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PREATONI : Consolidated financial statements as of June 30, 2025
PREATONI : Consolidated financial statements as of June 30,
About this update from Preatoni Group
CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2025 Unaudited Consolidated financial statements Consolidated income statements and consolidated statements of comprehensive income Consolidated Statement of financial position Statement of changes in consolidated shareholders' equity Consolidated statements of cash flows 3 4 5 6 Consolidated financial statements Consolidated statements of net income and comprehensive income In euros Note June 2025 June 2024 Restated Turnover 6.1 50 899 272 26 856 770 Consumed purchases and other external services 6.2 (33 943 669) (19 362 417) Personal costs and charges 6.3 (6 680 487) (6 897 183) Amortizations, impairment and provisions 6.4 (3 991 122) (2 815 878) Current revenues 708 011 487 770 Current expenses (894 427) (501 958) Current operating income 6 097 578 (2 232 896) Change in value of investment properties 754 149 - Income from the disposals of assets 307 (32 110) Scope effects 324 675 (6 750) Other non-recurring revenues and expenses (16 268) (39 835) Goodwill impairment (109 037) (129 761) Share of net income (loss) of equity-accounted entities (196 029) (227 617) Income from operating activities 6.5 6 855 375 (2 668 969) Cost of net debt (2 392 476) (3 115 308) Other financial income and expenses 160 420 1 744 662 Financial income (Loss) 6.6 (2 232 056) (1 370 646) Profit before tax 4 623 319 (4 039 615) Tax expenses 5.18 (153 083) (245 900) Consolidated net income 4 470 236 (4 285 515) Of which Attributable to the Group 1 652 835 (2 388 267) Attributable to non-controlling interests 2 817 401 (1 897 248) Average number of non diluted shares 8 807 035 8 807 035 Non diluted net income, Group share per share 0,19 (0,27) Average number of diluted shares 8 807 035 8 807 035 Diluted net income, Group share per share 0,19 (0,27) June 2025 June 2024 Restated In euros Total of which Group share of which non controlling interests Total of which Group share of which non controlling interests Consolidated net income 4 470 236 1 652 835 2 817 401 (4 285 515) (2 388 267) (1 897 248) Translation gains and losses (6 570 074) (6 432 412) (137 662) (33 835 570) (33 186 414) (649 156) Tax on translation gains and losses - 0 0 0 0 0 Total reclassifiable items (6 570 074) (6 432 412) (137 662) (33 835 570) (33 186 414) (649 156) Actuarial gains and losses 0 0 0 0 0 0 Tax on actuarial gains and losses 0 0 0 0 0 0 Total non - reclassifiable items 0 0 0 0 0 0 Other comprehensive Items (6 570 074) (6 432 412) (137 662) (33 835 570) (33 186 414) (649 156) Total Comprehensive income (loss) (2 099 838) (4 779 577) 2 679 739 (38 121 085) (35 574 681) (2 546 404) Consolidated Statements of financial position In euros Note June 2025 December 2024 Non-current assets Goodwill 5.1 101 959 327 104 595 133 Intangible assets 5.2 6 315 805 6 461 508 Tangible assets 5.3 112 184 029 119 118 722 Investments properties at fair value 5.4 42 776 923 44 510 686 Rights of use 5.20 1 322 689 1 505 309 Investments in associates 5.5 0 0 Equity instruments 5.6 740 130 1 024 119 Other non-current assets 5.7 2 938 095 2 479 376 Deferred tax assets 5.19 4 589 458 4 583 598 Total on-current assets 272 826 456 284 278 451 Current assets Inventories 5.8 57 877 225 57 911 758 Trade receivables 5.9 8 854 092 10 491 301 Other current assets 5.10 7 188 682 4 711 190 Cash and cash equivalents 5.11 12 050 906 10 251 675 Total current assets 85 970 905 83 365 925 Assets classified as held for sale 5.4 - - Total assets 358 797 361 367 644 375 Capital and additional paid in capital 361 088 435 361 088 435 Retained earnings (94 307 861) (79 768 296) Translation reserves (104 523 867) (98 091 455) Consolidated net income 1 652 835 -14 664 829 Shareholders' equity, Group share 163 909 542 168 563 855 Non-controlling interests 31 443 357 28 846 398 Total shareholder's equity 5.12 195 352 899 197 410 253 Non-current liabilities Provisions 5.13 1 580 081 2 072 902 Pensions obligations 5.14 650 917 590 934 Long-term borrowings 5.15 75 512 113 68 557 859 Lease liabilities 5.20 1 040 581 1 104 285 Contracts liabilities 5.18 10 533 998 8 420 135 Other liabilities 5.16 4 468 925 5 345 071 Deferred tax liabilities 5.19 16 466 253 18 696 443 Total non-current liabilities 110 252 868 104 787 629 Current liabilities Short-term borrowings 5.15 12 035 084 26 934 157 Lease liabilities 5.20 323 710 441 774 Trade payables 5.16 16 089 312 13 072 480 Contracts liabilities 5.18 11 726 168 11 629 295 Other liabilities 5.17 13 017 320 13 368 787 Total current liabilities 53 191 594 65 446 493 Total shareholder's equity and liabilities 358 797 361 367 644 375 Statements of changes in consolidated shareholders' equity Number of Additional Consolidated Translation Shareholders' Non In euros Shares Share capital paid in capital reserves and net income adjustments equity, Group share controlling interests Total - - - (2 340 529) - (2 340 529) (2 340 529) Capital increase Transactions between shareholders & Business Other changes - - - (13 847 192) (426 107) (14 273 299) Capital increase Transactions between shareholders & Business combinations - (36 108 843) 36 108 843 - - - (35 780 556) - - 5 417 - 5 417 (14 592) (9 175) Equity at June 2024 restated Net income 8 807 035 361 088 435 (1 944 986) - (33 186 414) (33 186 414) (649 156) (33 835 570) (47 738) (33 186 414) (33 234 152) (2 546 404) (6 432 412) (4 779 577) (12 661 968) Other comprehensive income (12 212) (1 558 418) (1 570 630) (40 701) (1 611 331) Comprehensive income (12 288 774) (1 897 248) (6 432 412) (6 432 412) 1 652 835 - - - 4 470 236 2 817 401 Capital increase/decrease Transactions between shareholders & Business Other changes 1 652 835 (385 406) - - - - - - (602) (602) Other changes (1 558 418) - (81 917 219) (96 533 044) 182 638 172 29 419 323 212 057 495 (12 276 562) - (12 276 562) 42 484 (94 433 125) (98 091 455) 168 563 855 28 846 398 197 410 253 Net income Other comprehensive income Comprehensive income Dividends distributed in cash - - 1 652 835 (47 738) - Equity at June 2025 8 807 035 324 979 592 36 108 843 (92 655 026) (104 523 867) 163 909 542 31 443 357 195 352 899 (82 780) 36 108 843 (6 570 074) (2 099 838) - - - - - - - - - - (227 132) 7 (227 125) (146 216) (373 341) Equity at December 2024 8 807 035 324 979 592 - - - - - - 125 264 - 125 264 (1 870) - - - - - - (103 289) - (103 289) 101 419 - (47 738) 250 189 625 31 878 900 218 310 725 (63 346 630) (79 431 080) 8 807 035 361 088 435 Equity at December 2023 Restated Net income Other comprehensive income Comprehensive income Spread of Sunny Properties Turnover: Income statement - (137 662) 2 679 739 - - - - - - - - - Consolidated statements of cash flows In euros June 2025 June 2024 Restated Net income 4 470 236 (4 285 515) Share in net income (loss) of associates 196 029 227 617 Amortizations, impairment and provisions 2 634 891 2 831 823 Elimination of capital gains and losses on assets disposals 244 407 60 392 Change in value of investment properties (741 151) - Other items with no cash effect - (8 609) Income tax expense 153 083 245 900 Interest expense on borrowings and lease liabilities 2 410 534 3 131 290 Cash flows from operations before financial income/(expense) and income tax 9 368 029 2 202 898 Income tax (received) paid (1 326 347) (418 422) Change in working capital requirements 5 661 225 (1 394 684) Cash flows from operating activities 13 702 907 389 792 Investments in tangible and intangible assets (590 813) (3 275 230) Acquisitions of investment properties (141 049) - Takeover of subsidiaries net of cash and cash equivalents acquired - - Acquisitions of interests in associates and joint - ventures - - Loss of controlling interests in subsidiaries net of cash and cash equivalents sold - - Disposals of assets - - Change in loans and other financial receivables (576 102) (172 712) Cash flows from investing activities (1 307 964) (3 447 942) New loans and borrowings 12 427 637 11 120 139 New lease liabilities - - Repayment of loans and borrowings (20 158 117) (10 766 012) Repayment of lease liabilities (232 558) - Interets paid on loans, borrowings and lease liabilities (2 400 962) (2 615 262) Other financing flows - - Cash flows from financing activities (10 364 000) (2 261 135) Total cash flows for the period 2 030 943 (5 319 285) Opening cash and cash equivalents 10 251 675 22 039 520 Closing cash and cash equivalents 12 049 202 15 908 722 Impact of changes in exchange rates and other (233 416) (811 513) Notes on the consolidated financial statements Accounting principles and methods 9 Preatoni Group presentation 9 Accounting basis 9 Application of IAS 8 for error correction 10 Basis of measurement and preparation of the consolidated financial statements 10 Use of estimates and judgment 11 Accounting policies 11 Highlights of the period 13 Scope of consolidation 14 Segments information 16 Notes to the consolidated statements of financial position 20 Goodwills 20 Intangible fixed assets 21 Tangibles assets 22 Investment property at fair value 23 Investments in associates 24 Financial assets 24 Inventories 26 Trade receivables 27 Other current assets 28 Cash and cash equivalents 29 Shareholders' equity 29 Provisions 29 Current and non-current financial liabilities 30 Other non-current liabilities 32 Operating liabilities 32 Contract assets and liabilities 32 Lease agreements 33 Notes to the statements of net income 35 Revenues 35 Operating expenses 36 Impairment losses, amortization and provisions 36 Income from operating activities 36 Net financial income/loss 37 Income tax 38 Income taxes 38 Deferred taxes 39 Employee compensation and benefits Pension and similar commitments Personnel costs and workforce 40 40 41 Financial risk management Market risk Counterparty risk Liquidity risk 42 42 42 44 10 Guarantees given 45 Additional information Share ownership Compensation of Supervisory Board and Executive Board members Transactions with related parties Atypical and/or unusual operations Subsequent events 46 46 46 46 47 47 Accounting principles and methods Preatoni Group presentation PREATONI Group has been registered in the Paris Trade Register since July 13, 2022, as a public limited company and is domiciled at 7, avenue Victor Hugo, 75116 Paris. The company is a financial holding that has been in operation since July 1, 2022, It is the parent company of the PREATONI Group, which is mainly located: In Egypt and Italy, operating its own hotels and resorts, and In the Baltic States and Dubai, developing real estate. PREATONI Group shares were admitted to trading on the Euronext Access+ Paris market on February 12, 2025. PREATONI Group's consolidated financial statements as of June 30, 2025, were approved by the Board on September 25, 2025. Accounting basis Accounting standards The consolidated financial statements as of June 30,2025 have been prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as adopted by the European Union and applicable on that date. Changes in accounting standards Texts applicable as of January 1, 2025 The accounting principles applied by the Group are identical to those used in the consolidated financial statements as of December 31, 2024, with the exception of new standards and amendments that are mandatory as of January 1, 2025, and which had not been applied in advance by the Group. The amendment below, which is mandatory as of January 1, 2025, had no impact on the Group's consolidated financial statements as of June 30, 2025: Amendment to "IAS 21 - The Effects of Changes in Foreign Exchange Rates - Non-convertible Currencies." Texts applicable from January 1, 2026 The following standards, amendments, or interpretations applicable as of January 1, 2026, have not been early adopted by the Group: Amendments to IFRS 9 and IFRS 7 - Classification and measurement of financial instruments Texts applicable from January 1, 2027 The following two standards will be mandatory from January 1, 2027, subject to their adoption by the European Union: IFRS 19 - Subsidiaries not subject to public disclosure requirements: Disclosures IFRS 18 - Presentation and disclosures in financial statements IFRS 18 is intended to replace IAS 1 on the presentation of financial statements and to amend, primarily, IAS 7 -Statement of Cash Flows and IAS 8 - Accounting Policies, Changes in Accounting Estimates, and Errors. If adopted, this standard will have to be applied retrospectively. Annual improvements to IFRS are limited to changes that clarify certain wording in the accounting standards or remedy omissions or inconsistencies between the provisions of the standards. Application of IAS 8 for error correction In accordance with the provisions of IAS 8, the following error corrections were recorded on the financial statements as of June 30, 2024: Spreading of revenues from the sale of Time-share in Egypt In Egypt, time-shares are sold by Sunny Properties in the form of a right to usufruct for a period of one or more weeks essentially over a period of 5 or 30 years. The customer has the right to use the property as soon as a deposit of 30% of the contract value has been paid. The balance, i.e. 70%, is paid over a maximum of 18 months. The average sale price for 5-year contracts is around €5,000, and for 30-year contracts around €11,000. The customer must notify the resort operator annually, with six months' notice, of their intention to use their period. They then undertake to pay the resort operator a sum corresponding to the hotel services that will be provided to them under the contract. According to IFRS 15, revenue from ordinary activities is recognized when the goods or services promised to customers are provided. In the case of Sunny Properties, the time-share contract is treated as a contract for the provision of hotel services, with the obligations being fulfilled over the total term of the contract. Sunny Properties recognized the full amount of revenue when the contract was signed and the 30% deposit was paid. In accordance with IFRS 15, its revenue has been adjusted to recognize 1/5 of 5-year contracts and 1/30 of 30-year contracts in the annual or interim results. This adjustment was applied retrospectively: In equity as of December 31, 2023, for an amount of -7,423,365 euros; this impact is presented in the consolidated financial statements published by the group as of December 31, 2024. In the consolidated statement of financial position as of June 30, 2024, for an amount of -2,340,529 euros. The impact of the correction on the income statement as of June 30, 2024, is as follows: In euros June 2024 published Spread of Sunny Properties Turnover June 2024 restated Turnover 29 128 299 (2 271 529) 26 856 770 Consumed purchases and other external services (19 362 417) - (19 362 417) Personal costs and charges (6 897 183) - (6 897 183) Amortizations, impairment and provisions (2 746 878) (69 000) (2 815 878) Current revenues 487 770 - 487 770 Current expenses (501 958) - (501 958) Current operating income 107 633 (2 340 529) (2 232 896) Change in value of investment properties - - - Income from the disposals of assets (32 110) - (32 110) Scope effects (6 750) - (6 750) Other non-recurring revenues and expenses (39 835) - (39 835) Goodw ill impairment (129 761) - (129 761) Share of net income (loss) of equity-accounted entities (227 617) - (227 617) Income from operating activities (328 440) (2 340 529) (2 668 969) Cost of net debt (3 115 308) - (3 115 308) Other f inancial income and expenses 1 744 662 - 1 744 662 Financial income (Loss) (1 370 646) - (1 370 646) Profit before tax (1 699 086) (2 340 529) (4 039 615) Tax expenses (245 900) - (245 900) Consolidated net income (1 944 986) (2 340 529) (4 285 515) Of w hich Attributable to the Group (47 738) (2 340 529) (2 388 267) Attributable to non-controlling interests (1 897 248) - (1 897 248) Basis of measurement and preparation of the consolidated financial statements The consolidated financial statements have been prepared under the historical cost convention, except for investment property, which is measured at fair value. Use of estimates and judgment In accordance with the IFRS conceptual framework, the preparation of financial statements requires the use of estimates and assumptions that affect the amounts reported in the financial statements. Estimates are based on historical experience and other factors. Estimates are revised periodically, and the effects of any changes are reflected in the consolidated financial statements for the year in which the change occurs. Final outcomes could differ from those estimates. The main items concerned are as follows: Pension commitments The valuation of pension commitments is based on actuarial calculations. The Group considers that the assumptions used are appropriate and justified, and that any change in assumptions would not have a material impact. Measurement of the fair value of assets and liabilities The main assumptions and estimates used to determine the fair value of assets and liabilities include the expected market outlook required to measure future cash flows, and the discount rates to be applied. The values used reflect management's best estimates. Deferred tax assets Deferred tax assets are recognized on tax loss carry-forwards when it is probable that future taxable profit will be available to the Group against which the tax loss carry-forwards can be utilized. The likelihood of future taxable profits is estimated taking into account the existence of temporary taxable differences from the same tax entity and is passed on to the same deadlines towards the tax authority as well as the estimates of future taxable profits. Inventory valuation Inventories are periodically assessed and written down if their net realizable value is lower than their book value. Net realizable values are determined on the basis of assumptions made by management based on experience and historical observations. In addition to relying on estimates, the Group's management may use judgments to determine the appropriate accounting treatment for certain activities and transactions, particularly when the IFRS standards and interpretations in force do not precisely address the accounting issues concerned. Accounting policies Foreign currency translation methods (IAS 21) Presentation currency of the consolidated financial statements The consolidated financial statements are presented in euros (€), which is PREATONI Group's functional and presentation currency. Functional currency Functional currency is the currency of the primary economic environment in which an entity operates. In most cases, the functional currency is the local currency. However, for some entities, a functional currency other than the local currency may be used, provided it better reflects the currency of the entity's main transactions and economic environment. Translation of foreign currency transactions Transactions in foreign currencies are recorded in the functional currency at the exchange rate on the transaction date. At each reporting date : Monetary assets and liabilities denominated in foreign currencies are translated at year-end exchange rates. The resulting exchange gains and losses are recognized in the income statement for the period; Non-monetary assets and liabilities denominated in foreign currencies are recognized at the historical exchange rate prevailing at the transaction date. Conversion of the financial statements of consolidated companies whose functional currency is not the euro The statement of financial position is translated into euros at the year-end exchange rate. Income and cash flow statements are translated at average exchange rates. Differences arising from the translation of the financial statements of these consolidated companies are recorded under "Translation adjustments" within "Other comprehensive income". The exchange rates of non-euro zone currencies used to prepare the consolidated financial statements are as follows: 2025 2024 Currency Average rate Closing rate Average rate Closing rate CHF Sw iss franc 1,062362 1,069991 1,049388 1,062877 EGP Egyptian pound 0,018126 0,017108 0,020381 0,018931 AED United Arab Emirates Dirham 0,248944 0,231046 0,251566 0,262087 Highlights of the period Listing of PREATONI Group on Euronext Access+ Paris On February 10, 2025, PREATONI Group announced the listing of its securities on the Euronext Access+ Paris compartment by way of technical admission. The shares were first listed on February 12, 2025. Withdrawal of Domina Vacanze Holding AS from the commercial register On February 19, 2025, Domina Vacanze Holding AS was removed from the Commercial Register (Tartu County Court Registration) for failure to file its certified 2023 annual accounts. Given this situation, the company is no longer able to perform legal or management acts. Domina Vacanze Holding AS may be reinstated in the Commercial Register on condition that it files its certified 2023 and 2024 accounts. The process of certifying and filing the 2023 and 2024 financial statements with the Commercial Register is currently underway. Egyptian pound exchange rate In the first half of 2025, the average exchange rate between the euro and the Egyptian pound was 1 euro to 58.27 EGP, compared with 1 euro to 49.043 025 in fiscal year 2024. The exchange rate between the euro and the Egyptian pound stood at €33 before the devaluation in March 2024. Scope of consolidation ACCOUNTING PRINCIPLES The consolidated financial statements include all controlled entities and investments in associates and joint ventures. Controlled entities The financial statements of entities over which the Group exercises exclusive control, directly or indirectly , are consolidated using the full consolidation method . Control is assessed by reference to the Group's exposure to the entity's returns and its ability to influence those returns, by virtue of the power exercised over the entity. The Preatoni Group controls an entity if it meets the following three cumulative conditions: It has power over this entity, i.e. it holds substantive rights that give it the practical ability to direct its key activities. It is exposed to or entitled to variable cash flows associated with its interest in the entity; He has the ability to exercise his power over the entity, to optimize the cash flows from which he benefits. Control is presumed to exist when PREATONI Group directly or indirectly holds more than half of the company's voting rights. A subsidiary is consolidated in the Group's financial statements from the date on which the Group takes control, and ceases to be consolidated on the date on which the Group loses control of the entity. All intra-group balances, income and expenses, as well as unrealized gains or losses arising from internal transactions between controlled entities, are eliminated in full. Investments in associates and joint ventures The equity method is used to consolidate associates and joint ventures. An associate is an entity over which the Group exercises significant influence, i.e. the power to participate in decisions relating to the entity's financial and operating policies, without controlling or jointly controlling these policies. A joint venture is a partnership in which the parties exercising joint control have rights over its net assets. Joint control refers to the contractually agreed sharing of control over an entity, which exists only where decisions concerning the relevant activities require the unanimous consent of the parties sharing control. The results, assets and liabilities of investments in associates and joint ventures are included in the Group's consolidated financial statements using the equity method. When a Group entity enters into a transaction with a Group joint venture or associate, the profits and losses arising from the transaction with the joint venture or associate are recognized in the Group's consolidated financial statements only to the extent of the interests held by third parties in the joint venture or associate. The Group's consolidation includes 43 companies as of December 31, 2024. AS Pro Kapital Grupp has been listed on Nasdaq Tallinn (Baltic Main List segment) since November 23, 2012. It is fully consolidated with a 49.62% controlling interest. PREATONI Group - with its subsidiary Svalbork - is the majority shareholder and has substantive rights that give it the effective ability to manage key activities that significantly affect AS Pro Kapital Grupp's profitability. The changes in the scope of consolidation during the first half of 2025 are as follows: BM Kliversala Sia and Pro Kapital Latvia Engineering SIA, both Latvian subsidiaries of AS Pro Kapital Grupp, were included in the scope of consolidation; SIA Pro Kapital Engineering will be responsible for managing construction projects in Latvia and BM Kliversala SIA will be responsible for developing Blue Marine project in Riga. Reduction of the 21% interest in Preatoni Real Estate DMCC following an increase fully subscribed by the external shareholder; the entity remains under equity accounting with a 29% interest. The entities included in the scope of consolidation are listed below: June 2025 December 2024 Entity Country % interest % control Consolidation method (a) % interest % control Consolidation method (a) Preatori Group France 100,00% 100,00% Holding 100,00% 100,00% Holding Prea Swiss Holding SA Switzerland 100,00% 100,00% FC 100,00% 100,00% FC Preatoni Real Estate DMCC Dubai 29,00% 29,00% EM 50,00% 50,00% EM Suny Properties UAE United Arab Emirates 100,00% 100,00% FC 100,00% 100,00% FC Domina International SA Switzerland 100,00% 100,00% FC 100,00% 100,00% FC Domina Vacanze Holding Estonia 67,99% 67,99% FC 67,99% 67,99% FC Svalbork Estonia 100,00% 100,00% FC 100,00% 100,00% FC Sinai Co. For touristic development Egypt 96,72% 96,72% FC 96,72% 96,72% FC Mayra misr Egypt 100,00% 100,00% FC 100,00% 100,00% FC Domina Health and Beauty Egypt 90,00% 90,00% FC 90,00% 90,00% FC Sheikh Coast Diving Egypt 96,80% 96,80% FC 96,80% 96,80% FC Nile Company for Hotels & Resorts Management Egypt 96,00% 96,00% FC 96,00% 96,00% FC Domina International Management srl Italy 100,00% 100,00% FC 100,00% 100,00% FC Unopuntotre Srl Italy 51,00% 51,00% FC 51,00% 51,00% FC Domina VIP TRAVEL Srl Italy 100,00% 100,00% FC 100,00% 100,00% FC Domina SRL Italy 100,00% 100,00% FC 100,00% 100,00% FC PK Sicily Spa Italy 67,99% 100,00% FC 67,99% 100,00% FC Immobiliare Novate Italy 67,06% 98,64% FC 67,02% 98,57% FC A.F.I American Financial Investment Limited Liechtenstein 100,00% 100,00% FC 100,00% 100,00% FC Zenith Holding AG Liechtenstein 100,00% 100,00% FC 100,00% 100,00% FC AS Pro Kapital Grupp Estonia 49,62% 49,62% FC 49,62% 49,62% FC Pro Kapital Eesti AS Estonia 49,62% 100,00% FC 49,62% 100,00% FC Pro kapital Vilnius Real Estate UAB Lithuania 49,62% 100,00% FC 49,62% 100,00% FC Pro Kapital Latvia JSC Latvia 49,62% 100,00% FC 49,62% 100,00% FC Pro Kapital Germany Holdings OÜ Estonia 49,62% 100,00% FC 49,62% 100,00% FC Pro Kapital Germany GMBH Germany 49,62% 100,00% FC 49,62% 100,00% FC OÜ PKE Treasury (ex OU Ilmarise Kvartal) Estonia 49,62% 100,00% FC 49,62% 100,00% FC AS Tondi Kvartal Estonia 49,62% 100,00% FC 49,62% 100,00% FC Pro Halduse OÜ Estonia 49,62% 100,00% FC 49,62% 100,00% FC OÛ Kalaranna Kvartal Estonia 49,62% 100,00% FC 49,62% 100,00% FC OÜ Marsi Elu Estonia 49,62% 100,00% FC 49,62% 100,00% FC OÜ Kindrali Majad (OÜ Dunde Arendus) Estonia 49,62% 100,00% FC 49,62% 100,00% FC Oû Pro Kapital Engineering Estonia 49,62% 100,00% FC 49,62% 100,00% FC Preatoni Nuda proprieta Srl Italy 33,49% 67,50% FC 67,50% 67,50% FC Preatoni Intermediazioni Immobiliari Srl Italy 33,49% 100,00% FC 67,50% 100,00% FC PK Invest UAB Lithuania 49,62% 100,00% FC 49,62% 100,00% FC In Vitam UAB Lithuania 49,62% 100,00% FC 49,62% 100,00% FC Kliversala SIA Latvia 49,62% 100,00% FC 49,62% 100,00% FC Talina Nekustamie Ipasumi SIA Latvia 49,62% 100,00% FC 49,62% 100,00% FC Nekustamo Ipasumu sabiedriba Zvaigznes Centrs SIA Latvia 49,62% 100,00% FC 49,62% 100,00% FC Pro Kapital Latvia Engineering SIA Latvia 49,62% 100,00% FC - - - BM Kliversala Sia Latvia 49,62% 100,00% FC - - - PK Hotel Management Services GMBH Germany 49,62% 100,00% FC 49,62% 100,00% FC (a) FC : full consolidation EQ: Equity method Segments information ACCOUNTING POLICIES (IFRS 8) IFRS 8 requires disclosure of information on operating segments. For management purposes, the Group is organized into operating segments. These segments are as follows: Real estate development, Hotels & Tourism including time-share and Holdings. The Group also presents analyses by geographical area: Italy, Baltic States, Egypt, Dubai, Others Each entity is allocated to its country of origin and to an operating segment; the information is presented according to this allocation, with the following two exceptions: Financial liabilities are reallocated to the operating segment and country benefiting from the financing; Sunny Properties, the entity responsible for the Sharm El Sheik Time-share activity, is attached to Egypt. The following information is presented by operating segment and geographical area: income statement, EBITDA, fixed assets, cash and financial liabilities. Statement of net income and EBITDA Operating segments June 2025 (in euros) Real Estate Hospitality & Tourism Holding Total Turnover 28 226 861 22 672 411 - 50 899 272 Consumed purchases and other external services (17 665 656) (15 989 092) (288 921) (33 943 669) Personal costs and charges (2 758 711) (3 920 333) (1 443) (6 680 487) Amortizations, impairment and provisions (311 865) (3 541 950) (137 307) (3 991 122) Current revenues 26 966 618 994 62 051 708 011 Current expenses (108 564) (783 863) (2 000) (894 427) Current operating income 7 409 031 (943 833) (367 620) 6 097 578 Fair value investment properties 754 149 - - 754 149 Goodwill impairment - (109 037) 0 (109 037) Result from entities in equity method (196 029) - - (196 029) Other - 307 308 407 308 714 Result from operational activities 7 967 151 (1 052 563) (59 213) 6 855 375 Financial result (1 554 472) (492 497) (185 087) (2 232 056) Result before tax 6 412 679 (1 545 060) (244 300) 4 623 319 Income tax expense (924) 276 457 (428 616) (153 083) Net result 6 411 755 (1 268 603) (672 916) 4 470 236 EBITDA 8 279 016 2 598 424 78 094 10 955 534 June 2024 restated (in euros) Real Estate Hospitality & Tourism Holding Total Turnover 6 896 217 19 960 553 - 26 856 770 Consumed purchases and other external services (4 957 263) (14 408 811) 3 657 (19 362 417) Personal costs and charges (2 438 447) (4 457 930) (806) (6 897 183) Amortizations, impairment and provisions (302 337) (2 397 481) (116 060) (2 815 878) Current revenues 72 540 415 230 - 487 770 Current expenses (13 153) (471 014) (17 791) (501 958) Current operating income (742 443) (1 359 453) (131 000) (2 232 896) Fair value investment properties - - - - Goodwill impairment - (129 761) 0 (129 761) Result from entities in equity method (227 617) - - (227 617) Other (30 190) (27 765) (20 740) (78 695) Result from operational activities (1 000 250) (1 516 979) (151 740) (2 668 969) Financial result (2 238 875) 1 311 264 (443 035) (1 370 646) Result before tax (3 239 125) (205 715) (594 775) (4 039 615) Income tax expense (2 414) (188 602) (54 884) (245 900) Net result (3 241 539) (394 317) (649 659) (4 285 515) EBITDA (697 913) 1 010 263 (35 680) 276 670 Geographical areas Italy Baltic countries Egypt Other June 2025 (in euros) Total Turnover 9 386 472 28 226 861 13 237 726 48 213 50 899 272 Consumed purchases and other external services (7 699 148) (17 699 976) (8 740 250) 195 705 (33 943 669) Personal costs and charges (1 529 836) (2 758 711) (2 145 554) (246 386) (6 680 487) Amortizations, impairment and provisions (1 633 468) (311 865) (1 908 482) (137 307) (3 991 122) Current revenues 79 936 26 966 539 055 62 054 708 011 Current expenses (41 284) (108 564) (742 579) (2 000) (894 427) Current operating income (1 437 328) 7 374 711 239 916 (79 721) 6 097 578 Fair value investment properties - 754 149 - - 754 149 Goodwill impairment (17 036) 0 (92 001) 0 (109 037) Result from entities in equity method - - - (196 029) (196 029) Other 307 (16 268) - 324 675 308 714 Result from operational activities (1 454 057) 8 112 592 147 915 48 925 6 855 375 Financial result (758 423) (1 639 252) 303 619 (138 000) (2 232 056) Result before tax (2 212 480) 6 473 340 451 534 (89 075) 4 623 319 Income tax expense (30 151) (924) 334 600 (456 608) (153 083) Net result (2 242 631) 6 472 416 786 134 (545 683) 4 470 236 EBITDA 196 447 8 424 457 2 148 398 186 232 10 955 534 June 2024 restated (in euros) Italy B altic countries Egypt Other Total Turnover 7 675 030 6 896 217 12 285 523 - 26 856 770 Consumed purchases and other external services (6 424 246) (4 994 774) (8 427 943) 484 546 (19 362 417) Personal costs and charges (1 562 318) (2 438 447) (2 594 784) (301 634) (6 897 183) Amortizations, impairment and provisions (1 447 255) (302 337) (950 226) (116 060) (2 815 878) Current revenues 414 185 72 540 - 1 045 487 770 Current expenses (44 480) (13 153) (427 669) (16 656) (501 958) Current operating income (1 389 084) (779 954) (115 099) 51 241 (2 232 896) Fair value investment properties - - - - - Goodwill impairment (17 036) 0 (112 725) 0 (129 761) Result from entities in equity method - - - (227 617) (227 617) Other (28 045) (36 940) (13 992) 282 (78 695) Result from operational activities (1 434 165) (816 894) (241 816) (176 094) (2 668 969) Financial result (850 925) (2 306 448) 2 286 247 (499 520) (1 370 646) Result before tax (2 285 090) (3 123 342) 2 044 431 (675 614) (4 039 615) Income tax expense 167 090 (2 414) (186 383) (224 193) (245 900) Net result (2 118 000) (3 125 756) 1 858 048 (899 807) (4 285 515) EBITDA 30 126 (514 557) 821 135 (60 034) 276 670 Non-current assets Operating segments Real Estate Hospitality & Tourism Holding June 2025 (in euros) Total Goodwill 69 134 591 32 824 736 - 101 959 327 Intangible assets 93 064 5 897 910 324 831 6 315 805 Tangible assets 7 462 262 104 689 394 32 373 112 184 029 Investments properties at fair value 42 505 198 271 725 - 42 776 923 Rights of use 384 401 574 183 364 105 1 322 689 December 2024 (in euros) Real Estate Hospitality & Tourism Holding Total Goodwill 69 134 591 35 460 543 - 104 595 133 Intangible assets 98 277 5 933 070 430 161 6 461 508 Tangible assets 7 594 744 111 490 188 33 790 119 118 722 Investments properties at fair value 44 210 000 300 686 - 44 510 686 Rights of use 513 397 599 787 392 125 1 505 309 Geographical areas June 2025 (in euros) Italy Baltic countries Egypt Other Total Goodwill 9 156 164 69 071 888 23 668 573 62 702 101 959 327 Intangible assets 79 677 93 064 2 064 614 4 078 450 6 315 805 Tangible assets 57 330 478 7 462 262 47 358 916 32 373 112 184 029 Investments properties at fair value - 42 505 198 271 725 - 42 776 923 Rights of use 574 183 384 401 - 364 105 1 322 689 December 2024 (in euros) Italy Baltic countries Egypt Other Total Goodwill 9 173 200 69 071 888 26 287 342 62 702 104 595 133 Intangible assets 126 221 98 277 2 078 397 4 158 613 6 461 508 Tangible assets 58 566 021 7 594 744 52 924 167 33 790 119 118 722 Investments properties at fair value - 44 210 000 300 686 - 44 510 686 Rights of use 599 787 513 397 - 392 125 1 505 309 Cash and cash equivalents Operating segments June 2025 (in euros) Real Estate Hospitality & Tourism Holding Total Banking and postal deposit accounts 3 553 426 8 004 683 183 609 11 741 718 Cash on hand 18 260 290 414 514 309 188 Total 3 571 686 8 295 097 184 123 12 050 906 December 2024 (in euros) Real Estate Hospitality & Tourism Holding Total Banking and postal deposit accounts 4 329 782 5 330 415 286 470 9 946 667 Cash on hand 13 990 290 729 289 305 008 Total 4 343 772 5 621 144 286 759 10 251 675 Geographical areas June 2025 (in euros) Italy Baltic countries Egypt Other Total Banking and postal deposit accounts 5 604 445 3 557 578 2 055 869 523 826 11 741 718 Cash on hand 27 628 18 260 263 230 70 309 188 Total 5 632 073 3 575 838 2 319 099 523 896 12 050 906 December 2024 (in euros) Italy Baltic countries Egypt Other Total Banking and postal deposit accounts 3 259 824 4 329 841 1 872 324 484 678 9 946 667 Cash on hand 11 447 13 990 279 502 69 305 008 Total 3 271 271 4 343 831 2 151 826 484 747 10 251 675 Financial liabilities Operating segments Real Estate Hospitality & Tourism Holding June 2025 (in euros) Total Bonds issues 30 091 157 10 027 334 953 096 41 071 587 borrowing from credit institutions. 11 017 843 23 327 595 8 797 34 354 235 Other Loans and similar debts 631 065 8 318 586 3 171 724 12 121 375 Financial debts 41 740 065 41 673 515 4 133 617 87 547 197 Lease liabilities 408 802 579 210 376 279 1 364 291 Total 42 148 867 42 252 725 4 509 896 88 911 488 non current 34 346 037 38 699 654 3 507 003 76 552 694 current 7 802 830 3 553 071 1 002 893 12 358 794 December 2024 (in euros) Real Estate Hospitality & Tourism Holding Total Bonds issues 30 155 264 9 777 628 953 096 40 885 988 borrowing from credit institutions. 17 827 547 23 973 914 6 883 41 808 344 Other Loans and similar debts 631 065 8 568 309 3 598 309 12 797 683 Financial debts 48 613 876 42 319 851 4 558 288 95 492 015 Lease liabilities 532 387 611 813 401 859 1 546 059 Total 49 146 263 42 931 664 4 960 147 97 038 074 non current 26 730 583 39 197 900 3 733 661 69 662 144 current 22 415 680 3 733 764 1 226 487 27 375 931 Geographical areas June 2025 (in euros) Italy Baltic countries Egypt Other Total Bonds issues 10 027 334 30 091 157 - 953 096 41 071 587 borrowing from credit institutions. 23 327 595 11 017 843 99 034 8 797 34 453 269 Other Loans and similar debts 4 613 144 1 350 997 - 6 058 200 12 022 341 Financial debts 37 968 073 42 459 997 99 034 7 020 093 87 547 197 Lease liabilities 579 210 408 802 - 376 279 1 364 291 Total 38 547 283 42 868 799 99 034 7 396 372 88 911 488 non current 34 994 212 34 346 037 99 034 7 113 411 76 552 694 current 3 553 071 8 522 762 0 282 961 12 358 794 December 2024 (in euros) Italy Baltic countries Egypt Other Total Bonds issues 9 777 628 30 155 264 - 953 096 40 885 988 borrowing from credit institutions. 23 960 258 17 827 547 13 656 6 883 41 808 344 Other Loans and similar debts 2 692 930 3 495 179 26 715 6 582 860 12 797 684 Financial debts 36 430 816 51 477 990 40 371 7 542 839 95 492 016 Lease liabilities 611 813 532 387 - 401 859 1 546 059 Total 37 042 629 52 010 377 40 371 7 944 698 97 038 075 non current 35 217 277 26 730 583 26 715 7 687 568 69 662 143 current 1 825 352 25 279 794 13 656 257 128 27 375 930 Notes to the consolidated statements of financial position Goodwills ACCOUNTING PRINCIPLES (IFRS 3 and IAS 36) Business combinations are accounted for using the purchase method as defined in IFRS 3 (revised). Under this method, the identifiable assets acquired and liabilities and contingent liabilities assumed must be recognized at their fair value at the acquisition date. Goodwill represents the difference between (1) the consideration transferred and the amount of any non-controlling interest in the acquired company, and (2) the fair value of identifiable assets, liabilities and contingent liabilities acquired. Where this results in a negative difference (negative goodwill), it is recognized immediately in the income statement. The Group applies the partial goodwill method. For each business combination, the amount of any non-controlling interests in the acquired company (minority interests) may initially be measured either on the basis of their fair value, or on the basis of their proportionate share of revalued net assets. The Group may adjust the values initially assigned in the initial and provisional accounting of a business combination within 12 months of the acquisition date. Goodwill is allocated to cash-generating units (CGUs) or groups of CGUs. In accordance with IAS 36, the Group performs impairment tests whenever there is an indication that goodwill may be impaired, and at least once a year. The annual test is mandatory for assets with indefinite useful lives and goodwill only. Goodwill is tested at the level of Cash-Generating Units (CGUs), which are homogeneous entities generating cash flows that are largely independent of the cash flows generated by other CGUs. PREATONI Group's CGUs are : Hotel business: "the hotel", which may be run by a single entity (Domina Milano Fiera at Novate, Zagarella Domina Sicily at PK Sicily) or several entities (Sharm El Sheikh at Nile and Sicot). Real estate development: the Pro Kapital group. These valuations are based on the discounted cash flow (DCF) method. The method consists of three stages: Stage 1: estimation of cash flows likely to be generated in the future by operations. These cash flows are estimated on the basis of business plans drawn up in each country where the Group has management activities, on its own behalf. Stage 2: discounting of cash flow forecasts, together with the estimated value of activities at the end of the forecast period (terminal value) at an appropriate rate. Stage 3: obtain a value for the entity equal to the value of the business, plus any gain resulting from the difference between the effective tax payable on sale via a disposal of shares and the deferred tax recognized in the balance sheet under IAS 12 Impairment testing consists of comparing the net book value with the recoverable value, as explained above, and recognizing an impairment loss in the income statement when the net book value of the assets tested exceeds the recoverable value. In the event of impairment of a CGU to which goodwill is allocated, the impairment loss is recognized: First, by reducing the carrying amount of goodwill allocated to the CGU; then Where appropriate, by reducing the carrying amount of the CGU's other assets. Impairment losses recognized on goodwill are definitive and cannot be reversed. Change in carrying amount In euros Gross amount Accumulated impairment Carrying Amount December 2024 168 361 497 (63 766 364) 104 595 133 Changes in scope of consolidation - - - Impairment loss - (109 037) (109 037) Translation adjustments (3 370 421) 843 652 (2 526 769) Other - - - June 2025 164 991 076 (63 031 749) 101 959 327 In June 2025 December 2024 En euros Real Estate Hospitality & Tourism Total Real Estate Hospitality & Tourism Total Egypt resort - 13 954 148 13 954 148 - 15 441 432 15 441 432 Egypt time share - - 0 - - 0 Italy - 5 711 174 5 711 174 - 5 711 174 5 711 174 Baltic countries 69 071 888 - 69 071 888 69 071 888 - 69 071 888 Dubai - - 0 - - 0 Other 62 703 - 62 703 62 703 - 62 703 Goodwill on operating companies 69 134 591 19 665 322 88 799 913 69 134 591 21 152 606 90 287 197 Egypt - 9 714 424 9 714 424 - 10 845 909 10 845 909 Italy - 3 444 990 3 444 990 - 3 462 026 3 462 026 Goodwills from deferred taxes 0 13 159 414 13 159 414 0 14 307 935 14 307 935 Total 69 134 591 32 824 736 101 959 327 69 134 591 35 460 542 104 595 133 In the first half of 2025, the change in this item is the result of translation differences on the Egyptian currency. Impairment No impairment loss was recognized as of June 30, 2025. Intangible fixed assets ACCOUNTING PRINCIPLES (IAS 38) Intangible assets are non-monetary assets with no physical substance. They must be identifiable (i.e. separable from the acquired entity or resulting from legal or contractual rights), controlled by the company as a result of past events, and give rise to future economic benefits. IAS 38 states that intangible assets should only be amortized if they have a finite useful life. Intangible assets with no finite useful life are not amortized but are tested for impairment annually (IAS 36), or whenever there is an indication that they may be impaired. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The useful life of the Domina brand is indefinite; an impairment test is carried out annually, comparing the net book value with the royalty income received. Usufruct rights relate to the Time-share park acquired by Sunny Properties, with a useful life of 75 years. The annual amortization rate is 1.2%. Other intangible assets include licenses, software and websites. These assets are amortized over 3 to 5 years. Amortization of intangible assets is included in "Amortization, depreciation and provisions" in recurring operating income. In euros Trademarks Commercial goodwill Other intangible assets Total Gross amount December 2024 4 419 169 2 296 859 2 101 512 8 817 540 Changes in scope of consolidation 0 0 0 - Acquisitions 208 2 579 22 416 25 203 Disposals 0 0 (16 235) (16 235) Translation adjustments 29 583 0 (1 179) 28 404 Reclassifications 0 0 0 - Other 0 0 251 776 251 776 June 2025 4 448 960 2 299 438 2 358 290 9 106 688 Accumulated depreciation and impairment December 2024 (626 944) (228 592) (1 500 496) (2 356 032) Changes in scope of consolidation 0 0 0 - Depreciation and impairment 0 (15 330) (163 326) (178 656) Disposals 0 0 0 - Translation adjustments (4 624) 0 205 (4 419) Reclassifications (63 773) 0 63 773 0 Other 0 0 (251 776) (251 776) June 2025 (695 341) (243 922) (1 851 620) (2 790 883) Carrying Amount December 2024 3 792 225 2 068 267 601 016 6 461 508 June 2025 3 753 619 2 055 516 506 670 6 315 805 Tangibles assets ACCOUNTING PRINCIPLES (IAS 16) Tangibles assets are initially measured at acquisition or production cost. Subsequent to initial recognition, tangibles assets, with the exception of land, are depreciated on a straight-line basis over the following average useful lives: Buildings 33 to 50 years Infrastructure 8 to 10 years Fixtures and fittings 5 to 8 years Office furniture and transport vehicles are depreciated over 5 to 8 years. Where there is an indication of impairment at the year-end, an impairment test is performed and, if necessary, the carrying amount of the property is written down to its recoverable amount. Plant, Other fixtures, Tangible In euros Lands Buildings equipment and furniture, fixed assets Total machinery transport, office equipment in progress Gross amount December 2024 47 519 300 97 127 378 11 942 198 10 400 862 895 684 167 885 422 Changes in scope of consolidation 0 0 0 0 0 0 Goodwill allocation 0 0 0 0 0 0 Acquisitions 0 58 843 123 245 383 553 0 565 641 Disposals 0 (239 541) 0 (1 641) 0 (241 182) Translation adjustments (3 376 315) (1 360 842) (591 593) (394 105) (77 895) (5 800 750) Reclassifications 0 0 0 0 0 0 Other 0 0 20 457 0 0 20 457 June 2025 44 142 985 95 585 838 11 494 307 10 388 669 817 789 162 429 588 Accumulated depreciation and impairment December 2024 (29 312 774) (10 144 425) (9 019 080) (290 421) (48 766 700) Changes in scope of consolidation 0 0 0 0 - Depreciation and impairment (1 290 040) (408 615) (511 799) 0 (2 210 454) Disposals 11 062 0 1 448 0 12 510 Changes in fair value 0 0 0 0 - Translation adjustments 156 157 186 731 360 198 27 973 731 059 Reclassifications 0 0 0 0 - Other 392 (19 348) 6 982 0 (11 974) June 2025 0 (30 435 203) (10 385 657) (9 162 251) (262 448) (50 245 559) Carrying Amount December 2024 47 519 300 67 814 604 1 797 773 1 381 782 605 263 119 118 722 June 2025 44 142 985 65 150 635 1 108 650 1 226 418 555 341 112 184 029 The net change in this item is mainly explained by depreciation for the period and the impact of exchange rate fluctuations. Investment property at fair value ACCOUNTING PRINCIPLES (IAS 40) Investment properties are real estate assets held to earn rental income and/or for capital appreciation. Investment property also includes land and buildings held on a longer-term basis for future use as investment or other property. When acquired, investment properties are recorded on the balance sheet at acquisition cost, including costs and transfer taxes. After this initial recognition, investment property is recognized at fair value, determined in accordance with the valuation rules set out in IFRS 13: Based on prices quoted on an active market (level 1); Based on internal valuation techniques using standard mathematical calculation methods incorporating observable market data (forward prices, yield curves, etc.), the valuations derived from these models are adjusted to take account of a reasonable change in the Group's or counterparty's credit risk (level 2); Using internal valuation techniques incorporating parameters estimated by the Group in the absence of observable data (level 3). The fair values of investment properties have been classified in level 3: they are determined annually by independent appraisers, either by direct comparison with transactions carried out on equivalent assets in kind and location, or by the discounted cash flow method. Changes in the fair value of investment properties are recognized in "Income from operating activities". When the future use of the building changes, it is reclassified in the appropriate asset item and follows the accounting rules of the item to which it is reclassified. The Group's investment properties consist of land held for the construction of real estate projects intended for sale. When a project, or part of a project, enters an active development phase with a view to being marketed, the building or share concerned is reclassified under inventories. The Group considers that a project has entered the active development phase when one or more of the following events occur: Signature of a reservation agreement with the customer(s); Application to the local municipality for a building permit; Signing of a development loan agreement; Signature of a construction contract. In euros June 2025 December 2024 Balance opening 44 510 686 40 557 677 Changes in scope of consolidation - - Acquisitions 141 049 570 375 Disposals 0 0 Changes in fair value 754 149 1 129 904 Reclassifications (2 600 000) 2 335 000 Translation adjustments (28 961) (82 270) Other 0 0 Balance closing 42 776 923 44 510 686 The buildings are land intended for real estate development. They are valued annually (December 31, 2024) by an independent expert, and this valuation is carried forward to June 30, 2025. The change in fair value recorded on June 30, 2025 relates to the "Blue Marina" land in Riga. It was carried out in order to separate the latter from the Kiversala project and transfer it to inventory for an amount of 2,600,000 euros. The breakdown of the fair value by property is as follows: Property (In thousands of euros) June 2025 December 2024 Variation Kristiine City 20 196 479 20 100 000 96 479 Ulemiste 5 4 200 000 4 200 000 0 Kliversala 11 909 029 13 743 180 (1 834 151) City Oasis 3 830 910 3 820 000 10 910 Brivibas 2 368 780 2 347 000 21 780 Other buildings 271 725 300 506 (28 781) Total 42 776 923 44 510 686 (1 733 763) Investments in associates As of June 3, 2025, the only entity accounted for by the equity method was Preatoni Real Estate DMCC The amount of the investments in associates was reduced to zero, with the recognition of a risk provision of 574,765 euros compared with 773,424 euros at the previous December 31. Summarized data for assets, liabilities and income at 100% are as follows: Figures at 100% and in euros June 2025 December 2024 Current assets 82 869 877 93 341 028 Non-current assets 9 558 262 10 881 306 Current liabilities 79 562 473 86 066 496 Non-current liabilities 14 847 615 19 702 685 Shareholders' equity (1 981 949) (1 546 847) Net income (675 961) (784 885) Financial assets ACCOUNTING POLICIES (IFRS 9) Financial assets comprise non-current financial assets, current assets representing operating receivables, debt securities or marketable securities, including derivatives and cash. At the acquisition date, the Group classifies the financial assets in one of the accounting categories provided for under IFRS 9, based on the instrument's characteristics and business model. PREATONI Group's financial assets are classified under the following two categories: Assets measured at amortized cost Financial assets are measured at amortized cost when recovery is assured by the collection of contractual cash flows (repayment of principal and interest on the principal outstanding). These assets correspond to receivables from associates, operating financial assets, other loans and receivables and trade receivables. They are initially recognized at fair value, then at amortized cost calculated using the effective interest rate method. In accordance with IFRS 9, these assets are written down by an amount corresponding to expected credit losses. Depending on the nature of the asset, the impairment loss is recognized either in recurring operating income or in net financial income/expense. Assets measured at fair value through profit or loss This category includes : Financial assets whose holding objective does not correspond either to the collection of contractual cash flows, or to a disposal of these assets, and for which the expected cash flows do not correspond solely to principal repayments and interest payments; Assets designated at fair value by option. This mainly concerns the treasury mutual fund portfolio, whose management and performance are based on fair value. Changes in the value of these assets are recorded under "Other financial income and expenses ". The Group does not hold any financial assets measured at fair value through other comprehensive income. The Group's financial assets comprise : Investments in non-consolidated entities (equity instruments) These investments are classified as equity instruments measured at fair value through profit or loss. In accordance with IFRS 9, equity instruments are recognized at initial cost when measured at fair value through profit or loss. Transaction costs are then recognized in the income statement at the acquisition date. At each closing date, the Group's investments in non-consolidated companies are measured and recognized at fair value. Fair value is determined on the basis of net book value. Other non-current financial assets. They comprise receivables and loans from associates and non-consolidated investments, loans and advances to third parties (related parties) and guarantee deposits. Other financial assets are measured at amortized cost. Impairment losses are calculated on the basis of expected losses on individual assets as follows: Assets whose credit risk has not deteriorated significantly are written down to the amount of expected losses over a 12-month horizon. Assets whose credit risk has increased significantly are written down to the extent of expected losses over their entire useful life. Fair value IFRS 13 establishes a three-level fair value classification for inputs to fair value measurement techniques for all financial assets and liabilities. Fair value is determined either : Based on prices quoted on an active market (level 1); Based on internal valuation techniques using standard mathematical calculation methods incorporating observable market data (forward prices, yield curves, etc.), the valuations derived from these models are adjusted to take account of a reasonable change in the Group's or counterparty's credit risk (level 2); Using internal valuation techniques incorporating parameters estimated by the Group in the absence of observable data (level 3). The fair value of financial instruments held by the Group measured at amortized cost generally approximates their carrying amount. Equity instruments As of June 30, 2025, the securities of Hypermarket (€736,639), a non-consolidated subsidiary of Svalbork, are recorded as equity instruments. The amount presented on the line "Transfers and other movements" relates to the securities of the non-consolidated subsidiary Colosseum Real Estate Vilnius, which was liquidated in the first half of 2025. In euros Equity instruments at FV through income statement December 2024 1 024 119 Changes in scope of consolidation Acquisitions Changes in fair value posted to income statement 3 272 Disposals Reclassifications Translation adjustments June 2025 1 027 391 Other financial assets In euros June 2025 December 2024 Loans and receivables from investments Deposits Other non current financial assets 2 335 301 496 106 106 688 1 911 059 530 712 37 605 Total 2 938 095 2 479 376 Current 0 0 Non current Loans and receivables mainly include: 2 938 095 2 479 376 Loans granted by Preatoni Swiss Holding to Preatoni Real Estate DMCC: 1,149,062 euros as of June 30, 2025, compared to 1,141,918 euros at the end of 2024. A receivable from the related party Domina Rus, arising from the timeshare business: 1,183,023 euros as of June 30, 2025, compared with 769,140 euros at the end of 2024. Inventories ACCOUNTING PRINCIPLES (IAS 2) Inventories include those relating to the Hotels & Tourism business and those relating to the Real Estate Development business. Hotels & Tourism inventories These are essentially inventories of consumables, valued at purchase cost plus any acquisition costs. Provisions for depreciation of these inventories are determined on the basis of net realizable value, i.e. the amount expected to be derived from the use of the inventory in the normal course of business. Real estate development inventories Land for real estate development projects is initially recognized as investment property. They are transferred to inventories when the project enters the development phase (see section 5.4). The cost of each real estate project comprises the value of the land transferred from investment property, design and construction costs, and all directly attributable costs, including financial charges relating to the direct financing of the project. Property Development inventories comprise : Completed projects available for sale, and Work in progress. Completed projects are derecognized from inventory when the assets are sold. The cost of the asset and the sale proceeds are recognized in the income statement over the same period. When the estimated realizable value is lower than the net book value, an impairment loss is recognized based on the difference between these two amounts. Realizable value corresponds to the estimated selling price based on market prices, less the estimated costs of completion and the costs necessary to complete the sale. Property development inventories are classified as current assets when they are: Realized, sold or consumed during the normal operating cycle ; Held primarily for trading purposes. In euros June 2025 December 2024 Consumables and miscellaneous products 932 941 1 055 279 Real estate - Work in progress 40 405 493 54 657 645 Uus Kindrali, Tallinn 13 058 799 8 948 174 Kalaranna Kvartal, Tallinn 147 631 24 906 619 Šaltinių Namai (Attico), Vilnius 17 001 912 13 405 565 Naugarduko, Vilnius 6 462 650 6 462 250 Blue Marina, Riga 2 600 000 0 Prepayments for inventories 1 134 501 935 037 Real estate - completed properties 16 538 791 2 198 834 Kindrali Majad, Tallinn 171 706 193 008 Kalaranna kvartal, Tallinn 15 418 484 899 380 River Breeze, Riia 0 42 153 Šaltinių Namai (Attico), Vilnius 948 601 1 064 293 Total 57 877 225 57 911 758 Of the projects under development and completed, the following were sold as of June 30, 2025: 61% of the Kalaranna project in Tallinn (55% as of December 31, 2024); 60% of the Uus Kindrali project (Tallinn) (50% as of December 31, 2024); 34% of the Saltniu Namai project (Vilnius) (29% as of December 31, 2024). Trade receivables ACCOUNTING POLICIES (IFRS 9) Trade receivables are measured at amortized cost, less allowances for expected credit losses. Impairment losses are measured in accordance with the simplified method set out in IFRS 9; potential losses are recognized over the life of the receivable, based statistically on historical losses. To determine impairments based on expected non-payment rates, Group entities use non-payment risk matrices adapted to their local realities, with regard to non-payment rates observed in the recent past on receivables with a similar credit risk profile (see note 9.2 Counterparty risks). In euros June 2025 December 2024 Trade receivables Impairment of trade receivables 15 868 241 (7 014 149) 16 497 861 (6 006 560) Total 8 854 092 10 491 301 "Trade receivables" item breaks down as follows by activity: June 2025 December 2024 In euros Gross Impairment Net Gross Impairment Net Real Estate 768 324 0 768 324 807 121 0 807 121 Hospitality & Tourism of which time-share 14 018 695 (5 932 927) 8 085 768 14 600 751 (4 925 338) 9 675 413 Holding 1 081 222 (1 081 222) 0 1 089 989 (1 081 222) 8 767 Total 15 868 241 (7 014 149) 8 854 092 16 497 861 (6 006 560) 10 491 301 Real estate customers are private individuals. Sales are secured by advance payments. The sold property remains the property of Pro Kapital until the debt has been paid in full by the customer. The Hotels & Tourism business breaks down as follows between Hotels and Time-share, and by country: June 2025 December 2024 In euros Gross Impairment Net Gross Impairment Net Egypt - Time-share 1 061 044 (692 067) 368 977 665 847 (537 827) 128 020 Egypt - Hospitality 7 247 266 (3 646 733) 3 600 533 8 510 763 (2 753 314) 5 757 449 Italy - Time-share 4 273 319 (1 087 490) 3 185 829 3 663 491 (1 080 939) 2 582 552 Italy - Hospitality 1 216 521 (506 637) 709 884 1 591 083 (553 258) 1 037 825 Other - Hospitality 220 546 0 220 546 169 567 0 169 567 Total 14 018 695 (5 932 927) 8 085 768 14 600 751 (4 925 338) 9 675 413 NB: for the above presentation, the entities PK Sicily, Unupuntotre and Domina Srl are included in the line "Italy - Time share". Egypt Time-share Time-share customers in Egypt are private individuals. Upon signing the contract, the customer pays a deposit of 30%; the remaining 70% is collected within a contractually agreed period of up to 18 months The gross outstanding amount consists of receivables prior to July 1, 2022 (706,058 euros) and invoices to be issued. Egypt Hospitality The "Egypt Hospitality" line includes in gross receivables: 1,834,571 euros receivables that have been fully written off for Sicot; 5,412,695 euros receivables for Nile. As at December 31, 2024, Nile's customers are: 35% of the balance is owed by tour operators, whose average payment term is 30 days; 61% are property owners (individuals or companies) in Sharm El Sheik (villas, shops, apartments) to whom the entity bills for various services: electricity, maintenance, etc. Billing varies depending on the service sold (annual, biannual, etc.). Italy Time-share The time-share business in Italy has two categories of customers: Time-share "buyers", mainly private individuals, whose receivables are registered with PK Sicily Zagarella and Unopuntotre. Contracts may be settled immediately or over one or two financial years, depending on the terms agreed with the customer Time-share owners whose properties are placed through an agent (in this case Domina Srl) and who are charged a commission for this service. These owners are private individuals and companies. Italy Hospitality Hospitality customers are mainly tour operators. The payment terms granted to them are based on the final customer's payment (30% on reservation and 70% generally 30 days before the event). Information on the age of receivables is provided in Note 9.2 "Counterparty risk". Other current assets In euros June 2025 December 2024 Other receivables 4 966 583 2 538 633 Tax and social security receivables 1 291 251 1 458 855 Prepaid expenses 930 848 713 702 Impairement of other receivables 0 0 Total 7 188 682 4 711 190 The balance of other receivables includes: Advances and deposits paid to suppliers (including charter companies): 1,925,910 euros; Accrued interest on loans: 253,060 euros. Tax and social security receivables mainly comprise VAT credits. Cash and cash equivalents ACCOUNTING PRINCIPLES (IAS 7) Cash and cash equivalents include cash on hand and short-term investments - demand deposits - which are considered liquid, convertible into a known amount of cash, subject to an insignificant risk of change in value and held for the purpose of meeting short-term cash commitments. Bank overdrafts are included in current borrowings. Cash and cash equivalents consist of the following: In euros June 2025 December 2024 Banking deposit accounts Cash on hand 11 741 719 309 187 9 946 667 305 008 Total 12 050 906 10 251 675 Bank accounts are mainly denominated in euros, Swiss francs, US dollars and Egyptian pounds. Shareholders' equity PREATONI Group's share capital amounts to 324,979,392 euros, divided into 8,807,035 fully paid-up shares with a par value of 36.9 euros each. A share premium of 36,108,843.5 euros was recognized as a result of the capital reduction carried out in 2024. Currency translation adjustments arise from the translation into euros of subsidiaries' financial statements prepared in currencies other than the euro. Provisions ACCOUNTING PRINCIPLES (IAS 37) In accordance with IAS 37 "Provisions, contingent liabilities and contingent assets", a provision is recognized when the Group has a present legal or constructive obligation to a third party as a result of past events, and it is probable or certain that the obligation will result in an outflow of resources to the third party. Provisions maturing in more than 12 months are discounted whenever the effect of discounting is material. As of June 30, 2025, total provisions amounted to 1,580,081 euros, including 957,870 euros for Egyptian entities. in euros December 2024 Allowances Reversals Changes in scope of consolidation Translation adjustments Reclassific Other June 2025 ations Provisions for litigations Provisions for charges Risks provisions 715 001 584 479 773 422 - - - (134 850) (50 177) (198 657) - - - (56 264) (52 873) - - - - - - - 523 887 481 429 574 765 Total Provisions 2 072 902 0 (383 684) 0 (109 137) 0 0 1 580 081 Current Non-current 2 072 902 1 580 081 Over the period, the change in this item is explained by: A reversal of the provision for risks of 198,657 euros on the equity investment in Preatoni Real Estate DMCC; A reversal of provisions for litigation in Egypt of 134,850 euros, following payments in three cases in the first half of 2025; A currency effect of -109,137 euros. Current and non-current financial liabilities ACCOUNTING POLICIES (IFRS 9) Financial liabilities include bonds, loans from banks and other financial institutions, amounts due to Ernesto PREATONI and bank overdrafts; their measurement and recognition are defined by IFRS 9 "Financial Instruments". Financial liabilities are measured at amortized cost using the effective interest rate method. On initial recognition, issue premiums/discounts, redemption premiums/discounts and issuance costs are recorded as an increase or decrease in the nominal value of the borrowings concerned. These issue premiums and costs are taken into account in calculating the effective interest rate and are then recognized in the income statement on an actuarial basis over the life of the loan. Financial liabilities are broken down in the statements of financial position into non-current and current liabilities. Fair value IFRS 13 establishes a three-level fair value classification for inputs to fair value measurement techniques for all financial assets and liabilities. Fair value is determined either : Based on prices quoted on an active market (level 1) ; Based on internal valuation techniques using standard mathematical calculation methods incorporating observable market data (forward prices, yield curves, etc.), the valuations derived from these models are adjusted to take account of a reasonable change in the Group's or counterparty's credit risk (level 2); Using internal valuation techniques incorporating parameters estimated by the Group in the absence of observable data (level 3). The fair value of financial instruments held by the Group measured at amortized cost generally approximates their carrying amount. Changes in debt The change in debt presented below does not include lease liabilities as defined by IFRS 16. In euros December 2024 Increase Decrease Translation adjustments Changes in scope of consolidation Reclassifications June 2025 Gross amounts Bonds issues borrowing from credit institutions. Other Loans, similar debts and bank overdrafts Subtotal Accrued interets Bonds issues borrowing from credit institutions. Other Loans and similar debts Subtotal 37 916 994 1 517 915 (1 659 661) 0 0 (1 085 286) 36 689 962 41 028 613 10 388 770 (17 821 202) (581) 0 0 33 595 600 10 764 115 118 273 (217 677) 57 812 (227 500) (397 908) 10 097 115 89 709 722 12 024 958 (19 698 540) 57 231 (227 500) (1 483 194) 80 382 677 2 968 994 1 625 874 (1 298 529) 0 0 1 085 286 4 381 625 779 731 57 434 (78 530) 0 0 0 758 635 2 033 569 30 668 0 96 0 (40 073) 2 024 260 5 782 294 1 713 976 (1 377 059) 96 0 1 045 213 7 164 520 Total 95 492 016 13 738 934 (21 075 599) 57 327 (227 500) (437 981) 87 547 197 Current Non-current 26 934 157 68 557 859 12 035 084 75 512 113 Breakdown of debt by maturity Gross amounts and accrued interests (in euros) Less than 1 year 1 - 5 years Beyond 5 years June 2025 Bonds issues borrowing from credit institutions. Other Loans, similar debts and bank overdrafts 6 416 945 2 320 810 3 297 329 34 654 642 25 504 931 8 458 609 0 6 528 494 365 437 41 071 587 34 354 235 12 121 375 Total 12 035 084 68 618 182 6 893 931 87 547 197 Main sources of financing Bond issues The bonds issuers are AS Pro KapitaL for the financing of the real estate development activity and Domina Vacanze Holding for the financing of the Milan hotel and the Zagarella resort.