Annual Report 2025

Chairman and Chief Executive Statements 3

The Board of Directors 7

Remuneration Committee Report 9

Corporate Governance Report 12

Corporate Social Responsibility Report 15

Directors' Report 17

Statements of Directors' Responsibilities 21

INDEPENDENT AUDITOR'S REPORT 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 30

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 32

CONSOLIDATED STATEMENT OF CASH FLOWS 33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 34

The 2025 financial year was our fourth year of operating under full-scale war. It was also, by almost every measure, one of the most challenging periods in the Company's history. Aerial attacks intensified significantly during the year, becoming both more frequent and more severe. Many nights involved hundreds of drones and missiles, with peak levels exceeding 800 in a single night - levels not seen in the earlier phases of the war. Electricity outages at our factories reached up to 14 hours per day, making conventional production scheduling effectively impossible. More than one in three of our employees was replaced within a single year - staff turnover reached 43% - as mobilisation and migration continued to reshape Ukraine's workforce. This year, the number of employees with disabilities in our workforce doubled compared to 2024. This reflects the demographic reality of wartime Ukraine. It also reflects a deliberate decision by management to build operations more inclusively around the people of Ukraine in the context of the ongoing war. The Board considers workplace inclusivity a strategic priority, not a compliance exercise, and we intend to develop this further. At the same time, the national dairy herd has contracted by approximately 38% over four years of war. Every litre of raw milk we process depends on independent farming families. Many of these farms are now severely understaffed, some have suffered direct damage, and in many cases those who previously ran them are now either at the front line or abroad. As this report is published, broader geopolitical developments, including the escalation of conflict in the Middle East, are contributing to renewed pressure on fuel prices. Trading in FY2026 to date has been challenging.

As a Board, we want to start with what matters most: our people. We lost colleagues this year. Our colleagues lost family members, lost friends, lost homes, and lost any sense of normal life. We feel this loss every day. As a Board, we are acutely aware of what the past year has required of our employees. We understand what it means to keep a production line running through air raid alarms; to manage procurement while the supplier base is steadily losing farmers to mobilisation; and to rebuild an HR function when a third of the workforce turns over within twelve months - all while maintaining European food safety certification, because those standards do not pause for war. None of what our employees have done is fully captured in the financial statements. It is visible only to those who have lived through it. On behalf of the Board: we see you. We know what it has cost. We are honoured to work alongside people of this character. The same is true of our farming families and suppliers, who continue to operate under conditions of sustained pressure - without reliable electricity, in some cases on land still being cleared of mines, and with reduced workforces. And yet they continue to supply. We are equally grateful to our logistics partners, distributors, and Ukrainian consumers who continue to choose our products under conditions of sustained economic pressure. Internationally, our partners continue to work with Ukrainian suppliers despite logistical complexity and uncertainty. That trust is not taken for granted.

We would like to thank Ukrainian consumers who continue to choose our products under conditions of sustained economic pressure. That choice sustains the business - and, if I may say so, carries a deeper meaning in times such as these. Internationally, our partners continue to work with Ukrainian suppliers despite logistical complexity and uncertainty. Each order placed in these conditions represents not only commercial activity, but also a degree of trust and commitment that we do not take lightly. Export

markets remain a critical part of our resilience, and we are deeply grateful for that continued trust and support.

Our shareholders have been patient through a period that has tested patience beyond any normal limit. The Group's market valuation reflects the weight of war, debt overhang, and uncertainty that no investor takes on lightly. The Board is grateful for your continued support. We remain committed to full transparency - including the transparency of acknowledging, here, at the start of the report, that FY2026 is already presenting fresh headwinds. You will find the detail in the pages that follow.

We want to thank the Ukrainian Armed Forces and everyone who supports Ukraine. Without the people defending Ukraine, none of what follows in this report would be possible. Not the revenue figures, not the production volumes, not the employment numbers. None of it. We express our unconditional gratitude to the Armed Forces of Ukraine and to everyone serving in defence of the country. We are equally grateful to the governments, institutions, and individuals locally and internationally whose continued support keeps Ukrainian society functioning. That support is not abstract to us. It is the condition under which we operate every day.

The European Bank for Reconstruction and Development (the EBRD) has been a long-standing institutional partner of Ukrproduct and of Ukraine. We recognise the role the EBRD has played in supporting economic development over many years, including during periods of significant instability. The Group remains engaged in active and constructive discussions with the EBRD regarding the restructuring of its outstanding obligations. Our objective is to reach a solution that reflects both the economic realities in which the business operates and the long-term interests of all stakeholders. As a publicly listed company, the Group is committed to maintaining transparency in relation to its financial position and its engagement with lenders. Further detail is provided in the Directors' Report.

I want to close with something I feel strongly about as a Chairman, and which I want on the record. Our management team. This management team has run a £40 million food business through four years of full-scale war - through 800 nightly missile strikes, 14-hour blackouts, 43% annual workforce turnover, a 38% contraction in the raw material base, the near-total loss of export corridors, diesel-driven production costs, and a fast currency depreciation - at compensation levels materially below the AIM market benchmark and, indeed, by any standards. As an independent director I have served across many boards and I have worked with management teams across multiple sectors and jurisdictions. I want to say this without qualification: what this team has achieved - under these conditions, for this compensation

- is not merely good management - it is exceptional by any standard I know. The Company traces its origin to 1922, and survived the Second World War, Soviet collectivisation, the collapse of the USSR, two major civic protest movements in Ukraine, a global pandemic, and four years of full-scale invasion. Each time, the reason it survived was the same: people who refused to give up on something they believed was worth preserving. That is still the reason.

19 June 2026

FY2025 was a year of continued operational pressure, but also one in which the Group demonstrated its ability to maintain production, adapt its commercial approach and deliver revenue growth. The focus throughout the year was on keeping the business running on a day-to-day basis - maintaining production, securing raw materials, managing logistics and preserving cash - under conditions where external disruption remained constant. The operating environment required continuous adjustment of production schedules, procurement processes and workforce planning, with management focusing on maintaining stability across core operations.

A key feature of 2025 was the continued shift towards export markets and higher-margin product categories. The Group increased its export revenues, particularly into EU markets, while maintaining domestic sales despite ongoing economic pressure. Despite these challenges, the Group maintained control over its core operations and continued to operate all key production facilities.

Throughout 2025 we maintained uninterrupted production despite repeated targeting of national energy infrastructure. Investment in autonomous generation capacity, undertaken in 2023 and 2024, paid back in full this year. We continued to strengthen our raw milk supplier base through long-term contracting and prepayment arrangements, securing reliable forward coverage and supporting our farming partners through the price downturn. Export operations performed solidly, with growth into key export channels remaining stable.

On the human side, we expanded our team and invested into maintaining market competitive wages, reflecting both inflation and our determination to retain critical talent in a highly competitive labour market.

The Group's financial performance reflects the combined impact of revenue growth, cost pressures and improved cost control measures.

Revenue increased by 14% to £42.19 million, while cost of sales grew more rapidly by 18.2% to £35.41 million, putting pressure on gross margins. As a result, gross profit decreased by 4.8% to £6.78 million (FY2024: £7.12 million). Margin performance remained under pressure due to input cost inflation, including energy and logistics costs, as well as changes in product mix.

Administrative and selling & distribution expenses increased by 8.3% to £4.6 million, primarily due to higher payroll costs driven by inflation, labour shortages and employee retention initiatives. Insurance expenses also increased, reflecting a full year of coverage compared to only four months in FY2024. These policies cover key operational assets, including debt liabilities and production inventories, and form part of the Group's risk mitigation strategy in response to the ongoing war.

Other operating expenses decreased significantly to £0.3 million (FY2024: £1.8 million expense). This was primarily due to the reversal of £0.2 million related to previously blocked VAT invoices, as well as

£0.4 million in bad debt recoveries.

As a result, EBITDA increased by 54.2% to £2.6 million, with the EBITDA margin improving from 4.6% to 6.2%, indicating a recovery in core operating efficiency.

Finance costs improved significantly compared to FY2024, reflecting the absence of exceptional retrospective charges and changes in interest rates and loan structures. Total interest expense decreased by 67%, from £2.76 million to £0.91 million, primarily due to the normalisation of interest charges following a one-off retrospective deferral fee by the EBRD in December 2024. Interest expense on Tranche B of EBRD loan increased by approximately 9%, as the loan transitioned to a higher penalty rate following its principal repayment date in December 2024. Expenses related to deferred payments also increased, reflecting the expiration of preferential rates previously applied. In addition, interest on loan deferral fees increased significantly, as charges in FY2025 accrued throughout the year at 9.29%, compared to a year-end charge in FY2024.

Net foreign exchange losses widened to £1.1 million (FY2024: £0.2 million), primarily due to the depreciation of the Ukrainian Hryvnia. Consequently, the net loss after tax was reduced significantly to

£0.17 million, compared to £2.04 million in FY2024, driven by revenue growth, lower finance costs, and favourable movements in other operating items.

The Group expects to continue operating under conditions of heightened uncertainty in FY2026, with war-related risks potentially affecting operations at short notice.

Key priorities include safeguarding personnel and production facilities, ensuring business continuity, and restoring operations promptly following disruptions. Liquidity remains constrained and dependent on disciplined working capital management and continued lender support, while restructuring discussions with the EBRD are ongoing.

Capital expenditure will remain limited to essential safety and maintenance projects. The Group will continue to prioritise higher-margin product lines, secure prepayments where possible, and optimise inventory to preserve cash.

19 June 2026

The Board of Directors

As of the date of the approval of the 2025 Annual Report, the Board members are as follows:

All directors standing for re-election were duly re-elected at Annual General Meeting (AGM) on 1 August 2025. A further director, Olena Telychko, was elected following the AGM.

Independent Non-Executive Chairman

Rinat Abdrasilov is an experienced strategy professional with a strong track record in corporate governance, investor relations, strategic planning, and business transformation. He built his career in international strategy consulting, rising to Senior Partner level and advising FTSE-listed companies before transitioning into non-executive roles. Rinat has served as a board member and advisor across a broad range of organisations, including financial institutions, national infrastructure operators, property development and software development companies, government-related entities, and charitable organisations. He holds a degree in Business Administration from the American University of Central Asia, an MBA from the University of Cambridge, and multiple professional certifications in finance, project management and board governance.

Chief Executive Officer, Board Member

Oleksandr Slipchuk is responsible for the Group's overall performance and strategy implementation and is a founder of Ukrproduct Group. He studied at Far-Eastern High Engineering Marine School in USSR and graduated as a maritime navigator in 1989. Together with Sergey Evlanchik, Oleksandr established the securities house Alfa-Broker in 1994, developed the equity trading business and acquired initial stakes in the companies that later became part of Ukrproduct Group. Later in 1998, Oleksandr took on the executive positions at the Molochnik and the Starokonstantynivsky Dairy plants, Ukrproduct's two main operating assets.

Executive Director, Board Member

Sergey Evlanchik received his Master's degree at Oxford University, where he studied Business Administration at Said Business School. Together with Oleksandr Slipchuk, he established the equity trading group, Alfa-Broker in 1994 and after the downturn of equity markets in 1998, Mr Evlanchik refocused his activities on business development in the industrial sector of Ukraine, particularly within the dairy industry, where he joined the companies that would subsequently form Ukrproduct Group in 2004. Sergey then led the Group to its successful listing on the AIM market of the London Stock Exchange in 2005. In 2011 under the leadership of Sergey Evlanchik the Group secured debt finance with EBRD focused on energy and production efficiency upgrade of the existing production facilities.

Sergey is also a partner in Rengy Development that is focused on development of renewable projects -mainly solar power generation in Ukraine.

Chief Operational Officer, Board Member

Yuriy Hordiychuk has been with the Group since 2002. Firstly, he was Director of Procurement, and in 2005 was promoted to Director of Production. The next significant step in the career of Mr. Hordiychuk was taken in 2008, when the board of directors of Ukrproduct Group appointed him as a Chief Operational Officer of the Company. Yuriy has a successful track record of business administration and a degree in "Production Organisation Management".

Chief Financial Officer, Board Member

Olena has been with Ukrproduct since 2019, previously serving as Deputy CFO and Head of Reporting. In 2025, she was appointed to the Board as Chief Financial Officer of the Company. Prior to joining Ukrproduct, she held finance roles at Bunge Ukraine and has extensive experience in financial reporting, audit coordination, IFRS compliance and systems implementation. She holds a Masters degree in International Economics from Alfred Nobel University and a Diploma in International Financial Reporting.

This report is prepared by the Remuneration Committee of the Board and sets out the Group's policy on the remuneration of the Directors, with a description of service agreements and remuneration packages for each Director in relation to the financial year ended 31 December 2025.

The Remuneration Committee comprises one Non-Executive Director, Rinat Abdrasilov (who serves as Committee Chairman), and one Executive Director, Sergey Evlanchik. In case of a split decision, the Independent Non-Executive Chairman holds the casting vote. This Committee is scheduled to meet at least twice per annum to advise the Board on the Group's remuneration strategy and to determine the terms of employment and total remuneration of the respective Executive Directors of the Group and of its subsidiary companies, including the granting of share options. Among others, the objective of this Committee is to attract, retain and motivate Executives capable of delivering the Group's objectives. The Remuneration Committee is also responsible for the evaluation of the performance of Executive Directors.

The committee met 2 times to discuss nomination and remuneration issues during 2025.

The Group's remuneration policy is to provide remuneration packages which:

• are designed to attract, motivate and retain high calibre Executives;

• are competitive and in line with comparable businesses;

• are rooted in practices exercised in countries where the Group operates;

• intend to align the interests of the Executives with those of the shareholders by means of fixed and performance related remuneration; and

• set challenging performance targets and motivate Executives to achieve those targets both in the short and long-term.

The Committee on an annual basis reviews base salaries of the respective Executive Directors of the Company and its subsidiaries, taking into account job responsibilities, competitive market rates and the performance of the Executive concerned. Consideration is also given to the cost of living and the Director's professional experience. While determining the base salaries, the Committee also considers general aspects of the employment terms and conditions of employees elsewhere in the Group.

The Committee continues to plan to introduce long-term equity incentive arrangements to make the overall Executive Remuneration structure more performance-related, more competitive and aligned with shareholders' interests subject to an improving environment in Ukraine.

The appointments of the respective Executive Directors of the Company and its subsidiaries are valid for an indefinite period and may be terminated with three months' notice given by either party at any time.

The Group's policy, including for individual subsidiaries, for compensation for loss of office is to provide compensation that reflects the Group's or a subsidiary's contractual obligations.

The Committee has established a cash bonus scheme for Executive Directors based on overall Group performance and the achievement of operating targets. No bonus awards were made for FY2025. This reflects both the financial position of the Group and the Board's decision to prioritise liquidity preservation under wartime conditions. The Board nevertheless wishes to recognise the exceptional efforts of the executive team during the year. The absence of bonus payments should not be interpreted as a reflection of performance, but rather as a consequence of the operating environment and the principles applied by the Board.

The appointments of non-executive Directors are valid for an indefinite period and may be terminated with three months' notice given by either party, at any time. The decision to re-appoint, as well as the determination of the fees of the non-executive Directors, rests with the Board. The non-executive Directors may accept appointments with other companies, although any such appointment is subject to the Board's approval, terms, and conditions of Service Agreements.

Details of the Directors' cash remuneration are outlined below. Information in the table has been audited.

Annual Salary/fee Bonus Non-cash compensation

Total cash remuneration

*The remuneration of Mr Rinat Abdrasilov as Non-Executive Chairman is £24,000 per annum. In FY2025, a company connected to Mr Abdrasilov provided financial modelling services to the Group under a contract separate from his service agreement as Non-Executive Chairman. Fees for these services

amounted to £45,000 (including all applicable taxes). The services were provided on an arm's-length basis.

**This relates to fees paid to Yuriy Hordiychuk for general management services under a separate contract to his service contract.

The Board recognises that the current level of executive remuneration is materially below typical market levels for AIM-listed companies of comparable size and complexity. Salaries have remained broadly unchanged for a number of years and have not been adjusted to reflect market benchmarks. This position reflects the exceptional circumstances in which the Group operates. Since the onset of the full-scale war, the Board has prioritised liquidity preservation, operational continuity and financial resilience over increases in executive compensation. The Board acknowledges the significant commitment and contribution of the executive team during this period. The Group has continued to operate under extreme conditions, and this has only been possible due to the sustained efforts of management. While the current remuneration structure is not aligned with market levels, the Board considers it appropriate in the context of the Group's financial position and the wider environment. The Board intends to review executive remuneration as conditions stabilise and when it becomes appropriate to do so.

As at 31 December 2025 there are no outstanding options issued by Group.

As an AIM-quoted company, the Company is required to apply a recognised corporate governance code, demonstrating how the Group complies with such corporate governance code and where it departs from it.

The Directors of the Company have formally made the decision to apply the Quoted Companies Alliance Corporate Governance Code (the "QCA Code"). The Board recognises the principles of the QCA Code, which focuses on the creation of medium to long-term value for shareholders without stifling the entrepreneurial spirit in which small to medium sized companies, such as Ukrproduct Group Limited, have been created. The Company will provide annual updates on its compliance with the QCA Code in its Annual Report.

The Board currently comprises four Executive Directors and a Non-Executive Chairman, providing a combination of operational experience and strategic oversight.

The Board acknowledges that, under the Quoted Companies Alliance Corporate Governance Code, best practice would typically include a greater number of independent Non-Executive Directors. At present, the Company has one independent Non-Executive Director, who also serves as Chairman.

This reflects the realities under which the Group is currently operating. The ongoing war in Ukraine has placed significant pressure on the business, including on financial resources and management capacity. In this context, the Board has prioritised operational continuity, liquidity preservation and cost discipline, which has limited the ability to expand the Board composition in line with standard market practice.

The Board keeps its composition under regular review and recognises the importance of strengthening independent representation over time. As conditions allow, the Company intends to move towards a structure more closely aligned with QCA recommendations.

The Board meets four times a year. At these meetings, the Board reviews strategy implementation, financial performance and key operational risks, and evaluates both individual and collective accountability.

Day-to-day management of the Group is delegated to the Executive Directors. All Directors have access to the Company Secretary and, where necessary, may obtain independent professional advice at the expense of the Group. The board also supplements its governance through external advisers where appropriate.

The Board considers that, given the current circumstances, it retains an appropriate balance between independence and deep operational knowledge to enable effective decision-making.

Details of the current Directors, their roles and background are available on the Company's website: http://ukrproduct.com/en/investor-relations-aim-rule-26/board-of-directors/

The Company remains committed to listening to, and communicating openly with, its shareholders to ensure that its strategy, business model and performance are clearly understood. The AGM is a forum for shareholders to engage in dialogue with the Board. The results of the AGM will be published via RNS and on the Company's website. Regular progress reports are also made via a Regulatory Information Service. The point of contact for shareholders is Olena Telychko, Chief Financial Officer, olena.telychko@ukrproduct.com.

The Board has two committees comprising the following:

The Audit Committee

The terms of reference of the Audit Committee are to assist all the Directors in discharging the individuals of appropriate ability and experience and to help in promoting the following:

• The Group's financial and accounting systems provide accurate and up-to-date information on its current financial position, including all significant issues and going concern;

• The integrity of the Group's financial statements and any formal announcements relating to the Group's financial performance and reviewing significant financial reporting judgments contained therein are monitored;

• The Group's published financial statements represent a true and fair reflection of this position; and taken as a whole are balanced and understandable, providing the information necessary for shareholders to assess the Group's performance, business model and strategy;

• The external audit is conducted in an independent, objective thorough, efficient and effective manner, through discussions with management and the external auditor; and

• A recommendation is made to the Board for it to put to shareholders at a general meeting, in relation to the reappointment, appointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor.

  Remuneration Committee

  The terms of reference of the Remuneration Committee are to:

• recommend to the Board a framework for rewarding senior management, including Executive Directors, bearing in mind the need to attract and retain individuals of the highest calibre and with the appropriate experience; and

• ensure that the elements of the remuneration package are competitive and help in promoting the Group.

The Directors acknowledge their responsibility for the Group's system of internal control, which is designed to ensure adherence to the Group's policies whilst safeguarding the assets of the Group, in addition to ensuring the completeness and accuracy of the accounting records. Responsibility for implementing a system of internal financial control is delegated to Olena Telychko, the CFO. The essential elements of the Group's internal financial control procedures involve:

• Strategic business planning: strategic business planning is undertaken annually. This includes financial budget for the following year.

• Performance review: the Directors aim to monitor the Group's performance through the preparation of monthly management accounts and regular reviews of expenditure and projections.

• The internal control system: the internal control system is further enforced by the Group's internal audit department with the main objectives of ensuring the safety of the Group's assets and the reliability of accounting records.

During 2025, the Board undertook a comprehensive review of the Group's governance framework, with a particular focus on risk management in the context of the ongoing war. The Board worked closely with management to develop a detailed understanding of the key risks facing the business, including operational disruption, workforce stability, supply chain resilience, liquidity, and cyber security. Based on this work, the Board reviewed and refined the Group's risk appetite, agreed priority mitigation actions with the executive team, and established a more structured approach to ongoing risk monitoring. As part of this process, the Board reviewed and updated a number of core corporate policies, including the Risk Management Policy, Cyber Risk Policy, Health, Safety and Environment Policy, Anti-Bribery Policy and Business Continuity Policy. Risk oversight has been strengthened through regular Board-level reviews of the Group's risk profile, including detailed discussions with business unit leaders and the incorporation of a formal risk map into Board materials. The Board has committed to reviewing key risks and mitigation actions on a regular basis going forward. The Board believes that, given the current operating environment, this enhanced focus on risk, governance and business continuity is critical to maintaining the resilience and long-term viability of the Group.

In accordance with the AIM Rules for Companies, the Company departs from the QCA Code in the following ways:

The Company does not comply with the recommendation of Principle 5 that the Board should have at least two independent nonexecutive directors. The Company only has one Non-Executive Director, the Chairman, who is considered independent, but has four Executive Directors. The Executive Directors have valuable industry knowledge and are integral to the running of the business. The Chairman has an extensive business experience at the Board level.

The Board is small and extremely focussed on implementing the Company's strategy. However, given the size and nature of the Company, the Board does not consider it appropriate to have a formal performance evaluation procedure in place, as described and recommended in Principle 7 of the QCA Code. The Board will closely monitor the situation as it grows.

19 June 2026

The Group operates in an environment where traditional approaches to corporate social responsibility are significantly challenged by the realities of war. While the Board remains committed to the principles of responsible business conduct, the primary focus during 2025 has been on protecting employees, maintaining safe operations and ensuring continuity of food production.

The safety, wellbeing and retention of employees remain the Group's highest priority. During 2025, the Group operated under conditions of sustained disruption, including air raid alerts, power outages and workforce instability driven by mobilisation and migration. In this context, management focused on maintaining employment, adapting working practices and supporting employees through a highly volatile environment. The workforce has also evolved to reflect the broader demographic reality of wartime Ukraine, including a significant increase in employees with disabilities. The Group continues to adapt its operations to support a more inclusive workforce in practice, not as a compliance exercise.

Maintaining safe production environments has required continuous adaptation. This includes operating facilities during prolonged power outages, implementing enhanced safety protocols, and maintaining emergency readiness across production sites. The Group continues to prioritise critical safety investments within the constraints of limited financial resources.

The Group plays a role in supporting food supply both within Ukraine and in export markets. In a period of economic stress, the focus has been on maintaining availability of affordable products while ensuring consistent quality and safety standards. Food safety remains a non-negotiable priority, with ISO 22000 standards maintained across operations despite operational challenges.

The Group continues to operate in line with applicable environmental regulations and focuses on practical measures, including reducing energy consumption, managing waste and maintaining environmental controls across production sites. Given current conditions, environmental initiatives are prioritised based on operational necessity and available resources.

The Group's supply chain is closely linked to independent farming communities across Ukraine. These communities have been significantly affected by the war, including labour shortages, infrastructure damage and operational disruption. The Group continues to work with its suppliers to sustain production and maintain long-term relationships. Where possible, the Group supports local communities through employment, economic activity and participation in local initiatives.

Prior to the escalation of the war, the Group had intended to expand its ESG reporting and align more closely with international frameworks. While progress in this area has been limited by operational priorities, the Board remains committed to developing a more structured ESG approach over time, as conditions stabilise.

The Directors present their report and the audited consolidated financial statements of Ukrproduct Group Limited (referred to as the "Сompany" and together with its subsidiaries, the "Group") for the year ended 31 December 2025.

Ukrproduct is a holding company that oversees a variety of food and beverage businesses in Ukraine. The Group primarily focuses on producing and distributing well-known dairy products and beverages, such as kvass, within Ukraine and for export. It has established a comprehensive nationwide distribution network. Detailed insights into the Group's activities over the past year, including financial performance, future plans, and prospects, are provided in the statements from the Chairman and Chief Executive.

In 2025, the Group launched internal corporate restructuring initiatives aimed at simplifying the legal structure and optimising administrative processes. As part of these initiatives, a decision was adopted to reorganise Krasylivskyi Molochnyi Zavod Private Enterprise, which is a subsidiary of the Group, by accession to a Group subsidiary. The legal procedures were ongoing as at 31 December 2025.

The results of the Group for the year are set out in the consolidated financial statements. Net loss after tax for FY2025 amounted to £0.17 million (FY2024: £2.04 million), driven by revenue growth, lower finance costs, and favourable movements in other operating items.

The Board has decided not to recommend the payment of a dividend in respect of the year ended 31 December 2025.

Details of the members of the Board of Directors are set out in the Directors' section of this report.

The Directors' interests in the share capital of the Company as at 31 December 2025 and 31 December 2024 are shown below:

Shares Share options

Subject to the Company's Memorandum and Articles of Association, Companies (Jersey) Law 1991, as amended and any directions given by special resolution, the business of the Company shall be managed by the Directors who may exercise all such powers of the Company. The rules in relation to the appointment and replacement of Directors are set out in the Сompany's Articles of Association.

The Group operates in an environment of elevated and evolving risk as a result of the ongoing war in Ukraine. The Board has prioritised those risks that are both most material and most within the Group's ability to influence.

• Operational disruption. Missile attacks, power outages and infrastructure damage can interrupt production and logistics. The Group mitigates these risks through backup power systems, emergency preparedness protocols and flexible logistics arrangements. However, the risk of disruption remains inherent to the operating environment.
• Liquidity and debt restructuring. The Group continues to operate with limited liquidity and remains in active discussions with the EBRD regarding the restructuring of its outstanding debt. Failure to reach a restructuring agreement could result in increased financial pressure, including potential enforcement actions. The Board closely monitors liquidity and prioritises working capital management.
• Energy and input cost volatility. The Group's cost base and margins are sensitive to energy and fuel prices, particularly diesel, which is embedded across production and logistics. Recent geopolitical developments have contributed to upward pressure on fuel costs. The Group manages this risk through pricing, cost control and operational adjustments, although full pass-through is not always possible.
• Supply chain and raw materials. The Group relies on independent dairy farming households for raw milk supply. The sector is under structural pressure, including workforce shortages, livestock decline and infrastructure disruption. The Group mitigates this risk through supplier diversification and long-term relationships.
• Human capital and workforce stability. The Group operates with high workforce turnover due to mobilisation and migration. Sustaining operations depends on continuous recruitment, training and retention efforts. The Group maintains operational resilience through flexible workforce management and adaptation of roles.
• Foreign exchange exposure. The Group generates revenues and incurs costs in multiple currencies, while also carrying debt denominated in foreign currency. Exchange rate volatility can impact reported performance and financial position. The Group uses internal planning scenarios to manage exposure.
• Demand and pricing environment. Consumer purchasing power in Ukraine remains under pressure. The Group mitigates this risk through product mix optimisation, focus on affordable categories and expansion of export markets.
• Geopolitical exposure in export markets. The Group has exposure to export markets in regions affected by geopolitical instability, including the Middle East. Escalation of regional conflicts may affect demand, logistics and input costs. The Group continues to monitor developments and adapt its commercial strategy accordingly.

The Group is committed to ensuring provision of equal opportunities for all employees, which is reflected by its selection, recruitment and training policies. The Group considers its employees to be one of its most valuable assets and rewards high performance through competitive remuneration and incentive schemes. The Directors also consider it a priority to give employees the opportunity to communicate their ideas and opinions to all levels of management, both directly and through various surveys. The average number of employees of the Group during the year ended 31 December 2025 was 791 (2024: 813, excluding seasonal employees).

The Group has a general set of guidelines for paying its suppliers based on specific criteria. However, it is normal practice to agree payment terms with a specific supplier when entering into a purchase contract. The Group seeks to abide by the payment terms agreed whenever it is satisfied that the goods or services have been provided in accordance with the agreed terms and conditions.

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will continue to operate for the foreseeable future and will be able to realise its assets and discharge its liabilities in the normal course of business.

At 31 December 2025, the Group had net assets of £1.7 million, cash balances of £0.1 million, and continued to operate with tight liquidity. The Group remained in breach of its loan obligations to the EBRD. The Group did not repay the principal balances of Tranche A (€1.9 million, c. £1.6 million) and Tranche B (€3.3 million, c. £2.8 million) at their contractual maturity in December 2024. Interest payments have been limited since March 2022, with only partial payments made and not at the level required under the contractual terms. As a result, the outstanding balance, including accumulated interest and fees, exceeded €10.5 million (c. £9.0 million), all classified as a current liability in accordance with IFRS requirements. No covenant waivers or restructuring agreements had been obtained from the EBRD as at the date of approval of these financial statements.

Management has progressed discussions with the EBRD regarding the restructuring of the outstanding debt. As at the date of approval of these financial statements, no formal restructuring agreement has been reached; however, the EBRD has not taken steps to accelerate repayment of the loan.

The Group has developed cash flow forecasts covering a period of at least 12 months from the date of approval of the financial statements. These forecasts reflect the expected continuation of operations under wartime conditions, disciplined working capital management, restricted capital expenditure, and the continuation of ongoing lender negotiations.

The Directors acknowledge that a material uncertainty exists, which may cast significant doubt about the Group's ability to continue as a going concern in particular relating to:

• the absence of a formal debt restructuring agreement with the EBRD;

• the classification of all EBRD obligations as current and the resulting deficit in net current assets;

• the impact of the ongoing war in Ukraine on the Group's trading environment, logistics, and market stability;

• the Group's very limited liquidity and reliance on successful execution of its cash flow plans.

Based on the Group's 2025 results, ongoing mitigating actions, and the current status of discussions with lenders, the Directors have a reasonable expectation that the Group will continue to have adequate resources to meet its current obligations as they fall due for the foreseeable future. Accordingly, the Directors consider it appropriate to prepare the financial statements on a going concern basis.

Ukrproduct's AGM will be held on 10 August 2026. The Notice of AGM will be sent to shareholders no less than 21 days prior to the date of the meeting.

Moore Stephens Audit and Assurance (Jersey) Limited was appointed as the Group's auditors for the 2025 financial year by the resolution of the Directors held on 7 August 2025. A resolution to reappoint them will be proposed at the forthcoming AGM.

All of the current Directors have taken the necessary steps to make themselves aware of any information needed by the Group's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Directors are not aware of any relevant audit information of which the auditors

are unaware.

19 June 2026

The Directors are responsible for the preparation of the consolidated financial statements in accordance with applicable Jersey law and other regulations and enactments in force at the time. The Companies (Jersey) Law 1991, as amended requires the Directors to prepare financial statements for each year in accordance with Generally Accepted Accounting Principles. Under that law, the Directors have elected to prepare the consolidated financial statements in accordance with UK adopted International Accounting Standards. Under the Companies Law, the Directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and of its profit or loss for the period ended.

In preparing these consolidated financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state that the financial information complies with UK adopted International Accounting Standards, subject to any material departures disclosed and explained in the consolidated financial statements; and

• prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

  The Board of Directors confirms that the Group has complied with the above-mentioned requirements in preparing its consolidated financial statements.

  The Directors are also responsible for:

• implementing and maintaining an efficient and reliable system of internal controls in the Group;

• keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group;

• taking reasonable steps to safeguard the assets of the Group and to prevent and detect fraud and other irregularities; and

  
  
  

• the maintenance and integrity of the Group's website. On behalf of the Directors:

  Rinat Abdrasilov Non-Executive Chairman

  19 June 2026

  
  
  

  MOORE Stephens

  Moore Stephens Audit and Assur (Jersey) Limited

  1 Waverley Place

  Union Street, St Helier

  Jersey, Channel Islands JE4 8SG

  T +44 (0) 1534 880088

  E maiI@moorestephens-jersey.com www.moorestephensci.com GSTNo:0044828

  INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF UKRPRODUCT GROUP LIMITED Opinion

  We have audited the consolidated financial statements of Ukrproduct Group Limited and its subsidiaries (the "Group"), which comprise the Consolidated Statement of Comprehensive Income for the year ended 31 December 2025, the Consolidated Statement of Financial Position as at 31 December 2025, the Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows for the year then ended and notes to the consolidated financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Accounting Standards (UK-Adopted IAS or IFRS).

  In our opinion, the accompanying consolidated financial statements:

• give a true and fair view of the financial position of the Group as at 31 December 2025, and of its consolidated financial performance and its consolidated cash flows for the year then ended;

• have been properly prepared in accordance with UK adopted International Accounting Standards; and

• have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991.

We conducted our audit in accordance with International Standards on Auditing (ISAs) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial statements in Jersey, and we have fulfilled our ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

We draw attention to note 2.1 (b), in the consolidated financial statements, which describes the net current liability position of the Group, the absence of a formal debt restructuring agreement with the European Bank for Reconstruction and Development (EBRD), the potential impact of the ongoing war in Ukraine, and the limited cash resources of the Group and reliance on successful implementation of its business plans and financing strategy. These events and conditions, along with other matters as set in note 2.1 (b) to the consolidated financial statements, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. These conditions have continued after the reporting date. Our opinion is not modified in respect of this matter.

In assessing the appropriateness of the going concern assumption used in preparing the consolidated financial statements, our procedures included, amongst others:

• Assessing the cash flow requirements of the Group over 12 months from expected signoff of these consolidated financial statements;

• Understanding what forecast expenditure is committed and what could be considered discretionary;

  An independent member firm of Moore Global Limited -member firms in principal cities throughout the world.

  The registered office address is: 1 Waverley Place, Union Street, St. Helier. Jersev. Channel Islands JE4 8SG

  • Assessing the liquidity of existing assets on the consolidated statement of financial position that can be used to repay the Group's obligations;

  • Considering the terms of the EBRD loan agreement and the probability of EBRD and the Group agreeing to restructure the facility;

  • Considering the availability of other bank loan and trade finance facilities and the amount available for drawdown;

  • Considering the impact of the ongoing military conflict in Ukraine to the Group's operational responses to the challenges this has created and the Group's business continuity plan, if any; and,

  • Considering potential downside scenarios and the resultant impact on available funds.

In the context of our audit of the consolidated financial statements, and in forming our opinion thereon, we have concluded that management's use of the going concern basis of accounting in the preparation of the consolidated financial statements is appropriate.

Our conclusions are based on the audit evidence obtained up to the date of our auditor's report and are not a guarantee as to the Group's ability to continue as a going concern.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matters described in the Material Uncertainty Related to Going Concern section above, we have determined the matters described below to be key audit matters to be communicated in our report.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the annual report set out on page 3 to 20 other than the consolidated financial statements and our auditor's report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the audits or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement of the consolidated financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on Which we are Required to Report by Exception

We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us to report to you if, in our opinion:

• proper accounting records have not been kept;

• proper returns adequate for the audit have not been received from branches not visited by us; and

• the financial statements are not in agreement with the accounting records and returns; or

Responsibilities of Directors for the Consolidated Financial Statements

As explained more fully in the Statement of Directors' Responsibilities set out on page 21, the Directors are responsible for the preparation of the consolidated financial statements in accordance with UK Adopted IAS, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,

related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Use of our report

This report is made solely to the Group's shareholders as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Group's shareholders those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group and the Group's shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

dam Gavin

For and on behalf of Moore Stephens Audit and Assurance (Jersey) Limited 1 Waverley Place

Union Street St Helier Jersey

Channel Islands JE4 8SG

19 June 2026 •* '

FOR THE YEAR ENDED 31 DECEMBER 2025

(in thousand GBP, unless otherwise stated)

AS AT 31 DECEMBER 2025

(in thousand GBP, unless otherwise stated)

As at As at

These consolidated financial statements were approved and authorised for issue by the Board of Directors on June 19, 2026 and were signed on its behalf by:

Chief Executive Officer 19 June 2026

FOR THE YEAR ENDED 31 DECEMBER 2025

(in thousand GBP, unless otherwise stated)

Attributable to owners of the parent

Non-con-

Ukrproduct Group

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025

(in thousand GBP, unless otherwise stated)

Year ended Year ended

1. GROUP AND PRINCIPAL ACTIVITIES
   1. Introduction

      Ukrproduct Group Limited (the "Company") is a public limited liability company registered in Jersey with a registered office at 26 New Street, St Helier, Jersey, JE2 3RA, Channel Islands.

      The Group's overall management and production facilities are based in Ukraine, with the Head Quarters in Kyiv. The Group commands leading positions in the Ukrainian processed cheese and packaged butter markets and owns a range of widely recognisable trademarks in Ukraine, including "Nash Molochnik" (translated as Our Dairyman), "Narodniy Product" (People's Product) "Molendam" and "Vershkova Dolina" (Creamy Valley). The average number of employees of the Group during the year ended 31 December 2025 was 791 (2024: 813).

   2. Share capital

      Significant shareholders of the Company as at 31 December are as follows:

      	Year ended 31 December	Year ended 31 December
      	2025	2024
      Ukrproduct Group
      Oleksandr Slipchuk	34.89%	34.89%
      Sergey Evlanchik	34.96%	34.96%

      As at 31 December 2025, 7.34% (2024: 7.34%) of the Company's issued share capital was held in treasury.

   3. Ukrainian environment

      According to preliminary estimates of the State Statistics Service, Ukraine's real GDP increased by 1.8% in 2025, compared with 3.2% growth in 2024.

      In 2025, economic activity was supported primarily by domestic trade, construction driven by reconstruction projects and manufacturing, including defence production and metallurgy. Government business-support programs and budgetary investments in the restoration of critical infrastructure also played an important stabilising role.

      At the same time, several factors constrained economic momentum:

      • Mass missile attacks by Russia targeting power-generation infrastructure and, for the first time since the beginning of the full-scale invasion, gas-extraction facilities;

      • Lower harvests of several key crops due to unfavourable weather, with the largest declines seen in oilseeds (soy - 26.9%, sunflower - 15.8%, rapeseed - 7.6%) and sugar beet (-13.9%), while grain production increased by 3%;

      • Logistical challenges, the cessation of natural gas transit through pipeline systems, and weakened demand, particularly from the agricultural sector.

      Inflation slowed to 8.0% year-on-year in 2025, while the Ukrainian Hryvnia depreciated against both the

      U.S. dollar and the euro. Price growth for processed foods decelerated to 9.8% year on year, including: milk +8.5% year on year, soft/curd cheese (as part of the broader category) +8.7% year on year, and butter +6.2% year on year.

      1. GROUP AND PRINCIPAL ACTIVITIES (continued) (c) Ukrainian environment (continued)

         Despite the overall decline in national raw milk production, the dairy sector continued its structural shift toward industrialisation. The reduction in output occurred almost exclusively within household farms, while commercial agricultural enterprises increased both productivity and the supply of high-quality raw milk to processors. As a result, the volume of milk delivered for processing grew by approximately 9% in 2025, reaching around 3.6 million tonnes, even though total raw milk production fell to 6.86 million tonnes (-5.2% year-on-year). This reflects the ongoing transition of Ukraine's dairy industry from household-based production to commercial, higher-efficiency farming systems.

         Exports accelerated markedly in 2025: Ukraine shipped 0.7 million tonnes (milk equivalent, +17% year-on-year), with natural export volumes reaching 131.9 thousand tonnes for the full year (+12%). Export revenues rose to USD$401 million (+35% year-on-year). Growth was driven primarily by skim/condensed milk powders, butter, and cheeses, with EU markets absorbing an increasing share of output. Export expansion continued to outpace raw milk production, reflecting deeper sector industrialisation and improved availability of processor-grade milk.

         In 2025, dairy imports remained elevated due to persistent price disparities with the EU, where dairy products continued to be significantly cheaper. Ukraine imported 64.7 thousand tonnes of dairy products (+7% year-on-year) valued at USD$338 million (+16% year-on-year). The import basket was dominated by cheeses, which accounted for more than 60% of total volumes and were largely supplied by EU producers.

      2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
         1. Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for material items of property, plant and equipment which have been measured using the fair value model. The consolidated financial statements are presented in British Pounds Sterling (GBP) and all values are rounded to the nearest thousand (£000) except where otherwise indicated.

1. Statement of compliance

   These consolidated financial statements have been prepared in accordance with UK Adopted International Accounting Standards (UK-Adopted IAS or IFRS).

   The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Further information is provided in Note 3.

2. Going concern

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will continue to operate for the foreseeable future and will be able to realise its assets and discharge its liabilities in the normal course of business.

All property, plant and equipment is recognised at cost at initial recognition.

Subsequent costs, including the costs of replacing or fixing a part, are only recognised as separate assets if it is probable that separate future economic benefits will flow to the Group. All other repairs, maintenance and subsequent costs are charged to profit or loss during the period in which they occur.

All property, plant and equipment are subsequently stated in the consolidated statement of financial position at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and impairment losses. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date.

Depreciation is calculated to write off the cost or valuation of the assets less their residual values over their estimated useful life, using a straight-line method of depreciation on the following basis:

Group of property, plant and equipment Useful life

Buildings 7 - 62 years

Plant and machinery 2 - 20 years

Vehicles 5 - 12 years

Instruments, tools and other equipment 2- 20 years