Annual Report and Accounts 2024

We love transactions!

BCG exists to connect consumers with listers

STRATEGIC REPORT

1. Strategic Highlights

1. Chair's Statement

1. CEO's Statement
2. Market Overview

1. Our Business at a Glance
2. • Our business model
   • Our market position
   • Our purpose and culture
   • Our strategy
   • Why invest in us

1. Moving our Strategy Forward

1. Financial Review

1. Operational Review
2. Section 172(1) Statement
3. Sustainability Report
4. • The Task Force for Climate-Related Financial Disclosure ("TCFD") Report
   • Non-financialand Sustainability
     Information Statement

GOVERNANCE REPORT

41 Corporate Governance Report

• Letter from the Chair of the Board Trevor Mather
• Board of Directors
• Senior Management
• Corporate Governance Statement 2024
• Board Leadership and Company Purpose
• Division of Responsibilities
• Board Composition, Succession and Evaluation

1. Nomination Committee Report

1. Audit Committee Report

1. Directors' Remuneration Report

1. Directors' Report

FINANCIAL STATEMENTS

71 Independent Auditor's Report to the

Members of Baltic Classifieds Group PLC

1. Consolidated Statement of Profit or Loss and Other Comprehensive Income
2. Consolidated Statement of Financial Position
3. Consolidated Statement of Changes in Equity
4. Consolidated Statement of Cash Flows
5. Notes to the Consolidated Financial Statements
   • Going concern

1. Company Statement of Financial Position
2. Company Statement of Changes in Equity
3. Notes to the Company Financial Statements

and help them transact more easily.

1. Risk Management
2. • Principal risks and uncertainties

1. Viability Statement

ADDITIONAL INFORMATION

113 Glossary

113 Shareholder Information

Strategic Highlights

The Group's objective is to provide trusted marketplaces to connect sellers and buyers across the Baltic region through user-friendly and feature-rich portals, resulting in a smooth transaction experience for all involved parties.

We believe the Group accomplishes this goal through its portfolio of leading brands, individually strong market positions, and scalable business model.

Our objective is to sustain profitable growth by implementing gradual price adjustments for our core classifieds portals, bolstered by compelling value propositions and the introduction of new products and features. Additionally, we plan to continue expanding ancillary services and selectively acquire complementary businesses within our current markets and potentially in new territories.

Strategic Highlights continued

Operational highlights

STRATEGIC REPORT

Note: we are presenting our financial year results, therefore "2024" means 12 months ended 30 April 2024, "2023" means 12 months ended 30 April 2023 and "2022" means 12 months ended 30 April 2022.

Financial highlights

B2C monthly number of users grew across all business lines

Auto +4%

(to 3,732 from 3,586 in 2023)

Real Estate +1%

(to 4,926 from 4,877 in 2023)

Jobs3 +5%

(to 2,271 from 2,162 in 2023)

B2C average monthly revenue per user (ARPU) grew across all business lines

Auto +26%

(to €289 from €230 in 2023)

Real Estate +22%

(to €181 from €148 in 2023)

Jobs3 +7%

(to €412 from €384 in 2023)

C2C monthly number of active ads (listings in Generalist) grew significantly

Auto4 +26%

(to 33,695 from 26,824 in 2023)

Real Estate +20%

(to 20,016 from 16,628 in 2023)

Services5 +32%

(to 8,560 from 6,461 in 2023)

Generalist6 +5%

(to 99,271 from 94,388 in 2023)

C2C monthly revenue per active ad (per listing on Generalist)

Auto4 +0%

(€20 in both 2024 and 2023)

an arithmetic result of significant growth in active ads

Real Estate +0%

(€23 in both 2024 and 2023)

an arithmetic result of significant growth in active ads

Services5 +11%

(to €24 from €22 in 2023)

Generalist6 +3%

(to €7 from €6 in 2023)

Cultural highlights

The total amount of CO2 emissions includes Scope 1 and Scope 2 (market-based), tonnes of carbon dioxide equivalent. Change in emissions calculated from a 2022 base year

Gender diversity

50 : 50

Our team continues to be balanced

(female : male headcount, as at 30 April each year) (2023: 51:49, 2022: 51:49)

Employee engagement

more 95% than

of employees who are proud to be part of the BCG team stays above 95%7

(2024: > 95%, 2023: > 95%)

1 Alternative performance measure (see Note 4 to the consolidated financial statements on pages 89 to 90).

Chair's Statement

Chair's Statement continued

STRATEGIC REPORT

Overview

The last twelve months have been ones of considerable success for Baltic Classifieds Group. Our relentless focus on the core business of each of our 14 portals across the Baltic regions continues to reap rewards as does both the quantum and consistency of our overall revenue and profit growth in the three years since becoming a public company.

We continue to have the most visited portals in Lithuania and Estonia, as well as maintaining our significant leadership position over the nearest competitor for all our largest sites compared to 2023, despite only a modest investment in marketing.

Our three verticals (Autos, Real Estate and Jobs & Services) continue to lead the high growth revenue charge across the business, and our fourth business unit (Generalist) continues to both provide solid growth and an extended competitive moat around all of our businesses allowing most of our advertisers to dual list on the two best known portals for their particular category.

Particularly pleasing this year was to see the operating leverage of the business beginning to flow through now that the ongoing costs of being a public company are fully baked into the financial performance.

The resilience of the growth despite a changed market backdrop in the Baltic regions (with a mild decline in GDP and lower inflation than recent years) means we will continue with our current strategy for the foreseeable future - focusing on the core of our business, consistently improving the consumer experience and constantly evolving the pricing and packaging of our products.

• For more on our Strategy and Business Model see page 10.

Board

We are fortunate that our Board and its committees enjoy great stability and consistency which is the cornerstone to our effectiveness as a Board.

• For more on our Board see pages 42 to 43; Board effectiveness see page 55 and our approach to Diversity see page 54.

As a Board, we are acutely aware of our obligations to ensure diversity and inclusion and are actively seeking to expand our Board in a very considered fashion with culture, fit, diversity and succession planning all part of our priorities. We have been scanning the market for potential diverse candidates to expand the Board, with a particular focus on candidates who have a high appreciation of the business environment in the Baltics, Scandinavia and/or Eastern Europe.

On 11 June 2024, Rūta Armonė joined the Board as an Independent Non-Executive Director and will join all of the Board Committees. Rūta is based in Vilnius and has worked at Ellex Valiūnas, one of the most prestigious legal firms in the Baltic region for 13 years. As an M&A partner at Ellex Valiūnas, her breadth of skills and experience will bolster the regulatory, governance and M&A experience on the Board.

As part of our succession planning, we will continue to look out for other outstanding candidates to further expand the Board in the years to come to ensure we minimise the chances of needing to replace large segments of the Board at any one time in the future.

Employees

Our people are critical to our success and it's reassuring to see the results of our engagement survey reflect back to us that our employees love working with us too! This is particularly apparent in the average employee tenure of 8 years, which in a business with such a high percentage of technologists is nothing short of remarkable.

The Group is led by a deeply knowledgeable management team, both at the Group level and the individual Portal level, who are passionate, dedicated and committed to building a long-lasting culture of rapid decision making, lean operations, trust and fun. We recognise that culture is a huge part of our success story.

We are proud of our employees and know the strength they bring to our organisation.

• For more on our Purpose and Culture see page 10 and our People see pages 30 to 34.

Environment, Social and

Governance

There are some important differences that come with a business listed in the UK with operations purely in the Baltics region, so we do sometimes have to look at matters such as diversity or remuneration through a different lens. However, we are committed to being a responsible business. Our priority is to protect and support our people, customers and all of our stakeholders and the environment around us.

We have reduced our absolute Scope 1 and 2 emissions by 70% from a 2022 base year and achieved our goal of having at least 80% of used electricity derived from renewable energy sources by 2025 by increasing the portion of electricity derived from renewable sources from 63% in 2022 to 88%. We are working toward our net zero target and as part of our net zero journey we reported our Scope 3 carbon emissions for the first time.

We ranked within the top 10 best performers within FTSE 250 in the FTSE Women leaders review 2023 and maintained our average employee tenure at 8 years.

I am proud to sponsor the Group's ESG working group and am actively involved with ESG activities.

• For more on our ESG see pages 22 to 37.

Returns to Shareholders and dividends

The Board is confident in our ability to continue our capital policy of returning all of our surplus cash to shareholders, through a combination of paying dividends and share buybacks. The total amount of cash returned to shareholders since IPO through dividends and the share buyback programme is c. €49 million and the leverage has reduced from 2.75x at IPO in July 2021 to 0.50x at the end of this reporting period.

We initiated a share buyback program during the prior year with the purpose of returning cash to shareholders. We are still actively engaged in this programme.

We are recommending a final dividend of 2.1 € cents per share for 2024. The final dividend will be paid, subject to shareholder approval, on 18 October 2024.

• For more details on our capital policy see the Financial review on page 19.

Looking ahead

I continue to be excited about the future for BCG and the growth potential and opportunities to create value not only for our shareholders but for all of our stakeholders.

Our strategy remains consistent, relevant and achievable and I look forward to reporting more demonstrable progress against that strategy in the year ahead.

I have personally enjoyed reaching out and meeting with some of our investor base in person and I hope to be able to build upon that in the coming year.

On behalf of the Board, I want to thank all of our employees for their remarkable contribution and dedication this year, and for serving all of our stakeholders so well.

Trevor Mather

Chair

2 July 2024

Market Overview

Macroeconomic overview

Real GDP per capita CAGR during calendar years 2000-2023

The Group operates in the Baltic region, generating 70% of its revenue for the financial year from Lithuania, 28% from Estonia and 2% from Latvia.

For context, the Baltic states, also known as the "Baltics", consist of Lithuania, Estonia and Latvia.

Lithuania

Estonia

Latvia

Poland

European Union

Germany

4.6%

3.1%

4.1%

3.7%

1.1%

0.9%

STRATEGIC REPORT

2024 marked another year of solid financial, operational and strategic execution for BCG, with strong momentum observed across each of our business

Strong consumers numbers:

revenue from developers as a result of improvements to our sites in terms of the presentation of new homes and the associated changes in our pricing.

Note: the macroeconomic data in the Macroeconomic overview is presented in calendar years, which differ from our financial year that starts on 1 May and ends on 30 April.

United Kingdom

Spain

France

Italy

0.7% 0.7%

0.6% 0.2%

segments. We are in the early stages of our monetisation journey, which underpins the resilience of our top line and EBITDA

The Baltic States have been a part of NATO, the European Union, the euro area and

Source: Eurostat (data for EU members), The Office for National Statistics (data for United Kingdom).

growth, and, we are particularly pleased that our operational leverage is once again flowing through to our EBITDA margin now that public listed company costs have been normalised.

Our platforms have established themselves as a key destination for those looking for transactions in automotive, real estate, jobs, services and general merchandise. The attractive business environment in which we operate - part of the EU, the euro area and NATO enhances our prospects for further success and expansion. And the fact that we are based in Lithuania, a country which, based on the World Happiness Report, is renowned for having the happiest young people in the world reflects the joy we have in running this company.

This year, I am pleased to report that the strongest growth came from our core classified revenue streams, B2C and C2C, which together account for 90% of BCG's revenue. Notably, B2C performance saw the highest growth at 22% year-on-year, driven by both an increase in customers and ARPU growth across all our business

Growth in both B2C and C2C number of customers:

• The number of business customers grew across all business areas: automotive dealers +4%; real estate brokers +1%; customers in Jobs +5%.
• All business areas saw an increase in active C2C ads: in Auto +26%; Real Estate +20%; Services +32% and Generalist listings grew +5%.

The combination of increased prices of goods and services being advertised on our sites, normalised speed of sale and changes to our packages, has led to increased yields across all business areas and in both the B2C and C2C segments.

Market context:

I would like to thank all of my colleagues for their efforts over the last 12 months. The results of our recent employee engagement survey reaffirm our belief that the team's motivation is at an all-time high, with over 95% of employees expressing pride in being part of BCG and would recommend it as a great place to work.

OECD since:

2004: the Baltic states joined NATO

2004: the Baltic states joined the European Union

2010: Estonia joined OECD

2011: Estonia joined the euro area

2014: Latvia joined the euro area

2015: Lithuania joined the euro area

2016: Latvia joined OECD

2018: Lithuania joined OECD

The Baltic region has a strong credit profile with some of the lowest gross public debt to gross domestic product ("GDP") ratios in Europe in 2023: 38.3% in Lithuania, 19.6% in Estonia and 39.7% in Latvia. These are significantly below the euro area average of 88.6%.1

The Baltics have a total population of 5.8 million (Lithuania: 2.7 million, Estonia: 1.3 million and Latvia: 1.8 million)2 and had a nominal aggregate GDP of approximately €150.0 billion in 2023 (Lithuania: €72.0 billion, Estonia: €37.7 billion and Latvia: €40.3 billion.3

The region's economy has demonstrated resilience and ability to grow significantly over the period of last 23 years, with real GDP per capita growing at a compound annual growth rate ("CAGR") of 4.6% in Lithuania, 3.1% in Estonia and 4.1% in Latvia from 2000 to 2023, compared to 1.1% in the European Union.

The Baltic economies demonstrated remarkable resilience to recent adverse shocks, including the COVID-19 pandemic, the Russian invasion of Ukraine, energy and food price surge, high inflation and high interest rates.

In 2023, the Baltic economies experienced a mild decline in GDP: (0.3)% in Lithuania, (3.0)% in Estonia and (0.3)% in Latvia.1 However, a normalising inflation, a resilient labour market, anticipated improvement in foreign demand and declining interest rates are forecasted to contribute to a gradual recovery. On average, GDP growth in the Baltics in 2024 and 2025 is expected to surpass the euro area average of 0.6% in 2024 and 1.7% in 2025. GDP growth is forecasted to be 1.5% in 2024 and 2.8%

in 2025 for Lithuania, (0.5)% and 3.5% for Estonia and 1.9% and 2.7% for Latvia.1

The unemployment level in the Baltic countries remains low and is forecasted to stay near the euro area average in the coming years. In 2023, the average unemployment level was 6.8% in Lithuania, 6.4% in Estonia and 6.5% in Latvia.

As projected, inflation in the Baltics eased in 2023 after a year of high double-digit levels, dropping to 8.7% in Lithuania, 9.1% in Estonia and 9.0% in Latvia. Inflation is expected to decrease further in 2024 to 1.0% in Lithuania, 3.5% in Estonia and 1.5% in Latvia.

The Baltic countries have a trend towards higher wage inflation, which is also part of increasing prosperity of the region. In 2023, despite a slowdown in the economy, labour markets showed resilience and wages increased by 12.2% in Lithuania, 11.4% in Estonia and 7.5% in Latvia.

units. Additionally, we observed a steady recovery in C2C volumes due to a normalised selling time and exceptional growth in Services. C2C growth was also

Furthermore, we expect our successes this year to continue, with healthy growth in B2C and C2C both in terms of volumes and ARPU, as well as sustained strong growth

remarkable, achieving an 18% increase year-on-year, propelled by a 23% rise in Auto, a 21% increase in Real Estate, and an impressive 45% growth in Services. The remaining 10% of the Group's revenue comprise ancillary and banner advertising revenue, which combined grew by 6%.

Throughout the year, we successfully implemented pricing and packaging changes across all our business units in both B2C and C2C. The outstanding results we achieved this year have provided strong momentum as we move into the next financial year.

I am happy to report that the Estonian Competition Authority ("ECA") terminated its investigations into our Real Estate and Auto platforms. During the supervision

in Services. With an engaged and highly experienced team, we remain focused on consistently delivering outstanding products and services to our customers.

Justinas Šimkus

Chief Executive Officer

28 June 2023

procedure, the ECA came to the conclusion that KV.ee, City24.ee and Auto24.ee "have not set unfairly high prices for the services they offer".

Source: Skandinaviska Enskilda Banken (SEB), May 2024

1 Leadership position based on time on site except for Auto24. Auto24 has no significant vertical competitor; the next relevant player is Generalist portal; therefore, relative market share is calculated based on time on site proportion relating to the number of active automotive listings as at the end of the reported period.

Market Overview continued

Automotive market

Market Overview continued

Jobs & services market

Baltic Classifieds Group operates Auto portals in Lithuania and Estonia. Over the past 12 months the used car markets in Lithuania and Estonia have been influenced by rebounding supply, increased car affordability due to rising consumer incomes, and more favourable conditions for sourcing used cars from abroad. Additionally, the upcoming introduction of a car tax in Estonia has led to increased local market activity within the country.

During this financial year, the number of new car transactions increased by 5% to 52 thousand per year, while the number of used car transactions increased by 6% to 464 thousand per year, combined in both Lithuanian and Estonian markets. The growth of the used car market was driven by continued recovery in used car imports in Lithuania, where they represent a significant portion of dealer business, and by more active local markets in both countries.

The average price of a used car has remained stable for the last three half-year periods, but, on average, it is 5% higher than the previous financial year, at €11.8 thousand. Consumer demand continues to be strong and steady, supported by rising household incomes, ensuring that there is no affordability pressure on vehicle prices.

The increasing number of transactions, combined with price growth and more favourable acquisition costs in Western European markets for used cars, has contributed to the expansion of the dealer margin pool.

The rebounding supply and inventory levels on our marketplaces have resulted in a 28% increase in the time it takes for dealers to sell a used car compared to last year. While this metric remained unchanged in Estonia, it significantly increased in Lithuania, where inventory and supply are recovering from an all time low in 2022.

Average used vehicle price and total transactions1

Average used vehicle price, €K

New vehicle transactions, K

Used vehicle transactions, K

Source: Company information (average used vehicle

price); Regitra, Autotyrimai and Maanteeamet (number of

transactions)

The Group operates an online jobs board in Lithuania. Over the past 12 months ending April 2024, employer activity has shown much more stability, with job posting numbers remaining relatively consistent with the previous year, in contrast to the significant year-over-year fluctuations observed earlier. Despite ongoing geopolitical tensions and economic headwinds, the number of job advertisements listed on our jobs portal remained significantly higher than pre-2022 levels. This indicates a continued strong demand for workers in the Lithuanian job market.

A tight labour market has supported strong wage growth. Over the past 9 years, the compound annual growth rate for average gross wage was a notable 10%, showcasing consistent and substantial salary increases.1 During the calendar year

2023, the average gross wage in Lithuania increased by 12%. Growing wages support the trend of higher investment in employee search and selection.

The average unemployment rate in Lithuania has slightly increased from 5.9% to 6.8% in the calendar year 2023. However, the number of employed persons in Lithuania increased in the calendar year 2023 and reached the highest level since 2007.1

Jobseekers' activity continues to grow rapidly, rebounding from the post-pandemic stagnation. This growth is supported by the inflow of workforce from foreign countries. Over the past 12 months, there has been a significant surge in applications on CVbankas.lt, with a 19% increase compared to the previous year.

The Group operates services portals in Lithuania, Latvia and Estonia. Examining the service providers market, we have observed a significant increase in activity in 2024. Since 2023, the number of active advertisements on our Services portals has risen by 32%. The main drivers behind this growth was the increasing popularity and traffic to the portals, as well as the impact of the acquired portals GetaPro in Latvia and Estonia in 2023. The growing number of clients and leads encouraged more service providers to advertise. The slowdown in the macro environment has further catalysed this growth.

STRATEGIC REPORT

Real estate market

Generalist market

The Group operates online classifieds portals in the real estate markets of Lithuania, Estonia and Latvia. The home ownership rates in Lithuania, Estonia and Latvia are some of the highest in Europe: 89% (16% with mortgage or loan), 82% (27% with mortgage or loan) and 83% (13% with mortgage or loan) respectively.2

Accordingly, secondary market transactions in the region are popular and account for the majority of real estate transactions.3

During the last 12 months ending April 2024, the Baltic real estate market was affected by several factors, including a rapid increase in interest rates, geopolitical tensions, and a slowdown in the economy. These factors led to an 11% decrease in the number of real estate transactions in 2024, bringing the total to 195 thousand transactions. This figure includes 90

thousand residential and 105 thousand non-residential real estate and land transactions.

Real estate prices have demonstrated resilience despite the decline in market activity. In the calendar year 2023, the average price per square metre of an apartment for sale in the Baltic capitals increased by 6%. This price increase is supported by the solid financial situation of real estate developers and elevated construction costs.4

As a result, decreased real estate demand in the region and elevated prices have led to longer selling times and increased inventory on our real estate portals. This provides visitors with a larger array of property choices.

Average apartment price5 and real estate transactions6

Average apartment price per m2, €K

Source: Swedbank

Real estate transactions, K

Source: State Enterprise Centre of Registers Lithuania,

Land Register Latvia, Land Board Estonia

The Group operates Generalist portals in Lithuania and Estonia. The COVID-19 pandemic restrictions in 2020 and 2021 significantly boosted e-commerce growth in these countries. As a result, more customers turned to online shopping, leading to an increase in the number of online buyers, sellers, and transactions.

The Lithuanian and Estonian e-commerce markets experienced significant growth, with a combined CAGR of approximately 20% from calendar year 2017 to 2019, 37% from 2019 to 2021, and 15% from 2021 to 2023. Although growth slowed in 2022 and 2023 compared to the peak pandemic years of 2020 and 2021, it remained strong. This sustained growth continued to support our Generalist platforms and ancillary products, such as delivery services.

E-commerce market growth2

Source: Euromonitor

1. Number of transactions in Lithuania and Estonia, including vehicles that were registered in these countries for the first time.
2. The home ownership rate measures the share of the population who are owner-occupants with or without a mortgage. Source: Statista, 2022.
3. Source: Company information.
4. Source: Swedbank, March 2024.
5. Average apartment price per square metre in Vilnius, Tallinn and Riga during calendar years 2021, 2022 and 2023.
6. Total number of real estate transactions in Lithuania, Estonia and Latvia.

1. Source: The Lithuanian Department of Statistics.
2. E-commerceretail value RSP (retail selling price) excl. sales tax in calendar years. Figures updated as per changes in Euromonitor data (May 2024).

Our Business at a Glance

We love transactions!

BCG is a collection of the leading online classifieds websites across real estate, cars and jobs in the Baltic region. The Group is proud to be operating 14 online portals as shown in the Our brands section on the following page.

Our portals are among the most visited sites in Lithuania and Estonia. The majority of the Group's traffic is direct, with a combination of direct and organic unpaid search channels accounting for 86% of total traffic. Paid search traffic is minimal, and our total marketing expenses are less than 2% of Group revenue.

Based on the number of user visits and the number of online listings across the Group portals, BCG is foremost in the online classifieds market. In 2024, the Group's portals were visited on average 56.01 million times per month which means that on average, a resident in the Baltics visited one of our sites 10 times every month.

We consider using our portals as one of the easiest and most effective ways to reach those interested via advertising and, therefore, to transact auto, real estate, and other items, as well as job seeking, recruiting or locating a service provider.

Our business model

Our success stems from a proactive, consumer-focused business model that integrates both specialised (vertical) and general (horizontal) online portals, as shown in the table on the next page.

Our brands include vertical portals tailored to specific industries, facilitating advertising, promotion and sales within those sectors. These portals attract a significant number of loyal and returning business customers (B2C subscribers

Our market position

The Group's portals attract a large and highly engaged consumer audience.

Our leadership2 position remains very strong compared to our closest competitor. The Group's portals are among the most visited websites in Lithuania and Estonia. According to April 2024 ratings from SimilarWeb, (which also include websites such as Facebook, Youtube and local news portals) Skelbiu was the 5th, Autoplius - 7th, Auto24 - 10th, Aruodas - 14th,

Our strategy

Our successful business model, combining vertical and generalist platforms, is sustained by strategic decisions, including:

Why invest in us

Attractive business environment

with contracts). They are also widely used by individual customers and the general public (C2C users engaging in one-time transactions and returning to our portals every few years to transact), enriching our portals with unique, hard-to-replicate content.

In addition, we operate horizontal or generalist portals, such as marketplaces, online auctions, and price comparison websites, which are popular among individual customers and the general public.

The advantages of this combined business model are:

KV - 17th, Osta - 13th in their respective countries.

Our purpose and culture

BCG exists to connect consumers with advertisers, facilitating easier transactions.

The Group's purpose, values, and strategy are closely aligned with its culture. Our governance framework, organisational structure, and culture significantly contribute to the successful delivery of our business model and support our overarching purpose.

To achieve our purpose, we focus on the following strategic goals:

Western-minded and

business-oriented

• Part of EU and

NATO

since 20041

• Part of the euro area since 2011-20151
• Part of OECD

since 2010-20181

Low public debt

38% in Lithuania

20% in Estonia

40% in Latvia vs

89% euro area average

gross public debt to GDP ratio2

GDP growth exceeds

4.6% in Lithuania

3.1% in Estonia

4.1% in Latvia

vs

1.1% EU average Real GDP per capita

CAGR 2000-2023

Economic freedom

#12 Lithuania

#12 Estonia

#25 Latvia

in respect to the economic freedom globally3

• Enhancing the transaction experience.
• Providing the easiest solutions for sellers and buyers to connect.
• Ensuring a simple advertising process for our consumers and advertisers.
• Being the primary solution for our consumers' and advertisers' transaction needs.

• See pages 47 to 48 for information on our Stakeholders and our approach to engagement.
• See pages 22 to 37 for information on our approach to Sustainability.

BCG is a collection of the leading" online classifieds websites across real estate, cars and jobs in the Baltic region.

1. Note: The changes in the cookie consent policy, which now require general consent for all cookies not strictly necessary for website operation, have impacted data collection. Additionally, internet browsers have implemented stricter controls on third-party cookies, leading to a loss of data collected by Google Analytics. As a result, the statistics in Google Analytics are incomplete and show a decline in total visits to our portals.
2. Leadership position based on time on site except for Auto24. Auto24 has no significant vertical competitor; the next relevant player is Generalist portal; therefore, relative market share is calculated based on time on site proportion relating to the number of active automotive listings as at the end of the reported period.

1. Calendar years.
2. Calendar year 2023. Source: Skandinaviska Enskilda Banken (SEB), May 2024.
3. Source: Economic Freedom of the World Annual Report, 2023.
4. Source: World Bank's Doing Business report, 2020.
5. Source: Digital Quality of Life, 2023.
6. 'EU27+': the 27 European Union Member States, Iceland , Norway , Switzerland , Albania , Montenegro , North Macedonia , Serbia and Turkey. Source: eGovernment Benchmark 2022.

Proven track record and strong financial position

Our Business at a Glance continued

Moving our Strategy Forward

Exceptional EBITDA1 margin

77%

Strong Balance Sheet

0.5x leverage1

compared to 2.75 at IPO in July 2021

Our priority

We are committed to being a responsible business. Our priority is to protect and support our people, customers, Stakeholders and the environment around us.

Our purpose is to connect consumers with advertisers and help them transact more easily. Every day we connect buyers and sellers and facilitate transactions from cars and real estate, job offers to services and consumer goods from professional and private advertisers. The digital marketplaces we operate promote trust, fairness and efficiency.

Our Company values and behaviours

The values and behaviours that we believe in are:

• Trustworthiness
• Entrepreneurship
• Less is more
• Getting things done
• Marketplace is our hobby
• Work is fun

STRATEGIC REPORT

Strong foundations support our growth

Our strategic pillars

We are a clear leader

7x Autoplius

36x Auto24

17x Aruodas

Go-to destination

56.0m visits per month

Group's portals were visited on average 56.0 million times a month3. This equals to each resident in the Baltics visiting our site 10 times per month.

Deeply penetrated

86%

The majority of the Group's traffic4 is direct, with a combination of direct and organic unpaid search channels

4

be the main solution for our consumers and listers transaction needs

19x KV and City24 in Estonia

7x CVBankas

23x Skelbiu

Leadership position2 in number of times against closest competitor

BCG is a collection of the leading2 online classifieds websites across real estate, autos, jobs, services and general merchandise in the Baltics.

Benefiting from synergies

#1 horizontal and #1 vertical portals reinforce each other

A combination of verticals and horizontals brings a lot of synergies and allows covering the wider market

Fragmented customer base

50% B2C and 39% of C2C

Core classifieds revenue amounts to 90%. Having a significant part of C2C ads to customer fragmentation.

Our stakeholders

Investors

Consumers and

Advertiser

Our People

Responsible business and Environment, Social and Governance ("ESG")

The Sustainable Development Goals ("SDGs") (also known as the Global Goals), were adopted by the United Nations in 2015. Our approach to responsible business aligns quite naturally with the goals and we have identified five that are most material to our business and where we contribute the most:

Gender equality

Decent work and economic growth

Responsible consumption and production

Climate action

Experienced and diverse

team

8 and 13 y. of tenure

Highly engaged teamCommitted to sustainability

Suppliers

Regulatory bodies

• For more on our culture see pages 30 to 34.

Peace, justice, and a strong institution

average 8 years of tenure per employee and average 13 years of tenure per Senior Management employee

50:50

the split between women and men in our organisation

Moving our Strategy Forward continued

Continuously improve the Group's scalability and maintain high levels of operational efficiency while making necessary investments

Pursue strategic opportunities through acquisitions

Promote circular economy and minimise our own impact on the environment

The Group is considered to be at an early monetisation stage. The primary growth driver and focus of the Group is to drive increased monetisation of its core services, by increasing average revenue per B2C lister and average revenue from each C2C lister. Increased monetisation can take different forms, including pricing actions and product and packaging development, enabling upsell and cross- sell.

How we measure progress

• Revenue
• C2C yield1
• B2C average revenue per user (ARPU)

2024 progress

We ended our year 2024 with the highest ever yearly revenue in all four business units. Group's revenue grew 19% to €72.1 million (2023: €60.8 million).

The robust growth across all four business lines was primarily driven by strength in the core business. The growth came from B2C and C2C which are the core revenue streams and together now represent 90% of BCG revenue. B2C and C2C revenue grew 22% and 18% respectively.

Improvements to our products and packages for B2C customers supported price increases in our Auto, Real Estate and Jobs business lines towards the end of the H1 this year. Monthly ARPU has grown across all business lines.

At the beginning of the reporting period, we implemented a C2C pricing event that increased the price per listed C2C ad.

Associated risks

• Geopolitical risk
• Risk of disruption to our customer and / or supplier operations
• Competition risk
• Laws & regulations risk
• Technology risks

The Group will continue to leverage the existing strong market positions of its portals, high brand recognition and traffic to drive more listings and traffic across its portals. As more listings are added, consumer audience traffic is expected to increase, and the more traffic increases, the more attractive the portals are, which again attracts more listings. These network effects are expected to continue to support more revenue growth through an increased income from listing fees, subscription fees and other revenue sources.

How we measure progress

• Audience lead versus closest competitor
• Traffic to our sites

2024 progress

The Group is highly penetrated. Due to its leading market positions and strong brand affinity, the Group's portals attract a large and highly engaged consumer audience.

During the last years, all our leading sites have maintained their significant audience lead2 over the closest competitor (based on the time spent on site data from SimilarWeb).

With a large and engaged consumer audience, the Group's brands are widely known and thus organically attract advertisers to advertise products for sale, resulting in the Group's portals having leading content that in turn attracts more consumer traffic. However, changes in the cookie consent policy, which now require general consent for all cookies not strictly necessary for website operation, have impacted data collection. Additionally, internet browsers have implemented stricter controls on third-partycookies, leading to a loss of data collected by Google Analytics. As a result, the statistics in Google Analytics are incomplete and show a decline in Group's traffic. According to Google Analytics, during 2024 we had on average 56.0 million visits per month, which equates to every resident in the Baltics visiting our sites 10 times per month, making the portals the go-to place for consumers to shop.

Associated risks

• Geopolitical risk
• Risk of disruption to our customer and / or supplier operations
• Competition risk
• Laws & regulations risk

In addition to increasing monetisation of the core classifieds services, the Group aims to grow revenue by offering ancillary products and services, with the overall objective of enhancing the transaction journey of consumers and advertisers in the Baltic markets.

How we measure progress

• Developments
• Innovations
• Partnerships

2024 progress

Auto. In Lithuania we have upgraded and expanded the car history check, introduced a new data product, that enables business customers to analyse competitors and benchmark their performance.

In Estonia, we re-launched the car history check service with a new user interface and tighter integration with Auto vertical, which acts as a data source and marketing channel.

Real Estate. In Lithuania, we introduced a new prominence package for business clients.

In Estonia, we launched a new product for the property rental market in Estonia, allowing landlords and tenants to sign rental contracts through our platform.

Jobs & Services. On our Jobs board in Lithuania, we developed tools to streamline the job candidate selection process. Employers can now use filters to quickly identify the best candidates that match their criteria and easily access potential employees in the CV database.

On our Services platform in Lithuania, we introduced the option for service providers and customers to sign service agreements directly within the platform.

On our Latvian and Estonian Service platforms we focused on enhancing content quality.

Generalist. In Estonia we introduced a "buy now, pay later" feature, providing buyers with an easy financing alternative for their purchases. We also launched a parcel self- service platform that aggregates popular parcel delivery providers.

In Lithuania, on our price comparison website, we continuously work on improving content quality. Last year, we added over 25,000 item specifications, enhancing user experience and boosting our SEO efforts.

• More details in our Operational Review (page 20).

Associated risks

• Competition risk
• Technology risks

While the Group already demonstrates high operating leverage, operational and cost efficiency, it is committed to continue optimising costs and maintaining high cash conversion. However, the commitment to a lean and efficient organisation does not prevent the Group from making strategic investments, for example in technology, to maintain its market-leading position and strong value proposition for listers and consumers, and to support the sustainability of a growing organisation. The Group has a robust process of assessing business areas requiring further investments, and a streamlined approach to implementing internal change, with recent examples including the increased investment in the technology team and additional security infrastructure.

How we measure progress

• EBITDA1 and EBITDA margin1
• Operating profit
• Adjusted operating profit1
• Cash generated from operating activities
• Cash conversion1
• Basic EPS
• Adjusted basic EPS1

2024 progress

Year 2024 profitability was the highest ever.

Our EBITDA grew 20% to €55.3 million (€46.0 million in 2023) and ended our year with 77% EBITDA margin (76% in 2023).

Adjusted operating profit up 21% to €54.5 million (2023: €45.3 million).

Operating profit up 32% to €38.3 million (2023: €29.1 million).

Cash generated from operating activities was up 23% to €59.0 million (2023: €48.0

million).

Cash conversion maintained at 99% (99%

in 2023).

Basic EPS up 40% to 6.5 € cents (2023: 4.7

€ cents).

Adjusted basic EPS up 20% to 9.2 € cents

(2023: 7.7 € cents).

Associated risks

• Geopolitical risk
• Risk of disruption to our customer and / or supplier operations
• Technology risks
• Laws & regulations risk

One of the capital policy priorities is to continue considering value-creating M&A opportunities.

The Group constantly evaluates its portfolio to optimise value creation and is continuing pursuit of attractive options for inorganic growth, particularly through bolt-on acquisitions and in-market consolidation within the Group's existing markets, and potentially new markets outside of the Baltics with a strong focus on similarly high-quality,market-leading businesses.

How we measure progress

Filling in the "gaps" in the matrix of geographies and business lines

2024 progress

There were no acquisitions this year. Last year, in July 2022, we acquired GetaPro services platforms in Latvia and Estonia.

GetaPro business and strategy integration is progressing well - we continue applying best practices from our existing Services vertical in Lithuania.

Associated risks

• Acquisition risk

BCG is committed to being a responsible business and our priority is to protect our people and continue to protect the environment around us.

Climate change is treated as a Board-level governance issue. The ESG working group that was formed in 2022 evidences our commitment to ensuring as a business we keep progressing with our climate change agenda.

We are highly focused on providing a safe, happy, and supportive working environment and we are continuously looking for ways to improve internal communications to ensure our employees stay connected and feel engaged.

How we measure progress

• Total CO2 emissions
• Employee engagement level
• Gender diversity

2024 progress

During 2024 we made progress in our net zero journey by reporting our Scope 3 carbon emissions for the first time and reducing our impact on the environment:

• we reduced the total CO2 emissions in direct operations by 70% from a 2022 base year and
• increased the portion of electricity used from renewable sources from 63% in 2022 to 88%, while
• emission-freeelectricity was increased from 66% in 2022 to 99%.

During the year we have conducted an employee engagement survey and were pleased that, in line with last year, more than 95% of our employees answered YES to both questions

• "Do you feel proud to be part of the BCG team?" and
• "Would you recommend your friends to work here?".

We acknowledge the significance of gender diversity and take pride in concluding the year with an equal female-to-male ratio of 50:50 (as of the end of 2023: 51:49).

Associated risks

• Climate change risk

STRATEGIC REPORT

1. "Yield" refers to the average monthly revenue per active (Auto or Real Estate) or listed (Generalist) C2C listing.
2. Audience lead. Leadership position based on time on site except for Auto24. Auto24 has no significant vertical competitor; the next relevant player is Generalist portal; therefore, relative market share is calculated based on time on site proportion relating to the number of active automotive listings as at the end of the reported period.

1 Alternative performance measure, see note 4 to the consolidated financial statements.

Financial Review continued

We continue seeing strengthening network effects across all business units as a growing number of customers drive content, which in turn encourages greater engagement for our audience.

The number of B2C customers grew across all business lines:

to 140 FTEs. The average number of FTEs during the year has grown by 4% from 131 in 2023 to 136 in 2024. Investment in our people increased by 18% to €11.3 million, up from €9.6 million in 2023. Most of the increase in people costs was driven by more people in the team, annual salary reviews and the buildup cost of a performance share plan ("PSP") amounting to €2.2 million, compared to €1.6 million in 2023.

REPORT

In 2024 Group's revenue grew 19% to €72.1 million (2023: €60.8 million) as a consequence of a growth in all four business lines, underpinned by strength in the core business:

• The Auto business line grew by 24%. B2C grew 31% and C2C grew 23%.
• The Real Estate business line grew by 20%. B2C grew 24% and C2C grew 21%.
• The Jobs & Services business line grew by 17%. B2C (Jobs) grew 12% and C2C (mainly Services) grew 45%.
• Generalist business line, which is largely C2C, grew 8%.

Over the past 3 years since the IPO, revenue quality has improved as core classifieds revenue streams, B2C and C2C, as a percentage of revenue, have increased from 83% to 90%. B2C revenue, representing 50% of Group revenue, grew 22% and C2C, representing 39% of Group revenue, grew 18%. Ancillary revenue, accounting for 5% of total Group revenue, grew by 13%, while advertising revenue, the most vulnerable revenue stream and also accounting for 5% of Group revenue, declined by 1%.

The main drivers of revenue growth continue to be the increase in the number of advertisements and active C2C listings, the rise in the number of advertisers across all business sectors, and the

higher average spend per customer and advertisement across our business.

In May 2023, at the beginning of the period currently reported on, we introduced C2C pricing and packaging changes across most of our portals, impacting the entire financial year. In September and October 2023, we introduced B2C price and package changes for the Auto, Real Estate and Jobs portals, reflecting improvements to our proposition. These contributed to the second half of the year in both Real Estate and Auto business lines and in Jobs, since the majority of our contracts are year-long, it is rolling out throughout 12 months.

In C2C, the number of active advertisements and listings grew across all business lines. In Auto, Real Estate and Generalist the growth was primarily driven by the underlying market conditions, i.e. longer selling time (which means each advert is active for more time). The growth in Services active advertisements number was driven by the growing client base using our platform.

In terms of average revenue per user (ARPU) in our B2C segment:

In terms of yield1 in our C2C segment:

Our marketing costs amount to 1.4% of revenue. As a portfolio of brands, we minimise spending on external service providers by advertising on our own sites at no cost. Other Group costs include IT, which are 1.2% of revenue, and general administrative expenses, which are 5.0% of revenue. We have supported several non-governmental organisations (NGOs) assisting Ukraine during the war, a local teachers' development organisation 'Choosing to Teach' and other organisations with donations totalling €0.2 million (2023: €0.1 million).

Net finance expense

Our finance expenses primarily consist of interest expenses, calculated at a 1.75% margin plus Euribor, totalling €3.5 million, compared to €2.6 million in 2023. Additionally our finance costs include commitment fees related to a €10.0 million unsecured and undrawn Revolving

STRATEGIC

B2C - monthly number of dealers/brokers/companies by business line

C2C - monthly number of active ads/listings by business line

Operating costs

Our costs represent a relatively small proportion of our revenue and, due to continued cost management, inflation did not significantly affect our profitability.

Most of our operating costs are people costs. It is close to 16% of Group revenue. During the year, the BCG team expanded

Credit Facility ("RCF"). Finance expenses are partly offset with finance income from cash balances held in banks, resulting in a net finance expense of €3.4 million, compared to €2.7 million in 2023.

Net debt and leverage

In 2024, we voluntarily repaid €20.0 million of the existing debt.

Compared to the end of 2023, net debt2 decreased by €17.8 million to €27.5 million (from €45.3 million in 2023). We ended the year with leverage2 ratio of 0.5x, down from 1.0x in 2023.

1. In Jobs & Services business line B2C revenue comes from Jobs only; C2C revenue principally comes from Services portals, therefore only Services platforms' information is presented.
2. Car listings only (excluding listings of vehicle parts, vehicles other than cars and other categories).
3. Skelbiu.lt only, which is our main Generalist portal.
4. ARPU - average revenue per user.

1. Yield refers to the average monthly revenue per active C2C ad (in Auto, Real Estate, Services), per C2C listing (in our Generalist) or ARPU in B2C. ARPU is monthly average revenue per user (in Auto - per dealer, in Real Estate - per broker, in Jobs - per company).
2. Alternative performance measure, see note 4 for further details.
3. Customer credit balances relate to amounts held by customers in e-wallets and are included within trade and other payables as well as cash and cash equivalents.