Interim report
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Condensed interim financial statements 1 MARCH - 31 AUGUST 2026 Hagar hf. • Holtavegi 10 • 104 Reykjavík • Iceland • Reg. no. 670203-2120 • hagar.is • 530-5500
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3 5 6 7 8 9 10 Contents Consolidated Statement of Cash Flows ........................................................................................................... Notes .................................................................................................................................................................... Consolidated Statement of Comprehensive Income ........................................................................................ Consolidated Balance Sheet .............................................................................................................................. Consolidated Statement of Changes in Equity ................................................................................................. Endorsement and Statement by the Board of Directors and the CEO ............................................................ Report on Review of Interim Financial Information ........................................................................................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 2
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Sales increased by 5.5% during the quarter year-on-year, with sales in stores and warehouses in Iceland up 5.7% and sales in the Faroe Islands up 10.5%. Sales at Olís increased by 3.6%; however, the abolition of fuel duties has reduced reported sales in ISK terms, meaning the underlying sales growth was stronger. Gross profit increased by 5.0%, in line with sales growth, and the gross margin was 24.7%. Operating expenses increased by 5.1%, and EBITDA for the quarter rose by 3.3%. EBITDA increased by 17.1% for the stores and warehouses segment in Iceland and by 13.0% in the Faroe Islands. EBITDA in the Olís segment declined by 24.3%. Overall, the quarter's results exceeded management's plans and expectations, and the EBITDA guidance is therefore being raised by ISK 800 million in conjunction with the publication of the interim results. Operations across the Group’s main business units are performing well and the operating outlook is positive. Management's guidance for the 2026/27 financial year assumes that operating profit before depreciation (EBITDA) will be in the range of ISK 19,600-20,100 million. The Group's financial position is strong, and financing is secured. Access to short-term financing through credit lines totalling ISK 3.0 billion with a commercial bank is in place, and the Company has also utilised short-term financing through a promissory note issuance. The issuance is in accordance with the base prospectus of the ISK 10 billion issuance framework approved by the Company's Board of Directors. The Company is expected to continue utilising market financing in the coming quarters. Operations in the second quarter were strong across all segments of the Group, particularly in the stores and warehouses segment in Iceland and in the Faroe Islands. Olís performed better than anticipated, as the positive effects on sales to large-volume customers resulting from the increase in global oil prices during the first quarter reversed to a lesser extent than initially expected. However, considerable uncertainty remains in global oil markets. Endorsement and Statement by the Board of Directors and the CEO Hagar hf. ("the Company") is a retail company with operations in Iceland, the Faroe Islands and the Netherlands, serving customers through a diverse range of well-established retail formats. The core business of Hagar focuses on the retail of convenience goods and related warehouses, as well as fuel sales and services. In Iceland, Hagar operates eight business units, comprising 40 grocery stores, one online grocery store for meal packages, 22 Olís service stations, and 45 ÓB self-service stations across the country. The company also runs two warehouses, one production facility, one wholesale store and one specialty store. In the Faroe Islands, Hagar operates the retail company SMS, which is a market leader in the Faroese market. SMS manages, among other things, 13 grocery stores, four specialty stores, and seven restaurants. In the Netherlands, Hagar operates an online store with alcoholic beverages. The Condensed Consolidated Interim Financial Statements of Hagar hf. for the period from 1 March to 31 August 2026 have been prepared in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34). The Interim Financial Statements include the Consolidated Interim Financial Statements of Hagar hf. (the "Company") and its subsidiaries, together referred to as the "Group". Operations during the period According to the Consolidated Statement of Comprehensive Income, the profit for the period from 1 March to 31 August 2026 amounted to ISK 4,207 million (2025/26: ISK 3,721 million). Operating profit before depreciation, amortisation and changes in fair value (EBITDA) amounted to ISK 10,802 million (2025/26: ISK 9,531 million). According to the Consolidated Statement of Financial Position total assets amounted to ISK 117,904 million (year-end 2025/26: ISK 115,246 million). Equity as of 31 August 2026 amounted to ISK 42,926 million (year-end 2025/26: ISK 42,779 million) and equity ratio was 36.4% (year-end 2025/26: 37.1%). Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 3
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Eva Bryndís Helgadóttir, Vice-Chairman Orri Hauksson, Board member Share capital and shareholders The nominal value of Hagar’s issued share capital at period end was ISK 1,106 million. The share capital is divided into an equal number of shares with a nominal value of ISK 1 each. The Company held own shares with a nominal value of ISK 22.2 million at the end of the period, compared to ISK 17.8 million at the beginning of the period. There were 1,066 shareholders at the beginning of the period and 1,116 at the end. On 21 May 2026 the Annual General Meeting decided to pay dividends to shareholders amounting to 50% of last year’s profit after tax, without effect of changes in value of investment property and share of profit of associates, or the total of ISK 3,299 million. The total dividend therefore amounted to ISK 3.03 per share of the outstanding share capital. The dividend was paid on 2 June 2026. Finnur Oddsson Sigríður Olgeirsdóttir, Board member CEO: Board of Directors: Eiríkur S. Jóhannsson, Chairman Einar Örn Einarsson, Board member Reykjavík, 15 October 2026 Endorsement and Statement by the Board of Directors and the CEO, continued: Statement by the Board of Directors and the CEO To the best of our knowledge it is our opinion that the Condensed Consolidated Interim Financial Statements give a true and fair view of the financial performance of the Group for the six-month period ended 31 August 2026, its assets, liabilities and consolidated financial position as at 31 August 2026 and its consolidated cash flows for the period then ended in accordance with IAS 34, Interim Financial Reporting. Further, in our opinion, the Condensed Consolidated Interim Financial Statements and the Endorsement of the Board of Directors and the CEO give a fair view of the development and performance 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 Hagar hf. for the period 1 March to 31 August 2026 and confirm them by means of their signatures. The Condensed Interim Financial Statements have been electronically signed in accordance with Act No. 55/2019 on electronic identification and trust services for electronic transactions. Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 4
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Reykjavík, 15 October 2026 PricewaterhouseCoopers ehf. Sara Henný H. Arnbjörnsdóttir Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting". Report on Review of Interim Financial Information To the Board of Directors and Shareholders of Hagar hf. Introduction Scope of Review Conclusion We have reviewed the accompanying condensed consolidated balance sheet of Hagar hf. and its subsidiaries as of 31 August 2026 and the related condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended. Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard 34, "Interim Financial Reporting". Our responsibility is to express a conclusion on this interim financial information based on our review. We conducted our review in accordance with International Standards on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 5
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Notes 2026 2025 2026 2025 1.6.-31.8. 1.6.-31.8. 1.3.-31.8. 1.3.-31.8. 7 54.683 51.817 105.468 99.932 41.169)( 38.943)( 78.673)( 75.439)( 13.514 12.874 26.795 24.493 331 395 651 713 5.603)( 5.301)( 11.379)( 10.628)( 2.576)( 2.483)( 5.265)( 5.047)( 5.666 5.485 10.802 9.531 8 1.724)( 1.544)( 3.521)( 3.002)( 153)( 124)( 220)( 297)( 3.789 3.817 7.061 6.232 78 59 145 93 1.070)( 893)( 2.057)( 1.886)( 9 992)( 834)( 1.912)( 1.793)( 83 165 139 197 2.880 3.148 5.288 4.636 590)( 592)( 1.081)( 915)( 2.290 2.556 4.207 3.721 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: 149)( 103)( 167)( 148)( Items that will not be reclassified to profit or loss: 19)( 1)( 93 68 168)( 104)( 74)( 80)( 2.122 2.452 4.133 3.641 Total profit attributable to: 2.291 2.555 4.218 3.719 1)( 1 11)( 2 2.290 2.556 4.207 3.721 Total comprehensive income attributable to: 2.123 2.451 4.144 3.639 1)( 1 11)( 2 2.122 2.452 4.133 3.641 Earnings per share 2,11 2,33 3,88 3,39 2,09 2,32 3,85 3,37 *Quarterly financial information has not been reviewed by the Company's auditors. Comprehensive income for the period .............. Revaluation of properties, net of income tax ....... Other comprehensive income for the period .... Comprehensive income for the period .............. Owners of the Company ........................................ Non-controlling interests ...................................... depreciation and amortisation (EBITDA) ........ Basic earnings per share of ISK 1 ......................... Depreciation and amortisation .............................. Income tax .............................................................. Profit from operating activities (EBIT) ................. Profit before income tax (EBT) ............................. Profit for the period ................................................ Share of profit of associates ................................. Diluted earnings per share of ISK 1 ...................... Net finance expense ........................................... Changes in value of investment property ............ Currency translation differences .......................... Profit for the period ............................................ Owners of the Company ........................................ Non-controlling interests ...................................... Finance income ...................................................... Finance cost ........................................................... Profit from operating activities before Consolidated Statement of Comprehensive Income for the six months ended 31 August 2026 Gross profit ............................................................. Other operating expenses ..................................... Sales ........................................................................ Cost of goods sold ................................................. Other operating income ......................................... Salaries and related expenses .............................. Second quarter* First half Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 6
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Notes 31.8.2026 28.2.2026 Assets 38.629 37.836 8.861 9.117 16.131 16.167 10 19.193 19.840 7.055 7.265 183 156 Total non-current assets 90.052 90.381 11 16.168 14.393 12 7.823 6.597 3.861 3.875 27.852 24.865 117.904 115.246 Equity 1.084 1.089 16.715 18.678 25.178 23.040 42.977 42.807 51)( 28)( Total equity 42.926 42.779 Liabilities 13 15.439 14.351 14 20.448 21.022 5.008 3.918 40.895 39.291 13 9.491 9.040 14 3.921 3.932 15 20.671 20.204 34.083 33.176 74.978 72.467 117.904 115.246 Lease liabilities .............................................................................................. Share capital .................................................................................................. Deferred income tax liability ......................................................................... Total equity and liabilities Total non-current liabilities Total liabilities Total current liabilities Trade and other payables ............................................................................. Loans and borrowings ................................................................................... Lease liabilities .............................................................................................. Other restricted equity .................................................................................. Retained earnings .......................................................................................... Loans and borrowings ................................................................................... Equity attributable to equity holders of the Company Non-controlling interests .............................................................................. Consolidated Balance Sheet as at 31 August 2026 Total current assets Total assets Property, plant and equipment ..................................................................... Trade and other receivables ........................................................................ Cash and cash equivalents ........................................................................... Intangible assets ........................................................................................... Inventories ..................................................................................................... Investment property ...................................................................................... Investments in associates ............................................................................ Other non-current assets ............................................................................. Lease assets .................................................................................................. Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 7
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Other Unrealised Non- Share Statutory Revaluation restricted profit of Translation Retained controlling Total Changes in equity from capital reserve reserve reserve subsidiaries difference earnings Total interest equity 1 March 2025 to 31 August 2025 1.098 277 3.677 83 9.833 8 )( 23.561 38.521 32 )( 38.489 3 )( 392 )( 395 )( 395 )( 513 513 )( 0 0 68 68 68 37 )( 37 0 0 76 76 76 11 )( 6 5 )( 5 )( 3.719 3.719 2 3.721 2.504 )( 2.504 )( 2.504 )( 148 )( 148 )( 148 )( 1.095 277 3.708 148 10.346 156 )( 23.914 39.332 30 )( 39.302 14.323 1 March 2026 to 31 August 2026 1.089 277 4.087 151 14.317 154 )( 23.040 42.807 28 )( 42.779 31 )( 31 )( 12 )( 43 )( 5 )( 603 )( 608 )( 608 )( 1.897 )( 1.897 0 0 93 93 93 42 )( 42 0 0 67 33 )( 34 34 0 17 )( 53 )( 70 )( 70 )( 4.218 4.218 11 )( 4.207 3.299 )( 3.299 )( 3.299 )( 167 )( 167 )( 167 )( 1.084 277 4.138 201 12.420 321 )( 25.178 42.977 51 )( 42.926 16.715 Consolidated Statement of Changes in Equity for the six months ended 31 August 2026 Other restricted equity Equity at 1 March 2025 ................................... Effects of profit of subsidiaries ...................... Effects of profit of subsidiaries ...................... Revaluation of properties ............................... Dissolution of revaluation ............................... Settlement of stock options ........................... Profit for the period ......................................... Currency translation differences ................... Purchased own shares ................................... Equity at 31 August 2026 ............................... Other restricted equity ................................... Stock option agreements ............................... Purchased own shares ................................... Dividends paid, 2.28 ISK per share ................ Dividends paid, 3.03 ISK per share ............... Revaluation of properties ............................... Dissolution of revaluation ............................... Stock option agreements ............................... Settlement of stock options ........................... Profit for the period ......................................... Currency translation differences ................... Equity at 31 August 2025 ............................... Other restricted equity ................................... Equity at 1 March 2026 ................................... Corrected equity 1 March 2026 ..................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 8
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Notes 2026 2025 2026 2025 1.6.-31.8. 1.6.-31.8. 1.3.-31.8. 1.3.-31.8. Cash flows from operating activities 2.290 2.556 4.207 3.721 Adjustments for: 18)( 37)( 23)( 39)( 8 1.724 1.544 3.521 3.002 153 124 220 297 9 992 834 1.912 1.793 83)( 165)( 139)( 197)( 590 592 1.081 915 17 108 35 97 Working capital from operating activities 5.665 5.556 10.814 9.589 1.364 1.086)( 2.948)( 1.226)( 14)( 310 963 2.903 Cash from operations before interest and taxes 7.015 4.780 8.829 11.266 21 59 76 93 902)( 773)( 1.770)( 1.605)( 365)( 286)( 731)( 573)( Net cash from operating activities 5.769 3.780 6.404 9.181 Cash flows used in investing activities 1.457)( 873)( 2.700)( 1.912)( 28 64 49 67 10)( 22)( 39)( 34)( 0 3 0 3 154)( 259)( 266)( 509)( 7 22 349 272 32)( 7 35)( 14 Net cash used in investing activities 1.618)( 1.058)( 2.642)( 2.099)( Cash flows used in financing activities 608)( 395)( 608)( 395)( 3.299)( 2.504)( 3.299)( 2.504)( 13 1.320 135 1.320 233 13 220)( 201)( 440)( 397)( 14 624)( 562)( 1.231)( 1.107)( 13 81 161)( 495 295)( Net cash used in financing activities 3.350)( 3.688)( 3.763)( 4.465)( 801 966)( 1)( 2.617 12)( 6)( 13)( 12)( 3.072 5.876 3.875 2.299 3.861 4.904 3.861 4.904 *Quarterly financial information has not been reviewed by the Company's auditors. Changes in value of investment property .......................... Effect of exchange rate fluctuations on cash held .............. New long-term loans and borrowings ................................... Consolidated Statement of Cash Flows for the Profit for the period ................................................................. Gain on sale .......................................................................... Second quarter* First half Interest expenses paid ............................................................ Net finance expense ............................................................ Effect of results of associates ............................................. Income tax ............................................................................ six months ended 31 August 2026 Depreciation and amortisation ............................................ Change in current assets ....................................................... Change in current liabilities .................................................... Interest income received ........................................................ Repayments of long-term loans and borrowings .................. Other items ........................................................................... Net increase (decrease) in cash and cash equivalents ...... Cash and cash equivalents at the beginning of the period Proceeds from sale of property, plant and equipment ......... Income taxes paid ................................................................... Acquisition of property, plant and equipment ....................... Proceeds from sale of investment property .......................... Cash and cash equivalents at the end of the period ........... Acquisition of investment property ........................................ Short-term loans and borrowings, change ............................ Repayments of lease liabilities ............................................... Other non-current assets, change ......................................... Purchased own shares ............................................................ Dividends paid ........................................................................ Acquisition of intangible assets .............................................. Dividends received from associates ...................................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 9
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1. Reporting entity 2. Basis of accounting Statement of compliance 3. Significant accounting policies 4. Use of estimates and judgements 5. Goodwill 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 millions of Icelandic krona. Notes Hagar hf. (the "Company" or the "Group") is an Icelandic public limited liability company and the Company's headquarters are located at Holtavegur 10, Reykjavík. The Company's Condensed Consolidated Interim Financial Statements for the period 1 March 2026 to 31 August 2026 comprise the Company and its subsidiaries, together referred to as the "Group" and individually as "Group entities". The main business activities of the Company consist of groceries and sale of fuel. An overview of the companies in the Group is included in note 16. The Group's Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting. They do not include all the information required for a complete set of IFRS Financial Statements and should therefore be read in conjunction with the Group's Consolidated Financial statements for the year ended 28 February 2026. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual Consolidated Financial Statements as at and for the year ended 28 February 2026. These Condensed Consolidated Interim Financial Statements were approved for issue by the Board of Directors on 15 October 2026. 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 28 February 2026. The Group's Consolidated Financial Statements are available at its website address, www.hagar.is. In preparing these Condensed Consolidated Interim Financial Statements, management has made judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. There was no indication of goodwill impairment as of 31 August 2026 and therefore an impairment test was not performed. Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 10
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6. Operating segments The Group has three operating segments: stores and warehouses in Iceland, stores and warehouses in the Faroe Islands and Olís. The operations of stores and warehouses, both in Iceland and the Faroe Islands, are largely in the retail operation of groceries. Olís' operations are largely in the sale of fuel and related services, in addition to the sale of fast food and various essential products. Olís operates service stations throughout the country under the Olís brand and operates a large number of ÓB self-service stations, as well as several touchless car wash stations under the Glans brand. The stores and warehouses segment in Iceland includes the operations of Bónus, Hagkaup, Aðföng, Bananar, Stórkaup, Noron and Eldum rétt. The operations of Hagar Wine B.V. in the Netherlands are likewise included here, but due to the small size of the operations and their characteristics, they are not a separate segment, despite being located in a different geographical area. Management has assessed the retail operations in Iceland, categorised by different types of stores, and considers them to share similar economic characteristics, products, customers, and suppliers. The wholesale operations of groceries and the retail operations of specialty goods are insignificant and fall below the thresholds for revenue, profit, and assets that require separate segment reporting. The stores and warehouses segment in the Faroe Islands includes all the SMS Group's operations, which primarily consist of the operation of the grocery stores Bónus, Miklagarður and Mylnan. Additionally, it includes the operation of restaurants, specialty stores, meat processing, bakery, and confectionery production, as well as property management. The operations of the SMS Group, excluding retail grocery operations, are considered immaterial in relation to the revenue, profit, and assets of the Hagar Group that are used as benchmarks for segment reporting. Therefore, the operations of the SMS Group are regarded as a single operating segment. Notes, continued: Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 11
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6. Operating segments, continued: Stores and Stores and First half of 2026/27 warehouses Olís ehf. warehouses Eliminations Total Iceland Faroe Islands 71.303 26.054 8.111 0 105.468 450 41 0 491)( 0 258 51 342 0 651 160 2 0 162)( 0 72.171 26.148 8.453 (653) 106.119 65.391)( 23.267)( (7.312) 653 95.317)( 6.780 2.881 1.141 0 10.802 2.359)( 797)( 365)( 0 (3.521) 7 6 233)( 0 (220) 20 119 0 0 139 4.448 2.209 543 0 7.200 1.499)( 211)( 202)( 0 1.912)( 1.081)( 4.207 79.738 22.619 15.547 0 117.904 55.829 7.898 11.251 0 74.978 2.204 410 342 0 2.956 First half of 2025/26 67.210 25.295 7.427 0 99.932 446 59 0 505)( 0 226 87 400 0 713 149 1 0 150)( 0 68.031 25.442 7.827 (655) 100.645 62.186)( 22.877)( 6.706)( 655 91.114)( 5.845 2.565 1.121 0 9.531 2.117)( 557)( 328)( 0 3.002)( 58)( 11)( 228)( 0 297)( 28 169 0 0 197 3.698 2.166 565 0 6.429 1.244)( 328)( 221)( 0 1.793)( 915)( 3.721 67.918 24.702 15.599 0 108.219 46.673 10.661 11.583 0 68.917 1.191 807 387 0 2.385 Segment EBITDA ............................................ Total liabilities ................................................ Segment depreciation ................................... Changes in value of investment property ... Share of profit of associates ........................ Operating profit of segment ......................... Net finance expense ..................................... Income tax .......................................................................................................................................... Profit for the period ....................................................................................................................... 31 August 2026 Total assets ................................................... Notes, continued: Sales ............................................................... Other operating income ................................ Total segment revenue ................................. Total operating cost ...................................... Intercompany sales ....................................... Intercompany other operating income ........ Net finance expense ..................................... Segment capital expenditure (net) .............. Sales ............................................................... Other operating income ................................ Total segment revenue ................................. Total operating cost ...................................... Segment EBITDA ............................................ Segment depreciation ................................... Changes in value of investment property ... Share of profit of associates ........................ Operating profit of segment ......................... Intercompany sales ....................................... Intercompany other operating income ........ Segment capital expenditure (net) .............. Income tax .......................................................................................................................................... Profit for the period ....................................................................................................................... 31 August 2025 Total assets ................................................... Total liabilities ................................................ Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 12
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7. Sales 2026 2025 2026 2025 1.6.-31.8. 1.6.-31.8. 1.3.-31.8. 1.3.-31.8. 38.302 36.214 75.217 70.997 4.704 4.154 9.211 8.450 11.677 11.449 21.040 20.485 54.683 51.817 105.468 99.932 34.421 32.664 67.717 64.056 4.350 3.861 8.554 7.903 11.677 11.449 21.040 20.485 50.448 47.974 97.311 92.444 follows: 3.859 3.520 7.454 6.880 165 138 328 281 4.024 3.658 7.782 7.161 22 30 46 61 189 155 329 266 211 185 375 327 8. Depreciation and amortisation 2026 2025 2026 2025 Depreciation and amortisation are specified 1.6.-31.8. 1.6.-31.8. 1.3.-31.8. 1.3.-31.8. as follows: 852 737 1.765 1.474 687 590 1.359 1.108 135 173 302 335 50 44 95 85 1.724 1.544 3.521 3.002 9. Finance income and finance cost 2026 2025 2026 2025 1.6.-31.8. 1.6.-31.8. 1.3.-31.8. 1.3.-31.8. Interest income on cash and cash equivalents 21 59 76 93 57 0 69 0 78 59 145 93 621)( 565)( 1.154)( 1.175)( 449)( 349)( 903)( 700)( 0 21 0 11)( 1.070)( 893)( 2.057)( 1.886)( 992)( 834)( 1.912)( 1.793)( Specialty goods ...................................................... Convenience goods ................................................ Convenience goods ................................................ Specialty goods ...................................................... Fuel .......................................................................... Sales total ................................................................ Convenience goods ................................................ Specialty goods ...................................................... Sales total ................................................................ Specialty goods ...................................................... Fuel .......................................................................... Sales total ................................................................ Sales in the Faroe Islands are specified as Sales total ................................................................ Notes, continued: Depreciation of operating assets .......................... Depreciation of lease assets .................................. Amortisation of intangible assets .......................... Share in depreciation in Olíudreifing ehf. ............. Depreciation and amortisation total ...................... and receivables ....................................................... Finance income total .............................................. Interest expense and CPI-index on loans ............. Interest on lease liabilities ...................................... Net currency exchange loss .................................. Finance cost total ................................................... Finance income and finance cost are specified as follows: Sales in Iceland are specified as follows: Sales are specified as follows: Sales in other areas are specified as follows: Convenience goods ................................................ Net currency exchange gain .................................. Net finance expense ............................................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 13
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10. Lease assets 31.8.2026 28.2.2026 19.840 14.645 0 4.852 94 2.080 657 706 1.359) ( 2.406)( 39) ( 37)( 19.193 19.840 11. Inventories 31.8.2026 28.2.2026 7.438 7.555 3.429 3.076 4.710 2.844 591 918 16.168 14.393 514 442 12. Trade and other receivables 31.8.2026 28.2.2026 6.758 4.883 262)( 229)( 17 0 580 605 7.093 5.259 730 1.338 7.823 6.597 Currency swap agreements .................................................................................. Balance at the end of the period ........................................................................... Inventories are specified as follows: Convenience goods ............................................................................................... Specialty goods ...................................................................................................... Fuel .......................................................................................................................... Lease assets are specified as follows: Write-down of trade receivables .......................................................................... Depreciation ........................................................................................................... Balance at the beginning of the period ................................................................ New lease contracts ................................................................................................ Changes to lease contracts ................................................................................... CPI-indexation ........................................................................................................ Other receivables ................................................................................................... Trade and other receivables ................................................................................. Credit card receivables .......................................................................................... Trade and other receivables total ......................................................................... The Group's lease assets and lease liabilities are solely for housing. Lease assets and lease liabilities for land leases are not recognised. Information on lease liabilities is included in note 14. Goods in transit ...................................................................................................... Total inventories ..................................................................................................... Inventory allowance at period end ......................................................................... Notes, continued: Trade and other receivables are specified as follows: Trade receivables ................................................................................................... Currency translation differences .......................................................................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 14
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13. Loans and borrowings 31.8.2026 28.2.2026 31.8.2026 28.2.2026 9,14% 8,51% 8.969 7.763 2,80% 2,80% 6.284 6.189 4,43% 4,16% 3.898 4.081 4,41% 4,27% 3.767 3.841 8,43% 7,77% 1.960 1.240 4,50% 4,25% 52 277 24.930 23.391 9.491)( 9.040)( 15.439 14.351 9.491 9.040 2.262 2.287 2.048 729 5.954 5.888 505 503 4.670 4.944 24.930 23.391 31.8.2026 28.2.2026 23.391 23.415 1.320 694 440)( 820)( 720 200)( 225)( 20)( 228 309 74)( 66)( 87 149 77)( 70)( 24.930 23.391 Line of credit in DKK .............................................. Loans and borrowings are specified as follows: remaining balance Total interest rates Weighted average Repayment of borrowings ..................................................................................... Change in promissory notes ................................................................................... Change in line of credit ........................................................................................... CPI-indexation ......................................................................................................... Subsequent repayments ......................................................................................... Total .......................................................................................................................... Notes, continued: Changes in loans and borrowings during the period are specified as follows: Total interest-bearing debt at the beginning of the period ................................. New long-term loans ............................................................................................... Repayments less than one year ............................................................................. Repayments 1 to 2 years ......................................................................................... Repayments 2 to 3 years ........................................................................................ Repayments 3 to 4 years ........................................................................................ Repayments 4 to 5 years ........................................................................................ Repayments of loans and borrowings are specified as follows: Total loans and borrowings .................................................................................... Current portion of loans and borrowings .............................................................. Total non-current loans and borrowings ............................................................... Long-term loans in ISK, non-indexed .................. Long-term loans in ISK, CPI-indexed ................... Long-term loans in DKK, non-indexed ................. Short-term loans in DKK, non-indexed ................ Promissory notes in ISK ........................................ Currency exchange difference ............................................................................... Accrued interest added to the loan balance ......................................................... Currency translation differences ........................................................................... Total interest-bearing debt at the end of the period ........................................... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 15
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14. Lease liabilities Lease liabilities are specified as follows from beginning to end of the period: 31.8.2026 28.2.2026 24.954 19.577 0 4.852 94 2.169 1.231)( 2.252)( 657 706 105)( 98)( 24.369 24.954 3.921)( 3.932)( 20.448 21.022 Repayments of lease liabilities are specified as follows: 3.921 3.932 3.363 3.417 2.922 2.902 2.623 2.600 2.280 2.297 9.260 9.806 24.369 24.954 15. Trade and other payables 31.8.2026 28.2.2026 1.748 1.486 15.291 14.769 3.632 3.949 20.671 20.204 16. Group entities Location 31.8.2026 28.2.2026 Iceland 100% 100% Iceland 100% 100% Iceland 100% 100% Iceland 100% 100% Iceland 100% 100% Iceland 100% 100% Netherlands 100% 100% Faroe Islands 100% 100% Repayments 3 to 4 years ........................................................................................ New lease contracts ................................................................................................ Changes to lease contracts .................................................................................... Payment of lease liabilities ..................................................................................... CPI-indexation ......................................................................................................... Currency translation differences ........................................................................... Total lease liabilities ................................................................................................ Repayments less than one year ............................................................................. Repayments 1 to 2 years ......................................................................................... Repayments 2 to 3 years ........................................................................................ Lease liabilities at the beginning of the period ..................................................... Notes, continued: Current portion of lease liabilities .......................................................................... Total non-current lease liabilities at the end of the period ................................. Bananar ehf. ................................................................................... Noron ehf. ...................................................................................... Stórkaup ehf. ................................................................................. Eldum rétt ehf. ............................................................................... Hagar Wine B.V. ............................................................................. P/F SMS .......................................................................................... Ownership interest Hagar verslanir ehf. ....................................................................... Olís ehf. .......................................................................................... Trade payables ....................................................................................................... Other payables ...................................................................................................... Trade and other payables total ............................................................................. The Condensed Consolidated Interim Financial Statements include the following entities: Repayments 4 to 5 years ........................................................................................ Subsequent repayments ......................................................................................... Total .......................................................................................................................... Trade and other payables are specified as follows: Income tax payable ................................................................................................ Total lease payments due to lease contracts which are capitalised in accordance with IFRS 16 amounted to ISK 2,134 million during the period (2025/26: ISK 1,807 million). Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 16
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17. Related parties Transactions with related parties Transactions with related parties are with associates and are specified as follows: 2026 2025 1.3.-31.8. 1.3.-31.8. 194 115 1.166)( 1.219)( 62 66 209)( 287)( 18. Financial ratios The Group's key financial ratios are specified as follows: 2026 2025 Operations 1.3.-31.8. 1.3.-31.8. 10,2% 9,5% 10,8% 10,6% 5,0% 5,1% 10,3 11,0 12,1 13,5 Financial position 31.8.2026 28.2.2026 0,82 0,75 0,34 0,32 2,3 2,5 36,4% 37,1% 39,65 39,31 Equity ratio (equity / total assets) .......................................................................... Internal value of shares (equity / share capital) .................................................... Current ratio (current assets / current liabilities) .................................................. Liquidity ratio ((current assets - inventories) / current liabilities) ....................... Leverage (net interest bearing liabilities / EBITDA) .............................................. Purchased goods and services .............................................................................. Trade receivables at end of period ........................................................................ Trade payables at end of period ............................................................................ Profit ratio (EBITDA / sales) .................................................................................... Salary ratio (salary and salary related expense / sales) ....................................... Cost ratio (other operating expense / sales) ......................................................... Number of days for outstanding trade receivables .............................................. Notes, continued: The Group has a related party relationship with its shareholders with significant influence, subsidiaries, associates, and with its directors and executive officers. Transactions between the Company and its subsidiaries, which are defined as related parties, have been eliminated in the consolidation and are therefore not a part of this note. Sold goods and services ......................................................................................... Inventory turnover ratio (cost of sales / average balance of inventories) .......... Consolidated Interim Financial Statements of Hagar hf. 31 August 2026 Amounts are in ISK million 17