Market announcement

Title

Liven AS - Consolidated unaudited interim report for the I quarter of 2026

Message

A webinar on the presentation of the results (in Estonian) will take place on
21 April at 13:00 (EEST), more information
(https://view.news.eu.nasdaq.com/view?id=1434105&lang=et). English translation
of the webinar transcription will be made available on www.liven.ee/investor
(http://www.liven.ee/investor).

Instead  of the usually quieter beginning of the year, the activity from the end
of  the previous year persisted in the first quarter, and we doubled last year's
sales  performance. In total,  we concluded 54 sales  contracts (contracts under
the  law of obligations; Q1 2025: 25; Q4 2025: 60) during the quarter, including
3 sales  contracts in Berlin.  The largest contribution  to new contracts signed
during  the  quarter  came  from  sales  in  the  Iseära, Luuslangi, and Olemuse
projects.

Relatively  high supply volume kept the ratio mostly below the 1.5% level at the
beginning  of the  first quarter,  but the  growth trend  that started  in March
indicates the market's continued strong recovery in demand. The ratio fluctuates
over time due to the sales and supply cycles of project.

Sales  contracts signed during the period that  are not transferred under a real
right  contract within  the same  period are  recognized as  presales. As of the
beginning  of the quarter, the estimated monetary value of previously recognized
presales was EUR 33.7 million, of which EUR 32.3 million was in projects planned
for completion during 2026.

During  the quarter, we signed new contracts  in the sales revenue volume of EUR
13.0 million,  and presales from  new sales made  during the quarter amounted to
EUR  10.4 million. This includes  construction to be  completed in both 2026 and
2027. We  enter the second  quarter of 2026 with  133 contracts under the law of
obligations  and a  presale volume  of EUR  39.7 million, of which 119 contracts
under  the law of obligations and a sales revenue volume of EUR 35.0 million are
in buildings to be completed during 2026. Presales do not include Phase I of the
Peakorter project, as the 50/50 joint venture results are not consolidated line-
by-line and sales revenue is not reflected in the consolidated results.

In  Q1,  we  handed  over  a  total of 14 homes (Q1 2025: 6; Q4 2025: 83). These
included  12 freshly  completed  homes  in  the  Regati project and 2 previously
completed  homes in the Iseära project.  The first quarter of 2026 sales revenue
was  EUR  6,937 thousand  (Q1  2025: EUR  1,931 thousand;  Q4  2025: EUR 34,888
thousand)  and net profit  was EUR 420 thousand  (Q1 2025: EUR -705 thousand; Q4
2025: EUR 5,014 thousand).

Over the last 12-month period, we have signed 205 new sales contracts, delivered
147 homes, generated revenue of EUR 54,293 thousand and net profit of EUR 6,539
thousand.

Consolidated statement of financial position

 (in thousands of euros)           31 March 2026 31 December 2025 31 March 2025
-------------------------------------------------------------------------------
 Current assets

 Cash and cash equivalents                 8,054            8,553         9,916

 Trade and other receivables                 985            1,456            56

 Prepayments                                 915              531           635

 Inventories                              72,377           71,009        75,349

 Total current assets                     82,331           81,549        85,956

 Non-current assets

 Trade and other receivables               1,585            1,535             0

 Prepayments                                  44               44            44

 Investment properties                     6,395            1,960         1,350

 Property, plant and equipment               265              296           406

 Intangible assets                           460              467           395

 Right-of-use assets                         600              606           659

 Total non-current assets                  9,349            4,908         2,854



 TOTAL ASSETS                             91,681           86,457        88,810



 Current liabilities

 Borrowings                               15,369           11,882         2 039

 Trade and other payables                 13,419           13,822        11,789

 Provisions                                   95               97            50

 Total current liabilities                28,884           25,801        13,878

 Non-current liabilities

 Borrowings                               36,428           34,850        55 645

 Trade and other payables                  2,200            2,065         1 610

 Provisions                                  144              151            89

 Total non-current liabilities            38,771           37,066        57,344

 Total liabilities                        67,655           62,866        71,222

 EQUITY

 Share capital                             1,200            1,200         1,200

 Share premium                             9,593            9,586         9,575

 Share option reserve                        259              262           331

 Own (treasury) shares                        -3               -4            -8

 Statutory capital reserve                   120              120           118

 Retained earnings (prior periods)        12,437            7,012         7,077

 Profit for the year                         420            5,414          -705

 Total equity                             24,026           23,590        17,588

 TOTAL LIABILITIES AND EQUITY             91,681           86,457        88,810
-------------------------------------------------------------------------------


Consolidated statement of comprehensive income

  (in thousands of euros)                  2026 3 months    2025 3 months
                                           January-March)   (January-March)
----------------------------------------------------------------------------
  Revenue                                           6,937             1,931

  Cost of sales                                    -5,568            -1,698

  Gross profit                                      1,369               233

  Distribution costs                                 -455              -454

  Administrative expenses                            -393              -461

  Other operating income                               14                22

  Other operating expenses                            -17               -27

  Operating profit                                    518              -687

  Finance income                                       66                14

  Finance costs                                      -164               -33

  Total finance income and finance costs              -98               -19

  Profit before tax                                   420              -705

  Income tax expense                                    0                 0

  Profit for the year                                 420              -705
----------------------------------------------------------------------------
  Attributable to owners of the parent                420              -705

  Comprehensive income for the year                   420              -705

  Attributable to owners of the parent                420              -705

  Basic earnings per share                          0.035            -0.059

  Diluted earnings per share                        0.034            -0.058
----------------------------------------------------------------------------


The customer satisfaction score for the last 12 months, collected at various
stages of the customer journey, remained stably high at the end of the 2025
Q4-9.6 points out of 10 (Q1 2025: 9.5; Q4 2025: 9.6).

Key events
In January, we signed a general contract with Mitt & Perlebach OÜ for the
construction of the next residential buildings in Phase II of the Luuslangi
project, where they also serve as the general contractor for the earlier
buildings. The 39 homes at Jalami 4 are scheduled for completion in first half
of 2027.

In  January, we refinanced the  loan liabilities of the  Regati project with the
previous financier, secured by the completed homes, as well as the costs arising
from additional and modification works.

In February, the Tallinn City Council approved the detailed spatial plan for the
Kadakadabra development

In  February, the  Supervisory Board  decided to  approve the Management Board's
proposal  to continue the project being developed at Juhkentali 48 with a rental
housing concept. The architectural competition that began at the end of 2025 was
won  by architecture firm Apex  with their entry "Jauch",  on the basis of which
further development of the project will proceed.

To  develop future  projects, we  established three  new 100% owned companies in
Estonia  in March: Liven Kodu 25 OÜ, Liven Kodu 26 OÜ, and Liven Kodu 27 OÜ. The
share  capital of  all companies  is EUR  2,500, and the three-member Management
Board includes Andres Aavik, Mihkel Simson, and Andero Laur.

Events after the reporting period
We continued preparations and announced our intention to organize an initial
public offering this spring and to apply for the admission of shares to trading
on the main list of the Nasdaq Tallinn Stock Exchange.

In  April, the Supervisory Board decided to cancel previous options for 191,850
shares  with personalized targets  and replace them  with new options  for up to
508,500 shares.  The vesting period for the new  options is at least 3 years and
they  assume the admission  of Liven's shares  to trading on  the Nasdaq Tallinn
Stock  Exchange. The vesting targets are  divided incrementally over 5 years and
are  based on the  six-month average share  price, ranging from  EUR 8.95 to EUR
10.64.

The Annual General Meeting of Liven AS was held on 9 April 2026, attended by 28
shareholders  representing 93.5% of  votes. The  shareholders approved the 2025
annual  report  and  a  dividend  of  EUR 1,362 thousand. In connection with the
planned  public offering,  they also  approved preparations  for the process and
share  listing, excluded existing shareholders' pre-emptive subscription rights,
and  amended  the  Articles  of  Association  to  extend the Supervisory Board's
authority to increase share capital.

In  April,  we  authorised  a  notary  to  file  an  application with the Berlin
Charlottenburg  Commercial Register for  the establishment of  a new subsidiary,
Liven  P19  GmbH  (100%  owned),  for  the  development  of  a  future  project.
Registration is expected in Q2 2026.

Economic environment overview
The first quarter of 2026 was characterized by opposing trends: recovery in
Estonian household purchasing power and deepening geopolitical uncertainty.
Although the European Central Bank (ECB) kept key interest rates unchanged in
March, uncertainty pushed the 6-month Euribor to 2.475% by quarter-end (31 March
2025: 2.39%; 31 December 2025: 2.14%). The ECB forecasts inflation at
2.6%, 2.0%, and 2.1% for 2026-2028, suggesting a broadly stable monetary policy
outlook.

Despite   interest   rate   pressure,  Estonia's  macroeconomic  environment  is
normalising. Although inflation remains above the Eurozone average, price growth
slowed   to   3.6% in   Q1   2026 (Q1   2025: 4.4%; Q4   2025: 4.1%), indicating
stabilisation.  According to Eesti Pank, inflation is expected at around 3.8% in
2026, driven by production costs, tax increases and continued wage growth.

Based  on the latest available data  from Statistics Estonia and our assessment,
the  average gross wage  grew by nearly  6.2% year-on-year in the first quarter,
outpacing  consumer price  growth. A  unified tax-free  minimum, which came into
effect  at the beginning of 2026, plays  a significant role in improving housing
affordability,  increasing  the  monthly  net  income  and borrowing capacity of
households.

According  to  the  Land  and  Spatial  Development  Board's  purchase and sales
statistics,  2,074 apartment ownership transactions  were made in  Tallinn in Q1
2026 (Q1 2025: 2,127; Q4 2025: 2,193). This is 5.9% below the record level of Q4
2025 (2,203  transactions). From the  perspective of new  developments, both the
annual comparison and quarterly activity indicate a trend towards stable growth.

Compared  to Q4  2025, sales offers  and average  prices for new developments in
Tallinn  remained broadly stable in Q1  2026. According to Citify.eu, the number
of  new apartment  sales offers  increased by  8.8% quarter-on-quarter to 3,008
units  (Q4 2025: 2,765) and by  11.0% year-on-year (Q1 2025: 2,711). The average
price per square metre rose by 2.8% to EUR 5,129/m² (Q4 2025: EUR 4,991/m²).

According  to  Citify.eu  data,  445 sales  contracts  were  signed in the first
quarter, which is 20.9% more compared to the previous quarter (Q4 2025: 368) and
23.6% more compared to the same period last year (Q1 2025: 360). Additionally, a
total  of 216 apartments and terraced houses  were sold in the surrounding areas
of  Tallinn during  the first  quarter, which  was 46.9% more  than in  the same
period  last  year  (Q1  2025: 147), indicating  a  greater  recovery  in demand
specifically outside Tallinn.

Although  the stock of completed apartments on the market has clearly grown over
the  last three  years, the  relatively high  transaction activity  in the first
quarter of 2026 reduced the stock to 916 apartments (31.03.2025: 939 apartments;
31.12.2025: 1,063 apartments).  Completed apartments accounted for an average of
32.7% of the total supply in the first quarter (Q1 2025: 37.7%; Q4 2025: 35.9%).

Outlook for the future
The remaining nine months of 2026 will be characterized by the interaction of
opposing factors. While the unified tax-free minimum that came into effect at
the beginning of the year and real wage growth have improved household incomes
and confidence, global political uncertainty and higher-than-expected Euribor
volatility have added caution to the market. During the year, we may hand over
up to 268 homes and commercial units from completed and ongoing buildings, with
an estimated sales volume of EUR 86 million. We consider it realistic to realize
around two-thirds of this, implying over 190 handovers and roughly 20% sales
growth to nearly EUR 59 million.

During  the  year,  we  have  the  potential  to  hand  over up to 268 homes and
commercial  units from completed and ongoing  buildings, with an estimated sales
volume of EUR 86 million. We consider it realistic to realize approximately 2/3
of  the  potential  volume,  implying  over  190 handovers and roughly 20% sales
growth  to nearly  EUR 59 million.  We also  expect net  profit to  increase and
return on equity to exceed 20% target.

At  the  beginning  of  the  second  quarter,  we  have  133 homes and a presale
portfolio of EUR 39.7 million, of which we expect the completion of construction
and  handovers in the amount of EUR  35.0 million in 2026. In addition to market
demand,  the sales  revenue achieved  also depends  on the  timely completion of
construction and handovers before the end of the year.

We  laid the foundation for a strong 2026 with sales and construction started in
the  previous  year,  and  continue  to  build  towards  2027 and beyond. Of the
projects currently under construction, Peakorter phase I, the final buildings of
Luuslangi phase II, and Wohngarten in Berlin will be completed in 2027.

In  line with Liven's business model, construction loan volumes are cyclical and
depend  heavily on the composition of  the development portfolio. Due to ongoing
construction work, we anticipate an increase in the volume of construction loans
until mid-2026.

We  expect the  completion of  the protracted  planning procedure  regarding the
Erika 12 property.

While  our  current  land  portfolio  provides  work  for  years to come, we see
opportunities  in the market  to acquire new  properties that would  allow us to
significantly increase the volumes of supply and sales revenue in the long term.
We  are continuing active negotiations for the acquisition of properties in both
Tallinn  and Berlin, as well as preparations  for an initial public offering and
admission to trading on the Main List of the Nasdaq Tallinn Stock Exchange.


Joonas Joost
Liven AS CFO
E-mail: [email protected]