Modivo (MDV) Investor update summary

Response to report and allegations

• Management strongly refutes the report's claims, calling it manipulative and factually incorrect, and asserts that key financial figures were misrepresented or misunderstood.

• The report's margin and EBITDA calculations are described as exaggerated and not reflective of actual business performance.

• Legal action is being considered in response to the report, and management emphasizes transparency and willingness to answer all questions.

Financial and operational performance

• Wholesale sales through MKRI represent only 3% of total group margin, with the majority of business still in retail.

• Receivables linked to MKRI are not overdue, with a 180-day payment term and regular payments being made.

• The impact of MKRI transactions on group EBITDA is estimated at PLN 50–60 million, a minor share of total group results.

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

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

Brand and sales performance

• Reebok's share in net sales increased to 9.74% from 6.84% last year, with net sales up 41% to 287.8 mln PLN.

• Reebok's margin rose 45.6% year-on-year, with margin percentage improving by 1.98 pp to 66.27%.

• Global player's net sales decreased by 3% to 141.4 mln PLN, with margin down 7.2% and margin percentage dropping by 1.7 pp to 39.37%.