Eleving Group S.A. - 894500N14T2GUDX0FL66

Notes to the Consolidated
Financial Statements

1. Corporate information

Eleving Group S.A. (hereinafter “the Parent Company”) is a Luxembourg company incorporated on December 18, 2012 as a Société Anonyme for an unlimited duration, subject to the Company Law in Luxembourg. The Parent Company is registered in Luxembourg trade register under number B174457.

Shares of the Parent Company are listed in Frankfurt stock exchange and Nasdaq Baltics stock exchange platforms (ELEVR | ISIN LU2818110020).

The consolidated financial statements include Eleving group S.A. and its associated undertakings (hereinafter “the Group”):


Subsidiary name	Country of incorporation	Registration number	Principal activities	% equity interest
Subsidiary name	Country of incorporation	Registration number	Principal activities	2024	2023


Eleving Vehicle Finance AS	Latvia	42103088260	Management services	98.85%	98.86%
Mogo Peru S.A.C.	Peru	20609973618	Financing	98.85%	98.86%
Mogo UCO LLC	Armenia	42	Financing	98.85%	98.86%
Eleving Finance AS	Latvia	40203150030	Management services	98.70%	98.70%
SIA EC Finance Group	Latvia	40203082656	Management services	98.70%	87.00%
EC finance branch in Botswana	Botswana	BW00004103567	Management services	98.70%	87.00%
AS ExpressCredit Holding	Latvia	40203169911	Management services	98.70%	87.00%
YesCash Group Ltd	Mauritius	137426 C1/GBL	Financing	98.70%	87.00%
ExpressCredit Ltd	Lesotho	TRMBS:68483	Financing	98.70%	87.00%
ExpressCredit Proprietary Ltd	Botswana	BW00000115487	Financing	98.70%	87.00%
YesCash Zambia LTD	Zambia	120180003452	Financing	98.70%	43.50%
Primero Finance OU	Estonia	12401448	Financing	88.32%	91.19%
Mogo LLC	Georgia	404468688	Financing	88.32%	91.19%
Eleving Georgia LLC	Georgia	402095166	Retail of motor vehicles	88.32%	91.19%
Eleving AM LLC (Longo LLC)	Armenia	286.110.1015848	Retail of motor vehicles	88.32%	91.19%
Mogo OY	Finland	3263702-2	Financing	88.32%	91.19%
Mogo IFN SA	Romania	35917970	Financing	88.32%	91.19%
Eleving Stella AS	Latvia	40103964830	Management services	88.32%	91.19%
Eleving Stella LT UAB	Lithuania	305018069	Management services	88.32%	91.19%
Renti AS	Latvia	40203174147	Rent services	88.32%	89.37%
Mogo AS	Latvia	50103541751	Financing	88.32%	89.37%
MOGO FINANCE LLC JE	Uzbekistan	310380440	Financing	86.55%	89.37%
Mogo Loans SRL	Moldova	10086000260223	Financing	85.23%	88.40%
Mogo LT UAB	Lithuania	302943102	Financing	88.32%	88.28%
Renti UAB	Lithuania	305653232	Financing	88.32%	88.28%
Eleving Solis AS	Latvia	40203182962	Management services	85.72%	84.84%
Eleving Solis UAB	Lithuania	304991028	Management services	85.72%	84.84%
MOGO LOANS SMC LIMITED	Uganda	80020001522601	Financing	85.23%	84.84%
Mogo Auto Ltd	Kenya	PVT-AJUR7BX	Financing	85.72%	84.84%
Green Power Trading LTD (Mogo Kenya Ltd)	Kenya	PVT-BEU3ZKD	Financing	85.72%	84.84%
Mogo Lend LTD	Uzbekistan	305723654	Financing	83.24%	82.38%
Eleving Consumer Finance Holding, AS	Latvia	40203249386	Management services	81.75%	81.74%
ExpressCredit Cash Advance Ltd	Namibia	2016/0767	Financing	78.66%	42.63%
Eleving Consumer Finance AS	Latvia	54103145421	Management services	78.13%	78.12%
Insta Finance LLC	Ukraine	43449827	Financing	78.13%	78.12%
Kredo Finance SHPK	Albania	L71610009A	Financing	78.02%	78.16%
OCN SE Finance SRL	Moldova	1020600028773	Financing	77.55%	77.54%
FINTEK DOO Skopje (TIGO Finance DOOEL)	North Macedonia	7229712	Financing	77.38%	79.41%
OCN Sebo Credit SRL	Moldova	1017600000371	Financing	77.12%	77.30%
Mogo Balkans and Central Asia AS (liquidated on 06.11.2024.)	Latvia	40203150045	Management services	0.00%	100.00%
Mogo Leasing d.o.o. (liquidated on 04.07.2024.)	Bosnia	4202540500009	Financing	0.00%	100.00%
Rocket Leasing OOO (liquidated on 19.12.2024.)	Belarus	193553071	Financing	0.00%	91.19%
ExpressCredit Ltd (liquidated on 31.01.2024.)	Eswatini	R7/55063	Financing	0.00%	87.00%
Autotrade OOO (sold on 07.05.2024.)	Belarus	192846476	Other services	0.00%	87.18%
MOGO Kredit LLC (sold on 07.05.2024.)	Belarus	192981714	Financing	0.00%	87.18%
Next Fin LLC (sold on 23.09.2024.)	Ukraine	42273138	Financing	0.00%	78.12%
SIA Spaceship (reorganized on 07.10.2024.)*	Latvia	40203300224	Car sharing services	0.00%	59.16%

* - Subsidiary was fully consolidated in the Group in 2023, but after reorganization it has been excluded from consolidation in 2024 and disclosed as equity‑accounted investee. See Note 25 for more information.

Changes in equity interest percentages are mainly driven by vesting of share option plans for key management employees.

The core business activity of the Group comprises of providing financing services and loans and advances to customers as well as car retail.

These Consolidated financial statements were authorized for issue by decision of the Board of directors on 28 April 2025.

Shareholders have the financial statements' approval rights after approval by the Board of Directors.

2. Material accounting policy information

a) Basis of preparation

These consolidated financial statements as at and for the year ended 31 December 2024 are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

The Group’s consolidated financial statements and its financial result are affected by accounting policies, assumptions, estimates and management judgement (Note 3), which necessarily have to be made in the course of preparation of the annual consolidated financial statements.

The Group's management makes estimates and assumptions that affect the reported amounts of assets and liabilities within the current and next financial period. All estimates and assumptions required in conformity with IFRS are best estimates undertaken in accordance with the applicable standard. Estimates and judgements are evaluated on a continuous basis, and are based on past experience and other factors, including expectations with regard to future events. Accounting policies and management’s judgements for certain items are especially critical for the Group’s results and financial situation due to their materiality. Future events may occur which cause the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will be recorded in the financial statements, when determinable.

The consolidated financial statements are prepared on a historical cost basis as modified by the recognition of financial instruments measured at fair value, and except for inventory which is accounted in lower of cost or net realizable value and contingent consideration that has been measured at fair value.

Intercompany transactions, balances and gains or losses on transactions between group companies are eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform to the Group’s accounting policies.

The Group's presentation and functional currency is euro (EUR). Accounting policies and methods are consistent with those applied in the previous years, except as described below.

The consolidated financial statements comprise the financial statements of Eleving Group S.A. (Parent company) and entities controlled by the Parent Company (its subsidiaries) as at 31 December 2024. The financial statements of the subsidiaries are prepared for the same reporting period as for the Parent company, using consistent accounting policies.

Control is achieved when the Parent Company 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. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.

The financial statements of the Parent Company and its subsidiaries are consolidated in the Group’s consolidated financial statements by adding together like items of assets and liabilities as well as income and expense. All intercompany transactions, balances and unrealized gains and losses on transactions between controlled members of the Group are eliminated in full on consolidation. The equity and net income attributable to non-controlling interests are shown separately in the statement of financial position and the statement of profit and loss and other comprehensive income.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. The acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction in accordance with IFRS 10. Any excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognized in equity of the parent in transactions where the non-controlling interests are acquired or sold without loss of control. The Group recognizes this effect in retained earnings. If the subsidiary to which these non-controlling interests relate contain accumulated components recognized in other comprehensive income/ (loss), those are reallocated within equity of the Parent.

If the Group loses control over a subsidiary, it:
- Derecognizes the related assets (including goodwill) and liabilities of the subsidiary;
- Derecognizes the carrying amount of any non-controlling interests;
- Derecognizes the cumulative translation differences recorded in equity;
- Recognizes the fair value of the consideration received;
- Recognizes the fair value of any investment retained;
- Recognizes any surplus or deficit in the profit and loss;
- Reclassifies the Group’s share of components previously recognized in other comprehensive income to profit and loss or retained earnings, as appropriate.

Going concern

As the global economy is entering a third year of non-zero key interest rates environment, the Group has managed to post its strongest ever financial results for year 2024 as well as 2023.

The Group’s product structure allows a significant equity build up during the periods of stable growth. Although the Group largely operates with borrowed capital, the interest expense forms only 20.4% (in 2023: 21.3%) from its interest revenue. As at 31 December 2024, the principal of Group’s total borrowings amounted to EUR 339.6 million of which EUR 72.0 million is due for renewal over the following 12 months. The Group’s current assets are EUR 232.6 million, effectively exceeding the principal of borrowings due next 12 months by more than three times. The Group has a track record of successful cash generation and ability to access funding from debt capital markets as well as other sources during protracted periods of economic uncertainty (tested in both 2020, 2022 and onwards), hence the Group is expected to meet its funding requirements for the foreseeable future.

Although exposed to external economic environment, the Group’s portfolio quality is substantially at the control of Group itself as it has the ability to adjust the underwriting standards on a country as well as individual product basis. Practically that means the Group would tighten the underwriting criteria for new loans to be issued if external factors (such as inflation or currency volatility) would potentially impact Group's borrowers' credit worthiness, meaning the Group would seek to issue loans primary to those customers with the highest ability to settle their debts in future. As a result of these activities the ratio of impairment expenses to the interest revenue has decreased by 2 percentage points when comparing year 2024 to the year 2023. Importantly the improvement of the mentioned ratio has been achieved despite having higher net portfolio by 16.0% in 2024 versus 2023.

Given the regional diversification of the Group’s business across three continents and Eastern European region being one of them, it is important to highlight that the Group is not a sanctions target and does not maintain business relations with sanctioned entities. Additionally, two its subsidiary in Ukraine has been substantially scaled down without a substantial impact on the overall Group results and its subsidiary in Belarus has not been fully divested without negative impact on Group's financial results.

1) In Ukraine the Group is focused on collection activities only. The collected funds are being partially repatriated with remainder temporarily being housed in the country. The funds collected as well as temporarily housed in country are not material for the Group and its going concern operations.

2) In April 2024, the Group has completed the sale of Belarus entities coupled with a full refinance of Group's liabilities.

Additionally during June 2024 the Group received a credit rating upgrade from Fitch Ratings upgrading Group from 'B-' to 'B' with a stable outlook. As stated in Fitch’s report, the key drivers for the rating update were improvements in the Group’s performance in the last 24 months, including lower leverage, a longer record of business model stability, and access to debt capital markets.

During October 2024 the Group successfully placed the largest IPO in Latvia and one other largest ones in Baltics by attracting EUR 29 million and further strengthening its capital base. The Group's shares have become traded in Nasdaq Riga Baltic Main List and on the Frankfurt Stock Exchange’s Prime Standard This event together with already established independent supervisory board and published dividend policy, notably improves Group's credit profile and its access to the European capital markets.

Total equity reached EUR 108.1 million at the end of 2025, compared to EUR 65.4 million at the end of the corresponding reporting period a year ago. Net profit for year reached EUR 29.6 million, an increase of 21%, compared to the corresponding reporting period a year ago (2023: EUR 24.5 million).

These consolidated financial statements are prepared on a going concern basis.

2. Material accounting policy information (continued)

b) Changes in accounting policy and disclosures

The accounting policies adopted are consistent with those of the previous financial year, except changes disclosed under section e).

c) New standards, interpretations and amendments adopted from 1 January 2024

The following amendments are effective for the period beginning 1 January 2024:

- Supplier Finance Arrangements (Amendments to IAS 7 & IFRS 7);
- Lease Liability in a Sale and Leaseback (Amendments to IFRS 16);
- Classification of Liabilities as Current or Non-Current (Amendments to IAS 1); and
- Non-current Liabilities with Covenants (Amendments to IAS 1).

These amendments to various IFRS Accounting Standards are mandatorily effective for reporting periods beginning on or after 1 January 2024. See the applicable notes for further details on how the amendments affected the Group.

Supplier Finance Arrangements (Amendments to IAS 7 & IFRS 7)

On 25 May 2023, the IASB issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures.

The amendments require entities to provide certain specific disclosures (qualitative and quantitative) related to supplier finance arrangements. The amendments also provide guidance on characteristics of supplier finance arrangements.

These amendments had no effect on the consolidated financial statements of the Group.

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

On 22 September 2022, the IASB issued amendments to IFRS 16 - Lease Liability in a Sale and Leaseback (the Amendments).

Prior to the Amendments, IFRS 16 did not contain specific measurement requirements for lease liabilities that may contain variable lease payments arising in a sale and leaseback transaction. In applying the subsequent measurement requirements of lease liabilities to a sale and leaseback transaction, the Amendments require a seller-lessee to determine ‘lease payments’ or ‘revised lease payments’ in a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee.

These amendments had no effect on the consolidated financial statements of the Group.

Classification of Liabilities as Current or Non-Current and Non-current Liabilities with Covenants (Amendments to IAS 1)

The IASB issued amendments to IAS 1 in January 2020 Classification of Liabilities as Current or Non-current and subsequently, in October 2022 Non-current Liabilities with Covenants.

The amendments clarify the following:

- An entity’s right to defer settlement of a liability for at least twelve months after the reporting period must have substance and must exist at the end of the reporting period.

- If an entity’s right to defer settlement of a liability is subject to covenants, such covenants affect whether that right exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the end of the reporting period.

- The classification of a liability as current or non-current is unaffected by the likelihood that the entity will exercise its right to defer settlement.

- In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entity’s own equity instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the option is classified as an equity instrument.

These amendments have no effect on the measurement of any items in the consolidated financial statements of the Group.

d) New standards, interpretations and amendments not yet effective

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early.

The following amendments are effective for the period beginning 1 January 2025:

- Lack of Exchangeability (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates).

The following amendments are effective for the period beginning 1 January 2026:

- Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7);

- Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7).

The following amendments are effective for the period beginning 1 January 2027:

- IFRS 18 Presentation and Disclosure in Financial Statements;

- IFRS 19 Subsidiaries without Public Accountability: Disclosures.

The Group is currently assessing the effect of these new accounting standards and amendments.

IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024 supersedes IAS 1 and will result in major consequential amendments to IFRS Accounting Standards including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures.

The Group is yet to assess the impact on its accounting policies of IFRS 19 in the future.

2. Material accounting policy information (continued)

e) Reclassification of comparative indicators

To further improve the readability of the Group's Consolidated Financial Statements, the Group has decided to merge two items of its statement of financial position into one. Previously the Group split its receivables related to customer financing in two separate items based on legal framework. The Group has recognized that such split of receivables does not show desired information, therefore it has decided to merge those receivables into one and disclose more significant information in Notes, respectfully showing the segragation of its financing receivables according to their risk profile and showing them in secured and unsecured portions.

As a result, the Group has restated the balances as at 31 December 2023.


	Balance at 31.12.2023 in annual report for 2023	Restatements	Balance at 31.12.2023 after restatement
Statement of financial position - Assets
Statement of financial position - Assets


NON-CURRENT ASSETS
Finance lease receivables		59,798,508	(59,798,508)	-
Loans and advances to customers		95,055,945	59,798,508	154,854,453

CURRENT ASSETS
Finance lease receivables		52,204,095	(52,204,095)	-
Loans and advances to customers		106,145,607	52,204,095	158,349,702
	TOTAL:	313,204,155	-	313,204,155

Foreign currency translation

The consolidated financial statements are presented in euro (EUR), which is the presentation currency of the Group. EUR is the monetary unit of Luxembourg, where the Parent Company is established. Transactions in foreign currencies are translated into the euro at the reference exchange rate fixed by the European Central Bank at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into EUR applying the reference exchange rate established by the European Central Bank at the last day of the reporting year. The differences arising on settlements of transactions or on reporting foreign currency transactions at rates different from those at which these transactions have originally been recorded in the profit and loss and presented within finance costs.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. The non-monetary items are carried at historical cost and no further retranslation is performed.

For the purpose of presenting consolidated financial statements, the assets and liabilities of foreign operations except non-monetary items, valued at historical exchange rate are translated into euros at the rate of exchange prevailing at the reporting date and their statements of profit and loss and other comprehensive income are translated at exchange rates prevailing at the dates of transactions. If subsidiary’s functional currency differs from the presentation currency of the Group, income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during the period, in which case the currency exchange rates at the date of the transactions are applied. The exchange differences arising on translation for consolidation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is reclassified in profit or loss.

Currency exchange rates used for translation of foreign operations into euros:


31.12.2024	31.12.2023	2024 average	2023 average
1 EUR	1 EUR	1 EUR	1 EUR


GEL	2.9306	2.9753	2.9455	2.8436
RON	4.9741	4.9746	4.9746	4.9464
ALL	98.15	103.88	100.70	108.75
MDL	19.3106	19.3574	19.2533	19.6431
BYR	3.4864	3.5363	3.3131	3.2544
UAH	43.9266	42.2079	43.4749	39.5619
UZS	13,436.01	13,731.82	13,694.50	12,694.06
AMD	413.89	447.90	424.88	424.59
MKD	61.4950	61.495	61.5728	61.5570
BAM	1.95583	1.9558	1.95583	1.95583
KEL	134.2900	173.78	145.8864	151.3074
UGX	3,822.52	4,172.28	4,064.98	4,029.01
BWP	14.5138	14.8588	14.6712	14.4545
ZMW	28.9679	28.3798	28.2497	21.8612
LSL	19.5710	20.2064	19.8347	19.9753
SZL	19.5710	20.2064	19.8261	19.9753
NAD	19.5710	20.2064	19.8339	19.9807

Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, including contingent consideration, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, the Group elects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed and included in other operating expense in the statement of profit and loss.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date and any difference is recognized in profit and loss.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group will retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. During the measurement period, the Group will also recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as the Group receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability will be recognized in accordance with IFRS 9 in profit or loss. If the contingent consideration is classified as equity, it will not be remeasured. Subsequent settlement is accounted for within equity. In instances where the contingent consideration does not fall within the scope of IFRS 9, it is remeasured at fair value at each reporting date and subsequent changes in fair value are recognized in profit or loss.

2. Material accounting policy information (continued)

Discontinued operations

A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:
- represents a separate major line of business or geographic area of operations;
- is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or
- is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale.
When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year.

Goodwill

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, over the net 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 recognized in profit or loss statement immediately.

Goodwill is 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. Goodwill is allocated to the cash-generating units. Such units represent the smallest groups of assets that generate cash inflows from continuing use that are largely independent of the cash flows of other assets or CGUs. Measurement of gains or losses on disposal of an operation within a cash generating unit to which goodwill has been allocated include the carrying amount of goodwill associated with the disposed operation, generally measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit which is retained. Impairment is recognized whenever the carrying value of CGU to which goodwill is allocated is above the recoverable value of such CGU.

The recoverable amount of cash generating units has been determined based on value in use calculations. These calculations require the use of estimates as disclosed in Note 20.

Internally generated intangible assets

Internally generated intangible assets primarily include the development costs of the Group's information management systems. These costs are capitalized only if they satisfy the criteria as defined by IAS38 and described below.

Internal and external development costs on management information systems arising from the development phase are capitalized. Significant maintenance and improvement costs are added to the initial cost of assets if they specifically meet the capitalization criteria.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. Internally generated intangible assets cost value is increased by Group's information technology costs - salaries and social security contribution capitalization. All other expenditure is recognised in profit or loss as incurred. Asset useful life is reassessed by management at each year end and amortization periods adapted accordingly.

Internally generated intangible assets are amortized over their useful lives of 7 years. The main internally generated intangible assets are CRM systems.

According to IAS38, development costs shall be capitalized if, and only if, the Group can meet all of the following criteria:

- the project is clearly identified and the related costs are itemized and reliably monitored;
- the technical and industrial feasibility of completing the project is demonstrated;
- there is a clear intention to complete the project and to use or sell the intangible asset arising from it;
- the Group has the ability to use or sell the intangible asset arising from the project;
- the Group can demonstrate how the intangible asset will generate probable future economic benefits;
- the Group has adequate technical, financial and other resources to complete the project and to use or sell the intangible asset.

When these conditions are not satisfied, development costs generated by the Group are recognized as an expense when incurred.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is completed and the asset is available for use.

Additional information is included in Notes 3 and 20.

Amortization is calculated on a straight-line basis over the estimated useful life of the asset as follows:


	IT systems					- over 7 years.

Other intangible assets

Other intangible non-current assets are stated at cost and amortized over their estimated useful lives on a straight-line basis. The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Losses from impairment are recognized where the carrying value of intangible non-current assets exceeds their recoverable amount.

Other intangible assets mainly consists of acquired computer software products.

Amortization is calculated on a straight-line basis over the estimated useful life of the asset as follows:


	Concessions, patents, licences and similar rights					- over 1 year;
	Internally developed intangible assets					- over 7 years;
	Other intangible assets					- over 2 to 7 years.

Trademarks, licenses and customer contracts (if separable) acquired in a business combination are recognized at fair value at the acquisition date.

Trademarks are used to identify and distinguish specific brand names of companies. The rights to use brand names have a set expiry date, however it is renewable at a notional cost. The group intends to renew the trademark continuously and past evidence supports its ability to do so. An analysis of future cash flows provides evidence that the brands will generate net cash inflows for the group for an indefinite period. Therefore, the trademarks are considered to have infinite useful lives and are measured at cost less accumulated impairment losses if the recoverable amount is lower than carrying value. Such impairment testing is done annually by allocating trademarks to relevant CGUs and estimating their value in use (VIU). Please see Note 20 for further details.

2. Material accounting policy information (continued)

Property, plant and equipment

Equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as described below. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items:


	Computers					- over 3 years;
	Furniture					- over 5 years;
	Vehicles					- over 5 years;
	Leasehold improvements					- over lease term;
	Other equipment					- over 2 years.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only then when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The carrying values of equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of equipment is the higher of an asset’s fair value less cost to sell and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in the statement of profit and loss in the impairment expense caption.

An item of equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of profit and loss in the year the item is derecognized.

Depreciation methods, useful lives and residual values of property, plant and equipment are reviewed at each reporting date and adjusted if appropriate.

Rental fleet

Rental fleet includes assets leased by the Group (as lessor) under operating leases. Group accounts for the underlying assets in accordance with IAS 16. Depreciation policy for the underlying assets subject to operating leases is consistent with the Group’s depreciation policy for similar assets (vehicles) and amounts to 7 years.

Group adds initial direct costs, including The Global Positioning System (GPS) costs and dealership commissions, incurred in obtaining the operating lease to the carrying amount of the underlying asset and recognizes those costs as an expense over the lease term on the same basis as the lease income.

The Group applies the general principles described under ‘Critical accounting estimates and judgements’ (Note 3) to determine whether an underlying asset subject to an operating lease may have residual value unrecoverable and impairment loss may need to be recognized.

Financial assets

Financial instruments - initial recognition

Date of recognition

Loans and advances to customers are recognized when funds are transferred to the customers’ accounts. Other assets are recognized on the date when Group enters into the contract giving rise to the financial instruments.

Initial measurement of financial instruments

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments, as described further in the accounting policies. Financial instruments are initially measured at their fair value (which is generally equal to the transaction price) adjusted for transaction costs that are directly attributable to its acquisition or issue, except in the case of financial assets and financial liabilities recorded at FVPL.

Classification of financial assets

The Group measures Loans and advances to customers, Loans to related parties, Receivables from related parties, cash equivalents and Other loans and receivables at amortized 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 (SPPI) on the principal amount outstanding.

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

2. Material accounting policy information (continued)

Business model assessment

The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective - the risks that affect the performance of the business model (and the financial assets held within that business model) and the way those risks are managed. The frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectations about future sales activity are also important aspects of the Group’s assessment. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Group’s stated objective for managing the financial assets is achieved and how cash flows are realised. The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’ scenarios into account. If cash flows after initial recognition are realized in a way that is different from the Group's original expectations, the Group does not change the classification of the remaining financial assets held in that business model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward. The assessed business model is with the intention to hold financial assets in order to collect contractual cash flows. Sales that take place from these portfolios relate to credit events. Loans from portfolios might be sold to debt collector agencies when underlying debtors have defaulted on their obligations. When, and only when, an entity changes its business model for managing financial assets it shall reclassify all affected financial assets. No financial liability reclassifications take place.

SPPI test

As a second step of its classification process the Group assesses, where relevant, the contractual terms of the financial assets to identify whether they meet the SPPI test. Financial assets subject to SPPI testing are loans and advances to customers and loans to related parties that solely include payments of principal and interest. ‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are repayments of principal or amortization of the premium/discount). The most significant elements of interest within a lending arrangement are typically the consideration for the time value of money and credit risk.

In assessing whether the contractual cash flows are SPPI, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.
In making the assessment, the Group principally considers:
   - contingent events that would change the amount and timing of cash flows;
   - prepayment and extension terms; and
   - terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse loans).

In general, the loan contracts stipulate that in case of default and collateral repossession the claim is not limited to the collateral repossession and if the collateral value does not cover the remaining debt, additional resources can still be claimed from the borrower to compensate for credit risk losses. Accordingly, this aspect does not create obstacles to passing SPPI test. However, in some cases, loans made by the Group that are secured by collateral of the borrower limit the Group’s claim to cash flows of the underlying collateral (non-recourse loans). The group applies judgment in assessing whether the non-recourse loans meet the SPPI criterion. The Group typically considers the following information when making this judgement:
   - whether the contractual arrangement specifically defines the amounts and dates of the cash payments of the loan;
   - the fair value of the collateral relative to the amount of the underlying loan;
   - the ability and willingness of the borrower to make contractual payments, notwithstanding a decline in the value of collateral;
   - the Group’s risk of loss on the asset relative to a full-recourse loan; and
   - whether the Group will benefit from any upside from the underlying assets.

According to the judgement made the non-recourse loans that are secured by collateral of the borrower meet the SPPI criterion.

Embedded derivatives

The Group has certain call and put option agreements that can accelerate repayment of the issued bonds. These options arise out of bond (host contract) prospectus and individual agreements with certain bondholders and meet the definition of an embedded derivative in accordance with IFRS 9. An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided that, in the case of a non-financial variable, it is not specific to a party to the contract. A derivative that is attached to a financial instrument, but is contractually transferable independently of that instrument, or has a different counterparty from that instrument, is not an embedded derivative, but a separate financial instrument. The Group accounts for an embedded derivative separately from the host contract when:
   - the host contract is not an asset in the scope of IFRS 9;
   - the host contract is not itself carried at FVPL;
   - the terms of the embedded derivative would meet the definition of a derivative if they were contained in a separate contract; and
   - the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract.

Separated embedded derivatives are measured at fair value, with all changes in fair value recognised in profit or loss (unless they form part of a qualifying cash flow or net investment hedging relationship) and presented in the statement of financial position together with the host contract. The Group has derivatives embedded in financial liabilities and non-financial host contracts, see further information under 'Separation of embedded derivatives from the host contract' (Note 3). Financial assets are classified based on the business model and SPPI assessments as outlined above. Please refer to Note 3 for further discussion on embedded derivative details and considerations of separability.

The Group also has receivables recognized at fair value due to them containing a derivative element. When measuring the fair value of an asset, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques.

Reclassification of financial assets

The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances in which the Group acquires, disposes of, or terminates a business line and changes its business model for managing financial assets.
Financial liabilities are never reclassified. The Group did not reclassify any of its financial assets or liabilities in 2024 nor 2023.

2. Material accounting policy information (continued)

Derecognition of financial assets

Derecognition provisions below apply to all financial assets measured at amortized cost.

Derecognition due to substantial modification of terms and conditions

The Group derecognizes a loan to a customer when the terms and conditions have been renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognized as a derecognition gain or loss, to the extent that an impairment loss has not already been recorded. The newly recognized loans are classified as Stage 1 for ECL measurement purposes, unless the new financial asset is deemed to be purchased or originated credit impaired (POCI).

When assessing whether or not to derecognize a financial asset, the Group evaluates whether the cash flows of the modified asset are substantially different and the Group considers the following qualitative factors:
   - Change in currency of the loan
   - Change in counterparty
   - If the modification is such that the instrument would no longer meet the SPPI criterion for financial asset
   - Whether legal obligations have been extinguished.
   - Furthermore, for loans to customers the Group specifically considers the purpose of the modification for increase in loan principal. It is evaluated whether modification was entered into for commercial reasons upon customer initiative or for credit restructuring reasons.

Management has performed analysis of the changes being made due to business reasons and evaluated that changes due to business reasons result in substantial modification of terms and conditions. This is in line with the objective of this modification that is to originate a new asset with substantially different present value of expected cash flows. If the customer was not in delay, and the principal was increase on a mutual agreement, the respective modification is considered to occur for a commercial reasons and results in derecognition of the initial loan receivable.
Other modifications to the agreement terms are treated as modifications that do not result in derecognition (see section on Modifications below).

Derecognition other than for substantial modification

A financial asset is derecognized when the rights to receive cash flows from the financial asset have expired. The Group also derecognizes the financial asset if it has both transferred the financial asset and the transfer qualifies for derecognition.
The Group has transferred the financial asset if the Group has transferred its contractual rights to receive cash flows from the financial asset.

The Group has transferred the asset if, and only if, either:
- The Group has transferred its contractual rights to receive cash flows from the asset or
- It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement.

Pass-through arrangements are transactions when Group retains the contractual rights to receive the cash flows of a financial asset (the 'original asset'), but assumes a contractual obligation to pay those cash flows to one or more entities (the 'eventual recipients'), when all of the following three conditions are met:
   - Group has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short-term advances by the entity with the right of full recovery of the amount lent plus accrued interest at market rates;
   - Group cannot sell or pledge the original asset other than as security to the eventual recipients for the obligation to pay them cash flows;
   - Group has to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the Group is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents during the short settlement period from the collection date to the date of required remittance to the eventual recipients, and interest earned on such investments is passed to the eventual recipients.

A transfer only qualifies for derecognition if either:
- The Group has transferred substantially all the risks and rewards of the asset, or
- The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Modifications

The Group sometimes makes modifications to the original terms of loans a response to the borrower’s financial difficulties, rather than taking possession or to otherwise enforce collection of collateral. The Group considers a loan restructured when such modifications are provided as a result of the borrower’s present or expected financial difficulties and the Group would not have agreed to them if the borrower had been financially healthy. Indicators of financial difficulties include default or DPDs prior to the modifications. Such modifications may involve extending the payment arrangements and the agreement of new loan conditions.

If the modification does not result in cash flows that are substantially different, as set out in the preceding section, the modification does not result in derecognition. Based on the change in cash flows discounted at the original EIR, the Group records a modification gain or loss in interest revenue/expenses calculated using the effective interest method (Note 4, 5) in the consolidated statements of profit and loss, to the extent that an impairment loss has not already been recorded (Note 7). Further information on modified financial assets is disclosed in the following section on impairment.

Further, as described in section on 'Derecognition due to substantial modification of terms and conditions' if modification is performed for commercial reasons, then it is considered to result in derecognition of the initial loan receivable. Such modifications include increase in the loan amount and increase in loan term, which are agreed upon with customers for commercial reasons (i.e.-, customers and the Group are both interested in substantially modifying the scope of the loan transaction). Whenever such an agreement to modify is reached the old agreement and respective receivable is derecognized.

Treatment of non-substantial modifications

If expectations of fixed rate financial assets’ cash flows (such assets present core part of Group' s financial asset base) are revised for reasons other than credit risk, then changes to future contractual cash flows are discounted at the original EIR with a consequential adjustment to the carrying amount. The difference from the previous carrying amount is booked as a positive or negative adjustment to the carrying amount of the financial asset on the consolidated statement of financial position with a corresponding increase or decrease in Interest revenue/expense calculated using the effective interest method.

The carrying amount of the financial asset or financial liability is adjusted if the Group revises its estimates of payments or receipts. If modification of a financial asset or liability measured at amortized cost does not result in the derecognition a modification gain/loss is calculated. The adjusted carrying amount is calculated based on the revised effective interest rate and the change in carrying amount is recorded as interest income or expense.

Changes in the contractual cash flows of the asset are recognized in statement of profit and loss and any costs or fees incurred adjust the carrying amount of the modified financial asset and are amortized over the remaining term of the modified instrument. Therefore, the original EIR determined at initial recognition is revised on modification to reflect any costs or fees incurred.

2. Material accounting policy information (continued)

Overview of the expected credit loss principles

The Group recognizes the allowance for expected credit losses for all loans and other debt financial assets not held at FVPL. In this section all referred to as ‘financial instruments’.

If there has been no significant increase in credit risk since origination, the ECL allowance is based on the 12 months’ expected credit loss (12mECL) as outlined in below. If there has been a significant increase in credit risk since initial recognition, the ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL). The Group’s policies for determining if there has been a significant increase in credit risk are set out in below.

The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date. Both LTECLs and 12mECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

The Group has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. This is further explained in section on Significant increase in credit risk (Note 3).

Impairment of loans and advances to customers

Defining credit rating

The Group’s core business assets - loans and advances to customers - are of retail nature, they are therefore grouped per countries and products for a collective ECL calculation that is modelled based on DPD (days past due) classification. Specifically, the Group analyzes its portfolio of loans and advances to customers by segregating receivables in categories according to: country, product group, days past due and presence of underlying collateral (for secured products). Secured loans (more specifically vehicle secured loans) are combined together due to similar nature of the products.

The Group continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a portfolio of instruments is subject to 12m ECL or LTECL, the Group assesses whether there has been a significant increase in credit risk since initial recognition. When estimating ECLs on a collective basis for a group of similar assets, the Group applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition across the portfolios within the country based on product type - secured or unsecured product.

The Group segregates loans and advances to customers in the following categories:

Secured loans (mature countries*):

1) Not past due

2) Days past due up to 30 days

3) Days past due 31 up to 60 days

4) Days past due over 60 days

5) unsecured (general definition: days past due over 90 or collateral is not available, i.e. lost or sold).

* - Matured countries - Operations in Latvia, Estonia, Lithuania, Georgia, Armenia, Romania, Moldova.
Operations in these countries are the longest, with the smoothest processes, therefore consistent lending practices in these countries have a long enough track record. Refer to Eleving Vehicle Finance only.

Secured loans (non-mature countries*):

1) Not past due

2) Days past due up to 25 days (up to 30 days for Africa region)

3) Days past due 26 up to 34 days (31 - 34 days for Africa region)

4) Days past due over 35 days

5) unsecured (general definition: days past due over 90 or collateral is not available, i.e. lost or sold).

* - Non-matured countries - Operations in Kenya, Uganda and Uzbekistan. Refer to Eleving Vehicle Finance only.

Loans and advances to customers (unsecured loans, refer to Eleving Vehicle Finance only):

1) Not past due

2) Days past due up to 30 days

3) Days past due 31 up to 60 days

4) Days past due over 60 days

Loans and advances to customers (unsecured loans, acquired businesses*):

1) Not past due

2) Days past due up to 30 days

3) Days past due 31 up to 60 days

4) Days past due 61 up to 90 days

5) Days past due over 90 days

* - Businesses acquired during 2020 and 2023 - the term refers to unsecured consumer lending companies acquired in 2020 and 2023; acquired companies operate in Moldova, Ukraine, North Macedonia, Albania, Namibia, Botswana, Zambia and Lesotho. Term is introduced to distinguish unsecured consumer lending operations in these countries from Eleving greenfield investments into unsecured consumer lending operations in Latvia, Estonia, Armenia and Lithuania as there are differences in product set up and processes.

2. Material accounting policy information (continued)

Before the acquisition of consumer unsecured portfolios, the Group made due diligence on the impairment of respective portfolios. It was concluded that applied methodology is inline with the IFRS9 standard, it is well aligned with debt collections and other critical business processes and it is quite prudent. Although methodology differed from the one applied for Mogo unsecured portfolios it was decided to keep the applied methodology.

Based on the above process, the Group groups its loans into Stage 1, Stage 2, and Stage 3, as described below:

The Group defines staging predominantly based on DPD and aligns it with the debt collections processes. For more accurate ECL assessment, split by stages is enhanced by healing bucket concept to reflect on cases when DPD is not a sufficient indicator of credit risk. This is applicable to car loans (unsecured consumer loan where clients borrow a sum of money in order to purchase a car).

The Group’s experience in lending suggests that DPD is a strong predictor of a credit default, thus DPD is the main quantitative factor for the backstop identification for Stage 2. Data from the Groups active vehicle operations (active 3+ years) shows that probability to reach default status over the next 12 months horizon is quite low for accounts which have 0 DPD and merely low for accounts with delay up to 30 DPD. Respective probabilities are higher for immature markets due to very strict default definition at 35 DPD. Additionally, debt collection process is structured in such way that the Group actively works with delaying clients at least 30 days. Recovery results show ~90% cure rate within 30 days for regular invoices. However, accounts with DPD 30 and more demonstrate probability to default within the next 12 months above 50% and thus based on the Group’s management judgement clearly have signs of SICR.

The Group applies the rule that not more than 30 DPD should trigger backstop and transfer to Stage 2. It is set 30 DPD for matured countries loans portfolios, for African countries loan portfolios and consumer loan portfolios. For the sake of alignment with default definition for immature countries loan portfolios backstop is 25 DPD. Additionally, to reflect on significant increase in credit risk (SICR) in the case when DPD is not a sufficient indicator the Group have introduced Healing state.

Healing state concept is applied for car loans, and it is applied in the case of:

- Loan contract recoveries during middle DC stage - after 30 delay days for matured counties and after 26 delay days for immature (2 months period from reporting date is observed).
- Loan contract delaying 26-30 days for immature countries.
- Loan contract renewal after termination or theoretical renewal (returning to active portfolio without terminating the agreement) after default (including countries without termination functionality). In these cases, 2 months period from reporting date is observed.
- Only for immature Africa’s countries - restructurings due to credit reasons. In 2021 year, the Group decided to supplement healing bucket definition for Africa’s countries as a reaction on massive usage of such amendments as an effective DC tool. At current stage the Group cannot evaluate increase in credit risk for such cases due to insufficient history, therefor uses more prudent approach for balance staging.

In such cases the exposures are included in Stage 2 for a period of two months. Afterwards SICR related to the event is settled and exposure is allocated to the stage based on DPD.

- Stage 1: When loans are first recognized, the Group recognizes an allowance based on 12mECLs. The Group considers loans that are current or with DPD up to 30 (up to 25 DPD in non-mature countries) as Stage 1. A healing period of 2 months is applied before an exposure previously classified as Stage 2 can be transferred to Stage 1 and such an exposure must meet the general Stage 1 DPD criteria above. Healing period concept is applicable to car loans. Exposures are classified out of Stage 1 if they no longer meet the criteria above.
- Stage 2: When a loan has shown a significant increase in credit risk since origination, the Group records an allowance for the LTECLs. The Group generally considers secured loans and car loans that have a status of 31-60 DPD (matured countries) and 26-34 DPD (non-matured countries) to being Stage 2. An unsecured loan is considered Stage 2 if DPD is in the range of 30 to 60 or 30 to 90 days for acquired businesses. Loan exposures remain in Stage 2 for a healing period of 2 months, even if they otherwise would meet Stage 1 criteria above during this period.
- Stage 3: Loans considered credit-impaired and at default. The Group records an allowance for the LTECLs. The Group considers a loan agreement, secured loan and car loans agreement defaulted and therefore Stage 3 in all cases when the borrower becomes 61 DPD (matured countries) or 35 DPD (non-matured countries) on its contractual payments or the loan agreement is terminated. The Group considers an unsecured loan agreement defaulted and therefore Stage 3 in all cases when the borrower becomes 91 days past due for acquired businesses on its contractual payments.

The difference in default definition for unsecured consumer loan agreements is driven by different business processes, product set up and development history in greenfield and acquired operations. Debt collections practices applied in Latvia, Estonia, Armenia and Lithuania for secured loans were transferred to unsecured operations, thus active in-house debt collections process runs until DPD 60. After that exposure is either sold, or legal execution starts, or settlement process is enabled. Acquired businesses have active in-house debt collections process running until DPD 90. After that exposure is transferred to external agencies for the debt collections. Later it is either sold or legal execution starts.

Macroeconomic shocks, geopolitical crisis, and other unpredictable situations: business adoption and reflection in Impairment, impact on SICR.

The first years of this decade have heralded a particularly disruptive period in human history. The return to a “new normal” following the COVID-19 pandemic was quickly disrupted by the outbreak of war in Ukraine, ushering in a fresh series of crises in food and energy - triggering problems that decades of progress had sought to solve. Majority of Group Countries returned to “older” risks as inflation, cost-of-living crises, widespread social unrest, geopolitical confrontation which negatively impacted Group’s operations and caused increase in credit risk. In early 2025 also a threat of U.S. imposed import tariffs added uncertainty to the global market. Potential impact of these tariffs are yet to be analised by the Group.

Analysing and evaluating Group’s responses to such non-standard situations in past, management decided to keep and maintain introduced during Covid-19 pandemic so-called TDR (temporary debt restructuring) program. Forbearance tools (TDR and restructuring, i.e., change of the original payment schedule) is almost the only feasible solution to reduce financial burden on customers crisis circumstances, thus fact of the forbearance as such does not lead to the recognition of SICR if customer pays according to new terms and later returns to the original schedule or close to it.
Following the crisis situation Group’s management might decide to activate TDR program for certain market for defined period (from 3 to 6 months). In mentioned situation - cases where the Group has sound grounds to expect customer to return to the regular discipline not longer than in 12-month time should not be classified as SICR even if customer has been granted forbearance tool.

Temporary debt restructuring (TDR) and other forbearance tools:

1. Alternative schedule (AS) - a temporary reduction of monthly payment, typically not more than 50%. Customers use this option for several,
e.g. 3-6 months in row.

2. Extension - is a payment holiday for 1 month. Customer pays extension fee (in some cases free extensions are possible) and returns to the original schedule in next 1-3 months.

3. Restructurings - permanent amendment of the schedule (term end increase, monthly payment decrease, interest decrease).

TDR is granted upon customer’s request. Customer is on TDR program if he complies with agreed terms (no SICR is recognized). If terms are breached customer returns to the original schedule and his credit risk is assessed as per actual DPD.

2. Material accounting policy information (continued)

The calculation of ECLs

The Group calculates ECLs based on probability-weighted scenarios to measure the expected cash shortfalls, discounted at an approximation to the EIR.
A cash shortfall is the difference between the cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive.
Key elements of the model are, as follows:
- PD The Probability of Default is an estimate of the likelihood of default over a 12 month or lifetime horizon (time horizon depends on ECL type - i.e. 12mECL or LTECL);
- the Default distribution vector (DDV) is the estimate of the time to default, more specifically it provides distribution of PD over the course of a 12 month or lifetime horizon; Specifically, how many defaulted loans during 12 months/ lifetime defaulted during 1st, 2nd, 3rd etc. month started from certain moment of time (evaluation starting point);
- EAD The Exposure at Default is an estimate of the exposure at a future default date, considering expected changes in the exposure after the reporting date, including repayments, whether scheduled by contract or otherwise;
- 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 cash flows due at the moment of default and those that the lender would expect to receive, including from the realization of any collateral and deducting expenses related to cash collections or collateral realization processes. It is usually expressed as a percentage of the defaulted balance;
- lifetime period is estimated as average remaining contractual term of respective portfolio.

The Group may choose to use actual balance instead of EAD and do not apply DDV for the segments with the elevated credit risk.

Significant judgments used for determining PD and LGD are described in Note 3.

The Group employs multiplication model across all Stages for the ECL calculation:

ECL=EAD*PD*LGD*[DDV]

Given that DDV is a multidimensional vector (generally 12 or 13 dimensions, but can be shorter if representative historical data is available for s a shorter period ) it is aggregated into one value before multiplication - [DDV]. DDV aggregated value is obtained as follows:

- each value of the DDV is multiplied with discount factor;
- discount factor is calculated in a regular way (e.g. NPV formula), where discount is calculated on EIR of the portfolio and number of periods corresponds to the dimension of the respective DDV value;
- [DDV] is the sum of all respective multiplications of DDV values with respective discount factors.

Depending on the Stage the following specifics are applied to the general ECL model:
- Stage 1: The 12mECL is calculated. The Group calculates the 12mECL allowance using 12 months (or shorter if lifetime of the product is less than 12 months) PDs and DDV over the 12-month horizon. These 12-month default probabilities are applied to an estimated EAD and multiplied by the expected LGD and discounted by an approximation to the original EIR using DDV, in this way incorporating time to default into model.
- Stage 2: When a loan has shown a significant increase in credit risk since origination, the Group records an allowance for the LTECLs. The mechanics are like those explained above, but PDs and DDV are estimated over the lifetime of the instrument. The expected cash shortfalls are discounted by an approximation to the original EIR using DDV.
- Stage 3: For loans considered credit-impaired, the Group recognizes the LTECLs for these loans. The method is similar to that for Stage 2 assets, with the PD set at 100%.

ECL on restructured and modified loans

Some types of modifications performed to customers that serve to renegotiate terms of an agreement that was previously in default result in continued Stage 3 treatment during the one month healing period for mature countries followed by 2 months of healing period in Stage 2. For immature countries due to the nature of the default definition and lack of ability to renew terminated agreements, exposure enters Stage 2 directly. In case of modification for credit reasons prior to default (generally term extension), exposure is moved to Stage 2 for a healing period of 2 months.

Write off of unrecoverable debts

The Group considers any kind of receivable completely unrecoverable and writes off the receivable from balance sheet entirely if all legal actions have been performed to recover the receivable and the Group has no reasonable expectations of recovering the exposure.

Impairment of contract assets and financial assets other than loans and advances to customers

Further financial assets where the Group calculates ECL on an individual basis or collective basis are:

- Other receivables from customers/contract assets - on collective basis;
- Loans and advance payments to related parties - on individual basis;
- Trade receivables - on collective basis;
- Cash and cash equivalents - on individual basis;
- Deposits - on individual basis.

Financial assets are aggregated in categories considering the similarities of key risk characteristics and nature of each of these.

The Group assesses the impairment for other receivables from customers/contract assets on a collective basis at country level. For the rest of financial assets other than loans and advances to customers the Group calculates ECL on an individual basis.

Impairment of other receivables from customers/contract assets

During the course of business, the Group may have other type of claims against its customers. In such cases, considering the portfolio features, the ECL methodology of the related loan receivable is mirrored and the ECL mirrors the impairment of the loan receivable. The Group considers other receivables from customers/contract assets that are current or with DPD up to 25 as Stage 1. A healing period of 5 days is applied before an exposure previously classified as Stage 2 can be transferred to Stage 1. The Group generally considers other receivables from customers/contract assets that have a status of 26-34 DPD to be Stage 2 loans. The Group considers financial assets defaulted and therefore Stage 3 in all cases when the borrower becomes 35 DPD.

For other receivables and contract assets that are not related to loan portfolio receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The ECL recorded is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Impairment for loans and advance payments to related parties, trade receivables

Receivables from related parties inherently are subject to the Group’s credit risk. Therefore, a benchmarked PD and LGD rate - based on Standard & Poor's corporate statistics studies has been applied in determining the ECLs. For related party exposures Stage 2 and lifetime ECL calculation is applied based on 30 day back stop and 90 day back stop is applied to Stage 3 determination. Further qualitative factors evaluated include extension of the payment terms granted, previous arrears in the last 12 months and significant adverse changes in business.

Impairment of cash and cash equivalents and deposits

For cash and cash equivalents default is considered as soon as balances are not cleared beyond conventional banking settlement timeline, ie., a few days. Therefore, transition is straight from Stage 1 to Stage 3 given the low number of days that it would take the exposure to reach Stage 3 classification, meaning default. For cash and cash equivalents no Stage 2 is applied given that any past due days would result in default. When calculating the impairment for a bank deposit, any loans or other credit facilities granted by the credit institution to the Group is being set off against the deposits if the bank has a contractual right to offset in case of resolution. Hence, the ECL is recognized on the net amount.

2. Material accounting policy information (continued)

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL or other financial liabilities that are measured at amortized cost. All financial liabilities are recognized initially at fair value plus, for an item not at FVTPL, directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables and loans and borrowings, including funding attracted through peer-to-peer platforms as well as subordinated borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss
A financial liability is classified at FVTPL if it is classified as held for trading, it is a derivative or it is designated as such upon initial recognition. Net gains or losses, including any interest expense, on liabilities held at FVTPL are recognized in the statement of profit and loss.
The Group has not designated any financial liability as at fair value through profit or loss.

Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized; interest expense is recognized through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
This category generally applies to interest-bearing loans and borrowings.

Subordinated borrowings
The Group recognizes liabilities as subordinated borrowings if it is an unsecured loan or bond that ranks below other, more senior loans or securities, and have lower payment priority than more senior debt. Accordingly, the claims of more senior debt holders must be satisfied before the holders of subordinated debt can be paid. In the case of default, creditors who own subordinated debt will not be paid out until after more senior creditors are paid in full.
Borrowings are classified as subordinated only if respective agreements contain dedicated clauses defining the borrowing as subordinated.

Modification of financial liabilities

For financial liabilities, the Group considers a modification substantial based on qualitative factors and if it results in a difference between the adjusted discounted present value and the original carrying amount of the financial liability of, or greater than, ten percent. If the modification is substantial, then a derecognition gain or loss is recorded on derecognition. If the modification does not result in cash flows that are substantially different the modification does not result in derecognition. Based on the change in cash flows discounted at the original EIR, the Group records a modification gain or loss.

Treatment of non-substantial modifications

If expectations of fixed rate financial liabilities’ cash flows are revised, then changes to future contractual cash flows are discounted at the original EIR with a consequential adjustment to the carrying amount. The difference from the previous carrying amount is booked as a positive or negative adjustment to the carrying amount of the financial liability on the consolidated statement of financial position with a corresponding increase or decrease in Interest revenue/expense calculated using the effective interest method.

The carrying amount of the financial liability is adjusted if the Group revises its estimates of payments or receipts. If modification of a financial liability measured at amortized cost does not result in the derecognition a modification gain/loss is calculated. The adjusted carrying amount is calculated based on the original effective interest rate and the change in carrying amount is recorded as interest income or expense (Note 5).

Changes in the contractual cash flows of the asset are recognized in statement of profit and loss and any costs or fees incurred adjust the carrying amount of the modified financial asset or liability and are amortized over the remaining term of the modified instrument. Therefore, the original EIR determined at initial recognition is revised on modification to reflect any costs or fees incurred.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

The Group considers a modification substantial based on qualitative factors and if it results in a difference between the adjusted discounted present value and the original carrying amount of the financial liability of, or greater than, ten percent.

Transactions with peer-to-peer platforms

Background

Certain subsidiaries, as loan originators, have signed cooperation agreements with operator of a peer-to-peer (P2P) investment internet-based platform. Cooperation agreements and the related assignment agreements are in force until parties agree to terminate. Purpose of the cooperation agreement for the Group is to attract funding through the P2P platform.

The P2P platform makes it possible for individual and corporate investors to obtain a fully proportionate interest cash flows and the principal cash flows from debt instruments (loans and advances to customers) issued by the Group in exchange for an upfront payment. These rights are established through assignment agreements between investors and P2P platform, who is acting as an agent on behalf of the Group. Assignment agreements are of two types:

1) Agreements with recourse rights which require the Group to guarantee full repayment of invested funds by the investor in case of default of Group’s customer (buy back guarantee);
2) Agreements without recourse rights which do not require the Group to guarantee repayment of invested funds by the investor in case of default of the customer (no buy back guarantee).

The Group retains the legal title to its debt instruments (including payment collection), but transfers a part of equitable title and interest to investors through P2P platform.

2. Material accounting policy information (continued)

Receivables and payables from/to P2P platform

The P2P platform is acting as an agent in transferring cash flows between the Group and investors. The receivable for attracted funding from investors through the P2P platform corresponds to the due payments from the P2P platform.

Receivable is arising from assignments made through P2P platform where the related investment is not yet transferred to the Group (Note 29).

P2P platform commissions and service fees incurred by the Group are fees charged by P2P platform for servicing the funding attracted through peer-to-peer platform and are disclosed in Note 9.

Funding attracted through peer-to-peer platform

Liabilities arising from assignments with or without recourse rights are initially recognized at cost, being the fair value of the consideration received from investors net of issue costs associated with the loan.

Liabilities to investors are recognized in statement of financial position caption Funding attracted through peer-to-peer platform (Note 35) and are treated as loans received.

After initial recognition the funding attracted through peer-to-peer platform is subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any issue costs, and any discount or premium on settlement. Gains and losses are recognized in the statement of profit and loss as interest income/ expense when the liabilities are derecognized.

The Group must repay to the investor the proportionate share of the attracted funding for each debt instrument according to the conditions of the respective individual agreement with the Group’s client, which can be up to 72 months.

Assignments with recourse rights (buy back guarantee)

Assignments with recourse rights provide for direct recourse to the Group, thus do not meet the requirements to be classified as pass-through arrangement in accordance with IFRS 9. Specifically, neither investors, nor the P2P platform bear any risks in relation to creditworthiness of the Group's borrower. The Group is obliged, on first demand of the P2P platform, to repay all monies due if loan agreement with borrower defaults . Additionally, the Group retains the risks and rewards of ownership of the financial asset.

Therefore, the Group’s respective debt instruments do not qualify to be considered for partial derecognition and interest expense paid to investors is shown in gross amount under Interest expense calculated using effective interest method (Note 5).

Assignments without recourse rights (no buy back guarantee)

On the contrary, assignments without recourse rights (the Group is not obliged to reimburse neither to investors nor to P2P platform if the borrower defaults) are arrangements that transfer to investors substantially all the risks and rewards of ownership equal to a fully proportionate share of the cash flows to be received from Group’s debt instruments. Therefore such arrangements are classified as pass-through arrangements in accordance with IFRS 9.

As such, a fully proportionate share, equal to investor’s claim in relation to the related debt instrument, is derecognized.

The derecognized part is accounted as an off-balance sheet item (Note 35) and interest income is recognized to the extent of being the residual interest. Residual interest is the difference between the interest earned on the respective debt instrument by the Group and the respective share of interest earned by the investor.

Equity - accounted investees

The Group interests in equity-accounted investees comprise investment in associate. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Interests in associates are accounted for using the equity method. They are initially recognized as cost, which includes transaction costs. As the Group gained significant influence over its associate after losing control over the investee, the deemed cost is the fair value of the interest retained subsequent to the loss of control. Subsequent to initial recognition, the consolidated financial statements include the Group's share of the profit or loss and other comprehensive income of the associate, until the date on which significant influence ceases. Unrealised gain arising from transactions with associate are eliminated against the investments to the extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Group as a Lessee

Lease liability

Initial recognition

At the commencement date of the lease the Group measures the lease liability at the present value of the lease payments that are not paid at that date in accordance with lease term. Lease payments included in the measurement of the lease liability comprise:

- fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
- amounts expected to be payable by the Group under residual value guarantees;
- the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
- payments of penalties for terminating the lease, if the lease term reflects the Group exercising an option to terminate the lease.

The Group has elected for all classes of underlying assets not to separate non-lease components from lease components in lease payments. Instead Group accounts for each lease component and any associated non-lease components as a single lease component. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the incremental borrowing rate.

Lease term is the non-cancellable period for which the Group has the right to use an underlying asset, together with both:
(a) Periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and
(b) Periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.

At the commencement date, the Group assesses whether it is reasonably certain to exercise an option to extend the lease or to purchase the underlying asset, or not to exercise an option to terminate the lease.

Subsequent measurement

After the commencement date, the Group measures the lease liability by:
- increasing the carrying amount to reflect interest on the lease liability;
- reducing the carrying amount to reflect the lease payments made; and
- remeasuring the carrying amount to reflect any reassessment or lease modifications specified, or to reflect revised in-substance fixed lease payments.

2. Material accounting policy information (continued)

Right-of-use assets

Initial recognition

At the commencement date of the lease, the Group recognizes right-of-use asset at cost. The cost of a right-of-use asset comprises:

- the amount of the initial measurement of the lease liability;
- any lease payments made at or before the commencement date, less any lease incentives received;
- any initial direct costs incurred by the Group; and
- an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are to produce inventories.

Subsequent measurement

Group measures the right-of-use asset at cost, less any accumulated depreciation and accumulated impairment losses; and adjusted for the remeasurement of the lease liability (which may take place when there is a change in future lease payments arising from a change in an index or rate, when there is change in estimated amounts payable under residual value guarantee or there is a change of assessment of extension, purchase or termination option) . Depreciation of the right-of-use asset is recognized on a straight-line basis in profit or loss. If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

Group involvement with the underlying asset before the commencement date

If a Group incurs costs relating to the construction or design of an underlying asset, the lessee accounts for those costs applying other IFRS, such as IAS 16. Costs relating to the construction or design of an underlying asset do not include payments made by the lessee for the right to use the underlying asset.

Group applies IAS 36 to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Initial recognition exemptions applied

As a recognition exemption the Group elects not to apply the recognition requirements of right-of-use asset and lease liability to:
(a) Short term leases - for all classes of underlying assets; and
(b) Leases of low-value assets - on a lease-by-lease basis.

For leases qualifying as short-term leases and/or leases of low-value assets, the Group does not recognize a lease liability or right-of-use asset. The Group recognizes the lease payments associated with those leases as an expense on either a straight-line basis over the lease term.
(a) Short term leases
A short-term lease is a lease that, at the commencement date, has a lease term of 3 months or less. A lease that contains a purchase option is not a short-term lease. This lease exemption is applied for all classes of underlying assets.
(b) Leases of low-value assets

The Group defines a low-value asset as one that:
1) has a value, when new of 5 000 EUR or less. Group assesses the value of an underlying asset based on the value of the asset when it is new, regardless of the age of the asset being leased.
2) the Group can benefit from use of the assets on its own, or together with, other resources that are readily available to the Group; and
3) the underlying asset is not dependent on, or highly interrelated with, other assets.

Inventories

Inventories are valued at the lower of cost and net realizable value.

Net realizable value represents the estimated selling price for inventories in the ordinary course of business less estimated costs necessary to make the sale.

Inventories contain only vehicles which are purchased for the sole purpose of selling them to customers.

Value of inventories is measured by using specific identification of individual unit cost. Disposal of each individual stock item is performed on sale of respective individual stock item.

Accrued revenue or expenses from currency trading

The Group recognizes accrued income or expenses from transactions of trading currency based on currency rates agreed for each currency hedging transaction. The difference between hedging rate and currency rate at year end is recognized as accrued income or expenses depending from mathematical result.

Non-Deliverable Forward Hedge contracts

Foreign exchange risk arises when individual group operations enter into transactions denominated in a currency other than their functional currency. Where the risk to the Group is considered to be significant, Group treasury enters into a matching Non-Deliverable Forward Hedge contract with a reputable financial institution.

"Matching" refers to the practice of aligning the terms of the hedge contract (such as the amount, maturity, and timing) with the anticipated foreign currency exposure of the underlying transaction or cash flow. This ensures that the hedge effectively mitigates the risk by directly offsetting the fluctuations in exchange rates that could impact the Group's financial position.

Non-Deliverable Forward hedge contracts will mature at various dates within the next 12 months. As of 31 December 2024, gains and losses from open contracts are recognized in the Consolidated Statement of Profit and Loss, while financial receivables and liabilities related to open Non-Deliverable Forward hedge contracts at year-end, with settlement dates within the next 12 months, are recognized in the Consolidated Statement of Financial Position.

The total result consists of a variable component and a fixed cost component for the period ending 31 December 2024. For each transaction, the variable component is determined by applying the agreed strike currency rate and the currency rate as of 31 December 2024. The total fixed cost component is determined based on the difference between the agreed strike currency rate and the currency rate as of the transaction’s execution date.

Assets held for sale

The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use.

Assets held for sale includes vehicles which are obtained by enforcement of repossession in case clients default on existing loan agreements. Such repossessed collaterals are classified as held for sale and measured at the lower of their carrying amount and fair value less costs to sell (FVLCTS). Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense. Once classified as held-for-sale, vehicles are no longer depreciated.

The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.

Assets classified as held for sale are presented separately as current items in the statement of financial position.

2. Material accounting policy information (continued)

Share premium

Share premium represents the amount subscribed for share capital in excess of nominal value deducted by expense incurred during IPO process.

Treasury shares

Treasury shares represent the Group’s own equity instruments that have been reacquired but not canceled. These shares are recorded as a deduction from equity at the cost of acquisition, with no recognition of gain or loss in profit or loss on subsequent sale, reissuance, or cancellation. Any consideration received from the sale or reissuance of treasury shares is recognized directly in equity. Treasury shares do not carry voting rights or entitlement to dividends while held by the Group. The Group presents treasury shares separately within equity in the statement of financial position.

Reserves

Luxembourg companies are required to allocate to a legal reserve a minimum of 5% of its annual net profit until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed.

Lithuania companies are required to allocate to a legal reserve a minimum of 10% of its annual net profit until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed.

Moldavian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 10% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital.

Macedonian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 10% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital. Reserve may be increased above 5% in order to meet capital adequacy ratio.

Romanian companies are required to allocate to a reserve capital amount in proportion of at least 5% of its annual net profit, until reserve capital equals 20% the amount of the share capital. The reserve capital of the company may be used only to cover losses or to increase its share capital.

Foreign currency translation reserve is used to record exchange differences arising from the translation of assets and liabilities of foreign operations.

Provisions

In accordance with IAS 37, provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of provisions to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as finance cost.

Contingent assets and contingent liabilities

Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognized in the financial statements but disclosed when an inflow of economic benefits is probable.

Share-based payments

The Group may grant share options of Subsidiaries to its employees. Share options are generally awarded on the first day of employment. A share-based payment is primarily a payment in equity instruments of the entity. Under certain circumstances there are cash settlement alternatives which are subject to cash settlement events occurring or entity’s choice in certain scenarios. Given absence of an ongoing sale of subsidiaries or Eleving Group S.A. and any other relevant cash settlement events, the cash settlement is considered not to be probable. The Group does not have a present obligation to settle in cash, therefore awards are classified as equity settled. The Group does not have a past practice of cash settlement for these awards.

Equity-settled transactions

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit and loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.

No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

2. Material accounting policy information (continued)

Income and expenses

Expenses are recognized as incurred. Expenses are recognized net of the amount of value added tax. In certain situations value added tax incurred on a services received or calculated in accordance with legislation requirements is not recoverable in full from the taxation authority. In such cases value added tax is recognized as part of the related expense item as applicable. The same principles is applied if value added tax is not recoverable on acquisition an asset.

Revenue is recognized in accordance with the related standard’s requirements and to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

The effective interest rate method

For all financial instruments measured at amortized cost interest income or expense is recorded at the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument 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.

When a financial asset becomes credit-impaired and is regarded as ‘Stage 3’, the Group stops calculating interest. If the financial asset cures and is no longer credit-impaired, the Group reverts to calculating interest income on a gross basis.

Income from cession of bad debt

Gain or loss from sale of doubtful loans and advances to customers is presented on net basis under ” Net loss from de-recognition of financial assets measured at amortized cost”. Gains or losses arising on cession deals are recognized in the statement of profit and loss at transaction date as the difference between the proceeds received and the carrying amount of derecognized loan receivables assigned through cession agreements.

Expenses related to attracting funding

Expenses related to attracting funding consists of administration fee for using peer-to-peer platform. Expenses are charged monthly and recognized in Group's statement of profit and loss when they occur.

Revenues and expenses from contracts with customers

Revenue from contracts with customers in scope of IFRS 15 encompasses sold goods or services provided as output of the Group’s ordinary activities. The Group uses the following criteria to identify contracts with customers:
- the parties in the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations;
- can be identified each party’s rights regarding the goods or services to be transferred;
- can be identified the payment terms for the goods or services to be transferred;
- the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract);
- it is probable that the Group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.

Performance obligations are promises in the contracts (either explicitly stated or implied) with Group’s customers to transfer to the customers distinct goods or services. Promised goods or services represent separate performance obligations if the goods or services are distinct. A promised good or service is considered distinct if the customer can benefit from the good or service on its own or with other readily available resources (i.e. distinct individually) and the good or service is separately identifiable from other promises in the contract (distinct within the context of the contract). Both of these criteria must be met to conclude that the good or service is distinct.

The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price for the sale of equipment, the Group considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).

The Group recognizes revenue when (or as) it satisfies a performance obligation to transfer a promised good or service to a customer. Revenue is recognized when customer obtains control of the respective good or service. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

Revenue from satisfied performance obligations is recognized over time, if one of the following criteria is met:
- customer simultaneously receives and consumes the benefits;
- customer controls the asset as it is created or enhanced;
- the Group’s performance creates an asset and has a right to payment for performance completed.

Payment terms for goods or services transferred to customers according to contract terms are within 45 to 60 days from the provision of services or sale of goods. The transaction price is generally determined by the contractually agreed conditions. Invoices typically are issued after the goods have been sold or service provided.

Key revenue streams the Group generates relate to provision of goods or services provided directly to end customer with no third party service/product provider involved. In such transactions the Group acts as a principal. However, for certain services, where other parties are involved, as described below, the Group performs assessment whether it acts as an agent or a principal. Such revenue streams include income from debt collection activities, income from providing registration services and income from agency services as described below.

When another party is involved in providing goods or services to the Group's customers, the Group considers that it is a principal, if it obtains control of any one of the following:

a) a good or another asset from the other party that it then transfers to the customer;

b) a right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity's behalf - relevant for car registration income to conclude on principal presentation;

c) a good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer - relevant for debt collection income to conclude on agent presentation.

2. Material accounting policy information (continued)

Fee and commission income (Note 6)

Income from debt collection activities and earned penalties (point in time)

Fee and commission income arises from contracts with customers. Accordingly, it results in a recognized financial instrument in the Group's financial statements that is partially in scope of IFRS 9 and partially in scope of IFRS 15. Therefore, the Group first applies IFRS 9 to separate and measure the part of the contract that is in the scope of IFRS 9 and then applies IFRS 15 to the residual.

Income from debt collection activities and penalties is recognized in Group's statement of profit and loss at the moment when the likelihood of consideration being settled for such services is high, therefore income is recognized only when actual payment for provided services is actually received.

Income from penalties arise in case customers breach the contractual terms of loans and advances to customers agreements, such as exceeding the payment date. In those situations Group is entitled to charge the customers in accordance with the agreement terms.

The Group recognizes income from penalties at the moment of cash receipt as likelihood and timing of settlement is uncertain. In case customers do not settle the penalty amount, the Group is entitled to enforce repossession of the collateral.

Debt collection activities revenue typically arises when customers delay the payments due. As a lessor, the Group has protective rights in the loan agreements with customers that require the customers to safeguard and maintain the condition of the vehicle, as it serves as a collateral to the loan. Group’s revenue encompasses a compensation of internal and external costs incurred by the Group in relation to debt management, legal fees as well as repossession of vehicle in case of loan agreement termination and are recharged to the customers in accordance with the agreement terms. The performance obligation is satisfied when respective service has been provided.

Income from commissions (point in time)

Income from commissions arises from additional services provided by the Group to its customers. Main additional source of income from commissions is from premature termination of contracts by the initiative from a customer. Income is recognized at the moment of cash receipt as likelihood and timing of settlement is uncertain. The performance obligation is satisfied when respective service has been provided.

Income from providing registration services (point in time)

In certain countries, the Group provides vehicle registration services to its customers. The Group organizes the registration of the vehicles with the state authorities on behalf of the customer, which is a separate service provided by the Group. Typically these services are performed before customers enter the loan agreements. Income from providing these services is recognized at the moment of providing the services. In majority of countries such services are not provided by the Group, as the customers perform registration procedures themselves and costs are covered by the customers directly without the need for such services from the Group. The performance obligation is satisfied when the respective service has been provided.

Revenue from car sales and other goods (Note 11)

Sale of motor vehicles and other goods (point in time)

The Group earns part of its revenues from the sales of used vehicles that were either bought from third parties or repossessed from its non-performing leasing customers . The Group is calculating minimum sales price based on initial cost or value after repossession plus additional cost incurred (e.g. repairs) and a margin added in order to make profit from the deal. The performance obligation is satisfied when the car is registered on client’s name. Similarly the Group is selling mobile phones in Africa region.

Other operating income (Note 14)

Income from management services (over time)

The Group provides management services to its related parties. Income is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for providing these services. The performance obligation is satisfied as the respective service is being provided.

Revenue from agency services (point in time)

Agency services consist of different services, such as settlement of costs on behalf of 3rd parties and recharging those costs to customers. The Group is acting as an agent in provision of these services to the customers. Such services are provided with the intention to realize the economies of scale of purchasing power for a service that is both used by the Group and the 3rd party. The Group recognises revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified services to be provided by the other party. The performance obligation is satisfied when the respective service has been provided.

Variable consideration revenue from client acquisition (point in time)

The Group has entered into a contract with JSC Primero Finance on providing commercial client acquisition services with the variable component of the contract on 26 September, 2019.

The fee is paid on all concluded agreements with clients. The fee consists of two elements - fixed and variable. Fixed fee is set as % from total loan amount and is invoiced every month based on concluded agreement list for previous month. Variable fee part is an additional fee and is set as percentage dependant on the specific annual percentage rate (APR) threshold for each individual concluded agreement.

The fixed and variable part of client acquisition fee is calculated and invoiced monthly. The revenue from the fixed part of the fee is recognized at point in time as the corresponding performance obligations are satisfied, and there is no significant judgement applied to determine the transaction price or the satisfaction of the performance obligations.

The additional client acquisition fee is determined to be a variable consideration as it is based on the individual APR of each concluded agreement.

In the case of loan defaults, the parties agreed to measure the default loss. In the cases when not all outstanding debt has been covered after the collateral sale, the Group returns part (proportional to the uncovered debt) of the additional fee, which has been invoiced to JSC Primero Finance.

Contract balances

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration.

As at 31 December 2024 the Group did not have any contract assets in its consolidated statement of financial position.

Trade receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

These receivables are disclosed in balance sheet caption 'Trade receivables' (Note 28).

Trade receivables are non-interest bearing and are generally on terms of 30 to 120 days. Accounting policies applicable to financial assets measured using amortized cost are applicable as described above in Note 2.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are extinguished and revenue is recognized when the Group performs under the contract.

As at 31 December 2024 the Group does not have any contract liabilities in its consolidated statement of financial position.

2. Material accounting policy information (continued)

Income taxes

Income taxes include current and deferred taxes. Income taxes are recognized in profit and loss except to the extent that they are related to a business combination, or items recognized directly in equity or other comprehensive income. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates enacted or substantively enacted at the reporting date in the countries where the Group and the Parent Company operates.

Current corporate income tax rate for the Parent company is applied at the statutory rate of 24.94%. Current corporate income tax rates for the foreign subsidiaries are:


Country	Tax rate	Country	Tax rate
Estonia*	20%	Moldova	12%
Latvia*	20%	Albania	15%
Lithuania	15%	Ukraine	18%
Georgia*	20%	Uzbekistan	7.5%
Romania	16%	North Macedonia	10%
Kenya	30%	Lesotho	25%
Uganda	30%	Namibia	32%
Botswana	22%	Mauritius	15%
Zambia	30%

* - as described further below corporate income tax in these countries is paid on distributed profits and deemed profit distributions only.

Deferred tax assets and liabilities

Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of transaction affects neither accounting nor taxable profit / loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

In Latvia, Estonia and Georgia deferred tax assets and liabilities are not recognized starting from 2017 or before in accordance with local legislation. Accordingly, deferred tax assets and liabilities which were calculated and recognized previously have been reversed through the statement of profit and loss and other comprehensive income in the year when the legislation was amended (for Latvia: 2017).

In Latvia legal entities are not required to pay income tax on earned profits starting from 1 January 2018 in accordance with amendments made to the Corporate Income Tax Law of the Republic of Latvia. Corporate income tax is paid on distributed profits and deemed profit distributions. Consequently, current and deferred tax assets and liabilities are measured at the tax rate applicable to undistributed profits. Starting from 1 January 2018, both distributed profits and deemed profit distributions are subject to the tax rate of 20 per cent of their gross amount, or 20/80 of net expense. Corporate income tax on dividends is recognized in the statement of profit and loss and other comprehensive income as expense in the reporting period when respective dividends are declared, while, as regards to other deemed profit items, at the time when expense is incurred in the reporting year.

Similar accounting policies are adopted in Estonia and Georgia.

Related parties

The parties are considered related when one party has a possibility to control the other one or has significant influence over the other party in making financial and operating decisions. Related parties of the Group are shareholders who could control or who have significant influence over the Group in accepting operating business decisions, key management personnel of the Group including members of Supervisory body - Audit committee and close family members of any above-mentioned persons, as well as entities over which those persons have a control or significant influence.

The Group has defined that a person or a close member of that person’s family is related to a reporting entity if that person:

- has control or joint control of the reporting entity;

- has significant influence over the reporting entity; or

- is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

An entity is related to a reporting entity if any of the following conditions applies:

- The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others);

- One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);

- Both entities are joint ventures of the same third party;

- One entity is a joint venture of a third entity and the other entity is an associate of the third entity;

- The entity is a post‑employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity;

- The entity is controlled or jointly controlled by a person identified in (a);

- A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity);

- The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Non-controlling interest

Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not owned, directly or indirectly, by the Group. Non-controlling interest forms a separate component of the Group’s equity.

Non-controlling interest are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition.

Dividend distribution

Dividend distribution to the shareholders of the Group is recognized as a liability and as distribution of retained earnings in the financial statements in the period in which the dividends are approved by the shareholders as the Group has the obligations to pay the dividend which cannot be withdrawn.

2. Material accounting policy information (continued)

Subsequent events

Post-period-end events that provide additional information about the Group’s position at the statement of financial position date (adjusting events) are reflected in the consolidated financial statements. Post-period-end events that are not adjusting events are disclosed in the notes when material.

3. Critical accounting estimates and judgements

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosure of contingencies. The most significant areas of estimation and judgement used in the preparation of the consolidated financial statements include assumptions used in Goodwill and other non-financial asset impairment tests, Impairment of financial assets, Determination of fair values and judgements around Going concern and military conflict in Ukraine impact assessment. They are described below among other estimates and judgements used in the preparation of these consolidated financial statements. Although these estimates and conclusions are based on the management’s best knowledge of current events and actions, the actual results may ultimately differ from those estimates.

Principal versus agent assessment

In provision of agency services (Note 14) the Group has assessed that it does not obtain control of these services before they are transferred to customers, as these services or goods are acquired on their behalf. Therefore, it is considered agent in these transactions.

The Group is also acting as an agent in purchasing specific goods and services from 3rd parties on behalf of customers - mainly legal, recruitment and similar services, as it does not obtain control of the service, does not incur inventory risk nor has discretion in determining the sales price. For all other revenue streams the Group concluded that it acts as a principal.

Other revenue streams where the Group involves third parties in the provision of services include income from debt collection activities (Group acts as an agent as it does not control the service before it is provided to the customer) and income from car registration services (Group acts as a principal as it controls the asset being registered for the prospective customer).

Goodwill and other non-financial asset impairment tests

The calculation of value in use for cash generating units among other is sensitive to the assumptions of discount rate and growth rates. These assumptions and their sensitivity are outlined in Note 20.

Determination of the FVLCTS of assets held for sale

Determination of the FVLCTS for repossessed vehicles is performed on an individual basis at the moment of the repossession.

Management's estimate is based on available data from historical sales transactions for such assets in previous reporting periods. The Group also considers factors such as historical actual average loss (if any) from the previous years. Management considers whether also events after the reporting year indicate a decline in the sales prices of such assets.

See further information in Note 32.

Estimation of the residual value of rental fleet

The Group assesses at each reporting date whether there is an indication that the expected residual value of the rental fleet asset at the end of the current rental period may not be recoverable. The residual value is an estimate of the amount that could be received from disposal of the vehicle at the reporting date if the asset were already of the age and in the condition that it will be in when Group expects to dispose of it (i.e. after expiration of the ultimate loan period, if any). Therefore, if any indication exists, in order to determine the recoverable amount for rental fleet assets, the management uses valuation models based on two methods primarily depending from the status of the loan agreement:

1) value in use (VIU) - for assets with active loan agreements; and

2) fair value less costs of disposal (FVLCOD) - for assets with inactive loan agreements.

VIU is the present value of the future cash flows expected to be derived from an asset or cash generating unit, both from its continuing use and ultimate disposal. In assessing VIU, the estimated future cash flows are discounted to their present value using WACC. In measuring VIU the Group bases its cash flow projections on reasonable and supportable assumptions that represent management’s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset covering in total 7-year period.

For assets with an inactive loan agreement the Group applies probability-weighted scenario in determining the possible future use of vehicles - secondary rent or disposal. The outcome of the probability-weighted scenario has been determined based on the Group’s/Company’s historical data. According to management assessment, the carrying amount of secondary rent assets is expected to be recovered principally through a continuing use of it rather than sale transactions, therefore VIU method has been applied.

For assets with an inactive agreement, for which the carrying amount is expected to be recovered principally through disposal, the Group determines the residual value based on FVLCOD method. Assumptions applied for determination of the FVLCOD of assets are based on making a reliable estimate of the price at which a transaction to sell the asset would take place between market participants at the measurement date under current market conditions and on available data from historical sales transactions. The market price is being adjusted for car repair costs, which are estimated based on historical data for an average vehicle repair expenses occurred in 2023. In addition, management considers whether events after the reporting year indicate a decline in the sales prices of such assets. Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash generating unit, excluding finance costs and income tax expense.

For assets an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss and other comprehensive income unless the asset is carried at a revaluated amount, in which case the reversal is treated as a revaluation increase.

As at 31 December 2024 the Group recognised impairment of rental fleet. Please refer to Note 21.

Impairment of financial assets

The measurement of impairment losses under IFRS 9 across all categories of financial assets in scope requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values 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 Probability of Default and Loss Given Default, judgment is applied also when determining significant increase in credit risk.

3. Critical accounting estimates and judgements (continued)

Impairment of loans and advances to customers

The Probability of Default (PD)

The Probability of Default is an estimate of the likelihood of default over a given time horizon, where default is defined as:
1. 61 DPD (Secured loans, matured countries)
2. 35 DPD (Secured loans, non-matured countries)
3. 61 DPD Loans and advances to customers (unsecured loans, car loans)
4. 91 DPD Loans and advances to customers (unsecured loans, acquired businesses).
In order to estimate PDs the Group utilizes Markov chains methodology. This methodology employs statistical analysis of historical transitions between delinquency buckets to estimate the probability that loan will eventually end up in default state which is set as absorbing state.
The Group uses 12-months continuous horizon window (or smaller if actual lifetime of the product is shorter), and estimation over lifetime is defined as nth power of 12-months matrix (n - depends on the estimated lifetime, e.g., if lifetime is 36-months then n=3).
Exposures are grouped into buckets of days past due (DPD) loans.


	Forward-looking macroeconomic indicators model for portfolio
	Guided by IFRS 9, the Group assesses forward looking information and incorporates it into impairment model. Impairment change is modelled given expected future changes of macroeconomic factors’ (hereinafter macro model). In 2021 the Group changed Hierarchical Bayes model approach to simplified approached based on relation analysis between changes in input variables and changes in PD and the Group expert’s opinion. Macro model uses several assumptions which were agreed by group of experts. Model assumptions and historical periods for macroeconomic factors are reviewed and analyzed once per year considering available macroeconomic outlooks.




	General description of the model
	Macro model uses expected changes in macroeconomic indicators and assumes the same or similar change to Stage 1 PD. Model incorporates three macro indicators - unemployment rate, inflation rate and GDP annual growth rate, as more relevant for private individuals’ financial stability evaluation. The model is based on actual and forecasted data points. Recalculated in December 2024 model includes macroeconomic indicators as of 2024 Q4 and average of all four 2025 quarter forecasts to predict the effect on Stage 1 PD. Data points average is taken to avoid significant indicator fluctuations due to forecast volatility. The Group built macroeconomic models for each country and business (vehicle/consumer) individually - LV, LT, EE, GE, AM, UZ, KE, UG, MD, RO, MK, AL, LES, ZM, NM, BOT. Data for all cases is taken from the source: https://tradingeconomics.com/indicators. Forecasts are validated by National Banks forecasts.




	For each macro indicator three scenarios are obtained - base, best and worse. Base scenario is based on actual data and forecasts. Worse and best scenario is obtained from base scenario increasing or decreasing base scenario by confidence interval of given macro indicator forecast. For each scenario is applied probability of occurring. The impact on PD from each macro indicator is calculated as weighted output across all three scenarios. As for all input macro indicators are applied weights according to their significance to the default rates of the Group customers then the final model output is obtained as sum of weighted output across all macro indicators.




	Model’s variables and assumptions

	The model includes indicators which, based on the Group experts’ opinion and used practice in industry, might have a significant impact on finance products default rates. Such indicators are also widely used by banking and non-banking industry across the world:

	1. GDP growth
	2. unemployment rate (UR) change
	3. inflation rate (IR) change.

	There are several assumptions made in the model to accommodate the Group customer specifics.

	Assumption 1. UR is one of the main variables in the model, and it significantly affects Stage 1 PD.
	Assumption 2. Okun’s law holds in macro environment affected by macro-economic shocks.
	Assumption 3. Typically, reasonably increasing inflation rate positively affects consumption and economy in general, and therefore reduces PD. However, the Groups customers rather suffers from increase in prices than benefit from income increase. Thus, the Group arrived at the assumption 3: increase in inflation in will affect customers negatively.


	Determination of impact on PD based on macro indicator change

	The model assumes relation between changes in macro indicators and Stage 1 PD change. If there is strong correlation between Stage 1 PD and macro indicator change then used linear regression equation to determine the impact on PD due to macro indicator changes. If there is no visible correlation between Stage 1 PD and macro indicators change then impact on PD is evaluated based on qualitative analysis of available data and reasonable experts’ assumptions:


	1. For each macro indicator chosen 25 data points, one 0 point and another 24 points that reflects indicator change - 12 points with negative change and 12 data points with positive change. The distance between 2 adjacent points is the same for all 24 points and is evaluated considering historical changes in macro indicators.

	2. For PD impact determination relational table is built that describes linear or piecewise smooth function and its direction changes at 0 point. At 0 point assumed 0 PD impact. For other macro indicator change points impact on PD is evaluated individually based on historical PD rates and PD change in time, as well taking into account each country and product specifics. Then evaluated PD impacts on each macro indicator change point are summarized in table. This table remains fixed until the next year when impact on PD will be reviewed.

3. Critical accounting estimates and judgements (continued)


Weighted scenarios approach

To take into account possible economic fluctuations and uncertainty, three scenarios are considered and used for final calculation to arrive at weighted average probability:
1. base case scenario - based on actual data and forecasts by external source.
2. worst case scenario - based on expert judgement of potential worsening of macroeconomic indicators.
3. best case scenario - based on expert judgement of potential improvement of macroeconomic indicators.

Worse and best scenario is obtained from base scenario increasing or decreasing base scenario by confidence interval of given historical macro indicators. Confidence intervals are calculated based on last 24 or more macro indicator data points applying confidence level of 99%. How long period is taken is indicated for each country and indicator separately.

Each scenario also has a specific probability of occurring, which is configurable for each country separately to account for potential differences in macroeconomic outlooks. Recent global macroeconomic trends in the regions where the company operates suggest a challenging environment for the businesses which specialize in financing solutions. The pandemic's disruptions, supply chain pressures, and energy crises in recent years have fuelled inflation and led to tighter monetary policies, reducing credit affordability and loan demand. In emerging markets, high debt levels and exchange rate volatility continue to pose risks, particularly in regions with weak fiscal positions. In such circumstances a significant risk lies in debtors' growing challenges to repay loans, increasing default risks. In order to mitigate that, lending companies must adapt by focusing on risk management, leveraging fintech innovations, and targeting resilient sectors to navigate the economic uncertainty effectively. Considering mentioned information, the Group applies at least 15% probability for worst-case scenario and only 5% for best-case. Last updated forecasts for macroeconomic indicators already reflect actual trends, for example - increase in inflation rate. At this stage base-case scenario is considered as a most possible. Sensitivity test was done to evaluate impact from scenarios probability change. Changing worst-case scenario probability till 50%, no major effect on macro coefficient noticed. But, considering uncertainty in projections, macro coefficient was increased by 1-2pp for Eurozone countries.









Macro model results

To obtain final effect on PD from macro indicator change, applied weights for each macro indicator and the final result is taken as a weighted average of macro indicator PD effect. Weights are changed based on their significance in affecting default rate overall. Considering model main assumptions, the Group’s experts evaluate historical relationship and chooses weights for each country individually. In most of the countries UR (unemployment rate) and IR (inflation rate) chosen as main macro indicators and higher weights are applied for them.


To account for future uncertainty in case the model yields positive PD correction, the Group decided to be prudent and not to apply improving PD effect for impairment correction.

Illustration of example: UR impact evaluation on PD:

Scenarios	Current rate	2Y forecast	Difference (p.p.)	Likelihood of the scenario	Impact on PD
Scenarios	Current rate	2Y forecast	Difference (p.p.)	Likelihood of the scenario	Impact on PD
Worst case scenario	7.400%	8.50%	1.1pp	15%	109.6%
Base case scenario	7.400%	7.40%	0pp	80%	100.0%
Best case scenario	7.400%	6.30%	-1.1pp	5%	93.7%
Final macroeconomic correction				100%	101.1%


Loss Given Default

Group closely following recoveries from defaulted financing receivables and revises LGD rates every month for portfolios based on actual recoveries received.
- The sample used for LGD calculation consists of all the financing receivables that have been defaulted historically. If termination of the contract happens before default state is reached, then loan is considered defaulted (early default) and it is considered in LGD sample. Subsequent recoveries on such loans are monitored on a monthly basis. Recoveries from regular collections process, car sales, cessions and legal process are followed.


- Renewed loans (restored payments capacity after termination) also affect the LGD rate by incorporating recovered cash after renewal of the agreement and comparing it to the exposure at default of the agreements subsequently renewed, implying the cure rate. Cure rate from renewals is calculated over a three-year period. For the 31 December 2024 impairment purposes recovery rate for renewed cases were applied in range of 55% to 96% depending on the market. Above described LGD rate is used for all portfolio groups except for unsecured portfolio part. For unsecured portfolio part LGD is estimated using triangular recovery matrix on all unsecured cases. Received recovery is discounted with effective interest rate depending on the number of months between the date account got unsecured status and the date when recovery was received. Given that majority of the car sales happen before unsecured status, the LGD for unsecured portfolio is higher than for other buckets - as of 31 December 2024 Group average LGD unsecured for portfolios with DPD less than 360 DPD was 75%, respective LGD for portfolio older than 360 DPD was 94%.







Loans and advances to customers (unsecured loans, car loans)
For unsecured loans LGD is determined based on debt sales market activity and offered prices or based on historical recoveries. For the later stages (DPD 360) LGD is set to 100%.

Loans and advances to customers (unsecured loan, businesses acquired in 2020 and 2023)
LGD is calculated using triangle recovery matrix built on all defaulted loans. Received recovery is discounted with effective interest rate depending on the number of months between the date account got into default and the date when recovery was received. For later stages (DPD 360) LGD is set to 100%.

3. Critical accounting estimates and judgements (continued)


	Exposure at default (EAD ) modelling

	Exposure at default is modelled by adjusting the unpaid balance of loan receivables as at the reporting date by expected future repayments during the next 12 months. As of 31 December 2024, it is applied for Stage 1 exposures only. This is performed based on contractual repayment schedules, adjusted for historical prepayment rate observed.

	Historical prepayment patterns are assumed to be a reliable estimate for future prepayment activity.

	Loans and advances to customers (unsecured loan, businesses acquired in 2020 and 2023)
	EAD is calculated using the sample of defaulted loans. Outstanding balance of defaulted loans is divided by outstanding balance of the same accounts 12 months ago. Observation window can be shortened; however, it cannot exceed 12 months to avoid overestimation of EAD which may lead to underestimation of ECL. As of 31 December 2024, EAD is applied for Stage 1 and Stage 2.



	Impairment for loans to and receivables from related parties
	Receivables from related parties inherently are subject to the Group’s credit risk. Therefore, a benchmarked PD and LGD rate - based on Standard & Poor's corporate statistics studies has been applied in determining the ECLs.

	Significant increase in credit risk for related party transactions is determined based on information available in the Group about the financial performance of the related parties. Financial position of related parties as at impairment assessment date is compared to that when the exposure was originated. Further 30 days past due back stop indicator is utilized to transfer exposures to Stage 2.

Recoverability of deferred tax asset

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The deferred tax assets are recognized based on profitability assumptions over 3 year horizon. In developing these assumptions the Group considers both positive and negative evidence of past performance and future development plans to ensure that assumptions used are reasonable, realistic and achievable. The future taxable profit of 2025-2026 has been approved by the Management Board, while 2027 is considered as plausible taxable profit of the Group. Budgeting models used are the same as the ones used in goodwill impairment tests.

At each reporting date, the Group’s management analyses the recoverability of deferred tax and reduces the deferred tax asset if it is no longer probable that during the period of utilization of tax losses future taxable profits will be available against which unused tax losses can be utilized (Note 18).

Capitalization of development costs

For capitalization of expenses in process of developing Group's enterprise resource planning (ERP) system and other IT systems management uses certain assumptions. Capitalization of salary expenses of IT personnel is based on employee time sheets and personnel involved in development dedicate up to 80% of their time on developing new functionality. Therefore up to 80% of salary expenses of involved personnel are capitalized under Other intangible assets while remaining 20% are recognized as salary expenses in Statement of profit and loss.

Expenses from amortization of capitalized development costs are included in statement of profit and loss caption "Administrative expense".

See further information in Note 20.

Separation of embedded derivatives from the host contract

The Group has certain call and put option arrangements that can accelerate repayment of the issued bonds. These options arise out of bond (host contract) prospectus and meet the definition of an embedded derivative in accordance with IFRS 9.

There are call and put options included in Eurobond prospectus. The Group may redeem all of the outstanding Eurobonds in full prior to the their maturity date, at 102.375 percent of the nominal amount if is exercised up to 18 October 2025; and 100% of the Nominal Amount if the call option is exercised after 18 October 2025. There is also a put option possibility in case of change of control event, breach of certain financial covenants, ultimate beneficial owner of the Group being included into a sanction list of the European Union and the USE, then each bondholder has the right to request that all, or only some, of its Eurobonds are repurchased at a price of 101.00 percent of the nominal amount plus accrued unpaid interests.

The Group’s management has evaluated that the embedded derivatives are not contractually separable, not contractually transferrable independently and have the same counterparty. Each option’s exercise price is approximately equal on each exercise date to the amortized cost of bond, therefore these embedded derivatives are not separated from the host contract.

Fair value of employee share options

The Group’s employees have entered a share option agreement with the Parent Company or the Parent Company’s shareholders and Subsidiaries. Under the agreements respective employees obtain rights to acquire Parent company’s or certain subsidiaries’ shares under several graded vesting scenarios. The respective option would be classified as an equity-settled share-based payment transaction in Group’s consolidated financial statements in accordance with IFRS 2. There are cash settlement alternatives. Given absence of an ongoing sale of any of Subsidiaries or the Parent or any listing process initiated and other relevant cash settlement events, then cash settlement is considered not to be probable and the Group does not have a present obligation to settle in cash.

The Group’s management has determined the fair value of the share options and recorded expenses related to this transaction and recognized a respective component of equity.

In estimating fair value for the share option the most appropriate valuation model would depend on the terms and conditions of the grant. In 2019 fair value of employee share options has been estimated by first establishing the fair value at the grant date of the relevant issuer company/group applying discounted cash flow valuation methodology and same assumptions as the ones used in value in use estimation (refer to Goodwill impairment tests). Subsequently, the estimate is adjusted by the number of options granted, vesting period and the employee turnover rates in the respective grade.

Deferred Tax Liability on unremitted earnings

In Latvia, Estonia and Georgia legal entities are required to pay income tax on earned profits in accordance with local legislation on Corporate Income Tax. Corporate income tax would be paid on distributed profits and deemed profit distributions. Corporate income tax on dividends would be recognized in the statement of profit and loss as expense in the reporting period when respective dividends are declared, while, as regards other deemed profit items, at the time when expense is incurred in the reporting year.

The Group has decided to use these beneficial tax regimes to reinvest profits in further development of respective subsidiaries, therefore it does not plan to distribute dividends from subsidiaries in these countries in the next 5 years. The Group controls the process of dividend distribution and does not plan to distribute dividends from subsidiaries of these countries for year 2024 and after in the foreseeable future: 5 year horizon is considered appropriate given the Group's planning cycle.

Due to above mentioned reason, the Group has not recognized deferred tax liabilities.

See further information in Note 17.

3. Critical accounting estimates and judgements (continued)

Provisions

Significant management judgement is used for estimating provisions in relation to tax amounts disputed with tax authorities.
For more details see Note 34.

Lease term determination under IFRS 16 (Group as a Lessee)

IFRS 16 requires that in determining the lease term and assessing the length of the non-cancellable period of a lease, an entity shall determine the period for which the contract is enforceable. In assessment of lease term determination the Group considers the enforceable rights and obligations of both parties. If both the lessee and the lessor can terminate the contract without more than an insignificant penalty at any time at or after the end of the non-cancellable term, then there are no enforceable rights and obligations beyond the non-cancellable term. For lease agreements without a fixed term and agreements that are “rolled over” on monthly basis until either party gives notice the Group considers that it does have enforceable rights and obligations under such agreements, therefore a reasonable estimate of the lease term assessment is made.

When determining the lease term, the Group considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise an option to renew or not to exercise an option to terminate early. When assessing whether the Group is reasonably certain to exercise an option to extend, or not to exercise an option to terminate early, the economic reasons underlying the Group's past practice regarding the period over which it has typically used particular types of assets (whether leased or owned) are considered. Furthermore, the following factors are considered: level of rentals in any secondary period compared with market rates, contingent payments, renewal and purchase options, costs relating to the termination of the lease and the signing of a new replacement lease, costs to return the underlying asset, nature and the level of specialization of the leased assets, asset location, availability of suitable alternatives and existence of significant leasehold improvements. See Note 22.

Lease liability incremental borrowing rate determination under IFRS 16 (Group as a Lessee)

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group has used market rates in each of the countries as its incremental borrowing rate. The discount rate applied is obtained from official state government institutions as the average market rate available at the beginning of the lease agreement for loans over a similar term, security, value and applied in similar economic environment. The Group considers market rates used as an appropriate measure for incremental borrowing rates as they correctly reflect the ability the respective subsidiary to finance a specific asset purchase in each of the jurisdictions given the Group’s wide geographical coverage, its track record in ability to raise public debt and the overall financial results of the Group and each subsidiary individually.

As additional factor considered is the way how local lenders would approach the asset financing at each subsidiary level. The two most important factors assessed would be the potential borrower’s (in this case Group’s subsidiary’s) financial position and the asset that is being financed (i.e. the quality of the security). As per Group’s assessment each of the Group’s subsidiaries would qualify as a good quality borrower in the local markets in the context of overall Group results.

Lease classification for rental fleet (Group as a Lessor)

The Group has entered into vehicle leases on its rental fleet (Note 21). These lease agreements have a non-cancellable term of 6 months and an optional term of up to 72 months. After the non-cancellable term of 6 months the lessee can return the leased asset to the Group and losses associated with the cancellation are borne by the Group. The leased asset is not transferred to lessee at the end of lease term. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the leased assets and the present value of the minimum lease payments not amounting to substantially all of the fair value of the leased asset, that it retains all the significant risks and rewards of ownership of these assets and accounts for the contracts as operating leases.

Measurement of fair values

Trademarks obtained in business combinations during 2023

The Relief-from-royalty method was used for measuring the fair value of trademarks obtained. The relief from-royalty method considers the discounted estimated royalty payments that are expected to be avoided as a result of the patents or trademarks being owned.
Management’s key assumptions used to determine the value of trademarks were as follows:
Average cash flow forecast (5 Year) revenue growth rate is 19% per year (range 10% - 37%)
Long term revenue growth rate is 0% as a matter of prudence for fair value estimation.
Average trademark royalty rate is 0.9% (range 0.9% - 1.1%)
Average discount rate is 25.4% (range 22.2% - 32.0%)

Property, plant and equipment obtained in business combinations

Depreciated replacement cost technique was used for measuring the fair value of Property, plant and equipment obtained. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence of assets obtained.

Other intangible assets obtained in business combinations

The With and Without Method (WWM) was used for measuring fair value of DAS Access asset acquired. The WWM estimates an intangible asset’s value by calculating the difference between two discounted cash-flow models: one that represents the status quo for the business enterprise with the asset in place, and another without it.
Management’s key assumptions used to determine the value of DAS Asset were as follows:
Loan issuance growth rate is 18%
Long term growth rate is 0% as a matter of prudence for fair value estimation.
Expected Loss (EL) for DAS loans issued: With asset is 8.0%; Without asset is 25.0%
Discount rate is 32%

Depreciated replacement cost technique was used for measuring the fair value of Intangible assets obtained (excluding Trademarks and DAS Access Asset). Depreciated replacement cost reflects adjustments for functional and economic obsolescence of assets obtained.

Please refer to Note 44 for disclosure of and relevant inputs for fair value techniques applied to financial assets and liabilities.

Obtaining control over obtained entities

During 2023 the Group obtained several new subsidiaries in a transaction where legal ownership of the companies was obtained through obtaining of a holding entity EC Finance Group SIA. The Group assumed full control over the newly obtained entities from the moment of signing the agreements since they include clauses granting the Group the power to govern the obtained entities from day of signing the share obtaining agreements. Accordingly, the Group concluded that control in accordance with IFRS 10 was exercised and commenced consolidation of the subsidiaries. The management of Eleving Group S.A. evaluated whether the acquisition of EC Finance Group SIA is considered as “transaction under common control”, whereas such transactions are outside of the scope of IFRS 3 “Business combinations”. Such evaluation was performed due to the fact that CI Holding AS and Eleving Group S.A. has overlapping shareholders. However, after careful consideration and interpretation of IFRS Accounting Policies, the management determined that the transaction should not be treated as under common control. This determination was made due to the impact of the transaction on minority shareholders, leading the management to conclude that the acquisition method prescribed by IFRS 3 should be applied. Consequently, the transaction falls within the scope of IFRS 3 for business combinations.

3. Critical accounting estimates and judgements (continued)

Disposal groups and discontinued operations

At the end of 2021 the Group made a decision to fully exit the Balkan region with its car financing business as well as in late 2023 the Group decided to exit also from Belarus.

As a result of these decisions some entities have been sold in 2024, but for some entities the process of liquidation has been completed. Due to these reasons all of the following group subsidiaries as at 31 December 2023 were classified as subsidiaries held for sale or under liquidation and as discontinued operations in 2023 and 2024:

- Mogo Leasing d.o.o. (Bosnia&Herzegovina) - liquidated in 2024;
- Rocket Leasing OOO (Belarus) - liquidated in 2024;
- Autotrade OOO (Belarus) - sold in early 2024;
- MOGO Kredit LLC (Belarus) - sold in early 2024.

4. Interest revenue


								2024		2023
								EUR		EUR


Interest income from secured receivables according to effective interest rate method	97,959,131	98,735,235
Interest income from unsecured receivables according to effective interest rate method	105,173,029	76,785,582
Other interest income according to effective interest rate method	617,215	776,958
TOTAL:	203,749,375	176,297,775

Interest income contains earned interest on portfolio derecognized from Group's assets due to being listed on P2P platform and having no buy back obligation.


Gross and net earned interest are as follows:	2024	2023
Gross and net earned interest are as follows:	EUR	EUR


Gross interest income	203,749,375	176,298,402
Interest derecognized due to derecognition of portfolio from Group's assets	-	(627)
TOTAL NET INTEREST:	203,749,375	176,297,775

Interest income from impaired Stage 3 loans amounts to EUR 2 116 441 (2023: EUR 1 898 445).

5. Interest expense


								2024		2023
								EUR		EUR


Interest expenses on financial liabilities measured at amortised cost:
Interest expense on issued bonds	27,825,505	23,807,651
Interest expenses for loans from P2P platform investors	6,707,269	9,399,425
Interest expenses for bank liabilities and related parties	4,912,231	2,952,186
Interest expenses for lease liabilities	825,878	727,919
Interest expenses for other borrowings	1,249,392	612,263
TOTAL:	41,520,275	37,499,444

6. Fee and commission income related to financing activities


Revenue from contracts with customers recognized point in time:	2024	2023
	EUR	EUR


Income from penalties received	9,331,627	7,754,726
Income from commissions	4,113,572	3,663,653
TOTAL:	13,445,199	11,418,379

Gain/(loss) from contracts with customers recognized point in time related to debt collection activities:	2024	2023
	EUR	EUR
Gross income from debt collection activities	2,034,840	2,423,808
Gross expenses from debt collection activities	(5,404,010)	(4,874,045)
TOTAL:	(3,369,170)	(2,450,237)
Total fees and commissions income:	10,076,029	8,968,142

7. Impairment expense


								2024		2023
								EUR		EUR


Change in impairment of intangible assets (Notes 20)	-	65,640
Change in impairment in rental fleet (Note 21)	(27,303)	(61,895)
Change in impairment in loans and advances to customers (Note 23)*	(347,044)	7,479,821
Change in impairment in loans to related parties (Note 24)	-	(49,727)
Change in impairment of finished goods and goods for resale (Notes 26)	427,961	297,207
Change in impairment in trade receivables (Note 28)	(332,150)	381,300
Change in impairment in other receivables (Note 29)	3,796	(612,092)
Change in impairment in assets held for sale (Note 32)	132,938	241,165
Disposal of impairment after sale of the respective receivables*	17,336,331	9,030,123
Written off debts	24,908,092	23,075,082
TOTAL:	42,102,621	39,846,624

* - In 2024 the Group more actively performed sales transactions of bad debts thus its impairment expense of sold receivables increased compared to previous year while change in impairment of remaining portfolio was relatively low. In 2023 the Group sold less doubtful receivables therefore the cost of impairment of sold receivables were less while change in impairment was higher.

8. Net gain/(loss) from de-recognition of financial assets measured at amortized cost


								2024		2023
								EUR		EUR


Loans and advances to customers
Income arising from cession of loans and advances to customers receivables to non related parties	3,700,998	5,778,683
Loss arising from cession of loans and advances to customers receivables to non related parties	(1,995,005)	(4,626,282)
TOTAL:	1,705,993	1,152,401

Receivables from rent contracts
Income arising from cession of customers receivables to non related parties	432,044	54,653
Loss arising from cession of customers receivables to non related parties	(378,937)	(47,731)
TOTAL:	53,107	6,922

Net gain/(loss) arising from cession of loans and advances to customers and rent contracts	1,759,100	1,159,323

During 2023 and 2024 the Group performed cessions of doubtful loans and advances to customers receivables to non related parties. The Group uses opportunities to sell receivables in cession to improve cash flow and reduce debt collection related expenses associated of recovering of doubtful debts.

When loans and advances to customers portfolio is sold in cession the Group reverses the respective part of impairment allowance of the ceded assets (Note 23).

The Group then separately recognizes net losses arising from derecognition of the ceded portfolio, which is reduced by the respective cession income.

9. Expenses related to peer-to-peer platform services


								2024		2023
								EUR		EUR


Service fee for using P2P platform	895,450	987,970
TOTAL:	895,450	987,970

10. Revenue from leases


								2024		2023
								EUR		EUR


Revenue from operating lease	2,748,356	4,067,111
TOTAL:	2,748,356	4,067,111

The Group has scaled down its operating lease business line therefore income from this revenue stream has reduced compared to previous year.

11. Revenue from car sales and other goods


Revenue from contracts with customers recognized point in time:	2024	2023
	EUR	EUR


Income from sale of vehicles and other goods	7,074,452	1,936,451
TOTAL:	7,074,452	1,936,451



Expenses from contracts with customers recognized point in time:	2024	2023
	EUR	EUR


Expenses from sale of vehicles and other goods	(6,559,224)	(1,789,166)
TOTAL:	(6,559,224)	(1,789,166)

Total Net revenue from contracts with customers recognized point in time	515,228	147,285

During 2023 the Group has started car sale and mobile phone sale business in Kenya which has resulted in significant increase in revenue from this business line. In 2024 the Group continued expansion of this business line.

12. Selling expense


								2024		2023
								EUR		EUR


Online marketing expenses	1,700,614	1,342,637
Radio advertising	551,230	215,735
TV advertising	484,711	582,692
Affiliate fees	6,463	26,671
Other marketing expenses	1,816,998	1,286,993
Total marketing expenses	4,560,016	3,454,728
Customer insurance expenses	2,021,612	2,172,727
Other selling expenses	621,402	799,397
TOTAL:	7,203,030	6,426,852

13. Administrative expense


								2024		2023
								EUR		EUR


Employees' salaries		41,807,837	34,814,751
Amortization and depreciation		9,854,800	9,442,554
Professional services		4,057,927	2,802,696
IT services		3,827,765	3,220,247
Office and branches' maintenance expenses		3,480,022	2,928,259
Communication expenses		1,800,781	1,450,133
GPS tracking service expenses		1,539,965	1,649,342
Business trip expenses		1,319,030	1,060,195
Other personnel expenses		1,206,002	832,018
Bank commissions		1,198,499	927,972
Credit database expenses		947,413	757,986
Transportation expenses		640,586	667,357
Insurance expenses		524,651	503,786
Low value equipment expenses		232,966	182,197
Expenses from disposal of rental fleet and other fixed assets		181,804	39,093
Employee recruitment expenses		139,082	126,863
Real estate tax		86,796	132
Donations		50,946	23,990
Other administration expenses		1,804,125	1,816,439
	TOTAL:	74,700,997	63,246,010

Audit fees for Group’s entities’ 2024 financial statements audit amounts to 683 660 EUR, the Parent Company - 138 000 EUR
(2023: EUR 549 930; the Parent Company - 80 430 EUR).

In 2024 the audit company also provided services related to interim dividend distribution in total amount of EUR 15 900 (2023: EUR 25 200).

The audit company provided 6 month 2024 ISRE 2410 review services and issued a comfort letter on the proposed international public offering. Total amount of these services consisted of EUR 427 000.

No other permitted non-audit-services were provided to the Group by the auditor and member firms of its network during the year.

Amounts included in 'Professional services' line.

Key management personnel compensation


Members of the Management	2024	2023
	EUR	EUR


Remuneration*		4,182,741	4,376,041
Social security contribution expenses		502,877	631,353
	TOTAL:	4,685,618	5,007,394

Key management personnel is considered to be all Group top management employees, regional management employees and country managers.

* - Including vacation accruals.

Although total amount of employees has reduced, total salary costs for the year have increased due to the fact that the EC Finance Group SIA (obtained in second half of 2023) has contributed salary expenses for full year in 2024 compared to only half year in 2023.

There are no amounts receivable or payable as of 31 December 2024 with members of the Group’s Management (none at 31 December 2023) for any past transactions. There are no emoluments granted for current and for former members of the management and commitments in respect of retirement pensions for former members of the management.

In 2024 the Group employed 2 589 employees (in 2023: 2 817).


Country	2024	2023	Country	2024	2023
Country	EUR	EUR	Country	EUR	EUR


Albania	222	231	Lithuania	75	74
Armenia	60	72	Mauritius	2	3
Belarus	-	61	Moldova	184	195
Bosnia&Hercegovina	-	2	Namibia	203	139
Botswana	86	73	North Macedonia	179	163
Estonia	23	21	Romania	57	57
Georgia	71	75	Uganda	233	355
Kenya	723	833	Ukraine	15	59
Latvia	273	257	Uzbekistan	58	50
Lesotho	13	11	Zambia	112	86

14. Other operating income


								2024		2023
								EUR		EUR


Supplementary services income*		1,890,635	1,003,605
Income from management services		567,920	476,572
Other operating income		400,765	888,562
	TOTAL:	2,859,320	2,368,739

* - Additionally to its main services provided by the Group to its customers, the Group also provides other minor supplementary services which improve customer experience. Such services are not significant part of the Groups' service portfolio on individual type basis, thus are aggregated and disclosed as 'Supplementary services'.


Revenue from contracts with customers recognized point in time where the Group acted as an agent **	2024	2023
	EUR	EUR


Gross revenue from agency services	140,173	271,600
Gross expenses from agency services	(140,173)	(271,600)
TOTAL:	-	-

** - Revenue associated with these transactions is presented as revenue in net amount in these consolidated financial statements.

15. Other operating expense


								2024		2023
								EUR		EUR


Withholding tax expenses		3,824,459	3,594,500
Non-deductible VAT from management services		3,504,857	3,083,292
Additional VAT calculated by tax authorities in Romania*		3,030,217	-
Credit default swap expenses**		1,338,248	1,352,161
Expense from associates accounted under equity method		490,439	623,908
Other operating expenses		1,646,501	1,479,779
	TOTAL:	13,834,721	10,133,640

* - On December 16, 2024, the Romanian tax authorities concluded a VAT audit of Eleving Group's company for 2017-2022, assessing an additional EUR 3 million in VAT liabilities. Utilizing Romania's tax amnesty provisions, the company settled only the assessed tax amount by the January 20, 2025 deadline, while actively contesting the findings, with a formal appeal submitted by January 31, 2025.

** - a subsidiary of the Parent company - Mogo LT UAB, has signed a credit default swap agreement with a former company of the Group - Risk Management Services OU. Based on this contract the Group incurs credit default swap expenses in return for an insurance of the default of Mogo LT UAB loans and advances to customers portfolio.

16. Net foreign exchange result


								2024		2023
								EUR		EUR


Currency exchange gain		(15,469,241)	(2,737,620)
Currency exchange loss		19,179,090	9,123,453
	TOTAL:	3,709,849	6,385,833

Main impact comes from currency rate fluctuations of Kenya Shiling.

17. Corporate income tax


								2024		2023
								EUR		EUR


Current corporate income tax charge for the reporting year	8,203,820	8,324,461
Deferred corporate income tax due to changes in temporary differences	732,929	(1,758,559)
Corporate income tax charged to the income statement:	8,936,749	6,565,902

Unrecognized deferred tax liability for undistributed dividends as described in Note 3 comprises 10 030 374 EUR. (2023: 9 406 035 EUR)


								31.12.2024		31.12.2023
								EUR		EUR


Current corporate income tax liabilities		3,591,081	729,149
	TOTAL:	3,591,081	729,149

Corporate income tax liabilities have increased in 2024 compared to 2023 mainly due to subsidiaries in Africa obtained in 2023. Those subsidiaries have generated taxable profits in 2024 which caused increase of corporate income tax liabilities at year end.

18. Deferred corporate income tax


Balance sheet		Income statement
31.12.2024	31.12.2023	2024	2023
EUR	EUR	EUR	EUR


Deferred corporate income tax liability
Accelerated depreciation for tax purposes	164,988	251,308	(75,462)	(64,391)
Other	2,126,423	229,918	1,610,477	137,428
Gross deferred tax liability	2,291,411	481,226	1,535,015	73,037

Deferred corporate income tax asset
Tax loss carried forward	(2,350,119)	(2,846,009)	523,335	(76,945)
Unused vacation accruals	(245,902)	(196,978)	(32,939)	54,514
Impairment	(7,483,783)	(4,720,754)	(1,633,653)	289,392
Currency fluctuation effect	-	-	(1,048,682)	1,198,508
Other	(1,405,199)	(1,595,324)	341,171	(2,098,557)
Gross deferred tax asset	(11,485,003)	(9,359,065)	(1,850,768)	(633,088)
Net deferred tax liability/ (asset)	(9,193,592)	(8,877,839)	(315,753)	(560,051)
Increase in net deferred tax asset:
In the statement of profit and loss	-	-	732,929	(1,758,559)
Net deferred corporate income tax assets	(9,193,592)	(8,877,839)
Net deferred corporate income tax expense/ (benefit)			732,929	(1,758,559)

The Group believes that tax asset arising from tax losses will be utilized in nearest few years with future profits as well as asset arising due to temporary impairment cost recognition when low performing portfolio will be sold to third parties.

18. Deferred corporate income tax (continued)

For all countries the asset is deemed recoverable based on trends of historical performance and estimates of future results. Deferred tax asset has been recognized in subsidiaries in following countries:

Deferred tax asset


Subsidiary	2024	2023
	EUR	EUR


Mogo Auto Ltd		2,506,292	2,998,449
YesCash Group Ltd		2,247,180	1,876,026
MOGO LOANS SMC LIMITED		1,834,029	2,062,902
ExpressCredit Proprietary Ltd		780,691	438,623
ExpressCredit Cash Advance Ltd		696,529	145,978
YesCash Zambia LTD		467,341	531,251
Kredo Finance SHPK		244,876	271,449
Green Power Trading LTD		233,480	311,281
Other		183,174	241,880
	TOTAL:	9,193,592	8,877,839

Recognition of deferred taxes mainly is driven from accumulated tax losses from entities in Mauritius and Uganda as well as temporary differences in taxable impairment in Kenya.

Deferred tax assets have not been recognized mainly in respect to tax losses arisen in Luxembourg and Ukraine as there may be no future taxable profits available in the foreseeable future. Subsidiaries in Ukraine have been loss-making and there are no other tax planning opportunities or other evidence of recoverability in the near future. Recoverability of deferred tax asset in Luxembourg in nearest future is also unlikely.

Deferred tax asset not recognized due to the above reason in amount of 8 824 652 EUR. (2023: 8 548 066 EUR).

The potential income tax consequence attached to the payment of dividends in 2024 amounts to 624 339 EUR. (2023: 624 736 EUR.)


Tax losses for which no deferred tax assets are recognized by the Group may be utilized as follows for carry forward:	Tax loss	Expiry term
	EUR	Expiry term


Tax loss for 2019	3,852,603	2025
Tax loss for 2020	6,787,321	2025-2026
Tax loss for 2021	20,813,333	2026-2027
Tax loss for 2022	3,703,855	2027-2028
Tax loss for 2023	2,253,199	2028-2029
Tax loss for 2024	2,462,672	2029-2030
TOTAL:	39,872,983

Tax losses for which no deferred tax assets were recognized by the Group for previous reporting period consisted of EUR 38 632 230.


Actual corporate income tax charge for the reporting year, if compared with theoretical calculations:	2024	2023
	EUR	EUR


Profit before tax	37,740,465	28,482,002
Tax at the applicable tax rate*	9,412,472	7,103,411
Undistributed earnings taxable on distribution**	(572,496)	(2,534,833)
Unrecognized deferred tax asset	106,073	354,482
Effect of different tax rates of subsidiaries operating in other jurisdictions	(2,675,034)	(3,146,455)
Non-temporary differences:
Business not related expenses (donations, penalties and similar expenses)	(185,911)	(807,112)
Other***	2,851,645	5,596,409
Actual corporate income tax for the reporting year:	8,936,749	6,565,902

Effective income tax rate	23.68%	23.05%

* - Tax rate for the Parent company for year 2024 - 24,94% (2023 - 24,94%)

** - In Latvia, Estonia and Georgia corporate income tax expenses are not recognized starting from 2017 or before in accordance with local legislation. See further information in Note 3.

*** - 'Other' contains other non-temporary differences as well as impact of consolidation adjsutments.

19. Discontinued operations

As of end of 2023 the Group had either sold or was in active liquidation process of its vehicle business operations in the Balkan region. In 2022 the Group had decided to fully exit from the Balkan region as a geographical market with its vehicle financing business line while retaining its consumer financing business lines in the region. Due to this reason the Group had decided to classify the vehicle financing operations in Bosnia-Herzegovina as well as Poland as discontinued operation and present their results separately. The subsidiary in Bosnia-Herzegovina was liquidated in 2024. Also in 2023 the Group decided to exit Belarus as a geographical market therefore several subsidiaries in Belarus are also classified as discontinued operations. As of end of 2024 all entities in Belarus are either sold or liquidated. The Group does not have any discontined operations at 2024 year end.

All following entities are classified as discontinued operations in these consolidated financial statements:

- Mogo Leasing d.o.o. (Bosnia&Herzegovina), liquidation process finished in Q1 of 2024
- Rocket Leasing OOO (Belarus), company sold in January 2024
- Autotrade OOO (Belarus), company sold in January 2024
- MOGO Kredit LLC (Belarus), company sold in January 2024


Results of discontinued operation	2024	2023
Results of discontinued operation	EUR	EUR


Interest income	900,598	4,894,168
Other debt collection income/(expense)	45,812	301,050
External revenue	946,410	5,195,218
Expenses	(552,901)	(3,745,069)
Elimination of expenses related to inter‑segment sales	-	1,104,241
External expenses	(552,901)	(2,640,828)
Results from operating activities	393,509	2,554,390
Income tax	(270,622)	(291,447)
Results from operating activities, net of tax	122,887	2,262,943
Gain on sale of discontinued operation/(loss) on measurement to fair value less costs to sell of the disposal group	645,225	276,011
Profit (loss) from discontinued operations, net of tax	768,112	2,538,954

19. Discontinued operations (continued)


Cash flows from discontinued operation	2024	2023
Cash flows from discontinued operation	EUR	EUR


Net cash used in operating activities	8,175,838	5,078,806
Net cash from investing activities	401,587	253,509
Net cash from financing activities	(9,541,121)	(14,875,734)
Net cash flows for the year	(963,696)	(9,543,419)


Effect of disposal on the financial position of the Group	2024	2023
Effect of disposal on the financial position of the Group	EUR	EUR


Intangible assets	-	-
Tangible assets	-	(405,104)
Deferred tax asset	-	(290,860)
Loans and advances to customers	-	(145,140)
	-	(8,050,101)
Other receivables	-	(561,080)
Cash and cash equivalents disposed of	-	(104,578)
Total disposed assets	-	(9,556,863)
Other liabilities	-	2,045,004
Net assets and liabilities	-	(7,511,859)
Net cash outflows	-	(104,578)

20. Intangible assets


		Internally generated intangible assets		Other intangible assets	Other intangible assets SUBTOTAL


	Goodwill		Trademarks			TOTAL
	EUR	EUR	EUR	EUR	EUR	EUR
Cost	4,659,049	14,789,632	2,151,085	409,993	2,561,078	22,009,759
Accumulated amortization	-	(6,148,194)	-	(149,820)	(149,820)	(6,298,014)


	As at 1 January 2023					4,659,049	8,641,438	2,151,085	260,173	2,411,258	15,711,745

2023


Additions	-	2,474,926	-	1,060,536	1,060,536	3,535,462
Acquisition of a subsidiary through business combination	2,148,006	7,798,508	1,072,000	1,860,778	2,932,778	12,879,292
Reclassification	-	904,566	-	(904,566)	(904,566)	-
Reclassified to assets held for sale (cost)	-	(366,717)	-	(2,144)	(2,144)	(368,861)
Disposals (cost)	-	(75,263)	-	(37,423)	(37,423)	(112,686)
Exchange difference, net	-	9,555	-	(6,455)	(6,455)	3,100
Amortization charge	-	(3,081,502)	-	(55,817)	(55,817)	(3,137,319)
Disposals (amortization)	-	76,879	-	15,177	15,177	92,056
Acquisition of a subsidiary through business combination (amortization)	-	(6,096,372)	-	(26,298)	(26,298)	(6,122,670)
Reclassified from assets held for sale (amortization)	-	62,254	-	1,902	1,902	64,156
Impairment	-	(65,640)	-	-	-	(65,640)
Exchange difference, net	-	(18,713)	-	4,515	4,515	(14,198)


Cost	6,807,055	25,535,207	3,223,085	2,380,719	5,603,804	37,946,066
Accumulated amortization	-	(15,271,288)	-	(210,341)	(210,341)	(15,481,629)


	As at 31 December 2023					6,807,055	10,263,919	3,223,085	2,170,378	5,393,463	22,464,437

2024


Additions	-	1,477,326	-	3,066,640	3,066,640	4,543,966
Reclassification	-	3,104,261	-	(3,104,261)	(3,104,261)	-
Disposals (cost)	-	(27,829)	-	(56,760)	(56,760)	(84,589)
Exchange difference, net	-	77,316	-	3,239	3,239	80,555
Amortization charge	-	(3,166,962)	-	(33,582)	(33,582)	(3,200,544)
Disposals (amortization)	-	7,589	-	51,646	51,646	59,235
Exchange difference, net	-	49,244	-	(872)	(870)	48,372


Cost	6,807,055	30,166,281	3,223,085	2,289,577	5,512,662	42,485,998
Accumulated amortization	-	(18,381,417)	-	(193,149)	(193,147)	(18,574,566)


	As at 31 December 2024					6,807,055	11,784,864	3,223,085	2,096,428	5,319,515	23,911,432

* Internally generated intangible assets mainly consist of Group's developed ERP systems. Carrying amount of ERP systems at reporting year end was EUR 11 613 281. Expected amortization period is 7 years with year 2030 end date.

Carrying amount has increased as the Group continued to make investments in further development of the systems.

Amortization costs are included in the caption "Administrative expense".


Split of goodwill per cash generating unit:	31.12.2024	31.12.2023
Name	EUR	EUR


TIGO Finance DOOEL Skopje (North Macedonia)	3,000,276	3,000,276
EC Finance Group SIA*	2,148,006	2,148,006
UAB mogo (Lithuania)	646,063	646,063
OU Primero Finance (Estonia)	451,894	451,894
AS mogo (Latvia)	298,738	298,738
Mogo UCO (Armenia)	182,028	182,028
Mogo LLC (Georgia)	80,050	80,050
	6,807,055	6,807,055

Each cash generating unit represents a subsidiary of the Group.

* - During 2023 the Group obtained the EC Finance Group SIA as a whole group with its 'Express Credit' brand. Goodwill from this transaction was recognized on the group as a whole instead of individual subsidiaries due to the fact that the Group considers whole EC Finance Group SIA as one cash generating unit therefore does not recognize goodwill on each individual subsidiary obtained.

Goodwill and trademarks impairment test

As at 31 December 2024, goodwill and trademarks were tested for impairment.

The impairment test was performed for each cash generating unit separately.

The recoverable amounts for each unit were calculated based on their value in use, determined by discounting the future cash flows expected to be generated from the continuing activities of the units. No impairment losses were recognized because the recoverable amounts of these units including the goodwill allocated were determined to be higher than their carrying amounts. The calculations of value-in-use were based on free cash flow to equity approach to each unit respectively, discounted by estimated cost of equity. The value-in-use calculations are most sensitive to projected operating cash-flow, terminal growth rates used to extrapolate cash flows beyond the budget period, and discount rates. Projected operating cash-flow figures were based on detailed financial models.

Recoverable amount for the subsidiaries are estimated to be:


	Name										Amount


	TIGO Finance DOOEL Skopje (North Macedonia)										13.4 million EUR
	EC Finance Group SIA										39.1 million EUR
	UAB mogo (Lithuania)										11.8 million EUR
	OU Primero Finance (Estonia)										10.1 million EUR
	AS mogo (Latvia)										9.6 million EUR
	Mogo UCO (Armenia)										9.6 million EUR
	Mogo LLC (Georgia)										19.7 million EUR

2024 actual figures were used as a starting point in these models, and took into account management's expectations of the future performance of each unit.

Five years of cash flows were included in the discounted cash flow model. A long-term terminal growth rate into perpetuity was determined to be from 2.1% to 5.0%. The rate was estimated by management based on the forecasted trends of economic and macroeconomic environment in existing markets.

Discount rates reflect the current market assessment of the risk specific to each unit.

Discount rates applied are:


	Name										Rate


	TIGO Finance DOOEL Skopje (North Macedonia)										31.4%
	EC Finance Group SIA										27.8% - 54.3%
	UAB mogo (Lithuania)										15.6%
	OU Primero Finance (Estonia)										14.8%
	AS mogo (Latvia)										15.9%
	Mogo UCO (Armenia)										30.0%
	Mogo LLC (Georgia)										28.3%

Sensitivity analysis was performed to assess changes to key assumptions that could influence whether the carrying value of the units exceeded their recoverable amounts. The results of this analysis indicate that for all units, the recoverable amount would not be below the carrying amount including goodwill (i.e. goodwill would not become impaired), if terminal growth rates decreased by 0.5% and discount rates increased by 5%.

The recoverable amounts after stress test exceed the carrying amounts for:


	Name										Amount


	TIGO Finance DOOEL Skopje (North Macedonia)										8.5 million EUR
	EC Finance Group SIA										37.0 million EUR
	UAB mogo (Lithuania)										6.8 million EUR
	OU Primero Finance (Estonia)										6.7 million EUR
	AS mogo (Latvia)										6.4 million EUR
	Mogo UCO (Armenia)										8.8 million EUR
	Mogo LLC (Georgia)										15.8 million EUR

The following table shows currently applied terminal growth and discount rates and their adjusted values which would result in carrying value to be equal to recoverable value:


	Currently applied values		Adjusted values
	Terminal growth rate	Discount rate	Terminal growth rate	Discount rate
Name	Terminal growth rate	Discount rate	Terminal growth rate	Discount rate
TIGO Finance DOOEL Skopje (North Macedonia)	3.5%	31.4%	0.0%	165.4%
EC Finance Group SIA	2.1% - 4.9%	27.8% - 54.3%	0.0%	294.2%
UAB mogo (Lithuania)	2.2%	15.6%	0.0%	73.8%
OU Primero Finance (Estonia)	2.0%	14.8%	0.0%	152.9%
AS mogo (Latvia)	2.5%	15.9%	0.0%	112.7%
Mogo UCO (Armenia)	4.5%	30.0%	0.0%	3903.5%
Mogo LLC (Georgia)	5.0%	28.3%	0.0%	5703.3%

The Group has determined that there is no risk in terms of potential impairment arising from a change in the valuation parameters.


21. Property, plant and equipment and Right-of-use assets
							Other property, plant and equipment
	Right-of-use premises	Right-of-use motor vehicles	SUBTOTAL Right-of-use assets	Car sharing rental fleet	Long term rental fleet	SUBTOTAL Rental fleet

								TOTAL


	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
Cost	15,097,612	327,385	15,424,997	750,747	13,256,631	14,007,378	6,947,223	36,379,598
Accumulated depreciation	(5,407,430)	(82,938)	(5,490,368)	(25,393)	(3,973,490)	(3,998,883)	(4,169,468)	(13,658,719)


	As at 1 January 2023			9,690,182	244,447	9,934,629	725,354	9,283,141	10,008,495	2,777,755	22,720,879

2023


Additions	4,976,220	15,508	4,991,728	3,013,359	1,108,735	4,122,094	1,407,939	10,521,761
Disposals (cost)	(2,485,573)	(48,757)	(2,534,330)	(38,651)	(7,640,331)	(7,678,982)	(478,011)	(10,691,323)
Acquisition of a subsidiary through business combination	1,850,387	-	1,850,387	-	-	-	1,600,186	3,450,573
Reclassified to assets held for sale (cost)	(190,949)	(16,945)	(207,894)	-	-	-	(82,394)	(290,288)
Exchange difference, net	(1,069,714)	(2,302)	(1,072,016)	-	-	-	(589,262)	(1,661,278)


Depreciation charge	(2,341,327)	(84,902)	(2,426,229)	(179,198)	(1,299,276)	(1,478,474)	(1,213,667)	(5,118,370)
Disposals (depreciation)	686,550	27,105	713,655	5,236	2,045,664	2,050,900	231,922	2,996,477
Acquisition of a subsidiary through business combination (depreciation)	(1,149,316)	-	(1,149,316)	-	-	-	(1,179,191)	(2,328,507)

Reclassified to assets held for sale (depreciation)	108,952	10,407	119,359	-	-	-	74,047	193,406
Impairment release	-	-	-	-	61,895	61,895	-	61,895
Exchange difference, net	337,906	1,407	339,313	-	-	-	322,818	662,131


Cost	18,177,983	274,889	18,452,872	3,725,455	6,725,035	10,450,490	8,805,681	37,709,043
Accumulated depreciation	(7,764,665)	(128,921)	(7,893,586)	(199,355)	(3,165,207)	(3,364,562)	(5,933,539)	(17,191,687)


	As at 31 December 2023			10,413,318	145,968	10,559,286	3,526,100	3,559,828	7,085,928	2,872,142	20,517,356

2024


Additions	4,738,145	159,446	4,897,591	2,358	421,846	424,204	3,341,906	8,663,701
Disposals (cost)	(2,967,447)	(246,231)	(3,213,678)	-	(2,394,139)	(2,394,139)	(1,848,656)	(7,456,473)
Disposals due to subsidiary reorganisation (cost)	-	-	-	(3,727,813)	-	(3,727,813)	-	(3,727,813)
Exchange difference, net	527,847	161	528,008	-	-	-	322,148	850,156


Depreciation charge	(4,037,231)	(73,070)	(4,110,301)	(128,589)	(804,849)	(933,438)	(1,610,517)	(6,654,256)
Disposals (depreciation)	2,289,910	151,221	2,441,131	-	1,227,997	1,227,997	617,678	4,286,806
Disposals due to subsidiary reorganisation (depreciation)	-	-	-	327,944	-	327,944	-	327,944
Impairment release	-	-	-	-	27,303	27,303	-	27,303
Exchange difference, net	(322,788)	(151)	(322,939)	-	-	-	(229,580)	(552,519)


Cost	20,476,528	188,265	20,664,793	-	4,752,742	4,752,742	10,621,079	36,038,614
Accumulated depreciation	(9,834,774)	(50,921)	(9,885,695)	-	(2,714,756)	(2,714,756)	(7,155,958)	(19,756,409)


	As at 31 December 2024			10,641,754	137,344	10,779,098	-	2,037,986	2,037,986	3,465,121	16,282,205


Operating leases maturity analysis	Contractual cash flows
	Carrying value	Up to 1 year	1-5 years	More than 5 years	Total
	Carrying value			More than 5 years
	EUR	EUR	EUR	EUR	EUR


	Long term rental fleet					2,037,986		1,552,292	869,013	-	2,421,305

Impairment test of non-financial assets (long term rental fleet)

As of 31 December 2024, non-financial assets of long term rental fleet were tested for impairment. An impairment indication existed as Renti AS has been loss making.

Out of total long term rental fleet with the acquisition cost of EUR 4 752 742, impairment was identified for the total long term rental fleet with a acquisition cost of EUR 1 036 669. For those cars recoverable amount is estimated to EUR 281 656. The recoverable amount was estimated based on the value in use method discounting the cash-flow using a WACC of 12.6%. The cash-flow was projected based on rental agreements probabilities of default and early repayments. As a result, impairment loss was recognised in previous years and remaining impairment amount as at 31 December is EUR 48 095.
For the remaining long term rental fleet with the acquisition value of EUR 3 716 073 the recoverable amount was estimated as EUR 1 153 141.

Sensitivity analysis was performed to assess changes to key assumptions that could influence whether the carrying value of the long term rental fleet assets exceeded their recoverable amounts. If WACC would have increased by 2%, all other assumptions remaining the same including the rental income, acquisition cost would increase to EUR 1 129 990 and the recoverable amount of impaired assets would equal to EUR 311 985, additional impairment of EUR 4 239 would need to be recognized.

For detailed description of impairment testing refer to ‘Impairment of non-financial assets (rental fleet) (Note 3).

22. Right-of-use assets and lease liabilities

Right-of-use assets and lease liabilities are shown as follows in the statement of financial position and statement of profit and loss:


31.12.2024		31.12.2023
	EUR		EUR


ASSETS
Non-current assets
Right-of-use assets - premises		10,641,754	10,413,318
Right-of-use assets - motor vehicles		137,344	145,968
	TOTAL:	10,779,098	10,559,286

EQUITY AND LIABILITIES
Non-current liabilities
Lease liabilities		6,805,081	7,247,159
Current liabilities
Lease liabilities		5,067,981	4,553,929
	TOTAL:	11,873,062	11,801,088


										2024
										EUR


	Leases in the statement of profit and loss
	Revenue from contracts with customers
	Operating lease income									2,748,356
	Total cash inflow from leases									2,748,356

	Administrative expense
	Expense relating to leases of low-value assets and short-term leases									(369,371)
	Depreciation									(4,281,910)

	Net finance costs
	Interest expense on lease liabilities									(769,723)

	Total cash outflow from lease liabilities
	Principal payments for finance lease liabilities									(2,349,649)
	Interest payments for lease liabilities									(769,723)
	Total cash outflow from leases									(3,119,372)

In 2024 the Group incurred expenses for lease agreements which did not qualify for recognition of Right-of-use assets in total amount of EUR 369 371.

The cost relating to variable lease payments that do not depend on an index or a rate amounted to EUR nil for the year ended December 31, 2024. There were no leases with residual value guarantees or leases not yet commenced to which the Group is committed.

23. Loans and advances to customers


	Non-Current	Current	Non-Current	Current
Loans and advances to customers, net	31.12.2024	31.12.2024	31.12.2023	31.12.2023
	EUR	EUR	EUR	EUR
			(restated)	(restated)


Loans and advances to customers (secured)	140,830,463	110,245,433	123,487,542	89,282,439
Impairment allowance for secured loans	(6,579,988)	(30,695,254)	(4,853,057)	(27,770,540)
Loans and advances to customers (unsecured)	61,376,766	123,096,365	43,858,190	118,615,693
Impairment allowance for unsecured loans	(5,785,923)	(52,627,768)	(6,830,011)	(52,099,017)
Accrued interest and handling fee	-	29,718,909	-	31,615,709
Fees paid and received upon loan disbursement	(191,735)	(221,258)	(808,211)	(1,294,582)
	189,649,583	179,516,427	154,854,453	158,349,702

The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances.


	2024					2023
Loans and advances to customers (unsecured)	Stage 1		Stage 2	Stage 3	TOTAL	TOTAL
Loans and advances to customers (unsecured)		EUR	EUR	EUR	EUR	EUR


Not past due		131,156,213	115,276	576,297	131,847,786	106,193,377
Days past due up to 30 days		10,279,829	999,409	391,596	11,670,834	9,408,556
Days past due up to 60 days		801,770	3,742,020	225,055	4,768,845	3,913,017
Days past due over 60 days		-	2,290,288	48,564,289	50,854,577	52,390,489
	TOTAL, GROSS:	142,237,812	7,146,993	49,757,237	199,142,042	171,905,439


	2024					2023
Loans and advances to customers (secured)	Stage 1		Stage 2	Stage 3	TOTAL	TOTAL
Loans and advances to customers (secured)		EUR	EUR	EUR	EUR	EUR


Not past due		167,526,641	9,592,655	294,128	177,413,424	148,996,364
Days past due up to 30 days		30,130,370	12,963,603	421,386	43,515,359	43,252,083
Days past due up to 60 days		-	3,090,518	3,619,853	6,710,371	8,950,523
Days past due over 60 days		-	-	38,486,740	38,486,740	33,755,164
	TOTAL, GROSS:	197,657,011	25,646,776	42,822,107	266,125,894	234,954,134

An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to loans and advances to customers are, as follows:


Loans and advances to customers (unsecured)	Stage 1	Stage 2	Stage 3	Total
Loans and advances to customers (unsecured)	EUR	EUR	EUR	EUR


Balance at 1 January 2024	114,903,724	5,964,421	51,037,294	171,905,439
Transfer to Stage 1	514,702	(386,365)	(128,337)	-
Transfer to Stage 2	(1,893,321)	1,920,527	(27,206)	-
Transfer to Stage 3	(9,630,237)	(2,316,254)	11,946,491	-
New financial assets acquired	94,253,688	4,897,338	10,317,528	109,468,554
Receivables settled	(56,049,451)	(1,441,885)	(4,915,579)	(62,406,915)
Receivables written off	(701,685)	(1,298,531)	(5,874,765)	(7,874,981)
Receivables sold	(2,912,530)	(738,355)	(13,585,920)	(17,236,805)
Receivables partially settled	916,794	434,287	800,831	2,151,912
Currency conversion effect	2,836,128	111,810	186,900	3,134,838
Balance at 31 December 2024	142,237,812	7,146,993	49,757,237	199,142,042

23. Loans and advances to customers (continued)


Impairment allowance (unsecured)	Stage 1	Stage 2	Stage 3	Total
Impairment allowance (unsecured)	EUR	EUR	EUR	EUR


Balance at 1 January 2024	8,853,112	2,958,314	47,117,602	58,929,028
Transfer to Stage 1	199,649	(144,612)	(55,037)	-
Transfer to Stage 2	(266,681)	280,505	(13,824)	-
Transfer to Stage 3	(1,906,392)	(1,303,713)	3,210,105	-
Impairment for new financial assets acquired	7,008,872	2,595,353	7,716,468	17,320,693
Reversed impairment for settled receivables	(3,217,187)	(381,507)	(643,243)	(4,241,937)
Reversed impairment for written off receivables	(724,499)	(1,299,040)	(8,044,823)	(10,068,362)
Reversed impairment for sold receivables	(310,019)	(698,953)	(11,919,426)	(12,928,398)
Net remeasurement of loss allowance	337,146	823,906	7,817,809	8,978,861
Currency conversion effect	209,923	60,722	153,161	423,806
Balance at 31 December 2024	10,183,924	2,890,975	45,338,792	58,413,691
Change in impairment excluding impact from foreign exchange conversion	1,120,889	(128,061)	(1,931,971)	(939,143)


Loans and advances to customers (secured)	Stage 1	Stage 2	Stage 3	Total
Loans and advances to customers (secured)	EUR	EUR	EUR	EUR


Balance at 1 January	166,808,290	28,675,566	39,470,278	234,954,134
Transfer to Stage 1	7,404,476	(6,686,966)	(717,510)	-
Transfer to Stage 2	(11,612,757)	12,382,156	(769,399)	-
Transfer to Stage 3	(18,469,237)	(11,480,327)	29,949,564	-
New financial assets acquired	140,333,923	15,101,147	18,831,029	174,266,099
Receivables settled	(35,530,530)	(2,768,040)	(1,623,115)	(39,921,685)
Receivables written off	(1,005,670)	(1,051,167)	(13,414,904)	(15,471,741)
Receivables sold	(1,405,495)	(769,385)	(5,264,588)	(7,439,468)
Receivables partially settled	(60,384,288)	(11,731,852)	(28,746,709)	(100,862,849)
Currency conversion effect	11,518,299	3,975,644	5,107,461	20,601,404
Balance at 31 December	197,657,011	25,646,776	42,822,107	266,125,894


Impairment allowance (secured)	Stage 1	Stage 2	Stage 3	Total
Impairment allowance (secured)	EUR	EUR	EUR	EUR


Balance at 1 January	4,770,950	4,001,301	23,851,346	32,623,597
Transfer to Stage 1	1,075,974	(843,215)	(232,759)	-
Transfer to Stage 2	(533,439)	751,175	(217,736)	-
Transfer to Stage 3	(899,616)	(1,788,356)	2,687,972	-
Impairment for new financial assets acquired	4,048,393	2,169,854	11,042,672	17,260,919
Reversed impairment for settled receivables	(506,771)	(170,930)	(459,864)	(1,137,565)
Reversed impairment for written off receivables	(868,031)	(1,034,337)	(13,145,715)	(15,048,083)
Reversed impairment for sold receivables	(364,049)	(392,958)	(3,650,926)	(4,407,933)
Net remeasurement of loss allowance	(1,668,122)	396,136	5,196,747	3,924,761
Currency conversion effect	501,787	552,227	3,005,532	4,059,546
Balance at 31 December	5,557,076	3,640,897	28,077,269	37,275,242
Change in impairment excluding impact from foreign exchange conversion	284,339	(912,631)	1,220,391	592,099

* - Amounts presented as changes in loans and advances to customers and impairment allowance due to transfer among stages include only movement of opening balances as at 1 January. Information about transfers among stages does not include new financial assets acquired and impairment calculated during the year.

24. Loans to associated companies


Non current	Interest rate per annum (%)	Maturity	31.12.2024		31.12.2023
Non current	Interest rate per annum (%)	Maturity		EUR		EUR


Loans to associated companies (Spaceship SIA)	10%	31/01/2027		3,253,724	-
			TOTAL:	3,253,724	-


Current	31.12.2024		31.12.2023
Current		EUR		EUR


Accrued interest		54,455	-
	TOTAL:	54,455	-

The Group has recognised the loan to its former subsidiary as a result of subsidiary's reorganization and becoming an equity accounted investee. The loan is colletarised with all assets of the entity.

An analysis of Loans to related parties staging and the corresponding ECL allowances at the year end are as follows:


	31.12.2024							Stage 1	Stage 2	Stage 3	Total


Loans to associated companies (Spaceship SIA)	3,253,724	-	-	3,253,724
Accrued interest	54,455	-	-	54,455
Total	3,308,179	-	-	3,308,179
Total ECL calculated	-	-	-	-

25. Equity‑accounted investees


Interest rate	Maturity	31.12.2024		31.12.2023
Interest rate	Maturity		EUR		EUR


Investments in associates		1,238,003	580,714
	TOTAL:	1,238,003	580,714

In September 2019 the Group sold 51% of its previously wholly owned investment in its subsidiary Primero Finance AS. As a result the Group lost the control over the subsidiary and recognizes this investment in the statement of financial position as equity-accounted investees. During 2021 the Group established a new holding company - Primero Holding AS together with majority shareholder of Primero Finance AS. Group's shareholding also is 49% in the new entity. At the same time ownership of Primero Finance AS was transferred to Primero Holding AS. Through 49% shareholding in Primero Holding AS, the Group continues to have investment in Primero Finance AS at the same level. Also during 2021 Primero Holding AS established a new company in Lithuania - Primero Finance UAB and plans to expand its activities in this market. In 2022 Primero Holding AS also established a subsidiary 'Primero SV1 OU' and also will expand its activities in Estonia.

OX Drive (Spaceship SIA), Eleving Group’s electric car-sharing business, and Carguru (Slyfox SIA), the frontrunners of car-sharing services in Latvia, have combined their operations, with Eleving Group converting its previous majority stake in Spaceship SIA into a minority equity holding in the joint venture, which now operates under the Carguru brand in September 2024. This merger elevates their market position with a robust fleet of over 420 vehicles, making them one of the leading players in the Latvian car-sharing space. Eleving Group now holds 36.24% of the combined entity.

25. Equity‑accounted investees (continued)

Further information on entities performance disclosed below:

31.12.2024 (unaudited)


				Interest in associate equity	Net value according to equity method
		Share capital
Name of the company	Country	Share capital	Total Equity
Name of the company	Country	EUR	EUR	%	EUR


Primero Holding AS (Latvia)	Latvia	2,550,000	573,869	49	286,275
SlyFox SIA (Latvia)	Latvia	1,691,687	2,626,181	36.24	951,728

31.12.2023 (unaudited)


				Interest in associate equity	Net value according to equity method
		Share capital
Name of the company	Country	Share capital	Total Equity
Name of the company	Country	EUR	EUR	%	EUR
Primero Holding AS (Latvia)	Latvia	2,150,000	1,642,011	49	580,714


Changes in investments in associate	2024		2023
Changes in investments in associate		EUR		EUR


Balance as at 1 January	580,714	420,622
Increase in share capital	1,415,573	784,000
Income/(loss) from associates accounted under equity method	(758,284)	(623,908)
Balance as at 31 December	1,238,003	580,714


Consolidated statement of profit and loss of associates (unaudited)	2024	2023
	EUR	EUR


Interest revenue	4,702,101	3,518,858
Interest expense	(15,268)	(58,269)
Net interest income	4,686,833	3,460,589
Fee and commission income	947,652	26,027
Revenue from leases	4,868,133	-
Impairment expense	(611,121)	(741,965)
Net loss from de-recognition of financial assets measured at amortized cost	(1,327,628)	(583,487)
Selling expense	(166,094)	(281,298)
Administrative expense	(4,566,840)	(1,163,099)
Other operating income	(222,465)	197,485
Other operating expense	(5,342,375)	(2,176,750)
Profit before tax	(1,733,905)	(1,262,498)
Corporate income tax	(6,078)	(10,155)
Deferred income tax	-	(628)
Net profit	(1,739,983)	(1,273,281)

Consolidated statement of financial position at year end of associates


31.12.2024		31.12.2023
EUR		EUR
	(unaudited)		(unaudited)


ASSETS
Other intangible assets	1,124,737	11,897
Right-of-use assets	4,494	5,877
Property, plant and equipment	7,624,628	990
Loans and advances to customers	22,219,629	17,410,021
TOTAL NON-CURRENT ASSETS	30,973,488	17,428,785

Loans and advances to customers	6,545,860	9,806,952
Stock	413,168	-
Prepaid expense	519,087	67,820
Trade receivables	198,334	260,988
Other receivables	1,125,330	102,841
Cash and cash equivalents	492,607	2,037,451
Assets held for sale	10,712	77,103
TOTAL CURRENT ASSETS	9,305,098	12,353,155
TOTAL ASSETS	40,278,586	29,781,940



	EQUITY


Share capital	5,782,529	2,150,000
Retained earnings/(losses)	(2,582,479)	(507,989)
brought forward	(842,496)	765,292
for the period	(1,739,983)	(1,273,281)
TOTAL EQUITY	3,200,050	1,642,011

LIABILITIES
Non-current liabilities
Borrowings	34,282,237	26,814,699
Total non-current liabilities	34,282,237	26,814,699

Current liabilities
Borrowings	1,362,102	53,787
Trade and other payables	693,437	1,048,317
Taxes payable	138,736	33,675
Other liabilities	430,459	55,043
Accrued liabilities	171,565	134,408
Total current liabilities	2,796,299	1,325,230
TOTAL LIABILITIES	37,078,536	28,139,929
TOTAL EQUITY AND LIABILITIES	40,278,586	29,781,940

26. Finished goods and goods for resale


31.12.2024		31.12.2023
	EUR		EUR


Advance payments to vehicle dealerships		2,406,828	2,517,439
Acquired vehicles for purpose of selling them to customers		512,012	2,220,088
Other inventory		258,934	377,779
Impairment allowance		(725,168)	(297,207)
	TOTAL:	2,452,606	4,818,099

Income and expenses from sale of vehicles and other goods during the reporting year were EUR 7 074 452 and EUR 6 559 224 respectively.
(2023: EUR 1 936 451 and EUR 1 789 166 respectively. Note 11).

27. Prepaid expense


31.12.2024		31.12.2023
	EUR		EUR


Advances paid for services		607,623	647,299
Prepaid insurance expenses		630,633	557,675
Prepaid Mintos service fee		1,667	1,667
Other prepaid expenses		3,114,008	1,918,103
	TOTAL:	4,353,931	3,124,744

28. Trade receivables


31.12.2024		31.12.2023
	EUR		EUR


Receivables for ceased financial assets		2,037,237	1,190,064
Receivables for rent services		197,874	610,249
Receivables for provided management services		76,387	424,589
Receivables for insurance services		112,879	92,840
Receivables for other services provided		304,086	184,801
Impairment allowance		(563,623)	(895,773)
	TOTAL:	2,164,840	1,606,770

An analysis of trade receivables staging and the corresponding ECL allowances at the year end are as follows:


	31.12.2024						Current	1-30 DPD	31-60 DPD	>60 DPD	Total


Receivables for ceased financial assets	-	-	-	2,037,237	2,037,237
Receivables for rent services	24,450	25,289	2,207	145,928	197,874
Receivables for provided management services	76,387	-	-	-	76,387
Receivables for insurance services	112,879	-	-	-	112,879
Receivables for other services provided	304,086	-	-	-	304,086
Total	517,802	25,289	2,207	2,183,165	2,728,463
Total ECL calculated	(563,623)	-	-	-	(563,623)


	31.12.2023						Current	1-30 DPD	31-60 DPD	>60 DPD	Total


Receivables for ceased financial assets	-	-	-	1,190,064	1,190,064
Receivables for rent services	61,258	44,174	2,833	501,984	610,249
Receivables for provided management services	424,589	-	-	-	424,589
Receivables for insurance services	92,840	-	-	-	92,840
Receivables for other services provided	184,801	-	-	-	184,801
Total	763,488	44,174	2,833	1,692,048	2,502,543
Total ECL calculated	(651)	(8,652)	(1,069)	(885,401)	(895,773)

The Group does not have contract assets and contract liabilities at 31.12.2024 (EUR 0 at 31.12.2023).

29. Other receivables


31.12.2024		31.12.2023
	EUR		EUR


CIT paid in advance		3,792,023	1,610,554
Currency hedging deposits*		1,010,684	-
Disputed tax audit measurement in Georgia**		932,225	911,322
Receivables for payments received from customers through online payment systems		720,349	320,394
Security deposit for office lease (more information in Note 22).		538,758	358,706
Overpaid VAT		500,822	566,688
Receivables from P2P platform for attracted funding		318,882	1,016,629
Advance payments for other taxes		215,158	287,472
Accrued income from currency hedging transactions***		174,563	1,960,166
Advances to employees		9,105	34,454
Other debtors		706,903	1,376,598
Impairment allowance		(179,103)	(175,307)
	TOTAL:	8,740,369	8,267,676

29. Other receivables (continued)

* - In order to establish contractual relationship with currency hedging partners the Group must reserve certain amounts as deposits with partners before concluding the transactions. Such deposits are disclosed as other receivables in these financial statements.

** - The Georgian tax administration has initiated a transfer pricing audit for Mogo LLC (Georgia). The audit covers the financial years 2016, 2017 and 2018. Additional audit has been initiated for financial years 2019, 2020 and 2021. Audit decisions have been issued for respective year. The Georgian tax administration has challenged that interest rate applied by Eleving Group S.A. on loan issued to Mogo LLC complies with arm’s lengths principle. According to the decisions additional tax amount of EUR 932 225 has been assessed. The amount has been withheld by the Georgian tax administration from a tax overpayment of Mogo LLC, and part of the amount has been transferred to the Georgian state budget by Mogo LLC.

Mogo LLC has appealed the decisions.

The tax audit decisions for have been appealed within Tbilisi City Court.

Group’s management has made a decision to apply for a mutual agreement procedure according to the double tax treaty concluded between Georgia and Luxembourg. In 2022 the Group has submitted the application within the Luxembourg tax administration to initiate mutual agreement procedure. The tax administration is assessing the application.

The management of the Group considers that the interest rate applied by Eleving Group S.A. on loans issued to related parties fully complies with the arm’s length principle. The applied interest rate is justified by transfer pricing policies held by the Group. The management of the Group considers that the approach of the Georgian tax administration does not comply with basic loan pricing principles and international guidelines. In order to determine the market interest rate for the Eleving Group S.A. loan issued to the Mogo LLC, Georgian tax administration has used coupon rate of bonds issued by credit institutions as a comparable source. The coupon rates of such bonds are not comparable as represents lower risk market comparing with that where the Group operates. Additionally, when issuing the decision Georgian tax administration has not considered borrowing costs of Eleving Group S.A. The interest rate applied by the Georgian tax administration in the decisions is significantly lower than the borrowing costs of Eleving Group S.A.

The Group is in a position to use all available local and international measures to justify its transfer pricing policies and to achieve the result that the decisions are fully cancelled. According to management’s best estimate no significant economical outflows in relation to the transfer pricing audit is expected in the future as the possibility of such has been assessed as remote.

The Group management expects to fully recover paid tax.

*** - The Group enters into currency exchange transactions where it tries to limit its foreign currency rate fluctuation loss. The transaction requires the Group to reserve the a cash deposit with its currency transaction partners. At year end the Group recognizes accrued income based on year end currency rates versus agreed currency transaction rates and recognizes income if the estimated result is expected to be profitable.

30. Cash and cash equivalents


31.12.2024		31.12.2023
	EUR		EUR


Cash at bank		33,414,949	26,754,625
Cash on hand*		1,046,144	715,843
	TOTAL:	34,461,093	27,470,468

* - The Group provides the possibility to its customers to pay their monthly receivables in cash, therefore it holds cash on hand at period end.

An analysis of cash and cash equivalent staging and the corresponding ECL allowances at the year end are as follows:


31.12.2024	Stage 1	Stage 2	Stage 3	Total
	EUR	EUR	EUR	EUR


Cash at bank	33,414,949	-	-	33,414,949
Cash on hand	1,046,144	-	-	1,046,144
Total	34,461,093	-	-	34,461,093
Total ECL calculated	-	-	-	-


31.12.2023	Stage 1	Stage 2	Stage 3	Total
	EUR	EUR	EUR	EUR


Cash at bank	26,754,625	-	-	26,754,625
Cash on hand	715,843	-	-	715,843
Total	27,470,468	-	-	27,470,468
Total ECL calculated	-	-	-	-

The Group has not calculated an ECL allowance for cash and cash equivalents on the basis that placements with banks are of short term nature and the lifetime of these assets under IFRS 9 is so short that the low probability of default would result in immaterial ECL amounts (2023: EUR 0).

The Group cooperates with banks with credit ratings no less than BBB-.

The Group also does not keep large amounts of funds in one specific bank to limit concentration risk and high exposure to small amount of banks.

31. Disposal groups held for sale

In latter part of 2021, management committed to a plan to sell parts of its vehicle finance business operations in Balkan countries and liquidate subsidiary in Bosnia&Herzegovina. Accordingly, several entities were presented as a disposal group held for sale.
Also in 2024 the Group has sold its subsidiaries in Belarus, therefore respective entities are disclosed as disposal groups in these consolidated financial statements.

As at 31 December 2023 following companies were classified as held for sale or under liquidation and were fully disposed from the Group in 2024:

- Mogo Leasing d.o.o., Bosnia&Herzegovina (liquidated)

- Rocket Leasing OOO, Belarus (liquidated)

- Autotrade OOO, Belarus (sold)

- MOGO Kredit LLC, Belarus (sold)


Assets and liabilities of disposal groups held for sale	31.12.2024	31.12.2023
	EUR	EUR


ASSETS
Mogo Leasing d.o.o., Bosnia&Herzegovina	-	35,172
Rocket Leasing OOO, Belarus	-	856
Autotrade OOO, Belarus	-	2,464
MOGO Kredit LLC, Belarus	-	9,518,371
TOTAL ASSETS OF DISPOSAL GROUPS HELD FOR SALE	-	9,556,863

LIABILITIES
Mogo Leasing d.o.o., Bosnia&Herzegovina	-	4,086
Rocket Leasing OOO, Belarus	-	382
Autotrade OOO, Belarus	-	110
MOGO Kredit LLC, Belarus	-	2,040,426
TOTAL LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS HELD FOR SALE	-	2,045,004

32. Assets held for sale


Other assets held for sale	31.12.2024	31.12.2023
Other assets held for sale	EUR	EUR


Repossessed collateral (gross)	1,287,988	745,910
Impairment allowance	(426,793)	(293,855)
	861,195	452,055


Changes in other assets held for sale		Net changes during the year
Changes in other assets held for sale	31.12.2023	Net changes during the year	31.12.2024


Repossessed collateral (net)		452,055	409,140	861,195
	TOTAL:	452,055	409,140	861,195

Repossessed collaterals are vehicles taken over by the Group in case of default by the Group's clients on the related loan agreements. After the default of the client, the Group has the right to repossess the vehicle and sell it to third parties. The Group does not have the right to repossess, sell or pledge the vehicle in the absence of default by Group's clients. The Group usually sells the repossessed vehicles within 90 days after repossession. There are no balances left unsold from previous reporting period.

33. Share capital, share premium, treasury shares and reserves

Share capital

On 16 October 2024, Eleving Group S.A. Successfully completed the initial public offering (IPO) and shares of the Company have become traded in Nasdaq Riga Baltic Main List and on the Frankfurt Stock Exchange’s Prime Standard. During IPO the Company issued 17 058 824 new shares with par value of EUR 0.01 each.

The subscribed share capital of the Group amounts to EUR 1 171 088 and is divided into 117 108 824 shares fully paid up.

The movements on the Share capital caption during the year are as follows:


	Share capital EUR		Number of regular Shares	Total number of Shares


Opening balance as at 1 January 2023		1,000,500	100,050,000	100,050,000
Subscriptions		-	-	-
Redemptions		-	-	-


	Closing balance as at 31 December 2023						1,000,500	100,050,000		100,050,000


Opening balance as at 1 January 2024	1,000,500	100,050,000	100,050,000
Subscriptions	170,588	17,058,824	17,058,824
Redemptions	-	-	-


	Closing balance as at 31 December 2024						1,171,088	117,108,824		117,108,824

Share premium


	As a result of successful IPO the Group has attracted additional equity funding in form of share premium which is comprised as follows:


	Number of shares issued in IPO										17,058,824
	Share price at the end of subscription period; EUR										1.70
	Proceeds from shares issued; EUR										29,000,001
	Par value of new shares; EUR										(170,588)
	Costs related to IPO; EUR										(3,362,379)
	Share premium										25,467,034

Treasury shares

During 30 days after IPO the Group performed purchase of its own share as part of share price stabilisation process. As a result the Group purchased in total 689 558 shares for total amount of EUR 1 146 772 (on average around EUR 1.663 per share).

Earnings per share


Continued operations	Discontinued operations		Continued operations	Discontinued operations
Continued operations	Discontinued operations	Total	Continued operations	Discontinued operations	Total
2024	2024	2024	2023	2023	2023
EUR	EUR	EUR	EUR	EUR	EUR


Profit for the year	28,803,716	768,112	29,571,828	21,916,100	2,538,954	24,455,054
Number of shares	117,108,824	117,108,824	117,108,824	100,050,000	100,050,000	100,050,000
Earnings per share	0.25	0.01	0.25	0.22	0.03	0.24
Profit attributable to equity holders of the Parent			23,502,987			20,098,665
Earnings per share attributable to equity holders of the Parent			0.20			0.20

Dividends

During 2024 the Group paid out dividends to equity holders of the Parent company for total amount of EUR 9 020 262. Amount of paid dividends per share was EUR 0.09.

Foreign currency translation reserve

As explained in Note 2, foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

Reserves


31.12.2024		31.12.2023
	EUR		EUR


Mandatory reserves in TIGO Finance DOOEL Skopje (North Macedonia)**		2,092,386	1,938,924
Reserve in Eleving Finance AS*		1,827,058	1,927,058
Mandatory reserve in Renti LT UAB (Lithuania)**		353,689	-
Mandatory reserve in OCN Sebo Credit SRL (Moldova)**		258,187	258,187
Mandatory reserve in Eleving Group S.A. (Luxembourg)**		100,050	100,050
Mogo IFN SA (Romania)**		52,940	52,940
Mandatory reserve in Mogo Loans SRL (Moldova)**		4,733	4,733
Mandatory reserve in Mogo LT UAB (Lithuania)**		2,897	2,897
Mandatory reserve in Next Fin LLC (Ukraine)**		-	2,842
	TOTAL:	4,691,940	4,287,631

* - Reserve in Eleving Finance AS consists of 1 827 058 EUR. It was obtained during the integration of EC Finance Group SIA into the Groups equity. Reserve was reduced during financial year as a result of increase of share capital of respective subsidiary by using this reserve.

** - further information disclosed in Note 2.

34. Provisions


Non-current	31.12.2024		31.12.2023
Non-current		EUR		EUR


Provision for VAT liabilities in Latvia		133,044	123,798
Provision for taxes and duties in Latvia		41,736	33,518
	TOTAL:	174,780	157,316


Changes in provisions		Additional provisions recognized	Unused provisions reversed	Provisions used	Unwinding of discount

	01.01.2024					31.12.2024


Provision for VAT liabilities in Latvia	123,798	-	-	9,246	-	133,044
Provision for taxes and duties in Latvia	33,518	8,218	-	-	-	41,736
	157,316	8,218	-	9,246	-	174,780

35. Borrowings

Non-current


Subordinated borrowings	Interest rate per annum (%)	Maturity
			31.12.2024		31.12.2023
				EUR		EUR


Eleving Group S.A. subordinated bonds nominal value1)	12%+6m Euribor
		29/12/2031	-	16,850,000
Bonds acquisition costs			-	(387,647)
		TOTAL:	-	16,462,353


Bonds	Interest rate per annum (%)	Maturity
			31.12.2024		31.12.2023
				EUR		EUR


Eleving Group S.A. bonds nominal value2)	9.5%	18.10.2026	144,991,000	144,916,000
Eleving Group S.A. bonds nominal value3)	13%	31/10/2028	50,000,000	46,667,200
Bond additional interest accrual			-	171,461
Bonds acquisition costs			(4,392,355)	(5,538,601)
		TOTAL:	190,598,645	186,216,060
Other borrowings
Long term loan from banks4)	3.1% - 20%	up to December 2033	5,486,441	3,054,777
Long term loan from fund in Romania5)	10% -12%	31/12/2028	10,000,000	-
Lease liabilities for rent of premises6)	2%-12%	up to 10 years	6,300,511	6,466,463
Lease liabilities for rent of vehicles6)	2%-12%	up to 3 years	504,570	780,696
Financing received from P2P investors7)	6% - 13.55%	up to December 2031	30,191,629	21,077,011
Long term borrowings in Kenya8)	9.5%-15.5%	21/06/2027	6,739,370	6,302,336
Long term loans from non related parties in Botswana and Namibia9)	13.25%-18.75%	up to December 2028	4,343,979	-

Long term borrowings in Albania12)	13.5%	15/04/2027	3,056,546	-
Long term loans from non related parties in Luxembourg10)	12%+6M EURIBOR	up to August 2027	2,300,000	-

Other borrowings11)	17%-22.5%	up to August 2027	8,697,983	2,198,622
Loan acquisition costs			(656,835)	(151,824)
		TOTAL:	76,964,194	39,728,081

	TOTAL NON CURRENT BORROWINGS:		267,562,839	242,406,494

Current


Other borrowings	Interest rate per annum (%)	Maturity
			31.12.2024		31.12.2023
				EUR		EUR


Short term loans from banks4)	3.1% - 20%	up to December 2025	3,404,266	3,029,560
Accrued interest for loans from banks			149,782	15,906
Lease liabilities for rent of premises6)	2%-12%	up to December 2025	4,768,360	3,763,479
Lease liabilities for rent of vehicles6)	2%-12%	up to December 2025	299,621	790,450
Financing received from P2P investors7)	6% - 13.55%	up to December 2025	29,224,027	42,798,405
Accrued interest for financing received from P2P investors			1,288,764	312,643
Short term loans from non related parties in Botswana and Namibia9)	13.25%-18.75%	up to December 2025	7,967,087	12,328,261

Accrued interest for loans from non related parties			293,826	264,992
Short term loans from related parties	14%	up to December 2025	1,755,321	100,000
Accrued interest for short term loans from related parties			14,631	-
Other borrowings11)	17%-22.5%	up to December 2025	18,010,667	11,244,485
Accrued interest for borrowings in Kenya			869,624	375,424
Accrued interest for bonds			3,969,616	3,675,421
Mogo AS 30m bonds nominal value			-	17,481,000
		TOTAL:	72,015,592	96,180,026

35. Borrowings (continued)

1) On 29 December 2021 Eleving Group S.A. registered with the Latvian Central Depository a bond facility through which it can raise up to EUR 25 million (XS2427362491). The notes are issued at par, have a maturity at 29 of December, 2031 and carry a coupon of 12% + 6 month Euribor per annum, paid monthly in arrears. On 7 March 2022 the bonds were listed on the First North unregulated bond market of NASDAQ OMX Baltic. On 2 December 2024 the Group repaid these liabilities prematurely.
As a result of successfully actracting equity funding through IPO process, the Group prematurely repaid its most expensive borrowings, therefore subordinated bonds were paid in 2024.

2) On 18 October 2021, Eleving Group successfully issued a 5-year senior secured corporate bond (XS2393240887), listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange in 2023 for EUR 150 million at par with an annual interest rate of 9.5%. The bond will mature on 18 October 2026.

3) On 31 October 2023, Eleving Group successfully issued a 5-year senior secured corporate bond (DE000A3LL7M4), admitted to trading on Frankfurt Stock Exchange’s and Nasdaq Riga Stock Exchange’s regulated market, for EUR 50 million at par with an annual interest rate of 13%. The bond will mature on 31 October 2028.

4) Loans from banks comprise loans received by:
- Renti UAB from bank in Lithuania. The loans are denominated in EUR currency with an interest rates of 3.1%-3.5% plus 3M EURIBOR.
- MOGO LOANS SMC LIMITED from bank in Uganda. The loans are denominated in local currency with an interest rate of 20%.
- Mogo Armenia from bank in Armenia. The loans are denominated in local currency with an interest rate of 7.5%-14%.
- OCN Sebo Credit SRL from bank in Moldova. The loan is denominated in local currency with an interest rate of 16%.
- Kredo Finance SHPK (Albania) from Union Bank JSC (Albania) in amount of ALL 150 million and from Tirana Bank JSC (Albania) in the amount of ALL 120 million and interest rate of 10%.

5) At the end of 2023, Mogo IFN signed a new financing agreement with ACP Credit, a leader on the Central European lending market, in order to contract a credit facility totaling EUR 10 million, which was successfully disbursed at the beginning of January 2024. The loan matures within 5 years from the date of disbursement, with variable interest rate and quarterly interest payment.

6) Group has entered into several lease agreements for office premises and branches as well as several vehicle rent agreements, which are accounted under IFRS 16.

7) Attracted funding from P2P platform non-current/ current split is aligned with the related non-current/ current split of the loan agreement which is assigned to investors through the P2P platform. Funds are transferred to Group's bank accounts once per week.

8) On 21 June 2023 Mogo Auto Limited (Kenya) has attracted from VERDANT CAPITAL HYBRID FUND I GMBH & CO. a USD 7 million loan facility consisting of USD 5.5 million senior secured tranche and USD 1.5 million unsecured subordinated tranche. The senior secured tranche has an interest rate of 9.5% + 3m SOFR and the unsecured subordinated tranche of 15.5% + 3m SOFR. The loan facility matures on the fourth anniversary of the agreement.

9) Expresscredit Proprietary Ltd, based in Botswana, has borrowed funds from unrelated non-financial institutions and the Mintos Marketplace AS peer-to-peer lending platform.
- Loans from unrelated parties have interest rates ranging from 15% to 17.5% per annum, backed by long-standing relationships.
- Borrowings from Mintos are secured by the Company’s customer loans and offer interest rates up to 14.0% per annum as of 31 December 2024. Express Credit Cash Advance (Proprietary) Limited, based in Namibia, has borrowed funds from unrelated non-financial institutions, with interest rates ranging from 13.25% to 18.75% per annum.

10) As of the reporting date, the Parent company's total other long term borrowings from non related parties amounted to EUR 2.3 million. Of this amount, EUR 2.0 million has been borrowed from a non-related corporate entity, while the remaining EUR 0.3 million was provided by private individuals. All borrowings bear an annual interest rate of 12% plus the applicable 6-month EURIBOR rate. The borrowings mature in August 2027.

11) In June 2022, Mogo Auto Limited entered into an agreement for short term note program with Dry Associates Limited, where the later was to manage the placement of funds. The average rate of interest is 15.5% for notes issued in local currency (KES), while EUR and USD notes are issued at 8.3% and 9.3% respectively.

12) ECFA JSC (Albania) Private bond with American Bank of Investment JSC in amount of 300m ALL and interest rate of 13.5%. The bond will mature on 15 April 2027.


Subordinated borrowings	01.01.2024	Cash flows	Foreign exchange effect	Other	31.12.2024


Eleving Group S.A. subordinated bonds nominal value	16,850,000	(16,850,000)	-	-	-
TOTAL SUBORDINATED BORROWINGS PRINCIPAL:	16,850,000	(16,850,000)	-	-	-


Other borrowings	01.01.2024	Cash flows	Foreign exchange effect	Other	31.12.2024


Bonds nominal value	209,064,200	(14,058,007)	(15,193)	-	194,991,000
Financing received from P2P investors	63,875,416	(5,244,632)	784,872	-	59,415,656
Loans from banks	6,084,337	2,268,593	537,777	-	8,890,707
Long term loan from fund in Romania	-	9,999,074	926	-	10,000,000
Long term loans from non related parties in Luxembourg	-	2,300,000	-	-	2,300,000
Short term loans from related parties	100,000	1,655,321	-	-	1,755,321
Borrowings in Kenya	17,546,821	5,235,854	1,967,362	-	24,750,037
Borrowings in Albania	-	2,979,100	77,446	-	3,056,546
Other borrowings	2,198,622	5,807,965	691,396	-	8,697,983
Short term loans from non related parties in Botswana and Namibia	12,328,261	(328,788)	311,593	-	12,311,066
Lease liabilities	11,801,088	(3,119,372)	271,714	2,919,632	11,873,062
TOTAL OTHER BORROWINGS PRINCIPAL:	322,998,745	7,495,108	4,627,893	2,919,632	338,041,378
TOTAL BORROWINGS PRINCIPAL:	339,848,745	(9,354,892)	4,627,893	2,919,632	338,041,378

Total cash flow of borrowings of EUR -9 354 892 consists of cash inflows EUR 199 164 638, cash outflows of EUR 205 400 158 and payments for lease liabilities in amount of EUR 3 119 372.


Acquisition costs and accrued interest	01.01.2024	Cash flows	Foreign exchange effect	Other*	31.12.2024


Bonds acquisition costs	(5,926,248)	(1,313,699)	(40,886)	2,888,478	(4,392,355)
Loan acquisition costs	(151,824)	(671,022)	(4,871)	170,882	(656,835)
Acquisition costs of borrowings	(6,078,072)	(1,984,721)	(45,757)	3,059,360	(5,049,190)

Accrued interest for loans from non related parties	264,992	(1,618,481)	6,290	1,641,025	293,826
Accrued interest for short term loans from related parties	-	(148,980)	-	163,611	14,631
Accrued interest for financing received from P2P investors	312,643	(3,660,907)	3,773	4,633,255	1,288,764
Accrued interest for short term borrowings in Kenya	375,424	(1,468,183)	69,125	1,893,258	869,624
Additional bond interest accrual	3,846,882	(30,107,476)	2,322	30,227,888	3,969,616
Accrued interest for loan from bank	15,906	(480,935)	9,239	605,572	149,782
TOTAL ACQUISITION COSTS AND ACCRUED INTEREST:	4,815,847	(37,484,962)	90,749	39,164,609	6,586,243

TOTAL BORROWINGS:	338,586,520	(48,824,575)	4,672,885	45,143,601	339,578,431


Subordinated borrowings	01.01.2023	Cash flows	Foreign exchange effect	Other	31.12.2023


Eleving Group S.A. subordinated bonds nominal value	18,956,000	(2,106,000)	-	-	16,850,000
TOTAL SUBORDINATED BORROWINGS PRINCIPAL:	18,956,000	(2,106,000)	-	-	16,850,000

35. Borrowings (continued)


Other borrowings	01.01.2023	Cash flows	Foreign exchange effect	Other*	31.12.2023


Bonds nominal value	178,876,000	30,188,200	-	-	209,064,200
Financing received from P2P investors	67,647,262	(15,266,084)	399,824	11,094,414	63,875,416
Loans from banks	5,495,958	830,421	(242,042)	-	6,084,337
Short term loans from related parties	-	100,000	-	-	100,000
Borrowings in Kenya	7,289,026	13,829,173	(3,571,378)	-	17,546,821
Lease liabilities for acquired rental fleet	2,940,308	(2,939,818)	(490)	-	-
Lease liabilities	10,096,492	(2,855,262)	(768,670)	5,328,528	11,801,088
Short term loans from non related parties in Botswana and Namibia	1,462,811	(14,265,479)	5,112	25,125,817	12,328,261
Other borrowings	198,184	2,318,173	(317,735)	-	2,198,622
TOTAL OTHER BORROWINGS PRINCIPAL:	274,006,041	11,939,324	(4,495,379)	41,548,759	322,998,745
TOTAL BORROWINGS PRINCIPAL:	292,962,041	9,833,324	(4,495,379)	41,548,759	339,848,745

Total cash flow of borrowings of EUR 9 833 324 consists of cash inflows EUR 288 281 493, cash outflows of EUR 275 592 907 and payments for lease liabilities in amount of EUR 2 855 262.


Acquisition costs and accrued interest	01.01.2023	Cash flows	Foreign exchange effect	Other*	31.12.2023


Bonds acquisition costs	(5,310,582)	(2,740,283)	54,123	2,070,494	(5,926,248)
Loan acquisition costs	(131,905)	(175,599)	4,380	151,300	(151,824)
Acquisition costs of borrowings	(5,442,487)	(2,915,882)	58,503	2,221,794	(6,078,072)

Accrued interest for loans from non related parties	32,516	(1,640,802)	(2,997)	1,876,275	264,992
Accrued interest for financing received from P2P investors	489,376	(6,358,270)	17,670	6,163,867	312,643
Accrued interest for short term borrowings in Kenya	188,268	267,847	(80,691)	-	375,424
Additional bond interest accrual	3,017,725	(22,952,765)	-	23,781,922	3,846,882
Accrued interest for loan from bank	60,914	(605,537)	(4,507)	565,036	15,906
TOTAL ACQUISITION COSTS AND ACCRUED INTEREST:	3,788,799	(31,289,527)	(70,525)	32,387,100	4,815,847

TOTAL BORROWINGS:	291,308,353	(24,372,085)	(4,507,401)	76,157,653	338,586,520

* - mainly consists of accrued expenses and other changes in liabilities which are not a result of direct cash flows. In 2023 also contains changes in liability as a result of obtaining EC Finance SIA group.

See Note 42 for additional information about covenants.

36. Prepayments and other payments received from customers


31.12.2024		31.12.2023
	EUR		EUR


Unallocated payments received*		610,693	785,587
Received deposits from customers		250,894	253,587
Overpayments from former customers		34,612	36,926
Advances for sold cars		1,192	2,524
Payments received from ceased receivables		4,662	4,930
	TOTAL:	902,053	1,083,554

* - Unallocated payments are payments received from former clients after contractual terms are ended and payments received which cannot be identified and allocated to a respective loan and advance to customer balance at 31 December 2024.

37. Taxes payable


31.12.2024		31.12.2023
	EUR		EUR


Value added tax*		3,958,304	917,821
Withholding tax		1,645,893	1,271,185
Social security contributions		587,777	503,980
Personal income tax		208,252	227,822
Other taxes		519,571	453,194
	TOTAL:	6,919,797	3,374,002

* - please see Note 15 for more information.

38. Derivative financial liabilities


31.12.2024		31.12.2023
	EUR		EUR


Non-current:
Non-Deliverable Forward (NDF) Hedge		-	-
Current:
Non-Deliverable Forward (NDF) Hedge		5,317,084	-
	TOTAL:	5,317,084	-

The Group has elected to adopt the hedge accounting requirements of IFRS 9 Financial Instruments. The Group enters into hedge relationships where the critical terms of the hedging instrument and the hedged item match, therefore, for the prospective assessment of effectiveness a qualitative assessment is performed. Hedge effectiveness is determined at the origination of the hedging relationship. Quantitative effectiveness tests are performed at each period end to determine the continuing effectiveness of the relationship.

As of 31 December 2024, Non-Deliverable Forward hedge contracts have been concluded by AS Eleving Solis (Latvia) and MOGO LOANS LIMITED (Uganda).

The effect of Non-Deliverable Forward hedge contracts concluded by AS Eleving Solis are as follows on 31 December:


	EUR - KES


	Execution date			07/08/2024
	Notional amount			5,000,000
	Settlement date			07/08/2025
	Carrying amount of derivative			635,328
	Variable component			318,691
	Cost component			316,637


	EUR - UGX


	Execution date			19/01/2024
	Notional amount			15,000,000
	Settlement date			21/01/2025
	Carrying amount of derivative			2,438,093
	Variable component			1,350,111
	Cost component			1,087,982


	EUR - KES


	Execution date			05/11/2024
	Notional amount			5,000,000
	Settlement date			05/05/2025
	Carrying amount of derivative			324,551
	Variable component			244,599
	Cost component			79,952


	EUR - KES


	Execution date			08/11/2024
	Notional amount			5,000,000
	Settlement date			08/05/2025
	Carrying amount of derivative			274,157
	Variable component			197,894
	Cost component			76,263


	TOTAL


	Notional amount			30,000,000
	Carrying amount of derivative			3,672,129
	Variable component			2,111,295
	Cost component			1,560,834

The effect of Non-Deliverable Forward hedge contract concluded by MOGO LOANS LIMITED is as follows on 31 December:


	EUR - UGX


	Execution date			19/01/2024
	Notional amount			10,000,000
	Settlement date			21/01/2025
	Carrying amount of derivative			1,644,955
	Variable component			944,288
	Cost component			700,667

The total effect of Non-Deliverable Forward hedge contracts concluded by Group companies is as follows on 31 December:


	Notional amount			40,000,000
	Carrying amount of derivatives			5,317,084
	Variable component			3,055,583
	Cost component			2,261,501

39. Other liabilities


31.12.2024		31.12.2023
	EUR		EUR


Liabilities against employees for salaries		690,778	664,049
Deferred income		421,097	643,591
Other liabilities		1,256,011	594,752
	TOTAL:	2,367,886	1,902,392

40. Accrued liabilities


31.12.2024		31.12.2023
	EUR		EUR


Accrued unused vacation		2,017,240	1,895,772
Accruals for bonuses		2,027,169	2,174,311
Other accrued liabilities for received services		3,295,642	1,707,414
	TOTAL:	7,340,051	5,777,497

Increase in other accrued liabilities is caused by standard economic activities and overall growth of the Group.

41. Related party disclosures

All ultimate beneficial shareholders and entities controlled or jointly controlled by these individuals or close family members of these individuals are deemed as related parties of the Group. All shareholders have equal rights in making decisions proportional to their share value.

As at 31 December 2024 and 31 December 2023 none of the ultimate beneficial owners individually controls the Group.

All transactions between related parties are performed according to market rates. Receivables and payables incurred are not secured with any kind of pledge.

More detailed information about transactions with related parties is provided in Notes 33 and 35.

Other related parties are entities which are under control or joint control of the shareholders of the Group, but not part of the Group.

The information related to remuneration of the Group`s Management Board and council members is provided in Note 13.

The income and expense items with related parties for 2024 were as follows:


Related party	Shareholder controlled companies		Other related parties
		EUR		EUR


Interest income	116,875	-
Management services provided to associated entities	-	328,915

The income and expense items with related parties for 2023 were as follows:


Related party	Shareholder controlled companies		Other related parties
		EUR		EUR


Interest income	221,079	-
Sale of loan receivables to associated entities	-	1,008,330
Management services provided to associated entities	-	408,422

The receivables and liabilities with related parties as at 31.12.2024 and 31.12.2023 were as follows:


31.12.2024		31.12.2023
	EUR		EUR


Amounts owed by related parties
Loans to associated companies	3,308,179	-
Trade receivables*	81,678	424,589
Total	3,389,857	424,589

Amounts owed to related parties
Payables to associated companies	146,239	275,584
Total	146,239	275,584

* Other short term receivables from related parties contain receivables for provided management services to equity accounted investees.


Movement in amounts owed by related parties	Amounts owed by related parties
Movement in amounts owed by related parties		EUR


	Amounts owed by related parties as of 01 January 2023									3,334,516
	Receivables repaid in period									(2,909,927)
	Amounts owed by related parties as of 31 December 2023									424,589

	Amounts owed by related parties as of 01 January 2024									424,589
	Receivables incurred in period									2,965,268
	Amounts owed by related parties as of 31 December 2024									3,389,857


Movement in amounts owed to related parties	Amounts owed to related parties
Movement in amounts owed to related parties		EUR


	Amounts owed to related parties as of 01 January 2023									444,894
	Change in other payables									(75,041)
	Dividends calculated for shareholders									10,007,731
	Dividends paid to shareholders									(10,102,000)
	Amounts owed to related parties as of 31 December 2023									275,584

	Amounts owed to related parties as of 01 January 2024									275,584
	Change in other payables									(129,345)
	Dividends calculated for shareholders									12,308,146
	Dividends paid to shareholders									(12,308,146)
	Amounts owed to related parties as of 31 December 2024									146,239

42. Commitments and contingencies

Externally imposed regulatory capital requirements

The Group considers both equity capital as well as borrowings a part of its overall capital risk management strategy.

The Group is subject to externally imposed capital requirements in several countries. The main requirements are listed below:

Albania

Acquired license on performing financing activities requires to maintain amount of equity at all times not lower than 10% of the total assets of the entity. Management of the Group monitors and increases the share capital if needed to satisfy this requirement.

Armenia

Acquired license on performing financing activities require:
1) To maintain minimum amount of statutory capital of 150mln AMD;
2) To maintain minimum amount of total capital of 150mln AMD;
3) To maintain minimum ratio of amounts of total capital and risk-weighted assets at 10%.
Management of the Group monitors and increases the share capital if needed to satisfy this requirement.

Romania

Acquired license on performing financing activities require to ensure the level of equity is not less than company's finance receivables portfolio divided 15 times. Management of the Group monitors and increases the share capital or issues subordinated loans l if needed to satisfy this requirement.

42. Commitments and contingencies (continued)

North Macedonia

Acquired license on performing financing activities require to ensure that the loan portfolio limit is set as share capital multiplied by 10.

Moldova

The non-bank credit organization is required to hold and maintain its own capital in relation to the value of the assets at any date in the amount of at least 5%.

Botswana

In terms of Regulation 6 of the Micro-Lending Regulations, any person applying to carry on a business as a micro lender shall have and maintain at all times a minimum financial balance of P20,000 (Twenty Thousand Pula).

Zambia

As at 31st December 2024, the subsidiary in Zambia did not meet the minimum capital requirements as per the Bank of Zambia regulations. On the 19th December 2024, the subsidiary reclassified a portion of its related party loan, an amount of ZMW 43 299 400, to secondary capital as part of its ongoing capital management strategy. This reclassification is subject to approval by the Bank of Zambia. Once approved, the subsidiary's capital position will be strengthened and will reflect an improvement over the figures reported in the local standalone audited financial statements.

Cooperation agreement with P2P platforms

Cooperation agreements with P2P platforms require to maintain positive amount of equity at all times in Albania, Armenia, Estonia, Georgia, Kenya, Latvia, Lithuania, Moldova, North Macedonia, Romania and Botswana. Management of the Group monitors and increases the share capital if needed to satisfy this requirement.

The Group is subject to additional financial covenants relating to its attracted funding through P2P platform. Group is regularly monitoring respective indicators and ensures that covenants are satisfied. The Group is in compliance during the entire reporting period.

Eleving Group S.A. bonds

There are restrictions in the prospectus for the bonds issued on the Frankfurt Stock exchange (ISIN (XS2393240887 and DE000A3LL7M4)). These financial covenants are the following:
(a) the Interest Coverage Ratio for the Relevant Period is at least 1.25;
(b) the Capitalization Ratio for the Relevant Period is at least 15%; and
(c) the Consolidated Net Leverage Ratio for the Relevant Period does not exceed 6.00x.

There are other limitations regarding additional and permitted debt, restricted and permitted payments, permitted loans and securities.

The Group is in compliance with all covenants during the entire reporting period.

Other contingent liabilities and commitments

1) Starting from 14 October 2021 Eleving Group and certain of its Subsidiaries entered into several pledge agreements with TMF Trustee Services GmbH, establishing pledge over shares of those Subsidiaries, pledge over present and future loan receivables of those Subsidiaries, pledge over trademarks of those Subsidiaries, general business pledge over those Subsidiaries, pledge over primary bank accounts if feasible, in order to secure Eleving Group obligations towards bondholders deriving from Eleving Group bonds (ISIN: XS2393240887). Subsequently additional pledgors were added who became material (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) according to terms and conditions of the bonds.

2) Starting from 14 October 2021 Eleving Group as Issuer and certain of its Subsidiaries (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) as Guarantors have entered into a guarantee agreement dated 14 October 2021 (as amended and restated from time to time) according to which the guarantors unconditionally and irrevocably guaranteed by way of an independent payment obligation to each holder of the Eleving Group bonds (ISIN: XS2393240887) the due and punctual payment of principal of, and interest on, and any other amounts payable under the Eleving Group bonds (ISIN: XS2393240887) offering memorandum.

3) On 12 December 2018 the subsidiary in Latvia - mogo AS issued guarantee letters for the benefit of SIA Skanste City (previously SWH Grupa JSC) to secure other Subsidiary Eleving Vehicle Finance JSC (previously Mogo Group JSC) obligations from the secured office space lease agreements concluded on 12 December 2018. According to the guarantee letters the Company undertook to fulfil Eleving Vehicle Finance JSC obligations towards SIA Skanse City if they are overdue on liabilities under the agreements terms. The guarantees expire if the lease agreements are amended, renewed without prior written approval by the Company and is effective for the entire duration of the respective lease agreements. At the beginning of 2020 both lease agreements were amended and the Company provided the new guarantee to secure only obligations of Eleving Vehicle Finance JSC.

4) On 22 July, 2020 O.C.N. Sebo Credit issued guarantee favour of private individual Tamara Paun to secure repayment of the loan issued by Tamara Paun to Rodica Paun. The loan was used to provide a subordinated loan to O.C.N. Sebo Credit.

5) The Group has signed Covenant Agreements with P2P platform companies AS Mintos Marketplace and Mintos Finance OU according to which the Group secures P2P platform's claims towards the subsidiaries if certain subsidiaries cooperating with P2P platform fail to perform their obligations. The claims are limited by amounts borrowed by each subsidiary.

6) The Group has signed Guarantee Agreements with P2P platform companies AS Mintos Marketplace, SIA Mintos Finance No.1 and Mintos Finance Estonia OU according to which the Group secures P2P platform's claims towards the subsidiaries if certain subsidiaries cooperating with P2P platform fail to perform their obligations. The claims are limited by amounts borrowed by each subsidiary.

7) Certain subsidiaries of the Group have entered into a commercial pledge agreements with SIA Mintos Finance No.1 and/or Mintos Finance Estonia OU, in order to secure those Group subsidiary obligations towards AS Mintos Marketplace, SIA Mintos Finance No.1 and Mintos Finance Estonia OU deriving from cooperation agreements entered into between the respective subsidiary and AS Mintos Marketplace, SIA Mintos Finance No.1 and/or Mintos Finance Estonia OU.

8) The Group's subsidiary AS Eleving Vehicle Finance (Latvia) has entered into a put option agreement with Ropat Trust Company Limited according to which AS Eleving Vehicle Finance undertakes to purchase Mogo Auto Limited (Kenya) secured revolving loan notes up to two billion Kenya Shillings in case of default of Mogo Auto Limited under the terms and conditions of the short term notes programme and Mogo Auto Limited (Kenya) secured revolving loan notes up to two billion Kenya Shillings in case of default of Mogo Auto Limited under the terms and conditions of the medium term notes programme.

9) The Group's subsidiary AS Eleving Stella (Latvia) has entered into a guarantee agreement with SIA Citadele Leasing in order to secure SIA Citadele Leasing claims towards AS Renti under several financial leasing agreements entered between AS Renti and SIA Citadele Leasing.

10) The Group's subsidiary Mogo Auto Limited (Kenya) has entered into a deed of assignment and Ropat Trust Company Limited (acting on behalf of the noteholders) in order to secure Mogo Auto Limited (Kenya) liabilities towards the noteholders under the terms and conditions of Mogo Auto Limited (Kenya) secured revolving short term notes and medium term notes programmes.

11) Eleving Group has provided a guarantee to VERDANT CAPITAL HYBRID FUND I GMBH & CO. KG with the aim to secure punctual performance by Mogo Auto Limited (Kenya) of all Mogo Auto Limited (Kenya) obligations under the Finance Documents relating to USD 7,000,000 loan facility provided by VERDANT CAPITAL HYBRID FUND I GMBH & CO.

12) Mogo Auto Limited has entered into an account charge agreement creating a security interest over the accounts of Mogo Auto Limited and a fixed and floating charge agreement creating a security interest over specified receivable assets of Mogo Auto Limitedin order to secure Mogo Auto Limited (Kenya) obligations under the Finance Documents relating to USD 7,000,000 loan facility provided by VERDANT CAPITAL HYBRID FUND I GMBH & CO.

42. Commitments and contingencies (continued)

13) The Group's subsidiary AS Eleving Vehicle Finance (Latvia) has entered into a guarantee agreement with AS Industra Bank according to which AS Eleving Vehicle Finance guarantees SIA Spaceship loan liabilities against AS Industra Bank in the total amount of for 918 825,00 EUR.

14) On 30 March 2023 Express Credit Cash Advance (Proprietary) Limited, registered in Namibia, has entered into Pledge and Cession Agreement (Account Pledge) establishing a pledge over the funds in the bank accounts of Express Credit Cash Advance (proprietary) Limited, and in Cession in Security agreement ceding the rights over Loan book and insurance, in favour of trustees of Private Capital Trust, in order to secure Express Credit Cash Advance (Proprietary) Limited obligations towards Private Capital Trust trustees deriving from Loan Agreement dated 30 March 2023. The Loan Agreement is separated into three tranches. The second tranche was on 23 February 2024, and the third tranche was on 15 March 2024.

15) On 6 May 2022 ExpressCredit (Pty) Limited, registered in Botswana, has signed Cession in Security Agreement No. LVMM/06-07-2021-125 with P2P platform company SIA Mintos Finance No. 8, ceding the rights over loan agreement portfolio (loan agreements entered into between ExpressCredit (Pty) Limited and its customers, book debts and loan receivables) to ensure timely and proper performance of obligations by ExpressCredit (Pty) Limited towards SIA Mintos Finance No. 8 derived from Cooperation Agreement dated 6 May 2022.

16) On 22 December 2021 ExpressCredit (Pty) Limited, registered in Botswana, has entered into Cession in Security agreement with Norsad Finance Limited, ceding the rights over book debts to ensure timely and proper performance of obligations by ExpressCredit (Pty) Limited towards Norsad Finance Limited derived from the Credit Facility Agreement dated 20 December 2020. In addition, with the Credit Facility Agreement simultaneously is also guarantee established by YesCash Group Limited (now - Eleving Consumer Finance Mauritius Ltd) to ensure proper performance of obligations by ExpressCredit (Pty) Limited in favour of Norsad Finance Limited.

17) Starting from 31 October 2023 Eleving Group and certain of its Subsidiaries entered into several pledge agreements with TMF Trustee Services GmbH, establishing pledge over shares of those Subsidiaries, pledge over present and future loan receivables of those Subsidiaries, pledge over trademarks of those Subsidiaries, general business pledge over those Subsidiaries, pledge over primary bank accounts if feasible, in order to secure Eleving Group obligations towards bondholders deriving from Eleving Group bonds (ISIN: DE000A3LL7M4).

18) Starting from 31 October 2023 Eleving Group as Issuer and certain of its Subsidiaries (subsidiaries with net portfolio of more than EUR 7 500 000 and represents at least 3% of the Net Loan Portfolio) as Guarantors have entered into a guarantee agreement dated 31 October 2023 according to which the guarantors unconditionally and irrevocably guaranteed by way of an independent payment obligation to each holder of the Eleving Group bonds (ISIN: DE000A3LL7M4) the due and punctual payment of principal of, and interest on, and any other amounts payable under the Eleving Group bonds (ISIN: DE000A3LL7M4).

19) On 18 December 2023 ACP CREDIT I SCA SICAV-RAIF has made available to MOGO IFN S.A. (Romania) a facility amounting to EUR 10,000,000. The ACP Facility has a 48-month maturity with an amortised loan repayment schedule and carries an interest rate of 11.6% in the first year, 10.8% in second year and 8% + 3m EURIBOR thereafter. The ACP Facility is secured with a movable mortgage on loan receivables and separate bank account of MOGO IFN S.A. (Romania), a commercial pledge over AS Eleving Stella subordinated loan receivables from MOGO IFN S.A. (Romania) and a guarantee from AS Eleving Vehicle Finance.

20) On 18 December 2023 Union Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) concluded a Loan Agreement (Installment Loan), under which the bank made funds available to Kredo amounting to 150'000'000 Albanian Leke. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio for the minimum value of 195'000'000.00 ALL or 130% of the remaining value of the loan according to a specific list of loans attached to the Security Agreement. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement. In addition to the loan portfolio provided by Kredo to the bank as a security, Kredo's majority shareholder AS Eleving Consumer Finance Holding also provided its corporate guarantee to ensure the rights and obligations of Kredo arising out of the Loan Agreement.

21) On 18 December 2023 Tirana Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) and Eleving Group as Guarantor concluded a Loan Agreement (Overdraft Agreement), under which the bank made funds available to Kredo amounting to 120'000'000 Albanian Leke. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio (loans receivables) for the minimum value of 156'000'000.00 ALL or 130% of the loan value. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement. In addition to the loan portfolio (loans receivables) provided by Kredo to the bank as a security, Eleving Group also became a guarantor of rights and obligations of Kredo arising out of the concluded Guarantee Agreement and Loan Agreement.

22) On 29 December 2023, Eleving Group has provided a guarantee in favour of MFX Solutions whereby Eleving Group absolutely, unconditionally and irrevocably guarantees on all transactions of Eleving Group subsidiary AS Eleving Solis makes under ISDA Master Agreement entered into between AS Eleving Solis and MFX Solutions.

23) On 21 February 2024 FI Bank JSC (Albania) and financial company Kredo Finance Shpk (Albania) concluded a Loan Agreement, under which the bank made funds available to Kredo amounting to 100'000'000 Albanian Lek. In order to secure the loan obligations, a security was placed over Kredo's loan portfolio (loans receivables) for the minimum value of 130'000'000.00 ALL or 130% of the loan value. The respective security was registered in the Albanian Pledge Registry according to the provisions stipulated in the Security Agreement.

24) On 1 August 2024, Eleving Group and AS Eleving Solis has provided a letter of guarantee and indemnity in favour of I&M Bank (Kenya) whereby Eleving Group and AS Eleving Solis absolutely, unconditionally and irrevocably guarantees on Mogo Auto Limited (Kenya) debt liabilities towards I&M Bank (Kenya) under the KES 500,000,000 credit facility dted 19 July 2024.

25) On 10 October 2024, Eleving Group has provided professional payment guarantee in favour of Absa Bank Uganda Limited whereby Eleving Group and AS Eleving Solis absolutely, unconditionally and irrevocably guarantees on MOGO Loans (Uganda) debt liabilities towards Absa Bank Uganda Limited under the UGX 19,000,000,000 credit facility dated 25 September 2024.

26) On 2 October 2024, Mogo Loans (Uganda) entered into a specific debenture agreement with Absa Bank Uganda Limited, whereby Mogo Loans (Uganda) provided a debenture over a portion of it's net loan book not voer 60 days past due with minimum collateral cover equivalent to 120% of Absa Bank Uganda Limited debt exposure or UGX 22,800,000,000.

27) On 4 November 2024, Eleving Group has entered into a deed of guarantee and indemnity agreement, whereby Eleving Group agreed to guarantee and indemnity Cambridge Mercantile Corp. (UK) Limited and/or Cambridge Mercantile Risk Management (UK) Ltd. Eleving Consumer Finance Mauritius Limited liabilities under one or more agreement under which Corpay provides certain foreign currency exchange and/or payment services to Eleving Consumer Finance Mauritius Limited.

43. Financial risk management

The risk management function within the Group is carried out in respect of financial risks, operational risks and legal risks. Financial risk comprises market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure to risks stays within these limits. The operational and legal risk management functions are intended to ensure proper functioning of internal policies and procedures, in order to minimize operational and legal risks.

Operational risks

The Group takes on exposure to certain operational risks, which result from general and specific market and industry requirements.

Compliance risk

Compliance risk refers to the risk of losses or business process disruption resulting from inadequate or failed internal processes systems, that have resulted in a breach of applicable law or other regulation currently in place.

43. Financial risk management (continued)

Regulatory risks

Group’s operations are subject to regulation by a variety of consumer protection, financial services and other state authorities in various jurisdictions, including, but not limited to, laws and regulations relating to consumer loans and consumer rights protection, debt collection and personal data processing. Formal licences issued by respective regulators are required in all countries where the Group operates in, except for Lithuania, Georgia, Moldova and Uzbekistan. The Group closely monitors all the changes in regulatory framework for each of the countries it operates in. The Group employs both in-house as well as outsourced legal specialists to assist in addressing any current or future regulatory developments that might have an impact on Group’s business activities.

Regulatory changes in Romania

During 2024, significant regulatory developments took place in Romania, notably the enactment of Law No. 243/2024, which introduced caps on the effective annual interest rates (APR) for certain categories of loans granted by non-banking financial institutions (NBFIs). These changes reflect broader market efforts to enhance consumer protection and transparency in lending practices. The Group has assessed the implications of this new legislation and implemented necessary adjustments to ensure full compliance with the applicable regulatory requirements.

See further information on regulatory matters in Note 42.

Anti-money laundering and Know Your Customer laws compliance risk

The Group is subject to anti-money laundering laws and related compliance obligations in most of the jurisdictions in which it does business. The Group has put in place local anti-money laundering policies in those jurisdictions where it is required under local law to do so and in certain other jurisdictions. As a financial institution, the Group is required to comply with anti-money laundering regulations that are generally less restrictive than those that apply to banks.
As a result, the Group often relies on anti-money laundering and know your customer checks performed by our customers’ banks when such customers open new bank accounts, however Group has implemented further internal policies to minimise these risks. Group has put in place internal control framework to identify and report all suspicious transactions with a combination of IT based solutions and human involvement. Internal policies of the Group typically include customers’ background check against sanctioned lists and other public sources as required by each local law.

Privacy, data protection compliance risk

The Group’s business is subject to a variety of laws and regulations internationally that involve user privacy, data protection, advertising, marketing, disclosures, distribution, electronic contracts and other communications, consumer protection and online payment services. The Group has put in place an internal control framework consisting from a combination of IT based solutions and business procedures that are designed to capture any potential non-compliance matter before it has occurred and to ensure compliance with these requirements.

Market risks

The Group takes on exposure to market risks, which are the risks that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and currency products, all of which are exposed to general and specific market movements and changes in the level of volatility or market rates or prices such as interest rates and foreign exchange rates.

Financial risks

The main financial risks arising from the Group’s financial instruments are foreign currency risk, interest rate risk, liquidity risk, and credit risk.

Foreign currency risk

The Group accepts the currency risk by issuing loans in local currencies and funding local operations mostly with EUR. Further currency risk is managed transaction wise by avoiding unnecessary conversions back and forth to settle payments and invoices in EUR. Also Group is constantly looking for ways to fund local country operations with local currency funds.

The currency risk is defined as the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Group is exposed to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows.

The most significant foreign currency exposure comes from Armenia, Georgia, Moldova, Kenya, Uganda, and Uzbekistan, where Group has evaluated potential hedging options, but due to the costs associated with it, has decided not to pursue hedging strategy for now and assume potential short to mid-term currency fluctuations with retaining potential upside from strengthening in those currencies. The Group has always operated with a forex loss being a legitimate and always present cost item that was adequately priced within each non-EUR country's product portfolio.
It is expected that Group’s exposure to volatile foreign currencies will be continuing to decrease in future with Group’s divestment of several of its subsidiaries. Additionally, the Group has started to proactively manage to foreign currency exposure risk towards USD, since in several of Group’s largest markets local loan portfolios are linked to USD. The proactive management of USD exposure can be observed by forward contract purchases that have started already in 2020 and continued since then.

The U.S. imposed (but currently paused for 90 days) tariffs in early 2025 are a very recent action whose longer-term actual implications are very hard (or virtually impossible) to assess reliably in the mid or longer term. Currently it is virtually impossible to gauge any reasonable near-term outlook both at macroeconomic as well as the Group's levels. However, thr Group remains alert to possible second-order effects on global funding (especially high-yield credit) markets as well as foreign currency markets both of which might impact the Group's future growth plans in the existing and new markets and generally the Group's appetite towards larger portfolios in non-EUR emerging markets.

Assets and liabilities exposed to foreign currencies fluctuation risk as at 31 December 2024:


			Foreign exchange contracts	Net assets exposed to currency risk
Currency		Equity and liabilities
	Assets	Equity and liabilities
	in EUR	in EUR	in EUR	in EUR


ALL (Albania)*	43,946,188	(21,707,150)	-	22,239,037
AMD (Armenia)	19,391,726	(14,090,628)	-	5,301,097
BWP (Botswana)	21,412,065	(20,549,976)	-	862,089
GEL (Georgia)	21,522,843	(21,216,361)	-	306,482
KEL (Kenya)	57,841,661	(44,129,874)	(15,000,000)	(1,288,213)
LSL (Lesotho)	3,459,750	(421,508)	-	3,038,242
MDL (Moldova)	26,009,687	(17,212,333)	-	8,797,355
MKD (North Macedonia)*	24,842,678	(14,148,489)	-	10,694,190
NAD (Namibia)	20,306,645	(10,185,966)	(10,250,000)	(129,321)
RON (Romania)*	47,588,654	(10,883,367)	-	36,705,288
SZL (Eswatini)	2,379	(2,292)	-	87
UAH (Ukraine)	1,279,943	605,716	-	1,885,659
UGX (Uganda)	34,566,981	(14,102,728)	(25,000,000)	(4,535,747)
USD (Group)	15,477,573	(16,392,380)	-	(914,807)
UZS (Uzbekistan)	13,644,721	(3,284,077)	-	10,360,644
ZMW (Zambia)	12,805,646	(3,720,223)	-	9,085,424


						TOTAL:		364,099,138	(211,441,634)	(50,250,000)	102,407,504


	excluding currencies with currency rate fluctuations below 5% over the last three years							247,721,618	(164,702,629)	(50,250,000)	32,768,990

* - currency has not fluctuated more than 5% during last 3 years.

43. Financial risk management (continued)

Assets and liabilities exposed to foreign currencies fluctuation risk as at: 31 December 2023:


										Foreign exchange contracts	Net assets exposed to currency risk


Currency		Equity and liabilities
	Assets	Equity and liabilities
	in EUR	in EUR	in EUR	in EUR
ALL (Albania)*	38,142,013	(21,346,733)	-	16,795,280
AMD (Armenia)	14,299,457	(8,745,835)	-	5,553,623
BYR (Belarus)	1,431,951	(728,057)	-	703,895


	GEL (Georgia)							21,436,604	(19,443,418)	-	1,993,186


KEL (Kenya)	32,364,407	(18,083,658)	-	14,280,749
MDL (Moldova)	40,113,979	(15,108,211)	-	25,005,768
MKD (North Macedonia)*	25,785,315	(11,070,868)	-	14,714,447
RON (Romania)*	34,578,737	(2,987,459)	-	31,591,278


UAH (Ukraine)	2,956,528	241,987	-	3,198,515
UGX (Uganda)	29,242,422	(5,236,855)	-	24,005,567
USD (Group)	35,436,845	(14,380,483)	(71,350,000)	(50,293,638)


UZS (Uzbekistan)	13,054,932	(1,505,292)	-	11,549,640
BWP (Botswana)	17,365,335	(7,999,159)	-	9,366,176
ZMW (Zambia)	5,007,424	(3,045,941)	-	1,961,483
LSL (Lesotho)	2,305,927	(14,519)	-	2,291,408
SZL (Eswatini)	2,366	(2,281)	-	84
NAD (Namibia)	9,588,106	(2,548,951)	-	7,039,156


						TOTAL:		323,112,348	(132,005,732)	(71,350,000)	119,756,616


	excluding currencies with currency rate fluctuations below 5% over the last three years							224,606,284	(96,600,673)	(71,350,000)	56,655,611

* - currency has not fluctuated more than 5% during last 3 years.

An analysis of sensitivity of the Group’s net assets to changes in foreign currency exchange rates based on positions existing as at 31 December 2024 and 31 December 2023 and a simplified scenario of a +/- 5% change in respective currency to EUR exchange rates (which is considered a reasonable historical approximation of average currency fluctuations) is as follows*:


Foreign currency rate risk exposure	31.12.2024		31.12.2023
Foreign currency rate risk exposure		in EUR		in EUR


ALL currency			+/- 1,111,952		+/- 839,764
AMD currency*			+/- 530,110		+/- 555,362
BYR currency*			-		+/- 70,389
GEL currency*			+/- 30,648		+/- 199,319
KEL currency*			+/- 128,821		+/- 1,428,075
MDL currency			+/- 439,868		+/- 1,250,288
MKD currency			+/- 534,709		+/- 735,722
RON currency			+/- 1,835,264		+/- 1,579,564
UAH currency*			+/- 188,566		+/- 319,851
UGX currency*			+/- 453,575		+/- 2,400,557
USD currency			+/- 45,740		+/- 2,514,682
UZS currency*			+/- 1,036,064		+/- 1,154,964
BWP currency*			+/- 86,209		+/- 936,618
ZMW currency*			+/- 908,542		+/- 196,148
LSL currency*			+/- 303,824		+/- 229,141
SZL currency*			+/- 9		+/- 8
NAD currency*			+/- 12,932		+/- 703,916
	TOTAL:	+/- 7,646,833		+/- 15,114,368

* - Due to historical fluctuations and higher risk of future significant fluctuations a higher sensitivity rate of 10% has been used for these currencies.

An analysis of sensitivity of the Group’s net profit to changes in foreign currency exchange rates based on positions existing as at 31 December 2024 and 31 December 2023 and a simplified scenario of a +/- 5% change in respective currency to EUR exchange rates (which is considered a reasonable historical approximation of average currency fluctuations) is as follows:


Foreign currency rate risk exposure	31.12.2024		31.12.2023
Foreign currency rate risk exposure		in EUR		in EUR


ALL currency			+/- 579,106		+/- 424,505
AMD currency			+/- 164,007		+/- 65,185
BWP currency			+/- 124,924		+/- 71,373
BYR currency			+/- 23,634		+/- 66,112
GEL currency			+/- 208,214		+/- 180,765
KEL currency			+/- 41,408		+/- 145,000
LSL currency			+/- 15,496		+/- 6,415
MDL currency			+/- 291,199		+/- 370,080
MKD currency			+/- 297,312		+/- 130,780
NAD currency			+/- 140,062		+/- 17,144
RON currency			+/- 65,662		+/- 8,719
SZL currency			+/- 3		+/- 4
UAH currency			+/- 22,401		+/- 27,118
UGX currency			+/- 156,824		+/- 138,308
UZS currency			+/- 79,409		+/- 30,127
ZMW currency			+/- 7,918		+/- 31,824
	TOTAL:	+/- 2,217,579		+/- 1,713,459

Interest rate risk

The Company is exposed to interest rate risk through its floating coupon notes in Kenya (9.5%-15.5%). However, due to its relatively low size in terms of total borrowings (2.0% from total borrowings as at end of 2024), which in turn are fixed rate, the Group believes its revenue will be sufficient to cover the increased borrowings costs.

43. Financial risk management (continued)

Financial risks

Capital risk management

The Group considers both equity capital as well as borrowings a part of overall capital risk management strategy.
The Group manages its capital to ensure that it will be able to continue as going concern. In order to maintain or adjust the capital structure, the Group may attract new credit facilities or increase its share capital. The Group fulfils externally imposed equity capital requirements as stated in Note 42.

The Group monitors equity capital on the basis of the capitalization ratio as defined in Eurobond prospectus. This ratio is calculated as Net worth (the sum of paid in capital, retained earnings, reserves and shareholder loan) divided by Net Loan portfolio. As of end of reporting year the capitalization ratio was 29.3% (2023: 26.1%).

In order to maintain or adjust the overall capital structure, the Group may issue new bonds, borrow in P2P platform or sell assets to reduce debt. The management of the borrowings is driven by monitoring and complying the lender imposed covenants as well as planning the further borrowing needs to ensure business development of the Group.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages its liquidity risk by arranging an adequate amount of committed credit facilities with related parties, P2P investors and by issuing bonds. The Group monitors daily cash flows and plans for milestone dates for cash outflows to cover major liabilities like semi-annual interest payments for Eurobonds. The Group regulates its issuances of new loans to ensure the adequate funds are available when upcoming larger settlement of liabilities is approaching.

The table below presents the cash flows payable by the Group and to the Group under non-derivative financial liabilities and assets held for managing liquidity risk by remaining contractual maturities at the date of the statement of financial position. The amounts disclosed in the table are the contractual undiscounted cash flow. Cash flow payable for borrowings includes estimated interest payments assuming principal is paid in full at maturity date.

Contractual cash flows


	Carrying value				More than 5 years	Total
As at 31.12.2024	Carrying value	On demand	Up to 1 year	1-5 years	More than 5 years
As at 31.12.2024	EUR		EUR	EUR	EUR	EUR


Assets
Cash in bank	34,461,093	34,461,093	-	-	-	34,461,093
Loans and advances to customers	369,166,009	-	361,570,352	314,564,532	25,122,688	701,257,572
Loans to related parties	3,308,178	-	55,321	4,229,841	-	4,285,162
Trade receivables	2,164,840	-	2,164,840	-	-	2,164,840
Other loans and receivables	155,309	-	10,269	-	-	10,269

Total undiscounted financial assets	409,255,429	34,461,093	363,800,782	318,794,373	25,122,688	742,178,936

Liabilities
Borrowings*	(339,578,431)	-	(100,237,905)	(339,161,523)	(1,572,781)	(440,972,209)
Derivative financial liabilities	(5,317,084)	-	(5,317,084)	-	-	(5,317,084)
Other current liabilities	(12,590,615)	-	(12,590,615)	-	-	(12,590,615)


Total undiscounted financial liabilities	(357,486,130)	-	(118,145,604)	(339,161,523)	(1,572,781)	(458,879,908)

Net undiscounted financial assets/ (liabilities)	51,769,299	34,461,093	245,655,178	(20,367,150)	23,549,907	283,299,028

* - borrowings contain balances from P2P lenders which might require earlier repayment due to 'buy back' guarantee. Carrying amount of such liabilities
is 59 415 656 EUR. See Note 2 for further information on 'buy back' guarantee.

Contractual cash flows


	Carrying value				More than 5 years	Total
As at 31.12.2023	Carrying value	On demand	Up to 1 year	1-5 years	More than 5 years
As at 31.12.2023	EUR	EUR	EUR	EUR	EUR	EUR


Assets
Cash in bank	27,470,468	27,470,468	-	-	-	27,470,468
Loans and advances to customers	313,204,155	-	331,613,080	315,228,214	22,324,441	669,165,735
Loans to related parties	-	-	-	-	-	-
Trade receivables	1,606,770	-	1,606,770	-	-	1,606,770
Other loans and receivables	374,357	-	180,096	27,826	-	207,922

Total undiscounted financial assets	342,655,750	27,470,468	333,399,946	315,256,040	22,324,441	698,450,895

Liabilities
Borrowings*	(322,124,166)	-	(114,282,330)	(293,195,656)	(6,626,662)	(414,104,648)
Other current liabilities	(10,988,315)	-	(10,988,315)	-	-	(10,988,315)

Total undiscounted financial liabilities	(333,112,481)	-	(125,270,645)	(293,195,656)	(6,626,662)	(425,092,963)

Net undiscounted financial assets/ (liabilities)	9,543,269	27,470,468	208,129,301	22,060,384	15,697,779	273,357,932

* - borrowings contain balances from P2P lenders which might require earlier repayment due to 'buy back' guarantee. Carrying amount of such liabilities
is 63 875 416 EUR. See Note 2 for further information on 'buy back' guarantee.

43. Financial risk management (continued)

Credit risk

The Group is exposed to credit risk through its loans and advances to customers, loans to associated companies, trade and other receivables as well as cash and cash equivalents. Maximum credit risk exposure is represented by the gross carrying value of the respective financial assets. The key areas of credit risk policy cover loan granting process (including solvency check of the loan), monitoring methods, as well as decision making principles.


31.12.2024		31.12.2023
	EUR		EUR


Loans and advances to customers			465,267,936		406,859,573
Loans to associated companies			3,308,179		-
Trade and other receivables			4,066,282		4,694,748
Cash and cash equivalents			34,461,093		27,470,468
	TOTAL:	507,103,490		439,024,789

The Group collateralizes and provides loans in amount of no more than 85% of the market values of the collateral.

The Group operates by applying a clear set of loan granting criteria. This criteria includes assessing the credit history of customer, means of loan repayment and understanding the loan object. The Group takes into consideration both quantitative and qualitative factors when assessing the creditworthiness of the customer. Based on this analysis, the Group sets the credit limit for each and every customer.

When the loan agreement has been signed, the Group monitors the loan object and customer’s solvency. The Group has developed loan monitoring process so that it helps to quickly spot any possible non-compliance with the provisions of the agreement. The receivable balances are monitored on an ongoing basis to ensure that the Group’s exposure to bad debts is minimized, and, where appropriate, provisions are being made.

The Group does not have a significant credit risk exposure to any single counterparty, but has risk to group of counterparties having similar characteristics.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry or geographical location.

In order to avoid excessive concentrations of risk, the Group is maintaining a diversified portfolio. It’s main product is subprime loans, however it is offering also near prime loans, as well as instalment loan and long-term rent products.


The concentration risk on Groups financial assets (based on net exposure) is the following:	31.12.2024		31.12.2023
		EUR		EUR


Kenya		50,084,853	46,435,188
Romania		46,446,880	33,481,634
Albania		41,597,468	36,941,231
Moldova		37,950,549	37,935,566
Lithuania		32,142,389	34,308,971
Uganda		31,040,036	24,609,498
Luxembourg		27,856,140	8,477,994
North Macedonia		23,507,516	23,518,504
Botswana		20,096,869	16,288,324
Georgia		20,061,553	19,768,338
Namibia		18,189,044	8,477,667
Armenia		18,110,654	13,340,306
Uzbekistan		12,839,220	11,929,791
Estonia		12,655,273	11,360,545
Zambia		11,077,347	4,156,237
Lesotho		3,243,440	2,046,890
Mauritius		1,320,142	679,367
Ukraine		843,181	2,468,167
Latvia		190,276	6,421,446
Finland		220	7,720
Eswatini		2,379	2,366
	TOTAL:	409,255,429	342,655,750

Climate-related risk

‘Climate-related risks’ are potential negative impacts on the Group arising from climate change. Climate-related risks have an impact on the principal risk categories discussed above (i.e. credit, liquidity, market and operational risks), but due to their pervasive nature have been identified and managed by the Group on an overall basis.

The Group distinguishes between physical risks and transition risks. Physical risks arise as the result of acute weather events such as hurricanes, floods and wildfires, and longer-term shifts in climate patterns, such as sustained higher temperatures, heat waves, droughts and rising sea levels. Transition risks arise as a result of measures taken to mitigate the effects of climate change and transition to a low-carbon economy - e.g. changes to laws and regulations, litigation due to failure to mitigate or adapt, and shifts in supply and demand for certain commodities, products and services due to changes in consumer behaviour and investor demand.

The Group has incorporated Climate related risks into a broader ESG policy that aims to assess the materiality of focus areas as well as defines future goals for 2026 (including climate related ones).

44. Fair value of financial assets and liabilities

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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Instruments within Level 1 include highly liquid assets and standard derivative financial instruments traded on the stock exchange.

Fair value for such financial instruments as Financial assets at fair value through profit and loss is mainly determined based on publicly available quoted prices (bid price, obtainable from Bloomberg system).

44. Fair value of financial assets and liabilities (continued)

Instruments within Level 2 include assets, for which no active market exists, such as over the counter derivative financial instruments that are traded outside the stock exchange, bonds, as well as balances on demand with the central banks, balances due from banks and other financial liabilities. Bonds fair value is observable in Frankfurt Stock Exchange public information. Fair value of bank loans is based on effective interest rate which represents current market rate to similar companies. The management recognizes that cash and cash equivalents' fair value is the same as their carrying value therefore the risk of fair value change is insignificant.

Instruments within Level 3 include loans and receivables.

Fair value of loans and advances to customers is determined using discounted cash flow model consisting of contractual loan cash flows that are adjusted by expectations about possible variations in the amount and timings of cash flows using methodology consistent with the expected credit loss determination as at 31 December 2024 to determine the cash flows expected to be received net of impairment losses. The pre-tax weighted average cost of capital (WACC) of the entity holding the respective financial assets is used as the basis for the discount rate. The WACC is based on the actual estimated cost of equity and cost of debt that reflect any other risks relevant to the loans that have not been taken into consideration by the impairment loss adjustment described above and also includes compensation for the opportunity cost of establishing a similar loan. An additional 1.5 to 4.1% is added to the discount rate as an adjustment to consider service costs of the portfolio that are not captured by the cash flow adjustments.

The annual discount rate was determined between 6.18% and 31.34% depending on the Group’s component holding the respective financial asset. Impairment loss is estimated by applying PD and LGD rates, which are in line with ECL methodology described under 'The calculation of ECLs' (Note 2).

The table below summarizes the carrying amounts and fair values of those financial assets and liabilities not presented on the Group’s statement of financial position at their fair value:


Carrying value	Fair value	Carrying value	Fair value
Carrying value	Fair value	Carrying value	Fair value
31.12.2024	31.12.2024	31.12.2023	31.12.2023
EUR	EUR	EUR	EUR


Assets for which fair value is disclosed
Loans to associated companies	3,308,179	3,308,179	-	-
Loans and advances to customers	369,166,010	469,299,211	313,204,155	463,826,143
Other loans and receivables	155,308	155,308	374,357	374,357
Trade receivables	2,164,840	2,164,840	1,606,770	1,606,770
Other receivables	8,740,369	8,740,369	8,267,676	8,267,676
Cash and cash equivalents	34,461,093	34,461,093	27,470,468	27,470,468
Total assets for which fair value is disclosed	417,995,799	518,129,000	350,923,426	501,545,414

Liabilities for which fair value is disclosed
Borrowings
Eleving Group S.A. bonds	194,568,261	196,610,886	189,720,020	177,572,764
Mogo AS bonds	-	-	17,652,461	17,470,317
Lease liabilities for right-of-use assets	11,873,062	11,873,062	11,801,088	11,801,088
Long term loan from banks	8,890,707	8,890,707	6,084,337	6,084,337
Financing received from P2P investors	58,758,821	58,758,821	63,723,592	63,723,592
Other borrowings	65,487,580	65,487,580	33,142,668	33,142,668
Trade payables	1,980,625	1,980,625	2,224,874	2,224,874
Other liabilities	2,367,886	2,367,886	1,902,392	1,902,392
Total liabilities for which fair value is disclosed	343,926,942	345,969,567	326,251,432	313,922,032
Liabilities measured at fair value
Other financial liabilities	-	-	-	-
Total liabilities measured at fair value and liabilities for which fair value is disclosed
	343,926,942	345,969,567	326,251,432	313,922,032

The table below specified analysis by fair value levels as at 31 December 2024 (based on their fair values):


Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
31.12.2024	31.12.2024	31.12.2024	31.12.2023	31.12.2023	31.12.2023
EUR	EUR	EUR	EUR	EUR	EUR


Assets for which fair value is disclosed
Loans to associated companies	-	-	3,308,179	-	-	-
Loans and advances to customers	-	-	469,299,211	-	-	463,826,143
Other loans and receivables	-	-	155,308	-	-	374,357
Trade receivables	-	-	2,164,840	-	-	1,606,770
Other receivables	-	-	8,740,369	-	-	8,267,676
Cash and cash equivalents	34,461,093	-	-	27,470,468	-	-
Total assets for which fair value is disclosed	34,461,093	-	483,667,907	27,470,468	-	474,074,946

Liabilities for which fair value is disclosed
Borrowings
Eleving Group S.A. bonds	-	196,610,886	-	-	177,572,764	-
Mogo AS bonds	-	-	-	-	-	17,470,317
Lease liabilities for right-of-use assets	-	-	11,873,062	-	-	11,801,088
Long term loan from banks	-	-	8,890,707	-	-	6,084,337
Financing received from P2P investors	-	-	58,758,821	-	-	63,723,592
Other borrowings	-	-	65,487,580	-	-	33,142,668
Trade payables	-	-	1,980,625	-	-	2,224,874
Other liabilities	-	-	2,367,886	-	-	1,902,392
Total liabilities for which fair value is disclosed	-	196,610,886	149,358,681	-	177,572,764	136,349,268
Liabilities measured at fair value
Other financial liabilities	-	-	-	-	-	-
Total liabilities measured at fair value and liabilities for which fair value is disclosed
	-	196,610,886	149,358,681	-	177,572,764	136,349,268

Bonds issued by Eleving Group S.A. have been classified as Level 2 fair value measurement given that there are observable market quotations in markets. The market for Mogo AS bonds is not assessed as an active market thus classified as Level 3. Fair value of the bonds has been determined based on observable quotes.

There have been no transfers between fair value hierarchy levels during 2024 and 2023.

45. Share-based payments

General Employee Share Option Plan

The Group may grant share options of Subsidiaries to its employees. Share options are generally awarded on the first day of employment. The share options vest within four years time with front loaded vesting of 25% of the granted shares after one year of employment. The maximum term of options granted is 4 years.

Fair value of the respective share options

The fair value of share options granted is estimated at the date of grant. Group’s management has assessed that the fair value of the respective share options as at reporting period end is EUR 40 654.

The exercise price of the share options under typical circumstances is equal to the nominal priceof the underlying shares. There are cash settlement alternatives.The Group does not have a past practice of cash settlement for these awards and the Group does not have a present obligation to settle in cash.

The following table illustrates the number and weighted average exercise prices of the General Employee share option plan:


	2024		2023
	Weighted average exercise price, EUR		Weighted average exercise price, EUR


Number		Number


Outstanding at 1 January	23	0.1	66	0.1
Granted during the year	2	0.1	4	0.1
Fully vested during the year	-9	0.1	-45	0.1
Terminated due to failed vesting conditions	-1	-	-2	-
Outstanding at 31 December	15	0.1	23	0.1
Exercisable at the end of the period	-	-	-	-

Several employee share options have been exercised, expired and/or forfeited in accordance with the terms and conditions of the General Share Option plan, while a several other employee share options remain outstanding and may be exercised, expired and/or forfeited in the future. The table above does not include employee share options that have been granted during the year and exercised during the year or shares provided to the employees. Refer to note 1 for Eleving Group equity Interest percentage in the Group subsidiaries.

The exercise price for options outstanding at the end of the year was 0.1 EUR (2023: 0.1 EUR). The weighted average remaining contractual life for the share options outstanding as at 31 December 2024 is less than a year (2023: 1).

The main purpose of both share option plans is to attract and retain highly experienced employees for extensive period of time and build strong management team.

46. Segment information

For management purposes, the Group is organized into business units based on their geographical locations and on internal management structure, which is the basis for reporting system. These consolidated financial statements provide information on the following operating segments. Comparative figures reflect segments according to previous years structure.

- Eleving Stella. This is the major segment of the Group representing entities performing car financing activities in Latvia, Lithuania, Romania, Moldova, Georgia, Armenia and Estonia.

- Eleving Solis. This is the major segment of the Group representing entities performing car financing activities in Uzbekistan, Kenya and Uganda.

- Entities performing consumer loan financing activities. This is the major segment of the Group representing entities performing activities in Moldova, Albania, Ukraine, Botswana, Namibia, Zambia, Lesotho, Mauritius and Eswatini.

- Discontinued operations. This group includes entities from countries where the group has decided to exit from geographical markets. Countries included Bosnia&Herzegovina, Poland and Belarus.

- Other segments. This segment comprises Group’s business lines with aggregate unconsolidated revenue below 10% of the total unconsolidated revenue of all operating segments.

- Other. The Group’s financing (including finance costs, finance income and other income) and income taxes are managed on a Group basis and are not allocated to operating segments hence these are presented in “Other”.

Management monitors mainly the following indicators of operating segments for the purpose of making decisions about resource allocation and performance assessment: net revenue, profit before tax, gross portfolio and impairment. Other segment is not monitored on segment level but on comprising subsidiaries level.

The Group`s Chief operating decision maker is Group`s CEO.

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Group’s total revenue in 2023 or 2024.

Segment information below shows main income and expense items of profit and loss statement. Other smaller income and expense items are summarized and shown under 'Other income/(expense)' column.

46. Segment information (continued)

Segment information for the period ended on 31 December 2024 is presented below:


Operating segment	Interest income	Interest expenses	Impairment expense*	Other operating income	Other operating expense	Corporate income tax	Segment profit/(loss) for the period	Total assets	Total liabilities


Eleving Stella	55,923,129	(14,644,718)	(10,287,719)	7,824,455	(33,308,962)	(1,238,485)	4,267,700	204,722,129	164,548,734


	Eleving Solis		57,789,316	(16,571,572)	(10,263,607)	9,114,591	(36,676,130)	(1,774,626)	1,617,972	116,355,395	114,877,724


	Entities performing consumer loan financing		87,430,932	(7,556,577)	(19,485,696)	6,562,115	(34,359,289)	(5,615,719)	26,975,766	126,604,560	65,100,002


	Discontinued operations		897,522	(285,862)	(37,519)	57,672	(238,304)	(270,622)	122,887	-	-


	Other segments		241,886	(1,134,586)	(1,530,389)	16,452,632	(14,265,662)	(2,002)	(238,121)	20,945,324	12,718,057



Total segments	202,282,785	(40,193,315)	(41,604,930)	40,011,465	(118,848,347)	(8,901,454)	32,746,204	468,627,408	357,244,517
Other	24,243,611	(24,075,965)	(78,633)	10,210,826	(3,436,313)	(35,295)	6,828,231	231,895,501	201,944,118
Total	226,526,396	(64,269,280)	(41,683,563)	50,222,291	(122,284,660)	(8,936,749)	39,574,435	700,522,909	559,188,635
Adjustments and eliminations	(22,777,021)	22,749,005	1,340,042	(27,464,134)	15,381,389	-	(10,770,719)	(224,234,143)	(191,016,846)
Adjustments and eliminations	(22,777,021)	22,749,005	1,340,042	(27,464,134)	15,381,389	-	(10,770,719)	(224,234,143)	(191,016,846)


	Consolidated		203,749,375	(41,520,275)	(40,343,521)	22,758,157	(106,903,271)	(8,936,749)	28,803,716	476,288,766	368,171,789

* - includes net gain/(loss) from de-recognition of financial assets measured at amortized cost.

46. Segment information (continued)

Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ line. All other adjustments and eliminations are part of detailed reconciliations presented further below.


Revenue	2024
Revenue		EUR


External customers (interest income and other income)		192,053,095
Inter-segment (interest income and other income)		50,241,155
	TOTAL:	242,294,250


Reconciliation of profit		2024
Reconciliation of profit	EUR


	Segment profit									32,746,204

	Profit from other									6,828,231

	Elimination of inter-segment revenue									(50,241,155)
	Elimination of intragroup interest income									(22,777,019)
	Elimination of intragroup income from dividends									(11,691,878)
	Elimination of intragroup management services									(7,626,512)
	Elimination of intragroup other income									(8,015,401)
	Elimination of intragroup income from dealership commissions									(130,345)

	Elimination of inter-segment expenses									39,470,436
	Elimination of intragroup interest expenses									22,749,005
	Elimination of intragroup management services									7,827,458
	Elimination of intragroup other expenses									7,553,931
	Elimination of impairment expenses									1,340,042
	Consolidated profit for the period									28,803,716


Reconciliation of assets		31.12.2024
Reconciliation of assets	EUR


	Segment operating assets									468,627,408
	Loans to subsidiaries (assets of Other)									193,100,449
	Other short term receivables (assets of Other)									38,795,052
	Elimination of intragroup loans									(187,957,738)
	Elimination of other intragroup receivables									(36,276,405)
	Total assets									476,288,766


Reconciliation of liabilities		31.12.2024
Reconciliation of liabilities	EUR


	Segment operating liabilities									357,244,517
	Borrowings (liabilities of Other)									200,437,377
	Other liabilities (liabilities of Other)									1,506,741
	Elimination of intragroup borrowings									(187,844,831)
	Elimination of other intragroup accounts payable									(3,172,015)
	Total liabilities									368,171,789

Segment information for the period ended on 31 December 2023 is presented below:


	Interest income	Interest expenses	Impairment expense*	Other operating income	Other operating expense	Corporate income tax	Segment profit for the period	Total assets	Total liabilities


Eleving Stella	45,721,926	(12,786,195)	(8,197,387)	8,000,373	(26,851,637)	(985,228)	4,901,852	197,861,294	143,052,784


	Eleving Solis		58,952,956	(13,641,605)	(15,222,425)	4,205,343	(33,725,804)	(446,184)	122,281	103,835,772	106,286,739


Entities performing consumer loan financing	68,272,605	(8,088,821)	(15,222,530)	5,140,774	(25,160,192)	(4,745,215)	20,196,621	122,521,648	75,281,520


	Discontinued operations		4,912,144	(1,296,305)	(137,513)	322,033	(2,350,208)	(291,447)	1,158,704	9,597,949	9,432,078


Other segments	(254,985)	(2,883,929)	(11,093,219)	11,440,883	(8,708,678)	(499)	(11,500,427)	27,812,078	20,526,637

Total segments	177,604,646	(38,696,855)	(49,873,074)	29,109,406	(96,796,519)	(6,468,573)	14,879,031	461,628,741	354,579,758
Other	18,434,908	(18,793,579)	(619,429)	7,531,774	(1,634,539)	(97,329)	4,821,806	214,687,811	207,017,742
Total	196,039,554	(57,490,434)	(50,492,503)	36,641,180	(98,431,058)	(6,565,902)	19,700,837	676,316,552	561,597,500
Adjustments and eliminations	(19,741,779)	19,990,990	11,805,202	(19,300,737)	9,461,587	-	2,215,263	(255,001,019)	(205,717,192)
Adjustments and eliminations	(19,741,779)	19,990,990	11,805,202	(19,300,737)	9,461,587	-	2,215,263	(255,001,019)	(205,717,192)


	Consolidated		176,297,775	(37,499,444)	(38,687,301)	17,340,443	(88,969,471)	(6,565,902)	21,916,100	421,315,533	355,880,308

* - includes net gain/(loss) from de-recognition of financial assets measured at amortized cost.


Revenue	2023
Revenue		EUR


External customers (interest income and other income)		167,671,536
Inter-segment (interest income and other income)		39,042,516
	TOTAL:	206,714,052

46. Segment information (continued)


	Reconciliation of profit									2023
	Reconciliation of profit									EUR


	Segment profit									14,879,031

	Profit from other									4,821,806

	Elimination of inter-segment revenue									(39,042,516)
	Elimination of intragroup interest income									(20,025,671)
	Elimination of intragroup income from dividends									(9,470,579)
	Elimination of intragroup management services									(7,787,025)
	Elimination of intragroup other income									(1,687,008)
	Elimination of intragroup income from dealership commissions									(72,233)

	Elimination of inter-segment expenses									41,257,779
	Elimination of intragroup interest expenses									19,990,990
	Elimination of intragroup management services									7,791,873
	Elimination of intragroup other expenses									1,669,714
	Elimination of impairment expenses									11,805,202
	Consolidated profit for the period									21,916,100


	Reconciliation of assets									31.12.2023
	Reconciliation of assets									EUR


	Segment operating assets									461,628,741
	Loans to subsidiaries (assets of Other)									195,461,113
	Other short term receivables (assets of Other)									19,226,698
	Elimination of intragroup loans									(204,762,773)
	Elimination of other intragroup receivables									(50,238,246)
	Total assets									421,315,533

	Reconciliation of liabilities
	Segment operating liabilities									354,579,758
	Borrowings (liabilities of Other)									190,139,431
	Other liabilities (liabilities of Other)									16,878,311
	Elimination of intragroup borrowings									(204,762,772)
	Elimination of other intragroup accounts payable									(954,420)
	Total liabilities									355,880,308

47. Events after balance sheet date

Since the last day of the reporting year several significant events took place:

1) On 10 March 2025 the Group has concluded the public bond offering of its senior secured and guaranteed bonds (ISIN DE000A3LL7M4). As a result of the bond tap, the Group has issued additional new bonds worth EUR 40 mln in nominal with original matury date of 31.10.2028, but with effectve yield reduced from 13% to 10%. Additional funds will be mainly used to fuel the future growth of the business and partially refinance existing liabilities.

2) In March 2025 the government of North Macedonia has lost a court case where it is now obliged to pay back one off solidarity tax payments made by companies in 2023. The Group's subsidiary in North Macedonia made such a payment to government authorities in 2023 for total amount of EUR 1 151 000. Now the entity is eligible for a refund of this payment and the Group expects to receive the refund in second quarter of 2025.

As of the last day of the reporting year until the date of signing these integrated consolidated financial statements there have been no other events requiring adjustment of or disclosure in the statements or Notes thereto.

48. Alternative performance measures (unaudited)

This Integrated report provides, as incorporated in these consolidated financial statements, alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards as adopted by the EU. We believe these APMs provide readers with important additional information on our business. To support this, we have included, a reconciliation of the APMs we use where relevant and a glossary indicating the APMs that we use, an explanation of how they are calculated. These numbers are unaudited.


	APM			Definition
	Capitalization ratio			Total equity (incl. subordinated loans/bonds)/net loan portfolio (excl. rental fleet)
	EBITDA			Profit from continuing operations for the period before corporate income tax and deferred corporate income tax, interest expense, amortization and depreciation, and net foreign exchange result

	Interest coverage ratio			Last twelve-month Adjusted EBITDA/interest expense less Eurobonds acquisitions costs and subordinated loans/bonds interest expense

	Net leverage			Sum of non-current and current borrowings (excl. lease liabilities for rent of vehicles and premises and subordinated debt/bonds) less cash and cash equivalents / last twelve-month Adjusted EBITDA

	Net loan portfolio			Sum of rental fleet and loans and advances to customers
	Net profit before FX			Net profit for the period before net foreign exchange result
	Revenue			Sum of interest revenue, fee and commission income related to financing activities and revenue from loans


	Capitalization ratio						2024	2023	2022	2021	2020


Total Equity	108,116,977	65,435,225	54,073,300	31,390,094	22,238,223
Subordinated loans/bonds	-	16,462,353	18,477,014	17,300,238	12,126,467
Net loan portfolio	369,166,010	313,204,155	282,954,694	234,851,859	186,890,484
Capitalization ratio	29.3%	26.1%	25.6%	20.7%	18.4%


	EBITDA						2024	2023	2022	2021	2020


Profit from continuing operations	28,803,716	21,916,100	14,608,552	11,205,675	1,647,029
Corporate income tax	(8,203,820)	(8,324,461)	(9,004,133)	(6,932,013)	(709,012)
Deferred corporate income tax	(732,929)	1,758,559	2,151,290	815,335	1,012,121
Net foreign exchange result	(3,709,849)	(6,385,833)	(7,422,727)	1,095,031	(11,061,815)
Amortization and depreciation	9,854,800	9,442,554	8,063,484	7,399,657	5,347,054
Interest expense	(41,520,275)	(37,499,444)	(31,131,649)	(29,022,570)	(24,877,404)
EBITDA	92,825,389	81,809,833	68,079,255	52,649,549	42,630,193
(Gain)/Loss from subsidiary sale	-	-	805,957	-	(2,270,197)
Loss from cancelled acquisition in Kosovo	-	-	-	960,237	-
Amortization of acquisitions’ fair value gain	-	-	-	3,183,838	3,365,103
Bonds refinancing expense	-	-	-	5,667,930	-
Warrant repurchase from Mezzanine Management	-	-	-	-	2,546,353
Gain from acquisitions	-	-	-	-	(11,473,296)
VAT in Romania for prior periods	3,030,217	-	-	-	-
Non-controlling interests	(6,068,841)	(4,356,389)	(3,311,445)	(5,002,715)	426,199
Adjusted EBITDA	89,786,765	77,453,444	65,573,767	57,458,839	35,224,355


	Interest coverage ratio						2024	2023	2022	2021	2020


Interest expense	41,520,275	37,499,444	31,131,649	29,022,570	24,877,404
Interest expense from subordinated loans/bonds	2,022,044	2,774,925	2,233,276	1,735,481	344,406
Bonds issuance costs	2,114,297	1,259,773	1,079,908	2,142,668	1,938,791
Interest coverage ratio	2.4	2.3	2.4	2.3	1.6


	Net leverage						2024	2023	2022	2021	2020


Non-current borrowings, less:	267,562,839	242,406,494	231,194,120	229,757,374	166,696,463
Subordinated loans/bonds	-	16,462,353	18,477,014	17,300,238	12,126,467
Non-current lease liabilities for rent of premises	6,300,511	6,466,463	7,115,543	6,612,744	5,682,880
Non-current lease liabilities for rent of vehicles	504,570	780,696	178,449	93,446	42,135
Current borrowings, less:	72,015,592	96,180,026	60,114,233	38,267,475	76,537,465
Current lease liabilities for rent of premises	4,768,360	3,763,479	2,659,706	2,443,778	2,013,871
Current lease liabilities for rent of vehicles	299,621	790,450	142,794	57,412	56,425
Cash and cash equivalents	34,461,093	27,470,468	13,834,837	10,127,087	9,315,430
Net leverage	3.3	3.7	3.8	4.0	6.1


	Net loan portfolio						2024	2023	2022	2021	2020


Rental fleet	2,037,986	7,085,928	10,008,495	10,700,138	14,549,784
Non-current loans and advances to customers	189,649,583	154,854,453	139,934,850	119,126,287	98,368,630
Current loans and advances to customers	179,516,427	158,349,702	143,019,844	115,725,572	88,521,854
Net loan portfolio	371,203,996	320,290,083	292,963,189	245,551,997	201,440,268


	Net profit after FX						2024	2023	2022	2021	2020


Profit from continuing operations	28,803,716	21,916,100	14,608,552	11,205,675	1,647,029

Net profit after FX	28,803,716	21,916,100	14,608,552	11,205,675	1,647,029
(Gain)/Loss from subsidiary sale	-	-	805,957	960,237	(2,270,197)
Amortization of acquisitions’ fair value gain	-	-	-	3,183,838	3,365,103
Bonds refinancing expense	-	-	-	5,667,930	-
Warrant repurchase from Mezzanine Management	-	-	-	-	2,546,353
Gain from acquisitions	-	-	-	-	(11,473,296)
VAT in Romania for prior periods	2,555,565	-	-	-	-
One off solidarity tax payment in North Macedonia	-	1,151,000	-	-	-
Adjusted Net profit after FX	31,359,281	23,067,100	15,414,509	21,017,680	(6,185,008)

48. Alternative performance measures (unaudited) (continued)


	Net profit before FX						2024	2023	2022	2021	2020


Profit from continuing operations	28,803,716	21,916,100	14,608,552	11,205,675	1,647,029
Net foreign exchange result	(3,709,849)	(6,385,833)	(7,422,727)	1,095,031	(11,061,815)
Net profit before FX	32,513,565	28,301,933	22,031,279	10,110,644	12,708,844
(Gain)/Loss from subsidiary sale	-	-	805,957	960,237	(2,270,197)
Amortization of acquisitions’ fair value gain	-	-	-	3,183,838	3,365,103
Bonds refinancing expense	-	-	-	5,667,930	-
Warrant repurchase from Mezzanine Management	-	-	-	-	2,546,353
Gain from acquisitions	-	-	-	-	(11,473,296)
VAT in Romania for prior periods	2,555,565	-	-	-	-
One off solidarity tax payment in North Macedonia	-	1,151,000	-	-	-
Adjusted Net profit before FX	35,069,130	29,452,933	22,837,236	19,922,649	4,876,807


	Revenue						2024	2023	2022	2021	2020


Interest revenue	203,749,375	176,297,775	162,516,856	139,857,244	73,685,522
Fee and commission income related to financing activities	10,076,029	8,968,142	7,743,433	7,317,048	5,040,256
Revenue from leases	2,748,356	4,067,111	5,421,567	6,549,933	6,247,484
Revenue	216,573,760	189,333,028	175,681,856	153,724,225	84,973,262
Amortization of acquisitions’ fair value gain	-	-	-	3,183,838	3,365,103
Adjusted revenue	216,573,760	189,333,028	175,681,856	156,908,063	88,338,365

Signed on behalf of the Group on 28 April 2025 by:



					Māris Kreics				Sébastien Jean-Jacques J. François
					Type A director				Type B director

Management Board's statement

The undersigned Eleving Group, a public limited liability company (societe anonyme), governed by laws of the Grand-Duchy of Luxembourg, having its registered office at 8-10 Avenue de la Gare, L-1610, Luxembourg and registered with the Luxembourg Trade and Companies Register under the number B 174457 (the “Company”),

Hereby formally and expressly declares the following:

1. The consolidated annual report of the Company for the year ended 31 December 2023 is, to the best of Directors’ knowledge, prepared in accordance with the applicable set of accounting standards and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole,

2. The management report of the Company includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole.

Signed on behalf of the Group on 28 April 2025 by:



					Māris Kreics				Sébastien Jean-Jacques J. François
					Type A director				Type B director


	Major shareholders	31.12.2024
	SIA ALPPES Capital (Latvia)	37.31%
	AS Novo Holdings (Latvia)	12.44%
	SIA EMK Ventures (Latvia)	12.44%
	AS Obelo Capital (Latvia)	12.44%
	Lock-up shareholders each below 5%	6.19%
	Eleving Group S.A.	0.58%
	Other shareholders	18.60%
	TOTAL	100.00%


	Māris Kreics (type A)	from 25.07.2018
	Modestas Sudnius (type A)	from 09.03.2019
	Sébastien Jean-Jacques J. François (type B)	from 01.11.2022
	Delphine Glessinger (type B)	from 15.10.2023


	Mārcis Grīnis (chairman)	from 06.06.2024
	Lev Dolgatšjov	from 06.06.2024
	Derek Bryce Urben	from 06.06.2024


	Share capital	Treasury shares	Share premium	Foreign currency translation reserve	Retained earnings	Reserve	Share-based payments	Total equity attributable to Equity holders of the Parent Company	Non-controlling interest	Total





	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
Balance at 01.01.2023	1,000,500	-	-	4,888,658	38,167,599	1,122,204	-	45,178,961	8,894,339	54,073,300

Profit for the financial year	-	-	-	-	20,098,665	-	-	20,098,665	4,356,389	24,455,054

Other comprehensive income	-	-	-	(4,355,896)	-	-	-	(4,355,896)	(226,437)	(4,582,333)

Total comprehensive income	-	-	-	(4,355,896)	20,098,665	-	-	15,742,769	4,129,952	19,872,721

Change in share capital	-	-	-	-	-	-	-	-	(147,239)	(147,239)

Change in NCI without change in control	-	-	-	-	(978,846)	-	-	(978,846)	695,962	(282,884)

Obtaining of subsidiary	-	-	-	-	-	1,927,058	-	1,927,058	-	1,927,058

Dividends	-	-	-	-	(8,275,939)	-	-	(8,275,939)	(1,731,792)	(10,007,731)

Reserve (Note 33)	-	-	-	-	(1,238,369)	1,238,369	-	-	-	-

Balance at 31.12.2023	1,000,500	-	-	532,762	47,773,110	4,287,631	-	53,594,003	11,841,222	65,435,225


Balance at 01.01.2024	1,000,500	-	-	532,762	47,773,110	4,287,631	-	53,594,003	11,841,222	65,435,225

Profit for the financial year	-	-	-	-	23,502,987	-	-	23,502,987	6,068,841	29,571,828

Other comprehensive income	-	-	-	1,836,593	-	-	-	1,836,593	141,056	1,977,649

Total comprehensive income	-	-	-	1,836,593	23,502,987	-	-	25,339,580	6,209,897	31,549,477

Change in share capital	170,588	-	-	-	-	(100,000)	-	70,588	388	70,976

Sale of subsidiary	-	-	-	-	-	(2,842)	-	(2,842)	-	(2,842)

Change in NCI without change in control	-	-	-	-	(1,597,725)	-	-	(1,597,725)	649,750	(947,975)

Share premium increase	-	-	25,467,034	-	-	-	-	25,467,034	-	25,467,034

Purchase of treasury shares	-	(1,146,772)	-	-	-	-	-	(1,146,772)	-	(1,146,772)

Interim dividends	-	-	-	-	(9,020,262)	-	-	(9,020,262)	(3,287,884)	(12,308,146)

Share-based payments	-	-	-	-	(40,654)	-	40,654	(40,654)	-	(40,654)

Reserve (Note 33)	-	-	-	-	(507,151)	507,151	-	-	-	-

Balance at 31.12.2024	1,171,088	(1,146,772)	25,467,034	2,369,355	60,110,305	4,691,940	40,654	92,703,604	15,413,373	108,116,977


	Unified registration number, place and date of registration	B 174.457, Luxembourg, 18 December 2012


	Notes	2024 EUR	2023 EUR
Continuing operations
Interest revenue	4	203,749,375	176,297,775
Interest expense	5	(41,520,275)	(37,499,444)
Net interest income		162,229,100	138,798,331
Fee and commission income related to finance lease activities	6	10,076,029	8,968,142
Impairment expense	7	(42,102,621)	(39,846,624)
Net gain/(loss) from de-recognition of financial assets measured at amortized cost	8	1,759,100	1,159,323
Expenses related to peer-to-peer platform services	9	(895,450)	(987,970)
Revenue from leases	10	2,748,356	4,067,111
Revenue from car sales and other goods	11	7,074,452	1,936,451
Expenses from car sales and other goods	11	(6,559,224)	(1,789,166)
Selling expense	12	(7,203,030)	(6,426,852)
Administrative expense	13	(74,700,997)	(63,246,010)
Other operating income	14	2,859,320	2,368,739
Other operating expense	15	(13,834,721)	(10,133,640)
Net foreign exchange result	16	(3,709,849)	(6,385,833)
Profit before tax		37,740,465	28,482,002
Corporate income tax	17	(8,203,820)	(8,324,461)
Deferred corporate income tax	18	(732,929)	1,758,559
Profit from continuing operations		28,803,716	21,916,100

Discontinued operations
Profit from discontinued operation, net of tax	19	768,112	2,538,954
Profit for the period		29,571,828	24,455,054

Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss:
Translation of financial information of foreign operations to presentation currency		1,977,649	(4,582,333)
Other comprehensive income/(loss)		1,977,649	(4,582,333)
Total profit and loss for the year		31,549,477	19,872,721

Profit is attributable to:
Equity holders of the Parent Company		23,502,987	20,098,665
Non-controlling interests		6,068,841	4,356,389
Net profit for the year		29,571,828	24,455,054

Other comprehensive income/(loss) is attributable to:
Equity holders of the Parent Company		1,836,593	(4,355,896)
Non-controlling interests		141,056	(226,437)
Other comprehensive income/(loss) for the year		1,977,649	(4,582,333)


Cash flows to/from operating activities	Notes	2024	2023
Cash flows to/from operating activities	Notes	EUR	EUR
Profit before tax from continuing operations		37,740,465	28,482,002
Profit from discontinued operation, net of tax		768,112	2,538,954
Adjustments for:
Amortization and depreciation	20, 21	9,854,800	9,442,554
Interest expense	5	41,520,275	37,499,444
Interest income	4	(203,749,375)	(176,297,775)
Loss from disposal of property, plant and equipment	13	802,362	3,374,819
Impairment expense	7	42,102,621	39,846,624
(Gain)/loss from fluctuations of currency exchange rates		1,732,200	10,968,166
Cash flow (to)/from operating activities before working capital changes		(69,228,540)	(44,145,212)
Decrease/(increase) in inventories		2,365,493	(2,332,279)
Increase in finance lease receivables, loans and advances to customers		(82,737,115)	(69,245,456)
and other current assets
(Decrease)/increase in accrued liabilities		1,580,018	(318,380)
Increase in trade payable, taxes payable and other liabilities		6,857,619	705,706
Cash generated to/from operations		(141,162,525)	(115,335,621)
Interest received		203,694,920	176,297,775
Interest paid	35	(37,484,963)	(33,269,320)
Corporate income tax paid		(6,635,098)	(10,545,511)
Net cash flows to/from operating activities		18,412,334	17,147,323

Cash flows to/from investing activities
Purchase of property, plant and equipment and intangible assets	20, 21	(7,888,229)	(7,956,761)
Purchase of rental fleet	21	(421,846)	(1,108,735)
Disposal of discontinued operation, net of cash disposed of	19	-	(104,578)
Received payments for sale of shares in subsidiaries		-	7,601
Made payments for acquisition of minority interest shares		(947,975)	(290,485)
Cash acquired from integration of EC Finance		-	4,379,262
Loan repayments received		368,831	4,857,599
Loans issued		(3,403,364)	(11,714)
Net cash flows to/from investing activities		(12,292,583)	(227,811)

Cash flows to/from financing activities
Repayments of share capital to minority interest		27,753,617	(147,239)
Fees paid to service providers during IPO process		(3,362,379)	-
Proceeds from borrowings	35	199,164,638	288,281,493
Repayments for borrowings	35	(205,400,158)	(275,592,907)
Payments made for acquisition costs of borrowings	35	(1,984,721)	(2,915,882)
Dividends paid		(12,308,146)	(10,007,731)
Repayment of liabilities for right-of-use assets	35	(3,119,372)	(2,855,262)
Net cash flows to/from financing activities		743,479	(3,237,528)
Effect of exchange rates on cash and cash equivalents		127,395	(46,353)
Change in cash		6,990,625	13,635,631

Cash at the beginning of the year		27,470,468	13,834,837

Cash at the end of the year	30	34,461,093	27,470,468