Interim report
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 2 Contents Page Endorsement and Statement by the Board of Directors and the CEO …….………………………………….…… 3 Consolidated Statement of Comprehensive Income ………….…………….………………………………….…… 4 Consolidated Statement of Financial Position ………….…………………………………………….………….…… 5 Consolidated Statement of Changes in Equity …………………………………………………………….…….…… 6 Consolidated Statement of Cash Flows ……………………………………………………………………….….…… 7 Notes to the Condensed Consolidated Interim Financial Statements ……………………………………………… 8 1. Reporting entity …………………………………………………………………………………………………… 8 2. Basis of preparation ………………………………………………………………………………….…………… 8 3. Use of estimates and judgements ……………………………………………………….……………………… 8 4. New and revised IFRSs …………………………………………………………………………………………… 8 5. Operating segments ……………………………………………………………………….……………………… 9 6. Business combinations ……………………………………………………………………….…………………… 11 7. Operating income ………………………………………………………………………….………...…………… 11 8. Margin from sale of goods and services …………………...……………………………….….….…………… 12 9. Salaries and other personnel expenses …………………...…………………………………………………… 13 10. Other operating expenses …………………………………...…………………………………………...……… 13 11. Finance income and finance costs …………………………...………………………………………….……… 13 12. Operating assets ………………………………………………...…………………………………………...…… 14 13. Share options ……………………………………………………...…………………………………….........…… 14 14. Interest bearing loans ……………………………………………...…………….…………….……………….… 15 15. Lease liabilities ……………………………………………………….…………………………….………………. 16 16. Group entities ………………………………………………………...………………………….……………….… 17 17. Other matters …………………………………………………………………………………….……………….… 18 18. Financial ratios ……………………………………………………...………………………….…………...……… 18
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 3 Endorsement and Statement by the Board of Directors and the CEO Operations of the Group The Condensed Consolidated Interim Financial Statements of Festi hf. for the period from 1 January to 3 0 September 2026 have been prepared in accordance with International Accounting Standard IAS 34, Interim Financial Reporting, and should be read in conjunction with the Group's Annual Consolidated Financial Statements as at and for the year ended 31 December 2025. The interim financial statements comprise the Consolidated Interim Financial Statements of Festi hf. (the "Company") and its subsidiaries, together referred to as the "Group". The Condensed Consolidated Interim Financial Statements have not been audited or reviewed by the Company's independent auditors. Operations in the nine-month period ended 30 September 2026 For the period 1 January to 3 0 September 2026, profit amounted to ISK 3,827 million (2025 9M: 4,349 million). Total comprehensive income for the period was ISK 3,812 million (2025 9M: 4,367 million). At the end of the period equity amounted to ISK 48,229 million, including share capital in the amount of ISK 306 million. Based on the Company's 2026 Annual General Meeting resolution in March, a dividend of ISK 2,151 million was approved and paid to the shareholders in April. Reference is made to the Consolidated Statement of Changes in Equity regarding information on changes in equity. Operations of the Group in the third quarter were satisfactory overall, although performance varied between business units and combined results were below budget. Sales increased by 8.6% compared with the same quarter last year, while margin from sales decreased by 1.3%, with the gross margin declining by 2.3 percentage points year on year. The ongoing conflict in the Middle East has created significant geopolitical uncertainty. Commodity markets, including oil, have seen considerably higher prices and increased volatility amid concerns over supply -chain disruptions, which, as expected, resulted in continued pressure on margins in the fuel segment during the third quarter. In addition, fewer tourists compared with last year dampened sales across the business segments. In management's view, margins in the fuel segment will remain under pressure in the coming months. Inflation in Iceland remains high, at around 6%, and is expected to stay elevated through the fourth quarter, affecting the cost of goods and operating expenses across all categories. Despite this, the Group has been very successful in containing costs, with salaries and other operating expenses increasing by only 3.2% in the third quarter compared with the same period last year. Management continues to address these challenges, including working with suppliers to limit their impact on operations. The outlook for the year remains good, and the EBITDA forecast for the year is unchanged in the range of ISK 16,000–16,500 million. Statement by the Board of Directors and the CEO The Company's Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Accounting Standard IAS 34 , Interim Financial Reporting , as adopted by the European Union and, as applicable, additional requirements of the Icelandic Financial Statements Act. To the best of our knowledge, and in our opinion, the Condensed Consolidated Interim Financial Statements give a true and fair view of the financial performance of the Group for the nine-month period ended 30 September 2026, its assets, liabilities and financial position as of 30 September 2026, and changes in cash and cash equivalents for the period then ended. Furthermore, in our opinion, the Condensed Consolidated Interim Financial Statements and the Endorsement and Statement by the Board of Directors and the CEO give a true and fair view of the development and results of the Group's operations and its position, and describe the principal risks and uncertainties faced by the Group. The Board of Directors and the CEO have today discussed the Condensed Consolidated Interim Financial Statements of Festi hf. for the period from 1 January to 30 September 2026 and confirm them by means of their signatures. Kópavogur, 28 October 2026. Board of Directors Hjörleifur Pálsson, Chairman Sigurlína Ingvarsdóttir, Vice-Chairman Edda Blumenstein Guðjón Auðunsson Guðjón Karl Reynisson CEO Ásta Sigríður Fjeldsted
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 4 Amounts are in thousands of ISK Consolidated Statement of Comprehensive Income for the period from 1 January to 30 September 2026 The notes on pages 8 to 18 are an integral part of these condensed financial statements. Notes 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 7 51.146.856 47.093.027 137.554.636 128.457.975 39.245.739)( 35.036.015)( 104.384.303)( 96.180.923)( 8 11.901.117 12.057.012 33.170.333 32.277.052 7 600.341 544.788 1.724.096 1.662.926 9 5.409.280)( 5.225.073)( 17.099.732)( 16.114.737)( 10 2.104.252)( 2.057.334)( 6.333.957)( 6.078.921)( 6.913.191)( 6.737.619)( 21.709.593)( 20.530.732)( Operating profit before depreciation, amortisation 4.987.926 5.319.393 11.460.740 11.746.320 Depreciation of property and equipment and leased 1.571.856)( 1.494.962)( 4.666.976)( 4.484.096)( 43.088 28.049)( 165.762 103.352 3.459.158 3.796.382 6.959.526 7.365.576 11 118.382 124.698 299.459 333.292 11 954.667)( 927.624)( 2.948.502)( 2.914.433)( 836.285)( 802.926)( 2.649.043)( 2.581.141)( 212.123 250.939 377.724 524.388 2.834.996 3.244.395 4.688.207 5.308.823 525.637)( 593.531)( 861.389)( 959.421)( 2.309.359 2.650.864 3.826.818 4.349.402 Other comprehensive income Translation differences arising from operations 0 4.590 0 9.657)( Effective portion of changes in fair value 32.768 58.935)( 14.389)( 27.586 32.768 54.345)( 14.389)( 17.929 2.342.127 2.596.519 3.812.429 4.367.331 7,51 8,52 12,44 13,97 7,44 8,42 12,30 13,81 of cash flow hedges, net of income tax ................. Total other comprehensive income (loss) .......................................................................... Items that are or may be reclassified subsequently to profit or loss: Sales of goods and services .................................. Cost of goods sold ................................................. Other operating income ......................................... Margin from sales of goods and services ................................................................................................................ of a foreign associate ............................................ Finance costs ........................................................ Share of profit of associates .................................. Income tax ............................................................... and changes in fair value (EBITDA) ........................................................................................... Operating profit before finance items (EBIT) ........................................................................................... Salaries and other personnel expenses ................ Other operating expenses ..................................... assets and amortisation of intangible assets ........ Total comprehensive income for the period .............................................................................................. Basic earnings per share in ISK .............................. Profit for the period .......................................................................................................... Profit before income tax (EBT) .......................................................................... Changes in value of investment property ................ Finance income ..................................................... Diluted earnings per share in ISK ........................... Net finance costs ..............................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 5 Amounts are in thousands of ISK Consolidated Statement of Financial Position as at 30 September 2026 The notes on pages 8 to 18 are an integral part of these condensed financial statements. Notes 30.9.2026 31.12.2025 Assets 18.949.095 18.367.104 7.579.632 7.659.020 12 45.450.645 43.654.738 12.100.553 10.509.753 7.319.849 6.731.281 2.020.234 2.078.910 52.837 44.140 91.965 50.972 Non-current assets 93.564.810 89.095.918 16.682.578 14.178.995 6.754.529 5.435.100 1.050.493 1.122.164 1.771.117 5.928.914 Current assets 26.258.717 26.665.173 Total assets 119.823.527 115.761.091 Equity 13 305.870 309.009 7.804.669 8.988.824 20.817.546 20.758.820 19.300.709 17.627.190 Equity 48.228.794 47.683.843 Liabilities 14 22.574.525 24.015.932 15 11.545.972 10.029.389 8.466.932 7.620.470 Non-current liabilities 42.587.429 41.665.791 14 5.957.941 3.392.579 15 1.584.369 1.437.761 13.656.178 12.875.525 7.808.816 8.705.592 Current liabilities 29.007.304 26.411.457 Total liabilities 71.594.733 68.077.248 Total equity and liabilities 119.823.527 115.761.091 Interest-bearing loans .................................................................................... Lease liabilities .............................................................................................. Trade payables .............................................................................................. Other short-term liabilities .............................................................................. Other restricted equity ................................................................................... Retained earnings ......................................................................................... Interest-bearing loans .................................................................................... Lease liabilities .............................................................................................. Deferred tax liability ....................................................................................... Goodwill ......................................................................................................... Other intangible assets .................................................................................. Share premium .............................................................................................. Property and equipment ................................................................................ Leased assets ............................................................................................... Investment property ........................................................................................ Shares in associates ..................................................................................... Shares in other companies ............................................................................ Long-term receivables ................................................................................... Inventories ..................................................................................................... Trade receivables .......................................................................................... Other short-term receivables ......................................................................... Cash and cash equivalents ........................................................................... Share capital ..................................................................................................
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Condensed Consolidated Interim Financial Statements 30 September 2026 6 Amounts are in thousands of ISK Consolidated Statement of Changes in Equity for the period from 1 January to 30 September 2026 The notes on pages 8 to 18 are an integral part of these condensed financial statements. Unrealised profit of Other Share Share Statutory Revaluation subsidiaries restricted Retained Total capital premium reserve reserve and associates accounts earnings equity 1 January to 30 September 2025 Equity at 1 January 2025 ...................................................................... 311.254 9.803.982 77.814 6.834.403 11.405.001 59.208)( 15.119.951 43.493.197 Profit for the period ............................................................................... 4.349.402 4.349.402 Total other comprehensive income ...................................................... 17.929 17.929 Restricted equity relating to subsidiaries and associates ..................... 1.277.157 1.277.157)( 0 Release of revaluation reserve relating to an associate ....................... 35.034)( 35.034 0 Release of revaluation reserve for property and equipment ................. 128.190)( 128.190 0 311.254 9.803.982 77.814 6.671.179 12.682.158 41.279)( 18.355.420 47.860.528 Transactions with shareholders: Share options ....................................................................................... 89.594 89.594 Share options exercised ....................................................................... 1.049 195.031 196.080 Purchase of own shares ....................................................................... 2.160)( 646.775)( 648.935)( Transfer from statutory reserve ............................................................ 278)( 278 0 Dividends paid to shareholders (ISK 4.50 per share) ........................... 1.400.642)( 1.400.642)( Equity at 30 September 2025 ............................................................... 310.143 9.352.238 77.536 6.671.179 12.682.158 41.279)( 17.044.650 46.096.625 Total other restricted equity ................................................................. 19.389.594 1 January to 30 September 2026 Equity at 1 January 2026 ...................................................................... 309.009 8.988.824 77.252 6.627.482 14.038.297 15.789 17.627.190 47.683.843 Profit for the period ............................................................................... 3.826.818 3.826.818 Total other comprehensive loss ............................................................ 14.389)( 14.389)( Restricted equity relating to subsidiaries and associates ..................... 235.149 235.149)( 0 Release of revaluation reserve relating to an associate ....................... 41.532)( 41.532 0 Release of revaluation reserve for property and equipment ................. 119.718)( 119.718 0 309.009 8.988.824 77.252 6.466.232 14.273.446 1.400 21.380.109 51.496.272 Transactions with shareholders: Share options ....................................................................................... 71.256 71.256 Share options exercised ....................................................................... 1.521 295.766 297.287 Purchase of own shares ....................................................................... 4.660)( 1.479.921)( 1.484.581)( Transfer from statutory reserve ............................................................ 785)( 785 0 Dividends paid to shareholders (ISK 7.00 per share) ........................... 2.151.440)( 2.151.440)( Equity at 30 September 2026 ............................................................... 305.870 7.804.669 76.468 6.466.232 14.273.446 1.400 19.300.709 48.228.794 Total other restricted equity .................................................................. 20.817.546 Other restricted equity
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 7 Amounts are in thousands of ISK Consolidated Statement of Cash Flows for the period from 1 January to 30 September 2026 The notes on pages 8 to 18 are an integral part of these condensed financial statements. Notes 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. Cash flows from operating activities Operating profit before depreciation, amortisation and 4.987.926 5.319.393 11.460.740 11.746.320 Operating items not affecting cash flows: 226)( 2.621)( 10.539)( 19.908)( 4.987.700 5.316.772 11.450.201 11.726.412 Changes in operating assets and liabilities: 777.429 30.539)( 2.500.083)( 228.642)( 200.729 943.317 958.116)( 1.543.611 112.303)( 1.290.505 165.619)( 3.921.686 865.855 2.203.283 3.623.818)( 5.236.655 51.458 26.529 183.242 84.164 861.336)( 767.117)( 2.096.081)( 2.309.587)( 204.945)( 115.412)( 819.781)( 461.650)( 4.838.732 6.664.055 5.093.763 14.275.994 Cash flows from investing activities 6 30.251)( 0 30.251)( 0 469.099)( 91.246)( 885.094)( 559.116)( 12 1.799.114)( 1.090.867)( 4.561.037)( 3.547.970)( 33.815 24.796 78.522 72.718 14.968)( 9.396)( 58.230)( 157.651)( 20.036 0 49.964)( 0 6.000 0 477.667 500.586 1.963)( 400 40.992)( 4.517)( 2.255.544)( 1.166.313)( 5.069.379)( 3.695.950)( Cash flows from financing activities 921.174)( 648.935)( 1.484.581)( 648.935)( 0 0 2.151.440)( 1.400.642)( 0 0 297.287 196.080 808.672)( 2.807.342)( 1.661.163)( 4.914.376)( 413.121)( 378.947)( 1.191.978)( 1.102.264)( 5.111 0 1.977.685 0 2.137.856)( 3.835.224)( 4.214.190)( 7.870.137)( 445.332 1.662.518 4.189.806)( 2.709.907 Effect of exchange rate changes on cash and cash equivalents ................................................................................................................. 12.377 6.496 32.009 26.021 1.313.408 5.142.272 5.928.914 4.075.358 1.771.117 6.811.286 1.771.117 6.811.286 Investing and financing activities not affecting cash flows 6 533.572)( 0 533.572)( 0 6 533.572 0 533.572 0 15 2.073.880)( 15.853)( 2.855.169)( 1.477.386)( 15 2.073.880 15.853 2.855.169 1.477.386 0 0 4.200.000 0 0 0 4.200.000)( 0 Acquisition of subsidiary, net of cash acquired ............................................... Trade and other short-term liabilities .............................................................. New long-term loans ....................................................................................... Repayment of interest-bearing loans from credit institutions ......................... New lease contracts and their remeasurement ............................................. New lease liabilities and their remeasurement ............................................... Cash and cash equivalents at the beginning of the period ................................................................................................................. Cash and cash equivalents at the end of the period ................................................................................................................. Increase (decrease) in cash and cash equivalents ................................................................................................................. Repayment of interest-bearing loans .............................................................. Net cash used in financing activities Change in short-term loans ............................................................................ Repayment of lease liabilities ........................................................................ Acquisition of subsidiary, net of cash acquired ............................................... Interest received ............................................................................................ Interest paid ................................................................................................... Dividends paid ................................................................................................ Share options exercised ................................................................................. Net cash used in investing activities Proceeds from sale of property and equipment ............................................. Purchase of investment properties ................................................................ Change in long-term receivables ................................................................... Dividends received ......................................................................................... Income tax paid .............................................................................................. Net cash from operating activities Purchase of intangible assets ........................................................................ Purchase of property and equipment ............................................................. Purchase of shares in companies ................................................................... Purchase of own shares ................................................................................. Changes in operating assets and liabilities Gain on sale of property and equipment ..................................................... changes in fair value (EBITDA) ................................................................... Trade and other short-term receivables, decrease (increase) .................... Inventories, (increase) decrease ................................................................. Trade and other short-term liabilities, (decrease) increase .........................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 8 Amounts are in thousands of ISK Notes to the Condensed Consolidated Interim Financial Statements 1. Reporting entity Festi hf. (the "Company ") is an Icelandic public limited liability company incorporated and domiciled in Iceland. The Company's headquarters are located at Dalvegur 10-14, Kópavogur, Iceland. The main business activities of the Company and its subsidiaries (together referred to as the "Group") consist of the sale of fuel, goods and services at service stations, groceries and related products, the sale of medicines, the sale of electronic equipment and the leasing of properties. These Condensed Consolidated Interim Financial Statements of the Company as at and for the nine months ended 30 September 2026 comprise the Company and its subsidiaries. The Company is listed on Nasdaq Iceland. 2. Basis of preparation The Condensed Consolidated Interim Financial Statements for the nine months ended 3 0 September 2026 have been prepared in accordance with International Accounting Standard IAS 34, Interim Financial Reporting, as adopted by the European Union and, as applicable, additional requirements of the Icelandic Financial Statements Act. The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention, except for financial assets and liabilities measured at fair value through other comprehensive income and the Company's real estate leased to third parties, which is measured at fair value. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in th e Group's financial position and performance since the last annual Consolidated Financial Statements as at and for the year ended 31 December 2025. The accounting policies and methods of computation applied in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31 December 2025. The Condensed Consolidated Interim Financial Statements are prepared and presented in Icelandic krona (ISK), which is the Company's functional currency. All amounts are presented in thousands of ISK unless otherwise stated. The Board of Directors of Festi hf. approved the Condensed Consolidated Interim Financial Statements on 28 October 2026. 3. Use of estimates and judgements The preparation of the Condensed Consolidated Interim Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions, which affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were in all major matters the same as those applied to the Consolidated Financial Statements as at and for the year ended 31 December 2025. 4. New and revised IFRS's The accounting policies and methods of computation applied in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31 December 2025. The Group has not adopted the following new or amended standards that have been issued but are not yet effective for the financial year 2026: The adoption of IFRS 18 will affect the presentation of information in the financial statements without affecting accounting measurement and the Group’s income. Preparations for the implementation of the standard are ongoing; however, the final impact has not yet been determined. The European Union has endorsed IFRS 18 but not IFRS 19. Furthermore, management considers that the adoption of other standards or amendments to standards that have been issued but are not yet effective will have no or an immaterial effect on the financial statements. Standard Effective date - IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 - IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2028
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 9 Amounts are in thousands of ISK Notes, continued: 5. Operating segments An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses relating to transactions with other segments of the Group. Segments are determined by the Company's management, which regularly reviews the Group's segments to decide how resources are allocated and to assess their financial performance. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire operating assets and intangible assets. Inter-segment transactions are priced on an arm's length basis. The operating companies ELKO, Krónan, Lyfja, N1 and Yrkir eignir each constitute a separate operating segment. The Group's other entities comprise the sixth segment, which consists of the operations of the Parent Company, Festi, and Bakkinn Vöruhótel. Reportable segments for the nine months ended 30 September 2026 Reportable segments for the nine months ended 30 September 2025 Other Segment ELKO Krónan Lyfja N1 Yrkir eignir companies total External revenue ..................................................... 14.775.029 63.621.322 15.478.035 44.778.042 430.454 195.850 139.278.732 Intra-group revenue ................................................. 38.300 1.609.540 352.385 372.174 3.203.511 4.603.104 10.179.014 Total segment revenue ............................................ 14.813.329 65.230.862 15.830.420 45.150.216 3.633.965 4.798.954 149.457.746 Operating profit before depreciation, amorti- sation and changes in value (EBITDA) .............. 1.281.774 5.344.594 1.098.708 3.971.279 2.876.347 1.490.034 16.062.736 Segment depreciation and amortisation .................. 555.835)( 1.927.603)( 821.887)( 2.478.934)( 1.660.313)( 797.457)( 8.242.029)( Changes in value of investment property ................ 0 0 0 0 165.762 0 165.762 Operating profit of segments (EBIT) ........................ 725.939 3.416.991 276.821 1.492.345 1.381.796 692.577 7.986.469 Net finance costs ..................................................... 63.138)( 227.292)( 56.115)( 643.981)( 1.385.114)( 1.179.137)( 3.554.777)( Share of profit of associates ................................... 0 0 0 0 0 377.724 377.724 Income tax ............................................................... 132.560)( 637.940)( 43.342)( 169.835)( 663 97.383 885.631)( Profit (loss) for the period ........................................ 530.241 2.551.759 177.364 678.529 2.655)( 11.453)( 3.923.785 30 September 2026 Segment assets ....................................................... 6.894.290 29.078.012 11.161.983 28.470.796 33.283.994 81.187.426 190.076.501 Segment capital expenditure ................................... 347.555 1.560.139 294.121 1.470.722 609.531 1.222.293 5.504.361 Segment liabilities ................................................... 4.542.529 22.181.671 5.067.494 17.835.409 23.506.611 32.066.858 105.200.572 Other Segment ELKO Krónan Lyfja N1 Yrkir eignir companies total External revenue ..................................................... 14.524.378 57.854.072 14.449.033 42.588.489 450.568 254.361 130.120.901 Intra-group revenue ................................................. 12.759 1.376.987 302.814 376.708 2.897.921 4.563.825 9.531.014 Total segment revenue ............................................ 14.537.137 59.231.059 14.751.847 42.965.197 3.348.489 4.818.186 139.651.915 Operating profit before depreciation, amorti- sation and changes in value (EBITDA) .............. 1.246.134 4.594.529 1.198.183 4.951.246 2.639.140 1.366.566 15.995.798 Segment depreciation and amortisation .................. 533.208)( 1.834.333)( 817.391)( 2.345.067)( 1.578.358)( 672.323)( 7.780.680)( Changes in value of investment property ................ 0 0 0 0 103.352 0 103.352 Operating profit of segments (EBIT) ........................ 712.926 2.760.196 380.792 2.606.179 1.164.134 694.243 8.318.470 Net finance costs ..................................................... 100.371)( 200.708)( 101.695)( 462.779)( 1.201.920)( 1.450.914)( 3.518.387)( Share of profit of associates ................................... 0 0 0 0 0 524.388 524.388 Income tax ............................................................... 122.511)( 511.898)( 55.861)( 428.680)( 7.557 148.842 962.551)( Profit (loss) for the period ........................................ 490.044 2.047.590 223.236 1.714.720 30.229)( 83.441)( 4.361.920 30 September 2025 Segment assets ....................................................... 6.811.715 25.144.514 11.064.284 30.171.106 32.122.859 86.850.886 192.165.364 Segment capital expenditure ................................... 262.430 1.255.407 212.014 951.127 1.063.114 520.645 4.264.737 Segment liabilities ................................................... 4.730.539 19.148.077 5.215.382 18.757.691 24.127.383 39.289.038 111.268.110
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 10 Amounts are in thousands of ISK Notes, continued: 5. Operating segments, continued: Reconciliations of reportable segment revenues, profit or loss, assets and liabilities, and other material items in the Consolidated Statement of Comprehensive Income. According to 1.1.-30.9.2026 Segment financial total Eliminations statements 16.062.736 4.601.996)( 11.460.740 8.242.029)( 3.575.053 4.666.976)( 165.762 165.762 7.986.469 1.026.943)( 6.959.526 3.554.777)( 905.734 2.649.043)( 377.724 377.724 885.631)( 24.242 861.389)( 3.923.785 96.967)( 3.826.818 30 September 2026 190.076.501 70.252.974)( 119.823.527 5.504.361 5.504.361 105.200.572 33.605.839)( 71.594.733 1.1.-30.9.2025 15.995.798 4.249.478)( 11.746.320 7.780.680)( 3.296.584 4.484.096)( 103.352 103.352 8.318.470 952.894)( 7.365.576 3.518.387)( 937.246 2.581.141)( 524.388 524.388 962.551)( 3.130 959.421)( 4.361.920 12.518)( 4.349.402 30 September 2025 192.165.364 74.529.596)( 117.635.768 4.264.737 4.264.737 111.268.110 39.728.967)( 71.539.143 Segment assets ...................................................................................... Segment capital expenditure .................................................................. Segment liabilities .................................................................................. Changes in fair value of investment property ......................................... Operating profit (EBIT) ........................................................................... Net finance costs .................................................................................... Share of profit of associates .................................................................. Income tax .............................................................................................. Profit for the period ................................................................................. and amortisation of intangible assets ............................................... Operating profit (EBIT) ........................................................................... Net finance costs .................................................................................... Share of profit of associates .................................................................. Income tax .............................................................................................. Profit for the period ................................................................................. Segment assets ...................................................................................... Segment capital expenditure .................................................................. Segment liabilities .................................................................................. Operating profit before depreciation, amortisation and changes in fair value (EBITDA) ........................................................ Depreciation of property and equipment and leased assets Changes in fair value of investment property ......................................... Operating profit before depreciation, amortisation and changes in fair value (EBITDA) ........................................................ Depreciation of property and equipment and leased assets and amortisation of intangible assets ...............................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 11 Amounts are in thousands of ISK Notes, continued: 6. Business combination During the first nine months of 2026, the Group acquired two companies. N1, a subsidiary of Festi , signed purchase agreements in February for 70% and in July for the remaining 30% of the share capital of Local ehf., which specialises in restaurant operations, offering fresh and healthy fast food, including customisable salads, bowls, wraps and protein dishes. The company operates five locations in the capital region . On 28 August, Mengi, a subsidiary of Festi , signed a purchase agreement for the entire share capital of Skjáauglýsingar ehf ., which operates a nationwide digital advertising network, providing screen -based advertising in swimming pools, sports facilities, fitness centres and other high -traffic locations across Iceland. The total purchase price of both companies amounted to ISK 607 million but may increase by up to ISK 300 million, depending on the operating performance of Skjáauglýsingar in 2027 and 2028. The purchase price is specified as follows: The operations of both companies are included in the Consolidated Financial Statements from 30 September 2026, when all conditions of the purchase agreements were met . There is therefore no effect on the Statement of Comprehensive Income, while the effect on the Statement of Financial Position consists of the assets acquired and liabilities assumed, recognised at their estimated fair values. The purchase price allocation, including the calculation of goodwill, has not been finalised. The following table shows the consideration paid for Local and Skjáauglýsingar and the provisional amounts recognised for assets acquired and liabilities assumed at the acquisition date: During the first nine months of 2026, costs relating to the acquisition of Local and Skjáauglýsingar amounting to ISK 4 million were expensed under operating expenses in the Statement of Comprehensive Income. Cash payments for the acquisition of Local and Skjáauglýsingar are specified as follows: 7. Operating income Sale of goods and services Revenue from the sale of goods and services is recognised based on the fundamental principle of recognising revenue when, or as, control of the goods and services is transferred to the customer. Income from lease of real estate Properties leased to parties outside the Group are recognised as investment properties. Investment propert ies are properties held to earn rental income, for capital appreciation, or both. Investment properties are recognised at fair value. Fair value changes of investment properties are presented separately in profit or loss and therefore separately from lease income from those same assets. 73.550 533.572 607.122 Cash payment in October 2026 ......................................................................................................... Total purchase price .......................................................................................................................... Cash payment during the first nine months of 2026 .......................................................................... 105.576 3.500 27.442 43.299 14.216)( 11.330 151.800)( 25.131 581.991 607.122 Property and equipment ..................................................................................................................... Total net identifiable assets ............................................................................................................... Goodwill ............................................................................................................................................. Purchase price ................................................................................................................................... Interest-bearing loans ........................................................................................................................ Deferred tax liability ........................................................................................................................... Trade and other short-term liabilities ................................................................................................. Inventories ......................................................................................................................................... Trade and other short-term receivables ............................................................................................. Cash and cash equivalents ................................................................................................................ 73.550 43.299)( 30.251 533.572 563.823 Cash payment in October 2026 ......................................................................................................... Cash acquired from subsidiary .......................................................................................................... Total purchase price, net of cash acquired ........................................................................................ Cash payment during the first nine months of 2026 .......................................................................... Acquisition of subsidiary, net of cash acquired ..................................................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 12 Amounts are in thousands of ISK Notes, continued: 7. Operating income, continued: Other operating income Revenue from warehouse services, commissions, gain on sale of property and equipment, market grants and other income are presented in other operating income. 8. Margin from sales of goods and services Cost of goods sold consists of the purchase price as well as related transportation cost, excise tax, duties and distribution costs. Any decrease in the cost of inventories to net realisable value is expensed as part of cost of goods sold. Margin from sales of goods and services is specified as follows: Operating income is as follows: 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. Sales of goods and services: 24.957.465 23.187.299 70.178.339 64.831.465 14.400.232 12.362.007 33.104.659 30.707.526 5.066.543 5.168.921 14.626.041 14.366.745 4.011.697 3.702.922 11.800.736 10.763.130 2.710.919 2.671.878 7.844.861 7.789.109 51.146.856 47.093.027 137.554.636 128.457.975 Other operating income: 213.487 210.325 620.927 627.007 37.522 71.383 167.145 236.823 152.040 134.155 423.850 394.017 226 2.621 10.539 19.908 197.066 126.304 501.635 385.171 600.341 544.788 1.724.096 1.662.926 51.747.197 47.637.815 139.278.732 130.120.901 Convenience goods ................................................ Fuel and electricity .................................................. Electronic equipment .............................................. Other goods and services ....................................... Total sales of goods and services .......................... Prescription and over-the-counter medicines ......... Total operating revenue .......................................... Rental income from properties ............................... Warehouse services ............................................... Commissions .......................................................... Gain on sale of property and equipment ................ Other operating income .......................................... Total other operating income .................................. 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 6.056.556 5.582.309 16.771.381 15.364.768 2.449.395 3.071.840 6.303.309 7.179.187 1.359.716 1.409.228 4.023.776 3.799.142 1.012.231 960.320 2.945.017 2.847.526 1.023.219 1.033.315 3.126.850 3.086.429 11.901.117 12.057.012 33.170.333 32.277.052 Other goods and services ........................................... Margin from sales of goods and services .................. Convenience goods .................................................... Fuel and electricity ...................................................... Electronic equipment .................................................. Prescription and over-the-counter medicines .............
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 13 Amounts are in thousands of ISK Notes, continued: 9. Salaries and other personnel expenses Salaries and other personnel expenses are specified as follows: 10. Other operating expenses Other operating expenses are specified as follows: 11. Finance income and finance costs 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 4.464.333 4.263.901 13.434.923 12.543.278 788.555 766.085 2.939.809 2.837.992 156.392 195.087 725.000 733.467 5.409.280 5.225.073 17.099.732 16.114.737 Other personnel expenses ......................................... Total salaries and other personnel expenses ............ Salaries ...................................................................... Salary-related expenses ............................................. 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 606.724 627.014 1.886.203 1.822.791 329.523 327.377 939.672 915.430 503.777 489.812 1.514.456 1.476.660 151.511 109.331 455.499 391.335 351.548 343.016 1.053.383 1.023.692 46.380 28.318 177.659 101.291 114.789 132.466 307.085 347.722 2.104.252 2.057.334 6.333.957 6.078.921 Other expenses ......................................................... Total other operating expenses ................................ Property operating expenses .................................... Maintenance expenses ............................................. Sales and marketing expenses ................................. Insurance and claims expenses ............................... Office and administrative expenses .......................... Communications expenses ....................................... 2026 2025 2026 2025 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 27.026 99.897 147.097 249.046 30.052 22.801 81.545 82.246 6.000)( 2.000 0 2.000 67.304 0 70.817 0 118.382 124.698 299.459 333.292 722.887 724.409 2.253.189 2.327.321 197.127 167.165 518.259 494.736 34.653 22.116 92.110 66.064 0 13.934 0 26.312 0 0 84.944 0 954.667 927.624 2.948.502 2.914.433 Finance income is as follows: Interest expense on lease liabilities ........................... Other interest expense ............................................... Net foreign exchange loss ......................................... Interest income on cash and cash equivalents .......... Dividend income ........................................................ Net foreign exchange gain ......................................... Total finance income .................................................. Finance costs are as follows: Interest expense and CPI indexation on loans .......... Interest income on receivables .................................. Changes in fair value of derivatives ........................... Total finance costs .....................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 14 Amounts are in thousands of ISK Notes, continued: 12. Operating assets Acquisition of property, equipment and intangible assets in the first nine months of 2026 amounted to ISK 5,504 million (2025 9M: 4,265 million). Of this amount, investment in buildings was ISK 886 million (2025 9M: 1,774 million), interiors, equipment and tools ISK 3,647 million (2025 9M: 1,872 million) and computers, IT hardware and intangible assets ISK 971 million (2025 9M: 619 million). 13. Share options At the annual general meeting of Festi on 6 March 2024, two share option plans were approved, one for all permanent employees of the Group and the other for management. The Board of Directors decided to grant share options according to the specified share option plans at meetings on 23 Apri l 2024, 30 October 2024, 29 April 2025, 29 July 2025 and 29 April 2026. The fair value of share options granted to employees is estimated using the Black-Scholes formula. The total cost of the options is estimated at ISK 311 million over their vesting period, of which ISK 71 million was expensed as salary cost during the first nine months of 2026. Movements in share options are as follows: Weighted average Nominal exercise price shares at 30.9.2026 14.469 1.488)( 12.981 1.697 1.049)( 1.680)( 11.949 326 1.521)( 692)( 10.062 213,0 Forfeited share options.................................................................................................. Shares outstanding at 31 December 2025 for vesting in the coming years.................. Forfeited share options.................................................................................................. Shares outstanding at 30 September 2026 for vesting in the coming years................. Exercised share options................................................................................................ Share options granted in 2026...................................................................................... Exercised share options................................................................................................ Share options granted in 2024...................................................................................... Forfeited share options.................................................................................................. Shares outstanding at 31 December 2024 for vesting in the coming years.................. Share options granted in 2025...................................................................................... Share options granted: Weighted average Nominal exercise price shares at 30.9.2026 6.672 207,9 1.455 211,6 1.455 211,6 90 328,3 210 243,8 90 328,3 90 328,3 10.062 213,0 100% exercisable in August 2029................................................................................. 100% exercisable in May 2027...................................................................................... 100% exercisable in November 2027............................................................................ 100% exercisable in May 2028...................................................................................... 100% exercisable in August 2028................................................................................. 100% exercisable in November 2028............................................................................ 100% exercisable in February 2029..............................................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 15 Amounts are in thousands of ISK Notes, continued: 14. Interest bearing loans All interest-bearing loans are denominated in Icelandic kron a. The loans are secured by pledges over real estate and inventories. The loans are specified as follows: As of 30 September 2026, the Group had undrawn credit lines in the amount of ISK 2,500 million. 2026 2025 1.1.-30.9. 1.1.-31.12. Long-term loans 24.015.932 29.339.934 5.861.163)( 7.124.343)( 4.200.000 40.272 14.216 0 6.952 46.265 756.645 626.111 558.057)( 1.087.693 22.574.525 24.015.932 Short-term loans 2.697.486 2.139.429 3.260.455 1.253.150 5.957.941 3.392.579 28.532.466 27.408.511 2026 2025 30.9.2026 31.12.2025 9,2% 9,4% 11.714.312 12.118.541 5,0% 5,1% 9.623.811 14.036.820 4,0% 3.933.888 0 8,0% 7,9% 3.260.455 1.253.150 28.532.466 27.408.511 Loan maturities are as follows: 3.833.979 3.392.579 2.682.684 2.141.655 2.479.560 1.928.378 2.280.971 1.727.887 2.278.059 1.728.070 8.359.558 10.066.006 6.617.655 6.423.936 28.532.466 27.408.511 Year 2026 .............................................................................................................................. Notes payable........................................................................................................................ Balance at the end of the period............................................................................................ Total interest-bearing loans.................................................................................................... Weighted average interest rates Non-indexed loans at floating interest rates ......... CPI-indexed loans at floating interest rates .......... Notes payable ....................................................... Total interest-bearing loans.................................................................................................... CPI-indexed loans at fixed interest rates ….......... Year 2027 .............................................................................................................................. Year 2028 .............................................................................................................................. Year 2029 .............................................................................................................................. Year 2030 .............................................................................................................................. Thereafter .............................................................................................................................. Total interest-bearing loans.................................................................................................... Year 2031 .............................................................................................................................. Balance at the beginning of the year ..................................................................................... Repayments .......................................................................................................................... Outstanding amounts at New loans.............................................................................................................................. Expensed borrowing costs..................................................................................................... CPI indexation........................................................................................................................ Change in current portion....................................................................................................... Balance at the end of the period............................................................................................ Current portion of long-term loans ........................................................................................ Assumed on acquisition of a subsidiary.................................................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 16 Amounts are in thousands of ISK Notes, continued: 15. Lease liabilities All lease liabilities are denominated in Icelandic krona. 2026 2025 1.1.-30.9. 1.1.-31.12. 11.467.150 11.389.211 2.510.664 1.177.635 344.505 377.961 1.191.978)( 1.477.657)( 13.130.341 11.467.150 1.584.369)( 1.437.761)( 11.545.972 10.029.389 The maturity analysis of lease liabilities is as follows: 396.092 1.437.761 1.529.481 1.390.522 1.282.140 1.127.642 1.005.896 855.728 921.655 776.626 935.685 796.170 7.059.390 5.082.701 13.130.339 11.467.150 2026 2025 1.1.-30.9. 1.1.-30.9. The impact of leases on profit or loss is as follows: 1.264.368 1.173.978 518.245 494.736 Rental expense for lease agreements not capitalised: 239.412 262.366 9.039 11.823 The impact of leases on the statement of cash flows: 1.710.223 1.597.000 Year 2026 ....................................................................................................................... Year 2027 ....................................................................................................................... Increase due to indexation of lease payments................................................................ Lease payments, principal and interest........................................................................... Depreciation of leased assets......................................................................................... Interest expense on lease liabilities................................................................................. Year 2028 ....................................................................................................................... Year 2029 ....................................................................................................................... Year 2030 ....................................................................................................................... Thereafter........................................................................................................................ Total................................................................................................................................. Year 2031 ....................................................................................................................... Real estate rent............................................................................................................... Other rent payments........................................................................................................ Payment of lease liabilities during the year..................................................................... Total lease liabilities........................................................................................................ Current portion................................................................................................................. Total non-current portion of lease liabilities..................................................................... Carrying amount at the beginning of the year................................................................. New lease contracts........................................................................................................
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 17 Amounts are in thousands of ISK Notes, continued: 16. Group entities The Condensed Consolidated Interim Financial Statements include the following entities. All subsidiaries are directly or indirectly fully owned by the Parent Company, Festi. Yrkir sameign ehf. Yrkir sameign leases non-residential real estate to retail companies. N1 ehf. N1 specialises in the wholesale and retail sale of fuel and electricity and operates service stations, including tyre and lubrication service stations, across Iceland. In addition to fuel sales, the company's service stations offer food services and a range of convenience goods. Yrkir eignir ehf. Yrkir eignir manages the Group's property operations and leases non- residential buildings to retail companies both within and outside the Group. The company also operates security and development departments, which carry out projects relating to security, property maintenance and development with the aim of ensuring profitability. Mengi ehf. Mengi is the Group's investment and development company, focusing on investment opportunities and start-ups whose operations offer strategic synergies with other Group companies. Skjáauglýsingar ehf. Skjáauglýsingar operates a nationwide digital advertising network, providing screen-based advertising in swimming pools, sports facilities, fitness centres and other high-traffic locations across Iceland. 1954 ehf. 1954 specialises in restaurant services. It has not yet commenced operations. Local ehf. Local specialises in restaurant operations, offering fresh and healthy fast food, including customisable salads, bowls, wraps and protein dishes. The company operates five locations in the capital region. Vínportið ehf. Vínportið specialises in importing alcoholic beverages and selling them wholesale to ÁTVR stores, hotels and restaurants. Lyfja hf. Lyfja specialises in pharmacy operations and the wholesale and retail sale of health-related products. The company operates 45 pharmacies and branches, as well as an online shop and mobile app offering home delivery across Iceland. Heilsa ehf. Heilsa specialises in the import and wholesale distribution of pharmaceutical, cosmetic and health-related products sold in stores across Iceland. ELKO ehf. ELKO specialises in selling household appliances and electronic equipment. The company operates six stores under its own name in the capital region, in Akureyri and at Leifur Eiríksson International Airport in Keflavík, as well as an online shop offering home delivery across Iceland. Krónan ehf. Krónan is a retail company that operates 26 convenience stores across Iceland under its own name. The company also serves its customers through an online shop and mobile app, offering home delivery from its stores across Iceland. Icelandic Food Company ehf. Icelandic Food Company specialises in the production of convenience goods sold at Krónan and N1. Company Business activity Festi hf. Festi is a holding company that operates leading companies in Iceland's retail and fuel sectors. Festi supports its operating companies in meeting customers' needs, enabling them to remain at the forefront of providing goods and services across the country. Festi provides its subsidiaries with support services, including finance, operations and business development. Bakkinn vöruhótel ehf. Bakkinn vöruhótel specialises in the storage, packaging, labelling, handling and distribution of products for customers that choose to outsource their warehousing activities.
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Condensed Consolidated Interim Financial Statements 3 0 September 2026 18 Amounts are in thousands of ISK Notes, continued: 17. Other matters Court litigation On 5 September 2025, Festi was served with summons in an action brought by Bergorka ehf., seeking recognition of the Company's liability for damages, without a specified amount. Bergorka's claim is based on alleged breaches by Festi of Article 3 of the settlement made by the Company with the Competition Authority on 30 July 2018. Festi considers Bergorka's claim to be unfounded and is defending the case. A judgment from the district court is expected in the next six months. 18. Financial ratios The Group's key financial ratios 2026 2025 Operations 1.1.-30.9. 1.1.-30.9. 8,7 8,9 Average balance of trade receivables for the last 12 months / 9,6 10,9 34,6% 36,4% 51,6% 49,9% 19,1% 18,8% 30.9.2026 31.12.2025 Financial position 0,91 1,01 0,33 0,47 1,70 1,34 40,2% 41,2% 12,2% 13,9% Return on equity: profit for the last 12 months / average equity............................................ Salaries and personnel expenses / margin from sales of goods and services...................... Other operating expenses / margin from sales of goods and services.................................. Current ratio: current assets / current liabilities..................................................................... Liquidity ratio: (current assets - inventories) / current liabilities............................................. Leverage: net interest-bearing liabilities excluding lease liabilities / EBITDA........................ Equity ratio: equity / total capital............................................................................................ EBITDA / margin from sales of goods and services.............................................................. Inventory turnover Utilisation of goods / average balance of inventories for the last 12 months.................... Trade receivables days: sales of goods and services........................................................................................