  Inventories                                       107,738      101,186
-------------------------------------------------------------------------
  Total current assets                              165,433      154,330
-------------------------------------------------------------------------
  Non-current assets

  Long-term receivables and prepayments                 218          217

  Investments in associates                           1,794        1,860

  Investment property                                76,191       76,162

  Property, plant and equipment                     448,493      438,977

  Intangible assets                                  29,565       26,429
-------------------------------------------------------------------------
  Total non-current assets                          556,261      543,645
-------------------------------------------------------------------------
  TOTAL ASSETS                                      721,694      697,975
-------------------------------------------------------------------------

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

  Borrowings                                         59,170       63,536

  Trade and other payables                          135,434      104,955
-------------------------------------------------------------------------
  Total current liabilities                         194,604      168,491
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        283,657      256,942

  Trade and other payables                            1,385        1,386

  Deferred tax liabilities                            6,897        6,893

  Provisions for other liabilities and charges          550          510
-------------------------------------------------------------------------
  Total non-current liabilities                     292,489      265,731
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 487,093      434,222
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                               119,862      120,630

  Retained earnings                                  95,844      124,228
-------------------------------------------------------------------------
  TOTAL EQUITY                                      234,601      263,753
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      721,694      697,975
-------------------------------------------------------------------------

CONDENSED  CONSOLIDATED  STATEMENT  OF  PROFIT  OR  LOSS AND OTHER COMPREHENSIVE
INCOME

In thousands of euros

  -----------------------------------------------------------------------------
                                                    3 months 2026 3 months 2025
  -----------------------------------------------------------------------------


   Revenue                                                228,393       214,934

   Other operating income                                     614           329



   Cost of merchandise                                   -167,654      -156,424

   Services expenses                                      -16,346       -15,751

   Staff costs                                            -29,406       -28,303

   Depreciation, amortisation and impairment losses       -10,622       -10,766

   Other expenses                                            -422          -368
  -----------------------------------------------------------------------------
   Operating profit                                         4,557         3,651
  -----------------------------------------------------------------------------
   Finance income                                             119           279

   Finance costs                                           -2,688        -2,709

   Share  of net profit of associates accounted for
   using the equity method                                     34            56
  -----------------------------------------------------------------------------
   Profit before tax                                        2,022         1,277
  -----------------------------------------------------------------------------
   Income tax expense                                      -6,736        -7,826
  -----------------------------------------------------------------------------
   NET PROFIT FOR THE FINANCIAL YEAR                       -4,714        -6,549
  -----------------------------------------------------------------------------
   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                                                    -4,714        -6,549
  -----------------------------------------------------------------------------
 Basic and diluted earnings per share (euros)               -0.12         -0.16



Raul Puusepp
Chairman of the Board
Phone +372 731 5000