Bijou Brigitte modische Accessoires : Annual Report 2025 incl. Consolidated Financial Statements, Combined Management Report and Report of the Supervisory Board

About this update from Bijou Brigitte Modische Accessoires Ag

Group Management Report 2 0 2 4 The English translation of the consolidated financial statements is made available for the sake of convenience. The German version is the definitive version. Securities Identification Number 522 950 ISIN DE0005229504 Key figures of Bijou Brigitte Bijou Brigitte Group 1. Revenue 2021 TEUR 216.028 2022 TEUR 306.463 2023 TEUR 327.883 2024 TEUR 333.891 2025 TEUR 338.000 Change 5,4% 41,9% 7,0% 1,8% 1,2% 2. Total operating performance 216.423 307.110 328.574 334.450 338.182 3. Personnel costs 68.794 79.746 88.524 92.875 95.500 Change -4,6% 15,9% 11,0% 4,9% 2,8% 4. Number of employees 1) 2.256 2.271 2.353 2.361 2.324 Change -11,3% 0,7% 3,6% 0,3% -1,6% 5. EBITDA 75.445 97.842 * 89.295 88.657 * 91.473 6. EBIT 24.409 49.704 * 39.886 36.029 * 39.952 % of total operating performance (EBIT 11,3% 16,2% * 12,1% 10,8% * 11,8% 7. Earnings before taxes 19.866 45.770 * 36.011 33.157 * 34.692 Change 158,9% 130,4% * -21,3% -7,1% * 4,6% % of sales (return on sales) 9,2% 14,9% * 11,0% 9,9% * 10,3% 8. Consolidated net profit 17.032 34.888 * 24.075 23.408 * 23.680 Change 155,0% 104,8% * -31,0% -1,9% * 1,2% 9. Value creation 93.313 130.069 * 130.931 133.449 * 137.518 Change 113,0% 39,4% * 0,7% 2,2% * 3,0% 10. Retention 17.032 34.888 * -14.419 -3.537 * -2.546 Change 155,0% 104,8% * -141,3% 76,9% * 28,0% 11. Non-current assets 37.458 34.886 38.152 40.871 37.439 12. Right-of-use assets 101.572 106.893 120.486 127.259 124.616 13. Capital expenditure 3.138 6.943 14.841 14.234 7.620 14. Depreciation and amortisation 51.037 48.138 49.410 52.628 51.520 Total assets 354.969 407.406 * 407.427 409.602 * 399.555 15. Change -0,7% 14,8% * 0,0% 0,8% * -2,5% Equity 213.027 253.631 * 239.647 233.242 * 224.629 % of total assets 60,0% 62,3% * 58,8% 56,9% * 56,2% 16. Return on equity 8,7% 15,9% * 11,2% 11,2% * 11,8% 17. Cash flow 2) 76.217 77.593 75.182 73.984 80.257 18. Earnings per share (EUR) 2,21 4,53 * 3,13 3,04 * 3,14 19. Dividend per share (EUR) 0,00 5,00 3,50 3,50 6,00 3) 20. Total number of stores 926 902 897 913 904 1) Average for the year - adjusted to full-time employees 2) From operating activities * The information has been adjusted as in the Notes to the consolidated financial statements 3) EUR 3.50 basic dividend and EUR 2.50 special dividend, subject to resolution of the Annual General Meeting Combined Group Management Report 2 0 2 4 CONTENTS FUNDAMENTALS OF THE GROUP AND OF BIJOU BRIGITTE MODISCHE ACCESSOIRES AG 2 Business activity and corporate structure 2 Internal management system 2 Research and development 3 ECONOMIC REPORT FOR THE GROUP AND FOR BIJOU BRIGITTE AG 3 Macroeconomic factors 3 Business trend and position of the Group and Bijou Brigitte AG 0 Net assets, financial position and results of operations for the Group 3 Appropriation of profit and proposed dividend 6 Net assets, financial position and results of operations for Bijou Brigitte AG 7 Overall statement of the Management Board on the economic position of the Bijou Brigitte Group and Bijou Brigitte AG 9 Non-financial performance indicators 9 OPPORTUNITY AND RISK REPORT 10 Explanation and assessment of significant opportunities and risks 15 SEPARATE NON-FINANCIAL REPORT 19 OTHER INFORMATION 19 FORECAST REPORT FOR THE GROUP AND BIJOU BRIGITTE AG 21 Macroeconomic factors 21 Outlook for the Bijou Brigitte Group and Bijou Brigitte AG 24 ‌FUNDAMENTALS OF THE GROUP AND OF BIJOU BRIGITTE MODISCHE ACCESSOIRES AG ‌Business activity and corporate structure Bijou Brigitte modische Accessoires AG (referred to below as Bijou Brigitte AG or Bijou Brigitte) is one of the leading European fashion jewellery chains and looks back this year on a corporate history spanning over six decades. The extensive product range comprises around 9,000 articles offering attractive value for money, ranging from fashion and exclusive jewellery to fashion accessories, men's and children's jewellery. Bijou Brigitte focuses on a fashion-conscious target group consisting primarily of female customers. In addition to the classic product range, two main jewellery collections are presented twice a year -Spring/Summer and Autumn/Winter - in sync with the change in seasons. Furthermore, seasonal items are offered to mark all special occasions, for example at Christmas, around Valentine's Day, Mother's Day, Oktoberfest and during the wedding season in the spring. At the end of the reporting year, the Group had a total of 904 stores in 19 countries. The stores are located in Austria, Belgium, Bulgaria, Czechia, France, Germany, Greece, Hungary, Italy, Kosovo (new in 2025), Montenegro, the Netherlands, North Macedonia, Poland, Portugal, Romania, Saudi Arabia, Slovakia and Spain. Fourteen of these stores (previous year: 24) are operated by franchise partners on our behalf. As in the previous year, German stores made up around 46% of the total store network. Sales are primarily made in Bijou Brigitte's own stores, which are mainly located on highly frequented shopping streets and in shopping centres. The company has also sold selected items through concession partners in German department stores since 2008 and internationalised this distribution channel in 2010. Bijou Brigitte's online store has been in existence since 2006 and is constantly being adapted to customer needs. The online shop is available in Germany, France, Italy, the Netherlands, Spain, Austria and Poland. Neither sales channel accounts for a material share of consolidated revenue or earnings. Some of the German stores are operated by lessees, who sell jewellery in the name and on behalf of Bijou Brigitte and receive a revenue-based commission for so doing. ‌Internal management system The business activities of the Bijou Brigitte Group and Bijou Brigitte AG are based on a regionally oriented store network. All major steps along the value chain and their supporting processes are centrally managed. The most significant financial indicators for both the Bijou Brigitte Group and Bijou Brigitte AG are sales and operating earnings before taxes (EBT) as well as the development of inventories, investment volumes and the equity ratio. The Group defines earnings before taxes (EBT) as net profit after taxes plus income taxes. For the parent company financial statements, earnings before taxes are defined as net income before taxes on income, impairments of long-term financial assets and income from participating interests. The most significant non-financial indicator is the number of stores. In addition to the financial and nonfinancial indicators, ongoing account is also taken of quantitative and qualitative macroeconomic factors that may have a direct or indirect impact on the net assets, financial position and results of operations of the Bijou Brigitte Group. Segment reporting follows the provisions of IFRS 8, according to which it must be prepared using the management approach. Internal reporting is based on segmentation by country. The Management Board tracks the performance of key indicators using regular internal reporting so as to be able to react to current business developments. ‌Research and development A trading company like Bijou Brigitte does not incur any expenses for research and development in the classic sense. ‌ECONOMIC REPORT FOR THE GROUP AND FOR BIJOU BRIGITTE AG ‌Macroeconomic factors Bijou Brigitte must take account of a range of macroeconomic factors. The main external factors include cyclical and macroeconomic conditions and developments in the market and the industry. In 2025, important aspects notably included geopolitical uncertainties and technological developments, coupled with changes in consumer behaviour. Over the course of the year, the quantitative and qualitative factors described below were continuously monitored and evaluated, in order to form an objective assessment of business development and the overall position of both the Bijou Brigitte Group and the AG. Economic developments In the year under review, the global economic climate was affected by the upheavals caused by the erratic and protectionist US trade policy. Higher US import tariffs put strain on global trade. Global economic growth was mainly driven by growth in China and in emerging nations such as India . 1 The European economy was marked by a changed political order. The Russian war of aggression against Ukraine caused the security situation in Europe to deteriorate. Fundamental barriers to trade in the internal market also hampered competition and thus the European economy as a whole. Insufficient uniformity in Europe's capital markets also had a stifling effect on the economy . 2 The German economy stagnated during the year, mainly due to structural weaknesses and geopolitical changes. Domestic factors such as declining competitiveness, the ongoing ageing of the population and the continued existence of needless bureaucracy also weighed on the economy . 3 In Spain, high levels of consumer demand meant that economic performance was above the European average, despite the global political uncertainties. Private consumption rose as a result of job creation and rising real incomes. Corporate capital spending also went up. 4 Compared to the previous year, the Italian economy saw only modest growth, and was affected by an increasing skills shortage, a problem that was exacerbated by an ageing population and the persistence of the North-South divide. Italy's public-sector debt also remained ‌1 German Council of Economic Experts: Annual Report 2025/26, December 2025 ‌2 German Council of Economic Experts: Annual Report 2025/26, December 2025 ‌3 German Council of Economic Experts: Annual Report 2025/26, December 2025 ‌4 GTAI: Economic Outlook Spain, 26 November 2025 troublesome . 5 Portuguese economic performance exceeded the European average, on the back of corporate capital spending and private consumption, which was boosted by rising real incomes . 6 In France last year, the global economic situation and domestic political instability slowed down the economic cycle. Economic development was held back by weakening domestic and external demand, as well as by a cautious mood among consumers . 7 The table below summarises the economic development in the individual countries and regions in the year under review. GDP and consumer prices in selected countries8 Region/Country GDP 2025 (inflation-adjusted) - annual change in % Consumer prices 2025 -annual change in % Household consumer spending in Q3 2025 -annual change in %* Worldwide 2.6 2.9 --- Eurozone 1.4 2.1 0.9 Germany 0.3 2.2 0.5 Spain 2.8 2.6 1.3 Italy 0.5 1.7 0.3 Portugal 1.8 2.1 1.8 France 0.8 0.9 0.8 *Source: Eurostat Income, employment and demographic change Bijou Brigitte regards changes in real household incomes as an indicator for estimating changes in demand, as a rise in disposable income may lead to increased demand and thus to higher revenues. Conversely, stagnating or declining incomes may cause household consumer spending to contract. In the past year, the real incomes of private households developed differently in the various European counties. Overall, disposable incomes in the eurozone went up.9 Overall employment is also a relevant indicator for Bijou Brigitte. For example, a rise in unemployment may point towards economic difficulties, which can have an adverse impact on consumer behaviour and thus lead to revenue losses. Demographic change is significant for the retail sector, including Bijou Brigitte. Declining numbers of residents, an ageing population and a rise in the number of smaller households are factors that can have a material effect on the customer structure.10 The table below provides a summary of the employment level and demographic change in 2025 in the European markets relevant to Bijou Brigitte. ‌5 GTAI: Economic Outlook Italy, 4 December 2025 ‌6 GTAI: Economic Outlook Portugal, 8 December 2025 ‌7 GTAI: Economic Outlook France, 21 November 2025 ‌8 German Council of Economic Experts: Annual Report 2025/26, December 2025 ‌9 Eurostat: Euro indicators, 28 January 2026 ‌10 KPMG: Trends in Retail 2025 Population 11 and unemployment (seasonally adjusted) for selected countries 12 Region/Country Population 2024 (2020) in millions Unemployment rate December 2025 (2024) in % Eurozone 450.4 (447.0) 6.2 (6.3) Germany 83.6 (83.2) 3.8 (3.5) Spain 49.1 (47.7) 10.0 (10.8) Italy 58.9 (59.9) 5.6 (6.4) Portugal 10.7 (10.4) 5.6 (6.4) France 68.6 (65.9) 7.7 (7.3) Movements in exchange rates and commodity prices Movements in the US dollar exchange rate are an important factor for Bijou Brigitte, as a large proportion of its merchandise is purchased in US dollars. If the US dollar appreciates (against the EUR), purchasing costs rise accordingly. Over the course of 2025, the US dollar traded at between 1.02 and 1.18 against the euro, with an average rate of 1.13 (previous year: 1.08). At year-end, the rate stood at 1.17, the euro having appreciated by 11.4% since the end of 2024. The price of silver is also a major factor for Bijou Brigitte, as silver jewellery makes up part of the product range. The silver price is affected by a range of factors, including macroeconomic developments, monetary policy and the strength of the US dollar, as well as by industrial demand, supply volume restrictions and the role of silver as a store of value. Movements in the silver price thus depend heavily on overall economic and political conditions and are inevitably prone to fluctuation. Silver began 2025 at a price of USD 28.97 per ounce and ended it at a price of USD 71.58 per ounce. The price rise was especially sharp at the end of the year. Competitive position In the past year, the competitive environment in the retail sector was again dominated by structural change. In order to further strengthen our focus on customers and their increased expectations and enhance their purchasing experience, it is becoming increasingly necessary to create an omnichannel strategy that seamlessly connects the in-store and online offerings. Physical outlets increasingly serve to enable customers to experience products, try them out and obtain advice, while the actual purchase is made online. It follows that in-store retail can only stay competitive if it seeks to offer added value in comparison with pure online shopping. This not only involves innovative omnichannel offerings with high-quality products, but also the provision of customer-focused online service offerings. Modern data and analytics tools, as well as demand-driven supply chains, are key challenges in this regard.13 To ensure ‌11 German Federal Statistical Office: Key Population Indicators for EU States, 7 October 2025 ‌12 Eurostat: Euro area unemployment rate, December 2025 ‌13 KPMG: Trends in Retail 2025 competitiveness, there is a need for regulatory provisions that will counteract the often unfair sales practices of low-cost Asian platforms such as Shein or Temu.14 Market and industry trends In addition to the overall economic environment, developments in the German retail sector are particularly important for Bijou Brigitte's business performance. Last year, consumer sentiment was exceptionally cautious, particularly in fashion retail. Fashion and consumption played only a secondary role for many households. The main cause of this development was, firstly, growing concerns about job and income security and, secondly, great uncertainty regarding the overall economic and geopolitical situation. On top of this, there was also the continuing structural change in retail with the shift towards online selling in sales and marketing activities. The rising market share of Asian platforms such as Temu or Shein made life difficult for bricks-and-mortar retailers. Rising personnel costs also had a negative effect. In Germany, revenues for in-store fashion retail consequently fell by 4.0% year-on-year . 15 Overall revenue for the German retail sector was EUR 683.7 billion in 2025. This represents a nominal rise of 2.0% and a real rise of 0.5% relative to 2024. German online retail recorded nominal growth of 4.4% relative to the year before, corresponding to a 3.5% increase in real terms . 16 In fashion, German online retail increased revenue by 3.5% in 2025 . 17 Technological and regulatory changes To remain competitive over the long term, it is indispensable for Bijou Brigitte to continuously adapt to the digital transition and in particular to customers' increasing requirements in terms of digital service offerings. Customers increasingly expect digital services such as online payment options or the ability to choose from a variety of purchasing channels. Higher energy and personnel costs, as well as high rents, are also driving us towards greater efficiency and automation. 18 Expanding digital technologies was therefore a key focus area in 2025. The use of Artificial Intelligence, e.g. for inventory optimisation or digital marketing measures, increasingly took centre stage. Using customer data for personalised customer communications is also becoming more and more important. At the same time, there is also an increasing need to ensure functional and straightforward data protection for customers. German retailers are often at a disadvantage here, owing to the current lack of uniform regulations in Europe and the fact that the German rules are especially strict by international standards . 19 Rising regulatory requirements and increasingly wide-ranging documentation duties in relation to, for example, product information, sustainability reporting, transparency on pay or supply chains are putting increasing pressure on everyday operations and swallowing up valuable resources . 20 ‌14 BEVH: This is how strongly online fashion sales grew in 2025, 22 January 2026 ‌15 TextilWirtschaft: How fashion retail ended 2025, 7 January 2026 ‌16 HDE (German Retail Association): Core data on retail revenues, 2026 ‌17 BEVH: This is how strongly online fashion sales grew in 2025, 22 January 2026 ‌18 KPMG: Trends in Retail 2025 ‌19 KPMG: Trends in Retail 2025 ‌20 HDE: Press release - Reform agenda for the Mittelstand, 20 January 2025 ‌Business trend and position of the Group and Bijou Brigitte AG Business development of the Group as a whole The Bijou Brigitte Group's sales increased by 1.2% to EUR 338.0 million in 2025 (previous year: EUR 333.9 million) and were therefore within the forecast range of EUR 330 to 350 million. This was primarily the result of positive business development in the Italy, Portugal, France and Spain segments. 2021 2022 2023 2024 2025 216.028 306.463 327.883 333.891 338.000 Bijou Brigitte Group: Revenue (in TEUR) 2021-2025 Earnings before taxes (EBT) amounted to EUR 34.7 million in the reporting period, compared with EUR 33.2 million* in the previous year, and was thus within the forecast range (EUR 26.0 million to EUR 36.0 million). This is principally due to the increase in revenue and the fall in the ratio of materials costs to sales occasioned by the movement in the US dollar exchange rate, with cost increases in other areas having been kept in check. The Group's post-tax earnings for 2025 were EUR 23.7 million, compared with EUR 23.4 million* the previous year. Capital expenditure (excluding short-term financial investments) was EUR 7.6 million, below the previous year's level (2024: EUR 14.1 million) and below the forecast range (EUR 12.0 million to EUR 18.0 million). This was because full refurbishments were carried out at only 50 stores, fewer than planned. The 102 store upgrades that were carried out during the year were mainly classified within other operating expenses (repair and maintenance costs), which rose to EUR 6.7 million in 2025 (2024: EUR 4.0 million). At EUR 74.6 million, inventories were EUR 3.0 million higher than at the previous year-end (2024: EUR 77.6 million*). This was slightly below the forecast range (EUR 75.0 million to EUR 85.0 million). This is mainly attributable to the favourable US dollar exchange rate in 2025 and the corrections made pursuant to IAS 8. The equity ratio fell slightly to 56.2% in the reporting year (previous year: 56.9%*) and was thus within the forecast (53.0% to 58.0%). The main reason for the slight decline is the decrease in group equity that resulted from the share buyback programme carried out in the period to 15 June 2025. The number of stores at 31 December 2025 was 904, slightly below the equivalent prior-year figure (31 December 2024: 913). Business trend by segment Revenue in the German segment reduced by 1.7% to EUR 169.3 million in the reporting year (previous year: EUR 172.3 million) and profit before taxes for the segment was EUR 19.5 million (previous year: EUR 21.4 million*). This effect is attributable to subdued consumer sentiment and the associated drop in business at the German stores. While the US dollar exchange rate had a positive effect on the ratio of materials costs to sales, a negative effect resulted from the EUR 3.8 million in foreign currency losses (a substantial rise from EUR 0.8 million in 2024), which essentially arose from the redemption on maturity in 2025 of US government bonds that had been purchased in 2024. Interest income also fell by EUR 2.3 million relative to the previous year, as a result of the general interest rate environment. Capital expenditure fell from EUR 8.0 million in the previous year to EUR 3.5 million in the reporting year, with the majority of funds being invested in store modernisation. In the Spanish market, sales rose by 2.5% from EUR 35.8 million to EUR 36.7 million, due to a positive trend in consumer demand. Pre-tax earnings rose from EUR 4.4 million* to EUR 5.7 million, mainly due to the higher revenues and the improved margin on materials costs. Capital expenditure totalled EUR 0.2 million in the Spanish segment in the reporting period (previous year: EUR 0.5 million). Investments were mainly made in store renovations. At EUR 36.6 million (previous year: EUR 34.4 million), 2025 sales in the Italian segment were up 6.3% on the previous year. Earnings before taxes rose from EUR 2.7 million* in the previous year to EUR 2.8 million in the reporting year, mainly due to the revenue increases. Capital expenditure totalled EUR 0.8 million and mainly concerned the renovation of stores (previous year: EUR 1.8 million). At EUR 8.1 million, sales in the Portuguese segment were 3.5% above the previous year's level of EUR 7.8 million. The main reason was positive consumer sentiment due to higher real wages. Thanks to the rise in sales, segmental EBT rose to EUR 1.3 million after EUR 1.0 million* in the previous year. Capital expenditure of EUR 0.1 million in the reporting year mainly concerned store renovations (previous year: EUR 0.4 million). The French segment increased its revenue by 3.0% in the reporting year to EUR 28.8 million, compared with EUR 28.0 million in the previous year. Earnings before taxes in this segment climbed to EUR 0.6 million (previous year: EUR -1.9 million*). The substantial improvement in segmental earnings is mainly due to the substantial reduction in depreciation and impairment charges, from EUR 6.0 million in 2024 to EUR 4.3 million. The previous year's figure included impairment losses of EUR 1.3 million, compared with EUR 0.2 million in 2025. Capital expenditure of EUR 0.5 million (previous year: EUR 0.9 million) concerned renovations and store openings. Sales in the 'Other countries' segment, which comprises various European countries, increased by 5.2% to EUR 58.5 million in the reporting year (previous year: EUR 55.6 million). Segmental EBT fell to EUR 4.4 million after EUR 5.2 million* in the previous year. In this segment, the main causes were general cost increases, particularly for personnel, as well as higher other expenses. Capital expenditure amounted to EUR 2.4 million (previous year: EUR 2.5 million) and primarily concerned store openings and renovations. Business development for Bijou Brigitte AG Bijou Brigitte AG's revenue fell by 1.2% to EUR 225.4 million in 2025 (previous year: EUR 228.0 million) and was thus within the forecast range (EUR 222.0 million to EUR 232.0 million). This development is primarily attributable to subdued consumer sentiment in the stores. Net income for the reporting period was EUR 23.1 million, compared with EUR 22.7 million the previous year (+1.6%). The rise is mainly attributable to higher other operating income, lower materials costs due to the lower cost of buying in dollars, and higher income from investments. This was partly offset by the negative effect of higher foreign currency losses of EUR 3.8 million (2024: EUR 0.8 million), disclosed within other operating expenses. These losses essentially resulted from the redemption on maturity in 2025 of US government bonds purchased in 2024. Earnings from the Dutch stores were EUR -0.5 million (previous year: EUR 0.0 million). This figure is reflected in the net income of Bijou Brigitte AG, as the stores are managed as branch establishments of the German company. Operating profit before taxes, at EUR 16.6 million, was within the forecast range of EUR 15.0 million to EUR 23.0 million, albeit EUR 6.8 million (29.0%) below the previous year's figure of EUR 23.3 million. With gross profit having risen by EUR 0.7 million due to the movement in the US dollar, the decline is attributable in particular to the EUR 1.5 million rise in personnel expenses, the EUR 3.0 million increase in foreign currency losses and the EUR 1.0 million rise in maintenance expenses. Against this, other operating expenses were higher by EUR 1.3 million, the rise being due to refunds of EUR 2.4 million from a service provider (see the remarks on the ongoing legal case in the section "Details of transactions not included in the balance sheet as per Section 285 (3) HGB" in the notes to the financial statements for the year ended 31 December 2025). Capital expenditure of EUR 3.9 million was below both the prior year level (previous year: EUR 8.7 million) and the forecast range of EUR 6.0 million to EUR 9.0 million, mainly due to the lower amount of in-house software development and the smaller number of store renovations and openings. Inventories of EUR 49.1 million declined by EUR 5.7 million from the prior-year level of EUR 54.8 million and were thus lower than the forecast range of EUR 52.0 million to EUR 57.0 million. This is mainly due to the favourable US dollar exchange rate in 2025. At 44.8%, the equity ratio was slightly below the previous year's level (previous year: 47.1%). The number of German and Dutch stores as of 31 December 2025 was unchanged at 433 (31 December 2024: 433), in line with the forecast for 2025. ‌Net assets, financial position and results of operations for the Group Net assets Non-current assets decreased in comparison with the previous year (EUR 176.0 million*) to EUR 169.7 million in the reporting year. This effect resulted mainly from the decrease in right-of-use assets and lower property, plant and equipment, due to lower capital spending on new stores and upgrades. At EUR 74.6 million, inventories were slightly below the previous year's level (previous year: EUR 77.6 million*). This is mainly attributable to the favourable US dollar exchange rate in 2025 and the corrections made pursuant to IAS 8. Current assets (excluding cash and cash equivalents) remained approximately the same as in the previous year, at EUR 151.6 million (previous year: EUR 151.8 million). In the reporting period, cash and cash equivalents decreased to EUR 78.3 million compared to EUR 81.8 million in the previous year, accounting for 19.6% of total assets (previous year: 20.0%*). Bijou Brigitte Group: Overview of net assets in EUR millions 2025 2024 Non-current assets 169.7 176.0* Inventories 74.6 77.6* Cash and cash equivalents 78.3 81.8 Other current assets 77.0 74.3 Equity 224.6 233.2* Non-current liabilities 99.6 102.7 Current liabilities 75.4 73.7 As of 31 December 2025, Bijou Brigitte's total assets were EUR 10.0 million lower than at year-end of the previous year, giving an equity ratio of 56.2% (previous year: 56.9%*). As of 31 December 2025, the Bijou Brigitte Group had equity of EUR 224.6 million, compared to EUR 233.2 million* as of 31 December 2024. Long-term liabilities reduced from EUR 102.7 million (31 December 2024) to EUR 99.6 million (31 December 2025). These mainly comprise lease liabilities, which fell from EUR 96.8 million as of 31 December 2024 to EUR 94.2 million as of 31 December 2025. This was due in particular to the lower number of stores than in the previous year, as a result of the decision not to extend or replace expired leases. Financial position Main features and objectives of financial management The financial management of the Bijou Brigitte Group is controlled centrally by the Group parent company. This area of responsibility ranges from capital structure and liquidity management to controlling financial risks. The aim of financial management is primarily to ensure a high equity ratio so as to safeguard the Group's financial independence from the need to borrow capital. At the same time, a high level of earnings should be ensured over the long term through a solid financial basis. The Management Board and Supervisory Board decide annually on a proposed dividend once the annual financial statements are available and after considering the future business outlook. Derivative financial instruments are not used to hedge financial risks. Exchange rate risks in the Bijou Brigitte Group arise primarily from operating activities and from the investment of cash in dollar-denominated government bonds and term deposits. Development of financial position Cash flow from operating activities amounted to EUR 80.3 million in 2025 compared with EUR 74.0 million in the previous year. Given Group net profit, after excluding the financial result, depreciation and amortisation, of EUR 80.5 million (previous year: EUR 78.9 million), the rise is attributable notably to the cash effect of the EUR 2.4 million change in inventories. Cash flow from investing activities was EUR -11.2 million (previous year: EUR 6.5 million). The change is mainly attributable to cash flows in relation to short-term liquidity investments, which are disclosed within cash flows from investing activities. Such investments gave rise to outflows of EUR 3.8 million, compared with net inflows of EUR 20.4 million in the previous year. Cash outflows for investments in property, plant and equipment were also EUR 6.2 million lower than in the previous year. In 2025, cash flow from financing activities was EUR -72.4 million, following EUR -68.3 million in the previous year. This change is primarily due to payments of EUR 6.0 million for purchases of own shares (previous year: EUR 2.0 million). Bijou Brigitte Group: Overview of financial position in EUR millions 2025 2024 Cash flow from operating activities 80.3 74.0 of which: depreciation, amortisation and impairment of fixed assets 10.0 10.9 of which: financial result 5.3 2.9 of which: changes in inventories, trade receivables and other assets 2.4 0.3 Cash flow from investing activities -11.2 6.5 of which: outflows related to short-term financial investments -3.8 20.4 of which: investments in property, plant and equipment and intangible assets -7.5 -14.1 Cash flow from financing activities -72.4 -68.3 of which: dividend payments -26.2 -26.9 of which: repayments of lease liabilities (IFRS 16) -40.1 -39.2 Bijou Brigitte does not have any loans from banks or other credit institutions. Available overdraft facilities are minimal at EUR 0.3 million, as in the previous year, and were not utilised in the past financial year. Results of operations Thanks to positive business development in the Italian, French and Spanish segments as well as in the smaller European countries, Group revenue rose by 1.2% in 2025 to EUR 338.0 million (previous year: EUR 333.9 million). Other operating income rose from EUR 5.5 million in the previous year to EUR 6.4 million. The main reason for this was the significantly higher income from compensation payments of EUR 2.9 million (previous year: EUR 0.9 million). Please refer to the comments in section "E. Other notes - Ongoing legal cases" in the notes to the consolidated financial statements for 2025. The share of material costs in relation to Group revenue fell in 2025 to 19.0% (previous year: 21.2%*), with a material positive effect from movements in the US dollar exchange rate. Personnel expenses rose by 2.8% from EUR 92.9 million in 2024 to EUR 95.5 million in 2025, mainly due to the increase in the minimum wage in Germany and other general salary adjustments. In the past year, an average of 2,324 employees worked for the Bijou Brigitte Group (in terms of full-time equivalents; previous year: 2,361). Depreciation, amortisation and impairment of intangible assets, property, plant and equipment and right-of-use assets amounted to EUR 51.5 million in 2025, compared to EUR 52.6 million in the previous year. In the reporting period, depreciation of rights of use amounted to EUR 41.5 million (previous year: EUR 41.8 million). Depreciation and amortisation on property, plant and equipment and intangible assets amounted to EUR 10.0 million in the reporting period (previous year: EUR 10.9 million). Other operating expenses increased by 6.8% from EUR 87.4 million* in the previous year to EUR 93.4 million in the reporting year. This is primarily due to foreign currency losses of EUR 4.4 million (2024: EUR 1.5 million) and higher repair and maintenance costs of EUR 6.7 million (2024: EUR 4.0 million). Group earnings before taxes rose to EUR 34.7 million in 2025, compared with EUR 33.2 million* the previous year. The return on sales increased accordingly from 9.9%* in 2024 to 10.3%. Post-tax consolidated net profit for 2025 was up by 1.2% to EUR 23.7 million from EUR 23.4 million* the previous year. The income tax charge of EUR 11.0 million was EUR 1.3 million higher than that for the previous year. This corresponds to a Group tax rate (income tax/Group earnings before taxes) of 31.7%, compared to 29.4%* in the previous year. Bijou Brigitte Group: Overview of results of operations in EUR millions 2025 2024 Revenue 338.0 333.9 Other operating income 6.4 5.5 Cost of materials 64.2 71.0* Personnel costs 95.5 92.9 Amortisation, depreciation and impairment of intangible assets, property, plant and equipment, and right-of-use assets 51.5 52.6 Other operating expenses 93.4 87.4* Operating result before income taxes 34.7 33.2* Net profit after taxes 23.7 23.4* ‌Appropriation of profit and proposed dividend Bijou Brigitte modische Accessoires AG's net income, calculated in accordance with the provisions of the German Commercial Code (HGB), amounted to EUR 23.1 million in 2025 (previous year: EUR 22.7 million). Adding the profit brought forward of EUR 11.8 million and the withdrawal of EUR 14.0 million from retained earnings results in a balance sheet profit of EUR 48.8 million for the reporting period in the single-entity financial statements of the AG, compared to EUR 38.0 million in the previous year. At the Bijou Brigitte Group, ensuring that shareholders receive an appropriate share in the company's success is part of the corporate philosophy. The Management Board and Supervisory Board of Bijou Brigitte modische Accessoires AG will propose to the Annual General Meeting on 23 June 2026 that a dividend of EUR 6.00 per share (previous year: EUR 3.50) be approved for the 2025 financial year. Based on the total number of shares, this represents a dividend payout ratio of 205.24% of the Group's post-tax net profit. It would also correspond to a dividend yield (dividend/closing price at the end of the year) of 14.5% (previous year: 10.2%). The total payout would be EUR 48.6 million for 8,100,000 no-par value shares, or EUR 45.0 million based on the number of shares outstanding on the record date. The company's remaining balance sheet profit of EUR 0.2 million will be carried forward to the new account, along with the amount that would be distributed to the common shares held by the company on the day of the Annual General Meeting but, pursuant to Section 71b of the German Stock Corporation Act (AktG), is excluded from distribution. Earnings per share under IFRS were EUR 3.14 (previous year: EUR 3.04*). At a year-end share price of EUR 41.30, the price-earnings ratio was 13.2. ‌Net assets, financial position and results of operations for Bijou Brigitte AG Net assets Property, plant and equipment reduced by EUR 1.7 million, notably due to a lower level of capitalised shopfitting relative to the prior year. At EUR 49.1 million, inventories were EUR 5.7 million below the previous year's figure of EUR 54.8 million. This change was primarily due to lower purchasing costs due to the positive movement in the USD/EUR exchange rate. At EUR 7.1 million, receivables and other assets were EUR 2.7 million below the previous year's figure of EUR 9.8 million. This was mainly due to the reduction in receivables from related companies. The "other securities" of EUR 6.1 million reported under current assets are cash investments in the form of US government bonds. All government bonds held at the previous reporting date were repaid during the year in accordance with their scheduled maturity dates. The decline is therefore attributable to the lower holdings of government bonds compared with the previous year. In contrast, cash and cash equivalents rose by EUR 41.4 million from EUR 27.1 million (15.9% of total assets) as of the previous year-end to EUR 68.5 million (43.2% of total assets). For further information on the development of cash and cash equivalents, please refer to the comments on the development of the financial position of Bijou Brigitte AG. As of the balance sheet date on 31 December 2025, Bijou Brigitte AG had equity of EUR 70.9 million, compared with EUR 80.0 million as of 31 December 2024. The equity ratio stood at 44.8% of total assets, having decreasing slightly from the previous year's level of 47.1%. The main reason is the decrease in other retained earnings due to the share buybacks carried out during the year. Liabilities to affiliated companies decreased by EUR 3.3 million compared with the previous year. This is essentially due to the higher dividend distributions from subsidiaries to the German parent company. As in previous years, Bijou Brigitte AG did not take out any short or long-term loans from credit institutions in 2025. Financial position Main features and objectives of financial management For the main features and objectives of Bijou Brigitte AG's financial management, please refer to the details provided in relation to the Group, as the objectives of financial management for the company and the Group are the same. Development of financial position Cash flow from operating activities amounted to EUR 34.6 million in the reporting year compared with EUR 23.2 million in the previous year. This change of EUR 11.4 million is primarily attributable to the decrease in inventories and in receivables from affiliated companies. In 2025, Bijou Brigitte AG made capital expenditure of EUR 3.9 million (previous year: EUR 8.7 million). The reduction in capex is mainly due to lower investments in property, plant and equipment and in-house software development relative to the previous year. In 2025, cash flow from financing activities was EUR -33.4 million, compared to EUR -29.7 million in the previous year. This change is primarily due to repurchases of shares under the share buyback programme, which closed on 15 June 2025. Results of operations Bijou Brigitte modische Accessoires AG: Overview of results of operations in EUR millions 2025 2024 Revenue 225.4 228.0 Other operating income and own work capitalised 4.4 3.3 Cost of materials 68.8 72.1 Personnel costs 46.5 45.0 Depreciation and amortisation 5.6 5.6 Other operating expenses 92.1 87.0 Financial result -0.2 1.7 Operating result before taxes 16.6 23.3 Income from investments 13.9 8.0 Taxes on income and earnings and other taxes 7.3 8.6 Net income for the year 23.1 22.7 In 2025, Bijou Brigitte AG's revenue decreased by 1.2% to EUR 225.4 million (previous year: EUR 228.0 million), mainly due to cautious consumer sentiment in the German stores. The operating return on sales before taxes and dividends (operating profit as a percentage of revenue) was 7.3%, a decline relative to the previous year (previous year: 10.2%). This was mainly due to the lower operating profit. Other operating income rose to EUR 4.3 million in the reporting year (previous year: EUR 2.9 million). The main reason for this increase is the higher level of other income, due to the refund of EUR 2.4 million received from a service provider as mentioned earlier in this report. In 2025, the cost of materials as a percentage of sales fell to 30.5% (previous year: 31.6%). The cost of materials ratio was mainly affected by the positive impact of foreign exchange effects. Personnel costs rose to EUR 46.5 million. Despite a further increase in the minimum wage, this was only a slight rise relative to the previous year (previous year: EUR 45.0 million). Optimised staff planning in stores counteracted the increase and thus helped to ensure that costs were only slightly above the previous year's level. In the past financial year, Bijou Brigitte AG employed an average of 881 people (in terms of full-time equivalents; previous year: 896). Other operating expenses rose during the period by EUR 5.1 million to EUR 92.1 million (previous year: EUR 87.0 million). This development is primarily attributable to foreign currency losses of EUR 3.8 million (EUR 3.0 million higher than the previous year) and the EUR 1.1 million increase in repair and maintenance costs. Net interest income fell to EUR -0.2 million in the reporting year from EUR 1.7 million in the previous year, mainly due to lower interest income due to the lower interest rate environment and lower interest income from government bonds. ‌Overall statement of the Management Board on the economic position of the Bijou Brigitte Group and Bijou Brigitte AG Despite many economic uncertainties, persistent cost increases and, in some cases, strongly depressed consumer sentiment, sales increases were achieved in the Italy, Portugal, France, Spain and Other countries segments. The Bijou Brigitte Group generated sales of EUR 338.0 million in 2025. This represents a year-on-year increase of 1.2%. Reported Group earnings before income taxes increased from EUR 33.2 million* in the previous year to EUR 34.7 million, primarily due to sales growth, the improved ratio of materials costs to sales, and cost control. The store network comprised 904 locations at the year-end (previous year: 913 stores). Bijou Brigitte AG generated sales of EUR 225.4 million in 2025. This represents a year-on-year decline of 1.2%. The main reason for the revenue losses was the persistence of subdued consumer sentiment in Germany. At EUR 16.6 million, reported operating profit was 29.0% down on the previous year's figure of EUR 23.3 million. With gross profit having risen by EUR 0.7 million due to the movement in the US dollar, the decline is attributable in particular to the EUR 1.5 million rise in personnel expenses, the EUR 3.0 million increase in foreign currency losses and the EUR 1.0 million rise in maintenance expenses. Against this, other operating expenses were higher by EUR 1.3 million, the rise being due to refunds of EUR 2.4 million from a service provider (see the remarks on the ongoing legal case in the section "Details of transactions not included in the balance sheet as per Section 285 (3) HGB" in the notes to the financial statements for the year ended 31 December 2025). The Management Board considers the position of both the Bijou Brigitte Group and Bijou Brigitte AG to be stable and resilient in 2025. With a sustained high equity ratio and excellent liquidity, the company is on a solid financial footing for the new financial year. ‌Non-financial performance indicators Changes to the store network Bijou Brigitte opened 25 new stores across the Group in the year under review. 34 locations were closed. The closures mainly concerned the franchise partner in Saudi Arabia, as well as the Group's own stores in France and Germany. A total of 50 stores were renovated in the year under review, while smaller optimisation measures were implemented in the shop design of a further 102 stores. Five stores relocated to better sites. As of 31 December 2025, the Group had a total of 904 stores in Germany and abroad, including the 14 franchise stores (31 December 2024: 913). Within Bijou Brigitte AG, seven new stores were opened in Germany and six stores were closed. This increased the number of German locations from 418 in the previous year to 419. In the Netherlands, there was one new opening and one closure in the reporting year, leaving the number of stores unchanged from the previous year at 14. As of 31 December 2025, Bijou Brigitte AG had a total of 447 stores (previous year: 456). In Germany, 29 locations were renovated and 62 stores optimised in 2025. Four stores were optimised in the Netherlands. The number of German concession sites was 430 in the past year (previous year: 452). ‌OPPORTUNITY AND RISK REPORT Opportunities and risk management The early recognition of risks and opportunities and the measures taken in response are an important part of corporate governance at Bijou Brigitte. As part of the company's risk management system, appropriate principles and procedures have been set out in a policy, applicable throughout the Group, which is based on legal requirements and professional standards (such as those of the Institute of Public Auditors in Germany [IDW]). Risk management is an integral part of the centralised and decentralised planning, management and control processes. The management of risks and opportunities in principle covers the entire statutory consolidation group of Bijou Brigitte AG. Sustainability aspects The issue of sustainability is becoming increasingly important, both among younger customers and in legislation. In order to reflect this growing relevance, Bijou Brigitte ceased to report separately on risks and opportunities arising from sustainability matters as of the 2024 financial year. In order to accurately identify sustainability risks across the entire value chain, all identified risks are now assigned to the sustainability categories E (environment), S (social) and G (governance) and marked accordingly in the risk matrix. By continuously raising staff awareness of sustainability and consistently implementing all necessary statutory measures and requirements, the Bijou Brigitte Group will be able to continue making its contribution to protecting the environment. This could also be a positive sign for customers, shareholders and employees to be conscious of their responsibility for future generations and actively contribute to achieving European sustainability targets. Not least, sustainable business development could also represent a competitive advantage in the market. The assets on Bijou Brigitte's balance sheet (mostly leases) and its commercial and operating fixtures and equipment are not significantly affected by environmental risks. Implementation of our sustainability strategy consequently does not impact the intrinsic value of the assets. Fines or penalties are not foreseeable in this regard. Overall statement of the Management Board In 2025, the Bijou Brigitte Group continued to monitor the macroeconomic environment, developments in the retail sector, and its in-house processes in order to identify risks and opportunities early on. Structured systematic risk management processes ensure the efficient management of overall risks in the Group. Developments that pose a threat to the company as a going concern can thus be recognised in good time and appropriate measures can be taken to ensure the company's continued existence. Risk management ensures that urgent risks are forwarded to the Management Board as appropriate at all times. Due to the general geopolitical risks and uncertainties in particular, permanent risk monitoring is the focus of the entire company. The Bijou Brigitte Group is not directly impacted by the effects of the ongoing Russian war of aggression, as Bijou Brigitte does not operate stores, franchise stores or concessions in Russia or Ukraine. However, the indirect effects, notably inflation risks, financial market movements and high purchase costs for energy and raw materials, may affect the Group's net assets, financial position and results of operations and are therefore monitored continuously. The latest war in the Middle East also has no direct impact on the Bijou Brigitte Group, as Bijou Brigitte has no operating activities in this region apart from the eight franchise stores in Saudi Arabia. However, potential inflation risks, high purchase costs for energy and raw materials, movements in the financial markets and supply chain disruptions could indirectly affect the Group's net assets, financial position and results of operations and are therefore monitored continuously. The effects of a potential further escalation of the Iran conflict on the global economy and sector growth in 2026 cannot be determined with sufficient certainty. As of the time of reporting, there had been no perceptible impact on the business of Bijou Brigitte modische Accessoires AG. However, it cannot be ruled out that such an escalation could have a material adverse effect on the company's net assets, financial position and results of operations in 2026. Depending on the length of the conflict, freight costs could rise, which would impact the valuation of inventories. In addition, the current developments in US tariff policy and the reactions of the countries affected, in particular the EU, are being monitored, even though the punitive tariffs imposed have no direct impact on Bijou Brigitte's business activities. The Management Board continuously analysed and monitored the risk-bearing capacity of the Bijou Brigitte Group in 2025, taking into account earnings and liquidity developments. After assessing all current risks and interdependencies, there were no risks jeopardising the Bijou Brigitte Group's net assets, financial position and results of operations in the year under review. Risk definition Risks are events and developments that have a certain degree of probability of occurring and that have a major negative financial impact on the achievement of targets and the fulfilment of the company's mission. However, this definition should not be equated with risk avoidance. Rather, it is a matter of managing opportunities and risks in an effective and efficient way. Essential risks to the company's business activities or continued existence should be identified, evaluated and contained or reduced. Opportunities should also be utilised in the best possible way. The aim is to apply risk management systematically in order to minimise the potential threat posed by unknown and/or insufficiently managed risks. When identifying opportunities and risks, social and ecological factors that affect Bijou Brigitte's business activities must be taken into account in addition to economic aspects. Risk strategy The aim of the Bijou Brigitte Group's risk strategy is to safeguard the continued existence of the company and, furthermore, to increase the company's value on a sustainable basis. Opportunities should be used in an optimal way and company risks should be proactively managed. Risks to the continued existence of the company must be avoided. Risk management process Bijou Brigitte has defined the following uniform risk management sub-processes, all of which are mandatory: identifying and reporting risks at an early stage, assessing risks in the same way, managing risks and developing measures, monitoring risks and tracking the implementation of measures. The known risks from the previous year and newly identified risks for the current year are reviewed twice-yearly by the respective risk owners. The assessment is adjusted if necessary, and the resulting risk potentials are reassessed. Risks are monitored over a period of twelve months. Dealing with ad hoc risks If new risks arise in the short term due to changes in general social, political, market or industry conditions or in the business itself, the relevant risk owner has a duty to inform the risk manager and the Management Board immediately. In this case, the new risk is assessed accordingly. Furthermore, appropriate measures must be taken to avert or minimise the new risk. Roles and responsibilities The Management Board defines the corporate strategy and objectives as a foundation on which the risk management system is set. The binding system requirements are therefore formulated top-down and apply to all operating units. The actual responsibility for recording and managing risks along the value chain starts bottom-up with the responsible specialists in the operating units. In the course of internal risk training, employees tasked with risk management were informed about the set-up and workflows in place, as well as how to implement processes. Risk assessment Accounting for the countermeasures taken, the identified risks are subject to a standardised assessment in terms of their probability of occurrence and scale of potential damage, and classified as low, medium, high or very high. Potential risk interdependencies are also noted. In addition, risk owners use the risk survey to assess whether the risks that exist within their sphere of responsibility have cross-departmental impacts. Any such risk interdependencies that exist are also assessed. The departments/risk owners involved will then introduce appropriate joint measures to control the risk. Risk aggregation and risk-bearing capacity If multiple risks posing a very high total risk were to occur at the same time and over an extended period, this could jeopardise Bijou Brigitte's ability to continue as a going concern. In the risk-bearing capacity calculation, the material risks are summarised into an overall risk position (risk aggregation) and compared with the risk coverage potential. Adequate risk-bearing capacity is deemed to exist if the risk coverage potential is sufficient to cover all material risks on an ongoing basis. Risk coverage potential is defined as the maximum amount of capital available to address risks. At Bijou Brigitte, it is made up of shareholders' equity and/or cash and cash equivalents. Risk management The aim of risk management is to develop individual countermeasures to reduce the likelihood of a risk occurring and/or to limit the maximum amount of potential damage. A general distinction is drawn between four forms of management: prevention, acceptance, mitigation and transfer. No transactions are performed that violate the Group's code of conduct or company guidelines. Furthermore, insurance policies may be taken out to compensate for financial risks. Risk reporting Risk reporting ensures that the findings of risk control are communicated in a timely, understandable and meaningful way. The causes of risk and the corresponding countermeasures are documented in tabular form. A risk matrix is then created to allow swift identification of material risks. The risks are also ranked in order of priority. A risk report is prepared at least twice a year and sent to the Management Board and Supervisory Board. In the event of an exceptional risk situation, the Management Board and Supervisory Board are informed immediately. Risk reporting covers both accountability functions (proof of compliant behaviour) as well as safeguarding functions (measures to prevent errors) and auditability functions (basis for the Supervisory Board's review, internal audit). Key features of the internal control system (ICS) and risk management system (RMS)21 Bijou Brigitte's ICS and RMS are designed in accordance with the principles, guidelines and measures laid down by the Management Board, which are aimed at implementing strategic and operating decisions in the organisational structure. This includes managing risks and opportunities with a view to achieving business goals, the correctness and reliability of internal and external financial reporting and compliance with legal provisions and requirements relevant to Bijou Brigitte. It also encompasses sustainability matters, which are continuously developed and improved in accordance with the regulatory requirements. Our ICS and our RMS are continuously adjusted in line with Bijou Brigitte's specific needs. For a clear definition and division of responsibilities, and to effectively combat risks, Bijou Brigitte has put in place a three lines of defence model. In the first line, the operating units take charge of putting appropriate measures and effective controls in place to reduce risks within their sphere of responsibility. The second line of defence comprises accounting governance functions and risk and compliance ‌21 This information constitutes information outside the scope of the management report as defined by Section A.5 of the German Corporate Governance Code. It thus goes beyond the legal requirements for the management report and is therefore not subject to a review of its content by the auditor . management, which assure compliance with the internal control framework and the management of control processes independently of the operating units. The Management Board, Audit Committee and Supervisory Board of Bijou Brigitte modische Accessoires AG are kept informed both about the suitability and effectiveness of the controls in place and the risk position of the business, as well as about potential material control weaknesses. Updates are provided regularly and on an ad hoc basis where required. The third line of defence is Internal Audit, whose independent review function involves reviewing the compliance of the ICS and RMS with overall legal requirements and Group guidelines, including the form, observance and effectiveness of controls laid down in connection with the ICS and RMS. Where necessary, appropriate measures are initiated in cooperation with risk management and the relevant department, following a defined process in order to remedy identified points of weakness. Internal Audit reports regularly to the Management Board on the results of its work. In the reporting year, an intensive review was performed by both internal and external experts on selected areas of the Group ICS. To ensure continued compliance with the increased requirements for a timely and effective ICS, various documentation and control processes were updated and amended. Monitoring the appropriateness and effectiveness of the RMS is a responsibility of the Supervisory Board, which is fulfilled by the audit committee of the Supervisory Board. As part of its audit of the consolidated financial statements, the Group's external auditor also assesses the adequacy of the measures put in place for the early identification of risks to the Group's ability to continue as a going concern. The company monitors the processes and systems of the ICS and RMS on an ongoing business, in order to remedy any identified weaknesses and ensure the continuous improvement of processes and systems. No matter how internal control and risk management processes are designed, however, it must be borne in mind that there can never be an absolute guarantee that errors in business processes will be uncovered, that compliance breaches will be prevented in all conceivable circumstances or that all risks will be fully identified in advance. Accounting-related internal control system An accounting-related internal control system has been set up to ensure the correctness of bookkeeping and accounting and the reliability of financial reporting in the consolidated financial statements. As an integral part of the Group accounting process, it comprises security and monitoring measures for preventative, supervisory and detection purposes in accounting and operating functions. Such measures include the separation of functions, the double-check principle, approval processes, IT checks, access restrictions in the IT system and system-supported methods to process Group accounting-related data. Process instructions, standardised reporting formats and IT-based reporting and consolidation processes serve as support for Group accounting and the accounting-related reporting for the subsidiaries included in the consolidated financial statements. Standard Group-wide accounting and valuation methods are ensured by comprehensive Group accounting requirements. Protection systems defend digital data from unauthorised access. In the reporting year, selected areas of the accounting-related internal control system were reviewed to ensure that they were still up to date. In the course of this work, the internal guideline on the review and approval of accounts was updated and the resulting amendments were made to the IT system workflow. ‌Explanation and assessment of significant opportunities and risks No new material risks were reported by risk owners in 2025, with the exception of the ad hoc risks described in the section on "Ongoing legal cases". The risk and opportunity profile has thus not changed significantly compared with the previous year. The risks and opportunities that were assessed as at least 'medium' in the internal risk reporting in terms of the risk assessment described are presented below. Economy The general economic conditions have an influence on the business activities and thus on the net assets, financial position and results of operations of the Bijou Brigitte Group. Unpredictable disturbances within the global economic interdependencies can lead to effects that are difficult to assess. Economic risks potentially lead to a reduction of purchasing power in the affected countries and regions and can thus cause a decline in demand for offered products. Economic risks could be associated with a high impact on results over the one-year observation period due to the associated fluctuations in sales. Due to the continuation of the war between Russia and Ukraine, market conditions in Europe remain largely unchanged. Although inflation has stabilised, long-term changes, for example in consumer preferences and market conditions, remain subject to a high degree of uncertainty and must continue to be monitored. The latest war in Iran could also impact the economy in the longer term. In particular, high energy and raw materials costs and supply chain disruptions could have an adverse impact on inflation and economic growth. This could have an indirect impact on the Group's net assets, financial position and results of operations. The Bijou Brigitte Group continuously monitors the macroeconomic, political and regulatory situation in all major markets in order to identify potential problem areas at an early stage and quickly adjust business activities accordingly. Possible adjustments include shifting investments to other, more attractive markets, consolidating the overall store network, especially by closing unprofitable stores, and permanently implementing cost-saving measures. Overall, Bijou Brigitte continues to classify the cyclical and macroeconomic risks as high. Opportunities arise for Bijou Brigitte in such a phase of economic weakness through the value for money of the items it offers, as a change in purchasing behaviour from high-priced to low-priced products could have a positive effect on Bijou Brigitte's sales. Market and industry In addition to economic and industry-specific political conditions, changes in consumer preferences and brand perception in particular can pose risks. A change in customer behaviour with regard to consumption habits, for example, is leading to a shift from bricks-and-mortar to online retailing. This contributes to the partial desolation that is already being seen in city centres and is accompanied by a decline in visitor numbers in shopping centres and high streets, which in turn has a negative impact on footfall in stores. Bijou Brigitte permanently analyses the market situation as well as the sales development and customer frequencies in all of the Group's key markets. New offers and services are continuously developed in order to offer customers an attractive shopping experience and thus to increase customer frequency and customer loyalty over the long term. Currently, we are only seeing a slight change in customers' purchasing behaviour. Changes in customer behaviour or consumer preferences are therefore having no material impact on results. Nevertheless, the risk continues to be classified as high in 2025. Bijou Brigitte continues to work on the consistent expansion of its online retail business and its activities on social media channels. The further integration of in-store and online retail within an omnichannel strategy creates opportunities for Bijou Brigitte to further increase brand awareness and sales and respond to changed customer requirements. Possible changes in the legal framework can also have a negative impact on the development of sales. The in-store fashion market has been under pressure for years, and current political crises have further exacerbated the situation. Growing pressure from competitors and changes to the legal framework are additional risks that are classified as medium for 2025. Risks may arise, for example, from the fact that Chinese suppliers are increasingly flooding the market with price-dumped products in both online and in-store retail, particularly against the backdrop of the current US tariff policy. Bijou Brigitte continuously monitors developments in the competitive environment in the individual country markets. This may present Bijou Brigitte with opportunities, as competitors could withdraw from the market and permit Bijou Brigitte to further consolidate its market position. Procurement Bijou Brigitte sources the majority of its goods from the Far East. This gives rise to potential purchasing risks, which may stem, for example, from rising commodity, material and freight costs, disruptions in the supply chain, quality problems or changes in legal requirements. In particular, the current war in the Middle East may give rise to higher energy, oil and gas prices, which could impact freight costs. The price of silver is also a major factor for Bijou Brigitte, as silver jewellery makes up part of the product range. Movements in the silver price depend heavily on overall economic and political conditions and are inevitably prone to fluctuation. It is to be assumed that the current geopolitical uncertainties, increased demand and limited available supply could cause the price of silver to go up. The company counteracts these risks within the framework of its risk management. The broad-based network of suppliers means potential risks associated with dependency on individual suppliers or their failure to deliver are minimised. Selling prices and the product range are also adjusted - as far as possible - to reflect current market conditions. This risk is again classified as high in 2025. Failure to meet quality requirements or agreed delivery times, changes in procurement conditions in the supplier country due to wars or sanctions, or the potential loss of a supplier due to sudden business closure, force majeure or epidemics may all have a negative impact on Bijou Brigitte. Our supplier network is geographically positioned in such a way that the probability of a complete failure of deliveries due to natural disasters or similar events is considered to be very low. Suppliers are also regularly made aware of these issues, in particular through our Supplier Code of Conduct. Nevertheless, procurement risk is still assessed as 'medium' overall. If violations of legal or regulatory requirements lead to the closure of factories in the countries where our products are manufactured, this could result in longer lead times due to production stoppages or to revenue losses due to a complete loss of supplies. Similarly, legislative changes aimed at promoting more sustainable energy use in producing countries may lead to higher procurement costs. Our Supplier Code of Conduct, which is binding on all suppliers, forms the basis for compliance with minimum labour standards, human rights and the protection of nature and the environment. Bijou Brigitte mitigates these risks by conducting regular on-site quality audits and consistently following up on violations of human rights. A balanced supplier portfolio and the expansion of the supplier network to other countries also contribute to risk reduction. This risk group is classified as medium for 2025. Human resources The demands on a successful HR management system are increasing due to the digital transition, demographic and social change and the rising demand for specialists and managers. Changes in the law along with recent court rulings mean that there is a need to regularly overhaul existing regulations on labour law. Attracting, developing and retaining talent poses major challenges for companies, especially due to demographic change. This is countered with various personnel marketing measures. Furthermore, internal employees are increasingly being trained to fill vacancies that have arisen in other departments. In this way, the workforce can be optimised. The existing applicant management system is being continuously developed to facilitate the administrative processes in recruiting. The selection process will also be further improved to ensure that each vacancy is filled by the right employees with the right skills. Increasing use is also being made of digital recruitment options. To retain qualified staff, the remuneration system is regularly adapted to the respective target groups and market conditions, and flexible working time models offered as far as possible. Vocational training is being continued both at the head office and in the stores. The staff shortage risk continues to be assessed as medium for 2025. Opportunities could arise through, e.g., stepping up HR marketing measures, so as to position Bijou Brigitte as an attractive employer and thus find suitable applicants. An unforeseen increase in the German minimum wage would also have a corresponding impact on the future results of operations of the Bijou Brigitte Group and Bijou Brigitte AG and, depending on the extent of the minimum wage adjustment, could result in a significant increase in personnel expenses and other distribution costs. Bijou Brigitte considers that this is unlikely to occur, however, as the Minimum Wage Commission has already laid down increases for 2026 and 2027, such that further increases are not expected in the forecast period. In order to at least partially offset the increased costs, Bijou Brigitte could be forced to raise its sales prices. It might also become necessary to renegotiate the commission paid to lessees. Optimised staff planning, on the other hand, could mitigate the increase in personnel costs. Overall, this risk is assessed as medium. Pandemic The potential risks posed by governmental measures to contain infection rates during a pandemic can have huge effects on the entire Bijou Brigitte Group. In particular, possible store closures during lockdowns and far-reaching restrictions on access to store locations can lead to a massive slump in sales while costs continue to be incurred. Bijou Brigitte constantly monitors current geopolitical and economic developments in European countries and, if necessary, will take early action to minimise the risk of another pandemic as far as possible. This includes the consolidation of the overall store network, especially the closure of unprofitable stores, the securing of liquidity and the permanent implementation of cost-saving measures. E-commerce is being expanding on a continuous basis. In the event of another pandemic, all necessary protective measures will be taken to minimise the risk of infection for employees and customers. To this end, Bijou Brigitte's protection concept is regularly adapted to the applicable regulations and framework conditions. The risk continues to be classified as medium in 2025. Currency A large proportion of merchandise is purchased in US dollars. If the US dollar appreciates (against the EUR), purchasing costs rise accordingly. Short-term price fluctuations, which could arise, for example, as a result of the current US tariff policy, will be absorbed, as the inventory provides a certain buffer. Longer-term exchange rate fluctuations are not hedged. The risk of a subsequent narrowing of the gross margin can sometimes be reduced by changing the selling price. The foreign exchange market is continuously monitored and the information obtained is passed on to the commodity planning department. Overall, the risk continues to be classified as medium. The dollar-denominated financial assets held by the Group are also subject to the risk of fluctuations in the US dollar exchange rate. Conversely, a falling US dollar exchange rate could give rise to opportunities, as lower costs of supply could enable higher profit margins to be achieved. In view of the current US tariff policy, tariffs could lead to a weakening of the US dollar. Inventory management Inventory differences from shoplifting are mainly due to an increase in gang crime. Bijou Brigitte continuously monitors inventory differences in the stores. Furthermore, anti-theft devices in certain product areas and appropriate product presentation help to reduce theft. Overall, this risk continues to be classified as medium for 2025. Information technology Unauthorised intrusion into IT systems, malware, viruses and worms, as well as hardware and software manipulation, can lead to a loss of productivity and additional costs. Bijou Brigitte has a comprehensive IT security concept for permanent monitoring (BSI, DCSO) as well as for overseeing the control systems. Virus scanners, a firewall and a comprehensive access and authorisation concept are effective measures to combat cybercrime. This risk is assessed as medium for 2025. Interest rate risks The great uncertainties in the current geopolitical situation give rise to an increased risk of interest rate fluctuations. These may lead to a loss of interest income on short and long-term cash investments. Bijou Brigitte constantly monitors market movements and only places cash in investments with a fixed term and fixed interest rate. Only low-risk, flexible investments are considered. Ongoing legal cases In 2025, the Management Board was informed orally of the ad hoc risk of overstated logistics invoices from a particular contractor. Upon being notified of this ad hoc risk, the Management Board immediately informed the risk manager. Measures were promptly introduced to fully address and minimise the risk, both internally and with the assistance of outside experts. Following the introduction and implementation of these comprehensive measures, the risk was averted by terminating the business relationship with the contractor concerned. Internal investigations were also launched, which confirmed that a service provider had committed invoice fraud. This promptly led Bijou Brigitte modische Accessoires AG to conduct a comprehensive forensic examination. Further details are provided in the notes to the consolidated financial statements under B. Error corrections and E. Other notes. Bijou Brigitte is currently engaged in further negotiations with the insolvency administrator of the service provider and its former chief executive, with a view to recovering the portion of the loss that remains unpaid. The company and its legal representatives are striving to obtain maximum possible repayment of the outstanding loss from the former chief executive and/or the insolvent logistics provider. The outcome of the current discussions, the potential need for judicial action and the actual recoverability of the debt are all highly uncertain. The risk exists that the losses sustained with not be settled in the course of the negotiations, that the costs of the accrued interest and the advisory costs incurred for the performance of the investigations will have to be borne and that the associated liabilities will have to be paid in full. ‌SEPARATE NON-FINANCIAL REPORT The current sustainability report enables Bijou Brigitte to comply with the reporting requirements as laid down in Sections 289b et seq. and 315b et seq. of the German Commercial Code (HGB). The separate non-financial report for the 2025 financial year has been reviewed by the audit committee/Supervisory Board of Bijou Brigitte AG and is permanently available for consultation by the public on the website https://www.group.bijou-brigitte.com under the heading "Investor Relations/Sustainability". Sustainability-related opportunities and risks, especially climate-related risks, are, insofar as they exist and are material to the operations of Bijou Brigitte, set out in the "Opportunity and risk report" section of this management report. ‌OTHER INFORMATION Declaration pursuant to Sections 289f and 315d of the German Commercial Code (HGB) The declaration on corporate governance, the remuneration report and the remuneration system and the other disclosures required pursuant to Sections 289f/315d of the HGB are permanently available for consultation by the public on the website https://www.group.bijou-brigitte.com under the heading "Investor Relations/Corporate Governance". The declaration contains disclosures relating to corporate governance practices, organisation and working procedures, the diversity plan and the remuneration of the Management and Supervisory Boards, as well as the declaration of conformity pursuant to Section 161 of the German Stock Corporation Act (AktG). 2

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