AS “DelfinGroup”
Annual accounts
for the year ended
31 December 2024
and
Consolidated
Annual accounts
for the year ended
31 December 2024
prepared in accordance
with International Financial
Reporting Standards as
adopted by EU
Translation from Latvian

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Table of Contents
Information on the Company and
subsidiaries
3 – 5
Statement of management’s responsibility
6
Management report
7 – 17
Statement of Profit or loss
18
Balance sheet
19 – 20
Statement of changes in equity
21
Cash flow statement
22
Notes
23 – 59
Independent Auditors’ report
60– 68

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Name of the Company
DelfinGroup
Legal status of the Company
Joint stock company
Number, place and date of registration
40103252854 Commercial Registry
Riga, 12 October 2009
Operations as classified by NACE
classification code system
NACE2 64.92 Other credit granting
NACE2 47.91 Retail sale via mail order houses or via Internet
NACE2 47.79 Retail sale of second-hand goods in stores
NACE 47.77 retail sale of watches and jewellery in specialised stores
Address
50A Skanstes Street,
Riga, LV-1013
Latvia
Names and addresses of shareholders
AS ALPPES Capital
(18.24%),
12 Juras Street, Liepaja, Latvia
SIA EC finance
(14.92%),
50A Skanstes Street, Riga, Latvia
SIA AE Consulting
(8.20%),
50A Skanstes Street, Riga, Latvia
Other
(58.64%)
Names and positions of Board
members
Didzis Ādmīdiņš – Chairman of the Board (from 19.01.2021)
Andrejs Aleksandrovičs – Member of the Board (from 18.12.2024)
Laima Eižvertiņa – Member of the Board (from 01.04.2025)
Nauris Bloks – Member of the Board (from 08.06.2023 to 01.04.2025)
Aldis Umblejs – Member of the Board (from 15.12.2021 to 18.12.2024)
Sanita Pudnika – Member of the Board (from 01.03.2022 to
28.06.2024)
Information
on the Company and
Subsidiaries

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Names and positions of Supervisory Board
members
Agris Evertovskis – Chairperson of the Supervisory Board
(from 13.04.2021)
Gatis Kokins – Deputy Chairman of the Supervisory Board
(from 13.04.2021)
Mārtiņš Bičevskis – Member of the Supervisory Board
(from 13.04.2021)
Jānis Pizičs – Member of the Supervisory Board (from
13.04.2021)
Edgars Voļskis – Member of the Supervisory Board (from
13.04.2021 to 22.05.2024)
Financial year
1 January 2024 - 31 December 2024
Name and address of the auditor
SIA KPMG Baltics
Certified Auditors’ Company
license No. 55
Roberta Hirša street 1,
Riga, LV-1045
Latvia
Responsible Certified Auditor:
Rainers Vilāns
Certificate No. 200

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Subsidiary
SIA ViziaFinance (parent company interest in subsidiary –
100%)
Date of acquisition of the subsidiary
23.02.2015
Number, place and date of registration of the
subsidiary
40003040217; Riga, 06 December 1991
Address of the subsidiary
50A Skanstes Street, Riga, LV-1013, Latvia
Operations as classified by NACE
classification code system of the subsidiary
64.92 Other financing services
Subsidiary
UAB DelfinGroup LT (parent company interest in subsidiary –
100%)
Date of establishment of the subsidiary
28.09.2023
Number, place and date of registration of the
subsidiary
306462155; Vilnius, 28 September 2023
Address of the subsidiary
25-701 Lvivo Street, Vilnius, Lithuania
Operations as classified by NACE
classification code system of the subsidiary
64.92 Other financing services
Subsidiary
SIA DealShoq (parent company interest in subsidiary –
100%)
Date of acquisition of the subsidiary
04.11.2024
Number, place and date of registration of the
subsidiary
40203600852; Rīga, 2024. gada 4. novembris
Address of the subsidiary
50A Skanstes Street, Riga, LV-1013, Latvia
Operations as classified by NACE
classification code system of the subsidiary
47.79 Retail sale of second-hand goods
Information
on the
Subsidiaries

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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The management of AS DelfinGroup (hereinafter – the Company) is responsible for the preparation of the financial
statements of the Company and for the preparation of the consolidated financial statements of the Company and its
subsidiaries (hereinafter – the Group or DelfinGroup).
The financial statements set out on pages 18 to 59 are prepared in accordance with the source documents and
present the financial position of the Company and the Group as of 31 December 2024 and 31 December 2023 and
the results of their operations, changes in shareholders’ equity and cash flows for the years then ended. The
management report set out on pages 7 to 17 presents fairly the financial results of the reporting period and future
prospects of the Company and the Group.
The financial statements are prepared on a going concern basis in accordance with IFRS Accounting Standards as
adopted by the European Union. Appropriate accounting policies have been applied on a consistent basis. Prudent
and reasonable judgments and estimates have been made by the Management in the preparation of the financial
statements.
The Management of AS DelfinGroup is responsible for the maintenance of proper accounting records, the
safeguarding of the Group’s assets and the prevention and detection of fraud and other irregularities in the Group.
The Management is also responsible for compliance with requirements of legal acts of the countries where Group
companies and the Parent company operate.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
This document is electronically signed with safe electronical signature and contains time stamp.
Statement of
management`s
responsibility

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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CEO statement
Dear reader,
As I reflect on the past year at DelfinGroup, it's with a profound
sense of achievement and an optimistic outlook towards our
future. The journey through 2024 has been one of dynamic
growth, significant milestones, and a deepened commitment to
our core values and strategic objectives. Adhering closely to
our updated strategic plan, we've made substantial advances
in our core business areas while also pushing forward our
commitments to innovation, customer satisfaction, and
sustainable business practices.
In a stride towards digital transformation, we launched Latvia’s
first digital pawnshop. The new service allows people to obtain
a secured loan by completing an application online. The
contract is also signed remotely, and the goods are sent to the
branch via parcel machines. The digital pawnshop application
makes the financial services even more accessible to
customers. This initiative is part of our broader strategy to
leverage technology to enhance customer experience.
Our operational expansion in Lithuania was another strategic
focus of 2024. Throughout the year we improved pawn lending
and retail business segments in Lithuania, while also preparing
for the launch of consumer lending. After the receipt of consumer lending license from the Bank of Lithuania we
launched the product at the end of 2024. Additionally, company managed to expand its physical presence in
Lithuania by opening two more branches in Vilnius, thus reaching operations of 7 active Banknote branches in the
capital of Lithuania. This expansion is pivotal as we continue to scale our operations and enhance our service
offerings across the Latvia and Lithuania.
It is important also to mention branch network improvements in Latvia where we expanded the Banknote XL concept
store network. New Banknote XL branches were opened in Daugavpils and Rezekne. Since the Banknote XL store
are more spacious, we can offer more goods to the client’s and diversify the product offering. For example, the new
Rezekne branch is almost 4 times larger than the previous branch which enables us to offer up to 5,000 pre-owned
goods to clients visiting the store, while previously it was only 1,000. As we see that clients show great interest in
Banknote XL we are exploring new opportunities to add new stores in 2025.
From a financial perspective, 2024 was a successful year that reflected a stable and sustainable growth, showcasing
the company’s ability to adapt to market trends and maintain strong performance. Our revenue increased to EUR
63 million (+25%), EBITDA reached EUR 21.9 million (+21%), and profit before tax grew to EUR 9.2 million (+11%).
Net profit rose to EUR 7.3 million, up 10% compared to 2023. These results confirm our ability to ensure stable
growth. Moreover, we remain focused on business development to strengthen the company's value and establish a
solid foundation for long-term growth.
This past year marked a significant milestone in the financial evolution of DelfinGroup, highlighted by our first-ever
highly successful public bond issue. We achieved an impressive capital raise of EUR 15 million, with total
subscription of 22.3 million euros which was an oversubscription of 148%. In total more than 2,700 retail and
institutional investors from the Baltic states participated in the offering representing a testament of trust and
confidence by the investment community in our strategic direction and operational stability. Also after having listed
Management report

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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3 new bond issues on the stock exchange in 2024, we are honoured to have more than 3,000 bondholders who
receive monthly coupon payments from DelfinGroup.
We are also thankful to more than 9,000 shareholders who have shown their trust and support into DelfinGroup.
Last year, the shareholder base grew significantly, also thanks to public share offering organized by AS ALPPES
Capital and SIA Curiosity Capital. During the offer period the two shareholders offered to sell up to 8,985,000
DelfinGroup shares, which represents 19.8% of the total DelfinGroup share capital. In total more than 1,000 investors
from the Baltic states subscribed for 8,293,780 shares and gross proceeds of 9,040,220 euros, which represented
92% of the offer volume. As a result DelfinGroup is a company with one of the largest free-float percentage on the
Nasdaq Baltic stock exchange and investors have received improved liquidity for their stocks.
Also, in 2024, DelfinGroup remained committed to our dividend policy. For the third consecutive year, we maintained
our unique practice in the Baltics of distributing quarterly dividends to our shareholders. We take pride in this
distinctive approach, which underscores our dedication to providing consistent returns to our investors. Throughout
the year, shareholders benefited from five dividend payments totalling 3.7 million euros, with a total yield of 7.6%.
Another testament of investor and stakeholder trust was the ability for the first time to receive financing from one of
the largest Latvian commercial banks Citadele banka. As a result we signed an overdraft agreement with Citadele
banka for 4.9 million euros which will help to improve company’s cash management and business development. As
of now the company has a highly diversified funding structure which is composed by 5 bond issues, 3 bank financing
and P2P investment platform. Nevertheless, we will continue to work on improving the company’s funding structure
throughout the 2025.
Our commitment to corporate social responsibility remained strong. The donation of an advanced anaesthetic device
to the Children's Hospital highlighted our ongoing commitment to the communities we serve. Such initiatives
underscore our belief in making a tangible impact on societal well-being beyond our business operations.
As we look to 2025, we are energized by our past achievements and the opportunities ahead. We plan to further
capitalize on our growth, continue our digital transformation, and enhance our operational efficiencies. Our strategy
is clear, and our team is ready to execute on our vision with precision and dedication.
I want to express my sincere gratitude to all of you—our employees, who continue to drive our success; our partners,
who journey with us; and our shareholders, who trust in our direction. Your support is pivotal to our past
achievements and the foundation of our future success.
Together, we stand on the brink of another exciting year, ready to tackle new challenges and seize new opportunities.
Thank you for your unwavering support and belief in DelfinGroup.
Didzis Ādmīdiņš
Chairman of the Management Board of AS DelfinGroup

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
Financial indicators
By implementing the business strategy and all planned activities, the following financial results of the Group were
achieved in 2024 as compares to 2023:
Position
EUR, million
Change, %
Net loan portfolio
113.5
+27.5
Assets
127.0
+20.9
Revenue
63.0
+24.9
EBITDA
21.9
+20.6
Profit before taxes
9.2
+10.7
Net profit
7.3
+9.8
And following the Group’s key financial figures for the last 3 financial years:
Position
2022
2023
2024
Revenue, EUR million
35.8
50.4
63.0
EBITDA, EUR million
13.1
18.2
21.9
EBITDA margin, %
36.6%
36.1%
34.8%
EBIT, EUR million
11.9
16.9
20.1
EBIT margin, %
33.3%
33.5%
31.9%
Profit before taxes, EUR million
7.3
8.3
9.2
Net profit, EUR million
6.0
6.6
7.3
Net profit margin, %
16.7%
13.1%
11.6%
ROE, %
33.5%
33.6%
31.5%
ROA, %
9.2%
7.3%
6.3%
ROCE, %
30.0%
23.5%
24.2%
Current ratio
0.7
1.0
0.9
In some cases, quantitative values have been rounded up to the nearest decimal place or whole number to avoid an excessive level of
detail. As a result, certain values may not necessarily add up to the respective totals due to the effects of the approximation.
EBITDA calculation, EUR million:
2024
2023
Item
Profit before tax
9.2
8.3
Interest expenses and similar expenses
10.9
8.6
Depreciation and amortisation
1.8
1.3
EBITDA, EUR million
21.9
18.2

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
As for compliance with the Issue Terms of notes ISIN LV0000802718, ISIN LV0000802700, ISIN LV0000860146,
ISIN LV0000870145 and ISIN LV0000803914 the financial covenant is as follows:
Covenant
Value as of
31.12.2024
Compliance
to maintain a Capitalization Ratio at least 20%
29%
yes
to maintain consolidated Interest Coverage Ratio of at least 1.5 times, calculated on
the trailing 12 month basis
2.0
yes
to maintain the Net Loan portfolio, plus Cash and Cash Equivalents, net value of
outstanding Mintos Debt Security and Bank Debt Security I, at least 1.2 times the
outstanding principal amount of all unsecured interest-bearing debt excluding
Subordinated debt on a consolidated basis.
1.5
yes
Principles of alternative performance measures
Dividend yield = dividends paid per share / share price at the end of the period * 100.
Net loan portfolio = non-current loans and receivables + current loans and receivables.
Revenue = net sales + interest income and similar income.
EBITDA margin = (profit before tax + interest expenses and similar expenses + depreciation of property, plant and
equipment and amortization of intangible assets + depreciation of right-of-use assets) / (net sales + interest income
and similar income) * 100.
EBIT margin = (profit before tax + interest expenses and similar expenses) / (net sales + interest income and similar
income) * 100.
Net profit margin = net profit / (net sales + interest income and similar income) * 100.
Return on equity (ROE) = net profit / ((total equity as at start of the period + total equity as at period end) / 2) * 100.
Return on assets (ROA) = net profit / ((total assets as at start of the period + total assets as at period end) / 2) * 100.
Return on capital employed (ROCE) = EBIT / (total assets - short-term liabilities).
Current ratio = total current assets / total short-term liabilities * 100.
Capitalization ratio = (total equity + subordinated debt) / (non-current loans and receivables + current loans and
receivables + inventories + other debtors) * 100.
Interest coverage ratio = EBITDA / interest expenses and similar expenses
Adjusted equity ratio = (total equity + subordinated debt) / total assets * 100.
Cost to income ratio = (selling expenses + administrative expenses + other operating expenses – debt sale results)
/ (net sales – cost of sales + interest income and similar income – interest expenses and similar expenses + other
operating income) * 100.
Price to earnings (P/E) ratio = price of one share at the end of the period / diluted earnings per share.
Dividend payout ratio = dividends paid / net profit * 100.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
Strategy
DelfinGroup aims to be a leader in the fast-growing, dynamic and changing fintech industry by attracting the
strongest talent, offering widely used and modern financial and retail products, and maintaining efficient and
transparent management processes.
By implementing and designing advanced technological solutions, DelfinGroup is able to develop and offer modern
and relevant products and services with excellent user experience (UX), thus becoming a major player in the market.
Through continued focused technology and product development, DelfinGroup aims to become the first choice for
customers in the represented geographies and product lines.
DelfinGroup has already fundamentally changed the pawn industry by introducing a modern approach to providing
pawn services. We want to strengthen our leadership position and further transform the industry in Latvia and
Lithuania by developing the pawn product in a digital environment, thus offering pawn loans in a way that is relevant,
innovative and convenient for our customers.
Considering the unique infrastructural advantages and global trends, DelfinGroup aims to become the main
ambassador of the circular economy in the region by promoting the circulation of pre-owned and slightly pre-owned
goods, introducing time-appropriate solutions in its online shop and branches, as well as promoting the rational use
of resources and raising public awareness of environmentally friendly lifestyle.
To achieve our goals, we have set the following key priorities:
• To develop the retail and goods circulation segment while ensuring its sustainability, increase in turnover,
and profitability growth.
• To develop convenient and innovative digital solutions, offering customers a personalized user experience
(UX). To create new digital products and channels that provide customers with even broader online
opportunities.
• To ensure the necessary volume and diversification of funding to implement the company's strategy and
growth.
• To expand business beyond Latvia to boost business scale and company value. We have gained a
significant market share in Latvia, so exploring new markets will foster company development.
• To develop the pawn lending segment by increasing loan portfolio and maintaining a convincing market
leader position.
• To develop the consumer lending segment by introducing cutting-edge digital and BNPL products,
promoting financial inclusion, providing portfolio growth, and increasing market share.
Targets
By following DelfinGroup vision of being the best place for everyday financial services and circular retail, we will be
able to ensure DelfinGroup long-term growth in value. By creating innovative and custom solutions for customer
needs, we have achieved rapid growth in recent years, which has allowed DelfinGroup to strengthen its position in
the Latvian market in all three business segments and to grow in Lithuania.
Position
Result
2024
Target
2024
Net loan portfolio, million EUR
113.5
105.0
EBITDA, million EUR
21.9
21.8
Profit before tax, million EUR
9.2
9.4
ROE
31.5%
>30%
Cost to income ratio
46.3%
<45%
Adjusted equity ratio
26.7%
>20%
Dividend payout ratio
51.2%
>50%

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
The results achieved in 2024 confirm that the Group is operating in the right direction, which ensures stable business
results. By continuing to invest in the development, DelfinGroup expects to significantly improve business results
and maintain the most important indicators at a sustainable level in the upcoming years.
44
68
89
113
125
2021 2022 2023 2024 2025
Net loan portfolio, mEUR
10,0
13,1
18,2
21,9
26,0
2021 2022 2023 2024 2025
EBITDA, mEUR
5,0
7,3
8,3
9,2
12,2
2021 2022 2023 2024 2025
Profit before tax, mEUR
29,5%
33,5%
33,6%
31,5%
2021 2022 2023 2024
Return on equity (ROE)
57,3%
50,3%
47,0%
46,3%
2021 2022 2023 2024
Cost to income ratio
33,5%
23,5%
24,9%
26,7%
2021 2022 2023 2024
Adjusted equity ratio

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
Consumer lending segment
In 2024, the consumer lending segment continued to show stable results. Last year, DelfinGroup issued consumer
loans totalling 79.1 million euros, a 15% increase compared to 2023, while the consumer loan portfolio grew by 28%
to 104 million euros. The increase in issuance and portfolio facilitated the segment income, which increased by 30%
and reached 44.3 million euros. Overall, the segment’s issuance, portfolio, and income were the highest in the
Group’s history.
In 2024, the Group focused on portfolio quality and cost reduction for higher profitability which resulted in solid client
payment discipline and low non-performing loan proportion in the portfolio.
It is also evident from the market data that the industry is growing. According to the latest available information from
the Consumer Rights Protection Center of Latvia on 30 June 2024, the non-bank consumer lending market portfolio
grew by 20% over a twelve-month period, reaching 586.9 million euros. Overall, the increase in the industry is
facilitated by the fact that the clients in Latvia are relatively underbanked compared to other EU countries, which
leaves room for growth. Nevertheless, DelfinGroup has been able to grow faster than the market in recent years. At
the end of the first half of 2024, DelfinGroup secured a market share of 16.7% in the non-bank consumer lending
segment in Latvia, while in 2023 it was 15.4%.
Various reasons and company incentives facilitated the growth of DelfinGroup market share. The main focus of the
consumer lending segment development was digital improvements and innovation. Last year, DelfinGroup worked
on various improvements on the Banknote mobile app, which allows clients to apply for loans, overview existing loan
agreements, find the nearest branch and perform other significant actions. In 2024, the Group did the groundwork
for launching consumer lending in Lithuania which was started at the end of 2024.
Pawn lending segment
The pawn lending segment in 2024 showed positive performance by issuing 25.6 million euros, a 9% increase
compared to 2023. Also, the active pawn loan portfolio, excluding pledges available for sale grew by 18%, reaching
4.9 million euros, the highest in company history. Moreover, the segment income, including sold pawn pledges and
pledge storage commissions, grew by 12%, reaching 9.1 million euros. Although the average pawn loan amount last
year was EUR 111 an increase of 17%. Increase of average pawn loan amount was partially due to increase of the
gold price which allows clients to secure larger loans due to increased collateral value.
Also, growth has been observed at the industry level. According to the latest available information from the
Consumer Rights Protection Center of Latvia on 30 June 2024, the pawn lending portfolio in Latvia, over twelve
months, grew by 8%, reaching a total portfolio of 7.7 million euros, for the first time supassing the pre-pandemic
level. The COVID-19 pandemic was a significant burden for the industry since the pawn lending operations only
occur on-site. Still, over the last three years, we have seen recovery after lifting the restrictions in Latvia.
Furthermore, in 2024, DelfinGroup kept its leading position in the pawn lending market by having a 54% market
share at the end of the first half of 2024.
In 2024, the Group focused on user experience improvements in the pawn lending segment. The main achievement
was on the launch of the digital pawnshop that is market-disruptive product, since so far, pawn lending transactions
were happening only on-site. The Group worked on the product throughout 2023 and launched it in 2024. As a result,
clients can pawn their items entirely remotely. DelfinGroup has developed processes allowing the company to
evaluate goods after the client sends the item via parcel machine services and signs the agreement online. The
company foresees that this breakthrough will enable an increase in user experience and increase the company’s
competitiveness.
Moreover, in 2024 the Group continued developing operations of pawn lending segment in Lithuania, since this is
the first market where the company started operations outside Latvia. At the end of 2024, DelfinGroup opened seven
Banknote branches in Lithuania, where clients could receive pawn loans.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
Retail of pre-owned goods segment
Considering the growing public interest in the circular economy model and extending the life of goods, the retail of
pre-owned and slightly pre-owned goods segment experienced significant growth in 2024. The sales of goods,
including the sale of pledges taken over at the pawnshop, reached 16.9 million euros, a 15% increase compared to
2023. As the Group has been focusing significantly on digitalising the business, the online store sales have grown
by 45% compared to 2023, reaching 4 million euros.
Also, in the retail of pre-owned goods segment, similar to other segments, a large focus in 2024 was made on
digitalisation. In 2024, the group made various improvements of the UX of the online store by renewing the design
of the store, integrating artificial intelligence solutions to automate item publishing at the online store. Also, the Group
put efforts into integrating the online store in the Banknote mobile app that previously provided only lending products.
The primary sources of acquisition of pre-owned and slightly pre-owned goods for DelfinGroup are the purchase of
goods directly from the customer and the realisation of unredeemed pawn loan pledges. Also, a growing portion of
the item portfolio comes from cooperation with various partners (business-to-business), from which the Group buys
slightly used and sometimes even new products that customers returned to them within the fourteen-day return
period, or demo products displayed in dealer stores for testing. The expansion of this type of cooperation ensures
that the quantity of high-quality and relatively new goods at Banknote branches and the online store increases at
more favourable prices than if customers bought them new.
In the context of business expansion in Lithuania, the retail business segment plays a significant role because it is
one of two business segments that was introduced at the beginning of the expansion.
As for 2024, the Group expects continued interest from society in fostering a circular economy, thus extending the
life cycle of consumer goods. With the Group’s focus on promoting these principles and customer experience,
DelfinGroup sees great potential in further growth of this segment and has set it as a strategic priority to develop it.
Investor information
DelfinGroup shares are listed on the Baltic Main List in Nasdaq Riga with ISIN code LV0000101806. Shareholders
receive 1 vote per share. On December 31, 2024, a total of 45 406 435 shares were issued, the price of which was
1.076 euros, making the total market capitalization of 48.9 million euros.
Share trading information
2024
2023
Open price, EUR
1.305
1.482
High price, EUR
1.32
1.55
Low price, EUR
1.00
1.22
Last price, EUR
1.076
1.305
Turnover, mEUR
5.50
4.76
Capitalization mEUR
48.86
59.2
P/E ratio
6.55
8.9

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
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Management report (CONTINUED)
In 2024, the share price of DelfinGroup decreased by 17.6%, while the OMX Baltic Benchmark GI index increased
by 1.5%. The share price was mainly affected by the geopolitical and economic environment and the public share
offering, where part of the largest shareholders sold part of their stake at a discount. In addition, DelfinGroup
shareholders received dividends with a total yield of 7.6%. Furthermore, share turnover in 2024 grew by 15.5%
compared to 2023. The below chart represents DelfinGroup and OMX Baltic Benchmark GI index price changes, as
well as DelfinGroup share turnover.
To ensure increased number of shares in a free public circulation and to diversify family investment portfolio, from
20 May to 3 June 2024, one of the largest DelfinGroup shareholders AS ALPPES Capital and SIA Curiosity Capital,
held public share offers for DelfinGroup shares. As a result, more than 1,000 investors from all over Baltics
subscribed to 8,293,780 shares for 9 million euros which represented 92% of the offer volume. Similar as in previous
share offerings and the initial public offering, the highest interest came from Estonian investors, followed by Latvia
and Lithuania. The share price of one share in the offering was EUR 1.09.
0
30 000
60 000
90 000
120 000
150 000
60%
70%
80%
90%
100%
110%
03.01.2022 03.02.2022 03.03.2022 03.04.2022 03.05.2022 03.06.2022 03.07.2022 03.08.2022 03.09.2022 03.10.2022 03.11.2022 03.12.2022 03.01.2023 03.02.2023 03.03.2023 03.04.2023 03.05.2023 03.06.2023 03.07.2023 03.08.2023 03.09.2023 03.10.2023 03.11.2023 03.12.2023 03.01.2024 03.02.2024 03.03.2024 03.04.2024 03.05.2024 03.06.2024 03.07.2024 03.08.2024 03.09.2024 03.10.2024 03.11.2024 03.12.2024
Share price changes and turnover
Turnover, EUR DelfinGroup share OMX Baltic Benchmark GI

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
16 / 59
Management report (CONTINUED)
As of 31 December 2024, DelfinGroup had 9 266 registered shareholders. Majority of DelfinGroup are from the Baltic
states and are private individuals.
In 2024, DelfinGroup continued to pay dividends following the dividend policy approved by shareholders. As a result,
shareholders received quarterly dividends of up to 50% of the net profit of the previous quarter. In total, shareholders
received four quarterly dividend payments and one annual dividend payment in 2024. In total five dividend payments.
Dividend data
2024
2023
Dividends paid to shareholders, mEUR
3.7
3.5
Dividends per share paid to shareholders, EUR
0.0821
0.0771
Earnings per share, EUR
0.160
0.146
Dividend yield
7.6%
5.9%
Last year, DelfinGroup continued to actively pursue various bond transaction such as new issuances and bond listing
on stock-exchange.
From September 2 to 16, Baltic retail and institutional investors had the opportunity to participate in DelfinGroup
public bond issue. It was offered to purchase the Company's bonds for 15 million euros with a fixed annual interest
rate of 10%, monthly interest payments and a maturity of four years. The bonds are unsecured with a nominal value
of 100 euros per bond. The total demand for bonds reached 22.3 million euros from more than 2,700 retail and
institutional investors, which exceeded the initial bond offer by 1.5 times. Numerically, most of the 2,700 investors
came from Estonia. However, by investment amount, approximately 60% of all demand came directly from Latvian
investors. On 25 September 2024, the bonds were listed on the Nasdaq Baltic Regulated Market Corporate bond
list.
As a result of the successful public bond issue, the Company's existing unsecured bonds ISIN LV0000850055 for
EUR 10 million with a coupon rate of 8.75% + 3M EURIBOR were redeemed on 25 September 2024. The existing
bonds were redeemed from the raised funds, and a part of Mintos liabilities were refinanced, thus optimising the
Group's financing costs.
25,3%
69,9%
4,1%
0,7%
Shareholder geography by count
Latvia Estonia Lithuania Other countries
74,4%
19,4%
1,0%
5,2%
Share ownership per country
Latvia Estonia Lithuania Other countries
8,5%
91,5%
Shareholder status by count
Legal entities Natural persons
73,5%
26,5%
Shareholder ownership by status
Legal entities Natural persons

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
17 / 59
Management report (CONTINUED)
Also in 2024 DelfinGroup issued new subordinated bonds. The bonds are offered as a private placement with a
minimum investment of EUR 100,000. The coupon rate of the bonds is set at 11.00% + 3M EURIBOR with maturity
on 25 May 2029. The issuance of the subordinated bonds ensures the long-term strengthening of the Group's capital
structure, compliance with financial covenants and diversification.
On 7 November, DelfinGroup launched the listing of unsecured and subordinated bonds on the Nasdaq First North
alternative market. These bonds were previously available only to a limited number of investors in private placements
and are now available for free trading. By listing unsecured and subordinated bonds on the stock exchange,
DelfinGroup provides greater liquidity to existing and potential investors. The unsecured bonds (ISIN:
LV0000860146) have been issued for EUR 15 million with an interest rate of 9% + 3M EURIBOR. The nominal value
of each bond is EUR 1,000, and its maturity date is 25 November 2026. The subordinated bonds (ISIN:
LV0000802700) have been issued for EUR 5 million with an interest rate of 11.5% + 3M EURIBOR and a nominal
value of EUR 1,000 per bond. The maturity date of these bonds is 25 July 2028.
ISIN
Nominal value of
bonds issued,
EUR
Maturity
Coupon
List
LV0000802718
15 000 000
25.02.2026
9.00% + 3M
EURIBOR
Nasdaq Riga First North
LV0000860146
15 000 000
25.11.2026
9.00% + 3M
EURIBOR
Nasdaq Riga First North
LV0000802700
5 000 000
25.07.2028
11.50% + 3M
EURIBOR
Nasdaq Riga First North
LV0000803914
15 000 000
25.09.2028
10.00%
Nasdaq Baltic Regulated
market
LV0000870145
4 000 000
25.05.2029
11.00% + 3M
EURIBOR
Private placement
To provide financing for the development of the loan portfolio, DelfinGroup continued to use the Mintos investment
platform, with the help of which investors from more than a hundred countries invested in the loans issued by the
Group. DelfinGroup has been attracting financing with the help of Mintos since 2016, and during this time,
DelfinGroup has managed to attract investments of more than 400 million euros. As a result, the balance of
DelfinGroup liabilities on the Mintos platform as of December 31, 2024, amounted to 24.3 million euros.
Branches
As at 31 December 2024, the Group had 95 branches, 88 in Latvia and 7 in Lithuania (31.12.2023 - 96 branches,
91 in Latvia and 5 in Lithuania).
Risk management
The Group is not exposed to foreign exchange rate risk because the basic transaction currency is the Euro. The
funding of the Group consists of both fixed rate and floating rate borrowings, so the Group is exposed to variable
interest rate risk. Accurate application of the prudent strategies chosen has allowed the Group to successfully
manage its financial risks, particularly the liquidity and credit risk. All Group transactions are performed in Latvia, the
Group has no counterparties in Russia and Belarus thus the impact of the war in Ukraine and the associated
sanctions has insignificant effect on the Company’s operations. For more details regarding risk management refer
to Note 2 Material accounting Policies section s financial risk management.
Distribution of the profit proposed by the Company
In accordance with the Dividend Policy AS DelfinGroup has distributed 50% of the Group's 2024 profit. The
Management Board will make a proposal on remaining profit allocation when convening for the annual shareholders'
meeting.
The Corporate Governance Report and the Remuneration Report for 2024 has also been submitted to AS Nasdaq
Riga together with this separate and consolidated Annual Financial Report for year ended 31 December 2024 by
AS DelfinGroup.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
18 / 59
Statement of profit or loss for the year ended 31 December 2024
Group
Group
Company
Company
2024
2023
2024
2023
Notes
EUR
EUR
EUR
EUR
Net sales
(3)
10 628 152
9 215 700
10 503 640
9 272 982
Cost of sales
(4)
(7 027 633)
(6 086 190)
(6 968 071)
(6 144 670)
Interest income and similar
income
(5)
52 325 856
41 207 451
40 406 565
32 007 780
Interest expenses and similar
expenses
(6)
(10 910 717)
(8 578 969)
(9 791 353)
(7 072 152)
Credit loss expenses
(16)
(15 103 709)
(10 686 504)
(9 470 766)
(6 489 985)
Gross profit
29 911 949
25 071 488
24 680 015
21 573 955
Selling expenses
(7)
(11 002 500)
(8 746 836)
(9 869 722)
(8 344 665)
Administrative expenses
(8)
(9 339 527)
(7 727 436)
(8 478 580)
(7 301 263)
Other operating income
181 333
75 251
180 387
75 549
Other operating expenses
(577 085)
(382 832)
(473 137)
(381 853)
Profit before corporate
income tax
9 174 170
8 289 635
6 038 963
5 621 723
Income tax expenses
(9)
(1 897 964)
(1 661 664)
(1 231 542)
(1 114 306)
Net profit
7 276 206
6 627 971
4 807 421
4 507 417
Basic earnings per share
(10)
0.160
0.146
0.106
0.099
Diluted earnings per share
(10)
0.160
0.146
0.106
0.099
Notes on pages from 23 to 59 are an integral part of these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
19 / 59
Balance sheet as at 31 December 2024
Group
Group
Company
Company
Assets
31.12.2024
31.12.2023
31.12.2024
31.12.2023
(restated, Note 2)
(restated, Note 2)
Non-current assets:
Notes
EUR
EUR
EUR
EUR
Intangible assets:
Patents, licences, trademarks and
similar rights
9 302
13 946
9 302
13 946
Internally developed software
903 339
799 156
903 339
799 156
Other intangible assets
1 138 552
769 917
1 135 879
766 531
Goodwill
127 616
127 616
-
-
Work in progress internally
developed software
83 935
31 678
83 935
31 678
Advances for intangible assets
35 523
125 044
35 523
125 044
Total intangible assets
(11)
2 298 267
1 867 357
2 167 978
1 736 355
Property, plant and equipment:
Land, buildings and structures
173 539
174 597
173 539
174 597
Leasehold improvements
314 740
315 442
274 661
277 454
Right-of-use assets
2 652 848
2 887 270
2 289 933
2 618 070
Other fixtures and fittings, tools and
equipment
441 804
322 104
341 870
258 834
Total property, plant and equipment
(12;13)
3 582 931
3 699 413
3 080 003
3 328 955
Non-current financial assets:
Investments in related companies
(14)
-
-
1 130 000
980 000
Loans to related companies
(28)
-
-
9 801 915
1 577 116
Loans and receivables
(16)
91 455 715
66 686 257
65 904 480
47 590 888
Deferred income tax assets
(9)
154 640
-
-
-
Total non-current financial assets
91 610 355
66 686 257
76 836 395
50 148 004
Total non-current assets
97 491 553
72 253 027
82 084 376
55 213 314
Current assets:
Inventories:
Finished goods and goods for sale
3 989 843
3 390 882
3 141 628
3 199 603
Total inventories
(15)
3 989 843
3 390 882
3 141 628
3 199 603
Receivables:
Loans and receivables
(16)
22 018 048
22 339 708
17 668 708
20 180 739
Loans to related companies
(28)
-
-
425 072
398 971
Term deposits with banks
999 900
454 500
999 900
454 500
Other receivables
615 737
913 637
412 581
572 419
Total receivables
23 633 685
23 707 845
19 506 261
21 606 629
Deferred expenses
243 398
235 250
238 142
163 424
Cash and cash equivalents
(17)
1 644 490
5 474 070
1 038 915
4 460 294
Total current assets
29 511 416
32 808 047
23 924 945
29 429 950
Total assets
127 002 969
105 061 074
106 009 321
84 643 264
Notes on pages from 23 to 59 are an integral part of these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
20 / 59
Balance sheet as at 31 December 2024
Group
Group
Company
Company
Liabilities and equity
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Equity:
Notes
EUR
EUR
EUR
EUR
Share capital
(18)
4 540 644
4 537 751
4 540 644
4 537 751
Share premium
(18)
6 890 958
6 890 958
6 890 958
6 890 958
Other capital reserves
(20)
223 404
169 812
223 404
169 812
Retained earnings:
(19)
13 273 699
9 723 592
4 422 716
3 341 395
Total equity
24 928 705
21 322 113
16 077 722
14 939 916
Liabilities:
Long-term liabilities:
Bonds issued
(21)
47 513 867
26 862 004
47 513 867
26 862 004
Loans from credit institutions
(22)
5 673 103
6 406 925
5 673 103
6 406 925
Other borrowings
(23)
13 901 453
14 904 405
6 902 394
5 652 280
Lease liabilities for right-of-use assets
(13)
2 219 336
2 337 138
1 924 398
2 115 875
Total long-term liabilities
69 307 759
50 510 472
62 013 762
41 037 084
Short-term liabilities:
Bonds issued
(21)
5 459 248
13 404 540
5 459 248
13 404 540
Loans from credit institutions
(22)
11 715 582
887 067
11 715 582
887 067
Other borrowings
(23)
10 399 105
14 505 929
6 714 442
10 715 028
Lease liabilities for right-of-use assets
(13)
734 251
831 318
653 740
784 992
Trade payables
934 352
1 011 347
857 521
933 489
Debts to related undertakings
-
-
5 316
-
Taxes and social insurance
(24)
505 972
393 498
486 996
381 528
Income tax liabilities
(24)
1 418 070
996 770
608 762
437 643
Accrued liabilities
1 599 925
1 198 020
1 416 230
1 121 977
Total short-term liabilities
32 766 505
33 228 489
27 917 837
28 666 264
Total liabilities
102 074 264
83 738 961
89 931 599
69 703 348
Total liabilities and equity
127 002 969
105 061 074
106 009 321
84 643 264
Notes on pages from 23 to 59 are an integral part of these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
21 / 59
Statement of changes in equity of the Group
for the year ended 31 December 2024
Share capital
Share
Other capital
Retained
Total
premium
reserves
earnings
Notes
EUR
EUR
EUR
EUR
EUR
As at 31 December 2022
4 531 959
6 890 958
93 058
6 589 761
18 105 736
Profit for the reporting period
-
-
-
6 627 971
6 627 971
Dividends paid
(19)
-
-
-
(3 494 140)
(3 494 140)
Share-based payments
(18)
-
-
76 754
-
76 754
Exercise of share options
(18)
5 792
-
-
-
5 792
As at 31 December 2023
4 537 751
6 890 958
169 812
9 723 592
21 322 113
Profit for the reporting period
-
-
-
7 276 206
7 276 206
Dividends paid
(19)
-
-
-
(3 726 100)
(3 726 100)
Share-based payments
(18)
-
-
53 592
-
53 592
Exercise of share options
(18)
2 893
-
-
-
2 893
As at 31 December 2024
4 540 644
6 890 958
223 404
13 273 699
24 928 705
Statement of changes in equity of the Company’s
for the year ended 31 December 2024
Share capital
Share
premium
Other capital
reserves
Retained
earnings
Total
Notes
EUR
EUR
EUR
EUR
EUR
As at 31 December 2022
4 531 959
6 890 958
93 058
2 328 118
13 844 093
Profit for the reporting period
-
-
-
4 507 417
4 507 417
Dividends paid
(19)
-
-
-
(3 494 140)
(3 494 140)
Share-based payments
(18)
-
-
76 754
-
76 754
Exercise of share options
(18)
5 792
-
-
-
5 792
As at 31 December 2023
4 537 751
6 890 958
169 812
3 341 395
14 939 916
Profit for the reporting period
-
-
-
4 807 421
4 807 421
Dividends paid
(19)
-
-
-
(3 726 100)
(3 726 100)
Share-based payments
(18)
-
-
53 592
-
53 592
Exercise of share options
(18)
2 893
-
-
-
2 893
As at 31 December 2024
4 540 644
6 890 958
223 404
4 422 716
16 077 722
Notes on pages from 23 to 59 are an integral part of these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
22 / 59
Cash flows statement for the year ended 31 December 2024
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Cash flow from operating activities
Notes
(restated, Note 2)
(restated, Note 2)
Profit before corporate income tax
9 174 170
8 289 635
6 038 963
5 621 723
Adjustments for non-cash items:
a) depreciation and amortisation
(11;12)
961 530
515 193
932 649
512 913
b) depreciation of right-of-use assets
(12)
884 689
806 872
810 638
804 964
c) credit loss expenses
(16)
15 103 709
10 686 504
9 470 766
6 489 985
d) share-based payment expense
53 592
76 754
53 592
76 754
e) interest income and similar income
(5)
(52 325 856)
(41 207 451)
(40 406 565)
(32 007 780)
f) interest expenses and similar expenses
(6)
10 910 717
8 578 969
9 791 353
7 072 152
Profit before adjustments of working capital and
short-term liabilities
(15 237 449)
(12 253 524)
(13 308 604)
(11 429 289)
Change in operating assets/liabilities:
a) (Increase) on loans and receivables and other
debtors
(38 597 198)
(31 043 519)
(24 863 644)
(23 624 095)
b) (Increase)/ decrease on inventories
(598 961)
(1 101 102)
57 975
(909 823)
c) (Decrease)/ increase on trade payable and
accrued liabilities
1 510 779
709 931
1 374 297
639 300
Gross cash flow from operating activities
(52 922 829)
(43 688 214)
(36 739 976)
(35 323 907)
Interest received
50 966 715
39 784 160
39 542 630
30 636 421
Interest paid
(11 499 348)
(9 750 889)
(10 379 984)
(8 244 072)
Corporate income tax payments
(1 797 140)
(777 991)
(1 380 690)
(777 846)
Net cash flow from operating activities
(15 252 602)
(14 432 934)
(8 958 020)
(13 709 404)
Cash flow from investing activities
Acquisition of property, plant and equipment
(12)
(416 284)
(441 148)
(348 932)
(340 222)
Acquisition of intangible assets
(11)
(1 099 552)
(1 285 115)
(1 099 552)
(1 284 515)
Loans issued (related companies)
-
-
(11 150 042)
(4 708 216)
Loans repaid (related companies)
-
-
2 749 142
6 902 848
Term deposits placed
(545 400)
(454 500)
(545 400)
(454 500)
Net cash flow from investing activities
(2 061 236)
(2 180 763)
(10 394 784)
115 395
Cash flow from financing activities
Proceeds of exercise of share options
2 893
5 792
2 893
5 792
Loans received
(27)
22 874 316
26 078 953
17 083 772
15 997 114
Loans repaid
(27)
(17 106 197)
(23 921 661)
(8 956 349)
(17 505 181)
Bonds issued
(27)
23 512 000
36 954 000
23 512 000
36 954 000
Redemption of bonds
(27)
(11 000 000)
(14 943 000)
(11 000 000)
(14 943 000)
Repayment of lease liabilities
(1 072 654)
(961 206)
(984 791)
(961 206)
Dividends paid
(3 726 100)
(3 494 140)
(3 726 100)
(3 494 140)
Net cash flow from financing activities
13 484 258
19 718 738
15 931 425
16 053 379
Net cash flow of the reporting period
(3 829 580)
3 105 041
(3 421 379)
2 459 370
Cash and cash equivalents at the beginning of
the reporting period
5 474 070
2 369 029
4 460 294
2 000 924
Cash and cash equivalents at the end of the
reporting period
(17)
1 644 490
5 474 070
1 038 915
4 460 294
Notes on pages from 23 to 59 are an integral part of these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes
(1) Changes in material accounting policies
Several new standards or amendments to standards are effective for 2024:
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
• Non-current Liabilities with Covenants (Amendments to IAS 1)
• Lease liability in a Sale and Leaseback (Amendments to IFRS 16)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
The Group has no transactions that are affected by the newly effective standards or amendments to standards, or its accounting policies are already
consistent with the new requirements.
(2) Material accounting policies
(a) Basis of preparation
These financial statements have been prepared based on the accounting policies and measurement principles as set out below.
These financial statements have been prepared in accordance with the IFRS Accounting Standards (IFRS) as adopted by the European Union (EU).
The financial statements have been prepared on a historical cost basis, except for pawn loans that have been measured at fair value.
The preparation of financial statements in accordance with IFRS requires the use of significant estimates and assumptions that affect the reported
amounts of assets and liabilities, as well as the information on contingent assets and liabilities at the balance sheet date and the revenues and costs
for the reporting period. Although these estimates are based on the information available to the management regarding the current events and actions,
the actual results may differ from the estimates used. Critical assumptions and judgements are described in the relevant sections of the Notes to the
financial statements.
These annual financial statements are prepared and disclosed on a consolidated basis and on a standalone basis. The following subsidiaries are
included in the consolidation: SIA ViziaFinance (100%), UAB DelfinGroup LT (100%) and SIA DealShoq (100%) for the period ended 31 December
2024.
The Executive Board approved these separate and consolidated financial statements for issue on 25 April 2025. Shareholders of the Company have
the power to amend the financial statements after their issue, if necessary.
Standards issued but not yet effective
A number of new standards or amendments to standards are effective (some of which are not yet been endorsed by EU) for annual periods beginning
after 1 January 2024 and earlier application is permitted; however, the Group has not early adopted the new standards or amended standards in
preparing these consolidated financial statements and does not plan to adopt any of these standards early.
The Group is in progress of evaluating the potential effect if any of changes arise from these following new standards and interpretations.
Effective date
New accounting standard or amendments
EU endorsed
1 Jan 2025
Lack of Exchangeability (Amendments to IAS 21);
12 November 2024
Amendments to the Classification and Measurement of Financial Instruments (Amendments to
1 Jan 2026
In progress
IFRS 9 and IFRS 7);
Annual Improvements to IFRS Accounting standards Volume 11 (issued on 18 July 2024)
1 Jan 2026
In progress
IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024)
1 Jan 2027
In progress
1 Jan 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024
In progress
Restatement in comparative figures due to correction of errors
The Management has identified classification error on term deposits with banks while preparing Group’s financial statements. The error relates to
incorrect classification of term deposits with banks with deposit term above 3 months as cash and cash equivalents. The error resulted in
overstatement of the Group’s and the Company’s cash and cash equivalents by EUR 454 500 in balance sheet as of 31 December 2023.
Balance sheet (Assets) extract
Group
Company
Group
Company
Before restatement
Restatement
After restatement
31 December 2023
31 December 2023
Term deposits with banks
-
-
454 500
454 500
454 500
Total receivables
23 253 345
21 942 325
454 500
23 707 845
21 606 629
Cash and cash equivalents
5 928 570
2 369 029
(454 500)
5 474 070
4 460 294
No other balance sheet or any profit or loss position of comparative information was affected.
23 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(2) Material accounting policies (continued)
(a) Basis of preparation (continued)
The abovementioned error resulted in incorrect reflection of few cash flow statement positions. Please see bellow comparative figures affected and
remeasured in the Group’s and the Company’s Cash flow statement for the year ended 31 December 2023. No other cash flow position of comparative
figures were remeasured.
Cash flows statement extract
Group
Company
Group
Company
Before restatement
Restatement
After restatement
2023
2023
Change in operating assets/liabilities:
c) (Decrease)/ increase on trade payable and
accrued liabilities
1 164 431
1 093 800
(454 500)
709 931
639 300
Gross cash flow from operating activities
(43 233 714)
(34 869 407)
(454 500)
(43 688 214)
(35 323 907)
Net cash flow from operating activities
(13 978 434)
(13 254 904)
(454 500)
(14 432 934)
(13 709 404)
Cash flow from investing activities
Term deposits placed
-
-
(454 500)
(454 500)
(454 500)
Net cash flow from investing activities
(1 726 263)
569 895
(454 500)
(2 180 763)
115 395
Cash flow from financing activities
Term deposits
(454 500)
(454 500)
454 500
-
-
Net cash flow from financing activities
19 264 238
15 598 879
454 500
19 718 738
16 053 379
Net cash flow of the reporting period
3 559 541
2 913 870
(454 500)
3 105 041
2 459 370
Cash and cash equivalents at the beginning of
the reporting period
2 369 029
2 000 924
-
2 369 029
2 000 924
Cash and cash equivalents at the end of the
reporting period
5 928 570
4 914 794
(454 500)
5 474 070
4 460 294
No other financial statement comparative figures were remeasured.
(b) Consolidation principles
Subsidiaries, which are those entities which are controlled by the Group, are consolidated. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Subsidiaries are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date that control
ceases. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated in full; unrealised losses
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, accounting policies for
subsidiaries have been changed to ensure consistency with the policies adopted by the Group.
(c) Recognition of revenue and expenses
- Net sales
Revenue from contracts with customers is recognized when or as the Group satisfies a performance obligation by transferring control of a promised
good or service to a customer. The transfer of control is based mainly on transferring risks and rewards according to the delivery terms. The Group
principally satisfies its performance obligations at a point in time; the amounts of revenue recognized relating to performance obligations satisfied over
time are not significant. When, or as, a performance obligation is satisfied, the Group recognizes as revenue the amount of the transaction price that is
allocated to that performance obligation.
The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for the promised goods or services. The
transaction price is allocated to the performance obligations in the contract based on standalone selling prices of the goods or services promised.
Revenue is presented net of indirect sales taxes such as value added tax, penalties and discounts.
Income from sale of goods and precious metals contains sale of non-durable goods and precious metals at Group’s branch network and on-line shop.
For sales of goods and precious metals to retail customers, revenue is recognised when control of the goods has transferred, being at the point the
customer purchases the goods at the retail outlet or when the goods have been shipped in case of on-line sales. Payment of the transaction price is
due immediately at the point the customer purchases the goods.
Other income includes revenue from the provision of pawnshop services – commission income on storage and sale of non-performing pawn loan
collateral. The performance obligation is satisfied over-time and payment is generally due when repaying the pawn loan for performing loans or upon
sale of collateral for non-performing loans.
24 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
25 / 59
Notes (continued)
(2) Material accounting policies (continued)
(c) Recognition of revenue and expenses (continued)
- Interest income and similar income
The Group calculates interest revenue on debt financial assets measured at amortized cost by applying the EIR to the gross carrying amount of financial
assets other than credit-impaired assets. EIR is the rate that exactly discounts estimated future cash payments or receipts through the expected life of
the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or financial liability. The calculation
takes into account all contractual terms of the financial instrument and includes any fees or incremental costs that are directly attributable to the
instrument and are an integral part of the effective interest rate, but not future credit losses. The carrying amount of the financial asset or financial
liability is adjusted if the Group revises its estimates of payments or receipts. The adjusted carrying amount is calculated based on the original effective
interest rate and the change in carrying amount is recorded as interest revenue or expense.
When a financial asset becomes credit-impaired, the Group calculates interest revenue by applying the effective interest rate to the net amortised cost
of the financial asset. If the financial assets cures and is no longer credit-impaired, the Group reverts to calculating interest revenue on a gross basis.
For purchased or originated credit-impaired (POCI) financial assets, the Group calculates interest revenue by calculating the credit-adjusted EIR and
applying that rate to the amortised cost of the asset. The credit adjusted EIR is the interest rate that, at original recognition, discounts the estimated
future cash flows (including credit losses) to the amortised cost of the POCI assets.
The Group calculates interest income on pawn loans by applying the nominal interest rate to the gross carrying amount of pawn loan asset. Interest
income is calculated for the performing pawn loan portfolio and is stopped at the moment when pawn loan becomes non-performing.
- Interest expenses and similar expenses
The effective interest rate of a financial liability is calculated on initial recognition of financial liability. In calculating interest expense, the effective interest
rate is applied to the gross carrying amount of the amortised cost of the liability. The effective interest rate is revised as a result of periodic re-estimation
of cash flows of floating-rate instruments to reflect movements in market rates of interest.
- Other income
Other income is recognised based on accruals principle and when the services have been rendered.
- Expenses
Expenses are recognised based on accruals principle in the period of origination, irrespective of the moment of payment.
(d) Foreign currency
All transactions in foreign currencies are translated into the functional currency using the exchange rates at the date of the respective transaction.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the income statement of the respective period. At the balance sheet date the
rates set by the Bank of Latvia were:
31.12.2024
31.12.2023
1 EUR
1 EUR
USD
1.04
1.10
(e) Fair value measurement
‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a
liability reflects its non-performance risk.
When one is available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is
regarded as ‘active’ if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing
basis.
If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and
minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account
in pricing a transaction.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the fair value of the consideration
given or received. If the Group determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced
neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique for which any unobservable inputs are
judged to be insignificant in relation to the difference, then the financial instrument is initially measured at fair value, adjusted to defer the difference
between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate
basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.
Where, in the opinion of the Management, the fair values of financial assets and liabilities differ materially from their book values such fair values are
separately disclosed in the notes to the accounts. See also note 32.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
26 / 59
Notes (continued)
(2) Material accounting policies (continued)
(f) Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
(g) Employee benefits
- Short-term employee benefits
Short‑term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group
has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be
estimated reliably.
- Share-based payment arrangements
The grant‑date fair value of equity‑settled share‑based payment (SBP) arrangements granted to employees is generally recognised as an expense,
with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the
number of awards for which the related service and non‑market performance conditions are expected to be met, such that the amount ultimately
recognised is based on the number of awards that meet the related service and non‑market performance conditions at the vesting date. For
share‑based payment awards with non‑vesting conditions, the grant‑date fair value of the share‑based payment is measured to reflect such conditions
and there is no true‑up for differences between expected and actual outcomes.
(h) Intangible assets (including goodwill)
All intangible assets are initially measured at cost. Intangible assets are recorded at historic cost net of amortization and permanent diminution in value.
The Group has a detailed intangible assets capitalisation policy covering accounting for development projects. The Group incurs costs for development
of software and similar items, which may be capitalized. Capitalized expenditure can be either purchased or internally developed. Only those assets
are capitalised that are separately identifiable, they are controlled by the Group, for which probable future economic benefits associated with the item
will flow to the Group, and cost exceeds the minimum threshold (150 EUR) set by the Group shall be recognized. No intangible asset costs arising from
the research phase of a project are capitalized. Expenditure on research is expensed when incurred.
Amortisation commences once the item is in the location and conditions necessary for it to be capable of operating in the manner intended by
management and has been accepted by the business owner. Amortisation is calculated on a straight-line basis to write down each asset to its estimated
residual value over its estimated useful life as follows:
years
Patents, trademarks and similar rights
3 – 5
Other intangible assets (including software)
3 – 5
Internally developed software
4
Goodwill is initially measured at cost and arising on the acquisition of subsidiaries being the excess of the fair value of the aggregate consideration
transferred and the amount recognised for non-controlling interests, over the net fair value of the identifiable assets acquired and liabilities assumed. If
this consideration is lower than the fair value of the net assets of the subsidiary acquired, the gain is recognised in profit or loss statement immediately.
The recognised goodwill is allocated to cash-generating units and carried at cost less accumulated impairment losses, if any. The Group tests goodwill
for impairment at least annually and whenever there are indications that goodwill may be impaired. Any impairment expense is recognised immediately
as an expense in profit or loss statement. If subsidiaries are disposed, gains or losses on the disposal include the carrying amount of goodwill relating
to the subsidiary sold.
The residual values, remaining useful lives and methods of amortisation are reviewed and, if required, adjusted annually.
(i) Property, plant and equipment
All property, plant and equipment are initially measured at cost. Property, plant and equipment are recorded at historic cost net of depreciation and
permanent diminution in value. Depreciation is calculated on a straight-line basis to write down each asset to its estimated residual value over its
estimated useful life as follows:
years
Buildings and structures
20
Other fixed assets
3 – 5
Leasehold improvements
1 – 19
Right-of-use premises
1 – 19
Right-of-use vehicles
3 – 4
The residual values, remaining useful lives and methods of depreciation are reviewed and, if required, adjusted annually. Property, plant and equipment
recognition is terminated in case of its liquidation or when no future benefits are expected in connection with the utilisation of the respective asset. Any
profit or loss connected with the termination of recognition (calculated as difference between the disposal gains and net book value as at the moment
of derecognition), is recognised in the profit or loss account in the period when derecognition occurs. Leasehold improvements are written down on a
straight-line basis over the shorter of the estimated useful life of the leasehold improvement and the term of the lease. Current repairs and maintenance
costs are charged to profit and loss account in the period when the respective costs are incurred.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
27 / 59
Notes (continued)
(2) Material accounting policies (continued)
(j) Investments in the subsidiaries companies in the separate financial statements
In the financial statements the investments in subsidiaries companies (SIA ViziaFinance, UAB DelfinGroup LT and SIA Dealshoq as at 31 December
2024) are carried at cost less impairment. Cost represents consideration paid for acquisition of subsidiaries as well as additional contributions to share
capital of subsidiaries. Impairment is defined as the difference between the cost and recoverable amount. Recoverable amount is the higher of the
respective asset's fair value less the costs to sell and the value in use.
(l) Inventories
Inventories are stated at the lower of cost or net realisable value. Inventories are measured using the actual cost method. The Group assesses at each
balance sheet date whether there is objective evidence that inventories are impaired and makes provisions for slow-moving or damaged inventories.
Inventories loss is recognised in the period such loss is identified, writing off the relevant inventory values to the period profit and loss account.
Inventories are measured at the lower of cost or net realisable value.
(m) Trade and other receivables
Unsecured loans
Accounts receivable comprise loans and other receivables (other debtors, advances and deposits) that are non-derivative financial assets with fixed
or determinable payments. All loans and receivables are recognised when cash is advanced to borrowers and derecognised on repayments. Loans
are initially measured at their fair value. The Group subsequently measures consumer loans at amortised cost if both of the following conditions are
met:
► The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows;
► The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding (SPPI).
The Group is using a model for the recognition of impairment losses – the expected credit losses (ECL) model. There is a ‘three stage’ approach which
is based on the change in credit quality of financial assets since initial recognition. In practice, the rules mean that entities will have to record an
immediate loss equal to the 12-month ECL on initial recognition of financial assets that are not credit impaired (or lifetime ECL for trade receivables).
Where there has been a significant increase in credit risk, impairment is measured using lifetime ECL rather than 12-month ECL.
The mechanics of the ECL calculations are outlined below and the key elements are as follows:
• PD
The Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only
happen at a certain time over the assessed period if the facility has not been previously derecognised and is still in the
portfolio.
• EAD
The Exposure at Default is an estimate of the exposure at a future default date, taking into account expected changes in
the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or
otherwise, expected drawdowns on committed facilities, and accrued interest from missed payments.
• LGD
The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based
on the difference between the contractual cash flows due and those that the lender would expect to receive, including
from the realisation of any collateral. It is usually expressed as a percentage of the EAD.
The expected credit loss is calculated as a function of PD, the exposure at default EAD and the loss given default LGD.
• PD ratio is calculated as proportion of historic loan portfolio amount of loans that reaches the number of past due more than 90 days or have
been sold in debt sales.
• LGD calculation is based on recovered funds for loans over 90 days or loans that have been sold in debt sales. Recovered funds are
discounted using the monthly effective interest rate.
The IFRS 9 impairment model uses a three-stage approach depending on whether the claim is performing or not and if the claim is performing, whether
a significant increase in credit risk has occurred.
1. Stage 1 – 12-month ECL applies to all existing claims, which have no signs of significant increase in credit risk. ECL will be computed using
12-month PD that represents the probability of default occurring over the next 12 months. For those assets with a remaining maturity of less
than 12 month, a PD is used that corresponds to remaining maturity.
2. Stage 2 – applies to claims, which have sign/(s) of a significant increase in credit risk (delay days > 30 days but less than or equal to 90
days). The standard requires the computation of ECL based on lifetime PD that represents the probability of default occurring over the
remaining estimated life of the financial asset. Provisions are higher in this stage because of an increase in risk and the impact of a longer
time horizon being considered compared to 12 months in Stage 1.
3. Stage 3 – Financial assets are recognized in Stage 3 when there is objective evidence that the loan is impaired (delay days > 90 days).
Similar to Stage 2, the allowance for credit losses will continue to capture the lifetime ECL.
A settlement delay of 30 or more days is assessed based on their actual occurrence. The rest of the signs of increased risk and their impact have to be
analysed case by case and the change in a customer`s risk level has to be made based on management`s judgement. This assessment is symmetrical
in nature, allowing the credit risk of financial assets to move back to Stage 1 if the increase in credit risk has decreased since origination and is no
longer deemed to be significant.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
28 / 59
Notes (continued)
(2) Material accounting policies (continued)
(m) Trade and other receivables (continued)
Default or the possibility of it occurring in the future and can be divided into the following events:
• Improbability of receiving payments. Based on objective evidence, it may be presumed that the client will be unable to settle all of the financial
obligations and the situation cannot be solved satisfactorily.
• Payment delay. The contract is deemed to be non-performing if the client is no longer able or willing to fulfil payment obligations, e.g. upon
any of the following events: (a) payments are past due for more than 90 days; (b) the client does not respond to the payment reminders and
the desire to contact; (c) the client is bankrupt or deceased; (d) identity theft has been identified, i.e. misuse of the credit receiver`s identity.
The Group continuously monitors all assets subject to ECLs in order to identify if there has been significant increase in credit risk. If there is an increase,
relevant adjustments to ECL are made.
When loans cannot be recovered, they are written off and charged against allowances for loan impairment losses. They are not written off until all the
necessary legal procedures have been completed and the amount of the loss is finally determined.
The Group signed a contract with a third party for the receivable amounts regular debt sale to assign debtors for loans issued. Losses from these
transactions were recognised in the current period under other operating expenses.
The recoverability of other debtors, advances and deposits paid is valued on individual basis if there are any indications of net book value of the asset
exceeding its recoverable amount.
Any ECL on financial assets other than loan portfolio and loans to related companies is not significant.
Pawn loans
Pawn loans are non-recourse loans secured against a collateral (the pledge). If the customer does not redeem the collateral by repaying the secured
loan before the end of the contract, the Group is entitled to dispose of the goods to cover the outstanding balance of the loan. Pawn loans are recognised
when cash is advanced to borrowers and derecognised on the repayment for performing loans or sale of the collateral for non-performing loans.
Considering that that pawnshop loans do not meet the SPPI criteria, they are initially recognised and subsequently measured at fair value.
The pawn loan portfolio is divided in two categories: performing and non-performing loan portfolios. The performing loan portfolio comprises of loans
that are not yet due or loans that have been extended. The non-performing loan portfolio contains loans that have not been repaid on maturity and the
payment of which depends on the realization of the collateral.
(n) Leases
Group as lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The
Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The
cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of
the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.
Right-of-use assets are subject to impairment testing.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease
term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a
purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which
the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit
in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change
in in-substance fixed lease payments or a change in the assessment of the option to purchase the underlying asset.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
29 / 59
Notes (continued)
(2) Material accounting policies (continued)
(n) Leases (continued)
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less
from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of
equipment that are considered of low value (i.e., below EUR 4.5 thousand). Lease payments on short-term leases and leases of low-value assets are
recognized as expense on a straight-line basis over the lease term.
(o) Taxes
The Group’s tax for the period consists of current and deferred tax. Current tax liabilities for the current and prior periods are measured at the amount
expected to be paid to tax authorities using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date.
Current tax is calculated on the basis of distributed profit or in case of expenses treated as deemed profit distribution (20/80 of the net amount payable
to shareholders).
In 2024 new tax provisions relating to non-bank financial institutions were enacted determining that starting from year 2024 tax surcharge of 20 per cent
from the profit after taxes for previous year shall be calculated and paid after submission of annual report. Therefore, in addition to tax related to profit
distribution starting from year 2024 expenses for tax surcharge are recognized that is calculated as 20 per cent from gained net profit for the reporting
period.
Current tax arising from distributed profit is recognized when the shareholder makes a decision on profit distribution, while tax on deemed profit
distribution and tax surcharge is recognized in income statement in the period for which it is assessed.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their amounts
used for taxation purposes. Deferred tax liabilities are generally recognised for all temporary differences. Deferred tax assets are recognised only to the
extent that it is probable that future taxable profit will be reduced in realising the temporary differences. Such deferred assets and liabilities are not
recognised if the temporary differences are related to goodwill or to the initial recognition of assets or liabilities (other than in a business combination),
the arising of which (during transactions) does not affect either taxable profit or financial profit. Deferred income tax assets are reviewed on the last day
of each reporting period and is reduced to the extent that it is not probable that sufficient taxable profit will be available to the Group for realising of such
assets, to an estimated amount by which the taxable profit will be reduced in future. Deferred tax liabilities and assets are measured using the tax rate
in effect for the year in which the temporary differences are expected to be settled, based on the tax rates (and tax laws) that have been or will be
approved by the end of the reporting period.
Deferred tax assets and liabilities reflect the tax consequences that the Group expects at the end of the reporting period in order to pay or settle its
assets or liabilities.
(p) Borrowings
Initially borrowings are recognised at fair value amounting to the proceeds received net of transaction costs incurred. In subsequent periods, borrowings
are stated at amortised cost which is determined using the effective interest method. The difference between the proceeds received, net of transaction
costs and the redemption value of the borrowing is gradually recognized in the profit or loss over the term of the borrowing.
(q) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, balances of current accounts with banks and short-
term deposits with a maturity term of up to 90 days.
(r) Payment of dividends
Dividends due to the shareholders are recognized in the financial statements as a liability in the period in which the shareholders approve the
disbursement of dividends.
(s) Financial risk management
(s1) Financial risk factors
The activities of the Group expose it to different financial risks:
(s1.1) foreign currency risk;
(s1.2) credit risk;
(s1.3) operational risk;
(s1.4) market risk;
(s1.5) liquidity risk.
The Group's overall risk management is focused on the uncertainty of financial markets and aims to reduce its adverse effects on the Company's
financial indicators. The Chief Financial Officer (CFO) is responsible for financial risk management. CFO identifies, assesses and seeks to find solutions
to avoid financial risks acting in close cooperation with other structural units of the Group.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(2) Material accounting policies (continued)
(s1) Financial risk factors (continued)
(s1.1) Foreign exchange risk
The Group operates mainly in the local market and its exposure to foreign exchange risk is not significant.
(s1.2) Credit risk
The Group has a credit risk concentration based on its operational specifics – issuance of non-secured loans that is connected with an increased risk
of asset recoverability. The Group’s policies are developed in order to ensure maximum control procedures in the process of loan issuance, timely
identification of bad and doubtful debts and adequate provisioning for potential loss.
Regarding loan unsecured loan issuance, the Group has three methods of customer identification: (i) obtaining data that accredits the identity of a
natural person from a credit institution, (ii) verifying the customer's income, (iii) verifying the past and current obligations of the borrower. The Group
compares the information from the application form with the information received from external sources. The Group performs an automated credit
check for those customers who have successfully completed the first four phases of the credit risk underwriting process. Its Risk and Data team has
considerable experience in adding the optimal combination of alternative and traditional data sources, and knowledge of how to use the data collected
for high-quality credit risk underwriting. The Group’s credit check involves a collection of traditional credit bureau data and income information. The
Group collects data from 4-5 external sources to check the borrower’s creditworthiness and calculate the debt-to-income rate.
The Group has developed a linear rule strategy to evaluate each loan application using an automated credit risk underwriting process. The Group’s
credit risk underwriting models are developed by a centralized data science team. The Group develops its credit risk underwriting models based on
information gathered during the customer registration, loan application, customer identification, fraud screening and credit screening phases. The
Groups risk team closely monitors the quality of the data collected, validates, and verifies the completeness of the required data points. The team
ensures that the credit check strategy is aligned with the settings of the credit check model, sets data requirements for each decision step, and
ensures efficient data management. For pawn loans, the evaluation of the collaterals is performed by trained appraisers. The Group has established
an efficient and effective debt collection process and has a dedicated team that adheres to debt collection practices that are fully compliant with local
regulations.
The Group have regular monthly debt sale process developed and signed a contract with a third party for unsecured loans issued which are
outstanding between 30 to 90 days and there are timely identified indications that loans sold could default. For loans that are outstanding more than
90 days separate debt sale agreements are signed. In the case of pawn loans, the collateral is sold in branches or e-shop (the average realization
period of the collateral is 3 months).
The table below shows the maximum exposure to credit risk for the components of the Balance Sheet. Exposures are based on net carrying amounts
as reported in the Balance Sheet. The Group’s maximum credit exposures are shown gross, i.e. without taking into account any collateral or other credit
enhancements.
Maximum exposure
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Loans and receivables
113 473 763
89 025 965
83 573 188
67 771 627
Other debtors
615 737
913 637
412 581
572 419
Cash and cash equivalents
1 644 490
5 474 070
1 038 915
4 460 294
(s1.3) Operational risk
Operational risk is a loss risk due to external factors namely (natural disasters, crimes, etc.) or internal ones (IT system crash, fraud, violation of laws
or internal regulations, insufficient internal control). Operation of the Group carries a certain operational risk which can be managed using several
methods including methods to identify, analyse, report and reduce the operational risk. Also, self-assessment of the operational risk is carried out as
well as systematic approval of new products is provided to ensure the compliance of the products and processes with the risk environment of the activity.
(s1.4) Market risk
The Group is exposed to market risks, basically related to the fluctuations of interest rates between the loans granted and funding received, as well as
demand for the Group’s services fluctuations. The Group’s cash flows related to financing costs to some extent depend on the changes in market rates
of interest. The Group attempts to limit market risks, adequately planning the expected cash flows, diversifying the product range, and fixing funding
resource interest rates. The Group issues loans at fixed rate and has borrowings with a fixed and variable rates. As at 31 December 2024 all bond
emissions (except ISIN LV0000803914), loans from credit institutions and lease contracts amounting to 55 thousand EUR with contracts concluded in
EUR currency are with variable part denominate as 3 month EURIBOR rate, all other interest bearing liabilities are with a fixed interest rate. The interest
rate market risk is considered to be low.
30 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(2) Material accounting policies (continued)
(s1.4) Market risk (continued)
The following table represents the effect in the Group’s and the Company’s profit before tax (over 12-month period) on change in interest rates in by
100 basis points.
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Profit before corporate income tax
-100 basis points scenario
502 624
487 622
461 221
478 056
+100 basis points scenario
(502 624)
(487 622)
(461 221)
(487 056)
(s1.5) Liquidity risk
The Group complies with the prudence principle in the management of its liquidity risk and maintains sufficient funds. The management of the Group
has an oversight responsibility of the liquidity reserves and make current forecasts based on anticipated cash flows. The management of the Group
performs liquidity analysis on a regular basis and ensures adequate gap between short-term liabilities and assets. Most of the Group's liabilities are
long-term liabilities. Based on performed procedures the management is of the opinion that the Group will be able to secure sufficient liquidity by its
operating activities. For analysis of financial liabilities by remaining contractual maturities please see note 33.
(s2) Management of the capital structure
In order to ensure the continuation of the Group's activities, while maximizing the return to stakeholders’ capital management, optimization of the debt
and equity balance is performed. The Group's capital structure consists of bonds issued, third party loans and finance lease liabilities, cash and equity,
comprising issued share capital, retained earnings and share premium. At year-end the ratios were as follows:
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Bonds issued
52 973 115
40 266 544
52 973 115
40 266 544
Loans from credit institutions
17 388 685
7 293 992
17 388 685
7 293 992
Other borrowings
24 300 558
29 410 334
13 616 836
16 367 308
Lease liabilities
2 953 587
3 168 456
2 578 138
2 900 867
Trade payables and accrued liabilities
2 534 277
2 209 367
2 273 751
2 055 466
Debts to related undertakings
-
-
5 316
-
Taxes and social insurance
1 924 042
1 390 268
1 095 758
819 171
Gross debts
102 074 264
83 738 961
89 931 599
69 703 348
Cash and cash equivalents
(1 644 490)
(5 474 070)
(1 038 915)
(4 460 294)
Net debts
100 429 774
78 264 891
88 892 684
65 243 054
Equity
24 928 705
21 322 113
16 077 722
14 939 916
Gross debt / equity ratio
4.09
3.93
5.59
4.67
Net debt / equity ratio
4.03
3.67
5.53
4.37
(t) Significant assumptions and estimates
The preparation of the financial statements requires management to make professional judgments, assumptions and estimates which affect the
application of accounting policies and the reported amounts of assets, liabilities, incomes and expenses. Actual results may differ from these estimates.
Assumptions and estimates based on those assumptions are analysed regularly to identify if changes are required. The changes in accounting estimates
are recognized in the reporting period when the estimates were changed and in all periods that follow.
Impairment losses on loans to customers
The measurement of impairment losses on loans to customers requires judgement, in particular, the estimation of the amount and timing of future cash
flows when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by a number of factors,
changes in which can result in different levels of allowances. The Group’s ECL calculations are outputs of complex models with a number of underlying
assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models that are considered accounting
judgements and estimates include:
31 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
32 / 59
Notes (continued)
(2) Material accounting policies (continued)
(t) Significant assumptions and estimates (continued)
► The Group’s criteria for assessing if there has been a significant increase in credit risk and allocation of loans to Stage 1 or 2;
► identification of unlikeliness to pay criteria and assignment of loans to Stage 3;
► development of ECL models, including the various formulae and the choice of inputs;
► forward-looking macroeconomic information incorporation in the ECL models;
► ECL adjustment due to decrease in debt sales;
► the modelling and calculation of key parameters of the ECL models, including probability of default (PD), loss given default (LGD), and
exposure at default (EAD).
To enhance ECL models the Group uses forward-looking macroeconomic information, which is based on assumptions for the future movement of
different economic drivers and how these drivers will affect each other. As the Group’s major operations are in Latvia all data of macroeconomic
indicators published on monthly basis by Central Statistical Bureau Republic of Latvia was obtained, equalized, and compared with the Group’s year
on year 1–30-day delay to non-delay portfolio. This was used as a proxy for probability of default. Indicators with highest correlation are rise in
unemployment rate and consumer price index (in 2023 salary and number of employed persons aged 15-74). Based on obtained data a regression
model was created, which offers significance of the coefficient of each macroeconomic indicator. To use macroeconomic factor as forward-looking
macroeconomic information adjustment three economic scenarios with distinct economic consequences were used: a base case scenario which
comprises most likely future economic development, a less likely adverse scenario and less likely optimistic scenario. The key variables are summarized
below.
Base case
Adverse
Optimistic
scenario
scenario
scenario
2023
Nominal gross salary (yearly changes)
8.00%
5.20%
10.80%
Number of employed persons aged 15-74
877.7
868.2
887.2
(yearly changes)
2024
Rise in unemployment
6.80%
8.30%
5.30%
Consumer price index
2.50%
1.50%
0.50%
The current implementation, based on an expert judgement, weights base case scenario with 50% likelihood (60% likelihood in 2023), the adverse
scenario at 15% likelihood (25% likelihood in 2023) and the optimistic scenario at 35% likelihood (15% likelihood in 2023). If the weighting of the adverse
scenario was to increase to 35% (45% in 2023), the expected credit loss allowance of the Group would increase by EUR 576 457 (EUR 43 782 as of
31 December 2023) and for the Company by EUR 328 440 as of 31 December 2024 (EUR 25 646 as of 31 December 2023). If the weighting of the
base case scenario was to increase to 100%, the expected credit loss allowance of the Group would increase by EUR 576 457 (decrease by EUR
39 304 as of 31 December 2023) and for the Company by EUR 328 440 as of 31 December 2024 (EUR 23 023 as of 31 December 2023).
Sensitivity analysis of changes in the Group’s ECL key parameters LGD and PD - a 500 basis points increase in the LGD ratio would increase expected
credit loss allowance by EUR 833 348 (EUR 473 461 as of 31 December 2023) of the Group and for the Company by EUR 484 059 (EUR 328 430 as
of 31 December 2023). A 500 basis points decrease would lead to decrease by EUR 833 348 (EUR 473 461 as of 31 December 2023) of the Group
and for the Company by EUR 484 059 (EUR 328 430 as of 31 December 2023). A 1000 basis points increase of PD for loans not yet due would increase
expected credit loss allowance by EUR 515 565 (EUR 325 545 as of 31 December 2023) of the Group and for the Company by EUR 273 167 (EUR
180 282 as of 31 December 2023). A 1000 basis points decrease would lead to decrease by EUR 515 565 (EUR 325 545 as of 31 December 2023) of
the Group and for the Company by EUR 273 167 (EUR 180 282 as of 31 December 2023). The ECL model inputs and parameters were reviewed and
where necessary updated. For more detailed qualitative and quantitative information on the impairment of financial assets, refer to Note 2 Material
accounting Policies section l Trade and other receivables and Note 16 Loans and receivables.
ECL arising from trade receivables or contract assets is assessed as not significant due to the nature.
SPPI for pawn loans
The SPPI assessment for pawn loans is highly judgmental. The focus in determining whether SPPI criteria are met focused on the non-recourse
aspect of the loans in combination with an relatively high risk of non-fulfillment of the loans and the pricing structure of the loans. In light of the
returns from pawn loans in case of default being closely linked to the sale of collateral it was concluded that pawn loans do not meet SPPI criteria and
therefore are required to be carried at fair value through profit or loss. The procedures for assessing and managing this risk are to some extent limited
due to the collateral used to secure the loan.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
33 / 59
Notes (continued)
(2) Material accounting policies (continued)
(t) Significant assumptions and estimates (continued)
Fair value of pawn loans
The measurement of fair value of pawn loans requires judgement in the estimation of the amount and timing of future cash flows when determining the
fair value of the performing pawn loans and the amount and timing of future cash flows when realizing collateral for non-performing loans.
The elements for the fair value model for the performing loans are driven by the portfolio’s effective interest rate and portfolio’s free cash flows. The
non-performing loan portfolio fair value calculations are dependent on the expected time of realization of the pledge, its market price, associated sales
costs, and relevant discount rate. The fair value model inputs and parameters are periodically reviewed and where necessary updated, refer to Note 32
Fair value of financial assets and financial liabilities
Net realisable value of inventories
The cost of the Group’s inventory may have to be reduced to its net realisable value if the inventory has become damaged, is wholly or partly obsolete,
or if its selling price has declined. The costs of inventory may not be recovered from sale because of increases in the costs to complete, or the estimated
selling costs. Writing inventory down to net realisable value is carried out on an item-by-item basis. The Group’s estimates of net realisable value are
based on the most reliable evidence available and take into account fluctuations of price or cost after the end of the period if this is evidence of conditions
existing at the end of the period.
Leases – estimating the incremental borrowing rate
In case the Group cannot readily determine the interest rate implicit in the lease, it uses its incremental borrowing rate (IBR) to measure lease liabilities.
The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain
an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’,
which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease.
The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific
estimates.
Leases are accounted based on contractual term, no significant judgment here.
(u) Related parties
Related parties include the shareholders, members of the Board and Supervisory Board of the Group, Supervisory Board their close family members
and companies in which the said persons have control or significant influence. Term “Related parties” agrees to Commission Regulation (EC) 1126/2008
of 3 November 2018 which took in force various IAS according to European Parliament and Council Regulation (EC) 1606/2002 mentioned in Annex of
IAS 24 “Related Party Disclosures”.
(v) Subsequent events
Post-period-end events that provide additional information about the Group’s position at the balance sheet date (adjusting events) are reflected in the
financial statements. Post-period-end events that are not adjusting events are disclosed in the notes when material.
(w) Contingencies
Contingent liabilities are not recognised in the financial statements. They are disclosed unless an outflow of resources embodying economic benefits is
possible. A contingent asset is not recognised in the financial statements but disclosed when an inflow of economic benefits is probable.
(x) Earnings per share
Earnings per share (EPS) are calculated by dividing the net profit or loss for the year attributable to the shareholders with the weighted-average number
of shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit attributable to the shareholders by the weighted average number of ordinary shares outstanding
during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares
into ordinary shares.
(y) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker – the Group’s
Board, which allocates resources to and assesses the performance of the operating segments of the Group. For management purposes, the Group
is organised into three operating segments based on products and services. Group’s segments are Pawn loan segment, Consumer loans segment,
Retail segment and Other operating segment. Under Other operating segment there are accounted general Group administrative operations,
services provided to related entities and real estates project development financing activities.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
34 / 59
Notes (continued)
(3) Net sales
Net revenue by type of revenue
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Income from sales of goods
7 382 169
6 608 742
7 163 086
6 666 024
Income from sales of precious metals
2 197 186
1 504 352
2 305 634
1 504 352
Other income (loan and storage commission) for financial
instruments measured as FVTPL
1 048 797
1 102 606
1 034 920
1 102 606
10 628 152
9 215 700
10 503 640
9 272 982
(4) Cost of sales
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Cost of sales of goods
5 148 978
4 627 420
4 980 967
4 685 900
Cost of sales of precious metals
1 878 655
1 458 770
1 987 104
1 458 770
7 027 633
6 086 190
6 968 071
6 144 670
(5) Interest income and similar income
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Interest income on unsecured loans according to effective
interest rate method
44 294 711
34 203 127
32 450 716
25 003 472
Interest income on pawn loans
8 031 246
7 001 427
7 955 950
7 001 411
Other interest income according to effective interest rate
method
(101)
2 897
(101)
2 897
52 325 856
41 207 451
40 406 565
32 007 780
(6) Interest expenses and similar expenses
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Bonds’ interest expense
6 706 879
3 468 695
6 706 879
3 468 695
Interest expense on other borrowings
2 360 639
4 714 235
1 269 232
3 209 660
Interest expense on loans from credit institutions
1 608 111
203 528
1 608 111
203 528
Interest expense on lease liabilities for leased premises
232 277
189 659
204 320
187 417
Interest expense lease liabilities for leased vehicles
1 959
2 769
1 959
2 769
Net loss on foreign exchange
852
83
852
83
10 910 717
8 578 969
9 791 353
7 072 152

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
35 / 59
Notes (continued)
(7) Selling expenses
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Salary expenses
3 934 456
3 481 209
3 667 630
3 458 627
Advertising
1 990 489
1 155 392
1 447 345
900 096
Depreciation of property, plant and equipment and
amortisation of intangible assets
961 530
515 193
932 649
512 913
Social insurance
861 376
812 466
856 686
812 068
Depreciation of right-of-use assets - premises
772 893
701 764
712 381
700 984
Non-deductible VAT
691 001
478 725
644 828
435 358
Maintenance expenses
611 253
496 219
571 500
470 229
Utilities expenses
320 227
303 745
303 949
302 473
Transportation expenses
87 241
84 898
83 781
84 714
Provisions for unused annual leave
35 031
24 992
22 114
23 153
Depreciation of right-of-use assets - motor vehicles
11 147
10 521
11 147
10 521
Other expenses
725 856
681 712
615 712
633 529
11 002 500
8 746 836
9 869 722
8 344 665
(8) Administrative expenses
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Salary expenses
5 385 095
4 303 052
5 226 437
4 292 832
Social insurance
1 164 047
966 385
1 159 327
965 790
Bank commission
1 084 051
1 037 471
686 533
754 072
Communication expenses
614 202
447 600
522 156
399 715
Legal and professional services
175 136
222 914
148 666
219 108
State fees and duties, licence expenses
136 853
137 419
81 705
82 319
Depreciation of right-of-use assets - premises
95 972
94 196
82 433
93 068
Public relations expenses
80 063
76 511
80 064
76 511
Audit expenses*
79 703
66 570
67 034
54 210
Provisions for unused annual leave
18 885
42 228
13 893
41 375
Depreciation of right-of-use assets - motor vehicles
4 676
391
4 676
391
Other administrative expenses
500 844
332 699
405 656
321 872
9 339 527
7 727 436
8 478 580
7 301 263
* The Group has received the statutory audit of annual report and translation of financial statements services.
(9) Corporate income tax for the reporting year
This tax mainly relates to the dividends paid out of the previous and current year's profits.
a) Income tax expenses
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Corporate income tax charge for the current year
(2 040 690)
(1 673 578)
(1 231 542)
(1 114 306)
Deferred corporate income tax
142 726
11 914
-
-
(1 897 964)
(1 661 664)
(1 231 542)
(1 114 306)

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(9) Corporate income tax for the reporting year (continued)
In Q4 2023 a change in corporate income tax (CIT) legislation was introduced in Latvia stipulating an advance CIT payable at 20% rate on unadjusted
accounting profits of the Latvian lending operations, with the advance paid being eligible to fully offset dividend distribution tax with no expiry date.
As a result of this change, a higher tax expense was recognised fully in year 2023.
Previously in Latvia corporate income tax (CIT) was payable when the profits were distributed, not when the profits were earned. The recent changes
in the tax legislation require advance payment of CIT based on profits earned in Latvia in 2023 and future periods.
These CIT advance payments may be offset only against future profit distribution tax due. Thus, the amount of the CIT advance paid, amount of
which is calculated based on profits, despite generally being eligible for offsetting against future profit distribution tax, is expensed in the reporting
period as profits are generated. Incremental CIT expense will not arise on the Group’s dividend distribution from retained earnings generated under
the old tax regime (before 2018).
For distributions of 2023 and later period profits a theoretical 20% CIT rate would apply and would be calculated as 0.2/0.8 from net distributed
dividend (effectively 25%), but the profit distribution tax payment would be decreased by the CIT advance already paid in reporting period profits. This
incremental profit distribution tax expense would arise only if the profit distribution tax exceeded the CIT advance paid.
Deferred tax asset relates to temporary differences and tax losses carried forward from DelfinGroup LT UAB operations. There are no realization
deadlines for previous period losses, but the Group expects to realize deferred tax asset in the next five years.
Reconciliation of effective tax rate.
Current corporate income tax expenses for the years ending on 31 December 2024 and 31 December 2023 is different from the theoretical tax
amount that the Group would incur if profit before tax was taxed at the statutory rate of 20%:
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Profit before corporate income tax
9 174 170
8 289 635
6 038 963
5 621 723
Theoretical tax at 20%
1 834 834
1 657 927
1 207 793
1 124 345
Distribution of profits of previous periods
87 081
210 796
87 081
210 796
Corporate income tax correction for 2022
-
(210 104)
-
(210 104)
Tax effect of permanent differences related to non-deductible
expenses/non-taxable income
10 573
-
-
-
Impact of tax rates in other jurisdictions
35 472
-
-
-
Other corporate income tax difference
(69 995)
3 045
(63 331)
(10 731)
Corporate income tax
1 897 964
1 661 664
1 231 542
1 114 306
(10) Basic earnings and Diluted earnings per share
Earnings per share are calculated by dividing the net result for the year after taxation attributable to shareholders by the weighted average number
of shares in issue during the year. The dilution effect when calculating the Diluted earnings per share comes from share options granted on 30 June
2023, 31 December 2023, 30 June 2024 and 31 December 2024 to employees of the Group. The table below presents the income and share data
used in the computations of basic earnings and Diluted earnings per share for the Group:
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Net profit attributed to shareholders
7 276 206
6 627 971
4 807 421
4 507 417
Weighted average number of shares
45 383 117
45 319 911
45 383 117
45 319 911
Earnings per share
0.160
0.146
0.106
0.099
Weighted average number of shares used for calculating the
diluted earnings per shares
45 428 805
45 404 790
45 428 805
45 404 790
Diluted earnings per share
0.160
0.146
0.106
0.099
36 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
37 / 59
Notes (continued)
(10) Basic earnings and Diluted earnings per share (continued)
The table below presents the income and share data used in the computations of earnings per share for the Group:
Actual number of
Change
shares after
transaction
EUR
EUR
2023
Number of shares at the beginning of the year
45 319 594
Number of shares exercised at 29 December 2023
57 911
45 377 505
Number of shares at the end of the year
45 377 505
Weighted average number of shares:
45 319 911
Weighted average number of share options for DelfinGroup AS employees
granted in 2023*
27 285
Weighted average potential number of shares
45 404 790
2024
Number of shares at the beginning of the year
45 377 505
Number of shares exercised at 21 October 2024
28 930
45 406 435
Number of shares at the end of the year
45 406 435
Weighted average number of shares:
45 383 117
Weighted average number of share options for DelfinGroup AS employees
granted in 2024**
22 370
Weighted average potential number of shares
45 428 805
*Number of shares granted on 30 June 2023 40 196 with FV at grant date 1.168 EUR and option exercise price 0.10 EUR. Number of shares granted
on 31 December 2023 44 806 with FV at grant date 1.116 EUR and option exercise price 0.10 EUR.
**Number of shares granted on 30 June 2024 35 338 with FV at grant date 0.908 EUR and option exercise price 0.10 EUR. Number of shares granted
on 31 December 2024 38 500 with FV at grant date 0.901 EUR and option exercise price 0.10 EUR.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
38 / 59
Notes (continued)
(11) Intangible assets
Group
Patents,
Internally
Other
Advances
Work in
Goodwill
Total
trademarks and
developed
intangible
for
progress
similar rights
software
assets
intangible
internally
assets
developed
software
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Cost
31.12.2022
349 306
823 127
204 326
43 801
-
127 616
1 548 176
Additions
-
489
459 852
337 990
486 784
-
1 285 115
Transfers
-
455 106
256 747
(256 747)
(455 106)
-
-
Disposals
(181)
-
-
-
-
-
(181)
31.12.2023
349 125
1 278 722
920 925
125 044
31 678
127 616
2 833 110
Additions
-
20 082
436 626
123 246
519 599
-
1 099 552
Transfers
-
467 342
212 766
(212 766)
(467 342)
-
-
Disposals
-
-
-
-
-
-
-
31.12.2024
349 125
1 766 146
1 570 317
35 523
83 935
127 616
3 932 662
Amortisation
31.12.2022
322 400
247 669
83 164
-
-
-
653 233
Charge for 2023
12 960
231 897
67 844
-
-
-
312 701
Disposals
(181)
-
-
-
-
-
(181)
31.12.2023
335 179
479 566
151 008
-
-
-
965 753
Charge for 2024
4 644
383 241
280 756
-
-
-
668 641
Disposals
-
-
-
-
-
-
-
31.12.2024
339 823
862 807
431 764
-
-
-
1 634 394
Net book value 31.12.2024
9 302
903 339
1 138 553
35 523
83 935
127 616
2 298 267
Net book value 31.12.2023
13 946
799 156
769 917
125 044
31 678
127 616
1 867 357
Company
Patents,
trademarks
and similar
rights
Internally
developed
software
Other
intangible
assets
Advances for
intangible
assets
Work in
progress
internally
developed
software
Total
EUR
EUR
EUR
EUR
EUR
EUR
Cost
31.12.2022
349 306
823 127
183 406
43 801
-
1 399 640
Additions
-
489
459 252
337 990
486 784
1 284 515
Transfers
-
455 106
256 747
(256 747)
(455 106)
-
Disposals
(181)
-
-
-
-
(181)
31.12.2023
349 125
1 278 722
899 405
125 044
31 678
2 683 974
Additions
-
20 082
436 626
123 246
519 599
1 099 552
Transfers
-
467 342
212 766
(212 766)
(467 342)
-
Disposals
-
-
-
-
-
-
31.12.2024
349 125
1 766 146
1 548 797
35 523
83 935
3 783 526
Amortisation
31.12.2022
322 400
247 669
67 084
-
-
637 153
Charge for 2023
12 960
231 897
65 790
-
-
310 647
Disposals
(181)
-
-
-
-
(181)
31.12.2023
335 179
479 566
132 874
-
-
947 619
Charge for 2024
4 644
383 241
280 044
-
-
667 929
Disposals
-
-
-
-
-
-
31.12.2024
339 823
862 807
412 918
-
-
1 615 548
Net book value 31.12.2024
9 302
903 339
1 135 879
35 523
83 935
2 167 978
Net book value 31.12.2023
13 946
799 156
766 531
125 044
31 678
1 736 355

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
39 / 59
Notes (continued)
(11) Intangible assets (continued)
Part of the IT employees are involved in building technical solutions for the operation of AS DelfinGroup. These systems are constantly built to meet
both external and internal needs, and these are constantly being developed. As the systems are fully developed internally by IT department, related
payroll and tax payments are capitalized for those IT employees who were involved in the development of the systems. The list of capitalized salaries
is reviewed every month and capitalized amount is determined based on the works performed. Following initial recognition of the development
expenditure as an asset, the asset is carried a cost less any accumulated amortisation and impairment.
During 2024 capitalised salary and related taxes for such systems amounted to EUR 519 599 (2023 - EUR 486 830). The systems are constantly
being developed and support the issuance of loans, growth of the portfolio and sale of goods and as such ensure that the future economic benefits
will flow to the company over a long period, thus justifying capitalization.
Other intangible assets consist of outsourced IT programming services involved in building and developing technical solutions for the operations of
the Group and future economic benefits will flow to the Group over a long period related to these outsourced services, thus justifying capitalization.
(12) Property, plant and equipment
Group
Land Buildings and
Other
Leasehold
Right-of-
Right-of-
Right-of-
Total
structures
equipment
improve-
use
use
use assets,
assets
ments
premises
vehicles
total
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Cost
31.12.2022
99 000
93 989
1 137 648
676 027
5 278 805
260 850
5 539 655
7 546 319
Additions
-
-
261 451
179 697
800 174
46 027
846 201
1 287 349
Remeasurement
-
-
-
-
332 786
-
332 786
332 786
Disposals
-
-
(24 331)
-
(380 368)
-
(380 368)
(404 699)
31.12.2023
99 000
93 989
1 374 768
855 724
6 031 397
306 877
6 338 274
8 761 755
Additions
-
6 439
306 610
103 235
364 646
-
364 646
780 930
Remeasurement
-
-
-
-
339 685
-
339 685
339 685
Disposals
-
-
(45 148)
-
(255 516)
-
(255 516)
(300 664)
31.12.2024
99 000
100 428
1 636 230
958 959
6 480 212
306 877
6 787 089
9 581 706
Depreciation
31.12.2022
-
10 611
934 456
486 687
2 650 851
252 581
2 903 432
4 335 186
Charge for 2023
-
7 781
141 116
53 595
795 960
10 912
806 872
1 009 364
Disposals
-
-
(22 908)
-
(259 300)
-
(259 300)
(282 208)
31.12.2023
-
18 392
1 052 664
540 282
3 187 511
263 493
3 451 004
5 062 342
Charge for 2024
-
7 496
181 456
103 937
868 866
15 823
884 689
1 177 578
Disposals
-
-
(39 693)
-
(201 452)
-
(201 452)
(241 145)
31.12.2024
-
25 888
1 194 427
644 219
3 854 925
279 316
4 134 241
5 998 775
Net book value 31.12.2024
99 000
74 540
441 803
314 740
2 625 287
27 561
2 652 848
3 582 931
Net book value 31.12.2023
99 000
75 597
322 104
315 442
2 843 886
43 384
2 887 270
3 699 413

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
40 / 59
Notes (continued)
(12) Property, plant and equipment (continued)
Company
Land
Buildings and
structures
Other
equipment
assets
Leasehold
improve-
ments
Right-of-
use
premises
Right-of-
use
vehicles
Right-of-
use assets,
total
Total
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Cost
31.12.2022
99 000
93 989
1 137 057
676 027
5 278 805
260 850
5 539 655
7 545 728
Additions
-
-
198 513
141 709
529 066
46 027
575 093
915 315
Remeasurement
-
-
-
-
332 786
-
332 786
332 786
Disposals
-
-
(24 331)
-
(378 459)
-
(378 459)
(402 790)
31.12.2023
99 000
93 989
1 311 239
817 736
5 762 198
306 877
6 069 075
8 391 039
Additions
-
6 439
250 014
92 479
246 852
-
246 852
595 784
Remeasurement
-
-
-
-
289 713
-
289 713
289 713
Disposals
-
-
(45 310)
-
(255 516)
-
(255 516)
(300 826)
31.12.2024
99 000
100 428
1 515 943
910 215
6 043 247
306 877
6 350 124
8 975 711
Depreciation
31.12.2022
-
10 611
934 423
486 687
2 650 851
252 581
2 903 432
4 335 153
Charge for 2023
-
7 781
140 890
53 595
794 052
10 912
804 964
1 007 230
Disposals
-
-
(22 908)
-
(257 391)
-
(257 391)
(280 299)
31.12.2023
-
18 392
1 052 405
540 282
3 187 512
263 493
3 451 005
5 062 084
Charge for 2024
-
7 496
161 951
95 273
794 815
15 823
810 638
1 075 358
Disposals
-
-
(40 283)
-
(201 452)
-
(201 452)
(241 735)
31.12.2024
-
25 888
1 174 073
635 555
3 780 875
279 316
4 060 191
5 895 707
Net book value 31.12.2024
99 000
74 540
341 870
274 660
2 262 372
27 561
2 289 933
3 080 003
Net book value 31.12.2023
99 000
75 597
258 834
277 454
2 574 686
43 384
2 618 070
3 328 955
Disposal of right-of-use assets relate to early termination of lease contracts.
(13) Right-of-use assets and lease liabilities
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Non-current assets
Right-of-use assets - premises
2 625 288
2 866 965
2 262 372
2 597 765
Right-of-use assets - motor vehicles
27 560
20 305
27 561
20 305
Assets, total
2 652 848
2 887 270
2 289 933
2 618 070
Non-current liabilities
Lease liabilities
2 219 336
2 337 138
1 924 398
2 115 875
Current liabilities
Lease liabilities
734 251
831 318
653 740
784 992
Lease liabilities, total
2 953 587
3 168 456
2 578 138
2 900 867

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
41 / 59
Notes (continued)
(13) Right-of-use assets and lease liabilities (continued)
Leases in the statement of profit or loss
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Interest expenses and similar expenses
Interest expense on lease liabilities for leased premises
(232 277)
(189 659)
(204 320)
(187 417)
Interest expense on lease liabilities for leased vehicles
(1 959)
(2 769)
(1 959)
(2 769)
Selling expense
Depreciation of right-of-use assets - premises
(772 893)
(701 764)
(712 381)
(700 984)
Depreciation of right-of-use assets - motor vehicles
(11 147)
(10 521)
(11 147)
(10 521)
Administrative expenses
Depreciation of right-of-use assets - premises
(95 972)
(94 196)
(82 433)
(93 068)
Depreciation of right-of-use assets - motor vehicles
(4 676)
(391)
(4 676)
(391)
Leases in the statement of profit or loss, total
(1 118 924)
(999 300)
(1 016 916)
(995 150)
Leases liabilities
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Long term lease liabilities - premises
2 199 949
2 317 562
1 905 011
2 096 299
Long term lease liabilities - vehicles
19 387
19 576
19 387
19 576
Total long-term lease liabilities
2 219 336
2 337 138
1 924 398
2 115 875
Short term lease liabilities - premises
731 483
809 670
650 972
763 344
Short term lease liabilities - vehicles
2 768
21 648
2 768
21 648
Total short-term lease liabilities
734 251
831 318
653 740
784 992
Lease liabilities, total
2 953 587
3 168 456
2 578 138
2 900 867
Lease agreements for premises are signed for a period of one year to fifteen years and six months. Car rental agreements are signed for a period of
three years to three years and three months.
The weighted-average incremental borrowing rate for premises leased in 2024 comprised 8.31% (2023: 8.16%), the weighted-average incremental
borrowing rate for motor vehicles was 6.85% (2023: 6.85%).
The total amount of lease payments on short-term leases and leases of low-value assets recognized as expense in statement of profit or loss for the
year end 31 December 2024 is EUR 4 569 and EUR 3 438 for the year end 31 December 2023.
The total cash outflow for leases is EUR 1 072 654 and EUR 984 791 for the year end 31 December 2024. There are no variable lease payments
included in the measurement of lease liabilities. Right-of-use assets are not subleased.
The following table sets out a maturity analysis of lease payables, showing the undiscounted lease payments to be paid after the reporting date.
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Less than one year
965 563
1 090 022
857 103
1 023 563
One to two years
673 915
819 377
564 163
750 857
Two to three years
564 002
508 449
454 250
438 635
Three to four years
442 673
391 778
365 357
321 964
Four to five years
301 054
290 536
281 313
241 233
More than five years
737 897
1 169 306
715 497
886 674
Total undiscounted lease payable
3 685 104
4 269 468
3 237 683
3 662 926

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
42 / 59
Notes (continued)
(14) Company’s investments in subsidiaries
Company is the sole shareholder of the subsidiaries SIA ViziaFinance (100%), UAB DelfinGroup LT (100%), SIA Dealshoq (100%) as of 31 December
2024.
a) participating interest in subsidiaries
Investments in share capital of
Participating interest in share capital
Name
subsidiaries
of subsidiaries
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
%
%
ViziaFinance SIA
880 000
880 000
100
100
DelfinGroup LT UAB
100 000
100 000
100
100
Dealshoq SIA
150 000
n/a
100
n/a
1 130 000
980 000
b) information on subsidiaries
Total equity
Name
Address
31.12.2024
31.12.2023
EUR
EUR
ViziaFinance SIA
Skanstes street 50A, LV-1013 Riga, Latvia
10 416 730
7 180 385
DelfinGroup LT UAB
Lvivo g. 25-701, LT-09320 Vilnius, Lithuania
(837 104)
31 608
Dealshoq SIA
Skanstes street 50A, LV-1013 Riga, Latvia
150 000
n/a
Basic operation of ViziaFinance SIA is providing consumer lending services, dealing with unsecured loans. The company has a Consumer Rights
Protection Center’s license in the field of consumer lending.
Basic operation of DelfinGroup LT UAB is providing pawn loan services and retail of pre-owned goods.
Basic operation of Dealshoq SIA is retail of pre-owned goods.
Impairment test of recoverability of investment in DelfinGroup LT UAB as of 31 December 2024 was performed, taking into consideration future
performance of DelfinGroup LT UAB. As a result, no impairment was recognised.
The impairment test was performed using future projected cash flows. The recoverable amount was calculated based on cash flows generated by
DelfinGroup LT UAB and discounted by the WACC estimated to be 11.5%. Six years of cash flows were included in the discounted cash flow
model. Projected consumer loan issuance levels increase by 12% and pawn loan and retail business increases reaching revenue levels per branch
as it is now in Latvia with the same branch count as at the end of 2024. Variable costs increase in line with issuance levels, fixed costs increase by
inflation rate.
(15) Goods for sale of the Company and the Group
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Goods for sale
1 792 235
1 252 773
1 292 117
1 061 494
Inventory made of gold
2 197 608
2 138 109
1 849 511
2 138 109
3 989 843
3 390 882
3 141 628
3 199 603
In 2024, write-off to net realizable value of inventories amounted to EUR 104 832 (in 2023: EUR 143 515). Accrual for inventories to net realizable
value as at 31 December 2024 is EUR 377 508 (as at 31 December 2023 EUR 330 471). The Group has registered commercial pledges by
pledging its assets. Refer to note 31 for further details.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(16) Loans and receivables
a) Loans and receivables by loan type
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Pawn loans measured at fair value
Long-term pawn loans
176 753
198 079
176 753
198 079
Short-term pawn loans
8 824 726
6 982 259
8 461 544
6 977 462
Interest accrued for pawn loans
431 728
261 743
425 539
261 743
Pawn loans measured at fair value, total
9 433 207
7 442 081
9 063 836
7 437 284
Debtors for loans issued without pledge
Long-term debtors for loans issued without pledge
91 278 962
66 488 178
65 727 727
47 590 888
Short-term debtors for loans issued without pledge
20 710 566
18 909 730
13 050 485
14 817 381
Interest accrued for loans issued without pledge
4 117 065
2 989 733
2 862 203
2 154 372
Debtors for loans issued without pledge, total
116 106 593
88 387 641
81 640 415
64 562 641
Loans and receivables before allowance, total
125 539 800
95 829 722
90 704 251
71 999 925
ECL allowance on loans issued without pledge
(12 066 037)
(6 803 757)
(7 131 062)
(4 228 298)
Loans and receivables
113 473 763
89 025 965
83 573 188
67 771 627
All loans are issued in euros. Weighted average term of consumer loans is 3.2 years (2.5 years in 2023) and pawn loans is two months (one month
in 2023).
The Group signed a contract with a third party for the receivable amounts regular debt sale to assign debtors for loans issued which are outstanding
for more than 60 days. Losses from these transactions were recognised in the current period.
Pawn loans in the amount of EUR 9 433 207 (31.12.2023: EUR 7 442 081) are secured by the value of the collateral and measured at fair value.
b) Allowance for impairment of loans issued without pledge at amortised cost
An analysis of changes in the gross carrying value for loans issued and corresponding ECL in relation to retail lending during the year ended 31
December 2024 is as follows:
Group
Stage 1
Stage 2
Stage 3
Total
Gross carrying value as at 1 January 2023
60 306 047
4 160 505
1 140 330
65 606 882
New assets originated or purchased
68 807 588
-
-
68 807 588
Assets settled or partly settled
(34 169 339)
(5 706 973)
(1 098 474)
(40 974 786)
Assets derecognised due to debt sales
-
(5 194 977)
(1 286 317)
(6 481 294)
Assets written off
-
-
(373 851)
(373 851)
Effect of interest accruals
1 620 222
(106 676)
289 556
1 803 102
Transfers to Stage 1
432 625
(365 987)
(66 638)
-
Transfers to Stage 2
(10 680 294)
10 682 814
(2 520)
-
Transfers to Stage 3
(2 030 526)
(1 268 994)
3 299 520
-
At 31 December 2023
84 286 323
2 199 712
1 901 606
88 387 641
New assets originated or purchased
79 525 039
-
-
79 525 039
Assets settled or partly settled
(39 092 604)
(4 267 981)
(1 247 813)
(44 608 398)
Assets derecognised due to debt sales
-
(5 551 172)
(2 085 268)
(7 636 440)
Assets written off
-
-
(503 749)
(503 749)
Effect of interest accruals
473 188
121 371
347 941
942 500
Transfers to Stage 1
717 712
(574 537)
(143 175)
-
Transfers to Stage 2
(13 339 439)
13 348 514
(9 075)
-
Transfers to Stage 3
(3 729 748)
(1 601 978)
5 331 726
-
At 31 December 2024
108 840 471
3 673 929
3 592 193
116 106 593
43 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(16) Loans and receivables (continued)
Allowance for impairment of loans issued without pledge at amortised cost (continued)
Group
Stage 1
Stage 2
Stage 3
Total
ECL as at 1 January 2023
2 794 161
834 239
783 043
4 411 443
New assets originated or purchased
4 661 553
-
-
4 661 553
Assets settled or partly settled
(2 288 048)
(2 271 960)
(549 398)
(5 109 406)
Assets derecognised due to debt sales
-
(4 587 126)
(1 298 384)
(5 885 510)
Assets written off
-
-
(339 502)
(339 502)
Effect of interest accruals
79 092
16 558
461 996
557 646
Transfers to Stage 1
30 859
(144 712)
(33 205)
(147 058)
Transfers to Stage 2
(804 730)
4 250 090
(1 258)
3 444 102
Transfers to Stage 3
(145 103)
(506 258)
1 648 829
997 468
Impact on period end ECL due to changes in credit risk
and inputs used for ECL calculations
(166 721)
3 264 295
1 115 447
4 213 021
At 31 December 2023
4 161 063
855 126
1 787 568
6 803 757
New assets originated or purchased
7 649 095
-
-
7 649 095
Assets settled or partly settled
(3 645 389)
(2 100 748)
(753 957)
(6 500 094)
Assets derecognised due to debt sales
-
(5 154 105)
(1 928 717)
(7 082 822)
Assets written off
-
-
(501 763)
(501 763)
Effect of interest accruals
100 035
79 826
296 002
475 863
Transfers to Stage 1
72 100
(283 189)
(86 668)
(297 757)
Transfers to Stage 2
(1 346 924)
6 571 673
(5 515)
5 219 234
Transfers to Stage 3
(336 067)
(792 454)
3 222 790
2 094 269
Impact on period end ECL due to changes in credit risk
452 398
2 596 841
1 157 016
4 206 255
and inputs used for ECL calculations
At 31 December 2024
7 106 311
1 772 970
3 186 756
12 066 037
Company
Stage 1
Stage 2
Stage 3
Total
Gross carrying value as at 1 January 2023
42 476 276
2 402 284
875 708
45 754 268
New assets originated or purchased
51 298 230
-
-
51 298 230
Assets settled or partly settled
(26 082 049)
(3 231 847)
(618 896)
(29 932 792)
Assets derecognised due to debt sales
-
(2 939 223)
(761 345)
(3 700 568)
Assets written off
-
-
(338 543)
(338 543)
Effect of interest accruals
1 217 149
(24 653)
289 550
1 482 046
Transfers to Stage 1
287 452
(234 790)
(52 662)
-
Transfers to Stage 2
(6 124 976)
6 126 666
(1 690)
-
Transfers to Stage 3
(1 343 135)
(688 853)
2 031 988
-
At 31 December 2023
61 728 947
1 409 584
1 424 110
64 562 641
New assets originated or purchased
54 366 563
-
-
54 366 563
Assets settled or partly settled
(29 068 057)
(2 521 625)
(915 216)
(32 504 898)
Assets derecognised due to debt sales
-
(3 385 201)
(1 517 452)
(4 902 653)
Assets written off
-
-
(441 268)
(441 268)
Effect of interest accruals
254 500
71 677
233 853
560 030
Transfers to Stage 1
429 753
(330 443)
(99 309)
-
Transfers to Stage 2
(7 849 567)
7 855 090
(5 523)
-
Transfers to Stage 3
(3 009 272)
(856 670)
3 865 942
-
At 31 December 2024
76 852 867
2 242 411
2 545 137
81 640 415
44 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(16) Loans and receivables (continued)
Allowance for impairment of loans issued without pledge at amortised cost (continued)
Company
Stage 1
Stage 2
Stage 3
Total
ECL as at 1 January 2023
1 573 787
429 763
629 902
2 633 452
New assets originated or purchased
2 898 737
-
-
2 898 737
Assets settled or partly settled
(1 473 832)
(1 236 309)
(307 332)
(3 017 473)
Assets derecognised due to debt sales
-
(2 293 563)
(649 192)
(2 942 755)
Assets written off
-
-
(309 029)
(309 029)
Effect of interest accruals
45 890
17 786
375 771
439 447
Transfers to Stage 1
16 243
(89 816)
(26 151)
(99 724)
Transfers to Stage 2
(346 107)
2 343 691
(839)
1 996 745
Transfers to Stage 3
(75 897)
(263 513)
1 009 047
669 637
Impact on period end ECL due to changes in credit risk
and inputs used for ECL calculations
(299 805)
1 620 475
638 591
1 959 261
At 31 December 2023
2 339 016
528 514
1 360 768
4 228 298
New assets originated or purchased
4 375 991
-
-
4 375 991
Assets settled or partly settled
(2 339 702)
(1 195 888)
(546 219)
(4 081 809)
Assets derecognised due to debt sales
-
(3 048 758)
(1 415 857)
(4 464 615)
Assets written off
-
-
(441 268)
(441 268)
Effect of interest accruals
51 277
45 991
184 220
281 488
Transfers to Stage 1
34 591
(156 714)
(59 270)
(181 393)
Transfers to Stage 2
(631 815)
3 725 300
(3 296)
3 090 189
Transfers to Stage 3
(242 218)
(406 278)
2 307 271
1 658 775
Impact on period end ECL due to changes in credit risk
and inputs used for ECL calculations
235 746
1 549 265
880 394
2 665 405
At 31 December 2024
3 822 887
1 041 432
2 266 743
7 131 062
c) Age analysis of loans issued without pledge at amortised cost:
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
For trade debtors not yet due
100 545 395
79 059 132
71 550 126
58 325 247
Outstanding 1-30 days
8 293 453
5 227 191
5 302 741
3 403 701
Outstanding 31-90 days
3 675 551
2 199 712
2 242 411
1 409 584
Outstanding 91-180 days
721 639
494 068
478 123
344 233
Outstanding for 181-360 days
1 335 113
514 729
917 649
384 570
Outstanding for more than 360 days
1 535 442
892 809
1 149 365
695 306
Total loans receivable
116 106 593
88 387 641
81 640 415
64 562 641
d) Age analysis of provision for bad and doubtful trade debtors:
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
For trade debtors not yet due
5 338 747
3 299 618
2 843 159
1 861 128
Outstanding 1-30 days
1 908 613
912 746
1 081 246
518 502
Outstanding 31-90 days
1 856 268
930 393
1 109 037
597 708
Outstanding 91-180 days
537 472
350 619
363 291
249 690
Outstanding for 181-360 days
1 094 088
477 273
767 802
357 015
Outstanding for more than 360 days
1 330 849
833 108
966 527
644 255
ECL allowance on loans issued without pledge
12 066 037
6 803 757
7 131 062
4 228 298
45 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
46 / 59
Notes (continued)
(16) Loans and receivables (continued)
Loan loss allowance has been defined based on collectively assessed impairment. For ECL calculation purposes debtors for loans issued without
pledge were grouped by brands – Banknote, VIZIA and DelfinGroup LT.
e) Credit loss expenses
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Credit losses on loans issued without pledge
13 643 401
9 183 958
8 488 565
5 593 866
Net result from debt sales
1 458 322
1 468 198
982 201
866 605
Net result from loans written-off
1 986
34 348
-
29 514
Credit loss expenses
15 103 709
10 686 504
9 470 766
6 489 985
(17) Cash and cash equivalents
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
(restated, Note 2)
(restated, Note 2)
EUR
EUR
EUR
EUR
Cash at banks
1 100 956
5 010 406
535 271
3 996 630
Cash on hand
543 534
463 664
503 644
463 664
1 644 490
5 474 070
1 038 915
4 460 294
Cash at banks earns interest at floating rates based on daily bank deposit rates. At December 31.12.2024 the Group had available EUR 823 820
(31.12.2023: EUR 6 000 000) of undrawn borrowing facility.
The Group has pledged its term deposits to fulfil collateral requirements. Refer to note 31 for further details.
(18) Share capital
On 14 October 2021, AS DelfinGroup successfully closed the initial public offering (IPO) and shares of Company has become traded in Nasdaq Riga
Baltic Main list from 20 October 2021. During IPO, the Company issued 5 319 594 new shares with par value of EUR 0.10 each. Proceeds from
shares issued were EUR 8 085 782, the par value of new shares were EUR 531 959 and costs related to IPO were EUR 662 865 resulting in share
premium of EUR 6 890 958. Share premium cannot be used for distributing dividends.
As at 31 December 2024, the Parent Company's share capital is EUR 4 540 643,50 (EUR 4 537 750,50 as at 31 December 2023), which consists of
45 406 435 (45 377 505 as at 31 December 2023) ordinary shares, each of them with a nominal value of EUR 0.10. All shares are fully paid.
(19) Retained earnings
Group
Group
Company
Company
2024
2023
2024
2023
EUR
EUR
EUR
EUR
Balance as at 1 January
9 723 592
6 589 761
3 341 395
2 328 118
Net profit for the period
7 276 206
6 627 971
4 807 421
4 507 417
Dividends declared and paid:
Interim dividends of 0.0731 EUR (2023: 0.0645 EUR)
(3 326 778)
(3 494 140)
(3 326 778)
(3 494 140)
per share
Annual dividend of 0.0088 EUR per share in 2023
(399 322)
-
(399 322)
-
Balance as at 31 December
13 273 699
9 723 592
4 422 716
3 341 395

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(20) Share-based payments
Share option plan
In September 2021 shareholders approved an employee share option plan for employees and Management of the Group. Under the programme a
total of 450 000 new shares can be issued. In December 2022 employees were granted first stock options under the employee share option plan.
According to the Company’s share option plan, share options of the parent are granted to all employees of the Company. The right to receive employee
options belongs to those employees of the company who meet the following conditions:
- Employee has been with the company for at least 12 months;
- Employee has achieved the individual goals set for him by the Management and has contributed to achieving the common business goals.
To exercise the share options the option holder has to be employed with the Group. Upon exercising their personnel options, option holders are
entitled to receive the Company's newly issued shares for a fee. The price of one share of the Company's new issue is EUR 0.10 (10 cents). The
minimum term of holding employee options from their allocation to the day the option holder is entitled to exercise the option rights is 12 months. The
options have to be exercised within a month after their vesting date and there are no cash settlement alternatives.
The Group recognized expenses in amount of EUR 66 750 during the reporting year (EUR 96 955 in 2023) in relation to the respective share option
plan and reversed expenses in amount of EUR 13 158 during reporting year (EUR 20 201 in 2023) as not all employees that held options exercised
them and others left the Company during 12 months after options were granted and were not able to exercise them. The remaining 244 515 options
of the plan whilst approved for use in future SBP schemes, have not been included in SBP contracts yet, hence no expense recognised in the year.
Movement during the year in number of options:
Outstanding at 1 January 2023
-
Granted
85 002
Exercised
(57 911)
Forfeited
(16 057)
Outstanding at 31 December 2023
85 002
Exercisable as of 31 December 2023
-
Granted
73 838
Exercised
(28 930)
Forfeited
(11 266)
Outstanding at 31 December 2024
118 644
Exercisable as of 31 December 2024
44 806
Fair value calculations
The fair value of share options is estimated at the grant date by using a Black-Scholes option pricing model. When estimating the fair value of options,
the terms and conditions on which the share options were granted are considered, as well as making estimates on some of the assumptions to adjust
for the BlackScholes model’s calculations. The inputs used in the model are market observable whenever possible including the share price, expected
dividend yield and risk-free rate. The weighted average fair value of options granted at the measurement date was EUR 0.90056 to 0.90776 (EUR
1.1161 to 1.1680 in 2023).
The following table lists the key inputs used for calculating of fair value:
2024
2023
Weighted average fair value of share price
1.076 - 1.086
1.305 - 1.365
Weighted average exercise price
0.10
0.10
Expected life of share options (years)
1
1
Expected volatility (%)
26.79% -
23.26% - 24.59%
28.03%
Dividend yield (%)
7.57% - 7.77%
7.30% - 7.66%
Risk-free interest rate (%)
3.00%
3.00% - 3.75%
47 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
48 / 59
Notes (continued)
(21) Bonds issued
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Total long-term part of bonds issued
47 513 867
26 862 004
47 513 867
26 862 004
Bonds issued
5 368 103
13 330 155
5 368 103
13 330 155
Interest accrued
91 145
74 385
91 145
74 385
Total short-term part of bonds issued
5 459 248
13 404 540
5 459 248
13 404 540
Bonds issued, total
52 881 970
40 192 159
52 881 970
40 192 159
Interest accrued, total
91 145
74 385
91 145
74 385
Bonds issued net
52 973 115
40 266 544
52 973 115
40 266 544
As of 31 December 2023, the Company has outstanding bonds (ISIN LV0000850055) in the amount of EUR 10 000 000, registered with the Latvia
Central Depository and issued in a closed offer on 7 July 2022 on the following terms – number of financial instruments is 10 000, with a nominal
value 1 000 euro per each bond, coupon rate – 3M EURIBOR + 8.75%, coupon is paid once a month on the 25th date. The principal amount (EUR 1
000 per each bond) was repaid on 25 September 2024. The bond issue in full amount was traded on NASDAQ Baltic First North Alternative market
as of 03.07.2023. The bonds were not secured.
As of 31 December 2024, the Company has outstanding bonds (ISIN LV0000802718) in the amount of EUR 15 000 000, registered with the Latvia
Central Depository and issued in a closed offer on 1 August 2023 on the following terms – number of financial instruments is 15 000, with a nominal
value 1 000 euro per each bond, coupon rate –3M EURIBOR + 9.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 1
000 per each bond) is to be repaid by 25 February 2026. The bond issue in full amount is traded on NASDAQ Baltic First North Alternative market as
of 03.10.2023. The bonds are not secured.
As of 31 December 2024, the Company has outstanding subordinated bonds (ISIN LV0000802700) in the amount of EUR 5 000 000, registered with
the Latvia Central Depository and issued in a closed offer on 24 July 2023 on the following terms – number of financial instruments is 5 000, with a
nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 11.50%, coupon is paid once a month on the 25th date. The principal amount
(EUR 1 000 per each bond) is to be repaid by 25 July 2028. The bonds are not secured.
As of 31 December 2024, the Company has outstanding bonds (ISIN LV0000860146) in the amount of EUR 15 000 000, registered with the Latvia
Central Depository and issued in a closed offer on 03 October 2023 on the following terms – number of financial instruments is 15 000, with a nominal
value 1 000 euro per each bond, coupon rate –3M EURIBOR + 9.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 1
000 per each bond) is to be repaid by 25 July 2028. The bonds are not secured.
As of 31 December 2024, the Company has outstanding subordinated bonds (ISIN LV0000870145) in the amount of EUR 5 000 000, registered with
the Latvia Central Depository and issued in a closed offer on 29 May 2024 on the following terms – number of financial instruments is 5 000, with a
nominal value 1 000 euro per each bond, coupon rate –3M EURIBOR + 11.00%, coupon is paid once a month on the 25th date. The principal amount
(EUR 1 000 per each bond) is to be repaid by 25 May 2029. The bonds are not secured.
As of 31 December 2024, the Company has outstanding bonds (ISIN LV0000803914) in the amount of EUR 15 000 000, registered with the Latvia
Central Depository and issued in a public offer on 25 September 2024 on the following terms – number of financial instruments is 150 000, with a
nominal value 100 EUR per each bond, coupon rate – 10.00%, coupon is paid once a month on the 25th date. The principal amount (EUR 100 per
each bond) is to be repaid by the 25 September 2028. The bond issue in full amount is traded on NASDAQ Baltic Regulated market as of 25
September 2024. The bonds are not secured.
As at 31 December 2024 the Group is in compliance with covenants stated in all Terms of the Notes Issue. Please see covenants disclosed in
Management report.
The Group has devised a strategic plan to issue new bonds with the aim of refinancing its existing maturing liabilities, work with credit institutions to
attract financing from them, as well as continue placing loans on the Mintos P2P platform. This approach will enable the group to settle its outstanding
debt by utilizing the proceeds generated from the sale of these newly issued bonds, received loans from credit institutions and funding attracted on
Mintos.

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
49 / 59
Notes (continued)
(22) Loans from credit institutions
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Long-term loans from credit institutions
5 673 103
6 406 925
5 673 103
6 406 925
Total long-term loans from credit institutions
5 673 103
6 406 925
5 673 103
6 406 925
Short-term loans from credit institutions
11 715 582
887 067
11 715 582
887 067
Total short-term loans from credit institutions
11 715 582
887 067
11 715 582
887 067
Loans from credit institutions, total
17 388 685
7 293 992
17 388 685
7 293 992
At 31 December 2024 the Company of the Group have loans from credit institutions with floating interest rates (the base interest rate of 3M EURIBOR
plus fixed rate) and maturities in 2025 and 2026.
To ensure fulfilment of liabilities the Group has registered commercial pledge, see note 31. As at 31 December 2024 the Group is in compliance with
covenants.
(23) Other borrowings
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Other long-term loans
13 901 453
14 904 405
6 902 394
5 652 280
Total other long-term loans
13 901 453
14 904 405
6 902 394
5 652 280
Other short-term loans
10 399 105
14 505 929
6 714 442
10 715 028
Total other short-term loans
10 399 105
14 505 929
6 714 442
10 715 028
Other loans, total
24 300 558
29 410 334
13 616 836
16 367 308
Amount of other borrowings is represented by loans received from crowdfunding platform Mintos, a platform registered in the European Union. The
weighted average annual interest rate as of 31 December 2024 is 8.8% (31.12.2023: is 10.7%). According to the loan agreement with AS Mintos
Marketplace the loans matures according to the particular loan agreement terms concluded by the Group with its customers.
To ensure fulfilment of liabilities the Group has registered commercial pledge, see note 31. As at 31 December 2024 the Group is in compliance with
covenants.
(24) Taxes and social insurance payments
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Value Added Tax
72 354
22 950
72 354
21 681
Income tax
1 418 070
996 770
608 762
437 643
Business risk charge
136
132
136
131
Social insurance
281 424
222 129
270 532
215 864
Payroll tax
175 092
142 643
167 008
138 208
Vehicles tax
2 897
4 800
2 897
4 800
Natural resource tax
3
665
3
665
Property tax
-
179
-
179
Prepayment
(25 934)
-
(25 934)
-
Total taxes and social insurance payments
1 924 042
1 390 268
1 095 758
819 171

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
50 / 59
Notes (continued)
(25) Average number of employees
2024
2023
Average number of employees during the reporting year of the Group
388
366
Average number of employees during the reporting year of the Company
370
361
(26) Management remuneration
31.12.2024
31.12.2023
EUR
EUR
Supervisory Board members' remuneration:
· salary expenses
201 845
207 900
· social insurance
47 615
49 044
249 460
256 944
Board members' remuneration:
· salary expenses
608 646
414 579
· social insurance
143 580
97 799
752 226
512 378
(27) Changes in liabilities arising from financing activities
Group’s changes in liabilities arising from financing activities
Share
Loans from
capital and
Total liabilities
Bonds
Other
credit
Lease
Share
from financing
The Group
issued
borrowings
institutions
liabilities
premium
activities
EUR
EUR
EUR
EUR
EUR
EUR
Carrying amount at
31 December 2022
19 113 740
34 860 758
-
2 918 440
11 422 917
68 315 855
Proceeds
36 954 000
18 733 953
7 345 000
-
5 792
63 038 745
Settlement
(14 943 000)
(23 921 661)
-
(961 206)
-
(39 825 867)
New lease contracts
-
-
-
846 201
-
846 201
Lease disposal
-
-
-
(157 424)
-
(157 424)
Modification of lease
contracts
-
-
-
332 786
-
332 786
Interest expense
3 468 695
4 714 235
203 528
189 659
-
8 576 117
Interest settlement
(3 105 434)
(4 919 757)
(203 528)
-
-
(8 228 719)
Issuance fees
(1 295 842)
(203 245)
(51 008)
-
-
(1 550 095)
Interest accrued
74 385
146 051
-
-
-
220 436
Carrying amount at
31 December 2023
40 266 544
29 410 334
7 293 992
3 168 456
11 428 709
91 568 035
Proceeds
23 512 000
11 974 316
10 900 000
-
2 893
46 389 209
Settlement
(11 000 000)
(17 106 197)
-
(1 072 654)
-
(29 178 851)
New lease contracts
-
-
-
364 646
-
364 646
Lease disposal
-
-
-
(78 823)
-
(78 823)
Modification of lease
contracts
-
-
-
339 685
-
339 685
Interest expense
6 706 879
2 360 638
1 608 111
232 277
-
10 907 905
Interest settlement
(5 485 423)
(2 237 493)
(2 380 923)
-
-
(10 103 839)
Issuance fees
(1 118 030)
(203 951)
(32 495)
-
-
(1 354 476)
Interest accrued
91 145
102 911
-
-
-
194 056
Carrying amount at
31 December 2024
52 973 115
24 300 558
17 388 685
2 953 587
11 431 602
109 047 547

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
51 / 59
Notes (continued)
(27) Changes in liabilities arising from financing activities (continued)
Company changes in liabilities arising from financing activities
The Company
Bonds
issued
Other
borrowings
Loans from
credit
institutions
Lease
liabilities
Share
capital and
Share
premium
Total liabilities
from financing
activities
EUR
EUR
EUR
EUR
EUR
EUR
Carrying amount at
31 December 2022
19 113 740
25 483 091
-
2 918 440
11 422 917
58 938 188
Proceeds
36 954 000
8 652 114
7 345 000
-
5 792
52 956 906
Settlement
(14 943 000)
(17 505 181)
-
(961 206)
-
(33 409 387)
New lease contracts
-
-
-
575 093
-
575 093
Lease disposal
-
-
-
(151 663)
-
(151 663)
Modification of lease
contracts
-
-
-
332 786
-
332 786
Interest expense
3 468 695
3 209 660
203 528
187 417
-
7 069 300
Interest settlement
(3 105 434)
(3 466 504)
(203 528)
-
-
(6 775 466)
Commission accrued
(1 295 842)
(81 567)
(51 008)
-
-
(1 428 417)
Interest accrued
74 385
75 695
-
-
-
150 080
Carrying amount at
31 December 2023
40 266 544
16 367 308
7 293 992
2 900 867
11 428 709
78 257 420
Proceeds
23 512 000
6 183 772
10 900 000
-
2 893
40 598 665
Settlement
(11 000 000)
(8 956 349)
-
(984 791)
-
(20 941 140)
New lease contracts
-
-
-
246 852
-
246 852
Lease disposal
-
-
-
(78 823)
-
(78 823)
Modification of lease
contracts
-
-
-
289 713
-
289 713
Interest expense
6 706 879
1 269 232
1 608 111
204 320
-
9 788 542
Interest settlement
(5 485 423)
(1 227 848)
(2 380 923)
-
-
(9 094 194)
Commission accrued
(1 118 030)
(75 438)
(32 495)
-
-
(1 225 963)
Interest accrued
91 145
56 159
-
-
-
147 304
Carrying amount at
31 December 2024
52 973 115
13 616 836
17 388 685
2 578 138
11 431 602
97 988 376
Modification of lease contracts mostly relates to extension of lease term.
(28) Related party transactions
In the annual report there are presented only those related parties with whom have been transactions the reporting year or in the comparative period
Group’s transactions
Transactions in 2024
Transactions in 2023
Shareholders
EUR
EUR
Interest paid
128 137
51 556
Key management personnel
Interest paid
4 310
683
Other related companies
Services received
2 000
4 250

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
52 / 59
Notes (continued)
(28) Related party transactions (continued)
Parent company transactions
Transactions in 2024
Transactions in 2023
EUR
EUR
Shareholders
Interest paid
128 137
51 556
Key management personnel
Interest paid
4 310
683
Subsidiaries
Interest received
696 495
484 438
Services delivered
6 240
6 780
Goods sold
201 795
186 427
Other related companies
Services received
2 000
4 250
Loans granted to subsidiaries
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
ViziaFinance SIA
-
-
7 768 600
1 299 876
DelfinGroup UAB
-
-
2 173 533
298 216
Dealshoq SIA
-
n/a
-
n/a
ECL allowance for loans granted to subsidiaries
-
-
(140 219)
(20 976)
Long-term loans to related companies, total
-
-
9 801 915
1 577 116
ViziaFinance SIA
-
-
90 029
397 876
DelfinGroup UAB
-
-
335 044
1 095
Dealshoq SIA
-
n/a
-
n/a
Short-term loans to related companies, total
-
-
425 072
398 971
Loans to related companies, total
-
-
10 226 987
1 976 087
The interest rate on loans to related companies 13.5%. All loans and other claims denominated in euro. The Company has no debt overdue.
Bonds issued to shareholders of the related companies
Group
Group
Company
Company
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Key management personnel
-
20 000
-
20 000
Shareholders
3 163 600
300 000
3 163 600
300 000
Long-term part of bonds issued to shareholders of the
related companies, total
3 163 600
320 000
3 163 600
320 000
Shareholders
-
307 000
-
307 000
Short-term part of bonds issued to shareholders of
the related companies, total
-
307 000
-
307 000
Bonds issued to related companies, total
3 163 600
627 000
3 163 600
627 000

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
53 / 59
Notes (continued)
(29) Shares held by members of Management Board and Supervisory Board
a) Shares held by members of Management Board
31 December 2024
31 December 2023
Shares
Shares
Didzis Ādmīdiņš
607 500
605 000
Nauris Bloks (Management Board member till 01.04.2025)
2 587
-
Aldis Umblejs (Management Board member till 18.12.2024)
n/a
11 650
Sanita Pudnika (Management Board member till 26.06.2024)
n/a
5 050
b) Shares held by members of Supervisory Board
31 December 2024
31 December 2023
Shares
Shares
Agris Evertovskis (through ownership of LLC EC finance and LLC AE Consulting)
10 501 664
10 667 984
Jānis Pizičs
8 541
7 916
Mārtiņš Bičevskis
3 375
2 750
Gatis Kokins
625
1 250
Edgars Voļskis (Supervisory Board member till 22.05.2024)
n/a
1 250
(30) Segment information
For management purposes, the Group is organised into four operating segments based on products and services as follows:
Pawn loan segment
Handling pawn loan issuance, sale of pawn shop items in the branches and online.
Retail of pre-owned goods
Sale of pre-owned goods in the branches and online purchased from customers.
Consumer loan segment
Handling consumer loans to customers, debt collection activities and debt sales to external debt collection companies.
Other operations segment
Providing loans for real estate development, general administrative services to the companies of the Group,
transactions with related parties.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and
performance assessment. Segment performance, as explained in the table below, is measured on consolidation basis. Management mainly focuses
on net sales, interest income and similar income, net performance of the segment (net sales plus interest income and similar income minus credit
loss expenses, cost of sales, selling expenses, administrative expenses and other operating expenses) and profit before taxes of the segment. For
the costs, for which direct allocation to a particular segment is not attributable, the judgement of the management is used to allocate general costs
by segments, based on the following cost allocation drivers – loan issuance, segment income, segment employee count, segment employee costs,
the amount of segment assets.
Based on the nature of the services, the Group’s operations can be divided as follows:
EUR
Consumer loans
Pawn loans
Retail of pre-owned
Other
Total
goods
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Assets
110 962 201
90 623 040
10 963 999
9 802 525
5 069 036
4 632 912
7 733
2 597
127 002 969
105 061 074
Liabilities of
the segment
88 789 149
71 448 313
9 484 322
8 518 974
3 796 070
3 770 088
4 723
1 586
102 074 264
83 738 961
Net sales
-
-
-
-
10 628 152
9 215 700
-
-
10 628 152
9 215 700
Interest
44 294 711
34 203 127
8 031 145
7 001 427
-
-
-
2 897
52 325 856
41 207 451
income and
similar
income
Net
16 399 477
13 447 417
2 768 359
2 462 467
795 842
920 370
121 209
38 350
20 084 887
16 868 604
performance
of the
segment
Financial
(9 650 103)
(7 498 505)
(883 791)
(734 858)
(376 823)
(345 606)
-
-
(10 910 717)
(8 578 969)
(expenses)
Profit/(loss)
6 749 374
5 948 912
1 884 568
1 727 609
419 019
574 764
121 209
38 350
9 174 170
8 289 635
before taxes
Corporate
(1 396 319)
(1 192 464)
(389 882)
(346 300)
(86 687)
(115 212)
(25 076)
(7 688)
(1 897 964)
(1 661 664)
income tax

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
54 / 59
Notes (continued)
(31) Guarantees issued, pledges and contingent liabilities
The Group has registered commercial pledges by pledging its assets and claim rights for a maximum amount of EUR 34.8 million as collateral
registered to SIA Mintos Finance No.20 and AS Mintos Marketplace to provide collateral for loans placed on the Mintos P2P platform.
On 25 May 2023, the Company registered a 2nd rank commercial pledge by pledging its assets for a maximum amount of EUR 1.4 million as collateral
registered to AS Signet Bank.
On 25 September 2023, the Company registered a 2nd rank commercial pledge by pledging its assets for a maximum amount of EUR 1.883 million
as collateral registered to AS Signet Bank.
On 25 September 2023, the Company registered a commercial pledge by pledging its assets for a maximum amount of EUR 15 million as collateral
registered to MULTITUDE BANK P.L.C.
On 14 December 2023, on 20 February, 14 May, 26 June and 17 July 2024, the Company signed an agreement for the pledge of bank accounts and
balances in the amount of EUR 999 900 as part of the collateral with MULTITUDE BANK P.L.C.
On 16 October 2024, the Company registered a commercial pledge by pledging its assets for a maximum amount of EUR 6.37 million as collateral
registered to Citadele banka AS. On October 16, 2024, the Company's subsidiary signed a guarantee agreement, assuming the obligation to be liable
to Citadele banka AS for the Company's obligations.
As of 31 December 2024, the amount of secured liabilities constitutes EUR 41 689 242 (As of 31 December 2023 EUR 36 704 326).
In 2024, the Consumer Rights Protection Centre (hereinafter – CRPC) initiated two administrative proceedings against ViziaFinance SIA and, in 2025,
one proceeding against DelfinGroup AS. One of the cases concerning ViziaFinance SIA relates to the application of debt collection costs to borrowers.
ViziaFinance SIA has submitted its written response and supporting arguments to the CRPC and has also met with the CRPC to discuss possible
improvements to its debt collection practices. ViziaFinance will submit a proposal for possible (non-substantive) changes to the CRPC by the end of
April.
The second case, brought against ViziaFinance SIA and DelfinGroup AS, pertains to the assessment of borrower creditworthiness and its compliance
with applicable regulatory requirements. In this matter, ViziaFinance SIA has submitted its response, while DelfinGroup AS is in the process of
preparing its position and arguments for submission to the CRPC.
The CRPC may impose fines to ViziaFinance SIA and DelfinGroup AS in accordance with Section 15.
2
point 1
1
of the Unfair Commercial Practices
Prohibition Law, which sets out the maximum applicable penalty amount. However, the Group’s management does not acknowledge any breach of
regulatory requirements and have received legal opinion from one of the largest legal offices in Latvia supporting its position. As at the date of signing
these financial statements, no final decisions have been issued by the CRPC. Management does not believe that the outcome of these cases will
require significant adjustments to the financial statements.
Additionally, based on public information disclosed by the CRPC, consumers may submit claims against DelfinGroup AS and ViziaFinance SIA in
relation to alleged deficiencies in creditworthiness assessments. To date, only a limited number of such claims have been received. Management
does not consider that these will result in probable outflows of economic benefits, as it maintains that the Group has complied with legal requirements
and that borrowers were obligated to provide accurate information on their financial liabilities at the time of application.
(32) Fair value of financial assets and financial liabilities
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
► Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
► Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly; and
► Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market
data.
Valuation techniques include net present value and discounted cash flow models, comparison with similar instruments for which observable market
prices exist, Black-Scholes and option pricing models. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest
rates, other premiums used in estimating discount rates, and expected price volatilities.
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to
transfer the liability in an orderly transaction between market participants at the measurement date.
For more complex instruments, the Group uses proprietary valuation models, which are usually developed from recognised valuation models. Some
or all of the significant inputs into these models may not be observable in the market, and may be derived from market prices or rates or estimated
based on assumptions. Examples of instruments involving significant unobservable inputs include the valuation of pawn loan portfolio. Valuation
models that employ significant unobservable inputs require a higher degree of management judgement and estimation in the determination of fair
value. Management judgement and estimation are usually required for the selection of the appropriate valuation model to be used, determination of
expected future cash flows on the financial instrument being valued and selection of appropriate discount rates.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and
risks of the asset or liability and the level of the fair value hierarchy as explained above. Also set out below is a comparison by class of the carrying
amounts and fair values of the Company’s and the Group’s financial instruments that are not carried at fair value in the Consolidated balance sheet.
The table does not include the fair values of non-financial assets and non-financial liabilities .

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
55 / 59
Notes (continued)
(32) Fair value of financial assets and financial liabilities (continued)
The Group
At 31 December 2024
Fair value hierarchy
Level 1
Level 2
Level 3
Total fair value
Carrying value
Assets for which fair values are disclosed
Cash and cash equivalents
1 644 490
-
-
1 644 490
1 644 490
Loans and receivables
Unsecured loans
-
-
118 354 260
118 354 260
116 106 593
Other financial assets
-
-
859 135
859 135
859 135
Assets which are accounted at fair value
Loans and receivables
Pawn loans
-
-
9 433 207
9 433 207
9 433 207
Liabilities for which fair values are
disclosed
Bonds issued
-
-
55 910 866
55 910 866
52 973 115
Loans from credit institutions
-
-
17 514 229
17 514 229
17 388 685
Other borrowings
-
-
24 050 354
24 050 354
24 300 558
Trade payables
-
-
934 352
934 352
934 352
At 31 December 2023
Fair value hierarchy
Level 1
Level 2
Level 3
Total fair value
Carrying value
Assets for which fair values are disclosed
Cash and cash equivalents
5 474 070
-
-
5 474 070
5 474 070
Loans and receivables
Unsecured loans
-
-
87 747 749
87 747 749
84 040 864
Other financial assets
-
-
1 148 887
1 148 887
1 148 887
Assets which are accounted at fair value
Loans and receivables
Pawn loans
-
-
7 442 081
7 442 081
7 442 081
Liabilities for which fair values are
disclosed
Bonds issued
-
-
41 827 132
41 827 132
40 266 544
Loans from credit institutions
-
-
7 357 318
7 357 318
7 293 992
Other borrowings
-
-
30 545 665
30 545 665
29 410 334
Trade payables
-
-
1 011 347
1 011 347
1 011 347

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
56 / 59
Notes (continued)
(32) Fair value of financial assets and financial liabilities (continued)
The Company
At 31 December 2024
Fair value hierarchy
Level 1
Level 2
Level 3
Total fair value
Carrying value
Assets for which fair values are disclosed
Cash and cash equivalents
1 038 915
-
-
1 038 915
1 038 915
Loans and receivables
Unsecured loans
-
-
81 986 052
81 986 052
81 640 415
Other financial assets
-
-
650 723
650 723
650 723
Assets which are accounted at fair value
Loans and receivables
Pawn loans
-
-
9 063 836
9 063 836
9 063 836
Liabilities for which fair values are
disclosed
Bonds issued
-
-
55 910 866
55 910 866
52 973 115
Loans from credit institutions
-
-
17 514 229
17 514 229
17 388 685
Other borrowings
-
-
12 980 611
12 980 611
13 616 836
Trade payables
-
-
857 521
857 521
857 521
At 31 December 2023
Fair value hierarchy
Level 1
Level 2
Level 3
Total fair value
Carrying value
Assets for which fair values are disclosed
Cash and cash equivalents
4 460 294
-
-
4 460 294
4 460 294
Loans and receivables
Unsecured loans
-
-
64 226 604
64 226 604
64 554 950
Other financial assets
-
-
735 843
735 843
735 843
Assets which are accounted at fair value
Loans and receivables
Pawn loans
-
-
7 437 284
7 437 284
7 437 284
Liabilities for which fair values are
disclosed
Bonds issued
-
-
41 827 132
41 827 132
40 266 544
Loans from credit institutions
-
-
7 357 318
7 357 318
7 293 992
Other borrowings
-
-
16 674 923
16 674 923
16 367 308
Trade payables
-
-
933 489
933 489
933 489
Reconciliation
The following table shows a reconciliation from the beginning balances to the ending balances for assets accounted at fair value in Level 3 of the fair
value hierarchy.
The Group and the Company
2024
Group
Company
Balance at 1 January
7 442 081
7 437 284
Total gains or losses:
Interest income
8 031 187
7 955 950
Other income
1 048 595
1 034 920
Issues
26 302 920
25 596 382
Settlements
(33 391 576)
(32 960 700)
Balance at 31 December
9 433 207
9 063 836
2023
Group
Company
Balance at 1 January
6 322 367
6 322 367
Total gains or losses:
Interest income
7 001 427
7 001 411
Other income
1 102 606
1 102 606
Issues
23 380 209
23 385 006
Settlements
(30 364 528)
(30 374 106)
Balance at 31 December
7 442 081
7 437 284

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(32) Fair value of financial assets and financial liabilities (continued)
Unobservable inputs used in measuring fair value
The following table sets out information about significant unobservable inputs used at 31 December 2024 and 2023 in measuring financial instruments
categorised as Level 3 in the fair value hierarchy.
Type of
financial
Fair values at 31
Valuation technique
Significant
Range of estimates
Fair value
instrument
December
unobservable input
for
unobservable
measurement
input
sensitivity
to
unobservable inputs
Pawn loans
Group:
Discounted cash flow
Sales costs
2024: 8% - 28%
Significant increases
2024: 9 433 207
(2023: 8%
- 28%)
in any of these inputs
(2023: 7 442 081)
in isolation would
Company:
Discount rate
2024: 9%-190%
result in lower fair
2024: 9 063 836
(2023: 9%-190%)
values.
(2023: 7 437 284)
Expected return for
2024: 26%-32%
cash-flows
(2023: 28%-33%)
2024:
65%-85%
Sales margin cap
(2023: 65%-85%)
Significant unobservable inputs are developed as follows:
- Sales costs and sale margins are derived from historical trends. Sales costs reflect the costs associated with the sale of the collateral
taken over and include salaries, branch expenses, marketing and others. Sales margin cap sets the limits to the amounts of margin that
are collected on sales.
- Expected cash flows are derived from the entity’s business plan and from historical comparison between plans and actual results.
The effect of unobservable inputs on fair value measurement
Although the Group believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different
measurements of fair value. For fair value measurements in Level 3, changing one or more of the assumptions used to reasonably possible alternative
assumptions would have the following effects.
Effect on profit or loss
Favorable
(Unfavorable)
31 December 2024
Pawn loans
874 232
(1 128 453)
31 December 2023
Pawn loans
636 273
(721 024)
The favourable and unfavourable effects of using reasonably possible alternative assumptions for the valuation of pawn loans have been calculated
by recalibrating the model values using unobservable inputs – sales costs, discount rate, expected return and sales margin cap.
Key inputs and assumptions used in the models at 31 December 2024 included:
- the average monthly discount rate of 15.7% (with reasonably possible alternative assumptions of 14.7% and 16.7%) (2023: 15.1%, 14.1% and
16.1% respectively)
- cumulative average expected return of 29.6% (with reasonably possible alternative assumptions of 31.6% and 27.6%) (2023: 30.4%, 28.5% and
32.4% respectively)
- average sales margin cap of 85% (with reasonably possible alternative assumptions of 65% and 105%) (2023: 85%, 65% and 105% respectively)
- average sales costs of 18% (with reasonably possible alternative assumptions of 8% and 28%) (2023: 18%, 8% and 28% respectively)
Collateral for pawn loans
Pawn loans made by the Group are secured by collateral of the borrower limit the Group’s claim to cash flows of the underlying collateral (non-
recourse loans). The following table sets out the principal types of collateral held against pawn loans:
2024
2023
Goods
4 076 479
3 301 862
Gold
5 356 728
4 140 219
TOTAL
9 433 207
7 442 081
57 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
Notes (continued)
(32) Fair value of financial assets and financial liabilities (continued)
The following tables stratify credit exposures for pawn loans by ranges of loan-to-value (LTV) ratio. LTV is calculated as the ratio of the gross amount
of the loan to the value of the collateral. The valuation of the collateral excludes any adjustments for obtaining and selling the collateral. The value of
the collateral for goods is determined on the collateral value at origination.
2024
2023
LTV ratio
Goods
Less than 50%
197 357
154 428
51–70%
1 796 688
1 442 159
71–90%
1 603 667
1 282 233
91–100%
372 698
303 328
More than 100%
106 069
119 714
Total
4 076 479
3 301 862
The value of the collateral for gold is determined based on the market price of gold at the date of origination of loans and can be up to 95% of market
price of gold.
(33) Analysis of financial liabilities by remaining contractual maturities
The tables below summarise the maturity profile of the Company’s and the Group’s financial liabilities at 31 December based on contractual
undiscounted repayment obligations. Repayments which are subject to notice are treated as if notice were to be given immediately.
The Group
As at 31 December 2024
Less than
3 to
1 to
Over
Carrying
3 months
12 months
5 years
5 years
Total
value
Financial liabilities
Bonds issued
1 053 702
5 268 508
63 704 480
-
70 026 690
52 973 115
Loans from credit institutions
354 016
12 675 921
6 879 052
-
19 908 989
17 388 685
Other borrowings
2 002 931
6 956 808
19 988 751
-
28 948 490
24 300 558
Lease liabilities
265 627
699 936
1 981 643
737 897
3 685 104
2 953 587
Trade payables
934 352
-
-
-
934 352
934 352
Total undiscounted financial liabilities
4 610 628
25 601 173
92 553 926
737 897
123 503 625
98 550 297
As at 31 December 2023
Less than
3 to
1 to
Over
Carrying
3 months
12 months
5 years
5 years
Total
value
Financial liabilities
Bonds issued
909 416
14 212 652
39 239 108
-
54 361 176
40 266 544
Loans from credit institutions
162 521
812 606
8 396 202
-
9 371 329
7 293 992
Other borrowings
4 193 304
9 754 429
21 430 370
-
35 378 103
29 410 334
Lease liabilities
281 241
808 782
2 010 139
886 674
3 986 836
3 168 456
Trade payables
1 011 347
-
-
-
1 011 347
1 011 347
Total undiscounted financial liabilities
6 557 829
25 588 469
71 075 819
886 674
104 108 791
81 150 673
58 / 59

AS DelfinGroup Annual accounts and Consolidated
annual accounts for the year ended 31 December 2024
(translation from Latvian)
59 / 59
Notes (continued)
(33) Analysis of financial liabilities by remaining contractual maturities (continued)
The Company
As at 31 December 2024
Less than
3 months
3 to
12 months
1 to
5 years
Over
5 years
Total
Carrying
value
Financial liabilities
Bonds issued
1 053 702
5 268 508
63 704 480
-
70 026 690
52 973 115
Loans from credit institutions
354 016
12 675 921
6 879 052
-
19 908 989
17 388 685
Other borrowings
1 077 368
3 742 037
10 751 862
-
15 571 267
13 616 836
Lease liabilities
238 541
618 563
1 665 082
715 497
3 237 683
2 578 138
Trade payables
857 521
-
-
-
857 521
857 521
Total undiscounted financial liabilities
3 581 148
22 305 029
83 000 476
715 497
109 602 150
87 414 295
As at 31 December 2023
Less than
3 months
3 to
12 months
1 to
5 years
Over
5 years
Total
Carrying
value
Financial liabilities
Bonds issued
909 416
14 212 652
39 239 108
-
54 361 176
40 266 544
Loans from credit institutions
162 521
812 606
8 396 202
-
9 371 329
7 293 992
Other borrowings
2 355 404
5 479 120
12 037 565
-
19 872 088
16 367 308
Lease liabilities
264 670
758 892
1 752 690
886 674
3 662 926
2 900 867
Trade payables
933 489
-
-
-
933 489
933 489
Total undiscounted financial liabilities
4 625 500
21 263 270
61 425 565
886 674
88 201 008
67 762 200
(34) Subsequent events
Management has evaluated subsequent events up to the date of issuance of these financial statements and has determined that there have been no
significant subsequent events that would require recognition or disclosure in these financial statements.
Didzis Ādmīdiņš
Chairman of the Board
Andrejs
Aleksandrovičs
Board Member
Laima Eižvertiņa
Board Member
Nataļja Maškova
Chief accountant
This document is electronically signed with safe electronical signature and contains time stamp.

KPMG Baltics SIA
Roberta Hirsa iela 1
Riga, LV-1045
Latvia
T: + 371 67038000
kpmg.com/lv
kpmg@kpmg.lv
KPMG Baltics SIA, a Latvian limited liability company and a
member firm of the KPMG global organization of independent
member firms affiliated with KPMG International Limited, a
private English company limited by guarantee.
Independent Auditors’ Report
To the shareholders of AS DelfinGroup
Report on the Audit of the Separate and Consolidated Financial Statements
Our Opinion on the Separate and Consolidated Financial Statements
We have audited the accompanying separate financial statements of AS DelfinGroup (“the
Company”) and accompanying consolidated financial statements of the Company and its
subsidiaries (“the Group”) set out on pages 18 to 59 of the accompanying separate and
consolidated Annual Report, which comprise:
— the separate and consolidated balance sheet as at 31 December 2024,
— the separate and consolidated statement of profit or loss for the year then ended,
— the separate and consolidated statement of changes in equity for the year then ended,
— the separate and consolidated statement of cash flows for the year then ended, and
— the notes to the separate and consolidated financial statements, which include a
summary of material accounting policies and other explanatory notes.
In our opinion, the accompanying separate and consolidated financial statements give a true
and fair view of the separate and consolidated financial position of the Company and the
Group, respectively, as at 31 December 2024, and of their separate and consolidated
financial performance and their separate and consolidated cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the European Union.
Basis for Opinion
In accordance with the ’Law on Audit Services’ of the Republic of Latvia we conducted our
audit in accordance with International Standards on Auditing adopted in the Republic of Latvia
(ISAs). Our responsibilities under those standards are further described in the Auditors’
Responsibility for the Audit of the Separate and Consolidated Financial Statements section
of our report.
We are independent of the Company in accordance with the International Code of Ethics for
Professional Accountants (including International Independence Standards) developed by
the International Ethics Standards Board for Accountants (IESBA Code) and the
independence requirements included in the ‘Law on Audit Services‘ of the Republic of Latvia
that are relevant to our audit of the financial statements in the Republic of Latvia. We have
also fulfilled our other professional ethics responsibilities and objectivity requirements in
accordance with the IESBA Code and the ‘Law on Audit Services’ of the Republic of Latvia.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the separate and consolidated financial statements of the current
period. These matters were addressed in the context of our audit of the separate and
consolidated financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be
communicated in our report.
Impairment allowances for Loans and receivables issued without pledge (separate and
consolidated financial statements)
Group’s consolidated financial statements
The gross amount of Loans and receivables issued without pledge as at 31 December 2024:
EUR 116 107 thousand (31 December 2024: EUR 88 388 thousand); impairment losses on
Loans and receivables recognised in 2024: EUR 15 104 thousand (in 2023: EUR 10 687
thousand); total impairment allowance as at 31 December 2024: EUR 12 066 thousand
(31 December 2023: EUR 6 804 thousand).
Company’s separate financial statements
The gross amount of Loans and receivables as at 31 December 2024: EUR 81 640 thousand
(31 December 2023: EUR 64 563 thousand); impairment losses on Loans and receivables
recognised in 2024: EUR 9 471 thousand (in 2023: EUR 6 490 thousand); total impairment
allowance as at 31 December 2024: EUR 7 131 thousand (31 December 2023: EUR 4 228
thousand).
We refer to the separate and consolidated financial statements: Note 2 (m) (Material
accounting policies), (s1.2) (Financial risk management), (t) (Significant assumptions and
estimates), Note 16.
Key audit matter
How we addressed the key audit matter
Loans and receivables issued without
pledge, collectively represent approximately
82% of the Group’s assets as at 31
December 2024 (31 December 2023:
approximately 78%) and approximately 70%
of the Company’s assets as at 31 December
2024 (31 December 2023: approximately
71%). The Group offers unsecured loan
products issued to private individuals.
ln accordance with IFRS 9, the Company
and the Group calculate impairment
allowance based on expected credit losses
("ECLs"). ECLs are estimated mainly based
on the historical pattern of losses and
changes in loan risk characteristics based
on qualitative and quantitative indicators
such as the probability of default ("PD") and
loss given default ("LGD"). The Company
and the Group incorporate forward looking
information into modelling techniques
applied.
Impairment allowance represents the
Management's best estimate of the
expected credit losses related the Loans and
receivables issued without pledge as at the
Our procedures in the area performed in
coordination with our own financial risk
modelling specialists and information
technology (IT) specialists included, among
others:
• inspecting the Group's expected credit
loss ("ECL") methodology and assessing
its compliance with the relevant
requirements of IFRS 9;
• testing for operating effectiveness
selected key controls over the approval
and recording and monitoring of loans;
• assisted by our own IT specialists, testing
for operating effectiveness the application
and general IT controls related to the ECL
estimation process including calculation
of days past due and the scripts used in
determining ECL;
• assessing the definition of default and the
staging criteria and their consistent
application by evaluating these against
the requirements of IFRS 9;
• independently assessing and challenging
the forward-looking information used in

reporting date and requires significant
judgments.
Due to the above factors, we consider the
area to be associated with a significant risk
of material misstatement, which requires our
increased attention in the audit. As such, we
determined it to be a key audit matter.
the ECL model, by means of corroborating
inquiries of the Management and
inspection of publicly available
information;
• challenging LGD and PD parameters, by
assessing historical default Ievels and by
reference to historical realized losses on
defaults and loan sales;
• assessing the adequacy of the
Company’s and the Group’s disclosures
on the loss allowances, and credit risk
management in the notes to the separate
and consolidated financial statements.
Fair value measurement of pawn loans (separate and consolidated financial
statements)
Group’s consolidated financial statements
The carrying amount of pawn loans, including accrued interest for pawn loans, as at 31
December 2024: EUR 9 433 thousand (31 December 2023: EUR 7 442 thousand). Income
recognised from pawn loans in 2024: EUR 9 080 thousand (in 2023: EUR 8 104 thousand).
Company’s separate financial statements
The carrying amount of pawn loans, including accrued interest for pawn loans, as at 31
December 2024: EUR 9 064 thousand (31 December 2023: EUR 7 437 thousand). Income
recognised from pawn loans in 2024: EUR 8 991 thousand (in 2023: EUR 8 104 thousand).
We refer to the separate and consolidated financial statements: Note 2 (e) and (m) (Material
accounting policies), (t) (Significant assumptions and estimates), Note 16 and Note 32.
Key audit matter
How we addressed the key audit matter
The Company and the Group have a
significant balance of pawn loans. The
Company and the Group measure pawn
loans at fair value, with all changes therein
recorded in profit or loss as a consequence
of significant management judgment applied
relating to these loans not meeting the solely
payments of principal and interest (SPPI)
criteria set out in IFRS 9.
The valuation of the Company’s and Group’s
pawn loans measured at fair value involves
significant judgements and estimates made
by the management using the input from
internal valuation of collaterals, particularly
in relation to sensitivity of assumptions
Our procedures included, among others:
• assessing the management judgment
made in relation to the assessment of
compliance with solely payments of
principal and interest criteria for pawn
loans by inspecting the general terms and
conditions applied to pawn loans,
inspecting statistics relating to past
outcomes for defaulted pawn loans in
relation to realisation of collateral;
• based on our understanding of the
Company’s and Group’s approach to
valuation of pawn loans, assessing the
applied valuation methodology against

regarding selling costs of collateral, discount
rates and cash flow projections.
Due to the above factors, we consider the
area to be associated with a significant risk
of material misstatement, which requires our
increased attention in the audit. As such, we
determined it to be a key audit matter.
the requirements of IFRS 13 Fair Value
Measurement;
• using our own internal valuation
specialists, challenging the valuation
methods and key assumptions applied by
the Company’s and Group’s
management, including those in respect
of selling costs of collateral, discount rates
and cash flow projections, and performing
a sensitivity analysis in respect of the
above key assumptions to evaluate the
effects of their potential changes on the
fair values;
• assessing the adequacy of the
Company’s and the Group’s disclosures
on pawn loans and the valuation
techniques and significant unobservable
inputs disclosed in the notes to the
separate and consolidated financial
statements.
Reporting on Other Information
The Company’s and Group’s management is responsible for the other information. The other
information comprises:
— Information on the Company and subsidiaries, as set out from pages 3 to 5 of the
accompanying separate and consolidated Annual Report,
— the Statement of Management’s Responsibility, as set out on page 6 of the accompanying
separate and consolidated Annual Report,
— the Management Report, as set out from page 7 to 17 of the accompanying separate and
consolidated Annual Report,
— the Statement of Corporate Governance prepared by the management as a stand-alone
statement which at the date of the auditor’s report is publicly available on the Group’s
website https://delfingroup.lv/reports,
— Remuneration report prepared by the management as a stand-alone statement which at
the date of the auditor’s report is publicly available on the Group’s website
https://delfingroup.lv/reports.
Our opinion on the separate and consolidated financial statements does not cover the other
information included in the separate and consolidated Annual Report, and we do not express
any form of assurance conclusion thereon, except as described in the Other Reporting
Responsibilities in Accordance with the Legislation of the Republic of Latvia Related to Other
Information section of our report.
In connection with our audit of the separate and consolidated financial statements, our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the separate and consolidated financial statements
or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed and in light of the knowledge and understanding of
the Company, Group and their environment obtained in the course of our audit, 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.
Other Reporting Responsibilities in Accordance with the Legislation of the Republic of Latvia
Related to Other Information
In addition, in accordance with the ‘Law on Audit Services‘ of the Republic of Latvia with
respect to the Management Report, our responsibility is to consider whether the Management
Report is prepared in accordance with the requirements of the ‘Law on the Annual Reports
and Consolidated Annual Reports’ of the Republic of Latvia.
Based solely on the work required to be undertaken in the course of our audit, in our opinion,
in all material respects:
— the information given in the Management Report for the financial year for which the
separate and consolidated financial statements are prepared is consistent with the
separate and consolidated financial statements; and
— the Management Report has been prepared in accordance with the requirements of the
‘Law on the Annual Reports and Consolidated Annual Reports’ of the Republic of Latvia.
In accordance with the ‘Law on Audit Services‘ of the Republic of Latvia with respect to the
Statement of Corporate Governance, our responsibility is to consider whether the Statement
of Corporate Governance includes the information required in section 56.
1
, first paragraph,
clause 3, 4, 6, 8 and 9, as well as section 56.
2
, second paragraph, clauses 5 and 8, and third
paragraph of the ‘Financial Instruments Market Law‘ of the Republic of Latvia.
In our opinion, the Statement of Corporate Governance includes the information required in
section 56.1, first paragraph, clauses 3, 4, 6, 8 and 9, as well as section 56.2, second
paragraph, clauses 5 and 8, and third paragraph of the ‘Financial Instruments Market Law‘ of
the Republic of Latvia.
Furthermore, in accordance with the ‘Law on Audit Services’ of the Republic of Latvia our
responsibility is to consider whether the Remuneration Report includes the information
required in section 59.4 of the ‘Financial Instruments Market Law‘ of the Republic of Latvia,
and whether material misstatements have been identified in the Remuneration Report in
relation to the financial information disclosed in the Annual Report.
In our opinion, the Remuneration Report includes the information required in section 59.4 of
the ‘Financial Instruments Market Law‘ of the Republic of Latvia, and no material
misstatements have been identified in the Remuneration Report in relation to the financial
information disclosed in the separate and consolidated Annual Report.
Responsibilities of Management and Those Charged with Governance for the Separate and
Consolidated Financial Statements
Management is responsible for the preparation of the separate and consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as
adopted by the European Union and for such internal control as management determines is
necessary to enable the preparation of separate and consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the separate and consolidated financial statements, management is responsible
for assessing the Company’s and 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 management either intends to liquidate the Company and Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s and Group’s
financial reporting process.
Auditors’ Responsibility for the Audit of the Separate and Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the separate and
consolidated financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors’ 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 separate and 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 separate and 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 Company’s and 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 Company’s
and 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 auditors’ report to the related
disclosures in the separate and 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 auditors’ report. However, future events or conditions may
cause the Company and Group to cease to continue as a going concern.
— Evaluate the overall presentation, structure and content of the separate and consolidated
financial statements, including the disclosures, and whether the separate and
consolidated financial statements represent the underlying transactions and events in a
manner that achieves a fair presentation.
— Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the group as a basis for
forming an opinion on the group financial statements. We are responsible for the
direction, supervision and review of the audit work performed for purposes 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 communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the separate and consolidated financial
statements of the current period and are therefore the key audit matters. We describe these
matters in our auditors’ 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.
Report on Other Legal and Regulatory Requirements
Other Reporting Responsibilities and Confirmations Required by the Legislation of the
Republic of Latvia and the European Union when Providing Audit Services to Public
Interest Entities
We were appointed by those charged with governance on 10 June 2022 to audit the separate
and consolidated financial statements of DelfinGroup AS for the year ended 31 December
2024. Our total uninterrupted period of engagement is 3 years, covering the periods ending
31 December 2022 to 31 December 2024.
We confirm that:
— our audit opinion is consistent with the additional report presented to the Audit Committee
of the Company and Group;
— as referred to in the paragraph 37.6 of the ’Law on Audit Services’ of the Republic of
Latvia we have not provided to the Company and Group the prohibited non-audit services
(NASs) referred to of EU Regulation (EU) No 537/2014. We also remained independent
of the audited entity and group in conducting the audit.
For the period to which our statutory audit relates, we have not provided any services to the
Company and Group in addition to the audit, which have not been disclosed in the
Management Report or in the separate and consolidated financial statements of the
Company and the Group.
Report on the Auditors’ Examination of the European Single Electronic Format (ESEF)
Report
In addition to our audit of the accompanying separate and consolidated financial statements,
as included in the separate and consolidated Annual Report, we have also been engaged by
the management of the Group to express an opinion on compliance of the separate and
consolidated financial statements prepared in a format that enables uniform electronic
reporting (“the ESEF Report”) with the requirements of the Commission Delegated Regulation
(EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European
Parliament and of the Council with regard to regulatory technical standards on the
specification of a single electronic reporting format (the “RTS on ESEF”).

Responsibilities of Management and Those Charged with Governance for the ESEF Report
Management is responsible for the preparation of the separate and consolidated financial
statements in a format that enables uniform electronic reporting that complies with the RTS
on ESEF. This responsibility includes:
— the preparation of the separate and consolidated financial statements in the applicable
xHTML format;
— the selection and application of appropriate iXBRL tags, using judgment where
necessary;
— ensuring consistency between digitised information and the consolidated financial
statements presented in human-readable format; and
— the design, implementation and maintenance of internal control relevant to the application
of the RTS on ESEF.
Those charged with governance are responsible for overseeing the financial reporting
process.
Auditors’ Responsibility for the Examination of the ESEF Report
Our responsibility is to express an opinion on whether the ESEF report complies, in all
material respects, with the RTS on ESEF, based on the evidence we have obtained. We
conducted our reasonable assurance engagement in accordance with International Standard
on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or
Reviews of Historical Financial Information (ISAE 3000) issued by the International Auditing
and Assurance Standards Board.
A reasonable assurance engagement in accordance with ISAE 3000 involves performing
procedures to obtain evidence about compliance with the RTS on ESEF. The nature, timing
and extent of procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material departures from the requirements of set out in the RTS
on ESEF, whether due to fraud or error. Our procedures included, among other things:
— obtaining an understanding of the tagging process;
— tracing the tagged data to the consolidated financial statements of the Group presented
in human-readable format;
— evaluating the completeness of the Group’s tagging of the consolidated financial
statements;
— evaluating the appropriateness of the Group’s use of iXBRL elements selected from the
ESEF taxonomy and creation of extension elements where no suitable element in the
ESEF taxonomy has been identified;
— evaluating the use of anchoring in relation to the extension elements; and
— evaluating the appropriateness of the format of the separate and consolidated financial
statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Opinion
In our opinion, the ESEF Report of the Company and Group as at and for the year ended 31
December 2024 has been prepared, in all material respects, in accordance with the
requirements of the RTS on ESEF.
KPMG Baltics SIA
Licence No. 55
Rainers Vilāns
Member of the Board
Latvian Sworn Auditor
Certificate No. 200
Riga, Latvia
25 April 2025
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