Börsiteade

Pealkiri

Unaudited consolidated interim accounts for the fourth quarter and twelve months of 2025

Teade

Segments (EURm)              Q4/25 Q4/24   yoy   12m/25 12m/24   yoy
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 Supermarkets                 157.0 164.1  -4.3%   611.9  610.4  0.3%

 Department stores             32.2  33.2  -3.0%   103.0  104.2  -1.1%

 Cars                          41.8  51.2 -18.5%   176.9  200.8 -11.9%

 Security segment               6.4   6.0  6.8%     20.1   21.9  -8.1%

 Real Estate                    1.9   2.1 -12.5%     7.7    7.3  5.1%
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 Total sales                  239.2 256.6  -6.8%   919.6  944.6  -2.6%
-----------------------------------------------------------------------


 Supermarkets                   3.5   4.6 -23.3%    12.2   16.0 -24.0%

 Department stores              2.2   1.8  25.3%    -0.5   -0.3  47.6%

 Cars                           0.9   2.3 -59.2%     5.7   11.1 -48.5%

 Security segment               0.2  -0.1 -388.7%    0.0    0.2 -117.8%

 Real Estate                    2.1   5.5 -62.8%     9.0   11.1 -18.4%

 IFRS 16                       -0.6  -0.8 -33.0%    -2.1   -2.6 -21.0%
-----------------------------------------------------------------------
 Total profit/loss before tax   8.3  13.2 -37.1%    24.3   35.5 -31.4%
-----------------------------------------------------------------------

The Group's consolidated unaudited sales revenue for the fourth quarter of 2025
was  239.2 million euros, representing  a decrease of  6.8% compared to the same
period of the previous year. The total unaudited sales revenue for 2025 amounted
to  919.6 million euros, declining by 2.6% compared to the result for 2024, when
sales  revenue totalled 944.6 million euros.  The Group's consolidated unaudited
profit  before  tax  for  the  fourth  quarter  of  2025 was  8.3 million euros,
decreasing  by 4.9 million  euros compared  to the  same period  of the previous
year.  Profit before tax for 2025 amounted to 24.3 million euros, representing a
decline of 31.4% year on year.

In  a challenging  economic environment  and amid  declining sales  volumes, the
Group  achieved  a  profit  in  all  business  segments  in  the fourth quarter,
supported  by effective cost  control, flexible management  of operating volumes
and  the implementation  of internal  efficiency-enhancing measures. Compared to
the  previous  year,  profit  growth  was  recorded in the department stores and
security  segments. In summary for 2025, almost  all business segments ended the
year  with a  profit. Only  the department  stores segment  remained in a slight
loss.  The Group's sales revenue was  predictably most significantly affected by
the  substantial decline in  the car segment's  sales revenue. The motor vehicle
tax  introduced in  Estonia during  the reporting  year and  the resulting sharp
decrease  in demand led to a significant contraction in new passenger car sales,
with  total car sales in Estonia declining by  48.6% for the year and by as much
as  62.4% in the fourth quarter. Despite  the challenging market conditions, the
decline  in the  Group's car  segment sales  revenue in  the fourth  quarter was
limited  to 18.5%. For  2025, the Group's  car segment  sales revenue was 11.9%
lower  than in the previous year. Weakness  in the Estonian market was partially
offset by more stable sales results of the subsidiaries in Latvia and Lithuania.
In  the  continuing  cooling  economic  environment,  the  Group's  other retail
segments also recorded a slight decline in sales revenue. In the fourth quarter,
the security segment increased its sales revenue. Continuous improvement of work
processes and optimisation of the supply chain in cooperation with the logistics
centre have helped to keep labour costs under control. Labour costs increased by
0.4% in  the fourth quarter, while the  average number of employees decreased by
2.3%. For the reporting year, labour costs increased by 3.7%. The Group has also
kept other operating expenses stable, with annual growth of 0.2%. Net profit was
positively  affected  by  a  decline  in  interest  on  the  Group's borrowings,
providing  relief of  1.5 million euros  for the  year compared  to the previous
year.  The company's income tax expense  decreased by 1.2 million euros in 2025
due to the recalculation of deferred income tax in accordance with International
Financial  Reporting Standards applicable in Estonia and Latvia. The comparative
fourth quarter of the base year included one-off profit of 4.0 million euros. Of
this,  2.1 million euros resulted from  the revaluation of investment properties
(the  corresponding figure in the fourth  quarter of 2025 was 0.3 million euros)
and  1.9 million euros  from extraordinary  profit arising  from the sale of two
non-core properties in the Group's real estate segment in Latvia. As a result of
the  sale of these properties, the  real estate segment's external sales revenue
decreased in the reporting year.

The  most significant investment of  the year was the  completion of the Group's
new  multi-brand car showroom in  Vilnius, where sales and  servicing of KIA and
Shkoda  vehicles commenced.  The new  showroom provides  a strong  foundation for
further  growth in the  Lithuanian market and  across the Baltic  States. In the
Selver  supermarkets segment, Jõgeva Selver was renovated in the fourth quarter.
In  the department  stores segment,  the comprehensive  upgrade of the I.L.U. e-
commerce platform, offering enhanced marketing capabilities, was completed, with
the  launch scheduled  for the  first quarter  of 2026. Earlier in the reporting
year,  renovation works were carried out in  the first quarter in the department
stores  segment  on  two  floors  of  the  Children's World at Kaubamaja Tallinn
department  store. The renewed Children's World was opened in March. In Estonia,
construction  works are ongoing to establish a new bodywork workshop adjacent to
the  Peetri car  dealership. Preparations  have also  commenced for  the planned
development  of a new Selver  store in Pärnu Papiniidu  and for the expansion of
Laulasmaa Selver, both scheduled for opening in 2026.

Selver supermarkets

The  consolidated sales revenue  of the Selver  supermarkets business segment in
the fourth quarter of 2025 was 157.0 million euros, representing a 4.3% decrease
compared to the same period of the previous year. Consolidated sales revenue for
2025 amounted  to 611.9 million euros,  increasing by 0.3% year  on year. In the
fourth  quarter of 2025, profit before tax  was 3.5 million euros and net profit
to  1.4 million euros, which were respectively 1.1 million euros and 4.2 million
euros  lower than in the  base period. The difference  between profit before tax
and  net profit arose from a change  in deferred income tax liability calculated
on  dividends. For the reporting year, the consolidated profit before tax of the
supermarket  segment amounted to 12.2 million euros, which was 3.8 million euros
below  the comparative base. Net profit  for 2025 amounted to 9.5 million euros,
decreasing  by  6.0 million  euros  compared  to  the previous year. The average
monthly  sales revenue of goods per square metre of sales area in 2025 was 0.40
thousand  euros (the comparable figure in  2024 was 0.41 thousand euros), and in
the  fourth quarter 0.41 thousand euros (the comparable figure in 2024 was 0.43
thousand  euros). On the comparable stores, the average monthly sales revenue of
goods  per square metre of sales area  in 2025 was 0.41 thousand euros (the same
figure  in 2024 was also  0.41 thousand euros), and  in the fourth quarter 0.42
thousand  euros (the  same figure  in 2024 was  0.43 thousand euros). In 2025, a
total  of 44.4 million purchases were made in  stores, remaining at the level of
the previous year.

When  analysing  the  financial  results,  it  should  be  considered  that  the
comparative data for the period under review do not fully reflect the operations
of  the Raadi and Rocca  al Mare Selver stores,  which were opened in the fourth
quarter  of 2024. At the same time, the  base data include the results of Maardu
Selver,  which  was  closed  in  February  2025. The renovation and expansion of
Jõgeva  Selver  had  a  negative  impact  on financial performance in the fourth
quarter, as this involved one-off additional costs and a temporary suspension of
sales activities. Selver's fourth-quarter sales results continued to be affected
by  the general weakness of the Estonian  economy and the retail environment, as
well  as by the decline in  customers' purchasing power resulting from increases
in  income tax and the VAT rate.  According to Statistics Estonia's data for the
first  eleven  months  of  2025, sales  revenue  at current prices in the retail
segment  of  non-specialised  stores,  where  food products, tobacco and alcohol
predominate,  increased by 2.3%, while sales volumes have remained in decline at
approximately  3%. Selver's sales revenue growth in  the most recent quarter was
slower  than that of the  market segment. The main  reasons for the decline were
the  increased share  of promotional  products and  products with  a lower price
image  in the shopping basket, as well as  a deeper decline in sales of everyday
consumer  goods  and  industrial  goods.  The  financial  results for the fourth
quarter  of 2025 were affected by a decrease in sales volumes. At the same time,
the  Group has  successfully coped  with pressure  from rising  input prices for
various services and materials and with the optimisation of expenditure volumes,
as  a result of  which the segment's  operating expenses increased  by only 1%.
Pressure  on wage costs and sales revenue growth lagging behind wage growth have
led to a slight decline in labour productivity.

The  supermarket  segment  continues  to  operate  responsibly and with a strong
commitment  to  sustainability,  with  the  aim  of  continuously  improving its
operations  to reduce environmental impact. The recently renovated Jõgeva Selver
has  taken a major step towards  sustainability by switching to energy-efficient
solutions  that reduce the store's  environmental footprint by approximately one
third.  The  building's  refrigeration  systems  were  converted  to a CO?-based
solution,  the waste  heat of  which is  smartly used  for heating  premises and
water. Across the segment, the optimisation of product assortments and processes
remains  a key focus. To better adapt  to changing customer demand, Selver added
the  Scandinavian white-label brand First Price to its assortment this year; the
brand  is  available  exclusively  at  Selver  and Delice. The First Price range
represents  affordable pricing and reliable  Scandinavian quality, expanding the
selection  of the most competitively  priced everyday products. During 2025, the
logistics centre established in Maardu in 2024 was brought fully into operation.
Focus  also remains on increasing  activity volumes on the  Bolt Market and Wolt
platforms  and  on  the  further  development  of  Selver's e-shop. The circular
economy  is also supported, as mono-material bags  are used at the baking points
of all Selver stores. This improvement makes subsequent sorting and recycling of
packaging significantly easier for consumers.

At  the beginning of 2025, Selver's e-shop was selected as the Estonian people's
favourite  store  in  the  food  and  consumer  goods  category in a public vote
organised  by the Estonian  E-commerce Association. In  April, Selver joined the
Vägivallavabaks   (Violence-Free)   employer   initiative   launched  under  the
leadership   of  the  President  Kaljulaid  Foundation,  which  brings  together
employers'  efforts to  combat domestic  violence. In CVKeskus.ee's 2025 survey,
Selver  ranked among the  twenty most desirable  employers in Estonia, achieving
19th place.

As of the end of December, the supermarket segment included 72 Selver stores, 2
Delice  stores, a Mobile  Store, and a  café, with a  total sales area of 123.8
thousand  square metres.  In addition,  there is  e-Selver, which is the largest
online store in Estonia by service area, and the central kitchen, Kulinaaria OÜ.

Department stores

The  sales  revenue  of  the  department  stores  business segment in the fourth
quarter  was 32.2 million euros, remaining 3.0% below  the level of the previous
year.  Sales  revenue  for  2025 totalled  103.0 million  euros,  representing a
decrease  of  1.1% compared  to  the  preceding  year. Profit before tax for the
fourth quarter amounted to 2.2 million euros, which was 25.3% higher than in the
comparable  period of the previous year. For 2025, the department stores segment
recorded  a loss  before tax  of 0.5 million  euros, which was 0.2 million euros
lower than the result a year earlier.

The  average monthly sales revenue  per square metre of  sales area at Kaubamaja
department  stores in 2025 amounted to 0.32 thousand euros, which was 0.8% lower
than in the previous year. In 2025, promotional campaigns performed consistently
very well, with both the autumn Ilu Aeg campaign and Osturalli proving to be the
most  successful  to  date.  However,  fourth-quarter  results  were  negatively
affected  by warmer-than-average winter months,  which reduced demand for winter
boots  and warm outerwear, while the first  frosts only arrived at the beginning
of   2026. In  Kaubamaja's  food  retail  operations,  the  distinctive  product
assortment  compared to competitors continued to  attract new loyal customers to
the Food Worlds, and sales results exceeded expectations. December delivered the
best  results of all time  for Kaubamaja Food Worlds.  In November, a completely
renewed  café was opened in the Women's  World area in cooperation with top chef
Anni  Arro, which generated increased interest  among Kaubamaja visitors. In the
first  months of the  year, renovation works  were carried out  on two floors of
Tallinn  Children's World, and in March the department was reopened with a fully
renewed  concept.  New  brands  were  added along with lifestyle-based displays,
which  attracted strong customer interest.  Kaubamaja has also received positive
attention from exclusive special collections available only at Kaubamaja. During
the   spring  season,  an  exclusive  anniversary  collection  was  launched  in
cooperation  with  Lilli  Jahilo,  the  autumn  campaign  featured  a  jewellery
collection  by Sigrid Kuuse, and a new  private label PAI brand ("PAI", inspired
by  the Estonian word for a gentle  touch) bedding collection designed by Kätlin
Kaljuvee.   Customer   interest   in   the   e-store   sales  channel  increased
significantly, showing double-digit growth compared to the previous year.

The  sales revenue of OÜ  TKM Beauty Eesti, which  operates the I.L.U. cosmetics
stores,   amounted  to  2.6 million  euros  in  the  fourth  quarter  of  2025,
representing a decrease of 7.1% compared to 2024. Fourth-quarter profit amounted
to 0.02 million euros, which was 0.1 million euros lower than the result for the
fourth  quarter of 2024. Continued consumer  caution in purchasing decisions and
high price sensitivity also characterised sales in the fourth quarter. Christmas
sales  likewise fell short of  expectations, while meeting customer expectations
required  more aggressive pricing campaigns,  which reduced sales margins. Sales
revenue for 2025 totalled 8.2 million euros, which was 5.4% lower than in 2024.
The  loss for 2025 amounted to 0.15 million  euros, which was 0.39 million euros
weaker  than  the  result  of  the  previous  year.  The focus was on optimising
inventory levels and shaping an appropriate brand portfolio for stores operating
under  the  new  concept.  In  addition,  the  key development activities of the
renewed  e-shop, offering broader marketing  opportunities, were completed, with
the launch scheduled for the first quarter of 2026.

Car trade

Sales  revenue of the car segment in the fourth quarter amounted to 41.8 million
euros, which was 18.5% lower than in the same period of the previous year. Sales
revenue for 2025 totalled 176.9 million euros, representing a decrease of 11.9%
compared  to the previous year.  A total of 5,140 new  vehicles were sold during
the  year, including 1,115 vehicles in the  fourth quarter. The segment's profit
before  tax for the fourth quarter of 2025 was 0.9 million euros, which was 1.3
million  euros  lower  than  in  the  corresponding period of the previous year.
Profit  before  tax  for  2025 amounted  to  5.7 million  euros,  representing a
decrease of 48.5% compared to the previous year.

The  year 2025 proved to be highly uneven in the Baltic car market. The Estonian
passenger  car  market  declined  by  approximately  50% year on year, while the
markets in Latvia and Lithuania grew by around 30% and 40%, respectively. In the
fourth  quarter, the  downturn in  the Estonian  car market  deepened further to
62%. The  decline in sales  volumes resulting from  the collapse of the Estonian
market  was partially offset  by the Group's  cross-Baltic business model in the
car  segment, supported by more stable retail  sales in Latvia and Lithuania and
the  continued  import  of  KIA  vehicles  across  the  Baltic  States. The most
significant  event of the  year was the  opening of the  Group's new multi-brand
showroom  in  Vilnius,  where  sales  and  servicing  of  KIA and Shkoda vehicles
commenced.  The new showroom provides a  strong foundation for further growth in
the   Lithuanian   market   and  across  the  Baltic  States.  In  Estonia,  the
establishment of Viking Motors' body repair workshop is progressing according to
schedule,  with  completion  planned  for  spring  2026, which  will support the
expansion of after-sales capabilities in Estonia.

In  November, Kia's  fully electric  van PV5  entered the  Baltic market and was
awarded the international title "2026 International Van of the Year".

At  the beginning of January 2026, as a significant post-balance-sheet event, an
agreement  was signed to acquire Rohe Auto AS and SKO Motors OÜ, whose principal
activities  are the retail  and wholesale sale  of Shkoda-branded vehicles, spare
parts  and  accessories,  as  well  as  the  provision of maintenance and repair
services in the Tallinn and Harju County region. The transaction will strengthen
the  position of the TKM  Group's car segment in  Estonia and the Baltic States,
create synergies and add resilience to the Group's portfolio.

Security segment

The  security segment's external sales revenue in the fourth quarter of 2025 was
6.4 million  euros,  increasing  by  6.8% compared  to  the  same  period of the
previous  year. The segment  recorded profit before  tax of 0.2 million euros in
the fourth quarter, representing an improvement of 0.2 million euros compared to
the  corresponding period a year earlier.  The security segment's external sales
revenue  for 2025 amounted to 20.1 million  euros, declining by 8.1% compared to
the  previous year. The segment recorded a loss before tax of 0.04 million euros
for 2025, which was 0.3 million euros weaker than the result for the same period
of the previous year.

In   the   fourth  quarter,  the  segment's  turnover  returned  to  growth  and
profitability  also  improved.  The  strongest  growth  was  recorded  in manned
guarding and technical project construction, where both sales revenue and profit
increased. The economic environment remains challenging, with continued pressure
from   rising   input   costs,  high  customer  price  sensitivity  and  intense
competition.  The security segment  is focusing on  service development projects
with  the aim of bringing several  new services to market. Improving operational
efficiency and increasing sales remain key priorities.

Real estate

The  real estate segment's external sales revenue in the fourth quarter of 2025
amounted  to  1.9 million  euros,  declining  by 12.5% compared to the reference
period.  The segment's profit before tax  for the fourth quarter was 2.1 million
euros,  representing a decrease  of 62.8% compared to  the reference period. The
segment's  external  sales  revenue  for  2025 amounted  to  7.7 million  euros,
increasing  by 5.1% compared to the same period  of the previous year. In 2025,
the  real estate segment generated profit before tax of 9.0 million euros, which
was 18.4% lower than in the previous year.

Sales  revenue growth in 2025 was primarily  supported by the addition of rental
income  from  the  logistics  centre  leased  to  an external third party, which
commenced  operations at the end of 2024. The decline in quarterly sales revenue
was driven by the absence of external sales revenue from the Latvian real estate
company,  as the commercial  properties leased to  external parties were sold at
the  beginning of the year. Sales revenue also declined in fourth quarter at the
real estate company managing Tartu Kaubamaja centre, in connection with a change
of tenants in the centre. The decrease in profit during the reporting period was
caused   by  comparative  data  that  included  one-off  gains.  Income  in  the
comparative  period reflects a  gain of 1.9 million  euros from the  sale of the
Ogre  and R?zekne commercial properties to  external parties by the Latvian real
estate  company at the  end of the  previous year, as  well as an annual gain of
2.1 million  euros from the revaluation of assets  to fair value. Changes in the
fair  value of  assets did  not have  a material  impact on profit in 2025, with
revaluation  gains  amounting  to  0.3 million  euros.  Profit for the reporting
period  was  also  positively  affected  by  lower  borrowing costs, as interest
expenses in the segment declined by one quarter.

In  cooperation with  Enefit Volt,  the installation  of public electric vehicle
charging  stations in  the car  parks of  Selver stores  and shopping centres is
continuing.  Throughout 2025, marketing activities  were consistently centred on
the  20th anniversary  of  Tartu  Kaubamaja  and  the 10th anniversary of Viimsi
Centre,  with the  celebrations placing  strong emphasis  on engaging  the local
community.  An important event at the beginning of the year was also the opening
of   a  Vapiano  restaurant  in  Viimsi  Centre,  which  enhanced  the  centre's
attractiveness for customers and increased footfall.

The  logistics centre  completed in  autumn 2024 was  awarded a BREEAM Excellent
certification   in   June  and  confirmed  as  compliant  with  A  energy  class
requirements  under the EU Taxonomy. In Vilnius, construction of the new KIA and
Shkoda  showroom and service building  was completed at the  end of the year, and
the showroom was opened for customer service. Extension and reconstruction works
are  ongoing at Laulasmaa  Selver. In spring  2026, a bodywork workshop building
adjacent  to the KIA sales  and service centre in  Peetri, near Tallinn, will be
completed.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

-------------------------------------------------------------------------
                                                 31.12.2025   31.12.2024
-------------------------------------------------------------------------
  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                          29,516       45,454

  Trade and other receivables                        23,628       30,310

  Inventories                                       101,186       97,091
-------------------------------------------------------------------------
  Total current assets                              154,330      172,855
-------------------------------------------------------------------------
  Non-current assets

  Long-term receivables and prepayments                 217          235

  Investments in associates                           1,860        1,733

  Investment property                                76,162       81,284

  Property, plant and equipment                     438,977      424,794

  Intangible assets                                  26,429       25,785
-------------------------------------------------------------------------
  Total non-current assets                          543,645      533,831
-------------------------------------------------------------------------
  TOTAL ASSETS                                      697,975      706,686
-------------------------------------------------------------------------

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

  Borrowings                                         63,536       44,436

  Trade and other payables                          104,955      110,997
-------------------------------------------------------------------------
  Total current liabilities                         168,491      155,433
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        256,942      279,958

  Trade and other payables                            1,386        1,285

  Deferred tax liabilities                            6,893        7,939

  Provisions for other liabilities and charges          510          543
-------------------------------------------------------------------------
  Total non-current liabilities                     265,731      289,725
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 434,222      445,158
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                               120,630      112,167

  Retained earnings                                 124,228      130,466
-------------------------------------------------------------------------
  TOTAL EQUITY                                      263,753      261,528
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      697,975      706,686
-------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

  -----------------------------------------------------------------------------
                                                                         12
                                                                        months
                        IV quarter 2025 IV quarter 2024 12 months 2025   2024
  -----------------------------------------------------------------------------
   Revenue                      239,217         256,635        919,648  944,568

   Other operating
   income                           817           4,719          2,075    5,971



   Cost of merchandise         -170,123        -185,115       -665,038 -684,797

   Service expenses             -16,470         -16,552        -61,654  -61,503

   Staff costs                  -31,469         -31,350       -116,442 -112,241

   Depreciation,
   amortisation and
   impairment losses            -10,513         -11,488        -42,495  -43,174

   Other expenses                  -413            -219         -1,172   -1,250
  -----------------------------------------------------------------------------
   Operating profit              11,046          16,630         34,922   47,574
  -----------------------------------------------------------------------------
   Finance income                    43              87            451      514

   Finance costs                 -2,939          -3,611        -11,344  -12,889

   Finance income on
   shares of associates
   accounted for using
   the equity method                165             115            297      281
  -----------------------------------------------------------------------------
   Profit before tax              8,315          13,221         24,326   35,480
  -----------------------------------------------------------------------------
   Income tax expense             1,028          -2,690         -6,799   -8,003
  -----------------------------------------------------------------------------
   NET PROFIT FOR THE
   FINANCIAL YEAR                 9,343          10,531         17,527   27,477
  -----------------------------------------------------------------------------
   Other comprehensive
   income:

   Items that will not
   be subsequently
   reclassified to
   profit or loss

   Revaluation of land
   and buildings                 11,172               0         11,172        0
  -----------------------------------------------------------------------------
   Other comprehensive
   income for the
   financial year                11,172               0         11,172        0
  -----------------------------------------------------------------------------
   TOTAL COMPREHENSIVE
   INCOME FOR THE
   FINANCIAL YEAR                20,515          10,531         28,699   27,477
  -----------------------------------------------------------------------------
 Basic and diluted
 earnings per share
 (euros)                           0.23            0.26           0.43 0.67



Raul Puusepp
Chairman of the Board
Phone +372 731 5000