Modivo (MDV) Investor update summary

Response to report allegations

• Management strongly refuted the report's claims, calling it manipulative and factually incorrect, especially regarding margin, EBITDA, and the intent behind transactions.

• The report's calculations of EBITDA impact from wholesale sales were described as exaggerated and based on misunderstandings of margin versus profit.

• Management clarified that the margin from MKRI transactions is only about 3% of total group margin, with no significant impact on overall results.

• The company emphasized that all transactions with MKRI were standard, audited, and not challenged by auditors.

• Accusations of acquiring declining brands were rejected, highlighting strong Reebok sales and margins.

Financial and operational update

• Wholesale sales through franchise arrangements have grown, with over 100 new Worldbox stores opened recently.

• Receivables from MKRI are around PLN 350 million, with regular payments and no significant overdue amounts.

• CapEx for store renovations and equipment is a major component of receivables, and these assets will be internalized upon acquisition.

• The company expects to consolidate Worldbox by the end of Q4, with inventory and receivables becoming intragroup items.

• Inventory levels are expected to decline substantially in upcoming quarters, with a 35% reduction in fall orders and 30% in spring.

Financial performance highlights

• Group sales to MKRI reached 185 mln PLN in 1H'25, with a year-to-date total of 278 mln PLN and 357 mln PLN since cooperation began.

• Gross profit on sales to MKRI was 80 mln PLN in 1H'25, 91 mln PLN YTD, and 122 mln PLN since cooperation started.

• Gross margin on sales to MKRI stood at 43% in 1H'25 and 33% YTD.

• Total group gross profit in 1H'25 was 2.618 bln PLN, with MKRI contributing 0.08 bln PLN, representing 3% of the total.