Annual financial statement
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233 7. FINANCIAL STATEMENTS & INDEPENDENT AUDITOR’S REPORT INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 together with the Independent Auditor’s Report
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 234 RESPONSIBILITY FOR THE FINANCIAL STATEMENTS ............................................................................................ 236 INDEPENDENT AUDITOR’S REPORT ..................................................................................................................... 237 STATEMENT OF PROFIT OR LOSS ......................................................................................................................... 245 STATEMENT OF OTHER COMPREHENSIVE INCOME ............................................................................................ 246 STATEMENT OF FINANCIAL POSITION ................................................................................................................. 247 GROUP STATEMENT OF CHANGES IN EQUITY ..................................................................................................... 249 COMPANY STATEMENT OF CHANGES IN EQUITY ................................................................................................ 250 STATEMENT OF CASH FLOW ................................................................................................................................ 251 1. GENERAL ................................................................................................................................................. 252 2. MATERIAL ACCOUNTING POLICIES ......................................................................................................... 255 3. ACCOUNTING JUDGEMENTS AND ESTIMATES ....................................................................................... 260 4. SEGMENT INFORMATION ....................................................................................................................... 267 5. REVENUE FROM CONTRACTS WITH CUSTOMERS .................................................................................. 271 6. OTHER OPERATING INCOME .................................................................................................................. 273 7. DEPRECIATION, AMORTISATION AND IMPAIRMENT ............................................................................. 273 8. OTHER MATERIAL COSTS AND SERVICE COSTS ...................................................................................... 274 9. STAFF COSTS ........................................................................................................................................... 275 10. IMPAIRMENT CHARGES (NET) ................................................................................................................ 275 11. PROVISIONS FOR CHARGES AND RISKS (NET)......................................................................................... 276 12. FINANCE INCOME AND FINANCE COSTS ................................................................................................ 276 13. TAXATION ............................................................................................................................................... 277 14. EARNINGS PER SHARE ............................................................................................................................ 282 15. INTANGIBLE ASSETS AND GOODWILL..................................................................................................... 282 16. PROPERTY, PLANT AND EQUIPMENT...................................................................................................... 287 17. INVESTMENT PROPERTY ......................................................................................................................... 296 18. INVESTMENTS IN SUBSIDIARIES (in the separate financial statements of INA, d.d.) ............................. 297 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES ........................................................................... 299 20. OTHER NON-CURRENT FINANCIAL ASSETS ............................................................................................. 303 21. OTHER NON-CURRENT ASSETS ............................................................................................................... 303 22. NON-CURRENT FINANCIAL ASSETS ......................................................................................................... 304 23. INVENTORIES .......................................................................................................................................... 305 24. TRADE RECEIVABLES (NET) ..................................................................................................................... 306 25. OTHER CURRENT FINANCIAL ASSETS ...................................................................................................... 308 26. OTHER CURRENT ASSETS ........................................................................................................................ 308 27. LONG-TERM MARKETABLE SECURITIES .................................................................................................. 309 28. CASH AND CASH EQUIVALENTS .............................................................................................................. 309 29. BORROWINGS - BANK LOANS AND CURRENT PORTION OF LONG-TERM DEBTS ................................... 310 30. TRADE PAYABLES, TAXES AND CONTRIBUTIONS AND OTHER CURRENT LIABILITIES ............................. 311
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 235 31. OTHER CURRENT FINANCIAL LIABILITIES ................................................................................................ 312 32. BORROWINGS ......................................................................................................................................... 312 33. LEASES .................................................................................................................................................... 316 34. PROVISIONS ............................................................................................................................................ 318 35. EMPLOYEE BENEFIT OBLIGATION ........................................................................................................... 325 36. DERIVATIVE FINANCIAL INSTRUMENTS .................................................................................................. 327 37. SHARE CAPITAL ....................................................................................................................................... 328 38. FAIR VALUE RESERVES ............................................................................................................................ 328 39. OTHER RESERVES .................................................................................................................................... 329 40. NON-CONTROLLING INTEREST ............................................................................................................... 330 41. RELATED PARTY TRANSACTIONS ............................................................................................................ 331 42. COMMITMENTS ...................................................................................................................................... 338 43. CONTINGENT LIABILITIES ........................................................................................................................ 340 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT ............................................................................ 344 45. SUBSEQUENT EVENTS ............................................................................................................................. 356 46. APPROVAL OF THE FINANCIAL STATEMENTS ......................................................................................... 357
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The company was registered at Zagreb Commercial Court: MBS 030022053; paid-in initial capital: EUR 5,930.00; Company Directors: Katarina Kadunc, Goran Končar and Helena Schmidt, Bank: Privredna banka Zagreb d.d., Radn ička cesta 80, 10 000 Zagreb, bank acco unt no. 2340009 –1110098294; SWIFT Code: PBZGHR2X IBAN: HR3823400091110098294. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Glob al”) and each of its member fir ms and related entities are legally separate and independent en tities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see ww w.deloitte.com/en/about to learn more. © 2026. For information, contact Deloitte Croatia. AB1EFB171E6672C9DC5BEF611DBAFEAF Deloitte d.o.o. ZagrebTower Radnička cesta 80 10 000 Zagreb Croatia TAX ID: 11686457780 Tel: +385 (0) 1 2351 900 Fax: +385 (0) 1 2351 999 www.deloitte.com/hr INDEPENDENT AUDITOR’S REPORT To the Shareholders of INA-INDUSTRIJA NAFTE, d.d. Report on the Audit of the Financial Statements Opinion We have audited the separate financial statements of INA-INDUSTRIJA NAFTE, d .d. (the Company) and consolidated financial statements of the INA-INDUSTRIJA NAFTE, d.d. and its subsidiaries (the Group) which comprise the separate and the consolidated statement of financial position as at 31 December 2025 , the separate and the consolidated statement of profit or loss, and the separate and the consolidated statem ent of other comprehensive income, the separate and the consolidated statement of changes in equity and the separate and the consolidated statement of cash flows for the year then ended, and notes to the separate and th e consolidated financial statements, including material accounting policy information. In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial position of the Company and the Group as at 31 December 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS). Basis for Opinion We conducted our audit in accordance with the International Standards on Auditing (ISAs) and Regulation (EU) 537/2014 of the European Parliament and of the Council, dated 16 April 2014, o n specific requirements regarding statutory audit of public-interest entities. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Separate and the Consolidated Financial Statements section of our report. We are independent of the Company and the Group in accordance w ith the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accoun tants, including International Independence Standards (IESBA Code), as applicable to audits of financi al statements of public interest entities, together with the ethical requirements that are relevant to audits of th e financial statements of public interest entities in Croatia. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate and the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the separate and the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This version of the auditor`s report is translation from th e original, which was prepared in the Croatian language . All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the report takes precedence over this translation .
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR’S REPORT (continued) Report on the Audit of the Financial Statements (continued) Key Audit Matters (continued) Estimation of recoverability of non-current assets For the accounting framework and additional information regarding identified key audit matter refer Note 2 – Significant Accounting Judgements and Estimates, Note 15 – Intangible assets and Goodwill and Note 16 – Property Plant and Equipment to the separate and consolidated financial statements. Description of the key audit matter How we addressed the key audit matter The Company and the Group operate extensive Exploration and Production and Refining and Marketing operations, controlling substantial non-current assets which are comprised of propert y, plant and equipment and intangible assets. As of December 31, 2025, the Company and the Group disclosed Property, Plant and equipment in the amount of EUR 1,694 million and EUR 1,870 million and Intangible assets in the amount of EUR 103 million and EUR 107 million respectively. Significant amounts of these assets are allocated to Exploration and Production and Refining and Marketing segments. These assets are essential to the Company and Group's operations as they are used for exploration, production, refining, and retail operations. The assessment of recoverability of these noted long-term assets holds significant importance for the management and other stakeholders due to its direct impact on the Company’s and Group's financial position and performance, presenting significant risks if recoverable value of such is not adequately assessed and carrying amount not appropriately presented within the financial statements. The inherent risks associated with the assessment of recoverability and determining whether potential impairment and adjustment o f the assets’ carrying amount to their recoverable amount is required, depend on various internal and external factors, such as: • Changes in macroeconomic conditions and regulatory requirements, • Technological advancements and monitoring of assets’ performance and useful life, • Change in commodity prices and estimation of future price trends of crude oil and natural gas, • Estimation of extraction quantities of oil and gas reserves, • Estimation of future production plans, related flows of operating income and expense, emission costs and refining and retail margins, all associated with Exploration and Production and Refining and Marketing operations. Considering the inherent complexities involved in assessing the recoverability of non-current assets within the Company and Group's Exploration and Production and Refining and Marketing operations, alongside the significant management judgment and the significance of internal and external factors impacting t he valuation process, we consider the estimation of the recoverabi lity of non-current assets to be a Key Audit Matter for our audit. To address the risks associated with the estimation of recoverability of non-current assets, identified as the key audit matter, we designed audit procedures that enabled us to obtain sufficient appropriate audit evidence for our conclusion on that matter. We performed the following audit procedures with respect to the noted key audit matter: • Obtaining understanding of the control environment and internal controls implemented by the Management within the business process of valuation of the non-current assets, • Evaluating design, inspecting implementation and testing operating effectiveness of identified internal controls relevant to the business process of valuation of the non-current assets, • Reviewing and evaluating the methodology and management assumptions used in the impairment model, utilizing expert knowledge in assessing appropriateness of management judgement, • Inspecting the integrity, arithmetical and mathematical accuracy of impairment model, • Assessing the assumptions and inputs used in impairment testing model and corroborating it with obtained internal and external data, • Reviewing the estimated quantities of oil and gas reserves and comparing it to the independent regulators report and certified specialists’ report, • Reviewing of oil and gas reserves movement and inspecting that all changes have been approved by the Resources and Reserves Committee, • Performing retrospective analysis of production plans and estimated production units, • Reviewing and evaluating the appropriateness of related disclosures in accordance with the IFRS.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR’S REPORT (continued) Report on the Audit of the Financial Statements (continued) Key Audit Matters (continued) Measurement of provisions for decommissioning charges For the accounting framework and additional information regarding identified key audit matter refer Note 2 – Significant Accounting Judgements and Estimates and Note 34 – Provisions to the separate and consolidated financial statements. Description of the key audit matter How we addressed the key audit matter In its financial statements, as of December 31, 2025, the Company and the Group recorded EUR 431 million and EUR 393 million of provisions for decommissioning charges. Decommissioning charges comprise the liabilities and future costs associated with dismantling and removal, asset retirement and site restoration once exploration and production activities reach their end. Estimating such charges is influenced by various internal and external factors that management considers. Technical considerations, such as the type, size, condition of producing assets and technological advancements, coupled with evolving regulatory framework contribute to the complexity of management estimates of decommissioning charges. Furthermore, management's estimation of provisions for decommissioning charges also relies heavily on economic assumptions, such as discount rates, inflation rates, production plans and future commodity prices and service costs. Fluctuations in these assumptions, driven by market conditions and economic forecasts, can significantly impact the measurement of decommissioning provisions. Given the long-term nature and significance of these obligations, the complexities and significance of management’s judgements inherent in the process of estimating provisions for decommissioning charges and their potential impact on the Company’s and Group’s financial statements, we also consider measurement of provisions for decommissioning charges to be a Key Audit Matter for our audit. To address the risks associated with measurement of provisions for decommissioning charges, identified as the key audit matter, we designed audit procedures that enabled us to obtain sufficient appropriate audit evidence for our conclusion on that matter. We performed the following audit procedures with respect to the noted key audit matter: • Obtaining understanding of the control environment and internal controls implemented by the Management within the business process of measurement of provisions for decommissioning charges, • Evaluating design, inspecting implementation and testing the operating effectiveness of identified internal controls relevant to the business process of measurement of provisions for decommissioning charges. • Reviewing and evaluating the methodology and management assumptions used in the estimation process, • Inspecting the integrity, arithmetical and mathematical accuracy of the decommissioning charges calculation, • Testing of inputs used in the decommissioning charges calculation against underlying documentation and sources of data, utilizing expert knowledge to assess appropriateness of inputs, • Reviewing and evaluating the appropriateness of related disclosures in accordance with the IFRS.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR’S REPORT (continued) Report on the Audit of the Financial Statements (continued) Other Information Management is responsible for the other information. The other info rmation comprises the information included in the Annual Report, but does not include the separate and the consoli dated financial statements and our auditor’s report. Our opinion on the separate and the consolidated financial statements does no t cover the other information. In connection with our audit of the separate and the consolidated finan cial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the separate and the consolidated financial statements or our knowledge o btained in the audit or otherwise appears to be materially misstated. With respect to the Management Report, the Corporate G overnance Report and Separate and Consolidated Public Sector Payments Report, which are included in th e Annual Report, we have also performed the other procedures prescribed by the Accounting Act. These procedures include examination of whether the Management Report include required disclosures as set out in the Articles 22 and 24 of the Accounting Act and whether the Corporate Governance Report includes the information specifi ed in the Articles 22 and 25 of the Accounting Act and if Separate and Consolidated Public Sector Payments Repo rt includes the information specified in the Articles 26 and 27 of the Accounting Act. Based on the procedures performed during our audit, to the extent we are able to assess it, we report that: 1) Information included in the other information is, in all material respects, consistent with the attached separate and consolidated financial statements. 2) Management Report has been prepared, in all material respects, in accord ance with the Articles 22 and 24 of the Accounting Act, excluding the requirements on sustainability reporti ng. In respect of the Sustainability Report, which is included as part of the other information and constitu tes a separate part of the Management Report, we performed a limited assurance engagement, the results of which were presented in a separate limited assurance report with an unmodified conclusion. 3) Corporate Governance Report has been prepared, in all material aspects, in accordance with the Articles 22 and 25 of the Accounting Act, 4) Separate and Consolidated Public Sector Payments Report has been prepared , in all material aspects, in accordance with the Articles 26 and 27 of the Accounting Act. Based on the knowledge and understanding of the Company and the G roup and its environment, which we gained during our audit of the separate and the consolidated financial statemen ts, we have not identified material misstatements in the other information. Responsibilities of Management and Those Charged with Governance for the Separate and the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the separate and the consolidated financial statements in accordance with IFRSs and for such internal control as Management determines is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the separate and the consolidated financial statements, Managem ent is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as ap plicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Company or the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s and the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Separate and the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the s eparate and the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high leve l of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when i t exists.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR’S REPORT (continued) Report on the Audit of the Financial Statements (continued) Auditor’s Responsibilities for the Audit of the Separate and the Consolidated Financial Statements (continued) Misstatements can arise from fraud or error and are considered material i f, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken o n the basis of these separate and consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the separate and the consolidated financial statements, whether due to fraud or error, design and perform audit pro cedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to pro vide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than fo r one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mis representations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in ord er to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group's internal controls. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exi sts related to events or conditions that may cast significant doubt on the Company’s and the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate and the consolidated financial sta tements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cau se the Company and the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the separate and the consolidated financial statements, including the disclosures, and whether the separate and th e consolidated financial statements represent the underlying transactions and events in a manner that achieves fair p resentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervisi on and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any signi ficant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we hav e complied with relevant ethical requirements regarding independence, and communicate with them all relat ionships and other matters that may reasonably be thought to bear on our independence, and where ap plicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we dete rmine those matters that were of most significance in the audit of the separate and the consolidated fin ancial statements of the current period and are therefore the key audit matters . We describe these matters in our auditor’s report unless law or regulati on precludes public disclosure about the matter or when, in extremely rare circumstance s, we determine that a matter should not be communicated in our report because the adverse conseque nces of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR'S REPORT (continued) Report on Other Legal and Regulatory Requirements Report based on the requirements of Delegated Regulation (EU) No. 2018 /815 amending Directive No. 2004/109/EC of the European Parliament and of the Council as regards regu latory technical standards for the specification of the uniform electronic format for reporting (ESEF) Auditor’s reasonable assurance report on the compliance of separate and consolidated financial statements (financial statements), prepared based on the provision of Article 462 (5) of the Cap ital Market Act by applying the requirements of the Delegated Regulation (EU) 2018/815 specifying for the issuers a single electronic reporting format (“ESEF Regulation”). We conducted a reasonable assurance engagement on whether the financial statements of the Company the Group for the financial year ended 31 December 2025 prepared to be made public pursuant to Article 462 (5) of the Capital Market Act, contained in the electronic file 213800RUSOIJPJD19H13-2025-12-31-1-en, have been prepared in all material aspects in accordance with the requirements of the ESEF Regulation. Responsibilities of the Management and Those Charged with Governance Management is responsible for the preparation and content of the financi al statements in line with the ESEF Regulation. In addition, Management is responsible for maintaining the internal con trols system that reasonably ensures the preparation of financial statements without material differences with the reporting requirements from the ESEF Regulation, whether due to fraud or error. Furthermore, Company Management is responsible for the following: • public reporting of financial statements presented in the Annual Report in vali d XHTML format • selection and use of XBRL markups in line with the requirements of the ESEF Regulation. Those charged with governance are responsible for supervising the preparation of financial statements in ESEF format as part of the financial reporting process. Auditor’s Responsibilities It is our responsibility to carry out a reasonable assurance engagement and, based on the audit evidence obtained, give our conclusion on whether the financial statements have been prep ared without material differences with the requirements from the ESEF Regulation. We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised) – Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000). This standard requires that we plan and perform the engagement to obtain reasonable assurance for providing a conclusion. Quality management We have conducted the engagement in compliance with independence and ethical requirements as provided by the Code of Ethics for Professional Accountants (including International Indep endence Standards) issued by the International Ethics Standards Board for Accountants, as well as in compliance with the independence and the ethical requirements in Croatia. The code is based on the principles of in tegrity, objectivity, professional competence and due diligence, confidentiality, and professional conduct. We comply with the International Standard on Quality Management 1, Quality Management for Firms that Perform Audits and Reviews of Fi nancial Statements, and Other Assurance and Related Services Engagements (ISQM 1) and accordingly maintain an overall management control system, including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and statutory requirements.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR'S REPORT (continued) Report on Other Legal and Regulatory Requirements (continued) Report based on the requirements of Delegated Regulation (EU) No. 2018 /815 amending Directive No. 2004/109/EC of the European Parliament and of the Council as regards regu latory technical standards for the specification of the uniform electronic format for reporting (ESEF) (continued) Procedures performed As part of the selected procedures, we have conducted the following activities: • We have read the requirements of the ESEF Regulation; • We have gained an understanding of internal controls of the Company and th e Group, relevant for the application of the ESEF Regulation requirements; • We have identified and assessed the risks of material differences with the ESEF Regulation due to fraud or error; • We have devised and designed procedures for responding to estimated risks and obta ining reasonable assurance in order to give our conclusion. Our procedures focused on assessing whether: • Financial statements included in the separate and the consolidated rep ort have been prepared in valid XHTML format; • Data included in the separate and the consolidated financial statements required by the ESEF Regulation have been marked up and meet all of the following requirements: o XBRL has been used for markups. o Core taxonomy elements stipulated in the ESEF Regulation with the c losest accounting meaning were used unless an extension taxonomy element was created in line with the Annex IV of the ESEF Regulation; o Markups comply with the common rules on markups in line with the ESEF Regulation. We believe the evidence we obtained to be sufficient and appropriate to provide a basis for our conclusion. Conclusion We believe that, based on the procedures performed and evidence obtained, the financial statements of the Company and the Group presented in the ESEF format, contained in the aforementioned electronic file, and based on the provision of Article 462 (5) of the Capital Market Act, have been prepared to be published for public, in all material aspects in accordance with the requirements of articles 3, 4 and 6 of the ESEF Regulation for the year ended 31 December 2025. In addition to this conclusion, as well as the audit opinion contained in this Independent Auditor's Report for the accompanying financial statements and Annual Report for the year ended 31 December 2025, we do not express any opinion on the information contained in these documents or o ther information contained in the above mentioned file.
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AB1EFB171E6672C9DC5BEF611DBAFEAF INDEPENDENT AUDITOR’S REPORT (continued) Report on Other Legal and Regulatory Requirements (continued) Other reporting obligations as required by Regulation (EU) No. 537/2014 of th e European Parliament and the Council and the Audit Act We were appointed as the statutory auditor of the Company and the Group by the shareholders on General Shareholders’ Meeting held on 13 June 2025 to perform audit of accomp anying separate and consolidated financial statements. Our total uninterrupted engagement has lasted 3 years and covers period 1 January 2023 to 31 December 2025. We confirm that: • our audit opinion on the accompanying separate and consolidated financi al statements is consistent with the additional report issued to the Audit Committee of the Company on 18 March 2026 in accordance with the Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and the Council ; • no prohibited non-audit services referred to in the Article 5(1) of Regul ation (EU) No. 537/2014 of the European Parliament and the Council were provided. There are no services, in addition to the statutory audit, which w e provided to the Company and its controlled undertakings, and which have not been disclosed in the Annual Report. The engagement partner on the audit resulting in this independent auditor’s report is Goran Končar. Goran Končar Director and certified auditor Deloitte d.o.o. 18 March 2026 Radnička cesta 80, 10 000 Zagreb, Croatia This version of the auditor`s report is translation from th e original, which was prepared in the Croatian language . All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the report takes precedence over this translation .
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statement for the year ended 31 December 2025 245 STATEMENT OF PROFIT OR LOSS Group Company (in thousand euro) Note 2025 2024 2025 2024 Revenue from contracts with customers 5 3,835,043 3,876,291 3,643,120 3,719,361 Other operating income 6 53,267 46,060 49,551 43,095 Total operating income 3,888,310 3,922,351 3,692,671 3,762,456 Changes in inventories of finished products and work in progress (9,214) 74,990 (11,228) 74,818 Cost of raw materials and consumables 23 (1,725,336) (1,361,413) (1,690,073) (1,333,066) Depreciation, amortisation and impairment 7 (216,187) (191,716) (208,334) (185,585) Other material costs 8 (261,424) (255,595) (296,954) (297,717) Service costs 8 (83,531) (81,872) (148,695) (140,160) Staff costs 9 (322,988) (285,072) (136,466) (120,202) Cost of goods sold 23 (1,032,249) (1,573,156) (958,666) (1,506,705) Impairment charges (net) 10 (19,192) (16,179) (17,879) (14,967) Provision for charges and risks (net) 11 (60,237) (52,612) (58,110) (51,904) Capitalised value of own performance 16 66,574 59,678 7,918 6,397 Total operating expenses (3,663,784) (3,682,947) (3,518,487) (3,569,091) Profit from operations 224,526 239,404 174,184 193,365 Finance income 12 51,128 27,053 72,618 47,405 Finance costs 12 (65,185) (46,680) (64,905) (51,140) Net (loss)/profit from financial activities (14,057) (19,627) 7,713 (3,735) Share of profit in associated companies accounted for using the equity method 19 4,552 5,533 - - Profit before tax 215,021 225,310 181,897 189,630 Income tax expense 13 (35,801) (43,214) (29,597) (33,592) PROFIT FOR THE PERIOD 179,220 182,096 152,300 156,038 Attributable to: Owners of the Company 179,018 181,829 152,300 156,038 Non-controlling interest 40 202 267 - - 179,220 182,096 152,300 156,038 Earnings per share Basic and diluted earnings per share (EUR per share) 14 17.90 18.18 - - The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statement for the year ended 31 December 2025 246 STATEMENT OF OTHER COMPREHENSIVE INCOME Group Company (in thousand euro) Note 2025 2024 2025 2024 Profit for the period 179,220 182,096 152,300 156,038 Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation 39 (103) 99 (209) 75 Loss on investments in equity instruments designated as at FVTOCI 38 (4,386) (487) (4,386) (487) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations 39 (1,956) 285 (2,747) 941 Gain on investments in debt instruments measured at FVTOCI 38 5 64 5 64 Other comprehensive (loss)/gain, net of income tax (6,440) (39) (7,337) 593 Total comprehensive income for the period 172,780 182,057 144,963 156,631 Attributable to: Owners of the Company 172,578 181,790 144,963 156,631 Non-controlling interests 202 267 - - 172,780 182,057 144,963 156,631 The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statement for the year ended 31 December 2025 247 STATEMENT OF FINANCIAL POSITION Group Company 31 December 31 December (in thousand euro) Note 2025 2024 2025 2024 Non-current assets Intangible assets 15 107,315 97,893 102,636 93,178 Property, plant and equipment 16 1,869,972 1,814,918 1,693,751 1,644,325 Investment property 17 29,994 31,094 17,647 18,011 Right-of-use assets 33 73,948 37,954 68,475 43,042 Investment in subsidiaries 18 - - 295,579 296,598 Investments in associates and joint ventures 19 131,267 132,810 126,588 126,588 Other investments 887 887 619 619 Other non-current financial assets 20, 41 82,499 81,651 100,586 111,925 Deferred tax assets 13 116,886 108,175 111,141 102,897 Long-term marketable securities 27 2,584 2,574 2,584 2,574 Non-current financial assets 22 92,707 98,055 92,707 98,055 Other non-current assets 21 22,449 38,254 22,136 37,763 Total non–current assets 2,530,508 2,444,265 2,634,449 2,575,575 Current assets Inventories 23 431,526 431,614 400,137 403,143 Receivables from companies within the Group 41 - - 28,278 17,850 Trade receivables (net) 24, 41 293,473 296,571 237,136 246,308 Other current financial assets 25, 41 14,387 11,429 14,522 10,269 Corporate income tax receivables 480 263 1 1 Other current assets 26 38,967 35,218 27,369 25,478 Derivative financial instruments 36 3,926 11,533 3,926 11,533 Cash and cash equivalents 28 161,486 110,036 148,145 101,399 944,245 896,664 859,514 815,981 Assets held for sale 667 853 - - Total current assets 944,912 897,517 859,514 815,981 TOTAL ASSETS 3,475,420 3,341,782 3,493,963 3,391,556 The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statement for the year ended 31 December 2025 248 STATEMENT OF FINANCIAL POSITION (continued) Group Company 31 December 31 December (in thousand euro) Note 2025 2024 2025 2024 Capital and reserves Share capital 37 1,200,000 1,200,000 1,200,000 1,200,000 Legal reserves 58,924 51,122 58,924 51,122 Fair value reserves 38 69,089 73,470 69,083 73,464 Other reserves 39 206,497 208,243 151,403 154,359 Retained earnings 99,284 48,388 187,685 163,187 Equity attributable to owners of the Company 1,633,794 1,581,223 1,667,095 1,642,132 Non-controlling interest 40 3,667 3,465 - - TOTAL EQUITY 1,637,461 1,584,688 1,667,095 1,642,132 Non–current liabilities Borrowings 32 - 264,552 - 264,552 Long-term lease liabilities 33 58,922 30,805 51,656 33,130 Other long-term financial liabilities 41 378 - 21,441 22,072 Other non-current liabilities 2,029 2,433 2,029 2,372 Employee benefit obligation 35 9,268 7,103 2,448 1,998 Provisions 34 497,523 495,770 529,344 516,694 Deferred tax liabilities 13 2,373 2,328 - - Total non–current liabilities 570,493 802,991 606,918 840,818 Current liabilities Borrowings 29, 32 663,751 327,688 662,197 325,647 Current portion of long-term lease liabilities 33 16,908 8,338 18,459 11,091 Liabilities to companies within the Group 41 - - 45,481 40,673 Other current financial liabilities 31 4,441 5,185 17,138 12,873 Trade payables 30, 41 293,876 357,909 235,905 307,931 Taxes and contributions 30 138,040 132,163 119,996 115,020 Income tax payables 7,683 9,717 5,604 6,788 Other current liabilities 30 73,518 60,625 47,358 37,793 Derivative financial instruments 36 8,796 9,951 8,796 9,951 Employee benefit obligation 35 625 594 202 224 Provisions 34 59,828 41,933 58,814 40,615 Total current liabilities 1,267,466 954,103 1,219,950 908,606 Total liabilities 1,837,959 1,757,094 1,826,868 1,749,424 TOTAL EQUITY AND LIABILITIES 3,475,420 3,341,782 3,493,963 3,391,556 The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 249 GROUP STATEMENT OF CHANGES IN EQUITY (in thousand euro) Share capital Legal reserves Fair value reserves Other reserves Retained earnings Attributable to equity holders of the Company Non controlling interest Total Note 37 - 38 39 - - 40 Balance at 1 January 2024 1,200,000 39,921 73,893 207,479 118,140 1,639,433 3,198 1,642,631 Profit for the year - - - - 181,829 181,829 267 182,096 Other comprehensive income, net 39, 40 - - (423) 384 - (39) - (39) Total comprehensive income for the year - - (423) 384 181,829 181,790 267 182,057 Transfer to legal reserves and other reserves - 11,201 - 380 (11,581) - - - Dividends paid 14 - - - - (240,000) (240,000) - (240,000) Balance at 31 December 2024 1,200,000 51,122 73,470 208,243 48,388 1,581,223 3,465 1,584,688 Profit for the year - - - - 179,018 179,018 202 179,220 Other comprehensive loss, net 39, 40 - - (4,381) (2,059) - (6,440) - (6,440) Total comprehensive income for the year - - (4,381) (2,059) 179,018 172,578 202 172,780 Transfer to legal reserves and other reserves - 7,802 - 313 (8,115) - - - Dividends paid 14 - - - - (120,000) (120,000) - (120,000) Other movements - - - - (7) (7) - (7) Balance at 31 December 2025 1,200,000 58,924 69,089 206,497 99,284 1,633,794 3,667 1,637,461 The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 250 COMPANY STATEMENT OF CHANGES IN EQUITY (in thousands euro) Share capital Legal reserves Fair value reserves Other reserves Retained earnings Total Note 37 - 38 39 - Balance at 1 January 2024 1,200,000 39,921 73,887 153,343 258,350 1,725,501 Profit for the year - - - - 156,038 156,038 Other comprehensive income, net 39 - - (423) 1,016 - 593 Total comprehensive income for the year - - (423) 1,016 156,038 156,631 Transfer to legal reserves - 11,201 - - (11,201) - Dividends paid 14 - - - - (240,000) (240,000) Balance at 31 December 2024 1,200,000 51,122 73,464 154,359 163,187 1,642,132 Profit for the year - - - - 152,300 152,300 Other comprehensive income, net 39 - - (4,381) (2,956) - (7,337) Total comprehensive income for the year - - (4,381) (2,956) 152,300 144,963 Transfer to legal reserves - 7,802 - - (7,802) - Dividends paid 14 - - - - (120,000) (120,000) Balance at 31 December 2025 1,200,000 58,924 69,083 151,403 187,685 1,667,095 The accompanying notes form an integral part of these consolidated and separate financial statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 251 STATEMENT OF CASH FLOW Group Company (in thousands euro) Note 2025 2024 2025 2024 Profit for the year 179,220 182,096 152,300 156,038 Adjustments for: Depreciation, amortisation and impairment 7 216,187 191,716 208,334 185,585 Income tax expense recognised in profit and loss 13 35,801 43,214 29,597 33,592 Impairment charges (net) 10 19,192 16,179 17,879 14,967 Gain on sale of property, plant and equipment 6 (3,433) (2,651) (3,153) (2,450) Foreign exchange gain 12 (8,078) (4,324) (8,808) (4,193) Interest income (2,543) (2,439) (4,104) (5,335) Interest expense 6,909 11,257 6,939 11,917 Share in profit of associates 19 (4,552) (5,533) - - Other finance income recognised in profit and loss (6,591) (7,467) (27,090) (22,079) Increase in provision 27,150 13,281 26,210 11,893 Decommissioning interests and other provisions 24,359 22,601 25,610 23,722 Net gain/(loss) on derivative financial instruments 6,8 2,091 (5,685) 2,091 (5,685) Other non-cash items 44 (230) 44 (228) 485,756 452,015 425,849 397,744 Movements in working capital (Increase)/decrease in inventories (12,282) (96,887) (8,681) (93,550) (Increase)/decrease in receivables and prepayments (28,369) 13,207 (28,987) 37,903 (Decrease)/increase in trade and other payables (29,288) (13,904) (36,545) (26,458) Cash generated from operations 415,817 354,431 351,636 315,639 Taxes paid (45,769) (58,384) (38,018) (55,213) Net cash flows from operating activities 370,048 296,047 313,618 260,426 Cash flows from investing activities Capital expenditures, exploration and development costs (240,388) (283,329) (218,334) (264,768) Payments for intangible assets (23,168) (30,973) (22,983) (30,792) Proceeds from sale of non-current assets 5,699 3,893 4,997 3,706 Investment in securities - (62) - (57,799) Proceeds from sale of securities - 7 - 7 Dividends received 9,531 11,158 9,531 11,158 Dividends received from subsidiaries - - 15,396 6,304 Interest received and other financial income 8,904 6,626 10,521 9,811 Loans and deposits given (net) 139 218 10,306 49,185 Net cash flows from investing activities (239,283) (292,462) (190,566) (273,188) Cash flows from financing activities Proceeds from borrowings 32 2,336,103 2,637,627 2,564,808 2,813,629 Repayment of borrowings 32 (2,257,066) (2,413,342) (2,481,606) (2,567,327) Dividends paid 14 (119,790) (240,001) (119,790) (240,001) Payment of lease liabilities 32 (15,937) (13,819) (17,723) (15,941) Interest paid (21,460) (15,425) (21,414) (15,909) Net cash flows from financing activities 32 (78,150) (44,960) (75,725) (25,549) Net increase/(decrease) in cash and cash equivalents 52,615 (41,375) 47,327 (38,311) Cash and cash equivalents at 1 January 28 110,036 150,860 101,399 139,840 Effect of foreign exchange rate changes (582) (32) (581) (130) Cash and cash equivalents at 31 December 28 162,069 109,453 148,145 101,399 Change in overdrafts (583) 583 - - Cash and cash equivalents at statement of financial position 161,486 110,036 148,145 101,399 The accompanying notes form an integral part of these consolidated and separate financi al statements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 252 1. GENERAL History and incorporation INA-INDUSTRIJA NAFTE, d.d. was founded on 1 January 1964 through the m erger of Naftaplin Zagreb (oil and gas exploration and production company) with the Rijeka Oil Refinery and the Sisak Oil Refinery. Today, INA, d.d. is a medium- sized European oil company with the leading role in Croatian oil busines s and a strong position in the region in oil and gas exploration, refining and distribution of oil and oil derivatives. INA-INDUSTRIJA NAFTE, d.d. is a joint stock company owned by the Hungarian oil company MOL Nyrt. (49.08%), the Republic of Croatia (44.84%) and institutional and private investors (6.08%). On 30 January 2009, MOL Nyrt. and the Government of Croatia signed the Amendment to the Shareholders Agreemen t. Under the Amendment, MOL Nyrt. delegates five out of the nine members in the Supervisory Bo ard and three out of six members of the Management Board including the President of the Management Board. The ultimate parent company and ultimate controlling party MOL Nyrt., (Hungary, Dombóvári út 28., 1117 Budapest) prepares the consolidated financial statements for the larger Group of comp anies, in which INA, d.d. and INA Group are included as MOL Group subsidiaries. The consolidated financial statements of the MOL Group are available on the official website: www.molgroup.info. The ownership structure* of the Group and the Company as at 31 December 2025 and 31 Dec ember 2024: At 31 December 2025 2024 Number of shares Ownership in % Number of shares Ownership in % Zagrebačka banka d.d./UniCredit bank Hungary Zrt, for MOL Nyrt, Hungary 4,908,207 49.08 4,908,207 49.08 Government of the Republic of Croatia 4,483,552 44.84 4,483,552 44.84 Institutional and private investors 608,241 6.08 608,241 6.08 10,000,000 100 10,000,000 100 *Source: Central Depository & Clearing Company Inc. Principal activities Principal activities of INA, d.d. and its subsidiaries are: (i) exploration and production of oil and gas deposits, primarily onsh ore and offshore within Croatia and other than that INA, d.d. has concession held abroad in Egypt; (ii) import of natural gas and sale of imported and domestically produced natural gas to traders, industrial consumers and municipal gas distributors; (iii) refining and production of oil products through refinery located at Rijeka (Urinj) and Zagreb lubricants plants; (iv) distribution of fuels and associated products through a chain of 506 service stations in operation as at 31 December 2025 (of which 390 in Croatia and 116 outside Croatia); (v) trading in petroleum products through a network of foreign subsidiaries and representative offices, principally in Sarajevo, Ljubljana and Podgorica; and (vi) service activities related to onshore and offshore extraction of n atural resources through its drilling and oilfield services subsidiary Crosco, d.o.o.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 253 1. GENERAL (continued) The Group and the Company have dominant positions in Croatia over oil and gas exploration and production, oil refining, and the sale of gas and petroleum products. The Company also holds an 11.795% interest in JANAF d.d., the company that owns and operates the Adria pipeline system. The Company's registered office is in Zagreb, Avenija V. Holjevca 10, Croatia. At 31 December 2025, there were 9,319 employees in the Group (9,572 at 31 December 2024) and 2,907 employees in the Company (2,948 at 31 December 2024). During 2025, the average number of employees of the Group was 9,402 (2024: 9,533 employees), while the average number of employees of the Company was 2,935 (2024: 2,934 employees). The Group comprises a number of wholly and partially owned subsidiaries operating largely within the Republic of Croatia. Foreign subsidiaries include subsidiaries that generally act as distributo rs of INA Group products and as representative offices within their local markets. Supervisory Board, Management Board and Council of Directors at the date of approval of these financial statements Supervisory Board Damir Mikuljan President of the Supervisory Board (from 17 December 2021 until 12 June 2026) József Molnár Vice President of the Supervisory Board (from 19 December 2016 until 13 December 2028) Branimir Škurla Member of the Supervisory Board (from 17 December 2021 until 12 June 2026) László Uzsoki Member of the Supervisory Board (from 19 December 2016 until 13 December 2028) Ivo Ivančić Member of the Supervisory Board (from 15 June 2022 until 12 June 2026) Viktor Sverla Member of the Supervisory Board (from 15 June 2023 until 15 June 2027) Gabriel Szabó Member of the Supervisory Board (from 18 December 2020 until 13 December 2028) Domokos Szollár Member of the Supervisory Board (from 18 December 2020 until 13 December 2028) Jasna Pipunić Employee representative in the Supervisory Board (from 12 April 2016 until 5 May 2028) Management Board Zsuzsanna Éva Ortutay President of the Management Board (from 1 July 2023 until 30 June 2026) Zsombor Ádám Marton Member of the Management Board (from 16 January 2023 until 30 June 2026) Károly Hazuga Member of the Management Board (from 28 March 2024 until 30 June 2026) Hrvoje Šimović Member of the Management Board ( from 29 September 2022 until the appointment of Management Board members of INA-INDUSTRIJA NAFTE, d.d. through a pub lic tender, for a period of up to 6 months) Marin Zovko Member of the Management Board ( from 29 September 2022 until the appointment of Management Board members of INA-INDUSTRIJA NAFTE, d.d. through a pub lic tender, for a period of up to 6 months) Hrvoje Milić Member of the Management Board ( from 29 March 2025 until the appointment of Management Board members of INA-INDUSTRIJA NAFTE, d.d. through a public tender, for a period of up to 6 months)
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 254 1. GENERAL (continued) Council of Directors Members of the Council of Directors appointed by the decision of the Management Board: Zdravka Demeter Bubalo Operating Director of Consumer Services and Retail Josip Bubnić Operating Director of Exploration and Production Goran Pleše Operating Director of Refining and Marketing Gábor Horváth Chief Financial Officer Hrvoje Glavaš Industrial & Corporate Services Director
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 255 2. MATERIAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Presentation of the financial statements These consolidated and separate financial statements are prepared on the consistent presentation and classification basis. When the presentation or classification of items in the consolidated an d separate financial statements is amended, comparative amounts are reclassified unless the reclassification is impracticable. The Group’s and the Company’s financial statements are prepared in thousands of euro (EUR). Basis of accounting and statement of compliance The Group’s and the Company’s financial statements are prepared under the h istorical cost convention, except for certain financial instruments that are measured at fair values (note 43) at the end of each reporting year, and in accordance with International Financial Reporting Standards as adopted by European Union (“IFRS”). Historical cost is generally based on the fair value of the consideration given in exchan ge for goods and services. 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, regardless of whether that pri ce is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a li ability, the Group and the Company take into account the characteristics of the asset or liability if market participants would consi der those characteristics when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated and separate financial statements is determined on such a basis, exce pt for leasing transactions that are within the scope of IFRS 16, and measurements such as net realisable value in accordance with International Accounting Standards (“IAS”) 2 or value in use in IAS 36. The Company maintains its accounting records in Croatian language, in EUR curren cy, in accordance with Croatian laws. The accounting records of the Company's subsidiaries in Croatia and abroad are maintained in accordance with the requirements of the respective local jurisdictions. The Group and the Company have prepared the financial statements on the basis that they will continue to operate as a going concern. Investments in subsidiaries in Parent Company financial statement (the Company) In the Company’s financial statements, investments in subsidiaries are accounted for at c ost and reduced for accumulated impairment losses. Basis of consolidated financial statements (the Group) The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (the subsidiaries) together with the Group´s attributable share of the results of associates and joint ventures, prepared as at 31 December each year. Control is achieved when the Grou p is exposed, or has rights, to variable returns from its involvement with the investee and has ability to affect those returns through its power over the investee.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 256 2. MATERIAL ACCOUNTING POLICIES (continued) Basis of consolidated financial statements (continued) Power over the company means having existing rights to direct its rele vant activities. The relevant activities of a company are those activities which materially affects its returns. Consolidation o f a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlli ng interests having a negative balance. When necessary, adjustments are made to the financial information of subsidiaries to align with the Group’s accoun ting policies. All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest, and other components of equity, while any realised gain or l oss is recognised in profit or loss. Any investment retained is recognised at fair value. Legal merger Legal mergers of companies within the Group represent transactions under common control. IFRS 3 Business Combinations is not applicable, as the standard explicitly excludes business combinations of entities under common control. In a case of legal merger of the companies in the Group, pooling of interest (book value method) accounting is applied, balances of company that is merged are carried at predecessor values to a company, w hich is legal successor, and no restatements of prior periods are done. Acquisition of entities under common control Business combinations arising from transfers of interests in entitie s that are under the control of the shareholder that ultimately controls the Group are accounted for using pooling of intere st accounting at the date of acquisition. The assets and liabilities acquired are recognised at the carrying amounts recognised prev iously in the consolidated financial statements of the Group. The components of equity of the acquired entities are added to the same components within the Group equity except for issued capital. Consolidated financial statements reflect the results of combining entities from the date of acquisition. Business combinations under common control are accounted for based on carryin g values recognized in the Group consolidated financial statements, with any effects directly recognised in equity.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 257 2. MATERIAL ACCOUNTING POLICIES (continued) Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the conside ration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included within service costs. When the Group acquires shares in business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstan ces and pertinent conditions as at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. After initial recognition, goodwill is measured at cost less any accumu lated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, fro m the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irre spective of whether other assets or liabilities of the acquiree are assigned to those units. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carryin g amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill cannot be reversed in subsequent periods. On disposal of the relevant cash-generating unit, the attribute amount of goodwill is included in the determination of the gain or loss on disposal.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 258 2. MATERIAL ACCOUNTING POLICIES (continued) Interests in joint operations A joint operation is a joint arrangement whereby the parties that hav e joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangem ent. Joint control is the contractually agreed sharing o f control of an arrangement, which exists only when decisions about th e relevant activities require unanimous consent of the parties sharing control. The Group accounts for the assets, liabilities, revenues, and expe nses relating to its interest in a joint operation in accordance with the IFRS’s applicable to the particular assets, liabilities, revenues and expenses. When the Group transacts with a joint operation in which a Group e ntity is a joint operator (such as a sale or contribution of assets), the Group is considered to be conducting the transaction with the other parties to the joint operation, and gains and lo sses resulting from the transactions are recognised in the Group’s con solidated financial statements only to the extent of other parties interests in the joint operation. When a Group entity transacts with a joint operation in which the Gro up entity is a joint operator (such as a purchase of assets), the Group does not recognise its share of the gains and losses until it resells those assets to a third party. Foreign currencies The financial statements of the Company and subsidiaries are prepare d in the currency of the primary economic environment in which they operate (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of the Group are expressed in eu ro (EUR), which is the functional currency of the Company, and the presentation currency for the consolidated financial statements. In the financial statements of the individual Group entities, transactions in currencies other than the entity’s functional currency are translated to the functional currency of the entity at the rates of exchange prevailing on the dates of the transactions. At each statement of financial position date, monetary items denomi nated in foreign currencies are retranslated to the functional currency of the entity at the rates prevailing on the stateme nt of financial position date. Non-monetary items carried at fair value that are denominated in foreign currencies are retra nslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in ter ms of historical cost in a foreign currency are not retranslated. For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are expressed in euro using exchange rates prevailing on the statement of financial position date. Income and expense items (including comparatives) are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising from year-end translation, if any, are classified as equity and recognised in the Gro up’s Other reserves. Such translation differences are recognised in profit or loss in the period in which the foreign operation is disposed of.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 259 2. MATERIAL ACCOUNTING POLICIES (continued) New and amended IFRS Accounting Standards that are effective for the current year In the current year, the Group and the Company have applied a number of amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective for reporting period that begins on or after 1 January 2025. New and amended IFRS Accounting Standards that are effective for the current year Standard Title Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. New and revised IFRS Accounting Standards in issue and adopted by the EU but not yet effective At the date of authorisation of these financial statements, the Company / Group has not applied the following revised IFRS that have been issued by IASB and adopted by EU but are not yet effective: Standard Title Effective date Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting Standards - Volume 11 1 January 2026 Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments 1 January 2026 Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity 1 January 2026 IFRS 18 Presentation and Disclosures in Financial Statements 1 January 2027 New and revised IFRS Accounting Standards in issue but not adopted by the EU At present, IFRS as adopted by the EU do not significantly differ from IFR S adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to the existing standards, which were not adopted by the EU as at the date of authorisation of these financial statements: Standard Title EU adoption status IFRS 19 and subsequent amendments Subsidiaries without Public Accountability: Disclosures (IASB effective date: 1 January 2027) Not yet adopted by EU Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (IASB effective date: 1 January 2027) Not yet adopted by EU The Group and the Company do not expect that the adoption of the Sta ndards listed above will have a material impact on the financial statements of the Group and the Company in future periods.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 260 2. MATERIAL ACCOUNTING POLICIES (continued) IFRS 18 Presentation of Financial Statements IFRS 18 will replace IAS 1 Presentation of Financial Statements and will apply to annual reporting periods beginning on or after 1 January 2027. While IFRS 18 will not affect the recognition or measureme nt of items in the financial statements, it is expected to have a significant impact on presentation and disclosure. The Group and the Company are currently assessing the detailed im plications of applying the new standard to the consolidated and standalone financial statements. Based on the high-level prel iminary assessment performed to date, the following potential impacts have been identified: • The Group and the Company expect that the new required grouping of income and expense items in the income statement will affect how the operating result is calculated and presented. • IFRS 18 introduces new disclosure requirements for management defined performance measures. The Group and the Company will apply IFRS 18 from its mandatory effecti ve date of 1 January 2027. As retrospective application is required, comparative information for the financial ye ar ending 31 December 2026 will be restated in accordance with IFRS 18. 3. ACCOUNTING JUDGEMENTS AND ESTIMATES Critical judgements and estimates in applying accounting policies The preparation of financial statements in conformity with International Fi nancial Reporting Standards, as adopted by EU requires Management to make estimates and assumptions that affect the reported amou nts of assets, liabilities, income and expenses and disclosure of contingencies. Future events may occur wh ich will 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. Significant management judgements and key accounting estimates that may have a material impact on the financial statements are disclosed and further explained in the relevant notes to the financial statements. Other significant judgements and estimates relate to the following areas: Key assumptions used (Exploration and Production) The estimate of the future price of hydrocarbons (note 16), as a key value indicator for the Oil and Gas Exploration and Production assets, has significantly changed compared to the reporting peri od last year in terms of both gas and crude oil prices. At the same time, due to the changes in the interest rates, applied discount rates in Egypt decreased (note 16) which triggered impairment test for those fields where there is a potential for reversal of previous impairment. The Management Board performed identification and assessment of indicators of potenti al impairment reversal. Within Exploration and Production area, impairment test was performed for all fields wh ich have natural gas or crude oil production and impairment or impairment reversal was recognized on some fields. In terms of Oilfield services, Management Board did not identify indicators of potential impairment or its reversal given that hydrocarbon price changes do not impact oilfield services assets directly.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 261 3. ACCOUNTING JUDGEMENTS AND ESTIMATES (continued) Critical judgements and estimates in applying accounting policies (continued) Hydrocarbon reserves Exploration and development projects involve many uncertainties and business risks that may give rise to significant expenditures. Exploration and development projects of the Group and th e Company may be delayed or unsuccessful for many various reasons, including cost overrun, geological issues, diff iculties in meeting the requirements of competent bodies, lack of equipment and technical problems. These projects, particularly those pertaining to the wells in contine ntal areas or other demanding terrain, often require deployment of new and advanced technologies, the development, purch ase and installation of which may be expensive and that may not operate as expected. Oil and natural gas exploration and drillin g activities are subject to a wide range of inherent risks, including the risk of eruption, deposit damage, loss of control over the wells, perforation, craters, fire an d natural disasters. The Group and the Company estimate and report hydrocarbo n reserves in line with the principles contained in the SPE Petroleum Resources Management Reporting System (PRMS) framework. E stimation of hydrocarbon reserves is a significant area of judgement due to the technical uncertainty in assessing quantities and complex contractual arrangements dictating the Group’s and the Company’s share of reportable volumes. As the economic assumptions used may change and as additional geological information is obtained during the operation of a field, estimates of recoverable reserves may change. Such changes may affect the Group’s and the Company’s reported financial position and results, which include: • The carrying value of exploration and evaluation assets; oil and gas p roperties; property, plant and equipment; and goodwill may be affected due to changes in estimated future cash flows; • Depreciation and amortization charges in the statement of profit or loss and o ther comprehensive income may change where such charges are determined using the Units of Production (UOP) method, or where the useful life of the related assets change; • Provisions for decommissioning may require revision where changes to the reserve estimates affect expectations about when such activities will occur and the associated cost of these activities; • The recognition and carrying value of deferred tax assets may change due to changes in the judgments regarding the existence of such assets or in estimates of the likely recovery of such assets. As part of standard practice, resources and reserves level were assessed at the year end. Within the most relevant profiles, one field with negative reserves change above materiality thresh old (+/-1 MMboe) have been identified. In line with industry practice, the Proven and Probable (2P) level of reserves is considered the basis for determining management's best estimate of future cash flows.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 262 ACCOUNTING JUDGEMENTS AND ESTIMATES (continued) Critical judgements and estimates in applying accounting policies (continued) Investments in Syria Since 1998, the Company has made six commercial discoveries on the Hayan Block (Jihar, Al Mahr, Jazal, Palmyra, Mustadira and Mazrur) with significant oil, gas, and condensate reserves. The Group and the Company suspended all business activities in Syria on 26 February 2012 by announcing Force Majeure to comply with the relevan t sanctions of the USA and the EU. Current situation of investment in Syria The main production activities have been taken over by Hayan Petroleum Company’s local workforce, which the Company considers illegal. Taking the overall situation since 2012 into account, the Company has fully impaired al l Syrian assets in 2022. In 2025 USA and EU sanctions were lifted, and the Company continues to monitor the developments in Syria. Contacts with local companies have been re- established and Company’s management will render a decision regarding the continuation of Syrian business depending on future developments in the cou ntry and analysis of activities undertaken since the Force Majeure declaration. Determination of foreign operation Business activities of the Company in Egypt are carried out with a significant degree of autonomy, so the functional currency is US dollar (USD). The total revenue of a foreign operation (from th e sale of crude oil and natural gas) is denominated in that currency (USD), as are most of the costs. Capital expenditures are planned and presented in dollars or euros. Although they are not separate legal entities, based on the facts that th ese are integrated set of assets with inputs, processes and outputs, they meet the definition of a foreign operation in accordan ce with IAS 21 The Effects of Changes in Foreign Exchange Rates. Effect of climate-related matters and energy transition on the estimates MOL Group identified climate-related matters as a material risk. MOL Group’s long -term transformational strategy, which includes the INA Group, was created assessing these risks and represents how MOL Group plans to mitigate the low-carbon economy transition risks. In addition, MOL Group’s strategy was revised in line with the European Union’s proposed “Fit for 55%” package. Management Board is continuously monitoring progress against climate r elated targets. The Group has considered the future effects of its strategic decisions and commitments on aligning its portfolio with energy transition objectives (including emission reduction targets). These ef fects are subject to uncertainty and may have a significant impact on the assets and liabilities currently reported by the Group. Based on the management’s analysis on climate related matters and MOL Group’s 2030+ strategy, the risks associated wi th climate change and energy transition will not have a material impact on the Group’s going concern assessme nt neither in the short -term nor in the foreseeable future.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 263 The “Fit for 55%” package refers to the EU legislative package that represen ts the EU’s target of reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. It covers several areas and sets a wide range of targets for the EU’s 2030 climate and energy framework such as: EU Emission trading system (EU ETS), EU wide renewable energy targets, including a specific target for renewables share in the transport sector (REDII & REDIII), renewable hydrogen targets, energy efficiency targets. From the regulatory background the EU ETS system has the most significant effect on the financial statement. The EU ETS system sets a limit on the total amount of greenhouse gases t hat can be emitted by entities under the system. Companies whose emissions surpass the regulated level have the o ption of purchasing additional quotas. As the Group operation can be covered only partially by the free allocation, thus quota purchase is needed. The Group can ensure this shortfall with forward purchases throughout the issue year, while considering the quarterly updated needs. This mechanism ensures efficient risk management of quota prices and an optimal financing structure. The purchasing mechanism followed by the Group ensures that large shifts in quota prices have a more limited impact on the Group’s financial performance. During the year, a provision is also booked to cover the needs of the current year. The Group purchases the CO 2 quota distributed during the year to achieve that the average purchase price be on the level of the average CO 2 price. When making assumptions and judgements affecting the amounts reported in the financial statement, the Group uses the latest available and reliable information. The significant accounting estimates affe cting the amounts reported in the financial statements are prepared in line with the long-term strategy of the Group, which represents management’s best estimate of the possible outcomes and risks associated with the transition to a low carbon world. The Group acknowledges that the energy transition will occur, however the estimates of the impact of climate change and energy transformation on the Group's operations are subject to very high uncertainty and may change significantly in subsequent periods depending on the pace of the transition. The Group expects climate-related matters to have an impact on the long-term accounting estimates and has incorporated these factors to the financial statemen ts. Estimation inputs like: Brent oil prices, TTF gas prices, CO2 quota price assumptions and discount rates take into consideration th e effects of the climate related matters and are in line with external information and represent the effect of climate related expectations on the financial statement. CO2 costs and price assumptions represent best the effects of climate change on the financial statements, as quotas are traded on an active market. Russia – Ukraine conflict Management is continuously investigating and assessing the possibl e effects of the current geopolitical situation, international sanctions and other possible limitations on the su pply chain and business activities of the Group and the Company, driven by th e Russia’s invasion of Ukraine that commenced on 24 February 2022. Croatia w as granted the exception, under certain conditions and valid by 31 December 2025, for Rus sian Vacuum Gas Oil (VGO) import. The Management is continuously investigating the possibility for non-Ru ssian VGO import, for the purpose to preserve the regular and uninterrupted supply chain and business activity. The Grou p’s and the Company’s exposure to Russia and Ukraine does not require any adjustments to these financial statements as at 31 December 2025 and is not expected to jeopardize the business continuity of the Group and the Company.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 264 3. ACCOUNTING JUDGEMENTS AND ESTIMATES (continued) Critical judgements and estimates in applying accounting policies (continued) Reclassification of position in Statement of Financial Position To ensure consistency of presentation with the current year, the Grou p has reclassified the asset in the amount of EUR 4,496 thousand from Property, Plant and Equipment to Investment Property. The reclassification has no impact on the Group’s net result, operating profit, equity or cash flows, as i t represents purely a reclassification of assets with no effe ct on the amounts recognised in the financial statements. The reclassification is as follows: Group (in thousand euro) 31 December 2024 before reclassification Reclassification 31 December 2024 reclassified Property, plant and equipment 1,819,414 (4,496) 1,814,918 Investment property 26,598 4,496 31,094 Total 1,846,012 - 1,846,012 Reclassification of segment information In 2025, Crosco Group was reclassified from the Corporate and Other segment to the Exploration a nd Production segment in order to ensure a more consistent presentation of business activities. Change was implemented to better reflect the Group’s operating model and to improv e comparability with prior periods .
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 265 3. ACCOUNTING JUDGEMENTS AND ESTIMATES (continued) Critical judgements and estimates in applying accounting policies (continued) Reclassification of segment information (continued) Reclassification of revenue and expense of Crosco Group from Corporate and other to Exploration and Production at 2024: Group 31 December 2024 before reclassification Reclassification 31 December 2024 reclassified 2024 (in thousand euro) Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Sales to external customers 49,859 65,910 - 56,173 (56,173) - 106,032 9,737 - Intersegment sales 473,248 185,773 (673,832) (90) (30,037) 30,127 473,158 155,736 (643,705) Total revenue 523,107 251,683 (673,832) 56,083 (86,210) 30,127 579,190 165,473 (643,705) Operating expenses, net of other operating income (305,554) (264,819) 672,676 (44,336) 73,602 (29,266) (349,890) (191,217) 643,410 Profit/(loss) from operations 217,553 (13,136) (1,156) (100,419) 159,812 (59,393) 229,300 (25,744) (295)
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 266 3. ACCOUNTING JUDGEMENTS AND ESTIMATES (continued) Critical judgements and estimates in applying accounting policies (continued) Reclassification of segment information (continued) Reclassification of line items in the statement of financial position of Crosco Group from Corporate and Other to Exploration and Production in 2024: Group 31 December 2024 before reclassification Reclassification 31 December 2024 reclassified 31 December 2025 Assets and liabilities (in thousand euro) Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Exploration and Production Corporate and other Intersegment transfers and consolidation adjustments Intangible assets 59,028 23,250 - 3,955 (3,955) - 62,983 19,295 - Property, plant and equipment 512,689 150,112 (81,708) 30,904 (62,452) 27,052 543,593 87,660 (54,656) Investment property - 20,043 - 17 4,479 - 17 24,522 - Right-of-use assets 148 1,677 (84) 450 (449) (1) 598 1,228 (85) Inventories 23,620 23,978 (2,028) 7,861 (7,785) (76) 31,481 16,193 (2,104) Trade receivables, net 49,570 39,915 (21,163) 17,341 (21,979) 4,638 66,911 17,936 (16,525) Trade payables 44,106 59,143 (22,748) 8,049 (12,687) 4,637 52,155 46,456 (18,111) Other segment information in period Capital expenditure: Property, plant and equipment 73,127 20,641 (6,185) 9,731 (9,731) - 82,858 10,910 (6,185) Intangible assets 21,548 9,440 - 27 (27) - 21,575 9,413 - Depreciation, amortisation and impairment 79,363 19,941 (163) 4,262 (4,231) (31) 83,625 15,710 (194) Impairment charges 2,157 341 745 64 (64) - 2,221 277 745
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 267 4. SEGMENT INFORMATION Accounting policies For management purposes the Group is organised into three major ope rating business units: Exploration and Production, Refining and Marketing and Corporate and other segments. The business units are the basis upon which the Group reports its segment information to the management which is responsible for allocat ing business resources and to assess their performance. The Group operates through three core business segments. The strategic bu siness segments offer different products and services. Reporting segments, which in the Group represent busine ss operations, have been defined along value chain standard for the oil companies: • Exploration and Production - exploration, production and selling of crude oil, including drilling and well-service activities; • Refining and Marketing - crude oil processing, wholesale of refinery pro ducts, selling of natural gas, selling of fuels and commercial goods in retail stations and logistics; • Corporate and other - in addition to the core segments above, the operati ons of the Group provide services for core activities. Profit from operations is used to measure performance, as management believes that such information is the most relevant in evaluating the result of certain segments. However, Group fi nancing (including finance costs and finance income) and income taxes are managed on Group basis and are not relevant to making business decisions at the level of business segments. Intersegment transfer represents the effect of unrealized profit arisin g in respect of transfers of inventories from Exploration and Production to Refining and Marketing. Evaluation of inv entories of domestic crude, finished and semi- finished products in Refining and Marketing is based on the transfer price from Exploration and Production to Refining and Marketing. Elimination of unrealized profit (difference between transfer price and book value of domestic crude oil and gas) is performed through intersegment transfer.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 268 4. SEGMENT INFORMATION (continued) The following table presents information on revenues and expenditures of the Group operations for 2025: 2025 (in thousand euro) Exploration and Production Refining and Marketing Corporate and other Intersegment transfers and consolidation adjustments Total Sales to external customers 117,101 3,708,204 9,738 - 3,835,043 Intersegment sales 413,171 15,353 165,082 (593,606) - Total revenue 530,272 3,723,557 174,820 (593,606) 3,835,043 Operating expenses, net of other operating income (362,160) (3,628,204) (206,913) 586,760 (3,610,517) Profit/(loss) from operations 168,112 95,353 (32,093) (6,846) 224,526 Net finance loss (14,057) Share in profit in associated companies accounted for using the equity method 4,552 Profit before tax 215,021 Income tax expense (35,801) PROFIT FOR THE PERIOD 179,220 The following table presents information on revenues and expenditures of the Group operations for 2024: 2024 (in thousand euro) Exploration and Production Refining and Marketing Corporate and other Intersegment transfers and consolidation adjustments Total Sales to external customers 106,032 3,760,522 9,737 - 3,876,291 Intersegment sales 473,158 14,811 155,736 (643,705) - Total revenue 579,190 3,775,333 165,473 (643,705) 3,876,291 Operating expenses, net of other operating income (349,890) (3,739,190) (191,217) 643,410 (3,636,887) Profit/(loss) from operations 229,300 36,143 (25,744) (295) 239,404 Net finance loss (19,627) Share in profit in associated companies accounted for using the equity method 5,533 Profit before tax 225,310 Income tax expense (43,214) PROFIT FOR THE PERIOD 182,096
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 269 4. SEGMENT INFORMATION (continued) The following table presents information of financial position of the Group op erations for 2025: 31 December 2025 Assets and liabilities (in thousand euro) Exploration and Production Refining and Marketing Corporate and other Intersegment transfers and consolidation adjustments Total Intangible assets 71,498 15,534 20,283 - 107,315 Property, plant and equipment 547,662 1,288,407 90,652 (56,749) 1,869,972 Investment property 15 6,215 23,764 - 29,994 Right-of-use assets 3,501 65,120 5,484 (157) 73,948 Investments in associates and joint ventures 2,596 124,256 - 4,415 131,267 Inventories 38,822 411,090 16,948 (35,334) 431,526 Trade receivables, net 55,266 240,595 21,269 (23,657) 293,473 Not allocated assets 537,925 Total assets 3,475,420 Trade payables 55,099 178,356 88,439 (28,018) 293,876 Not allocated liabilities 1,544,083 Total liabilities 1,837,959 Other segment information in period Capital expenditure: Property, plant and equipment 109,066 142,042 11,952 (5,405) 257,655 Intangible assets 14,108 163 7,793 - 22,064 Depreciation, amortisation and impairment 92,134 107,907 16,347 (201) 216,187 Impairment charges 4,899 13,281 493 519 19,192 The following table presents information of financial position of the Group operations for 2024: 31 December 2024 Assets and liabilities (in thousand euro) Exploration and Production Refining and Marketing Corporate and other Intersegment transfers and consolidation adjustments Total Intangible assets 62,983 15,615 19,295 - 97,893 Property, plant and equipment 543,593 1,238,321 87,660 (54,656) 1,814,918 Investment property 17 6,555 24,522 - 31,094 Right-of-use assets 598 36,213 1,228 (85) 37,954 Investments in associates and joint ventures 2,782 124,256 - 5,772 132,810 Inventories 31,481 386,044 16,193 (2,104) 431,614 Trade receivables, net 66,911 228,249 17,936 (16,525) 296,571 Not allocated assets 498,928 Total assets 3,341,782 Trade payables 52,155 277,409 46,456 (18,111) 357,909 Not allocated liabilities 1,399,185 Total liabilities 1,757,094 Other segment information in period Capital expenditure: Property, plant and equipment 82,858 179,773 10,910 (6,185) 267,356 Intangible assets 21,575 215 9,413 - 31,203 Depreciation, amortisation and impairment 83,625 92,575 15,710 (194) 191,716 Impairment charges 2,221 12,936 277 745 16,179
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 270 4. SEGMENT INFORMATION (continued) BY GEOGRAPHICAL AREAS 31 December 2025 (in thousand euro) Republic of Croatia Bosnia and Herzegovina Egypt Other countries Total Intangible assets 97,364 511 2,844 6,596 107,315 Property, plant and equipment 1,757,782 54,695 18,559 38,936 1,869,972 Investment property 28,919 332 - 743 29,994 Right-of-use assets 66,170 2,348 - 5,430 73,948 Investments in associates and joint ventures 4,106 - - 127,161 131,267 Inventories 418,118 9,045 - 4,363 431,526 Trade receivables, net 167,746 32,030 43,863 49,834 293,473 Not allocated assets 537,925 Total assets 3,475,420 Other segment information Capital expenditure: Property, plant and equipment 237,743 3,344 10,474 6,095 257,656 Intangible assets 21,613 62 340 49 22,064 31 December 2024 (in thousand euro) Republic of Croatia Bosnia and Herzegovina Egypt Other countries Total Intangible assets 87,920 600 2,816 6,557 97,893 Property, plant and equipment 1,699,657 54,673 18,493 42,095 1,814,918 Investment property 29,795 349 - 950 31,094 Right-of-use assets 32,776 2,523 - 2,655 37,954 Investments in associates and joint ventures 3,994 - - 128,816 132,810 Inventories 419,679 7,261 - 4,674 431,614 Trade receivables, net 161,005 21,716 49,008 64,842 296,571 Not allocated assets 498,928 Total assets 3,341,782 Other segment information Capital expenditure: Property, plant and equipment 248,158 3,477 9,864 5,857 267,356 Intangible assets 30,929 65 143 66 31,203
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 271 5. REVENUE FROM CONTRACTS WITH CUSTOMERS Accounting policies Revenue from contracts with customers IFRS 15 established a five-step model to account for revenue arising from contracts with customers and requires that revenue to be recognised at an amount that reflects the consideration to which the Group and the Company expects to be entitled in exchange for transferring goods or services to a customer. Revenue i s recognised when it is probable that the economic benefits associated with a transaction will flow to the enter prise and the amount of the revenue can be measured reliably. Sales are recognised when control of the goods or services are transferred to the customer. The Group and the Company have generally concluded that: • it satisfies performance obligations at a point in time, because control is transferred to the customer on delivery of the goods. IFRS 15 Revenue from Contracts with Customers defines the criteria for revenue recognition based on the control concept. For performance obligations to be satisfied at a partic ular point in time, the Group and the Company have to determine at which point in time the customer obtains cont rol of the promised goods. The transfer of significant risk and rewards of ownership of an asset – which equals the transfer of risk as defined in the Incoterms rules – is only one indicator to consider in determining when control has been transferr ed. The Group may apply different Incoterms rules to differen t transactions (nearly all known Incoterms rules are used by the Gr oup), thus the transfer of control shall be assessed individually in each case; • it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to customers; • significant financing component does not exist, because the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service is expected to be one year or less at contract inception. Construction – maintenance and service contracts For each performance obligation satisfied over time, the Group and the Company recognizes revenue over time by measuring the progress towards complete satisfaction of that performance obl igation. The Group uses input method of calculating progress (costs incurred to date) in revenue recognition from construction contracts. Loyalty points programme The Group and the Company have the INA loyalty programme, Loyalty Poi nts, which allows customers to accumulate points and reach certain status. Each status achieved enables customer to receive certain benefits. The Loyalty Points give rise to a separate performance obligation as they provide a material right to the customer. A portion of the transaction price is allocated to the loyalty points awarded to customers based on relative stand-alone selling price and recognised as a contract liability until the bene fits are used. Revenue is recognised upon usage of benefits by the customer. When estimating the stand-alone selling price of the loyalty p oints, the Group and the Company consider the likelihood tha t the customer will use the benefit. The Group and the Company update their estimates of the benefits that will be used by the customers at least once a year and any adjustments to the contract liability balance are charged against revenue. Revenue from the sale and transportation of crude oil, natural gas, p etroleum products and other merchandise is recognised when the customer obtains control of the goods, which is n ormally when title passes to the customer and the customer takes the physical possession, based on the contractual terms of the agreements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 272 5. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued) Sales agreements mainly represent one performance obligation and the Group and the Company principally satisfy their performance obligations at a point in time. Sales by products lines at Group and the Company: Group Company (in thousand euro) 2025 2024 2025 2024 Sales of oil and petroleum products 3,008,943 3,071,167 2,891,969 3,015,888 Sales of consumer goods 353,252 337,689 345,390 302,549 Sales of natural gas and gas products 317,864 322,425 336,185 316,940 Sales of services 131,088 104,736 46,222 44,375 Other sales revenue 23,896 40,274 23,354 39,609 Sales to customers 3,835,043 3,876,291 3,643,120 3,719,361 Product transferred at point of time 3,703,955 3,771,555 3,596,898 3,674,986 Products and services transferred over time 131,088 104,736 46,222 44,375 Sales by geographical area of the Group and the Company: Group Company (in thousand euro) 2025 2024 2025 2024 Croatia 2,461,951 2,595,281 2,409,263 2,565,679 Bosnia and Herzegovina 510,712 508,314 430,145 440,678 Malta 121,160 82,496 121,160 82,496 Slovenia 114,901 89,580 110,687 85,192 Switzerland 105,218 52,879 105,199 52,859 Great Britain 90,919 77,960 90,919 77,959 United Arab Emirates 80,395 58,448 80,395 58,448 Montenegro 74,591 66,319 56,659 50,843 Hungary 63,484 156,940 34,286 128,330 Slovakia 57,343 17,089 57,342 17,085 Ireland 37,582 40,461 37,582 40,461 Egypt 32,456 45,308 32,457 45,308 Germany 14,558 12,411 14,547 12,297 Italy 11,205 18,126 5,854 8,604 Serbia 10,722 986 10,041 345 Panama 10,157 7,641 10,157 7,641 Other countries 37,689 46,052 36,427 45,136 Total 3,835,043 3,876,291 3,643,120 3,719,361 In 2025 and 2024 there was no single third-party customer that would contribute to 10% or more of the Group’s and the Company’s revenue. The sales revenue is split by the method of the customer’s registered office.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 273 6. OTHER OPERATING INCOME Accounting policies Lease income The Group and the Company enter into lease agreements as a le ssor with respect to some of its investment properties. Lease income from lease is recognised on a straight-line basis over the lease term. Commission fee and charges The Group and the Company generate commission income from consignment sales, acting as an agent. Revenue is recognised in the net amount of the commission at the point when the sale to the end customer is realised, in accordance with IFRS 15. In addition, the Group and the Company recognise infrastructure fees on airport. Other operating income Other operating income is recognised on the same accounting policy basis as the sales revenue. Group Company (in thousand euro) 2025 2024 2025 2024 Commission fee and charges 19,203 11,181 18,735 4,946 Income from rental activities 8,857 8,130 8,017 10,770 Surpluses 7,298 3,561 7,149 3,433 Gain from sale of property, plant and equipment 3,433 2,651 3,153 2,450 Payment in kind 2,079 2,007 1,704 1,739 Income from collected damage claims 1,623 206 1,587 201 Income from sediment reduction 1,071 30 1,071 30 Income from default interest for customers 835 1,272 705 1,154 Gains from litigation 400 365 297 101 Rebates and returns 305 960 304 960 Net gain from derivative transactions - 5,685 - 5,685 Revenues - state budget subsidies and grants - 123 - 123 Other 8,163 9,889 6,829 11,503 Total 53,267 46,060 49,551 43,095 7. DEPRECIATION, AMORTISATION AND IMPAIRMENT Group Company (in thousand euro) 2025 2024 2025 2024 Depreciation of property, plant and equipment (note 16) 174,646 157,655 165,808 149,149 Impairment of property, plant and equipment and intangible assets (note 15 and 16) 18,765 12,731 19,145 14,773 Depreciation of right-of-use asset (note 32) 16,595 13,852 18,183 16,052 Amortisation of intangible assets (note 15) 4,985 5,442 4,763 5,185 Write-off property, plant and equipment, net 217 982 53 14 Depreciation of investment property (note 17) 979 1,054 382 412 Total 216,187 191,716 208,334 185,585
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 274 8. OTHER MATERIAL COSTS AND SERVICE COSTS Other material costs Accounting policies If specific standards do not regulate, operating expenses are rec ognised at point in time or through the period basis. When a given transaction is under the scope of specific IFRS it is accounted for in line with those regulations. This note comprises lease payments for leases of low-value assets, short-term lease payments and variable lease payments. Group Company (in thousand euro) 2025 2024 2025 2024 Transport services 65,867 65,802 64,790 63,021 Cost of mining rent 44,005 51,075 44,005 51,076 Maintenance costs 40,290 34,527 64,549 59,114 Subcontracted services 20,130 13,724 930 1,149 Costs of concession 17,694 20,089 17,694 20,089 Cost of partnership fee 17,262 15,333 17,262 15,333 Security services 13,492 11,521 27,711 24,345 Cleaning services 8,502 7,043 7,667 6,308 Net losses on derivatives 2,091 - 2,091 - Other 32,091 36,481 50,255 57,282 Total 261,424 255,595 296,954 297,717 In the line Other, costs mainly relate to IT equipment and software maintenance costs, equipment rental costs, charges for the use of public warehouses, ports and airports. Service costs In 2025, the Group in the line of Service costs mainly recorded the compensation for the use of road land in the amount of EUR 21,562 thousand (2024: EUR 20,298 thousand), external repair services fee in the amount of EUR 6,571 thousand (2024: EUR 4,300 thousand), intellectual services expenses in the amount of EUR 6,444 thousand (2024: EUR 6,784 thousand) and insurance costs in the amount of EUR 6,289 thousand (2024: EUR 6,316 thou sand). In 2025, the Company in the line of Service costs mainly recorded costs related to business site management services in the amount of EUR 73,555 thousand (2024: EUR 64,247 thousand), the compensation for the u se of road land in the amount of EUR 20,628 thousand (2024: EUR 19,380 thousand), intellectual services expenses in the amount of EUR 8,224 thousand (2024: EUR 6,523 thousand), and insurance costs in the amount of EUR 5,137 thousand (2024: EUR 5, 519 thousand).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 275 9. STAFF COSTS Group Company (in thousand euro) 2025 2024 2025 2024 Net salaries and wages 172,378 155,655 70,352 63,474 Tax and contributions for pensions and health insurance 99,867 87,825 45,044 40,487 Other payroll related costs 50,743 41,592 21,070 16,241 Total 322,988 285,072 136,466 120,202 In 2025, the expense for defined contribution of the Group amounted to EUR 45,045 thousand, while for the Company amounted to EUR 18,807 thousand (2024: the Group EUR 40,205 thousand and the Company EUR 17,103 thousand). In 2025, the Group incurred expense of severance payments in the amount of EUR 11,859 thousand which is included in total staff costs (2024: EUR 6,518), while the Company incurred expense of severance payment in the amount of EUR 6,903 thousand (2024: EUR 4,859 thousand). The Group and the Company employ the following number of employees at year-end, the majority work in the Republic of Croatia: Group Company 2025 2024 2025 2024 Number of employees Number of employees Number of employees Number of employees Refining and Marketing 5,365 5,578 1,625 1,649 Corporate and other 2,454 2,474 439 442 Exploration and Production 1,500 1,520 843 857 Total 9,319 9,572 2,907 2,948 10. IMPAIRMENT CHARGES (NET) Group Company (in thousand euro) 2025 2024 2025 2024 Non-financial assets Impairment of inventory, net 11,038 11,555 10,381 10,992 Financial assets Expected credit losses on trade receivables, net 3,329 (61) 3,278 (64) Impairment of trade receivables, net 1,461 2,701 1,057 2,698 Other impairment, net 3,364 1,984 3,163 1,341 Total 19,192 16,179 17,879 14,967
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 276 11. PROVISIONS FOR CHARGES AND RISKS (NET) Group Company (in thousand euro) 2025 2024 2025 2024 Provision for emission rights 45,751 24,652 45,751 24,652 Provision for renewable energy 10,189 9,983 10,189 9,983 Provision for legal claims/(Reversal of provision) 3,521 (177) 3,707 (209) Provision for retirement and jubilee benefits 2,494 638 304 169 Provision for decommissioning charges 586 3,135 651 3,368 Provision for severance pay/(reversal of provision) 222 242 (25) (127) (Reversal of provision)/provision for environmental liabilities (625) 7,536 (572) 7,461 Reversal of provision for taxation - (2) - - Other provisions (1,901) 6,605 (1,895) 6,607 Total 60,237 52,612 58,110 51,904 12. FINANCE INCOME AND FINANCE COSTS Group Company (in thousand euro) 2025 2024 2025 2024 Foreign exchange gains from trade receivables and payables 25,002 8,897 24,097 8,114 Foreign exchange gains from loans and cash 14,752 6,324 13,809 6,296 Interest income and other finance income 7,936 8,146 9,784 11,360 Dividends income 3,438 3,686 24,928 17,461 Reversal of impairment from investment - - - 4,174 Finance income 51,128 27,053 72,618 47,405 Interest expense on borrowings and other 38,291 42,280 39,899 44,150 Capitalized borrowing costs (9,185) (9,557) (9,185) (9,557) Foreign exchange losses from trade receivables and payables 19,448 4,403 18,295 3,799 Foreign exchange losses from loans and cash 12,228 6,494 10,803 6,418 Interest expense from lease agreements 2,163 1,135 1,835 1,046 Fees on bank loans 1,499 1,287 1,454 1,240 Impairment of investment in subsidiaries - - 1,019 3,405 Other finance costs 741 638 785 639 Finance costs 65,185 46,680 64,905 51,140 Net (loss)/income from financing activities (14,057) (19,627) 7,713 (3,735)
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 277 13. TAXATION Accounting policies Corporate Income tax (CIT) is recognised in the statement of profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equ ity, in which case the related tax is recognised in other comprehensive income or directly in equity. The current CIT is based on taxable profit for the year. Taxable profit differs from the accounting profit because of permanent and temporary differences between accounting and tax treatments (i .e. items that will never be taxable or deductible or will be taxable or deductible in other years). Deferred tax is recogn ized on temporary differences. Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the statement of financial position. Deferred tax is calculated using tax rates that have been enacted or substant ively enacted by the end of the reporting period and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or realized. Deferred tax assets are recognised where it is more likely than not that the assets will be realised in the future. At each balance sheet date, the Group and the Company re-assesses unrecognised deferred tax assets and the carrying amount of deferred tax assets. Deferred tax liability is recognized for all taxable temporary differences associated with investments in subsidiaries , except to the extent that the parent is able to control the timing of the reversal of the temporary difference; and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, which relate to income taxes imposed by the same taxation authority. Significant Accounting estimates and judgements Deferred tax assets are required to be estimated in each tax jur isdiction in which the Group and the Company operate. The evaluation and recognition of deferred tax assets requires management judgements regarding the likely timing and the availability of future taxable income. Deferred tax asset recoverabi lity is ba sed on the Group’s and the Company’s business plans, management’s judgement and interpretation of country specific tax law. The Group and the Company make judgements in assessing the likelihood of potentially material exposures and develops estimates to determine provisions where required and considers whether contingent liability disclosures should be made. Temporary exception related to Pillar Two income taxes according to IAS 12 The Company applies IAS 12 to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operat ion and Development (OECD), including tax law that implements qualified domestic minimum top-up taxes. In accordance with paragraph 4A of IAS 12, the Company applies the temporary exception and neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 278 13. TAXATION (continued) Group Company (in thousand euro) 2025 2024 2025 2024 Current tax expense 43,344 38,684 36,676 33,059 Deferred tax expense related to creation and reversal of temporary differences (7,700) 4,256 (7,236) 259 Global minimum tax 157 274 157 274 Income tax expense 35,801 43,214 29,597 33,592 Corporate income tax on profit recorded in Croatia is determined by applying the tax rate of 18% to the tax base determined in accordance with the tax regulations prevailing in Croatia. Taxation in other jurisdictions is calculated based on the prevailing rates applicab le there. The income tax, determined on the basis of the accounting profit, is assessed as follows: Group Company (in thousand euro) 2025 2024 2025 2024 Profit before tax 215,021 225,310 181,897 189,630 Income tax expense calculated at tax rate of 18% 38,704 40,556 32,741 34,133 Income tax effect from previous years (17) 1,041 1 818 Adjustments of deferred tax assets/liabilities related to previous years 2,861 3,624 155 (276) Income tax expense from operations in other jurisdictions (1,087) (889) 333 1 Tax effect of permanent differences (4,817) (1,392) (3,790) (1,358) Global minimum tax 157 274 157 274 Income tax expense 35,801 43,214 29,597 33,592 Effective tax rate 16.65% 19.18% 16.27% 17.71% Deferred tax assets and liabilities are determined by applying income ta x rates to be implemented in the period when the asset is realized or the liability is settled, based on tax rate s (and tax regulation) that have been enacted or put into effect at the end of the reporting period.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 279 13. TAXATION (continued) Movements in deferred tax assets and liabilities are set out in the following table: Group (in thousand euro) Impairment of property, plant and equipment and intangible assets Impairment of current assets Provisions Impairment of financial investments Tax losses Other Total At 1 January 2024 72,633 9,808 24,478 3,678 286 (872) 110,011 Charge directly to equity - - (22) 93 - - 71 Reversal of temporary differences (3,923) (2,377) (9,808) (6,596) (286) - (22,990) Origination of temporary differences 4,988 1,248 9,935 2,474 72 38 18,755 At 31 December 2024 73,698 8,679 24,583 (351) 72 (834) 105,847 Charge directly to equity - - 20 962 - - 982 Reversal of temporary differences (3,667) (1,264) (8,730) (1,974) (72) (12) (15,719) Origination of temporary differences 4,559 2,917 14,039 1,888 - - 23,403 At 31 December 2025 74,590 10,332 29,912 525 - (846) 114,513 Company (in thousand euro) Impairment of property, plant and equipment and intangible assets Impairment of current assets Provisions Impairment of financial investments Total At 1 January 2024 72,930 7,857 23,323 (1,031) 103,079 Charge directly to equity - - (16) 93 77 Reversal of temporary differences (3,554) (1,945) (9,617) (2,926) (18,042) Origination of temporary differences 4,806 983 9,558 2,436 17,783 At 31 December 2024 74,182 6,895 23,248 (1,428) 102,897 Charge directly to equity - - 46 962 1,008 Reversal of temporary differences (3,581) (905) (8,097) (1,964) (14,547) Origination of temporary differences 4,270 2,688 12,956 1,869 21,783 At 31 December 2025 74,871 8,678 28,153 (561) 111,141
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 280 13. TAXATION (continued) The effects of provisions included in the previous tables mo stly relate to provisions for bonuses, provisions based on IAS 19, provisions for emission units, for renewable energy sources, and for environmental protection. Group Company (in thousand euro) 2025 2024 2025 2024 Tax losses can be utilised: - without expiry - 10,619 - - - within 1 year - - - - - within 2 years 19 89 - - - within 3 years - 1,889 - - - within 4 years 69 398 - - - within 5 years 10,552 69 - - Total tax losses 10,640 13,064 - - Deferred tax on tax losses - 72 - - Unrecognised deferred tax on tax losses 2,335 2,534 - - On 1 January 2025, the government of the Republic of Slovenia has amend ed the statutory framework governing the limitation on the tax losses carried forward from previous years. T he previously unlimited right to carry forward tax losses (with no expiration period) has been abolished, and a five ‑year time limit has been implemented. Group Company (in thousand euro) 2025 2024 2025 2024 Unrecognised deferred tax assets on: - unused tax losses (without expiry) - 2,336 - - - unused tax losses (expiry within 5 years) 2,335 198 - - other temporary differences: - impairment of property, plant & equipment - - - - - provisions - - - - Total unrecognised deferred tax assets 2,335 2,534 - - Pillar Two global minimum tax On 20 December 2021, the Organisation for Economic Co-operation Development (OE CD) released the Pillar Two Model Rules. The Pillar Two Model Rules aim to establish a minimum effective tax rate for large multinational enterprises on the income generated in the countries where they operate. Under the legislation, the Group is liable to pay a top-up tax for the difference between its GloBE effective tax rate in each jurisdiction and the 15% minimum rate. Under the rules, transitional CbCR Safe Harbor rules may apply. These are temporary measures that allow multinational enterprises to avoid undertaking detailed GloBE rule based calculations if they can demonstrate, based on their CbCR data, that they meet one of the following tests for a jurisdiction: (i) reve nue and income below the de minimis threshold; (ii) an ETR that equals or exceeds an agreed rate; or (iii) no excess profit after excluding routin e profits.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 281 13. TAXATION (continued) Pillar Two global minimum tax (continued) With the exception of four countries, all jurisdictions where the Group operates are covered by the transitional CbCR safe harbours. These four countries are Bosnia and Herzegovina, Croatia, Egypt an d Serbia, which fall under the detailed GloBE calculation. Based on the detailed calculation the GloBE effective tax rate is above 15% in Croatia, Egypt and Serbia, while it is under 15% in Bosnia and Herzegovina. The Group’s current tax expense (income) for 2025 related to Bosnia and Herzegovina income taxes is EUR 157 thousand (2024: EUR 274 thousand). In accordance with paragraph 4A of IAS 12 the Group applies the temporary excepti on and neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 282 14. EARNINGS PER SHARE Group 31 December 2025 2024 Basic and diluted earnings per share (EUR per share) 17.90 18.18 Earnings Group 31 December 2025 2024 Earnings used in the calculation of total basic earnings per share 179,018 181,829 179,018 181,829 Number of shares Group 31 December 2025 2024 Number of shares Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share (in millions) 10 10 On 13 June 2025, the Regular Shareholders’ Assembly of the Company was held and the decision on dividend pay -out in the amount of EUR 120,000 thousand was made (EUR 12.00 per share). Dividend was p aid-out to shareholders on 11 July 2025, while on 14 June 2 024, the Regular Shareholders’ Assembly of the Company was held and th e decision on dividend pay-out in the amount of EUR 240,000 thousand was made (EUR 24.00 per share). Dividend was paid-out to shareholders on 14 July 2024. 15. INTANGIBLE ASSETS AND GOODWILL Accounting policies Intangible assets are recognized solely at cost of acquisition; the revaluation model is not applied. It is depreciated usi ng the straight-line method of amortization. For intangible assets acquired in a business combination, the cost is the fair value at the acquisition date. Following initial recognition, intangible assets, other than goodwill are stated at the amount initially recognised, less accumulated amortisation and accumulated impairment losses. Intangible assets, excluding development costs, created within th e business are not capitalised. Research costs are expensed as incurred. Development costs are capitalised if the recognition criteria according to IAS 38 are fulfilled. The carrying amount of intangible assets is tested for impairment at least annually in accordance with IAS 36, whenever an indicator of impairment arises during the reporting period suggesting that the carrying amount may not be recoverable. The carrying value of development costs is reviewed for impair ment annually when the asset is not yet in use or more frequently when an indicator of impairment arises during the r eporting year indicating that the carrying value may not be recoverable. The useful life of intangible assets are disclosed below: Software 5 years Patents, licenses, and other rights 5 years The residual values, useful lives and depreciation methods are reviewed at least annually.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 283 15. INTANGIBLE ASSETS AND GOODWILL (continued) Group (in thousand euro) Oil and gas properties Software Patents, licences and other rights Intangible assets under construction Emission quotas Goodwill Total Cost 64,694 118,169 20,572 14,172 11,495 26,837 255,939 Accumulated depreciation and impairment (32,466) (112,836) (17,576) - - (23,166) (186,044) At 1 January 2024 32,228 5,333 2,996 14,172 11,495 3,671 69,895 Additions 21,548 - - 9,656 39,665 - 70,869 Amortisation (5) (4,584) (853) - - - (5,442) Foreign exchange translation of foreign operations 147 - - - - - 147 Transfer to property, plant and equipment - - 1,182 (4,115) - - (2,933) Impairment (634) - - - - - (634) Disposal - (36) (1) - - - (37) Utilisation of emission quotas - - - - (33,974) - (33,974) Assets put in use, transfer (53) 8,505 86 (8,538) - - - Other - 2 - - - - 2 Cost 86,336 130,616 17,263 11,175 17,186 26,837 289,413 Accumulated depreciation and impairment (33,105) (121,396) (13,853) - - (23,166) (191,520) At 31 December 2024 53,231 9,220 3,410 11,175 17,186 3,671 97,893 Additions 4,251 - - 17,813 23,236 - 45,300 Amortisation (4) (4,140) (841) - - - (4,985) Foreign exchange translation of foreign operations (312) - - - - - (312) Transfer to property, plant and equipment - 373 331 (2,561) - - (1,857) Impairment (2,751) - - - - - (2,751) Utilisation of emission quotas - - - - (25,973) - (25,973) Assets put in use, transfer (1,533) 4,141 165 (2,773) - - - Cost 88,741 135,136 17,652 23,654 14,449 26,837 306,469 Accumulated depreciation and impairment (35,859) (125,542) (14,587) - - (23,166) (199,154) At 31 December 2025 52,882 9,594 3,065 23,654 14,449 3,671 107,315
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 284 15. INTANGIBLE ASSETS AND GOODWILL (continued) Company (in thousand euro) Oil and gas properties Software Patents, licences and other rights Intangible assets under construction Emission quotas Total Cost 64,694 120,771 14,402 13,639 11,503 225,009 Accumulated depreciation and impairment (32,465) (115,159) (12,274) - - (159,898) At 1 January 2024 32,229 5,612 2,128 13,639 11,503 65,111 Additions 21,547 - - 9,475 39,667 70,689 Amortisation (5) (4,502) (678) - - (5,185) Foreign exchange translation of foreign operations 147 - - - - 147 Transfer to property, plant and equipment - - 1,138 (4,114) - (2,976) Impairment (634) - - - - (634) Assets put in use, transfer (53) 7,971 184 (8,102) - - Utilisation of emission quotas - - - - (33,974) (33,974) Cost 86,335 128,741 15,724 10,898 17,196 258,894 Accumulated depreciation and impairment (33,104) (119,660) (12,952) - - (165,716) At 31 December 2024 53,231 9,081 2,772 10,898 17,196 93,178 Additions 4,251 - - 17,627 23,236 45,114 Amortisation (4) (4,090) (669) - - (4,763) Foreign exchange translation of foreign operations (312) - - - - (312) Transfer to property, plant and equipment - 374 331 (2,562) - (1,857) Impairment (2,751) - - - - (2,751) Assets put in use, transfer (1,533) 4,090 - (2,557) - - Utilisation of emission quotas - - - - (25,973) (25,973) Cost 88,741 133,205 16,055 23,406 14,459 275,866 Accumulated depreciation and impairment (35,859) (123,750) (13,621) - - (173,230) At 31 December 2025 52,882 9,455 2,434 23,406 14,459 102,636
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 285 15. INTANGIBLE ASSETS AND GOODWILL (continued) Carrying value of intangible exploration and evaluation assets The carrying amount of intangible exploration and evaluation assets amounted to EUR 52,882 thousand at the Group and the Company level at 31 December 2025 (2024.: EUR 53,231 thousand for the Grou p and the Company). At 31 December 2025, the Group and the Company recognized impairment in the amount of EUR 2,751 thousand (2024: EUR 634 thousand impairment for the Group and the Company). Goodwill Accounting policies Goodwill should be initially measured as of the acquisition d ate at its cost, being the excess of the cost of the busine ss combination plus any non-controlling interest and the acquisition date fair value of previously held equity interest in the acquiree over the net fair value of the identifiable assets, liabilities and contingent liabilities. As the excess of (a) over (b) below: a) the aggregate of: • the consideration transferred measured in accordance with IF RS 3, which generally requires acquisition-date fair value; • the amount of any non-controlling interest in the acquiree measured in accordance with IFRS 3; and • in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree. b) the net of the acquisition-date amounts of the identifiabl e assets acquired and the liabilities assumed measured in accordance with IFRS 3. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash generating units, or groups of cash generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Goodwill is required to be tested for impairment at least annually, regardless of whether any indicators of impairment exist. An impairment loss recognized for goodwill cannot be reversed subsequently, regardless of any subsequent improvements in performance or increases in estimated future cash flows, in accordance with IAS 36. Investment of Crosco, d.o.o. in Rotary Zrt. Hungary Group At 31 December (in thousand euro) 2025 2024 Goodwill 3,671 3,671 As at 31 December 2025 and 31 December 2024 goodwill relating to the company Rotary Zrt. was tested for impairment and the test showed that there is no need for impairment. At 31 December 2025 and 31 December 2024, the recoverable amount of Rotary Zrt. operatio ns were determined based on a value in use calculation using cash flow projections from financial budgets approved by the Company management covering a five-year period.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 286 15. INTANGIBLE ASSETS AND GOODWILL (continued) Goodwill (continued) The discount rate applied to cash flow projections is 8.7% (2024: 8.7%) and cash flows beyond the five-year period are prepared taking into consideration the historical average EBIT margin an d future predictions in the projected period. The growth rates are based on industry growth forecasts and Explorati on and production segment assumptions, whereby for this particular case no long-term growth rate is foreseen in lin e with expectations. The calculation of Rotary's value in use is most sensitive to the following assumptions: • Discount rates 8.7% (8.7% in 2024) • Average EBIT margin 5.5% (8.6% in 2024) A change in the estimates of these premises would influence the value in use of the CGU, having an impact on the amount of impairment recognised in relation to Rotary's net realisable val ue. The sensitivity analysis of the key assumptions used in the impairment test shows the following effects: • 1% increase in the discount rate indicates EUR 4,753 thousand decrease, 1% decrease results in EUR 6,750 thousand increase in the value in use. This change in the discoun t rate has no impact on the value of goodwill. • +/-1% alteration of the average EBIT margin indicates EUR 313 thousand difference in the value in use. This change in the EBIT margin has no impact on the value of goodwill. The average EBIT margin is based on management’s estimates. Discount rates rep resent the current market assessment of the risks specific to Rotary Zrt., taking into considerati on the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 287 16. PROPERTY, PLANT AND EQUIPMENT Accounting policy Property, plant and equipment Oil and gas properties Property, plant and equipment are carried at its cost less acc umulated depreciation and any accumulated impairment loss, except for land, which is stated at cost less any accumul ated impairment loss. The initial cost of property, plant and equipment comprises its purchase price, including impo rt duties and non-refundable purchase taxes and any directly attributable costs of bringing an asset to its working condition and location for its intended use. Expenditures incurred after property, plant and equipment have been put into operation are normally charged to statement of profit or loss in the period in which the costs are incurred. Oil and gas properties include capitalized decommissioning costs. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of an i tem of property, plant and equipment beyond its originally assessed standard performance, the expenditures are capi talised as property, plant and equipment. Costs eligible for capitalisation include costs of periodic, planned inspections and overhauls necessary for further operation. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit or loss in line other income or other material costs. Depreciation Property, plant and equipment in use (excluding oil and gas pro perties) are depreciated on a straight-line basis on the following basis: Buildings 5 - 50 years Refineries and chemicals manufacturing plants 3 - 15 years Machinery 2 - 25 years Service stations 30 years Vehicles 4 - 20 years Telecommunication and office equipment 2 - 10 years Capitalized exploration and development expenditures related t o domestic and foreign oil and gas fields in the production phase are depreciated using the unit of producti on method, in the proportion of actual production for th e period to the total estimated remaining commercial reserves of the field. The residual values, useful lives and depreciation methods are reviewed at least annually. During 2025 and 2024, there were no changes in the estimated useful life, residual value and depreciation methods. Residual value is always zero. Fields under development Oil and gas field development costs are capitalised as tangible oil and gas assets. Commercial reserves Commercial reserves are proved developed oil and gas reserves. Changes in the commercial reserves of fields affecting unit of production calculations are dealt with prospectively o ver the revised remaining reserves. The Group and the Company perform reserves determination by applying SPE PRMS (Society of Petroleum Engineers Petroleum Resources Management System) guidelines.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 288 16. PROPERTY, PLANT AND EQUIPMENT (continued) Accounting policies Significant accounting estimates and judgements Useful life of the assets The Group and the Company review the estimated useful lives of property, plant and equipment at the end of each reporting period. Estimation of useful life is considered to be a accounting estimation that effects on the change in depreciation rates. The new review of asset useful life at the e nd of 2025 had no material changes compared to the previous estimate. Increase of useful life of property plant and equipment by 5% results in decrease of depreciation of EUR 7,896 thousand (31 December 2024 decrease in the amount of EUR 7,094 th ousand). Decrease of useful life of property plant and equipment by 5% results in increase of depreciation by EUR 8,727 thousand in 2025 (2024: EUR 7,841 thousand increase). Impairment of property, plant and equipment and intangible assets At least annually and whenever there is an indication that t he assets may be impaired, the Group and the Company review the carrying amounts of its property, plant and equi pment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent o f the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Grou p and the Company estimate the recoverable amount of the cash-generating unit to which the asset belongs. It may occur that an asset is operated within a technical environment that does not allow its individual value in use to be measured separately, because its recoverable amount can only be d etermined through the combined output of several assets that are managed together as a single cash generating unit. I n such a case that smallest asset group should be defined whose continued use results in such positive cash flow that can be separated from the cash flow of other assets or asset groups. Assessment of impairment should be performed for the asset group defined in such a way, as if the asset group itself was an indivisible asset. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smal lest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of di sposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present v alue 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 which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is e stimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced t o its recoverable amount. An impairment loss is recognised immediately within profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impai rment loss been recognised for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 289 16. PROPERTY, PLANT AND EQUIPMENT (continued) Group (in thousand euro) Oil and gas properties Land and buildings Plant and equipment Vehicles and office equipment Assets under construction Total Cost 5,584,250 1,547,873 1,972,332 358,967 486,098 9,949,520 Accumulated depreciation and impairment (5,229,998) (1,118,701) (1,597,852) (309,575) (23,716) (8,279,842) Net book value at 1 January 2024 354,252 429,172 374,480 49,392 462,382 1,669,678 Additions 69,467 - - - 197,889 267,356 Depreciation charge (62,807) (17,986) (64,139) (12,723) - (157,655) Impairment (13,980) 88 1,925 40 (157) (12,084) Change in capitalised decommissioning cost 49,429 - - - - 49,429 Assets put in use, transfer (693) 30,883 99,959 23,385 (153,534) - Transfer from intangible assets - 2 3,804 265 (1,138) 2,933 Transfer to investment property - (4,372) (1,237) 1,208 - (4,401) Disposals (95) (332) (107) (39) (609) (1,182) Currency translation, FX of foreign operations 775 - - - - 775 Other movements (19) 194 20 (126) - 69 Cost 5,696,990 1,529,479 2,088,702 343,971 528,705 10,187,847 Accumulated depreciation and impairment (5,300,661) (1,091,830) (1,673,997) (282,569) (23,872) (8,372,929) Net book value at 31 December 2024 396,329 437,649 414,705 61,402 504,833 1,814,918 Additions 91,132 105 39 13 166,366 257,655 Depreciation charge (63,947) (29,760) (67,609) (13,330) - (174,646) Impairment (16,007) - - - - (16,007) Change in capitalised decommissioning cost (12,033) - - - - (12,033) Assets put in use, transfer (910) 26,340 78,496 17,201 (121,127) - Transfer from intangible assets - 20 1,874 667 (704) 1,857 Transfer to investment property - - - - (30) (30) Disposals - (52) (37) (32) - (121) Currency translation, FX of foreign operations (1,651) - - - - (1,651) Other movements (203) 68 180 (15) - 30 Cost 5,787,120 1,556,010 2,139,855 360,869 573,210 10,417,064 Accumulated depreciation and impairment (5,394,410) (1,121,640) (1,712,207) (294,963) (23,872) (8,547,092) Net book value at 31 December 2025 392,710 434,370 427,648 65,906 549,338 1,869,972
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 290 16. PROPERTY, PLANT AND EQUIPMENT (continued) Company (in thousand euro) Oil and gas properties Land and buildings Plant and equipment Vehicles and office equipment Assets under construction Total Cost 5,584,250 1,338,641 1,720,283 301,285 540,991 9,485,450 Accumulated depreciation and impairment (5,229,066) (1,004,917) (1,462,771) (260,418) (23,716) (7,980,888) Net book value at 1 January 2024 355,184 333,724 257,512 40,867 517,275 1,504,562 Additions 69,466 - - - 181,434 250,900 Depreciation charge (62,974) (22,646) (53,832) (9,697) - (149,149) Impairment (13,982) - - - (157) (14,139) Change in capitalised decommissioning cost 53,429 - - - - 53,429 Assets put in use, transfer (693) 27,820 89,279 18,977 (135,383) - Transfer from intangible assets - 2 3,848 265 (1,138) 2,977 Transfer to investment property - (4,729) - - - (4,729) Disposals (95) (259) (58) (17) - (429) Currency translation, FX of foreign operations 942 - - - - 942 Other movements (18) 106 - (127) - (39) Cost 5,717,918 1,311,452 1,792,072 315,988 585,902 9,723,332 Accumulated depreciation and impairment (5,316,659) (977,434) (1,495,323) (265,720) (23,871) (8,079,007) Net book value at 31 December 2024 401,259 334,018 296,749 50,268 562,031 1,644,325 Additions 91,132 - - - 145,289 236,421 Depreciation charge (65,217) (24,791) (65,739) (10,061) - (165,808) Impairment (16,395) - - - - (16,395) Change in capitalised decommissioning cost (4,399) - - - - (4,399) Assets put in use, transfer (910) 23,775 66,236 14,471 (103,572) - Transfer from intangible assets - 20 1,874 667 (704) 1,857 Transfer to investment property - - - - (32) (32) Disposals - (47) (8) (10) - (65) Currency translation, FX of foreign operations (1,650) - - - - (1,650) Other movements (203) (29) - (271) - (503) Cost 5,803,779 1,332,711 1,852,166 329,440 626,883 9,944,979 Accumulated depreciation and impairment (5,400,162) (999,765) (1,553,054) (274,376) (23,871) (8,251,228) Net book value at 31 December 2025 403,617 332,946 299,112 55,064 603,012 1,693,751
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 291 16. PROPERTY, PLANT AND EQUIPMENT (continued) I) Oil and gas reserves The ability of the Group and the Company to realise the net book v alue of oil and gas properties in the future depends on the extent to which commercially recoverable oil and gas reserves are av ailable. During 2025, Exploration and Production assessed the quantities of the Company’s remaining proved and probable develop ed oil and gas reserves which were commercially recoverable. II) Ownership of land and buildings Due to political developments in Croatia since 1990, certain local mun icipal land registers have not been fully established. The Company is in the process of registering its ownership, through the local courts in Croatia. As of the date of issuance of these financial statements, no request has been made to the Company regarding evidence of ownership rights over the assets, except in initiated court proceedings in which the parties regularly submit evidence of ownership rights for the real estate for which the land register records are being corrected. The Company and the Group have control over the respective assets, which are recognized and recorded in accounting records in accordance with the applicable accounting standards. The assets of the Group and the Company are not pledged as collateral. III) Carrying value of property, plant and equipment The increase in assets under construction is primarily attributable to the continued investments in the Residue Upgrade Facility at RNR, as well as intensified investments in development projects in the Adriatic and production optimisation activities in the Pannonian region. The Management Board identified and assessed the impairment in dicators in accordance with IAS 36. An impairment test was performed on assets where impairment indicators have been id entified. The impairment calculation requires the estimate of the value in use of the cash generating units. Value in use is measured using the discounted cash flow projections. The most material variables in determining cash flows are expected oil and gas prices, production volumes, operating and capital expenditures, discount rates, period of cash fl ow projections, as well as assumptions and judgments used in determining cash receipts and payments. In 2025, the Group’s impairment charge amounted to EUR 17,221 thousand and reversal of impairment amounted to EUR 1,214 thousand, while the Company’s impairment charged amounted also EUR 17,609 thousand and reversal of impairment amounted to EUR 1,214 thousand (2024: the Group’s impairment of EUR 15,224 thousand and reversal of impairment EUR 3,140 thousand. The Company’s impairment of EUR 15,243 thousand and reversal of impairment EUR 1,104). Carrying value of production oil and gas assets The carrying amount of production oil and gas assets amounted to EUR 392,710 thousand at 31 December 2025 (2024: EUR 396,329 thousand). The post-tax discount rates used in the current assessment in 2025 and in 2024 are asset specific and are as follows: Exploration and Production December 2025 December 2024 Croatia, Egypt 7% - 13% 7% - 12%
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 292 16. PROPERTY, PLANT AND EQUIPMENT (continued) IV) Carrying value of property, plant and equipment (continued) Impairment (Significant accounting estimates and judgements) Impairment indicators During the financial year the following impairment indicators were recogni sed: change in oil and gas price, discount rates and change in reserve volume. Significant assumptions The price and margin assumptions used in impairment testing are revie wed annually and approved by management. They are based on management’s best estimate and were consistent with external sources. Prices in the near term are based on recent forward prices and market developments; long-term price assumptions a re developed considering long-term views of global supply and demand including analysis of industry expe rts. Long-term assumptions take into consideration the impacts of the climate change. Brent prices beyond the planning horizon are modelled by matchin g the global oil cost curve with the in-house global oil demand projection. CEGH (Central European Gas Hub) natural gas prices beyond the plan ning horizon are set to be in line with the average break-even price of new global Liquefied natural gas (LNG) projects (based on In ternational Energy Agency (IEA)). CO2 quota prices beyond the planning horizon are modelled by the projected ETS EUA demand-supply balance capped by the projected breakeven prices of green Hydrogen projects. The Group's current strategy includes ‘green’ targets aligned with global trends in decarbonisation. Group has included the required capital expenditures for decarbonization in the cash flows f or the CGU’s to achieve its strategic goal of climate neutrality by 2050, and, in line with the announced strategy achieve CO2 emission reduction by 2030 as planned under Scope 1+2. 2025 key assumptions for impairment testing 2026-2027 2028-2029 2030 2040 2050 (nominal terms) (average) (average) Brent oil price (USD/bbl) 65 70 86 106 121 CEGH Gas price (EUR/MWh) 37 37 40 41 44 CO₂ price EUA (EUR/t) 80 89 116 151 194 2024 key assumptions for impairment testing 2025-2027 2028-2029 2030 2040 2050 (nominal terms) (average) (average) Brent oil price (USD/bbl) 85 80 80 89 90 CEGH Gas price (EUR/MWh) 31 39 43 44 36 CO₂ price EUA (EUR/t) 80 105 119 194 197
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 293 16. PROPERTY, PLANT AND EQUIPMENT (continued) IV) Carrying value of property, plant and equipment (continued) Impairment (Significant accounting estimates and judgements) (continued) Calculation method of the applied discount rates The discount rate reflects the overall market assessment of risk, includ ing expectations regarding the impact of climate change. The discount rate used for valuations considers the weighted ave rage cost of equity and net borrowings. The cost of equity is calculated using the Capital Asset Pricing Model (CAPM), which describes the relationship between market risk and the expected returns. The beta value expresses the volatility and market risk of a stock relative to a market index. The beta value in each segment is determined on the regressed stock market returns of each company of the peer group to the return of the market index. The discount rate used for valuations considers the risk of climate change through these industry beta values. After taking the simple average of the betas to determine the segment beta, it is adjusted for the leverage and associated tax shield effect using ratios specific to the Group. The Group WACC, (Weighted Average Cost of Capital) is then adjusted by the country specific risk factors to get country-by-country discount rate. In 2025 and 2024 the following significant impairment losses and impairment reversals were recognised. Impairment losses are reported as positive values, while reversals of impairment losses are shown as negative values. Impairments and write-offs (without dry holes) 2025 (in thousand euro) Exploration & Production Refining & Marketing, Consumer services & Retail Corporate & other Total Croatia 10,128 - - 10,128 Egypt 1,821 - - 1,821 Total 11,949 - - 11,949 Impairments and write-offs (without dry holes) 2024 (in thousand euro) Exploration & Production Refining & Marketing, Consumer services & Retail Corporate & other Total Croatia 11,447 - - 11,447 Egypt 1,271 - - 1,271 Total 12,718 - - 12,718
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 294 16. PROPERTY, PLANT AND EQUIPMENT (continued) IV) Carrying value of property, plant and equipment (continued) Impairment (Significant accounting estimates and judgements) (continued) Exploration and Production recorded: • At Group level impairment of fixed assets in the amount of EUR 17,221 thousand in 2025 w as recognized (Beničanci EUR 4,921 thousand; Egypt East Damanhur EUR 1,829 thousand; Vučkovec EUR 1,171 thousand ; Mosti EUR 860 thousand; Irina EUR 886 thousand; Mramor Brdo EUR 1,203 thousand; Marica EUR 560 tho usand; Janja Lipa EUR 334 thousand; Kućanci Kapelna EUR 245 thousand; Letičani EUR 371 thousand; Crnac EUR 404 tho usand; Other EUR 146 thousand; and investment value adjustments of EUR 4,292 thousand: Gola 4 EUR 3,189 thousand; Ras Qatara EUR 1,103 thousand). In 2025, the Group recognized a reversal of impairment in the amount o f EUR 1,214 thousand (Ivana EUR 955 thousand; Ida EUR 259 thousand). In 2024, Exploration and Production recognized at Group level asset impairments in the amount of EUR 15,224 thousand (Ivana EUR 4,025 thousand; Ida EUR 3,602 thousand; Stari Gradac EUR 2,509 thousand; Števkovica EUR 1,250 thousand; Crnac EUR 781 thousand; Irina EUR 491 thousand; Marica EUR 429 thousand; Obod EUR 290 tho usand; Other EUR 260 thousand; decommissioning assets of non ‑producing fields EUR 282 thousand; and investment value adjustments of EUR 1,305 thousand: Ras Qatara EUR 1,271 thousand; Lipovljani EUR 34 thousand). In 2024 , the Group recognized a reversal of impairment in the amount of EUR 1,085 thousand (Hrastilnica EUR 527 thousand; Mramor Brdo EUR 276 thousand; decommissioning assets of non‑producing fields EUR 282 thousand). • At Company level impairment of fixed assets in the amount of EUR 17,609 thousand in 2025 were recognized (Beničanci EUR 4,921 thousand; Egypt East Damanhur EUR 1,829 thousand; Irina EUR 1,086 thousand; Vučkove c EUR 1,171 thousand; Mosti EUR 860 thousand; Mramor Brdo EUR 1,203 thousand; Marica EUR 739 thousand; Janja Lipa EUR 342 thousand; Kućanci Kapelna EUR 246 thousand; Letičani EUR 371 thousand; Crnac EUR 404 tho usand; Other EUR 146 thousand; and investment value adjustments of EUR 4,292 thousand: Gola 4 EUR 3,189 thousand; Ras Qatara EUR 1,103 thousand). In 2025, the Company recognized a reversal of impairment in the amount of EUR 1,214 thousand (Ivana EUR 955 thousand; Ida EUR 259 thousand). In 2024, asset impairments were recognized in the amount of EUR 15,243 thousand (Ivana EUR 4,025 thousand; Ida EUR 3,602 thousand; Stari Gradac EUR 2,509 thousand; Števkovica EUR 1,250 thousand; Crnac EUR 781 thousand; Irina EUR 491 thousand; Marica EUR 429 thousand; Obod EUR 290 thousand; Other EUR 260 tho usand; decommissioning assets of non‑producing fields EUR 301 thousand; and investment value adjustments of EUR 1,305 thousand: Ras Qatara EUR 1,271 thousand; Lipovljani EUR 34 thousand). In 2024, the Company recognized a reversal of impairment in the amount of EUR 1,104 thousand (Hrastilnica EUR 527 thousand; Mramor Brdo EUR 276 thousand; d ecommissioning assets of non‑producing fields EUR 301 thousand).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 295 16. PROPERTY, PLANT AND EQUIPMENT (continued) IV) Carrying value of property, plant and equipment (continued) Carrying value of Refining and Marketing assets The carrying amount of Refining and Marketing assets amounted to EUR 1,263,588 thousand at 31 December 2025 (2024: EUR 1,214,683 thousand). Estimated value in use of Refining and Marketing assets would be EUR 247,104 thousand higher (lower) if the diesel and gasoline crack spreads would increase (decrease) by 5% in the long run. An increase in the discount rate by 1 percentage point would reduce the estimated value of Refin ing and Marketing assets at 31 December 2025 by EUR 127,827 thousand, while a decrease by 1 percentage point would i ncrease the estimated value of Refining and Marketing assets by EUR 150,266 thousand. Refining and Marketing, Consumer services and Retail did not record impairment of property, plant and equipment in 2025 and 2024. Carrying value of Corporate and Other assets The carrying amount of Corporate and other assets amounted to EUR 77,965 thousand at 31 Dece mber 2025 (2024: EUR 79,469 thousand). At the Group level, Corporate and Other reported no impairment los ses or reversals of impairment on property, plant and equipment, in 2025 or in 2024. V) Internal labour capitalisation Capitalised internal labour includes all direct labour costs that can be identified or associated with and are properly allocable to the construction, modification, or installation of specific items of capital assets and, as such, can be amortised. In 2025 , the Group and the Company capitalised internal labour in amount of EUR 5,725 thou sand (2024: EUR 5,597 thousand). VI) Capitalised value of own performance In 2025, the Group capitalised the total amount of EUR 66,574 thousand (2024: E UR 59,684 thousand) of internal costs as property, plant and equipment. The total costs comprise drilling, overh aul and auxiliary works on oil and gas fields in the amount of EUR 43,683 thousand (2024: EUR 31,192 thousand), capital maintenance on buildings, plants and petrol stations in the amount of EUR 20,664 thousand (2024: EUR 25,980 thousand) and other costs in the amount of EUR 1,838 thousand (2024: EUR 2,512 thousand). In the same period, the Company capitalised the to tal amount of EUR 7,918 thousand (2024: EUR 6,397 thousand) of internal costs as property, plant and equipment. VII) Review of the residual value The Group and the Company have reviewed the residual value for d epreciation purposes and no need for any adjustment to the residual values related to the current or prior periods has been established. The useful life of decommissioning assets has been adjusted to reflect the economic life of the fields.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 296 16. PROPERTY, PLANT AND EQUIPMENT (continued) VIII) Borrowing costs Accounting policies Borrowing costs directly attributable to the acquisition, con struction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those ass ets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisati on. Used capitalisation rate for 2025 was 2,55% and 2024 was 3.94%. All other borrowing costs are recognised in profit or loss i n the year in which they are incurred. Borrowing costs consist of interest and other costs that the Group and the Company incur in connection with the borrowing of funds. Property, plant and equipment include borrowing costs incurred in connecti on with the construction of qualifying assets. Additions to the gross book value of property, plant and equipment include borrowing costs of EUR 9,185 thousand in 2025 for the Group and the Company (2024: EUR 9,557 thousand). 17. INVESTMENT PROPERTY Accounting policies Investment property is a property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services or for administrative purposes, or sale in t he ordinary course of business. In the Group and the Company, investment property is measured using the cost model. For investment properties, the cost model is applied by the Group an d the Company. Transfer to, or from, investment property shall be examined when there is an evident change in use. The Group and the Company apply straight-line method depreciation, where building’s useful life estimate ranges from 5-50 years. Group Company (in thousand euro) 2025 2024 2025 2024 Cost 200,373 184,523 170,356 157,769 Accumulated depreciation and impairment (169,279) (156,774) (152,345) (144,073) Net book value at 1 January 31,094 27,749 18,011 13,696 Depreciation (979) (1,054) (382) (412) Disposals (14) (2) (13) (2) Transfer to / from property, plant and equipment (107) 4,401 31 4,729 Net book value at 31 December 29,994 31,094 17,647 18,011 Cost 200,115 200,373 170,372 170,356 Accumulated depreciation and impairment (170,121) (169,279) (152,725) (152,345) There has been no change to the valuation methodology during the ye ar. The fair value of the Group’s and Company’s investment property are based on valuations prepared by independent valuers, together with management’s consideration of current market conditions. At 31 December 2025, the fair value of the Group’s and the Company’s i nvestment property amounts to EUR 148.511 thousand and EUR 77,956 thousand, respectively. At 31 Decembe r 2024, the fair value of the Group’s and the Company’s investment property amounts to EUR 132,976 thousand and EUR 67,927 thousand, respectively.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 297 17. INVESTMENT PROPERTY (continued) Group (in thousand euro) 2025 2024 Rental income from investment property 4,839 4,152 Operating expenses (including repairs and maintenance) arisin g from investment property that generated rental income during the period 1,390 1,168 Operating expenses (including repairs and maintenance) arisin g from investment property that did not generate rental income during the period 91 88 18. INVESTMENTS IN SUBSIDIARIES (in the separate financial statements of INA, d.d.) The following portfolio changes were recorded in 2025 and 2024: Company (in thousand euro) 2025 2024 At 1 January 296,598 238,091 INA Slovenija - (impairment)/reversal of impairment (1,019) (3,405) Hostin - share capital increase - 47,737 INA Crna Gora - share capital increase - 10,000 INA Industrijski servisi d.o.o. - reversal of impairment/(impairment) - 2,836 Energopetrol - reversal of impairment/(impairment) - 1,339 At 31 December 295,579 296,598 The following portfolio changes were recorded in 2025: Pursuant to the decision of the Commercial Court in Banja Luka dated 15 August 2025, INA Banja Luka was liquidated. At the time of liquidation, the net value of the shares amounted to zero. In 2025, INA, d.d. recorded an impairment of its investment in INA Slovenia in amo unt of EUR 1,019 thousand. The following portfolio changes were recorded in 2024: Based on the decision of the Commercial Court dated 18 March 2024 Hostin d.o .o. has increased its share capital by EUR 47,737 thousand. Based on the decision of the Commercial Court decision dated 7 October 2024 IN A Crna Gora d.o.o. increase the share capital of the company in the amount of EUR 10,000 thousand. In 2024, the Company has recognised the impairment of investment in INA Slovenia in the amount of EUR 3,405 thousand, the reversal of impairment of investment in Energopetrol in the amount of EUR 1,339 thousand and reversal of impairment of investment in INA Industrijski servisi d.o.o. in amount of EUR 2,836 thousand.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 298 18. INVESTMENTS IN SUBSIDIARIES (in the separate financial statements of INA, d.d.) (continued) The following are subsidiaries in which the Company has a share (*subsidiary indirectl y owned by the Company): Composition of the Group Name of subsidiary Principal activity Place of incorporation and operation Proportion of ownership interest and voting power held by the Group At 31 December 2025 2024 Oilfield services *CROSCO, naftni servisi d.o.o. Oilfield services Croatia 100% 100% *Rotary Zrt. Oilfield services Hungary 100% 100% *CROSCO UKRAINE LLC. Oilfield services Ukraine 100% 100% *Crosco S.A. DE C.V. Oilfield services Mexico 99.90% 99.90% Tourism Hostin d.o.o. Asset management, tourism Croatia 100% 100% Ancillary services *STSI Integrirani tehnički servisi d.o.o. Technical services Croatia 100% 100% Top Računovodstvo Servisi d.o.o. Accounting services Croatia 100% 100% *Plavi tim d.o.o. IT services Croatia 100% 100% INA Vatrogasni Servisi d.o.o. Firefighting Croatia 100% 100% INA Industrijski Servisi d.o.o. Holding company Croatia 100% 100% Production and trading INA MAZIVA d.o.o. Production and lubricants trading Croatia 100% 100% Trading INA Slovenija d.o.o. Ljubljana Trading Slovenia 100% 100% Holdina d.o.o. Sarajevo Wholesale of fuels Bosnia and Herzegovina 100% 100% INA d.o.o. Beograd Trading Serbia 100% 100% INA Kosovo d.o.o. Trading Kosovo 100% 100% Adriagas S.r.l. Milano Pipeline project company Italy 100% 100% INA Crna Gora d.o.o. Podgorica Foreign trading Montenegro 100% 100% CROPLIN d.o.o. Distribution of gas fuels Croatia 100% 100% INA Maloprodajni servisi d.o.o. Trade agency Croatia 100% 100% Energopetrol d.d. Retail (oil and lubricant) Bosnia and Herzegovina 88.66% 88.66% INA BL d.o.o. Banja Luka Trading Bosnia and Herzegovina - 100%
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 299 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES Accounting policies Statement of financial position An associate is an entity over which the Group has significan t influence, and which is neither a subsidiary nor a joint venture. An arrangement is under joint control when the decisions abo ut its relevant activities require the unanimous consent of t he parties sharing the control of the arrangements. Joint arrangements c an be joint operation and joint venture. The type of the arrangement should be determined by considering the rights an d obligations of the parties arising from the arrangement in the normal course of business. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement. The Group’s investments in its associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment in the associate is carried at cost plus post-acquisition changes in the Group’s share of net assets. Goodwill relating to an undertaking is included in the carrying amount of the investment and is not amortised. An investment in an associate is accounted for using the cost method on separate financial statements from the date on which the investee becomes an associate. Investments in associates and joint ventures are assessed to determine whether there is any objective evidence of impairment. If there is evidence of impairment the recoverable amount of the investment is determined to identify any impairment loss to be recognised. Where losses were made in previous years, an assessment of t he factors is made to determine if any loss may be reversed. Statement of profit or loss The statement of profit or loss reflects the share of the re sults of operations of the associate and joint ventures. Profit s and losses resulting from transactions between the Group and the equity accounted undertakings are eliminated to the extent o f the interest in the undertaking. Impairment losses on associates and joint ventures for the period is recognised as a reduction on Share of after-tax results of associates and joint ventures line in the Statement of profit or loss. Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Investments in associates 131,266 132,809 126,587 126,587 Investment in joint ventures 1 1 1 1 Total 131,267 132,810 126,588 126,588 Group Company (in thousand euro) 2025 2024 2025 2024 At 1 January 132,810 129,317 126,588 121,156 Movements (1,543) 3,493 - 5,432 At 31 December 131,267 132,810 126,588 126,588
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 300 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued) The Group has direct and indirect interests in other entities as follows: (in thousand euro) Group Name of company Activity Place of incorporation and operation 31 December 2025 31 December 2024 Carrying value of investments accounted for using the equity method as at 31 December 2025 Carrying value of investments accounted for using the equity method as at 31 December 2024 Hayan Petroleum Company* Operating company (oil exploration, development and production) Damascus, Syria 50% 50% - - ED INA d.o.o. Zagreb* Research, development and hydrocarbon production Zagreb, Croatia 50% 50% 1 1 Plinara Pula d.o.o. Distribution and supply of gas Pula, Croatia 49% 49% 2,594 2,781 MOL & INA d.o.o. Oil trading Koper, Slovenia 33% 33% 127,161 128,816 TGA Stolac Production of wire, chain and spring products Stolac, Bosnia & Herzegovina 25.75% 25.75% - - Plinara istočne Slavonije Distribution network of gas fuels Vinkovci, Croatia 40% 40% 1,511 1,212 131,267 132,810 *Investments that are joint ventures at the Group and the Company
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 301 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued) The Company has direct and indirect interests in other entities as follows: (in thousand euro) Company Name of company Activity Place of incorporation and operation 31 December 2025 31 December 2024 Carrying value of investments accounted for using the equity method as at 31 December 2025 Carrying value of investments accounted for using the equity method as at 31 December 2024 Hayan Petroleum Company* Operating company (oil exploration, development and production) Damascus, Syria 50% 50% - - ED INA d.o.o. Zagreb* Research, development and hydrocarbon production Zagreb, Croatia 50% 50% 1 1 Plinara Pula d.o.o. Distribution and supply of gas Pula, Croatia 49% 49% 2,331 2,331 MOL & INA d.o.o. Oil trading Koper, Slovenia 33% 33% 124,256 124,256 TGA Stolac Production of wire, chain and spring products Stolac, Bosnia & Herzegovina 25.75% 25.75% - - 126,588 126,588 *Investments that are joint ventures at the Group and the Company
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 302 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued) Non-material associates and joint operations are as follows: Hayan Petroleum Com pany, ED - INA d.o.o. Zagreb and TGA Stolac. In 2025, under the equity method, the Group recognized a share of net profit in the amount of EUR 4,552 thousand, which consists of a share of profit in MOL&INA of EUR 4,439 thousand, a share of loss in Plinara Pula of EUR 187 thousand, and a share of profit in Plinara Istočne Slavonije of EUR 299 thousand. (2024: share of net profit of EUR 5,533 thousand, of which share in profit relates to MOL&INA EUR 5,417 thousand, Plinara Pula EUR 91 tho usand and Plinara Istočne Slavonije EUR 25 thousand), presented in line Share in profit in associated companie s accounted for using the equity method of the statement of profit or loss. Summarised statements of financial position and comprehensive income of MOL & INA d.o.o. (INA, d.d. 33% share) Place of incorporation and operation Koper, Slovenia Koper, Slovenia (in thousand euro) 2025 2024 Non-current assets 270,918 289,066 Current assets 157,288 130,751 Non-current liabilities (18,021) (11,208) Current liabilities (81,830) (75,240) Net assets 328,355 333,369 Group's share of assets 108,357 110,012 Goodwill 18,804 18,804 Carrying amount of the investment 127,161 128,816 Total operating income 511,868 610,922 Profit from operations 17,191 19,990 Net profit 13,451 16,413 INA Group share of profit (33%) 4,439 5,416
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 303 20. OTHER NON-CURRENT FINANCIAL ASSETS Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Receivables from long-term contracts 82,145 81,064 82,145 81,064 Long-term loans to subsidiaries - - 18,090 30,276 Receivables for apartments sold 339 585 339 585 Derivative financial instruments 12 - 12 - Deposits 3 2 - - Total 82,499 81,651 100,586 111,925 Intragroup financing terms, i.e., arm's length price of the Group companies' loan transactions is determined consistently based on internal and external comparable transactions using Comparable uncontrolled price m ethod. As at 31 December 2025, intragroup loans are denominated in euros and are, in most cases, unsecured. Receivables from non-current contracts, carried at amortized cost, present receivab les from ENI International BV relating to decommissioning obligation for North Adriatic assets. These receivables are defined in the Sales and Purchase Agreement from 2018, and the expected collection of the full amount is by end of 2036. 21. OTHER NON-CURRENT ASSETS Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Prepayments for property, plant, and equipment 20,256 37,154 19,912 36,632 Prepayments for intangible assets 1,170 66 1,170 66 Non-current receivables from related parties - - 31 31 Other non-current receivables 1,023 1,034 1,023 1,034 Total 22,449 38,254 22,136 37,763
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 304 22. NON-CURRENT FINANCIAL ASSETS Group and Company Fair value of investment Company name Activity Place of incorporation and operation 31 December 2025 31 December 2024 31 December 2025 31 December 2024 Jadranski Naftovod d.d. Pipeline ownership and operations Zagreb, Croatia 11.795% 11.795% 92,707 98,055 Hoc Bjelolasica d.o.o. Sport facilities activities Jasenak, Croatia - 7.17% - - Bina Fincom d.d. Construction of motorways and other roads, and airport airfields Zagreb, Croatia 5.00% 5.00% - - 2025 2024 At 1 January 98,055 98,650 Remeasurement recognition in OCI, gross of income tax (5,348) (595) At 31 December 92,707 98,055
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 305 22. NON-CURRENT FINANCIAL ASSETS (continued) The equity share value in Jadranski Naftovod d.d. (“JANAF”) was reported b y reference to the market value of a share as quoted on the Zagreb Stock Exchange at 31 December 2025. The fair value of the equity investment in JANAF decreased by EUR 5,348 thousand compared to the balance at 31 December 2024 due to an decreas e in the market value of the JANAF shares on the Zagreb Stock Exchange. The market value of the shares (118,855 shares) at 31 Dece mber 2025 amounted to EUR 780 per share (31 December 2024: EUR 825 per share). On 7 April 2025, the Commercial Court officially recorded the deletion of H OC Bjelolasica from the register. At the time of deregistration, the net investment value was nil. 23. INVENTORIES Accounting policies Inventories include assets held for sale in the ordinary cour se of business; assets in the process of production for such sale; and materials and supplies to be consumed in the production process or in the rendering of services. Inventories are measured at the lower of cost or net realizable value. The cost of inventories includes all the costs of purchase and conversion and all other expenses that were incurred to have the inventories get to their present location and condition. The weighted average cost method is applied to inventory cost. Net realizable value Net realizable value is calculated as 98.63% for 2025 and 98.49% for 2024 of expec ted sales price and it is based on the most reliable evidence available at the time the estimates are made. Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Refined products 104,559 120,356 94,113 111,941 Crude oil 119,551 109,248 119,551 109,247 Work in progress 78,454 84,222 78,393 84,145 Merchandise 56,566 41,492 50,019 36,126 Raw material 52,895 61,076 45,132 51,935 Spare parts, materials and supplies 19,501 15,220 12,929 9,749 Total 431,526 431,614 400,137 403,143 In 2025, EUR 5,759 thousand was recognized impairment of refined products and work in progress for the Group and the Company (2024: EUR 4,180 thousand was recognized as reversal of impairment for the Group and the Company). This impairment is presented under the Changes in inventories of fini shed products and work in progress line in consolidated and separate statement of profit or loss. In 2025, EUR 2,661 thousand was recognized as impairment of merchandise for the Group and the Company (2024: EUR 1,572 thousand was recognized as reversal of impairment for the Group and the Company). This impairment and reversal of impairment is presented under the Cost of goods sold line in consolidated and separate statement of profit or loss. In 2025, the Group recognized the cost of sold crude oil and goods and f inished products in the amount of EUR 3,329,040 thousand (2024: cost of sold goods and finished products EUR 3,354,592 thousand).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 306 23. INVENTORIES (continued) In the Company recognized the cost of sold crude oil, goods and finished products in the amount of EUR 2,868,992 tousand (2024: cost of sold goods and finished products EUR 2,933,724 thousand). In 2025, the Group recognized the capitalised value of production costs in the amount of EUR 2,287,577 thousand (2024: EUR 1,856,426 thousand). In 2025, the Company recognized the capitalised value of production costs in the amount of EUR 1,899,098 thousand (2024: EUR 1,501,837 thousand). In 2025, cost of raw materials and consumables in the Group amount to EU R 1,725,336 thousand and mainly consist of crude oil costs of EUR 1,269,688 thousand and gasoline and biocomponents costs of EUR 301,296 thousand (2024: EUR 1,361,413 thousand, mainly crude oil costs of EUR 970,434 thousand and gasoline and biocomponent costs of EUR 253,503 thousand). In 2025, cost of raw materials and consumables in the Company amounted to EUR 1,690,073 thousand and mainly consisted of crude oil costs of EUR 1,269,693 thousand and gasoline and biocomponent cost s of EUR 309,751 thousand (2024: EUR 1,333,066 thousand, mainly crude oil costs of EUR 970,434 thousand and gasoline and biocomponent costs of EUR 259,207 thousand). 24. TRADE RECEIVABLES (NET) Accounting policies Trade receivables are carried at amortised cost less impairment. Receivables from customers are shown in amounts identified in the invoices issued to customers in accordance with agreeme nts, orders, delivery notes and other documents which serv e as basis for invoicing, decreased with impairment of receivables. Accrued revenues are recorded at the end of reporting pe riod for delivered goods or services if they have not been in voiced yet. The Group and the Company apply the simplified approach to recognise full lifetime expected losses from origination for trade receivables, IFRS 15 contract assets and lease receivables. The Group and the Company calculate the expected credit loss on trade receivables as the average of yearly historical loss rates of the last three years multiplied by the forward-looking element. The forward-looking element is based on robust positive correlation between banking sector credit losses and one year lag of the unemployment rate. The Group and the Company shall recognise in profit or loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date. Expected credit loss model is used for calculation of the impairment of receivables. The expected credit losses are required to be measured through a loss allowance at an amount equal to full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). Trade receivables are non-interest bearing and are generally on terms of 3 to 30 days. Contract assets are initially recognised for revenue earned from constructio n services as receipt of consideration is conditional on successful completion of construction. Upon completion of construction services and acceptance by the customer, the amounts recognised as contract assets are reclassified to trad e receivables.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 307 24. TRADE RECEIVABLES (NET) (continued) Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Trade receivables 339.906 339.394 272.306 278.000 Impairment of trade receivables (46.433) (42.823) (35.170) (31.692) Total 293.473 296.571 237.136 246.308 Receivables classified as performing are impaired by using the exp ected credit loss (ECL) rate. The effect of impairment losses using ECL for performing receivables of 0.17% is EUR 244 thousand in 2025 (2024: EUR 167 thou sand, ECL: 0.11%). In 2025, the impact of expected credit losses (ECL) on receivables in Egy pt amounted to EUR 3.2 million. Total trade receivables in Egypt amounted to EUR 41.8 million as at 31 December 2025. Trade receivables presented at the Group level include receivables from related parties outside the Group amounts to EUR 33,041 thousand (Note 41) as at 31 December 2025 (2024: EUR 27,689 thousand). Trade receivables presented at the Company level include receivabl es from related parties outside the Group amounts to EUR 28,528 thousand (Note 41) as at 31 December 2025 (2024: EUR 23,126 thousand). Impairment of trade receivables: Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 At beginning of the year 42,823 40,667 31,692 29,451 Impairment losses recognised on receivables 5,203 3,229 4,704 3,109 Amounts written off as uncollectible (974) (600) (844) (415) Reversal of impairment on amounts recovered (619) (473) (382) (453) At end of the year 46,433 42,823 35,170 31,692 Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Current (not past due) 248,155 243,166 195,707 198,954 1-30 days 12,255 12,885 9,539 8,117 31-60 days 3,611 2,620 3,399 2,664 61-90 days 3,249 5,273 3,112 5,257 91-180 days 8,088 10,081 7,786 10,047 More than 180 days 64,548 65,369 52,763 52,961 At end of the year 339,906 339,394 272,306 278,000
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 308 25. OTHER CURRENT FINANCIAL ASSETS Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Closed but not settled derivatives 7,227 3,446 7,227 3,446 Short-term loans and deposits 2,095 1,673 3,932 1,530 Margining receivables 1,778 - 1,778 - Prepaid loans fees 1,733 1,592 1,552 1,411 Other current receivable 1,554 4,718 33 3,882 Total 14,387 11,429 14,522 10,269 26. OTHER CURRENT ASSETS Accounting policies Government grants Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received, and all attaching conditions will be complied with. Where the gra nt relates to an asset, the fair value is credited to a deferre d income account and is released to the statement of profit or loss over the expected useful life of the relevant asset. Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Prepaid and recoverable excise duties 11,839 10,813 11,257 10,617 Prepayments for customs, duties and other charges 8,146 8,832 6,793 7,006 Tax prepayments 6,999 6,387 1,498 2,478 Government grants receivables 3,070 - 3,070 - Prepayment receivables 2,058 1,552 1,224 838 Government receivables 1,471 1,113 171 81 Foreign concessions receivables 345 1,337 345 1,337 Employees receivables 786 68 36 32 Other 4,253 5,116 2,975 3,089 Total 38,967 35,218 27,369 25,478 Excise duties Excise duties may vary depending on the different tax regimes in various jurisdictions. When determining the transaction price, the entity considers the terms of the contract, its usual busine ss practice and the business practice of the industry. The transaction price is the amount of consideration to which an en tity expects to be entitled in exchange for transferring promised goods, excluding amounts collected on behalf of third parties. Excise duties are recognised with net presentation in the financial statements as the Company and its subsidiaries collect the excise duties from third parties to the state. When the inventory leaves the excise warehouse and the excise du ty liability is recognized, the value of the excise duty is recognized as Other current assets. Excise duty amount which is included in Other current assets is recognized until the inventory is sold or consumed. By 31 December 2025, the Company had settled excise duty liabilities in the amount of EUR 1,012,780 thousand (2024: EUR 961,453 thousand).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 309 27. LONG-TERM MARKETABLE SECURITIES The Group and the Company invest in investment grade debt securities , as long-term and short-term government bonds which are measured at fair value through other comprehensive income. At 31 December 2025 the Group’s and INA, d.d. fair value of debt securities was EUR 2,584 thousand (2024: EUR 2,574 thousand). When debt securities mature or are sold, changes in fair val ue previously recognised in other comprehensive income and accumulated in equity are recognized in statement of profit or l oss. Long-term securities are maturing on 4 February 2030. (in thousand euro) Group Company Balance at 1 January 2024 2,492 2,492 Interest and amortisation 4 4 Foreign exchange - - Bonds matured - - Change in fair value 78 78 Balance at 31 December 2024 2,574 2,574 Interest and amortisation 4 4 Foreign exchange - - Bonds matured - - Change in fair value 6 6 Balance at 31 December 2025 2,584 2,584 Short-term marketable securities as at 31 December 2024 - - Long-term marketable securities as at 31 December 2024 2,574 2,574 Short-term marketable securities as at 31 December 2025 - - Long-term marketable securities as at 31 December 2025 2,584 2,584 28. CASH AND CASH EQUIVALENTS Accounting policies Cash and cash equivalents comprise cash on hand and bank, and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an immaterial risk of changes in value. Demand deposits can be withdrawn on demand, without prior n otice being required or a penalty being charged. Short-term deposits are allocated up to three months. However, if needed , they can be withdrawn on demand as well without penalty being charged. Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Demand deposit 37,280 25,010 28,178 17,370 Deposits up to three months 109,084 73,712 106,213 73,657 Cash on hand 15,122 11,314 13,754 10,372 Cash and cash equivalents in the statement of financial position 161,486 110,036 148,145 101,399
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 310 29. BORROWINGS - BANK LOANS AND CURRENT PORTION OF LONG-TERM DEBTS Accounting policies All loans and borrowings are initially recognised at the fair v alue of the consideration received net of issue costs associated with the borrowing. After initial recognition, loans and bo rrowings are subsequently measured at amortised cost using the effective interest method. The most material short-term loans as at 31 December 2025 are credit facilities for the financing of crude oil and petroleum products purchase (“trade finance”) concluded with first class banks, framewo rk agreements for granting loans, issuing bank guarantees and opening letters of credits concluded with domes tic banks, as well as short-term credit lines with foreign creditors. Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Bank loans 398,754 327,499 397,200 325,458 Short-term corporate bond issuance 264,997 189 264,997 189 Total 663,751 327,688 662,197 325,647 Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Unsecured corporate bond issuance in EUR 264,997 189 264,997 189 Unsecured bank loans in EUR 397,199 70,500 397,200 70,500 Unsecured bank loans in USD - 254,957 - 254,958 Unsecured bank loans in HUF 1,555 2,042 - - Total 663,751 327,688 662,197 325,647 Short-term loans are contracted as multicurrency lines with variable interest rates . Company short-term loans are unsecured and do not contain financial covenants. In order to secure the Group subsidiaries short – term credit facilities, the Company issued corporate guarantees (note 41). CORPORATE BONDS In December 2021, the Company issued corporate bonds in the amount of HRK 2 billion (EUR 265,446 thousand) at an issue price of 99.445%, with a coupon of 0.875% p.a. and semi-annual interest payment. The bonds finally mature on 6 December 2026. The purpose of the bonds is financing general corporate purposes , investments, potential acquisitions, and partial refinancing of existing debts. The bonds have been reclassified as short ‑term because they mature in December 2026.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 311 30. TRADE PAYABLES, TAXES AND CONTRIBUTIONS AND OTHER CURRENT LIABILITIES Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Financial liabilities Trade payables 293,876 357,909 235,905 307,931 Dividend payables 351 141 351 141 Non-financial liabilities Value added tax, excise duties and other tax 129,295 124,734 116,361 111,686 Payroll payables 25,009 20,961 13,343 10,277 Contract liabilities 12,409 10,500 8,889 7,096 Payroll taxes and contributions 8,745 7,429 3,635 3,334 Accrued bonuses 12,240 6,761 7,581 3,858 Mining fee 3,474 4,440 3,475 4,440 Liabilities for received deposits and sureties for tender 4,349 4,190 2,994 2,736 Accrued unused holiday 4,993 3,828 1,071 769 Other 10,693 9,804 9,654 8,476 Total 505,434 550,697 403,259 460,744 The management considers that the carrying amount of trade payables approximat es their fair values. Trade payables are unsecured and are usually paid within 60 days of recognition. Trade payables of the Group include payables with ultimate paren t company and its related parties in the amount of EUR EUR 42,151 thousand as at 31 December 2025 (2024: EUR 110,987 thousand). Trade payable s of the Company include payables with related party entities outside of the Group in the amount of EUR 35,581 thousand as at 31 December 2025 (2024: EUR 103,555 thousand) (note 41). The majority of contract liabilities include short-term advances received for construction services in amount of EUR 11,148 thousand in 2025 as well as EUR 9,104 thousand in 2024 for the Group (the Company: EUR 7,628 thousand in 2025 and EUR 5,701 thousand in 2024). The remaining performance obligations are expected to be recogn ised in following year. Accruals for unused holiday is determined based on actual data (nu mber of employees, unused days, payroll) taken into calculation. The auditor's fee for 2025 for the audit and audit related services of the Group and the Company amounts to EUR 715 thousand and EUR 466 thousand (2024: EUR 691 thousand and EUR 455 thousand), respectively, recognised within service costs.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 312 31. OTHER CURRENT FINANCIAL LIABILITIES Group Company 31 December 31 December 2025 2024 2025 2024 (in thousand euro) Derivative settlement liabilities 3,726 4,044 3,726 4,044 Interest payables 715 1,141 715 1,141 Borrowings from subsidiaries - - 12,697 7,688 Total 4,441 5,185 17,138 12,873 32. BORROWINGS Long-term loans can be utilized in different currencies and are su bject to different interest rates. Long-term loans of INA, d.d. are unsecured and contain financial covenants which have been met. As at 31 December 2025, the Group and the Company have adequate committed undrawn credit facilities which, together with projected cash flows, enable the orderly settlement of obligations over th e following 12 months. The Group’s and the Company’s outstanding long-term debt is analysed as follows: Group and Company Weighted effective interest rate Weighted effective interest rate 31 December 31 December (in thousand euro) 2025 2024 2025 2024 % % Corporate bond issuance in EUR 0.99 0.99 - 264,552 Total - 264,552 The maturity of the borrowings may be summarised as follows: Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Payable within one to two years - 264,552 - 264,552 Payable within two to three years - - - - Payable within three to four years - - - - Payable within four to five years - - - - Total - 264,552 - 264,552
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 313 32. BORROWINGS (continued) The movement during the year is summarised as follows: (in thousand euro) Group Company Balance at 1 January 2024 264,105 281,717 Amortisation of bond discount 447 447 New borrowings - 6,481 Amounts repaid - (24,093) Balance at 31 December 2024 264,552 264,552 At 1 January 2025 264,552 264,552 Amortisation of bond discount 445 445 New borrowings 80,000 80,000 Amounts repaid (80,000) (80,000) Transfer to short-term portion (264,997) (264,997) Balance at 31 December 2025 - - The overview of contracted long-term facilities as at 31 December 2025 was as follows : ING BANK N.V. In October 2022 the Company signed a long-term multi-currency revolving cred it facility agreement for general corporate purposes in the amount of EUR 300,000 thousand. The revolving credit facility signed in 2018 in the amount of USD 300,000 thousand was refinanced with this facility. The facility can be used in EUR and USD and is subject to different interest rates. Lenders are banking groups represented by both international and domestic banks. The facility agent is ING Bank N.V. The maturity of the credit facility is 3 years with an option for 1+1-year extension. Both extension options have been exercised. In March 2025 the credit facility has been increased by EUR 50,000 thousand to E UR 350,000 thousand. Final maturity of the credit facility is in October 2027. PRIVREDNA BANKA ZAGREB d.d. In July 2025 the Company signed a long-term club loan agreement in the a mount of EUR 170,000 thousand. The loan can be used in EUR and for general corporate purposes. The agent is Pri vredna banka Zagreb d.d., and the lenders are four leading domestic banks. The loan matures in July 2032. Reconciliation of liabilities arising from financing activities The table below details changes in the liabilities arising from financing activities, including both cash and noncash changes, and which the Group and the Company assess to be material. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the consolidated and separate statements of cash flow as cash flows from financial activities.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 314 32. BORROWING (continued) The table below presents the movement of the Group’s and the Company’s long -term and short-term borrowings. Group (in thousand euro) 1 January 2025 Additions Proceeds Repayment Foreign exchange Interest expenses 31 December 2025 Short-term loans 327,105 - 2,256,103 (2,198,526) (7,199) 21,271 398,754 Overdrafts 583 - - (583) - - - Long-terms loans - - 80,000 (80,000) - - - Corporate bonds 264,552 - - - - 445 264,997 Lease liabilities 39,143 52,624 - (15,937) - - 75,830 Dividend payable 141 120,000 - (119,790) - - 351 Total liabilities 631,524 172,624 2,336,103 (2,414,836) (7,199) 21,716 739,932 Company (in thousand euro) 1 January 2025 Additions Proceeds Repayment Foreign exchange Interest expenses 31 December 2025 Short-term loans 325,647 - 2,251,597 (2,193,881) (7,388) 21,225 397,200 Long-terms loans - - 80,000 (80,000) - - - Short-term loans from related parties 1,600 - - - - - 1,600 Long-term liabilities for cash allocation 22,072 - 51,215 (52,158) - - 21,129 Short-term liabilities for cash allocation 7,623 - 181,996 (176,981) - - 12,638 Corporate bonds 264,552 - - - - 445 264,997 Lease liabilities 44,221 43,617 - (17,723) - - 70,115 Dividend payable 141 120,000 - (119,790) - - 351 Total liabilities 665,856 163,617 2,564,808 (2,640,533) (7,388) 21,670 768,030
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 315 32. BORROWINGS (continued) Group (in thousand euro) 1 January 2024 Additions Proceeds Repayment Foreign exchange Interest expenses 31 December 2024 Short-term loans 102,447 - 2,488,612 (2,281,231) 1,852 15,425 327,105 Overdrafts - - 583 - - - 583 Long-terms loans - - 149,015 (147,536) (1,479) - - Corporate bonds 264,105 - - - - 447 264,552 Lease liabilities 48,942 4,020 - (13,819) - - 39,143 Dividend payable 142 240,000 - (240,001) - - 141 Total liabilities 415,636 244,020 2,638,210 (2,682,587) 373 15,872 631,524 Company (in thousand euro) 1 January 2024 Additions Proceeds Repayment Foreign exchange Interest expenses 31 December 2024 Short-term loans 83,446 - 2,484,121 (2,259,744) 1,915 15,909 325,647 Long-terms loans - - 149,015 (147,536) (1,479) - - Short-term loans from related parties 1,600 - - - - - 1,600 Long-term liabilities for cash allocation 17,612 - 69,662 (65,202) - - 22,072 Short-term liabilities for cash allocation 7,546 - 110,831 (110,754) - - 7,623 Corporate bonds 264,105 - - - - 447 264,552 Lease liabilities 57,584 2,578 - (15,941) - - 44,221 Dividend payable 142 240,000 - (240,001) - - 141 Total liabilities 432,035 242,578 2,813,629 (2,839,178) 436 16,356 665,856 Compliance with loan agreements In 2025 the Group members and the Company paid all of their due li abilities in respect of the loans (principal, interest and fees) on a timely basis, without any delays or defaults. Long-term loan agreement of the Company contains financial covenants wh ich have been complied with.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 316 33. LEASES Accounting policies Contracts containing a lease are recognized as right- of-use assets and associated liabilities on the lease commencemen t date with the application of exemption for leases of assets of low value and short-term leases. Low-value assets mainly comprise those assets that, when new, have a val ue of generally less than USD 5,000, while a short- term lease is considered a lease with a term of 12 months or less. Variable rents that do not depend on an index or rate are not included in the measurement the lease liability and the right-of-use asset. Variable lease payments that do not depend on an index or rate are recognised in profit or loss in the pe riod in which the event or condition that triggers tho se payments occurs. Leases containing a purchase option cannot be classified as short-term leases. The expense of these exempt leases is recognized in profit and loss on a straight-line basis over the lease term (note 8). Lease liabilities are recognized at the present value of all fu ture lease payments to be made over the term of the lease, which include fixed payments less lease incentives received, variable leas e payments that depend on an index or rate, and amounts expected to be payable by the lessee under residual value guar antees. Lease payments do not include payments allocated to non-lease components of the contract. They are discounted u sing the interest rate implicit in the lease, if that rat e can be readily determined, but since it is mainly not available, the incremental borrowing rates of the Group and the Company are mostly used. After initial recognition, lease liabilities are increased by the amount of interest, decreased by the amount of lease payments made, and prospectively remeasured to reflect reassessments or changes to the lease. Right-of-use asset is measured at cost less accumulated depreciation and impai rment losses and is adjusted for the remeasurement of lease liabilities. The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘Property, Plant and Equipment’ policy. The cost of the right-of-use asset includes the amount of recognized lease liability, initially incurred direct costs and lease payments at or before the commencement date. Depreciation is recognized on a straight-line basis, over the shorter of the lease term and the estimated useful live of the asset. If the ownership of the leased asset is transferred to the Comp any and the Group at the end of the lease period or the cost reflects the exercise of the purchase option, depreciation is calculated until the end of the useful life of the asset. The lease term is determined as an irrevocable lease period together with the possibility of extending the lease and th e probability that the option of terminating the lease will not be exercised. The lease term comprises the non-cancellable period of the lease together with periods covered by an extension option where the Group is reasonably certain to exercise th at option, and periods covered by a termination option where the Group is reasonably certain not to exercise that option. Right-of-use assets and lease liabilities are presented in separate lines of the statement of financial position.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 317 33. LEASES (continued) The recognised right-of-use assets relate to the following types of assets and movements duri ng the year: Group (in thousand euro) Land and buildings and related rights Vehicles Plant and machinery, office equipment and other Total Balance at 1 January 2024 34,983 8,309 4,529 47,821 Additions in period due to new contracts 1,823 2,037 391 4,251 Depreciation for the period (4,468) (5,998) (3,386) (13,852) Other decrease (i.e. impairment, termination) (256) (10) - (266) Balance at 31 December 2024 32,082 4,338 1,534 37,954 Additions in period due to new contracts 5,239 30,108 17,389 52,736 Depreciation for the period (4,848) (7,895) (3,852) (16,595) Other decrease (i.e. impairment, termination) (72) (53) (22) (147) Balance at 31 December 2025 32,401 26,498 15,049 73,948 Company (in thousand euro) Land and buildings Vehicles Plant, machinery, office equipment and other Total Balance at 1 January 2024 44,891 7,095 4,529 56,515 Additions in period due to new contracts 632 1,668 288 2,588 Depreciation for the period (7,533) (5,153) (3,366) (16,052) Other decrease (i.e. impairment, termination) (1) (8) - (9) Balance at 31 December 2024 37,989 3,602 1,451 43,042 Additions in period due to new contracts 1,755 24,500 17,384 43,639 Depreciation for the period (7,619) (6,726) (3,838) (18,183) Other decrease (i.e. impairment, termination) (4) (19) - (23) Balance at 31 December 2025 32,121 21,357 14,997 68,475
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 318 33. LEASES (continued) Total carrying amounts of lease liabilities are presented: Group Company (in thousand euro) 2025 2024 2025 2024 Lease liabilities at 1 January 39,143 48,942 44,221 57,584 Additions 52,624 4,020 43,617 2,577 Accretion of interest 2,163 1,135 1,835 1,046 Payments (18,100) (14,954) (19,558) (16,986) Lease liabilities at 31 December 75,830 39,143 70,115 44,221 Analysed as: Current lease liabilities 16,908 8,338 18,459 11,091 Non-current lease liabilities 58,922 30,805 51,656 33,130 The following amounts were recognised in profit or loss: Group Company (in thousand euro) 2025 2024 2025 2024 Depreciation of right -of-use asset (note 7) 16,595 13,852 18,183 16,052 Expenses for the period relating to short-term leases or leases of low-value assets 11,255 9,508 8,350 7,729 Interest expense for lease agreements (note 12) 2,163 1,135 1,835 1,046 Total 30,013 24,495 28,368 24,827 34. PROVISIONS Accounting policies Provisions are recognised when the Group and the Company have a present obligation (legal or constructive) as a result of a past event and it is probable (i.e., more likely than not) that an outflow of resources will be required to settle the o bligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligati on at the end of the reporting period, taking into accoun t the risks and uncertainties surrounding the obligation. When the effect of discounting is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation, determined using the discount factor, which is calculated as CPI (Consumer Price Index), and real interest rate.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 319 34. PROVISIONS (continued) Accounting policies (continued) When discounting is used, the reversal of such discounting in each year is recognised as a financial expense and the carrying amount of the provision increases in each year to reflect the passage of time. Significant accounting estimates and judgements Provision for Environmental expenditures Environmental expenditures that relate to current or futur e economic benefits are expensed or capitalised as appropriate. Liabilities for environmental costs are recognised when environmental assessments or clean-ups are probable, and the amount recognised is the best estimate of the expenditure required . In case of long-term liability, the present value of the esti mated future expenditure is recognised. Provision for decommissioning Provision relating to the decommissioning and removal of assets, such as an oil and gas production facility are initially treated as part of the cost of the related property, plant and equipment. Subsequent adjustments to the provision arising from changes in estimates as decommissioning costs, reserves and production of oil and gas, risk free rate as discount rate and inflation rate are also treated as an adjustment to the cost of the propert y, plant and equipment and thus dealt with prospectively in the statement of profit or loss through future depreciation of the asset. Any change to the present value of the estimated costs i s reflected as an adjustment of the provisions and the decommission assets. The Group and the Company record provisions at present value of estimated future costs of abandoning oil and gas production facilities estimated at the end of production. Estimate provisions are based on the applicable legal regulations, technology and price levels. Decommissioning assets are created in an amount equal ling the estimated provision, which is also amortized as part of the capital asset costs. Any change to the present value o f the estimated costs is reflected as an adjustment of the provisions and the decommissioning assets. In case there is no re lated asset, the change in provision estimate is charged to profit or loss. Provision for Legal claims Provisions for legal disputes are based on the report of a legal e xpert, taking into account the value of the claims and the probability of outflows of resources that will be required to settle the obligation. Provision for green rights Liability for emission is not recognized until the amount of actu al CO2 emission reaches the amount of quota allocated free of charge. This approach is due to the fact that allocated emission allowances are not recorded as intangibles, their asset value is zero. When actual emission exceeds the amount of emission rights gra nted, provision should be made for the exceeding emission allowances. In case the Group and the Company cover its li ability by forward derivative deals, provision for the quantity covered by these deals is calculated using forward r ates of the derivative deals. For any residual excess, the curre nt fair value at the reporting date is used. Settlement with Government is carried out by offsetting the purchased rights with the provision recorded for the exceeding emissions. Penalty will be accounted for if the shortfall is not covered by purchase d quotas. It also means that it is not possible to record a prov ision earlier than the date when emissions reach the number of allowances granted, nor is it possible to spread the expected sh ortfall through the calendar years. Provision recognised for each plant separately and recorded on emitting business segment. Provision for renewable energy The renewable energy provision represents the expected cost o f complying with renewable energy and greenhouse gas reduction targets, as defined by the relevant legislation. It r eflects the portion of targets not achieved and the relat ed environmental fee arising from non-completed legal obligations.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 320 34. PROVISIONS (continued) Accounting policies (continued) Significant accounting estimates and judgements (continued) Consequences of certain legal actions A judgement is necessary in assessing the likelihood that a claim will succeed, or liability will arise, and to quantify the possible range of any settlement. Due to the inherent uncertainty on t his evaluation process, actual losses may be different from the liability originally estimated. The Group and the Company are involved in number of litigati ons arisen from the regular course of business. If there is a present obligation as a result of a past event (taking into accoun t all available evidence, including the opinion of law expe rts) for which it is probable that outflow of resources will be required to settle the obligation and if a reliable estimate can be made of the amount of the obligation, the provisions are recorded. Provision for decommissioning and environmental provision Decommissioning costs are uncertain and cost estimates can vary in r esponse to many factors, including changes to legal and regulatory requirements, new technologies becoming available and experience of decommissioning other assets. The expected timing, scope, expenditure, and risk profile may also change. Th e provision estimate requires Management judgement and is reviewed on quarterly basis. Management makes estimates of future expenditure in connection with decommissioning and environmental provision using prices by reference to prior similar activities, as well as oth er assumptions like the estimated effects of any changes in local regulations, management's expected approach to decommissioning, cost estimates and discount rates. Furthermore, the time determined for the cash flows reflects the current estimates of priorities, technical equipment requirements and urgenc y of the obligations. In determining the level of provisions for decommissioning and e nvironmental obligations, the Management relies on prior experience and their own interpretation of the related legislation.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 321 34. PROVISIONS (continued) Group (in thousand euro) Decommissioning charges Environmental provision Privision for green rights Renewable energy provision Legal claims Redundancy costs Other Total Balance at 1 January 2024 323,214 35,889 32,796 9,494 2,947 2,391 58,091 464,822 Charge for the year - 4 25,804 9,983 247 549 7,598 44,185 Effect of change in estimates 48,689 7,536 - - (424) (307) 1,631 57,125 Unwinding of discount on provision 17,934 1,805 - - 12 - 2,638 22,389 Provision utilised during the year (paid) - (3,270) (32,796) (9,494) (242) (1,438) (3,578) (50,818) Balance at 31 December 2024 389,837 41,964 25,804 9,983 2,540 1,195 66,380 537,703 Charge for the year - - 45,750 10,189 3,781 387 555 60,662 Effect of change in estimates (16,028) (625) - - (260) (164) (8,222) (25,299) Unwinding of discount on provision 19,604 2,403 - - 13 - 2,213 24,233 Provision utilised during the year (paid) - (2,615) (25,974) (9,983) (201) (715) (460) (39,948) Balance at 31 December 2025 393,413 41,127 45,580 10,189 5,873 703 60,466 557,351
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 322 34. PROVISIONS (continued) Company (in thousand euro) Decommissioning charges Environmental provision Provision for green rights Renewable energy provision Legal claims Redundancy costs Other Total Balance at 1 January 2024 346,166 35,690 32,796 9,494 490 1,022 53,740 479,398 Charge for the year - 4 25,804 9,983 51 - 7,598 43,440 Effect of change in estimates 51,696 7,461 (1,152) - (259) (127) 2,574 60,193 Unwinding of discount on provision 19,205 1,796 - - - - 2,638 23,639 Provision utilised during the year (paid) - (3,266) (31,644) (9,494) - (416) (4,541) (49,361) Balance at 31 December 2024 417,067 41,685 25,804 9,983 282 479 62,009 557,309 Charge for the year - - 45,750 10,189 3,707 - 554 60,200 Effect of change in estimates (7,131) (642) - - - (25) (6,910) (14,708) Unwinding of discount on provision 20,982 2,365 - - - - 2,213 25,560 Provision utilised during the year (paid) - (2,544) (25,974) (9,983) - (326) (1,376) (40,203) Balance at 31 December 2025 430,918 40,864 45,580 10,189 3,989 128 56,490 588,158 Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 By maturity: Current liabilities 59,828 41,933 58,814 40,615 Non-current liabilities 497,523 495,770 529,344 516,694 557,351 537,703 588,158 557,309
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 323 34. PROVISIONS (continued) Decommissioning charges The obligation with respect to the decommissioning provision for o il and gas properties amounted to EUR 393,413 thousand at the Group and the Company EUR 430,918 thousand as at 31 December 2025 (31 December 2024: the Group EUR 389,837 thousand and the Company EUR 417,067 thousand). Change in decommissionin g costs of 10% effects the provision in the same direction and percentage. Discount rate higher by one percentage point reduces the provision by 10%, while a discount rate lower by one percentage point increases the provis ion by 11%. As at 31 December 2025, the decommissioning provision decreases the carrying amount of Group’s property, plant and equipment by EUR 12,033 thousand and the Company by EUR 4,399 thousand (no te 16). As at 31 December 2024, the decommissioning provision incre ases the carrying amount Group’s property, plant and equipment by EU R 49,429 thousand and the Company’s by EUR 53,429 thousand (note 16). As at 31 December 2025 the Company recognised a decommissioning provision for 46 oil and gas production fields, 9 non-production fields, 5 positive non-production fields an d 350 dry non-production wells. As at 31 December 2024, the Company recognised a decommissioning provision for 46 oil and gas production fields, 9 non-production fields, 5 positive non-production fields and 353 dry non-production wells. Negative nonproducing onshore wells are in the process of collecting the documentation required for their removal from the well register. Environmental provision As at 31 December 2025, the environmental provision recorded by the Group amounted to EUR 41,127 thousand (2024: EUR 41,964 thousand) and the Company in the amount of EUR 40,864 thousand (2024: EUR 41,685 thou sand). Liabilities for environmental costs are recognised when environmental assessmen ts or clean-ups are probable, and the amount recognised is the best estimate of the expenditure required. In case of a non-current liability, the present value of the estimated future expenditure is recognised. The environmental provision covers investigation to determine the extent of contamination at specific site, treatment of accumulated waste generated by former activity, preliminary site investigation with corresponding laboratory analyses, soil excavation and replacement during the reconstruction of service stations. Provision based environmental liabilities are revised in every quarter. Provision for green rights As at 31 December 2025, the environmental provision recorded by the Group and the Company amounted to EUR 45,580 thousand (2024: EUR 25,804 thousand). Within the Emission Unit Trading Sys tem, certain emission units were allocated free of charge to the Company. Emission units are allocated on an annual basis, and in return The Company is obliged to submit emission units equal to the verified emissions. Free e mission units are allocated on the basis of the European Commission form filled out by the facilities, which is submitte d to the Ministry of Environment Protection and Green Transition every year by 31 December of the current year for that same year. The Company adopted the calculation of costs on a net basis for emission units allocated free of charge. Therefore, the provision is recognised only when the actual emission exceeds the allocated one. The provision for the emiss ion unit obligation exceeding the number of emission units allocated free of charge is decreased by purchased emission units. The cost of emission units is recognised as other material cost.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 324 34. PROVISIONS (continued) Renewable energy provision The renewable energy provision relates to the projection of renew able energy targets compliance cost which is defined by the Act on biofuels for transport and further regulated by the Regul ation on special environmental fee. It is a special environmental fee arising from the stated regulations and consists of partially unfulfilled savings targets regarding renewable energy sources and greenhouse gases. Other provisions At 31 December 2025, Other provisions on Company level relates to provisi on for contractual liability regarding to investments in Iran in the amount of EUR 44,789 thousand (2024: EUR 48,025 tho usand). Under the Production Agreement, the Company has committed to spending certain funds. Since the act ivities in Iran have been discontinued, the difference between the contractual liability and actual funds spent was recognised as a provision. The remaining amount relates to the provision for maritime domain concessions as well as the provision for sediment and non-pumpable inventories in the total amount of EUR 11,700 thousand (2024: EUR 13,984 thousand).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 325 35. EMPLOYEE BENEFIT OBLIGATION Accounting policies Retirement benefit and jubilee awards For defined benefit plans and for retirement and jubilee awards, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each annual reporting period. Remeasurement, comprising actuarial gains and losses, is reflected immediately in the statement of financial position with a charge or credit recognised in other comprehensive income. Re measurement recognised in other comprehensive income is reflected within other reserves and will not be reclassified t o profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at t he beginning of the period to the net defined benefit li ability or asset. Defined benefit costs are categorised as follows: • service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements); • net interest income or expense; and • remeasurement. The Group and the Company present the first two components of d efined benefit costs in profit or loss in the line item. Curtailment gains and losses are accounted for as past service costs. A liability for a termination benefit is recognised when the Gr oup and the Company can no longer withdraw the offer of the termination benefit or when the Group and the Company recognise any related restructuring costs. According to the Collective Agreement, the Group bears the obligation to pay jubilee awards, retirement and other benefits to employees. The Group operates defined benefit sch emes for qualifying employees. Under the schemes, the employees are entitled to an early retirement benefit in the net amount of EUR 2,654 of which EUR 1,500 is non-taxable. No other post-retirement benefits are provided. Jubilee awards are paid out according to the Collective Agreement in the following fixed amounts and anniversary dates for the total service at the Group and the Company: Years of continuous services 10 15 20 25 30 35 40 and every 5 additional years Fixed amounts - EUR 199 265 332 398 465 531 664 The net amounts specified above are non-taxable in terms of tax regulation s. The defined amounts of jubilee awards are effective for the Collective Agreement signed in 2025. Independent actuarial experts prepared an estimate of the present value of defined benefit obligations as at 31 December 2025 and 2024.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 326 35. EMPLOYEE BENEFIT OBLIGATION (continued) In 2025, the Group made a provision of EUR 311 thousand in respect of jubilee awards and EUR 1,884.6 thousand for regular retirement allowances, whereas in 2024 the Group made a provis ion in respect of jubilee awards in the amount of EUR 105 thousand and for regular retirement allowances in the amount of EUR 153 thousand. The present values of the defined benefit obligation, the re lated current service cost and past service cost were determined using the projection method based on the total number of employees. Actuarial estimates were derived based on the following key assumptions: Valuation at 2025 2024 Discount rate 3.03% 2.06% Average longevity at retirement age for current pensioners (years) males 16.80 16.70 females 20.20 20.10 Average longevity at retirement age for current employees (future pensioners) (years) males 16.80 16.70 females 20.20 20.10 The amounts recognised in other comprehensive income related to reti rement and other employee benefits are as follows: Group Company (in thousand euro) 2025 2024 2025 2024 Service cost: Cost of current period 2,346 557 118 109 Interest 179 260 50 83 Components of defined benefit costs recognised in profit or loss: 2,525 817 168 192 Remeasurement of the net defined benefit liability: Actuarial gains and losses arising from changes in demographic assumptions 681 10 616 62 Actuarial gains and losses arising from changes in financial assumptions (218) (57) (143) (24) Actuarial gains and losses arising from experience adjustments 140 135 (33) (69) Components of defined benefit costs recognised in profit or loss and other comprehensive income: 603 88 440 (31) Total 3,128 905 608 161
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 327 35. OTHER EMPLOYEE BENEFITS (continued) The change of the present value of the defined benefit obligation may be analysed as follows: Group Company (in thousand euro) 2025 2024 2025 2024 At 1 January 7,697 7,439 2,222 2,199 Cost of current period 2,346 557 118 109 Interest 179 260 50 83 Actuarial (gains) or losses Actuarial gains and losses arising from changes in demographic assumptions 681 10 616 62 Actuarial gains and losses arising from changes in financial assumptions (218) (57) (143) (24) Actuarial gains and losses arising from experience adjustments 140 135 (33) (69) Foreign exchange rate gain or loss 44 (43) - - Benefit paid (976) (604) (180) (138) Closing defined benefit obligation 9,893 7,697 2,650 2,222 36. DERIVATIVE FINANCIAL INSTRUMENTS Accounting policies Under IFRS 9, all derivatives are measured at fair value. Fair value movements are recognised in profit or loss unless the entity elects to apply hedge accounting and appropriately designates the derivative as a hedging instrument in a qualifying hedging relationship. Derivative financial assets Group and Company 31 December (in thousand euro) 2025 2024 Commodity derivatives 3,926 11,533 3,926 11,533 Derivative financial liabilities Group and Company 31 December (in thousand euro) 2025 2024 Commodity derivatives 8,796 9,951 8,796 9,951
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 328 37. SHARE CAPITAL Group and Company 31 December (in thousand euro) 2025 2024 Issued and fully paid: 10 million shares (EUR 120 per share) 1,200,000 1,200,000 The Company’s share capital consists of 10 million authorised and i ssued shares of par value EUR 120 per share. Each share carries one vote and is entitled to dividends. 38. FAIR VALUE RESERVES Group Company (in thousand euro) 2025 2024 2025 2024 At the 1 January 73,470 73,893 73,464 73,887 Decrease in fair value on investment in equity and debt instruments designated as at FVTOCI (5,343) (516) (5,343) (515) Deferred tax effect 962 93 962 92 At the 31 December 69,089 73,470 69,083 73,464 In 2025 and 2024, there was a decline in the value of JANAF shares on the stock exchange, resulting in a reduction of the fair value reserve adjustment.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 329 39. OTHER RESERVES The Group’s and the Company’s combined reserves include amounts of accumulated surpluses and deficits, revaluations of property, plant and equipment and foreign exchange gains and losses which have arisen over many years prior to 1993. For several years, the Croatian economy was subject to hyperinflation and, prior to 31 December 1993, neither the Group nor the Company had been subject to audit. For these reasons, it was n ot practicable to analyse the constituent parts which Group’s or the Company’s reserves were composed as at 31 December 1993. Total other reserves are not available for dividend payout. Movements on reserves during the year were as follows: Group Combined reserves at 31 December 1993 Exchange differences reserves on translating foreign operations Reserve of defined benefit obligation Other reserves Total (in thousand euro) At 1 January 2024 3,950 100,000 7,603 95,926 207,479 Movements during 2024 - 285 99 380 764 At 31 December 2024 3,950 100,285 7,702 96,306 208,243 Movements during 2025 - (1,956) (103) 313 (1,746) Balance at 31 December 2025 3,950 98,329 7,599 96,619 206,497 Company Combined reserves at 31 December 1993 Exchange differences reserves on translating foreign operations Reserve of defined benefit obligation Other reserves Total (in thousand euro) Balance at 1 January 2024 3,950 106,296 5,684 37,413 153,343 Movements during 2024 - 941 75 - 1,016 Balance at 31 December 2024 3,950 107,237 5,759 37,413 154,359 Movements during 2025 - (2,747) (209) - (2,956) Balance at 31 December 2025 3,950 104,490 5,550 37,413 151,403
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 330 40. NON-CONTROLLING INTEREST Group (in thousand euro) 2025 2024 At 1 January 3,465 3,198 Share of profit for the year 202 267 At 31 December 3,667 3,465 Proportion of equity interest of Energopetrol d.d.: Proportion of equity interest of Energopetrol d.d. held by non-controlling interests: 31 December Name Country of incorporation and operation 2025 2024 Government of the Federation of Bosnia and Herzegovina Bosnia and Herzegovina 7.61% 7.61% Small shareholders 3.73% 3.73% The table below presents the financial information for subsid iary Energopetrol d.d. that has non-controlling interest material to Group. The amounts disclosed for Energopetrol d.d. are before intercompany eliminations. (in thousand euro) 2025 2024 Energopetrol d.d. Energopetrol d.d. Non-current assets 31,840 32,086 Non-current liabilities 2,800 2,788 Current assets 10,230 7,999 Current liabilities 6,935 6,741 Operating income 80,148 81,850 Net income for the year 1,922 2,501 Total comprehensive income for the year 1,922 2,501
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 331 41. RELATED PARTY TRANSACTIONS The Company has a dominant position in Croatia in oil and gas exploration and production, oil refining and the sale of gas and petroleum products. As a result of the Company’s strategic positio n within the Croatian economy, a substantial portion of its business and the business of its subsidiari es is performed with the Croatian Government, its departments and agencies, and companies whose majority shareholder is the Republic of Croatia. The Group is in a related party relationship with the ultimate par ent company and ultimate controlling party MOL Nyrt, as well as with legal entities under its control or influence, key management, immediate family members of key management, and legal entities that are under the control or significant influ ence of key management and their immediate family members, in accordance with the provisions set fo rth in International Accounting Standard 24 Related Party Disclosures ("IAS 24"). The Group is also significantly influenced by its secon d largest shareholder the Republic of Croatia. For the purpose of disclosing related party transactions, the Gro up does not consider routine transactions (such as payment of taxes, fees, mineral rents, excise duties, etc.) with various local utility companies (directly or indirectly owned by the State) or with other government bodies as related parties’ transactions. Company purchased and sold goods and services in transactions with rel ated parties during the ordinary course of business in 2025 and 2024. All of these transactions were conducted und er market prices and conditions. Details of the transactions between Company and the Group companies and other related parties a re disclosed below.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 332 41. RELATED PARTY TRANSACTIONS (continued) During the year, the Group entered into the following related party transactions: Group Sales of goods and services Purchase of goods and services (in thousand euro) 2025 2024 2025 2024 Related companies through direct or indirect ownership - associates Plinara Istočne Slavonije d.o.o. 26,282 14,195 167 214 Plinara Pula d.o.o. 6,665 4,832 - 1 ED INA d.o.o. 1,034 657 1,907 990 Share in company as non-current financial assets JANAF d.d. Zagreb 1,153 972 11,404 9,373 Ultimate parent company MOL Nyrt. 52,683 148,659 180,313 130,618 Related companies controlled through the same ultimate parent Tifon d.o.o. 130,437 146,137 2,239 3,644 MOL & INA d.o.o. 93,062 72,432 - - SLOVNAFT, a.s. 57,428 17,080 252,209 265,954 MOL Serbia d.o.o. 10,396 685 1 15 MOL Petrochemicals Co. Ltd. 4,120 4,304 - - MOL Commodity Trading Kft. 3,986 - 10,545 28,363 MOL Slovenia d.o.o. 997 371 - 2 Petrolszolg Kft. 576 22 1 - Geoinform Kft. 170 97 140 155 MOL-LUB Kft. 129 163 128 139 MOL Pakistan 74 11 - - MOL Magyarország Társasági Szolgáltató Kft. 10 - 2 - MOL GBS 5 - 5 - MOL Transportation Services Kft. 1 - - - MOL Czech Republic Llc 1 1 - - ISO-SZER Kft. - 211 - 8,319 FGSZ Zrt. - - 233 176 MOL C.F. Kft. - - 4 5 FER Tuzoltosag Kft - 2 - - MOL Germany GMBH - - - 5,249 MOL Group International Services B.V. - - - 2 MOL GBS Magyarország Kft. - - - 1
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 333 41. RELATED PARTY TRANSACTIONS (continued) As at the date of the statement of financial position, the Group h ad the following outstanding balances with related parties: Group Amounts owed by related parties Amounts owed to related parties 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Related companies through direct or indirect ownership - associates and joint control Plinara Istočne Slavonije d.o.o. 3,827 432 25 20 Plinara Pula d.o.o. 822 308 - - ED INA d.o.o. 19 589 415 114 Share in company as non-current financial assets JANAF d.d. Zagreb 150 122 1,097 1,710 Ultimate parent company MOL Nyrt. 10,068 7,217 27,418 41,246 Related companies controlled through the same ultimate parent Tifon d.o.o. 7,536 3,104 360 (217) MOL & INA d.o.o. 6,559 6,608 - - MOL Serbia d.o.o. 1,534 72 296 194 SLOVNAFT, a.s. 923 173 2,342 49,314 MOL Petrochemicals Co. Ltd. 779 1 - - MOL Slovenia d.o.o. 402 133 70 539 Petrolszolg Kft. 159 - - - SC MOL Romania Petroleum Products S 24 17 1 1 Geoinform Kft. 20 18 378 212 MOL LUB Kft. 17 33 8 10 MOL Czech Republic Llc 11 10 5 11 MOL Slovenia Downstream Investment B.V. - - 5,369 5,369 MOL Fleet Solutions - - 36 31 MOL GBS Magyarország Kft. - - 4 1 MOL C.F. Kft. - - 1 1 MOHU MOL Hulladékgazdálkodási Zrt. - - 1 - MOL Pakistan - 41 - - MOL Commodity Trading Kft. - - - 1,673 ISO-SZER Kft. - - - 65 FGSZ Zrt. - - - 14 MOL Austria Handels GmbH - - - 7
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 334 41. RELATED PARTY TRANSACTIONS (continued) During the year, the Company entered the following related party transactions: Company Sales of goods and services Purchase of goods and services (in thousand euro) 2025 2024 2025 2024 Related companies through direct or indirect ownership -subsidiaries Holdina d.o.o. Sarajevo 418,264 426,506 62 24 INA Crna Gora d.o.o. Podgorica 52,983 46,143 - - INA Slovenija d.o.o. Ljubljana 14,368 12,080 - - CROSCO, naftni servisi d.o.o. 3,453 2,177 49,667 40,136 STSI, Integrirani tehnički servisi d.o.o. 3,346 3,511 90,360 93,066 Plavi tim d.o.o. 1,800 1,852 16,849 15,770 INA Maloprodajni servisi d.o.o. 1,069 960 73,555 64,247 INA MAZIVA d.o.o. 404 501 12,364 12,284 INA Vatrogasni Servisi d.o.o. 287 299 16,170 14,331 Top Računovodstvo Servisi d.o.o. 218 220 6,121 5,630 Hostin d.o.o. 93 96 43 49 Rotary Drilling Co Ltd Hungary 91 21 936 745 Croplin 22 22 - - Energopetrol d.d. 14 2 - - Adriagas S.r.l. Milano - - 342 342 INA Kosovo d.o.o. - - 43 52 INA d.o.o. Beograd - - 21 21 INA BL d.o.o. Banja Luka - - - 61 Related companies through direct or indirect ownership - associates and joint control Plinara Istočne Slavonije d.o.o. 25,782 13,695 167 214 Plinara Pula d.o.o. 6,664 4,831 - 1 ED INA d.o.o. 537 589 1,907 990 Share in company as non-current financial assets JANAF d.d. Zagreb 44 63 11,404 9,373 Ultimate parent company MOL Nyrt. 25,401 123,864 170,668 123,699 Related companies controlled through the same ultimate parent Tifon d.o.o. 130,082 145,801 2,239 3,644 MOL & INA d.o.o. 93,034 72,432 - - SLOVNAFT, a.s. 57,426 17,077 252,209 265,954 MOL Serbia d.o.o. 10,043 347 - - MOL Petrochemicals Co. Ltd. 4,120 4,304 - - MOL Commodity Trading Kft. 3,986 - 10,545 28,363 MOL Slovenija d.o.o. 64 368 - - MOL Pakistan 54 11 - - MOL Czech Republic Llc 1 1 - - MOL Transportation Services Kft. 1 - - - ISO-SZER Kft. - 7 - - FGSZ Zrt. - - 233 176 MOL C.F. Kft. - - 4 5 MOL GBS Magyarország Kft. - - 4 1 MOL Germany GmbH - - - 5,249 MOL Group International Services B.V. - - - 2
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 335 41. RELATED PARTY TRANSACTIONS (continued) As at the date of the statement of financial position, the Company h ad the following outstanding balances with related parties: Company Amounts owed by related parties Amounts owed to related parties 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Related companies through direct or indirect ownership - subsidiaries Holdina d.o.o. Sarajevo 17,491 10,635 140 148 INA Crna Gora d.o.o. Podgorica 5,299 3,567 1 1 STSI, Integrirani tehnički servisi d.o.o. 2,054 1,049 20,361 16,851 INA Slovenija d.o.o. Ljubljana 1,526 1,259 - - CROSCO, naftni servisi d.o.o. 857 559 6,885 6,059 Plavi tim d.o.o. 446 252 2,269 2,900 INA Maloprodajni servisi d.o.o. 229 144 10,188 8,377 INA MAZIVA d.o.o. 103 68 1,674 932 Top Računovodstvo Servisi d.o.o. 79 40 481 1,024 INA Vatrogasni Servisi d.o.o. 64 77 1,777 2,424 Hostin d.o.o. 28 21 9 - Energopetrol d.d. 3 16 1 1 Croplin d.o.o. 2 2 - - Rotary Drilling Co Ltd Hungary 2 2 - 55 Adriagas S.r.l. Milano - - 57 57 INA Kosovo d.o.o. - - 11 15 INA Beograd d.o.o. - - 2 7 Related companies through direct or indirect ownership - associates and joint control Plinara Istočne Slavonije d.o.o. 3,827 432 25 20 Plinara Pula d.o.o. 822 308 - - ED INA d.o.o. 14 580 415 78 Share in company as non-current financial assets JANAF d.d. Zagreb 40 14 1,097 1,710 Ultimate parent company MOL Nyrt. 5,958 2,826 21,279 34,206 Related companies controlled through the same ultimate parent Tifon d.o.o. 7,468 3,057 360 (224) MOL & INA d.o.o. 6,522 6,608 - - MOL Serbia d.o.o. 1,493 36 295 187 SLOVNAFT, a.s. 923 172 2,342 49,279 MOL Petrochemicals Co. Ltd. 779 1 - - MOL Slovenia d.o.o. 341 126 62 521 SC MOL Romania Petroleum Products S 24 17 1 1 MOL Czech Republic Llc 11 10 5 11 MOL Pakistan - 11 - - MOL Slovenia Downstream Investment B.V - - 5,369 5,369 MOL C.F. Kft. - - 1 1 MOL GBS Magyarország Kft. - - 4 1 MOL Commodity Trading Kft. - - - 1,673 FGSZ ZRT - - - 14
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 336 41. RELATED PARTY TRANSACTIONS (continued) The loans from the ultimate controlling party are unsecured. Intragroup f inancing terms, i.e., arm's length price of the Group companies' loan transactions is determined consistently based o n internal and external comparable transactions using Comparable uncontrolled price method. As ats 31 December 2025 intragroup loan placement currency was EUR, in vast majority of the cases loans are unsecured. Loan to and from related parties: Company Amounts of loans owed by related parties Amounts of loans owed to related parties 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Related companies through direct or indirect ownership -subsidiaries INA Crna Gora d.o.o. Podgorica 8,529 8,539 - - CROSCO, naftni servisi d.o.o. 7,631 19,373 - - INA Slovenija d.o.o. Ljubljana 2,008 2,511 - - STSI, Integrirani tehnički servisi d.o.o. 1,776 10 - 2,003 INA MAZIVA d.o.o. 209 - - 1,599 INA Maloprodajni servisi d.o.o. 4 - 4,314 5,212 Holdina d.o.o. Sarajevo 1 1 - - Energopetrol d.d. 1 1 - - INA Vatrogasni Servisi d.o.o. 1 - 863 987 INA Industrijski Servisi d.o.o. - - 16,240 10,704 Plavi tim d.o.o. - - 6,314 5,281 Hostin d.o.o. - - 3,891 2,807 Adriagas S.r.l. Milano - - 1,620 1,626 Top Računovodstvo Servisi d.o.o. - - 1,154 237 Croplin d.o.o. - - 1,031 930 The carrying amount of loans given to subsidiaries amounts to EUR 20,160 th ousand as at 31 December 2025 and EUR 30,435 thousand at 31 December 2024. Long-term financial liabilities refer to the amount of long-term liabilities based on the allocation of funds within the Group in amount of EUR 21,129 thousand at 31 December 2025 (2024: EUR 22,072 thousand). Derivative transactions with related parties: Group and Company Income from hedge transactions -net effect 31 December (in thousand euro) 2025 2024 Related companies controlled through the same ultimate parent MOL Commodity Trading Kft. 2,409 4,723
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 337 41. RELATED PARTY TRANSACTIONS (continued) Derivative transactions with related parties: Group and Company Receivables from hedge transactions 31 December (in thousand euro) 2025 2024 Related companies controlled through the same ultimate parent MOL Commodity Trading Kft. 5,010 10,262 Group and Company Liabilities for hedge transactions 31 December (in thousand euro) 2025 2024 Related companies controlled through the same ultimate parent MOL Commodity Trading Kft. 5,862 12,516 Deposits with related parties: Group and Company Deposits over three monts 31 December (in thousand euro) 2025 2024 Related companies controlled through the same ultimate parent MOL FGSZ ZRT 168 158 Product sales and purchases between related parties were made at the Grou p’s usual prices, reduced by discounts and rebates depending on each relationship. For oil products sales to related parties, the Company does not require payment security instruments, except in the case of sales on foreign markets, in order to be compliant with the Foreign Exchange Act. Compensation of key management personnel The compensation of directors and other members of key management during the year was as follows: Company At 31 December (in thousand euro) 2025 2024 Short-term employee benefits 5,943 5,393 Severance payments 200 84 Total 6,143 5,477 The amounts included above refer to the compensation of the Management Board Members and directors of second and third level organisational units. In 2025 and 2024 Management Board Members and directors did not receive compensation such as other long-term benefits and share-based payment.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 338 41. RELATED PARTY TRANSACTIONS (continued) Compensation of key management personnel (continued) A number of key management members in the Company or their related parties, hold positions in other companies of the Group that result in them having control or significant influence over these companies. In 2025, for the period January to December expense for contributions pl an to key management personnel of the Company amounted to EUR 829 thousand (2024: EUR 738 thousand). 42. COMMITMENTS The Group and the Company have a number of continuing operational an d financial commitments in the normal course of their businesses including: ⚫ exploration and development commitments arising under production sharing agre ements; ⚫ exploratory drilling and well commitments abroad; ⚫ take or pay contract, gas transportation contract and gas selling contract; ⚫ guarantees, performance bonds and letters of credit with Croatian and foreign banks; ⚫ completion of the construction of certain assets. Gas Transportation contracts At 1 January 2026, the future gas transportation contracted commitments with LNG Croatia, until 30 September 2026 amounted to EUR 277 thousand, those from 1 October 2026 until 30 September 2031 amounted to EUR 7,141 thousand, those from 1 October 2031 until 1 January 2040 amounted to EUR 18,544 thousand. Gas purchase contract obligations (Take or pay) The Company entered into a one-year " take-or-pay " natural gas import contract for the gas year. Under this agreement, the Company will purchase volumes of natural gas required to meet forecasted customer or own demands. As of 1 January 2026, the Company’s future contractual commitments for natural gas with MET AUSTRIA ENERGY TRADE GMBH for the period to 30 September 2026 amounted to EUR 27,125 thousand. The contract includes a p ricing feature indexed to market gas prices. The contract is an own-use contract for physical delivery and is therefore not accounted for as a derivative under IFRS 9.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 339 42. COMMITMENTS (continued) Lease contracts The future lease payments under non-cancellable lease contracts are as follows: Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 within 1 year 3,500 2,707 3,100 2,230 between 1 - 5 years 15,400 1,881 14,200 918 Total 18,900 4,588 17,300 3,148 Guarantees The Group guarantees the performance under the respective contracts. The to tal value of guarantees undertaken to third parties is contractually EUR 91,618 thousand (2024: EUR 92,388 thousand), which is the maximum amount the Group is exposed to (Company: 2025: EUR 56,251 thousand, 2024: EUR 61,496 thousand). In the event of default, the contract terms contain a maximum compensation payment to the unrelated parties. At 31 De cember 2025 the Company had guarantees for related parties in amount of EUR 60,797 thousand (2024: EUR 94,080 thousand). Based on expectations at the end of the reporting period, the Group does not expect any liability to arise. The contractual maturity is based on the earliest date on which the Group may be required to pay. Capital and Contractual Commitments The total value of contractual obligations for capital investments as of 31 December 2025 is EUR 102,056 thousand. The largest contractual obligations relate to geothermal exploration in Croatia - Leščan and Međimurje (EUR 35,392 thousand), operations in Egypt (EUR 17,064 thousand) where Company is present in several concessions, together with contractual obligations for exploration concessions in Pannonia related to the Sava-07 (EUR 14,156 thousand) and Drava-03 (EUR 16,200 thousand) concessions and contractual obligations to EDINA (EUR 19,243 thousand, confirmed scope) related to the drilling campaign in the northern Adriatic. All other obligations are not con firmed but depend on the approval of the founders (Energean and INA) for the continuation of the Irena and Izabel a JI projects. Other capital commitments in the amount of EUR 30,563 thousand as of 31 December 2025 relate primarily to activitie s in Croatia and represent contracted investments that can be cancelled.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 340 43. CONTINGENT LIABILITIES Accounting policies Contingent liabilities are not recognised in the consolidate d and separate financial statements unless they are acquired in a business combination. Contingent liabilities are disclosed in t he notes unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the consolidated and separate financial statements but disclosed when an inflow of economic benefits is probable. Environmental matters The Group’s and the Company’s principal activities which comprise of oil and gas exploration, production, transportation, refining and distribution, can have inherent effects on the environment in terms of emissions into soil, water and air. The Group and the Company regularly record, monitor and report on environ mental emissions and are committed to transparency towards interested stakeholders. The increasingly demanding regulatory framework in environmental protection area requires a continuous assessment of the impact on busi ness in order to identify the most cost-effective measures for compliance with strict legal requirements. The EU Regulation (EU) 2024/1787 on the reduction of methane emissions in the energy sector entered into force on 13 June 2024 and is directly applicable in all EU Member States. This regulation introduces strict requirements for methane emission reductions across the energy sector, including the oil industry. Starting in 2025, Company has begun implementing the provisions of this Regulation, e.g. LDAR measurement on oil and gas production facilities, active and inactive wells. Leak Detection and Repair program (LDAR) is a comprehensive set of activities designed t o identify, monitor, and mitigate (minimize) fugitive emissions and leaks from equipment and compon ents such as valves, pumps, piping, and other oil and gas infrastructure. Through the implementation of tertiary methods to increase hydrocarbon recovery from the reservoir, increasing production capacities by injecting CO 2 into mature production fields, and helping to protect the environme nt by permanently storing CO2, until now, more than 3.5 million tons of CO 2 have been injected, most of which (more than 83%) is permanently stored deep undergrounds. Important step in reducing CO2 emission footprint was achieved by this activity. A new compressor station was built at the Fract ionation Facilities Ivanić Grad, and in the technological process, all CO₂ is separated from the gas and subsequently injected into the oil res ervoirs of the Ivanić and Žutica fields. As part of the tria l operation, final preparations for commissioning of the plant are un derway, and the facility is currently being prepared for start-up. European Union Emissions Trading System (EU ETS System) is one of the fundamental m echanisms of the European Union fighting against climate change. Inside the System, a part of the emiss ion allowances (one allowance = 1 tonne of CO 2) is allocated to installations for free and they are used to "cover" th e emissions from the previous year. If the installation ha s a shortage of allowances in respect of verified emissions, the rest must be bought on the market. To achieve the EU's overall greenhouse gas emissions reduction target for 2030, the organisational un its covered by the EU ETS must reduce their emissions. All three INA's ETS, Rijeka Oil Refinery, Ivanić Grad Fraction ation Facilities, Molve Gas Processing Facilities, installations are aligned with the 4th EU ETS Trading Phase, whi ch is valid until 2030. Free allocated emission allowances are reduced due to the historical activity level decrease and application of more stringent benchmarks for refinery products heat and fuel.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 341 43. CONTINGENT LIABILITIES (continued) Environmental matters (continued) Also, in accordance with the new requirements of the ETS Directive, which introduced a new Greenhouse gas emissions trading system for suppliers placing fuels for road transport and heat ing on the market (ETS2), the ETS2 CO 2 emissions monitoring plan was developed and the first annual emissions repo rt for 2024 was prepared and submitted to authorities in legally prescribed deadlines. The Group and the Company continued to implement best available techn iques, invest in renewable energy sources and energy efficiency projects. The Company became a commercial producer of electricity from renewable sources by putting into operation largest solar power plant at Virje location. Together with its second solar power plant, one in Sisak, the Company supplied 13,449 MWh of electricity from renewable sources to the energy grid in 2025. As at 31 December 2025, contingencies at the Company were estimated at EUR 60,530 tho usand and at the Group level they were estimated at EUR 65,167 thousand, while as at 31 December 2024 contingencies at the Company were estimated at EUR 58,719 thousand and at the Group level they were estimated at EUR 63,234 thousand. Contingent environmental refers to possible expense for which the timing of their occurrence is uncertain. Legal disputes The Group and the Company are exposed to various legal disputes. The following disputes are considered contingencies, and no provision is recognised in the financial statements in their respect. Belvedere – EUR 29,199 thousand, 018-14/17 The plaintiff has filed a claim with the Commercial Court in Zagreb, see king reimbursement of damages, claiming that the Company has caused damage to the plaintiff by selling its real estate en cumbered by INA’s liens – fiduciary, whereby the plaintiff was prevented from continuing its business operations. The plaintiff claims that the damage is evident from the fact that the loan was actually a loan substituting the capital which is settled in a bankruptcy proceeding as a lower payment priority claim. The Company submitted its response to the lawsuit in which it contested all the plaintiff’s allegations, both in relation to the grou nds and the amount and stated that the collection of the concerned claims was in any case insured by a separ ate satisfaction right, granting the creditor in bankruptcy the right to a separate settlement. After the court granted a stay in this proceeding, based on Company’s request, the court decided to continue the proceeding. The appeal was denied and the next court’s action is pending.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 342 43. CONTINGENT LIABILITIES (continued) Legal disputes (continued) Belvedere d.d., Dubrovnik– EUR 3,000 thousand, 018-11/23 The plaintiff has filed a claim with the Commercial Court in Zagreb to determine null and void loan agreement dated 9 February 2005 and Agreement on securing the claim by transferring the owners hip of the RE (fiduciary ownership) no. SP- 0134-00025/04 dated 10 February 2005. Main argument used by plaintiff is that d efendant, as one of the shareholders of the plaintiff, used the state of crisis at the moment of loan placement and coerced plaintiff into signing usurious contract. Reply of the lawsuit has been submitted on 16 October 2023. On the second preparatory hearing, the court concluded the proceeding and has published a decision on 8 November 2024 by w hich it rejected the plaintiff`s request. The plaintiff has filed an appeal against the judgment, and the decision of the appellate court is pending. Belvedere d.d., Dubrovnik – EUR 12,181 thousand, 018-14/23 pas The plaintiff has filed a claim against INA, d.d. and Vila Larus d .o.o with the Commercial Court in Zagreb to determine null and void Purchase agreement no. OU-221/2014 dated 10 February 2015. Plaintiff is using the same argumentation used by Clestone Corp Ltd in the proceeding held before Commercial Court in Zagreb under no. P- 1626/2014 which was finished in favour of INA, d.d. and Vila Larus d.o.o. Main argument used by plaintiff is that sale should note have been done by notary public but exclusively within the bankruptcy proceeding. Both defendants have submitted the replies to the lawsuit. RSG Europe Service Limited - INA and Manšped d.o.o., NŠ-13/21, EUR 2,820 thousand The lawsuit was filed on 4 August 2021 with the Commercial Court in Rijeka. T he plaintiff, as the insurer of the shipowner of ship FIDELITY, is seeking damages for the total amount paid under settl ements concluded with the Republic of Croatia, the Istria County and other legal and natural persons due to damage cau sed to them by spillage of fuel from ship FIDELITY into the sea in the Raša Bay on 22 June 2018. It is stated in the lawsui t that INA, d.d. as the concessionaire for fuel suppl y in the Raša Port and MANŠPED d.o.o. as its subcontractor (carrier) caused damage because INA hired MANŠPED as its subcontractor which neither had the concession or concession approval to perf orm these services, nor authorized and professional (trained) personnel who would be able to deliver fuel for ship FIDELITY, whereby they allegedly, during the delivery of bunker marine oil (fuel), violated the provisions of the Ordi nance and committed the described damage, which was determined in the Report of the Port Authority of Pula of 20 July 2018. The response to the lawsuit was filed on 17 December 2021 with the Com mercial Court in Rijeka. The response to the lawsuit contests the lawsuit in its entirety because the factual situation indicates the responsibility of the ship's crew, i.e. of the plaintiff's policy holder. On 8 July 2022 the Court issued the decision that the plaintiff should pay the amount of EUR 265 thousand (total for both defendants) on the account number of the Court as a guarantee for the costs of the procedure. On 1 August 2022 the plaintiff submitted an appeal against that decision, and on 23 August 2022 paid the mentioned amount. The appeal has been rejected.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 343 43. CONTINGENT LIABILITIES (continued) Legal disputes (continued) RSG Europe Service Limited - INA and Manšped d.o.o., NŠ-13/21, EUR 2,820 thousand (continued) At the hearing of 4 December 2023, the officials of the Pula Port Authority were heard. After that, the judge decided that an expert report on the cause of the accident be carried out. The Expert's Report was submitted on 19 October 2024. In the report the expert concluded that (even if there were omissions from other participants) the ship's crew is responsible for the spillage of fuel into the sea. At the hearing 7 February 2025 the Co urt heard the expert, who answered to the claimant’s objections. The judge closed the hearing and scheduled the publication of the verdict for 21 March 2025. With the verd ict of 21 March 2025, the claim of the plaintiff has been denied entirely. The plaintiff filed the appeal on 4 April 2025, and the response to the appeal has been filed on 25 April 2025. The file is at the High Commercial Court of the Republic of Croatia.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 344 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Accounting policies Financial assets Initial measurement of financial instruments Financial assets are divided into two main categories, those measured at amortized cost and those measured at fair value. Fair value measurement is further divided into fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVTOCI). Subsequent measurement of financial assets Financial assets are classified in four categories: Financial assets at amortized cost (debt instruments) A debt instrument that meets the following two conditions is measured at amortized cost: • Business model test: The financial asset is held to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair value changes); and • Cash flow characteristics test: The contractual terms of the finan cial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; Within statement of cash flows, intercompany loans are presented net due to the facts that cash receipts and payments have a quick turnover, the amounts are large, and the maturities are short. Financial assets at fair value through other comprehensive income (debt instruments) A debt instrument that meets the following two conditions must be measured at FVTOCI unless the asset is designated at FVTPL under the fair value option: • Business model test: The financial asset is held within a business mod el with the objective of both holding to collect contractual cash flows and selling; and • Cash flow characteristics test: The contractual terms of the finan cial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group and the Company invest only in government bonds and quoted debt securities with a very low credit risk. When the asset is derecognised or reclassified, changes in fair value previou sly recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss. Financial assets at fair value through profit or loss (debt instruments) All other debt instruments must be measured at FVTPL. Financial assets designated at fair value through other comprehensive income Upon initial recognition, the Group and the Company can elect to classify irrevocably its equity investments as equity instruments designated at FVTOCI when they meet the definition o f equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. The Group and the Company elected to classify its listed equity investments under this category. Derecognition of financial assets The basic premise for the derecognition model is to determine whether the asset under consideration for derecognition is: • an asset in its entirety; • specifically identified cash flows from an asset (or a group of similar financial assets); • fully proportionate (pro rata) share of the cash flows from an asset (or a group of similar financial assets); or • fully proportionate (pro rata) share of specifically identified cash flows from a financial asset (or a group of similar financial assets). Once the asset under consideration for derecognition has been determined, an assessment is made as to whether the asset has been transferred, and if so, whether the transfer of that asset is subsequently eligible for derecognition.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 345 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Accounting policies (continued) Financial assets (continued) Impairment The impairment model is based on the premise of providing for expected losses. General approach With the exception of purchased or originated credit impaired financial assets, expected credit losses are measured through a loss allowance at an amount equal to: • the 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); • or full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). A loss allowance for full lifetime expected credit losses is requ ired for a financial instrument if the credit risk of that fin ancial instrument has increased significantly since initial recognit ion, as well as to contract assets or trade receivables that d o not constitute a financing transaction in accordance with IFRS 15. Simplified approach The Group and the Company apply the simplified approach for the following financial assets: trade receivables, IFRS 15 contract assets and lease receivables. The Group and the Company calculates the expected credit loss o n trade receivables as the average of yearly historical loss rates of the last three years multipli ed by the forward-looking element. The forward-looking element is based on positive correlation between banking sect or credit losses and one year lag of unemployment rate. The Group and the Company shall recognise in profit or loss, as an im pairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date. Independently of the two approaches mentioned above, the imp airment method stayed the same in case of financial assets where there is objective evidence on impairment. These are re quired to be assessed on a case- by-case basis. The maximum amount of impairment accounted for by the Group and the Co mpany is 100% of unsecured part of the financial asset. The amount of loss is recognised in the statement of profit or loss. The following indicators are objective evidence for impairment, but it is not limited to it: • legal execution against the customer; • default of the issuer; • total or partial release of claim; • claim is under external connection; • > 180 days overdue; • disappearance of an active market. Financial liabilities Initial recognition and measurement Financial liabilities are measured at amortised cost, unless they are required to be measured at fair value through profit or loss or the entity has opted to measure a liability at fair value through profit or loss. A financial liability is required to be measured at fair value through profit or loss in case of derivatives. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s and the Company’s financial liabilities include trade an d other payables, loans and borrowings including bank overdrafts and derivative financial instruments. The Group and the Company do not have any financial instrument d esignated upon initial recognition as at fair value through profit or loss in order to reduce a measurement or recognition inconsistency.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 346 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Accounting policies (continued) Financial liabilities (continued) Subsequent measurement The measurement of financial liabilities depends on their classification. Loans This is the category most relevant to the Group and the Company. After initial recognition, interest-bearing loans are subsequently measured at amortised cost. Gains and losses are recognise d in profit or loss when the liabilities are derecognised. Amortised cost is calculated by taking into accoun t any discount or premium on acquisition and fees or incremental costs. Derecognition of financial liabilities A financial liability derecognised when, and only when, it is extinguished, that is, when the obligation specified in the contract is either discharged or cancelled or expires. Capital risk management The Group’s primary objective in managing its capital is to ensure good capital ratios in order to support all business activities and maximise the value to all shareholders by optimising the debt and equity ratio. The Group’s capital structure consists of the debt portion which includes borrowings as detailed in notes 29 and 32 offset by cash and bank balances as well as short-term marketable securities (so-called net debt) and shareholder equity comprising issued capital, reserves, retained earnings and non-controlling in terests as detailed in notes 37 until 40. The Group’s and the Company’s capital structure is reviewed quarterly. As a part of the review, the cost of equity and debt capital is considered, and risks are associated with each class of debt and eq uity capital. Internally, the Group’s and the Company’s maximum gearing ratio is determined. The gearing ratio at the end of the reporting year was as follows: Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Debt: 663,751 592,240 695,964 619,894 Bonds issuance 264,997 264,552 264,997 264,552 Short-term loans 398,754 327,688 397,200 325,647 Liabilities for cash allocation - - 33,767 29,695 Cash and cash equivalents (161,486) (110,036) (148,145) (101,399) Net debt 502,265 482,204 547,819 518,495 Equity 1,637,461 1,584,688 1,667,095 1,642,132 Equity and net debt 2,139,726 2,066,892 2,214,914 2,160,627 Gearing ratio 23% 23% 25% 24% Fair value of issued bond at 31 December 2025 amounts to EUR 259,606 thousand and EUR 245,006 thousand at 31 December 2024 .
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 347 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Categories of financial instruments Carrying amount Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Financial assets Cash and cash equivalents 161,486 110,036 148,145 101,399 Trade receivables 293,473 296,571 265,414 264,158 Other financial assets 96,886 93,080 115,108 122,194 Non-current financial assets 92,707 98,055 92,707 98,055 Derivative financial instruments 3,926 11,533 3,926 11,533 Marketable securities 2,584 2,574 2,584 2,574 Financial assets designated as at fair value through profit or loss 887 887 619 619 Financial liabilities Bonds issuance 264,997 264,552 264,997 264,552 Loans and borrowings 398,754 327,688 397,200 325,647 Liabilities for cash allocation - - 33,767 29,695 Lease liabilities 75,830 39,143 70,115 44,221 Trade payables 293,876 357,909 281,386 348,604 Derivative financial instruments 9,108 9,951 9,108 9,951 Financial risk management objectives The Group and the Company continuously monitor and manage financial risks. In accordance with internal procedures the Group and the Company manage and maintain commodity, foreign exchange, inte rest, liquidity and credit risk at an acceptable level, allowing to achieve its strategic objectives while protecting the future financial stability and flexibility of the Group. The Company carries out finance activities of the company, coordin ates finance operations of the Group and the Company on domestic and international financial markets, monitors and manages t he financial risks related to the operations of the Group and the Company. Risks, together with methods used for managing of these risks are describ ed below. The Group used derivative financial instruments in order to manage financial risks. Derivative financial i nstruments are regulated by signing ISDA (International Swaps and Derivatives Association) Agreements and Derivative financial instr uments framework agreements with counterparties. The Group does not use derivative financial instruments for speculative purposes.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 348 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Market risk Commodity price risk management The volatility of crude oil and gas prices is the prevailing el ement in the business environment of the Group and the Company. The Group and the Company buy crude oil mostly through short-term arrangements in USD at the current spot market price. In 2025, the Group and the Company bought necessary natural gas quantities in EUR based on the spot price. In addition to exploration and production, and refinery operations, one of the main core activities of the Group and the Company are marketing and sale of refinery products and natural gas. In accordance with internal procedures, for the purpose of hedging financial risk exposure on the corporate and business operations level, the Company may use forward, swap, and option instruments. In 2025, the Group and the Company entered into swap transactions to hedge its exposure to changes in i nventory levels, changes in pricing periods, crack spreads and fixed price contracts. The transactions were initiated to reduce exposures to potential fluctuations in prices over the period of decreasing inventories at the storages of Rijeka refinery, as well as to match the pricing period of purchased crude oil and refined crude products with the crude oil processing and refinery product retail pricing periods. Commodity swap derivative financial instruments entered by the Company are generally traded in an over-the-counter market with professional market counterparties on standardised contractual terms and con ditions. Foreign currency risk management As the Group and the Company operates both in Croatia and abroad, many o f its transactions are denominated and executed in foreign currencies, hence Group and the Company are expos ed to exchange rate risks. Group and the Company manages its currency risk using natural hedging, a combination of currencies in th e debt portfolio with and the expected cash flow of the Group. Furthermore, in order to avoid excessive exposures to fluctuations in the foreign exchange rate with respect to a single currency (i.e., USD), the Group and th e Company monitors the currency mix of its debt portfolio. The carrying amounts of the Group’s and the Company’s foreign currency den ominated monetary assets and monetary liabilities at the reporting date are as follows: Group Company 31 December 31 December (in thousand euro) 2025 2024 2025 2024 Assets at currency USD 215,252 242,971 212,708 243,333 Liabilities at currency USD 103,445 439,314 100,563 437,656
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 349 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Foreign currency sensitivity analysis The Group and the Company is mainly exposed to currency risk related to change of the EUR exchange rate against USD, due to the fact that crude oil and natural gas trading on internation al markets and the Group’s and the Company’s debt portfolio are denominated in the mentioned currencies. The following table details the sensitivity of the Group and the Com pany to a 10% strengthening or weakening of EUR at 31 December 2025 and 2024 (same sensitivity rate used for the preceding peri od) against the USD. The sensitivity rate used, represents ma nagements’ assessment of the usual change in foreign exchange rates. The sensitivity analysis includes monetary assets and liabilities in foreign currencies. The s ensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at th e period end for a change in foreign currency rates expressed as a percentage. A negative number below indicates a decrease in pro fit where EUR changes against the relevant currency by the percentage specified above. For the same change of EUR versus the relevant currency in the opposite direction, there would be an equal and opposite impact on the profit. Group Company (in thousand euro) 2025 2024 2025 2024 Profit/(Loss) from currency USD impact 11,181/(11,181) 19,634/(19,634) 11.215/(11.215) 19.432/(19.432) Exposure to a change in the dollar exchange rate by 10% is mostly related to the balance of receivables from customers and other receivables, received loans and the balance of liabilities to suppliers expressed in US dollars (USD). Interest rate risk management The Group and the Company is exposed to interest rate risk, since the Group and the Company generally borrow funds at floating interest rates. Interest rate risk analysis The sensitivity analysis below has been determined based on in terest rate risk exposure at the statement of financial position date, for those borrowings where the Group and the Com pany is exposed to third parties. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the balance sheet date was outstanding for the whole year. A 50 or 200 basis point increase or decrease is u sed when reporting interest rate risk internally and represents management’s assessment of the reasonably possible change in interest rates. Result of sensitivity analyses is disclosed below: Group Company (in thousand euro) 2025 2024 2025 2024 Short-term interest expense change (50 basis points) 1,971/(1,971) 1,637/(1,637) 1,946/(1,964) 1,627/(1,627) Short-term interest expense change (200 basis points) 7,885/(7,885) 6,550/(6,550) 7,854/(7,854) 6,509/(6,509)
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 350 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Other price risks The Group and the Company is exposed to changes in market prices of equity investments in the form of investment in JANAF shares. Equity investments are held for strategic rather than trading purposes. Equity price sensitivity analysis The sensitivity analyses below have been determined based on the exposure to equity price risks at the reporting date. If equity prices had been 10% higher other equity reserves of the Gro up and the Company would increase by gross EUR 9,271 thousand. If equity prices had been 10% lower, there would be an equal but opp osite gross impact on equity. Credit risk management Sales of products and services with deferred payment gives rise to credit risk, risk of default or non-performance of contractual obligations by the customers of the Group and the Company. Overdue receivables have negative impact on the Group’s and the Company’s liquidity of, whereas impaired overdue receivables have a negative impact on the financial results as well. Under currently valid internal procedures, measures are taken as a precaution against the risk of default. Customers are classified into risk groups by reference to their financial indicators and the trading records with the Group and the Company, and appropriate measures to provide protection against cre dit risk are taken for each group of customers. The information used to classify the customers into risk groups is mainly derived from the publicly available financial statements of the customers and is also obtained from independent rating agencies. The exposure and the credit ratings of customers are continuously monitored, and credit exposure is controlled by credit limits that are reviewed at least on an annual basis. In 2025 and 2024, credit risk management was under additional scrutiny, taking into account the potential decrease of market liquidity influenced by the external environment i.e., inflation, high uncertainty regarding energy prices movements, govern mental limitation of margins. Whenever possible, the Group and the Company collect collaterals (payment security instruments) f rom customers in order to minimize the risk of collection of receivables arising from contractual liabilities of customers. The Group and the Company transact with a large number of customers fro m various industries and of various size. A portion of goods sold with a deferred payment term includes government institutions and customers owned by the state and local self-governments that do not provide any collaterals. Regarding other customers, provided collaterals are mainly debentures, being the most frequently used payment security i nstrument on the Croatian market. Bank guarantees and credit insurance are used as well, whereas from foreign customers le tters of credit are mostly obtained, and to a lesser extent bank and corporate guarantees and exceptionally bills of exchange. There is no significant credit risk exposure of the Group and the Comp any that is not covered with collateral, other than those to the above-mentioned institutions and entities controlle d by the state, local self-government, and those arising from certain foreign concession agreements.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 351 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Liquidity risk management The Group and the Company manage liquidity risk by maintaining and u tilising adequate headroom and credit facilities while monitoring the due dates of receivables and liabilities. On an operative level within INA Group, liquidity optimisation is additionally achieved through cash pooling. The Group’s policy is to ensure sufficient external fundin g sources in order to achieve the appropriate level of available frame credit lines ensuring Group’s liquidity as well as investment needs. Based on business needs and industry practice, the Company has contracted short-term credit facilities (“trade finance’’) with first class banking groups for financing crude oil and oil products purchase. As at 31 December 2025, the Group had contracted (utilized and available) short-term credit facilities for financing crude oil and oil products purchase amounting to EUR 450,795 thousand. As at 31 December 2025, the Group had contracted (utilized and available) short-term cre dit lines amounting to EUR 563,247 thousand, excluding overdrafts, bank guarantees and trade financing credit lines established with the purpose to finance the purchase of crude oil and oil products. As at 31 Decem ber 2025, the Group had contracted and available long-term credit lines amounting to EUR 520,000 thousand. For details of the m ain external sources of funding for INA Group and the Company, see note 29 and 31. With the purpose of diversification of funding sources and in o rder to ensure a sufficient liquidity and financial stability level, the Company is continuously considering different fundin g opportunities with other creditors as well and in December 2021 the Company issued bonds in the amount of HRK 2 billion (EUR 265,446 thousand) with a 5-year maturity (2026) and fixed coupon rate.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 352 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Liquidity and interest risk tables The following tables detail the remaining contractual maturity for fi nancial liabilities of the Group and the Company at the period end. Analyses have been drawn up based on the un discounted cash flows at the earliest date on which the payment can be required. The tables include both principal and interest cash flow s. Group (in thousand euro) Less than 1 month 1 - 12 months 1 - 5 years 5+ years Total 31 December 2025 Interest-bearing loans and borrowings 249,454 417,514 - - 666,968 Lease liabilities 1,648 17,277 50,132 14,454 83,511 Trade payables and other liabilities 262,820 47,233 1,834 - 311,887 Other financial liabilities 4,235 206 378 - 4,819 Non derivative financial instruments 518,157 482,230 52,344 14,454 1,067,185 Derivative financial instruments - 8,796 - - 8,796 518,157 491,026 52,344 14,454 1,075,981 31 December 2024 Interest-bearing loans and borrowings 223,747 106,121 264,553 - 594,421 Lease liabilities 1,073 7,984 20,409 13,027 42,493 Trade payables and other liabilities 362,884 55,793 2,285 5 420,967 Other financial liabilities 5,185 - - - 5,185 Non derivative financial instruments 592,889 169,898 287,247 13,032 1,063,066 Derivative financial instruments - 9,951 - - 9,951 592,889 179,849 287,247 13,032 1,073,017 Company (in thousand euro) Less than 1 month 1 - 12 months 1 - 5 years 5+ years Total 31 December 2025 Interest-bearing loans and borrowings 249,200 414,597 - - 663,797 Lease liabilities 1,590 17,016 43,357 8,348 70,311 Trade payables and other liabilities 261,701 31,555 1,834 - 295,090 Other financial liabilities 4,235 12,903 21,441 - 38,579 Non derivative financial instruments 516,726 476,071 66,632 8,348 1,067,777 Derivative financial instruments - 8,796 - - 8,796 516,726 484,867 66,632 8,348 1,076,573 31 December 2024 Interest-bearing loans and borrowings 223,773 104,079 264,552 - 592,404 Lease liabilities 1,346 10,456 24,923 10,316 47,041 Trade payables and other liabilities 351,796 34,683 2,285 5 388,769 Other financial liabilities 5,185 7,706 22,072 - 34,963 Non derivative financial instruments 582,100 156,924 313,832 10,321 1,063,177 Derivative financial instruments - 9,951 - - 9,951 582,100 166,875 313,832 10,321 1,073,128
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 353 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Liquidity and interest risk tables (continued) In 2025, non-interest-bearing liabilities of the Company due in a period of less than one month consist mainly of trade payables in the amount of EUR 259,829 thousand (2024: EUR 336,563 thousand). Interest bearing liabilities include short-term borrowings, long-term borrowing, and leases. Fair value of financial instruments Valuation techniques and assumptions applied for the purposes of measuring fair value The fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with sta ndard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices; • the fair value of other financial assets and financial liabilities is determined in accordance with generally accepted pricing models based on the discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments; • the fair values of derivative instruments are calculated using quo ted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yie ld curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivat ives. The following table provides an analysis of financial instrume nts that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable: • Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and • Level 3 fair value measurements are those derived from valuation techn iques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 354 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Fair value of financial instruments (continued) Fair value measurements recognized in the statement of financial position: Group 31 December 2025 (in thousand euro) Level 1 Level 2 Level 3 Total Financial assets at fair value Non-current financial assets 92,707 - - 92,707 Other investments - - 887 887 Marketable securities 2,584 - - 2,584 Derivative financial instruments - 3,926 - 3,926 Receivables for contingency consideration - - 3,240 3,240 Financial liabilities at fair value - Derivative financial instruments - 8,796 - 8,796 31 December 2024 (in thousand euro) Level 1 Level 2 Level 3 Total Financial assets at fair value Non-current financial assets 98,055 - - 98,055 Other investments - - 887 887 Marketable securities 2,574 - - 2,574 Derivative financial instruments - 11,533 - 11,533 Receivables for contingency consideration - - 5,556 5,556 Financial liabilities at fair value Derivative financial instruments - 9,951 - 9,951 Company 31 December 2025 (in thousand euro) Level 1 Level 2 Level 3 Total Financial assets at fair value Non-current financial assets 92,707 - - 92,707 Other investments - - 619 619 Marketable securities 2,584 - - 2,584 Derivative financial instruments - 3,926 - 3,926 Receivables for contingency consideration 3,240 3,240 Financial liabilities at fair value Derivative financial instruments - 8,796 - 8,796 31 December 2024 (in thousand euro) Level 1 Level 2 Level 3 Total Financial assets at fair value Non-current financial assets 98,055 - - 98,055 Other investments - - 619 619 Marketable securities 2,574 - - 2,574 Derivative financial instruments - 11,533 - 11,533 Receivables for contingency consideration - - 5,556 5,556 Financial liabilities at fair value Derivative financial instruments - 9,951 - 9,951
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 355 44. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Fair value of financial instruments (continued) There were no transfers between levels 1 and 2 during the year. • Financial instruments in level 1 The fair value of financial instruments included in Level 1 comprise JANAF shares equity investments and Republic of Croatia bonds classified as non-current financial assets for which the value is determined based on quoted market pri ces. A market is considered as active if quoted prices are current and regularly available. • Financial instruments in level 2 and level 3 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. Specific valuation techniques used to value financial instruments include: • The fair value of derivative transactions is calculated based on actual historic quotations from Platts (provider of energy and metals information and a source of benchmark price assess ments in the physical energy markets) and market forward quotations of the underlying commodities.
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INA GROUP and INA-INDUSTRIJA NAFTE, d.d. Consolidated and separate financial statements for the year ended 31 December 2025 356 45. SUBSEQUENT EVENTS Tax resolution from the Ministry of Finance After the reporting date, the Company received a Tax resolution from the Ministry of Finance, Tax Administration, issued on 10 February 2026, concluding the corporate income tax audit for the period from 1 January 2020 to 31 December 2021 and the VAT audit for the period from 1 January to 31 December 2021. The tax audit identified additional tax liabilities in the total amount of EUR 22 million and related default interest of EUR 4.9 million, calculated up to the date of issuance of the Tax Audit Report. The Company filed an appeal against the tax resolution within the prescribed statutory deadline. Geopolitical developments in the Middle East At the end of February 2026, geopolitical tensions in the Middle East escalated, which may contribute to increased volatility in the global energy market. Management is closely monitori ng the situation and evaluating the potential implications for the Company’s and the Group’s operations. Regulatory measures related to fuel prices in Croatia On 9 March 2026, the Government of the Republic of Croatia adopted a Re gulation setting the highest retail prices for petroleum products in response to the increase in crude oil prices on the global market and with the aim of protecting citizens and the economy. The Regulation defines the maximum retail prices of petroleum products that energy entities engaged in wholesale and/or retail trade of petroleum products are permitted to apply within the territory of the Republic of Croatia. The above events represent subsequent events that do not require adjustment of the amounts recognised in the financial statements. Based on the information currently available, Management consid ers that there is no need to revise the estimates and assumptions used in the preparation of the financial statements and that these measures do not affect the going concern of the Company and the Group.
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358 8. APPENDICES Glossary of Terms and Acronyms TERM/ACRONYM DEFINITION 1P reserves Proven reserves 2P reserves Proven and probable reserves bcm – mcm Billion cubic metres – million cubic metres bn – mn Billion – Million CAPEX Capital expenditures CBCSD Croatian Business Council for Sustainable Development CCS EBITDA/ Profit/(loss) from operations The CCS methodology eliminates from EBITDA/Profit/(loss) from operation s inventory holding profit/(loss) (i.e.: reflecting actual cost of supply of crude oil and other major raw materials); impairment on inventories; furthermor e, adjusts EBITDA/Profit/(loss) by capturing the results of underlying hedge transactions. CCS/CCUS Carbon capture and storage/ Carbon capture, utilisation and storage CEE Central and Eastern Europe CEGH Central European Gas Hub CEEMEA Central and Eastern Europe, Middle East and Africa CEO Chief Executive Officer CFO Chief Financial Officer CH% Percentage change CLP Classification, labelling and packaging of substances and mixtures CNB Croatian National Bank CSI Croatian Standards Institute CSR Corporate Social Responsibility CSRD Corporative Sustainability Reporting Directive d.d. PLC (Public Limited Company) DNSH Do No Significant Harm DR Disclosure Requirement d.o.o. LLC (Limited Liability Company) DS Downstream/Refining and Marketing D&I Diversity and inclusion Earnings per share Earnings per share is based on the profit attributable to ordinary shareholders using the weighted average number of shares outstanding during the year, after the deduction of the average number of treasury shares held over the period EB Employee Brand EBEN East Bir El Nus EBITDA Earnings before interest, tax, depreciation and amortisation EBIT + Depreciation, amortisation and impairment (net) EEA European Environmental Agency EIP Efficiency Improvement Programme EOR Enhanced Oil Recovery ESP Electric Submersible Pump EU European Union EU ETS European Union Emission Trading System EURIBOR Euro Interbank Offered Rate ESRS European Sustainability Reporting Standards G&Gs Geological and Geophysical GDR Global depositary receipts Gearing ratio Net debt/Net debt + equity including non-controlling interest GHG Greenhouse gases HAZOP Hazard and Operability Study HR Human Resources
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359 TERM/ACRONYM DEFINITION HSE Health, Safety and the Environment HUNIG Croatian Association of Petroleum Engineers and Geologists IFRS International Financial Reporting Standards, formerly International Accounting Standards (IAS) IMO International Maritime Organisation IPM Integrated Production Model IPCC Intergovernmental Panel on Climate Change KPI Key Performance Indicator L2 managers Managers responsible for the operation of business/function LIBOR London Interbank Offered Rate LNG Liquefied natural gas MB Management Board MBA Master of Business Administration Mboe/d Thousand barrels of oil equivalent per day MMboe – Mboe Million Barrels of Oil Equivalent – Thousands of Barrels of Oil Equivalent Mt – kt – t Million tons – kiloton – ton MTBF Mean time between failure Mtpa Million tons per annum NCI Nelson Complexity Index OECD Organisation for Economic Co-operation and Development OHS Occupational Health and Safety OPEC Organisation of the Petroleum Exporting Countries OTIF On-time in-full P&ID Piping and Instrumentation Diagram PPE Personal Protective Equipment PSAs Production sharing agreement PSM Process Safety Management REACH Registration, Evaluation, Authorisation and Restriction of Chemicals Retail locations Service stations and other retail locations (auto bar/restaurants, carwash, shop, Heating Oil sales point, LPG sales point) R&M Downstream/Refining and Marketing SAF Sustainable Aviation Fuel SD Sustainable Development SDG Sustainable Development Goals SDS Safety data sheet SeS Service Stations Simplified free cash flow CCS EBITDA excluding special items – Capital expenditures TCFD Task Force on Climate-related Financial Disclosures TIER Process Safety Events (Tier 1 higher consequence, Tier 2 lower consequence) TRIR Total Recordable Injury Rate TTF Title Transfer Facility TU Trade Union TSC Technical Screening Criteria UK United Kingdom UNGC United Nations Global Compact WC Workers Council
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360 Information for shareholders Corporate Address INA – INDUSTRIJA NAFTE, d.d. Avenija Većeslava Holjevca 10 10 020 Zagreb Phone: 0800 1112 Web: www.ina.hr Investor Relations Avenija Većeslava Holjevca 10 10 020 Zagreb Phone: +385 1 459 2718 Email: investitori@ina.hr Sustainable Development Avenija Većeslava Holjevca 10 10 020 Zagreb Email: Odrzivi_Razvoj@ina.hr Corporate Communications and Marketing Avenija Većeslava Holjevca 10 10 020 Zagreb Phone: +385 1 6450 552 Email: PR@ina.hr Central Depository and Clearing Company Inc. Heinzelova 62a 10 000 Zagreb Phone: +385 1 4607 300 Web: www.skdd.hr Zagreb Stock Exchange, Inc. Ivana Lučića 2a 10 000 Zagreb Phone: +385 1 4686 800 Web: www.zse.hr Announcements The company publishes its announcements on INA’s website: www.i na.hr, on the Zagreb Stock Exchange’s website: http://www.zse.hr and on the Croatian News Agency’s website: http://www.hina.hr