Annual Financial Report 12 month period 2025

K R I - K R I M I L K I N D U S T R Y S . A .

General Commercial Registry No.: 113772252000

ANNUAL FINANCIAL REPORT

FOR THE PERIOD

1.1.2025 - 31.12.2025

(TRANSLATION FROM THE GREEK ORIGINAL)

This Annual Financial Report was created according to art. 4 of Law N. 3556/2007 and was approved by the Board of Directors of KRI-KRI SA. on 21h of April, 2026. It is posted online on the Company's official website: https://www.krikri.gr/oikonomikes-katastaseis

CONTENTS Page

Declarations of the members of the Board of Directors 3

4

Report of the Board of Directors

11

Independent Auditor's Limited Assurance Report on Sustainability Statement

15

Sustainability Statement

94

Independent Auditor's report

Statement of comprehensive income

102

Statement of financial position

103

Statement of change in shareholders' equity

104

Cash flow statement

105

General information

106

Significant accounting policies

106

Notes on Annual Financial Statements

118

Hereby we declare, that to the best of our knowledge:

The Financial Statements for the period ended 31 December 2025, were prepared in accordance with IFRS, accurately present the assets, liabilities, shareholder's equity and the financial results of "KRI-KRI Milk Industry S.A." and the Report of the Board of Directors accurately presents the performance and position of "KRI-KRI Milk Industry S.A." including the description of basic risks and uncertainties that it faces.

Serres, 21 April 2026

Confirmed by

Chairman & CEO

Vice-Chairman Member of the B.o.D.

PANAGIOTIS TSINAVOS ID A00592316

GEORGIOS KOTSAMBASIS ID Α02542421

ANASTASIOS MOUDIOS ID Α01924801

KRI KRI MILK INDUSTRY S.A.

REPORT OF THE BOARD OF DIRECTORS

FOR THE PERIOD OF 1 JANUARY 2025 UNTIL 31 DECEMBER 2025

Dear shareholders,

The present Annual Report of the Board of Directors (hereinafter referred to as the "Report"), concerning the period 01.01.2025 until 31.12.2025, drafted in accordance with the articles 150, 151 and 152, of Law 4548/2018, article 4 of law 3556/2007 and decision 8/754/14.4.2016 of the Hellenic Capital Market Commission. The Report includes all the necessary information in an objective and adequate manner and in the light of providing substantial and not typical information with regards to the issues included in such. In particular, the Report summarizes the financial information for the financial year 2025, the major events that took place during that period, the impact of those events on the financial statements, the main risks and uncertainties that the company may face in the near future and finally the most important transactions between the company and its related parties. The Report also contains non-financial information, such as the statement of the Corporate Governance, as well as additional information which are required by the relevant legislation.

In addition to the 2025 financial statements the Report includes the required by the law data and statements in the Annual Financial Report, which concern the financial year ended 31 December 2025. The financial statements, the independent auditor's report and the current report are posted on the Company's official website: https://www.krikri.gr/oikonomikes-katastaseis .The sections of the Report and the content are as follows:

KRI-KRI MILK INDUSTRY S.A. (hereinafter referred to as the "Company"), operates in the dairy industry. Our main business activities are the production of ice-cream, yogurt and fresh milk. Our extensive distribution network comprises of super market chains and small points of sale all across Greece. We export our products to more than 40 countries abroad. The headquarters and the production facilities are located in Serres, northern Greece. Additionally, the Company owns and operates a logistics hub located in Aspropyrgos, region of Attica, Greece. Its main purpose is the distribution of our products to southern Greece.

Company's turnover amounted to €328.816k compared to

€256.402k in 2024 (increased by +28,2%).

Ice cream sales increased by 12,6% in value amounting to

€54.736k compared to €48.604k in 2024. Accordingly, ice cream sales volume increased by +10,7%.

Yogurt sales increased by +32,4% in value amounting to

€271.547k compared to €205.088k in 2024. Accordingly, yogurt sales volume increased by +29,0%.

Finally, exports were 61,8% of total sales presenting an increase of +44,1%.

Company's gross profit margin was 27,0% compared to 29,7% in 2024 and specifically a) ice cream segment 39,0% compared to 43,7% in 2024 and b) yogurt segment 25,0% compared to 26,5% in 2024.

The net profit before tax amounted to €41.880k compared to €37.566k in 2024 (+11,5% increase). Moreover, net profit after tax amounted to €34.108k compared to

€34.547k in 2024 (-1,3% decrease). It is noted that in the current Financial Year a tax exemption of €1.430k has been recognized (2024: €5.285k). This amount relates to a government-funded grant supporting investment programs which are implemented under applicable development laws.

Finally EBITDA amounted to €48.310k, compared to

€42.599k in 2024 (an increase of +13,4%).

The Company's senior management seeks to maintain a limited exposure to debt. On 31/12/2025, the balance of the Company's loans amounted to €15.773k. The company holds a net cash position.

The European Securities and Markets Authority (ESMA / 2015 / 1415el) has published the final guidelines on "Alternative Performance Measures" (hereinafter "APM") which apply from July 3, 2016 to companies with securities traded on regulated stock exchanges. APM are disclosed by publishers when publishing regulated information and aim to enhance transparency and promote utility, as well as the correct and complete information of the investing community.

APM are a customized economic measurement of historical or future financial performance, financial position or cash flows, other than the economic measurement defined in the applicable financial reporting framework. That is, APMs on the one hand do not rely solely on the standards of the financial statements, on the other hand they provide substantial additional information, excluding items that may differ from the operating result or cash flows.

Transactions with non-operating or non-cash valuation with a significant effect on the Statement of Comprehensive Income are considered as elements that affect the adjustment of APM. These non-recurring, in most cases, funds could arise from, among other things:

• impairment of assets

• restructuring measures

• remediation measures

• sales of assets or divestitures

• changes in legislation, claims for damages or legal claims

  APM should always be considered in conjunction with the financial results prepared under IFRSs and in no case should they be considered as substitutes. The Company uses APM in order to better reflect the financial and operational performance related to the Company's actual activity in the reporting year, as well as the corresponding comparable period last year. The definition, analysis and calculation basis of APM, used by the Company, is set out below. It is noted that, for the calculation of APM, it was not considered necessary to make an adjustment to the items of the financial statements.

  1. EBITDA Margin

     This ratio is widespread in the investment community and is part of the general unit of profitability ratios, having the advantage that it isolates the effects of financial investment results, income tax and the main category of non-cash expenses which are depreciation.

     The Statement of Comprehensive Income includes " Earnings before interest, taxes, depreciation and amortization (EBITDA)", to which no adjustment is made.

     The "EBITDA Margin" Ratio is obtained by dividing "EBITDA" by Sales. Expresses the percentage that EBITDA has on Sales. The Management of the Company uses this ratio in the context of the wider evaluation of the operational performance of the Company.

  2. EBIT Margin

     This Ratio, like the previous one, is widespread in the investment community and is part of the general unit of profitability ratios, having the advantage of isolating the effects of financial investment results and income taxation.

     The Statement of Comprehensive Income includes " Earnings before interest and taxes (EBIT)", to which no adjustment is made.

     The "EBIT Margin" Ratio is obtained by dividing "EBIT" by Sales. Expresses the percentage that EBIT has on Sales. The Management of the Company uses this ratio in the context of the wider evaluation of the operational performance of the Company.

  3. Free Cash Flows to the Firm

     This index is part of the general unit of efficiency indices, as it shows the amount of cash available for distribution to shareholders and lenders of the company and at the same time is one of the key indicators of financial soundness.

     The index is calculated by adding total inflows / (outflows) from Operating Activities to the total inflows / (outflows) from Investment Activities, of the Cash Flow Statement.

  4. Capital Structure ratios

     These ratios show the degree of financing of the company with foreign capital. The Ratios used by the company are the Capital Leverage Ratio and the Debt Ratio.

     The Capital Leverage Ratio is calculated if divided Total Debt by the sum of total Equity and Total Debt.

     The Debt Ratio is calculated by dividing Total Debt by the amount of Total Equity.

  5. Efficiency ratios

In general, the return on Equity shows the profit that corresponds to the investment of a company's shareholders. It belongs to the group of profitability indicators and is also generally used for the purpose of comparing similar companies and evaluating the management of a company.

The Return on Equity Ratio is calculated by dividing the net income, ie "Profit after Tax", by the amount of Total Equity.

The Efficiency ratio is calculated by dividing the net income, ie "Profit after Tax", by the total Assets.

31/12/2025 31/12/2024

1. EBITDA Margin

   EBITDA

   Sales

   14,7% 16,6%

2. EBIT Margin

   EBIT

   Sales

   12,8% 14,5%

3. Free cash flow Operating activities + Investment activities 10.145.963 8.029.898

4a. Debt to capital

Total Debt

Total Debt & Total Equity

9,6% 3,3%

4b. Debt to Equity

Total Debt Total Equity

10,7% 3,4%

5a. ROA

Profit after Tax Total Assets

15,5% 19,4%

5b. ROΕ

Profit after Tax Total Equity

23,0% 27,1%

In the ice cream segment, in the domestic market, our sales show an increase of +8,0% in value. The prevailing inflationary environment has primarily affected the traditional sales channel, leading consumers to shift towards supermarkets and private label products. In response, our growth strategy focuses on expanding our sales network and promoting our Greek Frozen Yogurt range of products, particularly in tourist areas.

In the domestic yogurt market, our sales recorded a positive change of +9,8%, exceeding €83m. The overall market has entered a growth phase, showing an increase of

+10,3% in value and +7,1% in volume [Circana data (ex.

IRI), Jan.-Dec. 2025]. Consumer preference for private label yogurts continues, primarily driven by the significant price gap compared to branded products. As a result, KriKri's branded yogurt market share stood at 13,7%, down from 14,9% in 2024, while the Company maintained its 2nd place in the market [Circana data (ex- IRI), value terms, Jan-Dec 2025].

Yogurt export sales continued their strong growth (+45,7% in value). The growing shift among European consumers toward authentic Greek yogurt continues to strengthen, driving accelerated growth across key international markets. Reflecting that trend, our yogurt sales increased by +63% in the UK and +25% in Italy.

We have developed and we are implementing investment projects to increase production capacity, as well as tech-

nological upgrading, of both yoghurt and ice cream factories. In the Financial Year 2025, total CAPEX exceeded

€26m.

For the Financial Year 2026, CAPEX is expected to be be-

tween €26m to €30m.

Due to the nature of its operations, the Company is exposed to various financial risks such as, market risk (fluctuations of exchange rates, interest rates and of production costs), credit risk and liquidity risk. The Company's overall risk management program focuses on financial market unpredictability and aims to minimize the potential negative impact on the Company's financial performance.

Risk management is carried out by the Company's main financial department, which operates under certain rules approved by the Board. The Board of Directors provides instructions and guidelines on general risk management and special instructions on managing specific risks such as currency risk, interest rate risk and credit risk.

Risk of fluctuation of raw material prices

The Company is exposed to risk of loss of income in case of sudden changes in prices of raw materials. This is a result of the inability to roll these costs to sale prices in a timely manner.

Foreign exchange risk

The Company's operations are mainly conducted within the Euro zone. Company exposure to exchange rate (FX) risk derives from existing or expected cash flows in foreign currency, and it is considered very limited.

Interest rate fluctuation risk

The Company's assets do not include significant items that are interest-bearing, thus operating income and inflows are essentially independent of changes in market interest rates.

The loans of the Company are related to either variable rates or fixed rates. The company does not use financial derivatives. The interest rate fluctuation risk relates primarily to long-term loans. Loans with variable interest rates expose the Company to cash flow risk. Loans issued at fixed rates expose the Company to risk of changes in fair value.

A policy of retaining loans with variable interest rate is beneficial in cases of declining interest rates. On the other hand a liquidity risk appears when the interest rates rise.

From the total loans of the Company on 31.12.2025, the amount of € 4.200.000 is linked to a fixed interest rate and the amount of € 11.573.475 is linked to a floating rate.

The financing solutions that banks offer are systematically reviewed, in order to minimize financing cost.

The Company has established and applies credit control procedures in order to minimize credit risk. Generally, sales are distributed to a large number of customers, resulting in an efficient dispersion of the commercial risk. Exceptions to the above dispersion of risk are the sales to a domestic super market chain and to an overseas customer, where sales to each of those two (2) customers exceed 10% of total sales. Those sales concern both major segments (Yoghurt and Ice-cream).

Wholesale sales are made to customers with appropriate credit history. The credit control department defines credit limit per customer that is continuously monitored and reviewed. Also, in some cases our receivables are secured with collaterals. For example from the company domestic customers-distributors, the Company receives personal guarantees amounting the double of two months turnover, hence consistently applying its credit policy. Finally, receivables of specific supermarket chains are credit insured with a contract covering credit losses, occurring from insolvency, up to 90%.

Receivables from overseas customers are credit insured with a contract covering credit losses, occurring from insolvency, up to 95%. Credit limits per customer are established by the insurance company. Therefore, the credit risk exposure is limited to 5% of the insured credit limit, plus any excess.

The Company's Management emphasizes on reducing working capital needs. It promotes the reduction of credit limits and of the credit period to its customers, to increase operating cash flows.

The Company manages liquidity risk by maintaining adequate cash reserves and credit lines from banks. At present, available overdraft can adequately cover any immediate cash requirement.

Suppliers - stock

The Company has no significant dependence on certain suppliers. In 2025 there was only one supplier of raw materials, purchases of whom exceeded 10% of total company purchases.

The company's management promotes overall stock management, in a way that allows meeting the demand, without excessive liquidity reservation.

Staff

The Company's management is based on a team of experienced and qualified personnel, who have full knowledge of their subject and industry market conditions. This contributes significantly to the proper functioning of the company's processes and the further development of its activities.

The Company's executives are working harmoniously with each other and with the company's management. Potential disruption of this relationship may affect, temporarily, its proper functioning. However, the existing staffing infrastructure company enabling the direct replenishment executives, with no significant impact on the progress of its work.

Product contamination

Risk of product contamination may result in product recall and, consequently, negative publicity that damages brand reputation. Product recall, depending on the size, can have a significant negative economic impact. The same can happen from the negative publicity that usually results from such an event, whether it is due to the fault of the Company or not.

The Company's Management estimates that the quality assurance and quality control system it applies drastically reduces this risk.

Changes in the nutritional behavior of consumers

Possible changes in the nutritional behavior of consumers can lead to the replacement of the consumption of the company's products with substitutes or competing products. The above can lead to a decrease in sales and a burden on the Company's results.

The Company tries to closely monitor market trends, in order to adapt as quickly as possible to the new conditions.

Extraordinary events

The possibility of an event occurring, which, to a large extent, is beyond the control of the Company, could potentially affect the normal conduct of its business activities. Indicatively, the following cases can be mentioned:

• Natural Disaster,

• Accidents at work, which may be related to employees of the Company, suppliers, or even third parties.

• Problems / Insufficiency in the operation of information systems,

• Significant mechanical damage, which may result in delay or even cessation of production,

• Fraud,

• Termination of contracts with customers / suppliers.

In such a case, any disruption in the conduct of the Company's business activities could have a negative effect on sales, costs and, in general, on its financial results.

The Management tries to take all the necessary actions, in order to limit, both the chances of the occurrence of the specific risk, and, in case it happens, its effects on the smooth conduct of its business activities.

The risks related to the macroeconomic outlook for 2026 are mainly associated with the intensification of geopolitical risks following the recent outbreak of conflict in the Middle East. More specifically, those risks concern the potential impacts on international energy markets and supply chains. Consequently, these may lead to possible increases in cost factors, the emergence of inflationary pressures, and a slowdown in economic growth.

1. Strategies - Future Performance Estimations STRATEGIES

   In the ice cream sector, our strategy is preserve high operating results. At the same time, we aim to increase the number of the distribution points, mainly focusing on the tourist areas. Particular emphasis will be placed on boosting exports, as there are great opportunities to grow our sales overseas. In this effort, the tip of our spear is the Greek Frozen Yogurt ice cream series that we have developed and combines the pleasure offered by ice cream with the values of healthy nutrition offered by yogurt.

   In the yogurt sector, we utilize our modern production facilities, with high production capacity and competitive processing costs, aiming to increase sales. Our focus is on European markets, where authentic Greek yogurt is experiencing significant growth. At the same time, we are strengthening our presence in the domestic market by adapting to consumer needs.

   DIVIDEND POLICY

   Krikri's dividend Policy promotes the distribution of an increased dividend each year, as long as the profitability figures allow.

   For the Financial Year 2024, the Annual General Meeting of shareholders decided the distribution of gross dividend of €0,40 per share.

   For the Financial Year 2025, the Board of Directors decided to propose to the Annual General Meeting of shareholders the distribution of gross dividend of €0,45 per share. The distribution is subject to the approval of the Annual General Meeting of the shareholders.

   FUTURE PERFORMANCE ESTIMATES

   KriKri's Management is optimistic about the Company's financial results in 2026, despite the current demanding economic and business environment.

   For the Financial Year 2026 the Company's sales are expected to continue their upward trend. Based on the Management's estimate, sales are expected to reach €390m showing a double-digit growth compared to 2025.

   The EBIT margin for the Financial Year 2026 is expected in the region of €60m, provided that current geopolitical developments will not significantly affect our cost base.

2. Related party transactions

   The significant transactions between the Company and its related parties, as defined in IAS 24, are described below.

   Transactions with related parties

   The Company maintains an obligation to related parties (its major shareholders) arising from the coverage of a bond loan of €4.200.000. This loan was issued on 03.04.2023, it is unsecured and according to market terms. Its expiration is determined on 03.04.2026 and its balance on 31.12.2025 amounts to €4.200.000.

   Related party transactions are analyzed a follows:
   	31/12/2025		31/12/2024
   Payment of interest on a bond loan*	144.783		145.180

   Outstanding receivables from and payables to related parties are analyzed a follows:

   31/12/2025 31/12/2024

   Payables to related parties* 4.200.000 4.200.000

   Directors' compensation and other transactions with key management personnel are analyzed a follows:

   COMPENSATION OF DIRECTORS	31/12/2025		31/12/2024
   Remuneration of the members of the Board of Directors	653.049		576.429
   Salaries of the members of the Board of Directors	1.800		1.800
   Total	654.849		578.229

   OTHER TRANSACTIONS WITH THE MEMBERS OF THE B.O.D. AND KEY MANAGEMENT PERSONNEL	31/12/2025		31/12/2024
   Transactions with the members of the B.O.D and key management personnel	85.167		85.400
   Liabilities to the members of the B.O.D and key management personnel*	2.100.000		2.100.000

   * Bond loan covered by major shareholders

3. Branches

   The Company operates a branch in Aspropyrgos, Attica. The branch operates as a logistics hub to serve the market of southern Greece.

4. Research & Development

   The Company has a separate department dealing with product research and development (new development and improvement / development of existing ones) and new production technologies. During the current financial year, R&D expenses amounted €403.891.

5. Own shares

   As at 31.12.2024, the Company held 80.904 own shares, with an acquisition value of € 898.702. According to the as of 03.07.2024 Share Buyback Program, as amended on 01.07.2025, during the Financial Year 2025, the Company acquired 62.334 treasury shares, with an acquisition value of € 1.092.827.

   Pursuant to the 27.02.2025 Program of free distribution of shares (stock awards), and following the decision of the Board of Directors dated 11.03.2025, between 11.03.2025 and 27.06.2025 43.969 common shares were distributed to 97 beneficiaries.

   Therefore, as at 31.12.2025, the Company holds 99.269 own shares, with an acquisition value of € 1.560.696. Those shares represent 0.3% of the total number of the Company's shares.

6. Post balance sheet events

   Distribution of own shares

   Pursuant to the 27.02.2025 Program of free distribution of shares (stock awards), the Board of Directors, by its decision on 20.01.2026, approved the distribution of 37.228 common shares to 97 beneficiaries, based on the annual performance review for 2025. Upon completion of this distribution, the Company's own shares will amount to 62.041.

   As the distribution date has not yet commenced as of the date of approval of the financial statements, the Company holds 99.269 treasury shares with a total acquisition cost of €1.560.696.

   Middle East Conflict

   The recent outbreak of conflict in the Middle East is not expected to have a significant direct impact on the Com-pany's operations. Sales in this specific region account for

   less than 1% of total turnover, while the Company has no sourcing exposure from those markets.

   Nevertheless, indirectly, any prolonged disruption in international energy markets and supply chains could have a material impact. Such developments may lead to increased cost pressures and a potential decline in consumer demand for our products, driven by inflationary pressures and a slowdown in economic growth across the markets in which we operate.

   Independent Auditor's Limited Assurance Report on the Sustainability Report of "KRI - KRI MILK INDUSTRY S.A." INDEPENDENT AUDITOR'S LIMITED ASSURANCE REPORT To the Shareholders of "KRI - KRI MILK INDUSTRY S.A."

   We have performed a limited assurance engagement regarding the Sustainability Report of "KRI - KRI MILK INDUSTRY S.A." (hereinafter the "Company"), which is included in the section "SUSTAINABILITY REPORT 2025" of the Annual Management Report (the "Sustainability Report"), for the period from 01/01/2025 to 31/12/2025.

   Limited Assurance Conclusion

   Based on the procedures we have performed, as described in the section "Scope of Work Performed" below, and the

   evidence we have obtained, nothing has come to our attention that causes us to believe that:

   • the Sustainability Report was not prepared, in all material respects, in accordance with Article 151 of Law 4548/2018, as amended under Law 5164/2024 and currently in force, which transposes Article 19(a) of EU Directive 2013/34 into the Greek legislation;

   • the Sustainability Report does not comply with the European Sustainability Reporting Standards (hereinafter

     "ESRS"), in accordance with Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 and Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022;

   • the process followed by the Company for identifying and assessing material risks and opportunities (the "Pro-

     cess"), as presented in note "IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities" of the Sustainability Report, does not comply with the "Requirement IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities" of ESRS 2 "General Disclosures";

   • the disclosures included in the section "EU TAXONOMY" of the Sustainability Report do not comply with Article

     8 of Regulation (EU) 2020/852.

     Basis for the Conclusion

     Our limited assurance engagement was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (hereinafter "ISAE 3000").

     In the context of a limited assurance engagement, the procedures performed differ in nature and timing and are less extensive than those in a reasonable assurance engagement. Consequently, the level of assurance obtained from such an engagement is significantly lower than the level of assurance that would have been obtained had a reasonable assurance engagement been performed.

     Our responsibilities are further described in the section "Auditor's Responsibilities".

     Professional Ethics and Quality Management

     We are independent of the Company throughout the duration of this engagement and have fulfilled our ethical responsibilities in accordance with the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (IESBA Code), as well as with the ethical and independence requirements of Law 4449/2017 and Regulation (EU) No. 537/2014.

     Our audit firm applies International Standard on Quality Management 1 (ISQM 1), Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and as such, maintains a comprehensive system of quality management that includes documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements.

     We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

     Responsibilities of the Company's Management for the Sustainability Report

     The Company's Management is responsible for designing and implementing an appropriate process for determining the required disclosures included in the Sustainability Report in accordance with the ESRS, as well as for disclosing the Process in note "IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities" within the Sustainability Report.

     More specifically, this responsibility includes:

   • Understanding the context in which the Company's activities and business relationships take place, as well as

     understanding the affected stakeholders;

   • Identifying actual and potential impacts (both negative and positive) related to sustainability matters, as well as the risks and opportunities that affect, or are reasonably expected to affect, the Company's financial position, financial performance, cash flows, access to finance, or cost of capital over the short, medium, or long term;

   • Assessing the materiality of identified sustainability-related impacts, risks, and opportunities through the selection

     and application of appropriate thresholds; and

   • Developing assumptions that are reasonable under the prevailing circumstances.

     The Company's Management is also responsible for the preparation of the Sustainability Report, in accordance with Article 151 of Law 4548/2018, as amended by Law 5164/2024 and in force, by which Article 19a of Directive EU 2013/34 was transposed into Greek legislation.

     In this context, the Company's Management is responsible for:

   • Ensuring the Sustainability Report's compliance with the ESRS.

   • Preparing the disclosures included in the "EU TAXONOMY" section of the Sustainability Report in accordance

     with the provisions of Article 8 of Regulation (EU) 2020/852.

   • Designing and implementing appropriate internal controls deemed necessary by management to ensure that the Sustainability Report is free from material misstatement, due to fraud or error.

   • Selecting and applying appropriate reporting methods, including assumptions and estimates related to individual

     disclosures in the Sustainability Report, which have been assessed as reasonable under the circumstances.

     The Audit Committee of the Company is responsible for overseeing the process of preparing the Company's Sustainability

     Report.

     Inherent Limitations in the Preparation of the Sustainability Report

     As stated in note "BP-2 - Disclosures in relation to specific circumstances" of the Sustainability Report, in certain cases the preparation of metrics and quantitative data requires the use of estimates and assumptions, particularly when primary data are not fully available or when the use of data from the value chain is required. The estimates are based on recognized methodological frameworks and data available during the reporting period. The Company discloses metrics that incorporate value chain information, which include data sources obtained directly from customers or suppliers, as well as estimates derived from third-party data providers.

     When disclosing forward-looking information in accordance with the ESRS, the Company's Management is required to prepare such information based on disclosed assumptions regarding events that may occur in the future and potential future actions of the Company. The actual outcome of these actions may differ, as expected events often do not occur as anticipated.

     As noted in "ESRS 2 - IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities

     related to climate" within section "E1 CLIMATE CHANGE" of the Sustainability Report, the information included in the

     related disclosures is based, among others, on climate-related scenarios, which are inherently uncertain with regard to the likelihood, timing, or impact of potential future physical and transitional climate-related effects.

     Our work covered the matters specified in the section 'Scope of Work Performed' for the purpose of obtaining limited assurance, based on the procedures included in the Program referred in that section. Our work does not constitute an audit or a review of historical financial information in accordance with applicable International Standards on Auditing or International Standards on Review Engagements, and for this reason, we do not express any assurance other than that stated in the section "Scope of Work Performed".

     Auditor's Responsibilities

     This limited assurance report has been prepared in accordance with the provisions of Article 154C of Law 4548/2018 and Article 32A of Law 4449/2017.

     Our responsibility is to design and perform the limited assurance engagement in order to obtain limited assurance as to whether the Sustainability Report is free from material misstatement, due to fraud or error, and to issue a limited assurance report that includes our conclusion. A misstatement may arise from fraud or error and is considered material if, individually or in the aggregate, it could reasonably be expected to influence the economic decisions of users taken on the basis of the Sustainability Report as a whole.

     In conducting a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism throughout the engagement.

     Our responsibilities regarding the Sustainability Report, in relation to the Process, include:

   • Performing risk assessment procedures, including obtaining an understanding of the relevant internal controls, to identify risks as to whether the Process followed by the Company for determining the information reported in the Sustainability Report does not meet the applicable ESRS requirements, but not for the purpose of expressing a conclusion on the effectiveness of the internal controls over the Process; and

   • Designing and performing procedures to assess whether the Process for identifying the information disclosed in the Sustainability Report is consistent with the description of the Process as disclosed in note "IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities" of the aforementioned Report.

     Furthermore, we are responsible for:

   • Performing risk assessment procedures, including understanding the relevant internal controls, to identify those disclosures where material misstatement is likely to arise, either due to fraud or error, but not for the purpose of expressing a conclusion on the effectiveness of the Company's internal controls.

   • Designing and performing procedures relating to those disclosures in the Sustainability Report where material misstatement is likely to arise. The risk of not detecting material misstatement resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the circumvention of internal controls.

   Scope of Work Performed

   Our work includes performing procedures and obtaining audit evidence for the purpose of expressing a limited assurance conclusion and covers only the procedures outlined in the limited assurance program issued by decision 262/22.01.2025 of the Hellenic Accounting and Auditing Standards Oversight Board, as designed for the purpose of issuing a limited assurance report on the Company's Sustainability Report.

   Our procedures were designed to obtain a limited level of assurance on which we could base our conclusion, and do not provide all the evidence that would be required to provide a reasonable level of assurance.

   
   
   

   FORVIS MAZARS Certified Public Accountants Business Advisors S.A

   14, Αmfitheas Ave. -175 64 Palaio Faliro SOEL Reg. No: 154

   Palaio Faliro, 21 April 2026 The Certified Public Accountant Stavros Kourounis SOEL Reg. No: 48951
7. Sustainability Statement

   This 2025 Sustainability Statement (hereinafter the " Statement ") of KRI-KRI DAIRY INDUSTRY S.A. (hereinafter "Kri Kri" or the "Company") contains information about the Company's ESG-related activities in accordance with the Corporate Sustainability Reporting Directive (CSRD), as transposed into Greek law under Law 5164/2024, and follows the European Sustainability Reporting Standards (ESRS) issued by the European Financial Reporting Advisory Group (EFRAG). In addition, the Statement complies with the disclosure requirements related to Article 8 of the EU Taxonomy and the related delegated acts.

   The Statement covers the reporting period from 1 January 2025 to 31 December 2025.

   ESRS 2 - GENERAL DISCLOSURES

   IRO-2 - ESRS disclosure requirements covered by the business sustainability statement

   Kri Kri has set clear boundaries for sustainability-related impacts, risks, and opportunities (IROs). This process ensures that our Company's Sustainability Statement is substantial, material and aligned with the principle of Double Materiality.

   For the collection and assessment of the information required for disclosure in the Sustainability Statement, we conducted a Double Materiality survey addressing all the Company's stakeholders who possess in-depth knowledge of all our material issues. The survey was based on a targeted questionnaire and interviews, which covered specific ESRS data, as well as objectives and actions tailored to the Company's business context.

   An evaluation process followed, where we had analyzed the collected through the questionnaires and interviews data and determined which elements of each important topic are necessary to be disclosed.

   During the Financial Year 2025, Kri Kri carried out a reassessment of the Double Materiality Assessment process, taking into account the Company's current status, its activities, as well as developments in the regulatory and business environment in which it operates.

   That reassessment confirmed the results of the previous analysis, as no material changes were identified regarding the determined material topics, nor with respect to the related impacts, risks and opportunities.

   This finding reinforces the consistency and reliability of the Company's approach to managing sustainability matters,

   confirming that the existing material topics remain representative of the impacts and challenges faced by Kri Kri.

   The following table lists all the ESRS disclosure requirements, based on the ESRS 2 standard and the six topical standards, which are material for Kri Kri.

   Pollution (E2), Biodiversity and Ecosystems (E4), Value Chain Workers (S2), and Affected Communities (S3) were considered as non-important issues during the Double Materiality Assessment which was carried out during 2025.

   We will continue to monitor and assess our impacts, risks and opportunities associated with these issues and their significance will be continuously reassessed each year as part of our annual Double Materiality Assessment process.

   NOTIFICATIONS	Page
   ESRS 2 - GENERAL DISCLOSURES	16
   IRO-2 - Disclosure requirements in ESRS covered by the undertaking's sustainability statement	16
   BP-1 - General basis for preparation of the Sustainability statement	19
   BP-2 - Disclosures in relation to specific circumstances	19
   SBM-1 - Strategy, Business Model and Value Chain	21
   GOV -1 - The role of administrative, management and supervisory bodies	24
   GOV -2 - Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	24
   GOV -3 - Integration of sustainability-related performance in incentive schemes	25
   SBM -3 - Material impacts, risks and opportunities and their interaction with strategy and business model	26
   IRO - 1 - Description of the processes to identify and assess material impacts, risks and opportunities	26
   GOV - 4 - Statement on due diligence	37
   GOV - 5 - Risk management and internal controls over sustainability reporting Strategy	37
   SBM - 2 - Interests and views of stakeholders	38
   EU TAXONOMY	41
   ENVIRONMENT	46
   E1 CLIMATE CHANGE	46
   ESRS 2 - GOV - 3 - Integration of sustainability-related performance in incentive schemes	46
   E1 - 1 - Transition plan for climate change mitigation	46

   NOTIFICATIONS	Page
   ESRS 2 - SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	47
   ESRS 2 - IRO-1 - Description of the processes to identify and assess material climate-related impacts, risks and opportunities	49
   E1 - 2 - Policies related to climate change mitigation and adaptation	51
   E1 - 3 - Actions and resources in relation to climate change policies	52
   E1 - 4 - Targets related to climate change mitigation and adaptation	53
   E1 - 5 - Energy consumption and mix	53
   E1 - 6 - Gross emissions of scopes 1 and 2	54
   E1-7 - GHG removals and GHG mitigation projects financed through carbon credits	54
   E1 - 8 - Internal carbon pricing	54
   E1 - 9 - Anticipated financial effects from material physical and transition risks and potential climate-related opportunities	55
   E3 WATER AND MARINE RESOURCES	55
   ESRS 2 - IRO-1 - Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities	55
   E3 - 1 - Policies related to water	56
   E3 - 2 - Actions and resources related to water	56
   E3 - 3 - Targets related to water	56
   E3 - 4 - Water consumption	57
   E3 - 5 - Anticipated financial effects from water and marine resources-related risks and opportunities	57
   E5 RESOURCE USE AND CIRCULAR ECONOMY	57
   ESRS 2 - IRO - 1 Description of the processes to identify and assess material resource use and circular economy - related impacts, risks and opportunities	57
   E5 - 1 - Policies related to resource use and circular economy	58
   E5 - 2 - Actions and resources related to resource use and the circular economy	58
   E5 - 3 - Targets related to resource use and circular economy	59
   E5 - 4 - Resource inflows	59
   E5 - 5 - Resource outflows	60
   E5 - 6 - Anticipated financial effects from resource use and circular economy-related risks and opportunities	61
   SOCIAL	61
   S1 OWN WORKFORCE	61
   ESRS 2 - SBM-3 - Material impacts, risks and opportunities and their interaction with the strategy and business model	61
   S1 - 1 - Policies related to own workforce	62
   S1 - 2 - Processes for engaging with own workers and workers' representatives about impact	63
   S1 - 3 - Processes to remediate negative impacts and channels for own workers to raise concerns	63
   S1 - 4 - Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	64
   S1 - 5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	66
   S1 - 6 - Characteristics of the undertaking's employees	66
   S1 - 7 - Characteristics of non-employees in the undertaking's own workforce	67
   S1 - 8 - Collective bargaining coverage and social dialogue	67
   S1 - 9 - Diversity metrics	67
   S1 - 10 - Adequate wages	67

   NOTIFICATIONS	Page
   S1 - 11 - Social protection	68
   S1 - 12- Persons with disabilities	68
   S1 - 13 - Training and skills development metrics	68
   S1 - 14 - Health and Safety metrics	68
   S1 - 15 - Work-life balance metrics	69
   S1 - 16 - Compensation metrics (pay gap and total compensation)	69
   S1 - 17 - Incidents, complaints and severe human rights impacts	69
   S4 CONSUMERS AND END USERS	70
   ESRS 2 - SBM - 3 - Material impacts, risks and opportunities and their interaction with strategy and business model	70
   S4 - 1 - Policies related to consumers and end-users	70
   S4 - 2 - Processes for engaging with consumers and end-users about impacts	71
   S4 - 3 - Processes to remediate negative impacts and channels for consumers and end-users to raise concerns	71
   S4 - 4 - Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions	71
   S4 - 5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	72
   GOVERNANCE	72
   G1 BUSINESS CONDUCT	72
   ESRS 2 - SBM - 3 - Material impacts, risks and opportunities and their interaction with strategy and business model	73
   G1 - 1 - Corporate culture and business conduct policies and corporate culture	73
   G1 - 2 - Management of relationships with suppliers	74
   G1 - 3 - Prevention and detection of corruption and bribery	75
   G1 - 4 - Confirmed incidents of corruption or bribery	76
   G1 - 5 - Political influence and lobbying activities	76
   G1 - 6 - Payment Practices	76

   BP-1 - General basis for preparation of sustainability statements

   Kri Kri, one of the most dynamic and fast-growing Greek dairy companies, with a strong presence in both the domestic and international markets, has integrated sustainability into the core of its business strategy. The Com-pany's approach is fully aligned with the requirements of the European Sustainability Reporting Standards (ESRS) and the applicable corporate reporting regulatory framework.

   In this context, this Sustainability Statement includes disclosures regarding material impacts, risks and opportunities related to Environmental, Social and Governance (ESG) matters. These disclosures are supported by both quantitative and qualitative data, covering, among others, issues related to climate change, the use of natural resources and the responsible management of the supply chain.

   The Sustainability Statement covers the reporting period from 1 January 2025 to 31 December 2025 and reflects the Company's commitment to transparency and the continuous improvement of its sustainability performance.

   Kri Kri's Sustainability Statement has been prepared on an individual (non-consolidated) basis, as the Company is not a parent company of a group with subsidiaries that fall within the scope of the reporting standards.

   Scope of Reference

   1. Benchmark Level: The Statement covers all the Company's activities and operations, including the Company's ice cream and yogurt production units, distribution networks and biogas plant.

   2. Consistent with Financial Reporting: The reporting scope is aligned with the financial statements, ensuring uniformity and transparency in reporting.

The inclusion of the value chain is based on available data and, where such data are not available, on estimates.

Upstream Activities: The Statement includes material aspects related to the sourcing of fresh milk from local farmers, the procurement of raw and auxiliary materials, packaging materials, as well as other key partners. Kri Kri assesses and discloses, where considered material, the climate impacts associated with its supply chain, responsible sourcing practices, and issues of business ethics and compliance.

The Company collaborates with local milk farmers, ensuring fresh and high-quality milk, as well as with a wide range of other suppliers providing raw and auxiliary materials and services.

Downstream Activities: The Statement covers issues related to the distribution and transportation of products, the use and management of packaging, product quality and safety, as well as relationships with consumers and

end users. It includes disclosures on the management of environmental impacts related to packaging and distribution, as well as information on quality assurance systems and mechanisms for handling complaints and communicating with consumers.

1. Third-Party Data: In cases where data from vendors or partners is not available, estimates based on industry best practices are used.

2. Limitations of Methodology: Any limitations in the methodology are clearly stated, providing explanations of their impact on the Statement.

No classified or sensitive information corresponding to results of intellectual property, know-how or innovation has been included in the Sustainability Statement. In addition, we did not use the option to skip the disclosure of upcoming developments or issues during the negotiation.

Kri Kri applies the Double Materiality principle, assessing both the impacts of its activities on the environment and society, as well as the sustainability-related risks and opportunities that may affect its financial performance, financial position and future prospects.

Kri Kri carried out the Double Materiality Assessment (DMA) using the latest and available data. In the coming years, we expect an improvement in data quality, coverage, and availability, due to increased regulatory requirements. Therefore, we plan to broaden the scope of the analysis to cover more activities, including upstream and downstream activities.

Performance metrics that measure the Company's impact, risks, and opportunities have been compiled based on the data available at the time of the Statement. We will continue to further develop performance metrics to ensure that they measure and represent impacts, risks, and opportunities in the best possible way, and to improve the alignment of metrics with the comprehensive requirements of the ESRS.

In some cases, the preparation of measurements and quantitative data requires the use of estimates and assumptions.

The Company discloses metrics that incorporate value chain information, which include data sources directly from customers or suppliers, and data estimates from third-party data providers.

The preparation of the Company's quantitative disclosures is, in certain cases, based on the use of estimates and assumptions, particularly where primary data are not fully available or where data from the value chain are required. These estimates are based on recognized methodological frameworks and data available during the reporting period.

The Company assesses the metrics and quantitative data included in this Statement in terms of their level of uncertainty, taking into account the availability, quality and source of the data, as well as the methodologies applied.

Certain metrics exhibit a higher level of uncertainty, mainly due to their reliance on value chain data and third-party data providers. In particular:

Scope 3 greenhouse gas emissions are considered to have a high level of uncertainty, as they are based on estimates, proxy data and emission factors derived from third-party sources.

Data relating to the upstream and downstream value chain may also present high uncertainty, due to limited availability of primary data and the need to rely on estimates.

Certain metrics are based on more reliable primary data but still include estimation elements or standardized factors. In particular:

Scope 1 and Scope 2 emissions are considered to have a medium level of uncertainty, as they are based on actual energy consumption data, which are converted into emissions using emission factors that may be subject to revision.

The following categories of metrics are considered to have a low level of uncertainty, as they are based on primary, measurable and verifiable data:

• Energy consumption

• Recycling and waste management data

• Water consumption and usage

  These metrics are based on data collected directly from the Company's operations, with limited use of estimates, and are therefore considered highly reliable.

  Sources of uncertainty and methodological assumptions

  The main sources of uncertainty in the Company's disclo-

  sures include:

• the use of estimates for value chain-related data,

• reliance on third-party data providers,

• the evolution of calculation methodologies,

• changes in emission factors and available scientific data.

In our analysis and setting climate targets, we used estimates based on recognized frameworks that were available at the time. As current methods and data evolve, our data sources and our elements may become outdated, and updates to methodologies and hypotheses may lead to different conclusions. In this Sustainability Statement, we used the calculation and greenhouse gas (GHG) emission factors which were published by the Ministry of Environment & Energy in 2025 and were related to 2024, and are expected to be amended as soon as the new data becomes available and will be included in the calculations.

We expect improvements in data quality, coverage, and availability in the coming years, due to increased reporting and disclosure obligations. New guidelines, industry standards and scientific research are expected and Kri Kri reserves the right to periodically review and update the objectives, methodologies and approaches and to reformulate the baselines as required.

1. Climate Change: Projections of the effects of climate change on milk production involve uncertainties due to climate variability. The Company recognizes those uncertainties and adjusts its strategies accordingly.

2. Raw & Auxiliary Materials Markets: Fluctuations in the prices and availability of raw materials and auxiliaries may affect sustainability forecasts. The Company closely monitors the markets and adjusts its estimates when the Company considers that adjustment necessary.

   Time Horizons

   We assess the Company's significant impacts, risks and opportunities in the short, medium and long term. The short-term refers to the reference period of the financial statements. Due to the progressive nature of sustainability-related issues, these issues require more forward-look-ing reporting, while financial information is limited to the annual reporting period. For future information on the Company's material impacts, risks and opportunities covered in this Sustainability Statement, the following definitions of time horizons apply and are fully aligned with the general guiding principles of ESRS 1:

   • Up to 1 year is defined as "short-term"

   • Between 1 and 5 years is defined as 'medium term'

   • More than 5 years is defined as "long-term"

Improvements in Data Collection: The Company has adopted new technological tools to more accurately monitor emissions and energy consumption, thus improving the accuracy of its reports.

Data Review: During the reporting period, Kri Kri declares that no material errors have been identified in previously

published sustainability information related to environmental, social or governance (ESG) issues, as well as the related quantitative or qualitative disclosures.

Following a relevant review of the available data and procedures, a need to correct the greenhouse gas emissions of scope 1 and 2, as well as biogenic emissions, for the year 2024 has arisen and it is reported that the updated 2024 data have been verified in accordance with the EN ISO 14064-3:2019 standard. The above data are described in disclosure requirement E1-6.

Certain information, which relates to disclosure requirements included in the Company's financial statements, is incorporated by reference. This information is included in the mandatory audit, and therefore is part of the Sustainability Statement.

maintaining a strong commitment to reducing environmental impacts, ensuring the efficient use of natural resources, enhancing energy efficiency and promoting responsible sourcing of raw materials. The integration of sustainability is reflected in strategic priorities such as reducing greenhouse gas emissions, managing water resources, optimizing packaging, ensuring food quality and safety, and strengthening corporate governance and business ethics.

Kri Kri operates in the dairy processing sector, with its main product categories being yogurt and ice cream, which constitute the primary drivers of value creation and revenue. Its products are distributed both in the domestic market and internationally, with differentiated characteristics in terms of composition, packaging and distribution channels.

During the reporting period, no material changes oc-

curred in the Company's main product categories. Any

Disclosure

Subject Citation

new product launches or withdrawals of existing prod-

requirements

GOV-1

The role of administrative, supervisory and management bodies

Annual Statementof the Board of Directors

ucts are part of the portfolio renewal strategy and adaptation to consumer trends, without materially altering the

Company's core business activity.

Statements

SBM-1 Financial information Financial

In preparing this Statement, Kri Kri has adopted, primarily, the requirements of the European Sustainability Reporting Standards (ESRS), in accordance with Directive (EU) 2022/2464 on Corporate Sustainability Reporting (CSRD), and Law 5164/2024 incorporating the above Directive.

In addition, information stemming from other relevant European legislation or standards is incorporated, either out of obligation or in the context of enhancing transparency and accountability. In particular, disclosures required by the Non-Financial Reporting Directive (NFRD) 2014/95, as well as Regulation (EU) 2020/852 establishing the EU Taxonomy Framework, where applicable, are included.

The Company had made use of the phased-in approach, as described in ESRS 2, Appendix C: List of phased-in disclosure requirements. During the current reporting period, the Company has further advanced the integration of the relevant disclosures, covering additional data points in accordance with the requirements of the European Sustainability Reporting Standards (ESRS).

Kri Kri integrates sustainability as a core pillar of its business strategy, recognizing that environmental, social and governance (ESG) factors directly affect both its longterm growth and the resilience of its business model.

The Company's strategy focuses on the production and

distribution of high-quality and safe dairy products, while

The product development strategy incorporates criteria related to quality, food safety, innovation and, where applicable, environmental improvement (e.g. packaging optimization).

Kri Kri discloses an analysis of its total revenue, as presented in its annual financial statements, in order to provide an understanding of the distribution of its economic activity.

The turnover per functional sector is shown in the following table:

Turnover

Kri Kri operates in the Greek market and in more than 40 countries abroad. Its main customer groups include large retail chains (supermarkets), local importers and distributors, as well as smaller retail outlets.

The Company's market strategy is based on maintaining a strong presence in the domestic market while continuously strengthening its international operations. During the reporting period, no material changes were observed in the main geographic markets or key customer categories that would significantly affect the Company's business model.

Market diversification contributes to managing risks related to regulatory changes, macroeconomic conditions and evolving consumer preferences.

The Company does not offer any products or services that are prohibited in specific markets due to regulatory, environmental or social restrictions. All its products comply with applicable national and international food safety and trade regulations.

Compliance with the regulatory requirements of each market constitutes a key element of the Company's risk management strategy and ensures access to international markets.

The total number of employees of the Company in Greece as of 31.12.2025 was 752. The Company does not employ any personnel overseas.

Detailed financial information regarding the Company's operating areas for the year ended December 31, 2025 and December 31, 2024 is presented in the Financial Statements.

The Company's value chain includes all stages from the procurement of raw materials to the delivery of products to consumers.

Primary Activities

1. Inbound Logistics

   Kri Kri collects fresh raw milk on a daily basis from farmers in Northern Greece, ensuring the freshness and high quality of its primary raw material. The collaboration with local farmers is based on long-standing relationships of trust and stability, which enhance the quality, traceability and sustainability of the supply chain.

   At the same time, the Company works with reliable suppliers for the procurement of other raw materials and packaging materials, applying a selection and evaluation process that takes into account quality, environmental and energy management certifications, delivery reliability, and financial stability. Raw materials are transported under strict hygiene conditions and controlled temperature, ensuring compliance with food safety standards.

   Raw Milk supply agreements are accompanied by technical support to farmers, including animal husbandry advice, training, and financial support for infrastructure investments. Through this approach, Kri Kri contributes to strengthening the local economy while ensuring a stable and high-quality supply with a reduced environmental footprint.

2. Own Operations

   The production activities of Kri Kri are carried out in modern facilities in Serres, where ice cream and yogurt are produced under strict quality and food safety standards. The Company has implemented and is certified by the relevant authorities for a Quality Management System (ISO 9001:2015), a Food Safety Management System (ISO 22000:2018, BRC Issue 9, IFS Version 7), all based on HACCP principles (Hazard Analysis and Critical Control Points), covering all production lines, ensuring full hygiene, safety and quality of its products. At the same

   time, the BRC and FDF standards applied by the Company certify that milk is sourced from farms that do not use genetically modified feed for animal nutrition.

   In addition, reflecting its commitment to environmental protection, Kri Kri has developed, implemented and been certified for Environmental and Energy Management Systems in accordance with ISO 14001 and ISO 50001 standards.

   The Company's strength lies in its people. A tangible recognition of its human-centric philosophy is the development, implementation and certification of an Occupational Health and Safety Management System in accordance with ISO 45001, as well as its membership in the SEDEX organization, having obtained SMETA 4 Pillars certification, which demonstrates to its customers that the Company respects the principles of ethical and socially sustainable production.

   The Company systematically invests in research and development through a dedicated R&D department, which supports the improvement of existing products, the development of new ones, and the integration of sustainable production practices. At the same time, environmental initiatives are implemented to reduce CO₂ emissions, improve energy efficiency and reduce water consumption.

   A significant technological investment is the biogas production unit, through which by-products and waste from the production process are utilized to generate electricity and thermal energy, supporting the transition towards a circular operating mode

3. Outbound Logistics

   Product Distribution: Kri Kri has an extensive distribution network covering Greece and more than 40 countries, ensuring the timely and safe delivery of its products. The Company also has a branch in Attica, to serve its customers in southern Greece.

   Inventory Management: The Company applies modern inventory management methods, operating a Material Requirements Planning (MRP) process. This process aims to maintain a low level of inventory, while serving customer orders. It is based on forecasts of future demand for the calculation of the production schedule and supply needs.

   Cold Chain: Cold chain logistics is a critical component of Kri Kri value chain. Production, storage, transport and distribution are carried out under controlled temperature conditions, using refrigerated warehouses and transport vehicles. Monitoring is performed through telematics systems, temperature sensors and GPS, ensuring continuous control of quality and safety.

   Stages of Cold Chain Logistics

   Production: The products are manufactured under controlled conditions.

   Storage: Use of special cold storage to keep products at specific temperatures

   Transportation: Use of trucks, ships, airplanes and other means of transport with refrigeration systems.

   Distribution and Delivery: The products are distributed under continuous monitoring of temperature until reaching the final destination.

   Key Technologies and Methods

   Telematics: Use of temperature sensors and GPS systems to monitor the status of products in real time.

4. Marketing and Sales

   Product Promotion: Kri Kri implements appropriate marketing strategies for the promotion of its products, both in the domestic and international market. Indicatively, the following are implemented: Advertising campaigns for product promotion, Digital Marketing, Social Media Marketing (advertising and interaction through Facebook, Instagram, LinkedIn, TikTok, X).

   Partnerships with customers: In the domestic market, the Company has large supermarket chains and a number of small retail outlets in its clientele. Abroad, it cooperates with local importers or with large foreign supermarket chains, directly. For the development of sales, the Company implements a specific Market Development Strategy with the main axes of international expansion, the activation of new sales channels, the targeting of new demographic groups, etc.

   Kri Kri designs and implements appropriate marketing strategies for the promotion of its products, both in the domestic and international markets. Indicatively, these include advertising campaigns for product promotion, digital marketing, and social media marketing (advertising and engagement through Facebook, Instagram, LinkedIn)

   In the domestic market, the Company's customer base includes major supermarket chains as well as a large number of small retail outlets. Overseas, Kri Kri collaborates either with local importers or directly with large foreign supermarket chains.

5. Support Services (Service)

Kri Kri places particular emphasis on the prompt and effective service of its customers, addressing their requests and feedback with professionalism.

The Company seeks to maintain and strengthen longterm partnerships with large retail chains, international importers and local distributors, integrating sustainability criteria into its commercial practices. Its objective is to enhance transparency, traceability and compliance with international quality and social responsibility standards, responding to the increasing customer demand for a responsible supply chain.

Consumer Complaint Management: The Company receives consumer complaints via email, phone or social media. It makes sure to respond promptly and reliably.

Support Activities

1. Procurement

   Supplier Management: Kri Kri carefully selects its suppliers, ensuring the quality and sustainability of raw materials. During the "Supplier Selection and Evaluation" process, the following are taken into account: a) Quality, safety, environmental and energy certifications (ISO 9001, ISO 22000, ISO 14001, ISO 45001, ISO 50001,

   HACCP, BRC), b) Reliability and consistency in deliveries

   c) Financial stability of the supplier. The Company takes care to cultivate long-term cooperation relationships with its main suppliers, in order to ensure transparent communication and commitment to quality, to form a common vision of development and to improve the production processes of suppliers. Finally, quality control in procurement is particularly important. In this context, strict storage and transport standards are followed, quality controls of raw materials are carried out before production.

2. Technology Development

   Investments in Technology: Kri Kri invests in modern production and management technologies, improving the efficiency and quality of its products.

   Biogas Plant: The Company invested in a biogas production plant, utilizing the waste of the production process and contributing to sustainability. Through anaerobic digestion, the Company converts waste, such as whey, production residues and wastewater, into biogas. Then the produced biogas is used for the production of electricity and thermal energy.

3. Human Resource Management

   Education and Development: Kri Kri invests in the training and development of its employees, promoting a positive work environment. The Company's main concern is the existence of a working environment that not only strengthens the relationship of trust it has developed with its people over the years, but at the same time offers the right opportunities for the development of their skills through specialized training programs and work challenges and thus encouraging creativity and innovation.

   Staff training in Food Hygiene and Safety procedures: The proper training of the Company's staff in hygiene and safety procedures is a priority, as it is a key point for ensuring the quality of its products and protecting public health. The training methods of Kri Kri staff include a) interactive seminars and workshops with practical exercises, b) e-learning platforms for continuous training and certification of employees and c) on-the-job training with expert guidance.

   Awards and Distinctions: The Company has been distinguished for its excellent working environment, proving the value it places on its human resources. Within the framework of the HR Awards, Kri Kri has been distinguished with the silver award in the Health & Well-Being

   in Workplace category. Also, Kri Kri has been distinguished in the "Human Resources and Corporate Culture" category of the "Growth Awards".

4. Firm Infrastructure

   Kri Kri's infrastructure includes the strategic, administrative, and support functions that contribute to the overall operation and growth of the company. These activities ensure sustainable development, risk management and maintaining its competitive position in both the Greek and international markets.

   Corporate Governance and Administration

   Strategic Planning: Kri Kri has developed a long-term strategy based on expansion into international markets, new product development and sustainability.

   Administrative Structure: The Company has a modern management model, with specialized executives in areas such as production, distribution, research & development and financial management.

   Internal Audit and Compliance: The Company adopts transparent procedures and policies that ensure compliance with national and international regulatory requirements.

   Information Systems and Digital Transformation

   ERP and Data Analytics: The company uses modern information systems (SAP ERP) to manage critical business operations.

5. Corporate Social Responsibility

Corporate Social Responsibility Program: The Company implements programs that promote well-being and nutritional balance, strengthening its social responsibility. Thus, Kri Kri designed the Corporate Responsibility Program "Milk Education", an innovative educational program that aims to create the necessary conditions for enhancing the competitiveness of Greek milk production (and by extension milk products) in the long term. of Greek producers.

The Company is governed by the Board of Directors, which, according to the decision of the last General Meeting, consists of six (7) members.

The following table presents quantitative data on the composition of the Board of Directors:

2025 2024

In Section XIII. CORPORATE GOVERNANCE, par. (i) and

(l) of the Company's Annual Statement the composition and mode of operation of the Board of Directors are mentioned and the CVs of its members are listed.

Currently, the composition of Kri Kri's Board of Directors does not specifically include certain members who directly represent the Company's employees. In addition, there is no institutionalized or formal mechanism for employee representation at board level.

The Company recognizes the importance of employee participation and expression on critical governance issues and remains committed to maintaining channels of communication and dialogue with human resources, through internal processes and structures, such as the Human Resources Department and regular updates from senior management.

Kri Kri has developed a structured ESG governance framework, defining clear roles, responsibilities and oversight mechanisms, thereby ensuring the effective integration of sustainability into its strategy and business decision-making.

The Company's Board of Directors serves as the highest supervisory body for sustainability matters and holds the ultimate responsibility for the Company's ESG strategic direction and performance. Sustainability issues are systematically included in the agenda of Board meetings, ensuring regular updates and assessment of relevant developments. The Board is informed on a regular basis (at least quarterly) and on an ad hoc basis when significant sustainability issues arise. This information includes, among other things, performance indicator trends against targets, variance analysis, key trends, as well as assessments of future impacts and risks. The Board uses these sustainability updates to support strategic decision-making, target revision, and the approval of related actions and investments.

To enhance the effectiveness of oversight, the Company invests in the continuous training of Board members and senior executives on ESG matters, ensuring an adequate level of knowledge and understanding of relevant risks, impacts and opportunities.

Number and Percentage of Women

Number and Percentage of Non-Executive Members

Number and Percentage of independent non-exec-utive members

2 33,3% 1 16,7%

4 66,7% 4 66,7%

3 50,0% 3 50,0%

The Company has established a special ESG Committee with responsibilities: a) the assessment of the double materiality of the various ESG factors, b) the formulation of the content of the Company's Sustainability Policy and

c) the monitoring and coordination of all ESG actions.

Kri Kri has established a special ESG Committee, which operates as a key mechanism supporting both the Com-pany's Senior Management and the Board of Directors. Its main responsibilities include:

• Assessing of Double Materiality,

• Developing and updating the Company's sustainabil-

  ity-related policies,

• Monitoring, coordinating and evaluating ESG actions, and

• Defining ESG performance indicators (KPIs).

  The ESG Committee works in a cross-functional manner with key Company departments (such as Human Resources, Finance and Production), ensuring the integration of sustainability principles into day-to-day operations.

  The members of the ESG Committee offer a variety of skills and experiences, especially in areas related to ESG issues. At the same time, they have extensive experience and understanding of dairy sector operations, environmental initiatives and carbon reduction, business behavior, management of working conditions and human resource issues, marketing practices and the promotion of modern nutrition products. However, in the event that gaps in the expertise of ESG committee members are identified, targeted training or the use of external expertise are carried out, as appropriate.

  Governance Structure

  The Board of Directors:

  − Takes ultimate responsibility for ESG strategy and performance.

  − Selects the members of the ESG Special Committee

  − Examines ESG risks and opportunities at regular intervals.

  ESG Committee:

  − Collaborates with various departments of the company (e.g. HR, Financial Department, Production Department).

  − Selects ESG working group members

  − Sets clear KPIs and accountability measures for ESG initiatives.

  − Ensures cross-functional coordination between departmental teams to integrate sustainability principles into the Company's business operations, ensure regulatory compliance, and promotes continuous improvement of sustainability performance.

  Impacts, risks and opportunities faced in 2025

  During the Financial Year 2025, Kri Kri updated its sustainability assessment, reviewing a total of 26 ESG topics

  and identifying the material impacts, risks and opportunities associated with its activities, in alignment with the principle of Double Materiality.

  In this context:

  Significant negative impacts continue to be primarily associated with greenhouse gas emissions from the production process, as well as the environmental burden arising from the use and management of packaging materials.

  Significant positive impacts include the Company's contribution to local economic development, job creation, and support for domestic agricultural production.

  The main risks identified for 2025 include:

• increasing climate variability, which affects the availability and cost of raw materials,

• the strengthening of the regulatory framework on packaging, particularly in relation to Regulation (EU) 2025/40,

• changing consumer preferences towards more sustainable and healthier products.

  At the same time, the Company identified significant opportunities, such as:

• improving energy efficiency and reducing its carbon footprint through investments in low-emission technologies,

• developing circular economy practices, with emphasis on the use of recyclable and reusable packaging materials,

• enhancing corporate reputation and stakeholder trust through the adoption of responsible business practices.

The results of the assessment are systematically used to shape the Company's sustainability strategy, prioritize actions and allocate resources, thereby strengthening resilience and long-term value creation. This process is integrated into operational and management functions in accordance with ESRS requirements, and in particular standards IRO-1 and SBM-3.

Kri Kri has established, maintains and implements basic principles and rules regarding the remuneration of the members of its Board of Directors, the Chief Executive Officer and the Deputy Chief Executive Officer, which aim to contribute to the continuous advancement of the Company's business strategy, the enhancement of its longterm financial value and its sustainability. without excluding the assurance of short-term profitability, which, however, should not contradict the Company's viability. The Remuneration Policy aims to promote the long-term interests of the Company and to achieve the objectives and interests of its shareholders, as well as of the parties

involved, to the extent that the former are not overshadowed by the latter.

During the current reporting period, Kri Kri has not incorporated sustainability-related indicators or targets into the incentive schemes for the members of the Board of Directors or other senior managers.

The Company periodically reviews remuneration policies and their potential linkage to ESG targets, as part of its strategy for sustainable growth and long-term value

Kri Kri has identified, within the framework of the Double Materiality Assessment, the significant impacts, risks and opportunities (IROs) related to its operations, value chain and broader business environment. These material IROs are primarily concentrated in the areas of climate change, water resource management, circular economy, human resources, product safety, and business conduct.

These impacts, risks and opportunities arise both from the Company's own operations and from its relationships with suppliers and partners across the upstream and downstream value chain, particularly in milk sourcing and product distribution.

Kri Kri assesses both actual and potential impacts of IROs on its business model, strategy and decision-making processes. Environmental impacts are mainly related to energy and water consumption, as well as greenhouse gas emissions, while social impacts are linked to working conditions, employee health and safety, and product quality and safety. Positive impacts include job creation, support for the local economy, and the provision of high-quality products to consumers.

Key sustainability-related risks include, among others, regulatory risks (e.g. stricter environmental requirements), supply chain risks (e.g. raw material availability), and risks related to energy and resource costs. Corresponding opportunities include improvements in energy efficiency, development of sustainable products, and the transition to circular business models.

These impacts manifest over different time horizons-short, medium and long term-and are integrated into the Company's strategy through investments in sustainability technologies, optimisation of production processes, and strengthening of value chain resilience.

At a financial level, significant risks and opportunities may affect the Company's financial position, performance and cash flows, particularly through changes in energy costs, investment needs and compliance requirements. The Company monitors these developments and takes measures to manage related risks and leverage opportunities.

The Company also assesses the resilience of its strategy and business model against material impacts, risks and opportunities, considering different scenarios and time

horizons. Resilience is strengthened through investments in sustainable technologies, diversification of the supply chain, and integration of ESG factors into decision-mak-ing.

During the reporting period, no material changes occurred in the significant topics, impacts, risks and opportunities compared to the previous assessment, confirming the stability of the Company's strategic approach.

Disclosures related to material topics are covered by the relevant ESRS standards, while, where necessary, Company-specific disclosures are provided to ensure a more complete representation of impacts, risks and opportunities.

In 2023, we had conducted the double materiality assessment in accordance with the European Sustainability Reporting Directive (CSRD) and based on the Materiality Principle of GRI Standards.

In 2024 we amended the name of the process to a Double Materiality Assessment (DMA) and which was carried out in accordance with the requirements of the ESRS standards, to identify, assess and monitor our material impacts on people and the environment (impact materiality), as well as key business risks and opportunities arising from sustainability topics (financial materiality).

In 2024, the following sustainability topics identified as the most important for reporting in relation to our business model, operations, and business relationships across the value chain:

E1 - Climate Change (ESRS E1)

E3 - Water and marine resources (ESRS E3)

E5 - Resource Use and Circular Economy (ESRS E5) S1 - Relevant workforce (ESRS S1)

S4 - Consumers and End-Users (ESRS S4) G1 - Business Conduct (ESRS G1)

Kri Kri initially identified 26 sustainability topics/sub-topics that were assessed for materiality. Those sub-topics were assessed and categorized as material (impacts, risks and opportunities, or both) or as non-material for reporting purposes, as illustrated in the table below. Each sub-topic is linked to certain impacts, risks and opportunities (IROs) and those IROs that are considered the most important, which form the basis for Kri Kri's disclosures to each sub-topic.

During the Financial Year 2025, the Company updated its sustainability assessment, re-examining individual topics and their related impacts, risks and opportunities. This process did not result in any material changes to the materiality assessment, while the structure of the topics and their mapping to the IROs remained unchanged, confirming the consistency and stability of the Company's approach to sustainability management.

1: This table presents the impacts, risks and opportunities (IROs) of Kri Kri., along with details on whether they are considered actual or potential, positive or negative, in the short, medium or long term, and where they arise in the value chain.

2: S = short-term (<12 months), M = medium-term (between 1 and 5 years). L = long term (> 5 years).

Policies, actions and objectives, impacts, risks and opportunities, are further described in each topic.

The process of recognizing and evaluating double significance includes 6 stages

1. Assessment of the current situation and the external context of Kri Kri S.A.

   We assessed the current situation and our external context through a comprehensive assessment that included the following overview work both for our own operations and across the value chain:

   • The Principle of the Sustainable Development Framework of GRI Standards.

   • The sustainability topics and sub-topics of the ESRS

   • Regulation 2020/852 of the Taxonomy of the European Union

   • Internal documents, related to policies, procedures, strategy.

   • The sustainable development reports of similar companies.

   • The sectoral publications of the GRI organization for consumer products.

   • The 17 United Nations Sustainable Development Goals (UN SDGs) This process led to a list of 26 topics.

2. Mapping the value chain and the impacts & risks and opportunities

   Part of the assessment focused on understanding our value chain, potential and actual impacts, and the risks and opportunities that have or may have financial implications.

   The functions and relationships of Kri Kri have been summarized and categorized into upstream, own operations and downstream activities.

   The 26 topics that selected were associated with those activities.

3. Involvement of internal and external stakeholders

   Through a questionnaire, and then interviews, we gathered input from stakeholders to identify the material topics concerning Kri Kri.

   330 stakeholders participated in the Survey and their distribution is reflected in the graph below.

   
   
   

4. Double Materiality Assessment

   1. Impact assessment methodology

      The impact materiality assessment includes the evaluation of any actual or potential, positive or negative impacts of the Company on people and the environment, across the short, medium, and long term.

      Company executives with expertise in specific sustainability areas are responsible for assessing the identified impacts related to their respective areas of responsibility. The assessment process was carried out through a combination of workshops, internal and external analyses, as well as collaboration with specialized consultants. At the same time, Company executives take into account the views of key stakeholders, incorporating them into the impact assessment process.

      Kri Kri's impact scoring methodology is developed in accordance with Section 3.4 of the ESRS 1 standard. For actual and negative impacts, the materiality assessment is based on the severity of the impact, while for positive impacts, the materiality assessment is based on scale and range. For potential impacts, the significance assessment also includes considering their probability.

      The severity of an actual or potential negative impact is assessed from the perspective of the people affected or the environment and is determined by the following characteristics that form the basis for setting the limits:

      1. Scale: The severity of the impact (i.e., extent of violation of access to basic life needs or freedoms such as education, livelihood, etc.);

      2. Scope: how extensive the impact is (i.e., the number of people affected or the extent of the environmental damage); and

      3. Non-reparable: the extent to which the impact can be remedied (e.g. through compensation or reparation, whether the affected people can be remedied in exercising this right, etc.). The underlying question is whether there are limits to the restoration capacity of the environment or those affected in a situation at least to the same or equivalent level of their situation, before the negative impact.

      It is clarified that in the event of a potential negative impact on human rights, the severity of the impact outweighs the likelihood of provocation.

      The following table shows the calculation of the severity of the negative impacts.

      Severity score of negative impact: (A+B+C)/3

      Grades A/B/C	Scale (A)	Scope (B)	Remediability (C)
      	How serious are the effects on humans or the environment?	How far-reaching are the impacts on humans or the environment?	How difficult is it to reverse the impact on humans or the environment?
      5	Very high	Global	Irreversible
      4	High	Extensive	Very difficult to deal with
      3	Moderate	Average	Difficult to deal with
      2	Low	Local	They are corrected with short-term efforts
      1	Minimum	Limited	Relatively easy to fix
      0	No	No	Very easy to fix

      The table below shows the calculation of the severity of the positive effects.

      Severity score of positive effect: (A+B)/2

      A/B grades	Scale (A)	Scope (B)
      	How beneficial is the effect on humans or the environment?	How far-reaching are the impacts on humans or the environment?
      	Contributing to the 17 United Nations Sustainable Development Goals
      5	Very high	Global
      4	High Moderate	Extensive
      3	Low Minimum	Average
      2	No Very high	Local
      1	High	Limited
      0	Moderate	No

      The assessment of the significance of the impact is done with the help of the table below, where significant impacts are considered to be those that fall under the following red areas.

      
      
      

   2. Risk and opportunity assessment methodology

      The financial materiality assessment takes an external perspective, thus focusing on any risks and opportunities of sectors related to sustainability topics that could affect the financial position, performance or financial position of Kri Kri or cash flows, in the short, medium and long term.

      Using the information from the impact significance assessment as a starting point, Kri Kri's experienced executives explore the risks and opportunities associated with the business. In addition, through the periodic review of the Company's risk management and the inclusion of the relevant risks in the Double Materiality Assessment process, Kri Kri ensures consistency in risk management processes.

      Kri Kri's financial materiality methodology has been designed in accordance with Section 3.5 of the ESRS 1 standard. The score ranges from one to three, where one corresponds to the lowest score. The first step in assessing our financial significance is to assess external factors that can create a risk or opportunity. Those may include any adverse or positive external events, such as upcoming regulations or changes in customer requirements.

      As soon as a risk or opportunity related to a sustainability issue has been identified, Kri Kri assesses its financial size and relative likelihood of occurrence. The financial size is assessed in terms of the impact on EBITDA and on Investments (range from one to three), in accordance with the Company's risk management and considers the financial impact on Kri Kri's finances, financial performance, cash flow, and the accessibility to finance or cost of capital in the short, medium or long term

      For the evaluation, the probability of occurrence is taken into account.

      The table below shows the calculation of short-term risks and opportunities.

      EBITDA & Investments	Score
      ≥5 million €	3
      2 - €4.99 million	2
      0 - €1.99 million	1

      The table below shows the calculation of medium and long-term risks and opportunities.

      EBITDA & Investments	Score
      ≥10 million €	3
      5 - €9.99 million	2
      0 - €4.99 million	1

      The assessment of financial materiality is done with the help of the table below, where significant risks and opportunities are considered to be those that fall under the following red areas.

      3

      Financial Score

      2

      1

      1 2 3 4 5

      Probability

5. Consolidation of results

   The results from the impact and financial materiality assessment are consolidated to obtain an overview of the impacts, risks and opportunities of Kri Kri. The materiality conclusions are dynamically mapped against the long list of sustainability topics identified in the first step, to identify the material topics to be included in this Statement. Any sustainability topic assessed as significant in terms of impact materiality, or in terms of financial materiality, or both, is considered important for reporting, and is therefore included in this Statement.

6. Validation of results by the Board of Directors

The results of the double materiality assessment were validated by the Company's Board of Directors.

Kri Kri, based on the EU Corporate Sustainability Due Diligence Directive (CSDDD), follows specific steps for the Due Diligence process.

Step 1: Identify Risks and Impacts

Mapping of the value chain to identify potential environmental and social impacts.

Examination of the Company's operations and its partners.

Step 2: Risk Prevention and Mitigation

Adopt ESG policies and strategies to prevent negative impacts.

Development of supplier control systems and ESG audits.

Step 3: Track and Statement Progress

Defining performance indicators (KPIs) for sustainability.

Submission of annual sustainability statements (CSRD/ESRS reporting).

Step 4: Corrective Actions & Breach Management

Development of initiatives for the restoration of damage to society or the environment.

Due Diligence in the Milk Supply Chain

Kri Kri sources milk from domestic milk production units, which must ensure that they adhere to environmental and ethical standards.

Thus, the implementation of the Kri Kri farm control program examines whether producers:

1. They adhere to guidelines of good practice in animal husbandry.

2. They do not use illegal antibiotics or hormones.

3. Ensure animal health and welfare

4. They reduce methane emissions from cows through sustainable feeding practices.

Due Diligence in Environmental Matters

Kri Kri has a significant environmental footprint due to its high consumption of water, energy, and greenhouse gas (GHG) emissions.

The company's Sustainable Production Program aims to:

1. Use of Renewable Energy Sources (RES) in installations.

2. Reduction of CO₂ emissions per liter of milk through

   logistics optimization.

3. Application of wastewater treatment and water use reduction technologies.

Due Diligence in Sustainable Packaging

Plastic pollution is an important issue for Kri Kri.

Thus, the company implements specific measures to reduce the impact of the use of plastics. The most important of these are:

1. Transition to 100% recyclable materials.

2. Reducing the weight of plastic containers for less use of raw materials.

3. Cooperation with circular economic initiatives (recycling partnerships).

Due Diligence for Workers' Rights

Kri Kri ensures fair and safe working conditions by:

1. Ensuring fair wages and private health insurance for employees.

2. Adopt anti-discrimination policies and enhance diversity and inclusion.

Kri Kri has established a comprehensive risk management and internal control framework related to the preparation of the Sustainability Statement. This framework aims to ensure the completeness, accuracy, consistency, and reliability of the disclosed information, as well as compliance with the requirements of the European Sustainability Reporting Standards (ESRS).

That framework clearly defines roles and responsibilities and includes structured processes for the collection, validation, and reporting of ESG data. The Internal Audit department reports directly to the Board of Directors, through the ESG Committee, and conducts regular audits covering both financial and non-financial (ESG) areas.

The monitoring process includes:

− Regular internal evaluations of control systems;

− Risk reports to management and the Audit Committee;

− Continuous improvement through recommendations and action plans;

− Integration of sustainability topics into the context of business risk assessment.

Hazard Identification

It is carried out through:

− Interviews with managers,

− Review of regulatory and operational issues,

− Stakeholder Analysis

Risk Analysis and Assessment

Each risk is assessed on the basis of:

− Probability

− Severity of economic, environmental or social impacts;

− Time horizon (short-term, medium-term, longterm),

− Effects on dependencies between sustainability issues.

Prioritization of Risks

Risk prioritization is based on both quantitative and qualitative assessment and is presented in tables to enhance the visibility of the most critical risks.

Kri Kri has identified and assessed the key risks related to the preparation and submission of the Sustainability Statement, as well as the corresponding internal control mechanisms implemented to mitigate them.

1. Failure to identify sustainability impacts

   There is a risk that material sustainability impacts related to the Company's own operations, as well as upstream (suppliers) and downstream (customers/product distribution) stages of the value chain, may not be fully identified. This may lead to incomplete identification of Impacts, Risks, and Opportunities (IROs) and, consequently, to incomplete compliance with ESRS requirements.

   Relevant internal controls:

   Conducting a comprehensive mapping of the value chain

   Systematic analysis of impacts, risks, and opportunities across all stages of the value chain

   Involvement of relevant functions and departments in the IRO identification process

2. Failure to consider all ESRS-prescribed topics in the identification and assessment of IROs

   There is a risk that not all relevant ESRS topics and requirements are considered during the identification and assessment of Impacts, Risks, and Opportunities (IROs), which may result in incomplete or insufficient identification of material sustainability matters and non-compli-ance with the regulatory framework.

   Relevant internal controls:

   Implementation of the Due Diligence process (DMA) in line with ESRS requirements

   Use of standardized tools and methodologies for the identification and assessment of IROs

   Continuous review and update of the analysis based on regulatory developments and changes in the business environment

3. Unreliable quantitative and qualitative information for the Sustainability Statement

   There is a risk that the quantitative and qualitative information included in the Sustainability Statement may not be fully reliable, accurate, or consistent due to errors in data collection, processing, or validation, as well as potential weaknesses in governance and related processes.

   Relevant internal controls:

   Established procedures for the collection, processing, and reporting of sustainability data

   Data validation and cross-checking processes by responsible personnel

   Ongoing monitoring and improvement of processes through internal audits and reporting

4. Failure to achieve sustainability targets

There is a risk that the Company's defined sustainability targets may not be achieved within the expected timeframe due to internal or external factors, such as operational deviations, changes in the regulatory environment, limited resource availability, or insufficient monitoring of progress.

Relevant internal controls:

Systematic monitoring of progress through defined performance indicators

Regular reporting and evaluation of target achievement to Management

Integration of sustainability targets into strategy and business planning

Involvement of relevant departments in the implementation of targets

Revision of targets and action plans, where necessary, based on performance monitoring

Stakeholders' views are very important for the Company,

in order to reach a highly efficient operational level.

This ongoing exchange of views, including Double Materiality research, is an important part of the materiality assessment and in that way the ESG program and processes evolve, allowing us to align with the interests and views of our stakeholders.

Kri Kri recognizes that its strategic development and business model are directly influenced by the views, interests and expectations of its stakeholders. Understanding those parameters is an integral part of both the due diligence process and the double materiality analysis applied in the context of the drafting of the Sustainability Statement.

During the period under review, Kri Kri did not make any changes to its strategy or business model, in relation to the interests and views of the interested parties. The Company's existing strategy was deemed to be aligned with the main expectations of the stakeholders, as recorded through the due diligence process and the double materiality assessment.

Kri Kri has established specific procedures to ensure that the Company's Board of Directors is systematically and timely informed of the views, concerns and interests of stakeholders in relation to sustainability-related impacts.

Regular Internal Reports to Management

The ESG Committee prepares periodic reports with an overview of issues raised by stakeholders.

Mapping Process and Dialogue with Stakeholders

Kri Kri recognizes the importance of continuous and transparent communication with stakeholders as a fundamental component of the sustainability strategy and social acceptance of its activities.

In this context, it is planned to strengthen dialogue mechanisms and broaden the involvement of stakeholders through:

− periodic mapping and readjustment of stakeholder groups;

− conducting targeted consultations (questionnaires, interviews);

− the incorporation of these results into the Double Materiality processes.

The above initiatives are expected to have positively impact on the Company's relations with stakeholders, both at the level of perception and at the level of strategic cooperation, enhancing transparency and accountability.