IFRS Illustrative Financial Statements (December 2025)

Macroeconomic instability and geopolitical uncertainties Multiple events have resulted in challenging issues affecting the stability of the global economy including geo-political conflicts between countries, rising rates of inflation, energy instability, supply chain crisis and uncertainty in the global banking sector noted among other matters. These factors may have significant financial effects on many entities. These include entities with physical operations in those affected areas and sectors as well as indirect interests (e.g. suppliers and customers, investments and lenders). There may be numerous accounting implications across multiple areas such as going concern assessments, judgements and estimates, impairment of non-financial assets, etc. These illustrative financial statements reflect changes to the requirements of IFRS® Accounting Standards; however, they have not been modified significantly to reflect common effects of these macroeconomic factors. Effect of climate-related matters and other uncertainties and their disclosures The effect of current and potential climate-related risks and opportunities remain a significant focus for financial statement preparers, investors, and regulators. Climate-related matters affect various uncertainties such as the credit risk of receivables, the amount of timing of provisions and the useful life and residual value of property, plant and equipment and intangible assets. Investors and regulators are seeking clear evidence that climate-related risks have been integrated into an entity’s estimates and judgements during the preparation of financial statements. Accordingly, the IASB published Disclosures about Uncertainties in Financial Statements in November 2025, which set out six illustrative examples of how IFRS Accounting Standards may be applied considering uncertainties, which include, but are not limited to, the effects of climate change. IFRS Accounting Standards require entities to disclose information that enables users to understand the effect of transactions, events, and conditions on the entity’s financial position and financial performance. In this scenario, entities should ensure that there is a consistency between the climate-related and other uncertainties and mitigation efforts discussed in management commentary, sustainability reports, or public statements and those reflected in financial statement estimates, judgements, and disclosures, as required by IFRS Accounting Standards. For detailed guidance on financial reporting impacts of some of these recurring issues, please refer to BDO’s IFR Bulletins and other publications on IFRS reporting microsite. Future developments concerning financial statement presentation and disclosures At the time of publishing, the IASB has several projects ongoing that could have significant effects on how entities present their financial statements and the related disclosures. The details of these projects are covered in BDO’s Year -end IFR Bulletin; for more details, please refer to BDO’s Global IFRS microsite . 4 New and updated for December 2025 year ends For annual reporting periods beginning on or after 1 January 2025 , the following are newly effective requirement s: IFRS IASB Effective Date Note in illustrative financial statements EU Endorsement status BDO Resources Lack of exchangeability (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates) 1 January 2025 1 Endorsed IFRB 2023/08 IASB issues Amendments to IAS 21 – Lack of Exchangeability Disclosures about Uncertainties in Financial Statements – Amendments to Illustrative Examples on IFRS 7 Financial Instruments: Disclosures, IFRS 18 Presentation and Disclosure in Financial Statements, IAS 1 Presentation of Financial Statements, IAS 8 Basis of Preparation of Financial Statements, IAS 36 Impairment of Assets and IAS 37 Provisions, Contingent Liabilities and Contingent Assets - 1 N/A – illustrative examples are not subject to endorsement IFRB 2025/06 IASB publishes near-final draft of illustrative examples: Disclosures about Uncertainties in the Financial Statements Illustrated using Climate-related Examples During November 2025, the International Accounting Standards Board (IASB) issued illustrative examples on reporting uncertainties in financial statements. Since these illustrative examples are accompanying materials to IFRS Accounting Standards, these examples do not have an effective date. Entities are however expected to implement any changes in their financial reporting on a timely basis. The illustrative examples may be accessed here. The IASB published a near-final draft of the illustrative examples in July 2025. BDO’s IFR Bulletin 2025/06 on this near -final draft may be accessed here. A revised IFR Bulletin is expected to be published by the end of 2025. 5 Early adoption of Standards and Amendments The tables below list all pronouncements with a mandatory effective date in future accounting periods. Mandatorily effective for annual reporting periods beginning on or after 1 January 2026 BDO resources Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7) IFRB 2024/07 IASB issues Amendments to the Classification and Measurement of Financial Instruments Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) IFR Bulletin: 2025/02 - IASB issues Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) Annual Improvements to IFRS Accounting Standards – Volume 11 - Mandatorily effective for annual reporting periods beginning on or after 1 January 2027 BDO resources IFRS 18 Presentation and Disclosure in Financial Statements IFRB 2024/04 IASB publishes IFRS 18 Presentation and Disclosure in Financial Statements IFRS Accounting Standards In Practice - IFRS 18 Presentation and Disclosure in Financial Statements IFRS 19 Subsidiaries without Public Accountability: Disclosures IFRB 2024/06 IASB issues IFRS 19 Subsidiaries without Public Accountability: Disclosures In addition to the above pronouncements, the IFRS Interpretations Committee (the Committee) has issued a number of agenda decisions during 2025 . These agenda decisions do not represent authoritative guidance. However, they do set out the Committee’s rationale for not taking an issue onto its agenda (or referring it to the IASB) and how the requirements of applicable IFRS Accounting Standards should be applied. It is noted on the IFRS Foundation’s website that they ‘should be seen as helpful, informative and persuasive’. In practice, it is expected that entities reporting in accordance with IFRS Accounting Standards will take account of and follow t he agenda decisions and this is the approach which is followed by securities regulators worldwide. At the end of 2025 , BDO will publish an IFR Bulletin on annual updates to IFRS Accounting Standards which will include a brief summary of agenda decisions issued by the Committee during the year 2025 . The publication will be accessible here . 6 International Financial Reporting Standards (IFRS Accounting Standards) A Layout (International) Group Ltd prepares its financial statements in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB). A Layout (International) Group Ltd is an existing preparer of IFRS consolidated financial statements. Therefore, IFRS 1 First-time Adoption of International Financial Reporting Standards is NOT applicable. These consolidated financial statements include the disclosures required by IFRS Accounting Standards that are applicable for financial years beginning on or after 1 January 2025. A Layout (International) Group Ltd has not adopted any IFRS Accounting Standards or amendments before their respective mandatory effective dates. A Layout (International) Group Ltd has not applied IFRS 19 Subsidiaries without Public Accountability: Disclosures. Due to the nature of its operations, the consolidated financial statements of A Layout (International) Group Ltd do not incorporate disclosures relating to: - Insurance Contracts ( IFRS 17 ) - Exploration for an Evaluation of Mineral Resources (IFRS 6) - Investment Entities (IFRS 10) - Unconsolidated structured entities (IFRS 12) - Construction Contracts ( IFRS 15 ) - Government Grants (IAS 20) - Retirement Benefit Plans (IAS 26) - Hyperinflation (IAS 29) - Agriculture (IAS 41) - Regulatory Deferral Accounts (IFRS 14) . In addition, A Layout (International) Group Ltd does not engage in certain activities (generally undertaken by financial institutions) that would require specific disclosure under IFRS 7 Financial Instruments: Disclosure, including: - Transfers of financial instruments - Securitisation of financial assets and liabilities - Offsetting of financial assets and financial liabilities. Please note that additional disclosures may be required in order to comply with local laws, national financial reporting standards and/or stock exchange regulations. 7 Financial Statements General financial statement presentation requirements IAS 1.10 Composition of a complete set of financial statements. IAS 1.10A Single or two statement approach for profit or loss and other comprehensive income. IAS 1.49 Clear identification of financial statements from other information. IAS 1.51 Clear identification of each component of the financial statements, and various details of the reporting entity. Entity specific disclosures IAS 1.51(a) Name of entity. IAS 1.138 Various details of the reporting entity. 8 A Layout (International) Group Ltd Annual report and financial statements For the year ended 31 December 2025 Contents 11 Consolidated statement of comprehensive income (single statement approach, analysed by function of expense) 15 Consolidated statement of comprehensive income (statement one of the two statement approach, analysed by nature of expense) 17 Consolidated statement of comprehensive income (statement two of the two statement approach, analysed by nature of expense) 19 Consolidated statement of financial position 23 Consolidated statement of cash flows 27 Consolidated statement of changes in equity 35 Index to notes forming part of the consolidated financial statements 37 Notes forming part of the consolidated financial statements Country of incorporation of parent company: [Please provide details] Legal form: [Please provide details] Principal activities: The nature of the entities operations and its principal activities are set out in note 8 Directors: [Names] 9 Consolidated statement of profit or loss and other comprehensive income (Single statement approach) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.85 Present additional line items, headings and sub-totals when such presentation is relevant to the understanding of an entity’s financial performance. IAS 1.99-100 Presentation of the analysis of expenses (nature or their function). IAS1.103 Example presentation of analysis of expenses by function. IAS 1.113 Notes to be presented in a systematic manner and cross referenced. BDO Comment Note that the adjacent consolidated statement of profit or loss and other comprehensive income is presented: - Using the single statement approach - Analysed by function of expense. Specific line item requirements IAS 1.81A Specific sub-totals required for profit or loss, total other comprehensive income and comprehensive income for the period. IAS 1.82 Specific line items required within profit or loss. IAS 1.82A Specific categorisation required for items within other comprehensive income. IAS 1.82 In addition to items required by other IFRSs, the profit or loss section or the statement of profit or loss shall include line items that present the following amounts for the period: (ba) impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with Section 5.5 of IFRS 9; IAS 1.104 Amortisation of right-of-use assets is included in the appropriate line item to which the use of the underlying asset relates, as the Group presents expenses by function, rather than by nature. IAS 1.82(b) Interest expense on lease liabilities are included within the finance expense line item, as finance costs are required to be presented separately. IAS 1.87 Specifically prohibits extraordinary items. IAS 1.90, 91 Specific presentation for items of other comprehensive income (either pre-tax or post-tax) required. IAS 12.77 Specific presentation required for tax expense. IFRS 5.33, 33A,34 Specific presentation required for discontinued operations. IAS 21.52(b) Specific presentation required for net exchange differences recognised in other comprehensive income. IFRS 7.23(c), 23(d) Specific disclosures for cash flow hedges. 10 A Layout (International) Group Ltd Consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2025 (Single statement approach, analysed by function of expense) Note 2025 2024 CU'000 CU'000 Revenue 4 175,278 166,517 Cost of sales (136,847) (131,413) Impairment loss (896) (166) _______ _______ Gross profit 37,535 34,938 Other operating income 5 1,283 1,203 Administrative expenses (9,554) (9,919) Distribution expenses (9,624) (10,101) Other expenses (9,180) (7,594) _______ _______ Profit from operations 10,460 8,527 Finance expense 9 (861) (842) Finance income 9 825 1,491 Share of post-tax profits of equity accounted associates 660 600 Share of post-tax profits of equity accounted joint ventures 100 110 _______ _______ Profit before tax 11,184 9,886 Tax expense 10 (2,782) (4,209) _______ _______ Profit from continuing operations 8,402 5,677 Profit/(loss) on discontinued operation, net of tax 11 374 (410) _______ _______ Profit 8,776 5,267 Other comprehensive income: Items that will not be reclassified to profit or loss: Loss on property revaluation 14 (4,460) (1,154) Remeasurements of defined benefit pension schemes 36 266 157 Share of associates' other comprehensive income - 412 Valuation (losses)/gains on fair value through other comprehensive income equity investments 35 (349) - Tax related to items that will not be reclassified 10 1,022 147 _______ _______ (3,521) (438) Items that will or may be reclassified to profit or loss: Valuation (losses)/gains on fair value through other comprehensive income on debt instruments 35 (9) 1,542 Cash flow hedges 73 601 Exchange gains arising on translation of foreign operations 2,084 1,024 Tax relating to items that may be reclassified 10 (212) (536) _______ _______ 1,936 2,631 Other comprehensive income for the year, net of tax (1,585) 2,193 _______ _______ Total comprehensive income 7,191 7,460 ________ _______ 11 Consolidated statement of profit or loss and other comprehensive income (Single statement approach) (continued) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.85 Present additional line items, headings and sub-totals as required. IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Specific line item requirements IAS 1.81B Specific presentation required for the split of profit or loss and total comprehensive income between non-controlling interests and owners of the parent. IAS 33.4-66 Specific disclosures presentation required for basic and diluted earnings per share. 12 A Layout (International) Group Ltd Consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2025 (continued) (Single statement approach, analysed by function of expense) Note 2025 2024 CU'000 CU'000 Profit for the year attributable to: Owners of the parent 8,296 4,979 Non-controlling interest 480 288 ______ _______ 8,776 5,267 _______ _______ Total comprehensive income attributable to: Owners of the parent 6,798 7,052 Non-controlling interest 393 408 ______ _______ 7,191 7,460 _______ _______ Earnings per share attributable to the ordinary equity holders of the parent 12 Profit or loss Basic (CU cents) 11.06 6.70 Diluted (CU cents) 9.93 6.41 _______ _______ Profit or loss from continuing operations Basic (CU cents) 10.59 7.22 Diluted (CU cents) 9.53 _______ 6.87 _______ 13 Consolidated statement of profit or loss (Statement one of the two statement approach) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.85 Present additional line items, headings and sub-totals as required. IAS 1.99-100 Presentation of the analysis of expenses (nature or their function). IAS1.102 Example presentation of analysis of expenses by nature. IAS 1.113 Notes to be presented in a systematic manner and cross referenced. IAS 1.104 Amortisation of right-of-use assets is included with amortisation and depreciation of other long-lived assets. IAS 1.82(b) Interest expense on lease liabilities are included within the finance expense line item, as finance costs are required to be presented separately. BDO Comment Note that the adjacent consolidated statement of profit or loss and other comprehensive income is presented: - Using the two statement approach - Analysed by nature of expense. Specific line item requirements IAS 1.81A Specific sub-totals required for profit or loss, total other comprehensive income and comprehensive income for the period. IAS 1.82 Specific line items required within profit or loss. IAS 1.87 Specifically prohibits extraordinary items. IAS 12.77 Specific presentation required for tax expense. IFRS 5.33, 33A,34 Specific presentation required for discontinued operations. IAS 1.81B Separate presentation required for the split of profit or loss to non-controlling interest and owners of the parent IAS 33.4. 66 Specific presentation required for basic and diluted earnings per share. 14 A Layout (International) Group Ltd Consolidated statement of profit or loss For the year ended 31 December 2025 (Statement one of the two statement approach, analysed by nature of expense) Note 2025 2024 CU'000 CU'000 Revenue 4 175,278 166,517 Other operating income 5 1,283 1,203 Changes in inventories of finished goods and work in progress (4,690) (3,927) Raw materials and consumables used (104,263) (97,896) Employee benefit expenses 7 (32,263) (36,632) Depreciation and amortisation expense (13,306) (10,775) Research and development (2,671) (1,547) Other expenses (8,908) (8,416) _______ _______ Profit from operations 10,460 8,527 Finance expense 9 (861) (842) Finance income 9 825 1,491 Share of post-tax profits of equity accounted associates 660 600 Share of post-tax profits of equity accounted joint ventures 100 110 _______ _______ Profit before tax 11,184 9,886 Tax expense 10 (2,782) (4,209) _______ _______ Profit from continuing operations 8,402 5,677 Profit/(loss) on discontinued operation, net of tax 11 374 (410) _______ _______ Profit 8,776 5,267 _______ _______ Profit for the year attributable to: Owners of the parent 8,296 4,979 Non-controlling interest 480 288 _______ _______ 8,776 5,267 _______ _______ Earnings per share attributable to the ordinary equity holders of the parent 12 Profit or loss Basic (CU cents) 11.06 6.70 Diluted (CU cents) 9.93 6.41 _______ _______ Profit or loss from continuing operations Basic (CU cents) 10.59 7.22 Diluted (CU cents) 9.53 6.87 _______ _______ 15 Consolidated statement of comprehensive income (Statement two of the two statement approach) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.85 Present additional line items, headings and sub-totals as required. IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Specific line item requirements IAS 1.10A Under the two statement approach, the statement of comprehensive income must begin with profit or loss. IAS 1.82A Specific categorisation required for items within other comprehensive income. IAS 1.90, 91 Specific presentation for items of other comprehensive income (either pre-tax or post-tax) required. IAS 21.52(b) Specific presentation for the net exchange differences recognised in other comprehensive income. IAS 1.81B Specific disclosures Separate presentation required for the split of total comprehensive income between non-controlling interests and owners of the parent. 16 A Layout (International) Group Ltd Consolidated statement of comprehensive income For the year ended 31 December 2025 (Statement two of the two statement approach) Note 2025 2024 CU'000 CU'000 Profit 8,776 5,267 Other comprehensive income: Items that will not be reclassified to profit or loss: Loss on property revaluation 14 (4,460) (1,154) Remeasurements of defined benefit pension schemes 36 266 157 Share of associates' other comprehensive income - 412 Tax relating to items that will not be reclassified 10 965 147 Valuation (losses)/gains on fair value through other comprehensive income equity investments 35 (349) - Tax related to items that will not be reclassified 35 57 - _______ _______ (3,521) (438) Items that will or may be reclassified to profit or loss: Valuation (losses)/gains in fair value through other comprehensive income on debt instruments (9) 1,542 Cash flow hedges 35 73 601 Exchange gains arising on translation of foreign operations 2,084 1,024 Tax relating to items that may be reclassified 10 (212) (536) _______ _______ 1,936 2,631 Other comprehensive income for the year, net of tax (1,585) 2,193 _______ _______ Total comprehensive income 7,191 7,460 _______ _______ Total comprehensive income attributable to: Owners of the parent 6,798 7,052 Non-controlling interest 393 408 _______ _______ 7,191 7,460 _______ _______ 17 Consolidated statement of financial position (Assets) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.55 Present additional line items, headings and sub-totals as required. IAS 1.77-78 Present further sub-classifications as required (or in the notes). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. IAS 1.10(f), 40A-B Instances when the presentation of a third balance sheet is required. Specific line item requirements IAS 1.54 Specific line items required in the statement of financial position. BDO Comment IAS 1.57 states that IAS 1 does not prescribe the order or format in which an entity presents items, and that paragraph 54 simply lists items that warrant separate presentation. Therefore, other formats and layouts may be appropriate in under certain circumstances. IAS 1.56 Deferred tax assets must not be presented as current. IAS 1.60 Presentation of line items on a: - Current and non -current basis - Liquidity basis (subject to criteria and additional requirements) . IAS 1.61 Disclosure of items expected to be recovered or settled within and after 12 months of reporting date. IFRS 5.38, 40 Specific line items required for assets held for sale and assets in disposal groups held for sale. IFRS 16.47(a) IFRS 16 requires that right-of-use assets be presented separately from other assets or together with the same line item as that within which the corresponding underlying assets would be presented (e.g. property, plant and equipment). A Layout has elected to present right-of-use assets separately from other assets. 18 A Layout (International) Group Ltd Consolidated statement of financial position As at 31 December 2025 Note 31 December 31 December 2025 2024 CU'000 CU'000 Assets Current assets Inventories 23 21,194 19,425 Trade and other receivables 26 16,107 13,852 Contract asset 4 367 600 Fair value through other comprehensive income investments 24 448 62 Derivative financial assets 25 2,314 1,551 Cash and cash equivalents 43 21,765 20,745 ______ _______ 62,195 56,235 Assets in disposal groups classified as held for sale 32 5,316 8,756 ______ _______ 67,511 64,991 ______ _______ Non-current assets Property, plant and equipment 14 47,501 40,753 Right-of-use assets 15 4,593 4,962 Investment property 16 3,299 5,838 Intangible assets 17 5,917 3,162 Investments in equity-accounted associates 21 1,790 1,130 Investments in equity-accounted joint ventures 22 383 283 Fair value through other comprehensive income investments 24 3,125 4,021 Derivative financial assets 25 625 666 Other receivables 26 692 700 Deferred tax assets 31 471 365 ______ _______ 68,396 61,880 ______ _______ Total assets 135,907 126,871 _______ _______ 19 Consolidated statement of financial position (Liabilities and Equity) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.55 Present additional line items, headings and sub-totals as required. IAS 1.77-78 Present further sub-classifications as required (or in the notes). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. IAS 1.10(f), 40A-B Instances when the presentation of a third balance sheet is required. Specific line item requirements IAS 1.54 Specific line items required in the statement of financial position. BDO Comment IAS 1.57 states that IAS 1 does not prescribe the order or format in which an entity presents items, and that paragraph 54 simply lists items that warrant separate presentation. Therefore, other formats and layouts may be appropriate in under certain circumstances. IAS 1.56 Deferred tax liabilities must not be presented as current. IAS 1.60 Presentation of line items on a: - Current and non -current basis - Liquidity basis (subject to criteria and additional requirements) . BDO Comment The Group has presented line items based on a current and non-current basis IFRS 16.47(b) IFRS 16 requires that lease liabilities be presented separately from other liabilities or grouped with other liabilities, with appropriate disclosure of which line item the lease liabilities are included within. IAS 1.61 Disclosure of items expected to be recovered or settled within and after 12 months of reporting date. IFRS 5.35 Specific line items required for assets held for sale. IFRS 5.38, 40 Specific line items required for liabilities held for sale and liabilities in disposal groups held for sale. BDO Comment The components of equity for the Group may not be relevant in all jurisdictions. Examples include, share premium reserve, and capital redemption reserve. IAS 10.17 Details of authorisation of the financial statements. 20 A Layout (International) Group Ltd Consolidated statement of financial position As at 31 December 2025 (continued) Note 31 December 31 December 2025 2024 CU'000 CU'000 Liabilities Current liabilities Trade and other payables 27 14,371 15,207 Contract liability 4 213 364 Loans and borrowings 28 7,548 7,990 Lease liabilities 15 1,230 2,905 Derivative financial liabilities 25 69 48 Income tax payable 2,644 2,342 Employee benefit liabilities 29 2,817 1,696 Provisions 30 256 375 ______ _______ 29,148 30,927 Liabilities directly associated with assets in Disposal groups classified as held for sale 32 327 546 ______ _______ 29,475 31,473 Non-current liabilities Loans and borrowings 28 23,722 18,262 Lease liabilities 15 3,576 3,627 Derivative financial liabilities 25 43 56 Employee benefit liabilities 29 8,452 6,785 Provisions 30 1,303 930 Deferred tax liability 31 1,046 1,706 ______ _______ 38,142 31,366 ______ _______ Total liabilities 67,617 62,839 _______ _______ NET ASSETS 68,290 64,032 _______ _______ Issued capital and reserves attributable to owners of the parent 34 Share capital 33 7,568 7,428 Share premium reserve 23,800 22,434 Shares to be issued 38 1,055 - Capital redemption reserve 100 50 Treasury and ESOP share reserve (1,066) (1,230) Convertible debt option reserve 503 559 Revaluation reserve 892 4,326 Equity investment reserve 1,217 1,516 Cash flow hedging reserve 939 1,080 Foreign exchange reserve 6,519 4,435 Retained earnings 23,176 20,327 ______ _______ 64,703 60,925 Non-controlling interest 3,587 3,107 ______ _______ TOTAL EQUITY 68,290 64,032 _______ _______ The financial statements on pages [X] to [Y] were approved and authorised for issue by the Board of Directors on [date] and were signed on its behalf by: [Name of director] 21 Consolidated statement of cash flows (Operating activities) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. IAS 7.10 Cash flows are to be classified as either operating, investing, or financing activities. IAS 7.18 Report operating cash flows either using: - Direct method - Indirect method . BDO Comment The Group prepares its statement of cash flows using the indirect method. IAS 7.21, 22 Criteria when cash flows are to be presented gross or net. Specific line item requirements IAS 7.14 Examples of operating activity cash flows. IAS 7.31 Present cash flows from interest and dividends as either operating, investing or financing activities (must be consistent year-on-year). IAS 7.35 Present cash flows from taxes on income as operating activities (unless they can be separately identified with financing and investing activities). 22 A Layout (International) Group Ltd Consolidated statement of cash flows For the year ended 31 December 2025 Note 2025 2024 CU'000 CU'000 Cash flows from operating activities Profit for the year 8,776 5,267 Adjustments for: Depreciation of property, plant and equipment 14 9,753 9,165 Impairment of property, plant and equipment 14 1,000 1,000 Amortisation of right-of-use assets 15 2,043 2,133 Amortisation of intangible fixed assets 17 410 410 Impairment losses on intangible assets 17 100 500 Change in value of investment property 16 2,837 1,478 Finance income 9 (825) (1,491) Finance expense 9 861 842 Share of post-tax profits of equity accounted associates (660) (600) Share of post-tax profits of equity accounted joint ventures (100) (110) Profit on sale of discontinued operations, net of tax 11 (63) (55) Loss/(gain) on sale of property, plant and equipment 50 (30) Share-based payment expense 37 1,464 1,695 Income tax expense 10 2,782 4,209 _______ _______ 28,428 24,413 Increase in trade and other receivables (2,057) (5,843) Increase in inventories (1,339) (5,037) Decrease in trade and other payables (408) (2,899) Increase in provisions and employee benefits 2,593 2,023 _______ _______ Cash generated from operations 27,217 12,657 Income taxes paid (2,183) (1,367) _______ _______ Net cash flows from operating activities 25,034 11,290 23 Consolidated statement of cash flows (Investing and Financing activities) General financial statement presentation requirements IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. IAS 7.10 Cash flows are to be classified as either operating, investing, or financing. IAS 7.21, 22 Cash flows are to be presented gross, unless they meet the criteria to be presented net. Specific line item requirements IAS 7.16 Examples of investing activity cash flows. IAS 7.17 Examples of financing activity cash flows. IAS 7.31 Present cash flows from interest and dividends as either operating, investing or financing activities (must be consistent year-on-year). IAS 7.39 Aggregate cash flows from obtaining or losing control of subsidiaries or other businesses are classified as investing activities. IAS 7.42A Cash flows from transactions relating to changes in ownership that do not result in a loss of control are classified as financing activities. IAS 7.28 Present the effect of unrealised foreign exchange gains or losses on cash balances. IAS 7.45 Reconciliation (or reference to a reconciliation) of the cash balances presented in the statement of cash flows and the statement of financial position 24 A Layout (International) Group Ltd Consolidated statement of cash flows For the year ended 31 December 2025 (continued) Note 2025 2024 CU'000 CU'000 Net cash flows from operating activities brought forward 25,034 11,290 Investing activities Acquisition of subsidiary, net of cash acquired 38, 39 (3,185) (1,524) Purchases of property, plant and equipment (17,886) (4,950) Sale of property, plant and equipment 400 80 Disposal of discontinued operation, net of cash disposed of 11 6,300 700 Purchase of intangibles 17 (650) (895) Purchases of fair value through OCI financial assets 24 (148) (52) Sales of fair value through OCI financial assets 24 400 - Interest received 244 272 Dividends from associates 284 43 ______ _______ Net cash used in investing activities (14,241) (6,326) Financing activities 43 Issue of ordinary shares 776 - Purchase of ordinary shares for cancellation (250) (250) Purchase of treasury and ESOP shares - (1,230) Dividends paid to the holders of the parent 13 (6,463) (4,980) Proceeds from loans and borrowings 10,800 16,427 Repayment of loans and borrowings (11,005) (6,305) Principal paid on lease liabilities 15 (3,037) (3,121) Interest paid on lease liabilities (277) (309) Interest paid on loans and borrowings (789) (827) Interest rate swap net settlements 4,034 5,358 ______ _______ Net cash (used in)/from financing activities (6,211) 4,763 Net increase in cash and cash equivalents 4,582 9,727 Cash and cash equivalents at beginning of year 17,775 10,257 Exchange (losses)/gains on cash and cash equivalents (592) 760 ______ _______ Cash and cash equivalents at end of year 43 21,765 20,745 _______ _______ 25 IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Consolidated statement of changes in equity General financial statement presentation requirements Specific line item requirements IAS 1.106 Specific line items and information required for the components of equity in the statement of changes in equity. IAS 1.106A Analysis of other comprehensive income by component of equity (or in the notes). IAS 1.107 Dividends recognised as distributions to owners and the related amount per share (or in the notes). 26 A Layout (International) Group Ltd Consolidated statement of changes in equity For the year ended 31 December 2025 Share capital Share premium Shares to be issued Capital redemption reserve Treasury shares/ shares held by ESOP Convertible debt option reserve Revaluation reserve Equity investment reserve Cash flow hedge reserve Foreign exchange reserve Retained earnings Total attributable to equity holders of parent Non-controlling interest Total equity CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 Balance at 1 January 2025 7,428 22,434 - 50 (1,230) 559 4,326 1,516 1,080 4,435 20,327 60,925 3,107 64,032 Comprehensive Income for the year Profit - - - - - - - - - - 8,296 8,296 480 8,776 Other comprehensive Income (Note 35) - - - - - - (3,434) (299) (141) 2,084 205 (1,585) - (1,585) Total comprehensive Income for the year - - - - - - (3,434) (299) (141) 2,084 8,501 6,711 480 7,191 *Table continued to next page 27 IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Consolidated statement of changes in equity (continued) General financial statement presentation requirements Specific line item requirements IAS 1.106 Specific line items and information required for the components of equity in the statement of changes in equity. IAS 1.106A Analysis of other comprehensive income by component of equity (or in the notes). IAS 1.107 Dividends recognised as distributions to owners and the related amount per share (or in the notes). 28 A Layout (International) Group Ltd Consolidated statement of changes in equity (continued) For the year ended 31 December 2025 Contributions by and distributions to owners Dividends - - - - - - - - - - (6,463) (6,463) - (6,463) Issue of share capital 190 1,366 - - - - - - - - - 1,556 - 1,556 Expiry of share options - - - - - (56) - - - - 56 - - - Shares to be issued as part of the consideration in a business Combination - - 1,055 - - - - - - - - 1055 - 1,055 Share based payment - - - - - - - - - - 878 878 - 878 Issue of shares held by ESOP to Employees - - - - 164 - - - - - 127 291 - 291 Shares purchased for cancellation (50) - - 50 - - - - - - (250) (250) - (250) Total contributions by and distributions to owners 140 786 1,055 50 164 (56) - - - - (5,652) (2,933) - (2,933) 31 December 2025 7,568 23,800 1,055 100 (1,066) 503 892 1,217 939 6,519 23,176 64,703 3,587 68,290 29 IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Consolidated statement of changes in equity (continued) General financial statement presentation requirements Specific line item requirements IAS 1.106 Specific line items and information required for components of equity in the statement of changes in equity. IAS 1.106A Analysis of other comprehensive income by component of equity (or in the notes). IAS 1.107 Dividends recognised as distributions to owners and the related amount per share (or in the notes). 30 A Layout (International) Group Ltd Consolidated statement of changes in equity (continued) For the year ended 31 December 2025 Share capital Share premium Shares to be issued Capital redemption reserve Treasury shares/ shares held by ESOP Convertible debt option reserve Revaluation reserve Fair value through OCI reserve Cash flow hedging reserve Foreign exchange reserve Retained earnings Total attributable to equity holders of parent Non-controlling interest Total equity CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 1 January 2024 7,428 22,434 - - - - 5,191 360 629 3,411 19,194 58,697 2,759 61,456 Comprehensive Income for the year Profit - - - - - - - - - - 4,919 4,919 348 5,267 Other comprehensive Income (Note 35) - - - - - - (865) 1,156 451 1,024 427 2,193 - 2,193 Total comprehensive Income for the year - - - - - - (865) 1,156 451 1,024 5,346 7,112 348 7,460 *Table continued to next page 31 IAS 1.38-38A Minimum comparative information required (current and previous period). IAS 1.113 Notes to be presented in a systematic manner and cross referenced. Consolidated statement of changes in equity (continued) General financial statement presentation requirements Specific line item requirements IAS 1.106 Specific line items and information required for components of equity in the statement of changes in equity. IAS 1.106A Analysis of other comprehensive income by component of equity (or in the notes). IAS 1.107 Dividends recognised as distributions to owners and the related amount per share (or in the notes). 32 A Layout (International) Group Ltd Consolidated statement of changes in equity (continued) For the year ended 31 December 2025 Contributions by and distributions to owners Dividends - - - - - - - - - - (4,980) (4,980) - (4,980) Equity share options issued - - - - - 559 - - - - - 559 - 559 Purchase of treasury shares by ESOP - - - - (1,230) - - - - - - (1,230) - (1,230) Share based payment - - - - - - - - - - 1,017 1,017 - 1,017 Shares purchased for cancellation (50) - - 50 - - - - - - (250) (250) - (250) Total contributions by and distributions to owners (50) - - 50 (1,230) 559 - - - - (4,213) (4,884) - (4,884) 31 December 2024 7,428 22,434 - 50 (1,230) 559 4,326 1,516 1,080 4,435 20,327 60,925 3,107 64,032 33 Notes to the consolidated financial statements General requirement for the Notes to the consolidated financial statements IAS 1.112 The Notes to the consolidated financial statements include the following information: - Basis of preparation - Specific accounting policies - Information required by IFRSs that is not presented elsewhere - Information that is not presented elsewhere in the financial statements, but is relevant to an understanding the financial statements. IAS 1.113 Notes are required to be presented in a systematic manner and cross referenced. 34 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 ILLUSTRATIVE FINANCIAL STATEMENTS .... 1 Financial Statements ............................. 7 Consolidated statement of financial position18 Consolidated statement of cash flows ....... 22 Consolidated statement of changes in equity ........................................... 26 Consolidated statement of changes in equity (continued) ............................. 28 Consolidated statement of changes in equity (continued) ............................. 32 Notes forming part of the consolidated financial statements................... 34 1. Basis of preparation.......................... 36 2. Critical accounting estimates and judgements............................. 42 3. Financial instruments - Risk Management 46 4. Revenue from contracts with customers . 72 5. Other operating income .................... 82 6. Expenses by nature ......................... 84 7. Employee benefit expenses ................ 86 8. Segment information ........................ 88 9. Finance income and expense.............100 10. Tax expense ................................102 11. Discontinued operations ..................110 12. Earnings per share.........................114 13. Dividends ...................................118 14. Property, plant and equipment ..........120 15. Leases .......................................126 16. Investment property .......................138 17. Intangible assets ...........................142 18. Goodwill and impairment .................144 19. Subsidiaries.................................148 20. Non-controlling Interests.................150 21. Investments in associates ................152 22. Joint ventures ................................154 23. Inventories....................................156 24. Fair value through other comprehensive income investments ....................158 25. Derivative financial instruments ...........162 26. Trade and other receivables ..............170 27. Trade and other payables ..................178 28. Loans and borrowings ......................180 29. Employee benefit liabilities ................186 30. Provisions.....................................188 31. Deferred tax ..................................192 32. Assets and liabilities classified as held for sale .......................................196 33. Share capital .................................200 34. Reserves ......................................202 35. Analysis of amounts recognised in other comprehensive income................204 36. Defined benefit schemes...................210 37. Share-based payment ......................218 38. Business combinations during the period ............................................222 39. Business combinations completed in prior periods ...................................226 40. Related party transactions .................230 41. Contingent liabilities .........................232 42. Events after the reporting date............232 43. Notes supporting statement of cash flows ............................................234 44. Accounting policies .........................240 Five-year record..................................280 APPENDIX A - IFRS 13 Fair Value Measurement ............................................282 APPENDIX B – Material Accounting Policy Information - illustration ...............285 35 Note 1 Basis of preparation General IAS 1.112(a) Information about the basis of preparation. IAS 1.51(b) Whether the financial statements are consolidated or separate. IAS 1.51(d) Disclosure of the presentation currency. BDO Comment IAS 21 paragraphs 53 -57 detail the disclosure requirements when: - the entity’s presentation currency is different from its functional currency - there is a change in the entity’s functional currency. IAS 1.51(e) Disclosure of the level of rounding. IAS 1.16 Statement of compliance with IFRS (or otherwise). IAS 1.117 An entity shall disclose material accounting policy information (see paragraph 7). Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. BDO Comment Some IFRS Accounting Standards require the disclosure of accounting policies for specific items. These are included in this publication where appropriate. All other accounting policies have been made in accordance with the general requirement of IAS 1.117, and with reference to the specific recognition and measurement requirements of the applicable IFRS Accounting Standard(s). 36 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 1. Basis of preparation The principal accounting policies adopted in the preparation of the consolidated financial statements are set out in note 44. The policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements are presented in CU, which is also the Group’s function al currency. Amounts are rounded to the nearest thousand, unless otherwise stated. These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (IASB) and Interpretations (collectively IFRS Accounting Standards). The preparation of financial statements in compliance with adopted IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies. The areas where significant judgments and estimates have been made in preparing the consolidated financial statements and their effect are disclosed in note 2. Basis of measurement The consolidated financial statements have been prepared on a historical cost basis, except for the following items (refer to individual accounting policies for details): - Financial instruments – fair value through profit or loss - Financial instruments – fair value through other comprehensive income - Contingent consideration - Investment property - Revalued property, plant and equipment - Net defined benefit liability - Cash settled share -based payment liabilities. 37 Note 1 Basis of preparation (continued) New standards, interpretations and amendments effective IAS 21.8 A currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. IAS 21.19A An entity shall estimate the spot exchange rate at a measurement date when a currency is not exchangeable into another currency (as described in paragraphs 8, 8A–8B and A2–A10) at that date. An entity’s objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. IAS 21.57A When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency (see paragraph 19A), the entity shall disclose information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. To achieve this objective, an entity shall disclose information about: a. the nature and financial effects of the currency not being exchangeable into the other currency; b. the spot exchange rate(s) used; c. the estimation process; and d. the risks to which the entity is exposed because of the currency not being exchangeable into the other currency. BDO Comment The IASB issued Disclosures about Uncertainties in the Financial Statements – Illustrative examples on 28 November 2025, which added illustrative examples to a number of IFRS Accounting Standards, however, the requirements of IFRS Accounting Standards are unchanged. Entities should consider the requirements of IFRS Accounting Standards when disclosing information about uncertainties, which include, but are not limited to, the effects of climate change. In these illustrative financial statements, the Group has concluded that there is no material information to be disclosed in the financial statements about climate-related risks. Entities should consider their own facts and circumstances when determining whether specific information should be disclosed. 38 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 1. Basis of preparation (continued) Changes in accounting policies a) New standards, interpretations and amendments adopted from 1 January 2025 The following amendments are effective for the period beginning 1 January 2025: • Lack of exchangeability (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates ) On 15 August 2023, the IASB issued Lack of Exchangeability which amended IAS 21 The Effects of Changes in Foreign Exchange Rates (the Amendments). The Amendments introduce requirements to assess when a currency is exchangeable into another currency and when it is not. The Amendments require an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable into another currency. These amendments had no effect on the consolidated financial statements of the Group. The following illustrative examples have been issued during 2025 with no effective date: • Illustrative examples on reporting uncertainties in financial statements On 28 November 2025, the IASB issued Disclosures about Uncertainties in the Financial Statements – Illustrative examples, which amended multiple IFRS Accounting Standards to include illustrative examples demonstrating how companies can apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements. The illustrative examples are accompanying materials to IFRS Accounting Standards and do not have an effective date. The IASB had issued a near-final staff draft of the illustrative examples in July 2025. The Group has considered these illustrative examples in its preparation of the consolidated financial statements and no additional disclosures or changes in presentation were considered necessary. 39 Note 1 Basis of preparation (continued) New standards, interpretations and amendments not yet effective IAS 8.30 When an entity has not applied a new IFRS that has been issued but is not yet effective, disclose (a) this fact; and (b) known or reasonably estimable information relevant to assessing the possible impact that application of the new IFRS will have on the entity’s financial statements in the period of initial application. IAS 8.31 In complying with IAS 8.30, consider disclosing: (a) the title of the new IFRS; (b) the nature of the impending change or changes in accounting policy; (c) the date by which application of the IFR S is required; (d) the date at which it plans to apply the IFRS initially; and (e) either: (i) a discussion of the impact expected; or (ii) if that impact is not known or reasonably estimable, that fact. 40 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 1. Basis of preparation (continued) b) New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early. The following amendments are effective for the annual reporting period beginning 1 January 2026: • Amend ments to the Classification and Measurement of Financial Instruments (Amendment s to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures ) • Contracts Referencing Nature -dependent Electricity (Amendments to IFRS 9 and IFRS 7) The following standards and amendments are effective for the annual reporting period beginning 1 January 2027: • IFRS 18 Presentation and Disclosure in Financial Statements • IFRS 19 Subsidiaries without Public Accountability: Disclosures. The Group is currently assessing the effect of these new accounting standards and amendments. IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024 supersedes IAS 1 and will result in major consequential amendments to IFRS Accounting Standards including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures. The Group does not expect to be eligible to apply IFRS 19. 41 Note 2 Critical accounting estimates and judgements IAS 1.125 Disclose significant key assumptions concerning the future, and other key sources of estimation uncertainty. IAS 1.122 Disclose significant judgements management has made in applying the entity's accounting policies. BDO Comment The areas identified and disclosed in response to the above requirement are specific to the consolidated financial statements of A Layout (International) Group Ltd. Other entities are likely to identify different areas where critical estimates and judgements have to be made and appropriate disclosure of these areas will be required. 42 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 2. Critical accounting estimates and judgements The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Judgements − Associates − Assessment of significant influence (see note 44 - Associates) − Significant influence over Ball Sports UK Limited (BSL) (see note 21) − No significant influence over Quoits & Co Limited (see note 24) − Classification of joint arrangements (see note 44 – Joint arrangements) − Assessment of de-facto control (see note 19 and 44 – Basis of consolidation) Estimates and assumptions − Revenue recognition – Provision of rights to return goods if customers are dissatisfied and volume rebates (see Note 4) − Income taxes – provisions for income taxes in various jurisdictions (see note 10) − Impairment of goodwill – Estimate of future cash flows and determination of the discount rate (see note 18). − Defined benefit scheme– actuarial assumptions (see note 29 and 44 – Defined benefit schemes) − Legal proceedings – estimates of claims and legal processes (see note 30 and 44 – Provisions) − The determination of lease term for some lease contracts in which the Group is a lessee, including whether the Company is reasonably certain to exercise lessee options (note 15) − The determination of the incremental borrowing rate used to measure lease liabilities (note 15) 43 Note 2 Critical accounting estimates and judgements (continued) IFRS 13.93(g) Disclose the policy and processes for the valuation of level 3 fair value measurements IFRS 13.95 Policy for transfer of items between levels of the fair value measurement hierarchy. IAS 40.75(d) - (e) Disclose the methods and significant assumptions applied in determining the fair value of investment property. 44 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 2. Critical accounting estimates and judgements (continued) - Fair value measurement A number of assets and liabilities included in the Group’s financial statements require measurement at, and/or disclosure of, fair value. The fair value measurement of the Group’s financial and non -financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the ‘fair value hierarchy’): - Level 1 : Quoted prices in active markets for identical items (unadjusted) - Level 2 : Observable direct or indirect inputs other than Level 1 inputs - Level 3 : Unobservable inputs (i.e. not derived from market data) . The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur [INSERT DETAILS OF ANY SPECIFIC PROCESS, COMMITTEES, AND SIMILAR IN RELATION TO FAIR VALUE MEASUREMENT THAT MAY EXIST FOR THE REPORTING ENTITY– E.G. VALUATION COMMITTEES, REPORTING TO AUDIT COMMITTEES ETC.] The Group measures a number of items at fair value. - Revalued land and buildings - Property, Plant and Equipment (note 14) - Investment property (note 16) - Financial instruments (notes 3, 24, and 25) - Assets and liabilities classified as held for sale (note 32) - Contingent considerations (note 38) - Plan assets (note 36) - Cash settled share -based payment liabilities (note 37) For more detailed information in relation to the fair value measurement of the items above, please refer to the applicable notes. 45 Note 3 Financial instruments – risk management IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments. IFRS 7.33 For each type of risk, disclose the following qualitative factors: (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above. 46 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management The Group is exposed through its operations to the following financial risks: - Credit risk - Interest rate risk - Foreign exchange risk - Other market price risk, and - Liquidity risk. In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. (i) Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: - Trade receivables - Cash and cash equivalents - Investments in quoted and unquoted equity securities - Trade and other payables - Bank overdrafts - Floating-rate bank loans - Fixed rate bank loans - Interest rate swaps, and - Forward currency contracts. 47 Note 3 Financial instruments – risk management (continued) IFRS 7.7 An entity shall disclose information that enables users of its financial statements to evaluate the significance of financial instruments for its financial position and performance. IFRS 7.8 The carrying amounts of each of the following categories as specified in IFRS 9 shall be disclosed either in the statement of financial position or in the notes: (a) financial assets measured at fair value through profit or loss, showing separately (i) those designated as such upon initial recognition and (ii) those mandatorily measured at fair value in accordance with IFRS 9. (b) Deleted (c) Deleted (d) Deleted (e) financial liabilities at fair value through profit or loss, showing separately (i) those designated as such upon initial recognition or subsequently in accordance with paragraph 6.7.1 of IFRS 9 and (ii) those that meet the definition of held for trading in IFRS 9. (f) financial assets measured at amortised cost. (g) financial liabilities measured at amortised cost. (h) financial assets measured at fair value through other comprehensive income, showing separately (i) financial assets that are measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of IFRS 9; and (ii) investments in eq uity instruments designated as such upon initial recognition in accordance with paragraph 5.7.5 of IFRS 9. IFRS 7.25 Fair value of financial instruments not measured at fair value. 48 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Principal financial instruments (continued) (ii) Financial instruments by category Financial assets Fair value through Fair value through Other comprehensive profit or loss Amortised cost Income 2025 2024 2025 2024 2025 2024 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 Cash and cash equivalents - - 21,765 20,745 - - Trade and other receivables - - 16,107 13,852 - - Derivatives 1,353 1,275 - - - - Equity investments - - - - 3,054 3,939 Debt securities 71 82 _______ _______ _______ _______ _______ _______ Total financial assets 1,353 1,275 37,872 34,597 3,125 4,021 _______ _______ _______ _______ _______ _______ Financial liabilities Fair value through profit or loss Amortised cost 2025 2024 2025 2024 CU'000 CU'000 CU'000 CU'000 Trade and other payables - - 14,371 15,207 Loans and borrowings - - 31,270 26,252 Derivatives 112 104 - - _______ _______ _______ _______ Total financial liabilities 112 104 45,641 41,459 _______ _______ _______ _______ (iii) Financial instruments not measured at fair value Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other payables, and loans and borrowings. Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, and trade and other payables approximates their fair value. For details of the fair value hierarchy, valuation techniques, and significant unobservable inputs related to determining the fair value of loans and borrowings, which are classified in level 3 of the fair value hierarchy, refer to note 28. 49 Note 3 Financial instruments – risk management (continued) IFRS 13 Fair value measurement disclosures BDO Comment IFRS 13 requires specific disclosures for items measured or disclosed at fair value, dependent on: - the level of fair value measurement - whether the fair value measurement is recurring or non -recurring. Derivative financial instruments are an example of recurring fair value measurement, as a fair value valuation is required at each reporting date. In the case of A Layout, there are financial instruments with Level 1 (L1), Level 2 (L2), and Level 3 (L3) fair value measurements. IFRS 13.93(a) Disclose the fair value (L1, L2, and L3). IFRS 13.93(b) Disclose the fair value hierarchy (L1, L2, and L3). IFRS 13.93(c) Disclose amounts and reasons for transfers between levels of the hierarchy (L1, and L2) IFRS 13.93(d) Disclose in relation to the valuation technique used: - A description (L2, and L3) - Any changes for the technique used previously, and reasons why (L2, and L3) - Significant unobservable inputs (L3). BDO Comment Note that this disclosure has been left blank. This is intentional as these elements will be specific on an entity-by-entity, and instrument-by-instrument basis. IFRS 13.93(g) Disclose a description of the entity’s valuation processes and policies in relation to the item (L3). IFRS 13.93(h)(i) Disclose a narrative description (i.e. no figures required) of the sensitivity of changes in significant unobservable inputs to fair value (L3). IFRS 13.93(i) If the items highest and best use differs from its actual use, disclose (L1, L2, and L3): - this fact - the reasons why. 50 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) (iv) Financial instruments measured at fair value The fair value hierarchy of financial instruments measured at fair value is provided below 31 December 2025 Level 1 Level 2 Level 3 2025 2024 2025 2024 2025 2024 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 Financial assets Derivative financial assets (designated hedge instruments) - - 1,586 942 - - Derivative financial assets (fair value through profit or loss) - - 1,353 1,275 - - Equity investments 1,553 2,225 - - 1,501 1,714 _______ ______ _ ______ _ _______ _______ ______ _ 1,553 2,225 2,939 2,217 1,501 1,714 _______ ______ _ ______ _ _______ _______ ______ _ Financial liabilities Derivative financial liabilities (fair value through profit or loss) - - 112 104 - - _______ ______ _ ______ _ _______ _______ ______ _ - - 112 104 - - _______ ______ _ ______ _ _______ _______ ______ _ There were no transfers between levels during the period. The valuation techniques and significant unobservable inputs used in determining the fair value measurement of level 2 and level 3 financial instruments, as well as the inter-relationship between key unobservable inputs and fair value, are set out in the table below. Financial Instrument Valuation techniques used Significant unobservable inputs (Level 3 only) Inter-relationship between key unobservable inputs and fair value (Level 3 only) Derivative financial assets and liabilities [VALUATION TECHNIQUE] [DESCRIPTION] Not applicable. Not applicable. Equity investments [VALUATION TECHNIQUE [DESCRIPTION] [PROCESSES AND POLICIES] [LIST SIGNIFICANT UNOBSERVABLE INPUTS USED] [DESCRIBE WHETHER INCREASES OR DECREASES IN SIGNIFICANT UNOBSERVABLE INPUTS WOULD CAUSE AN INCREASE OR DECREASE IN FAIR VALUE] There were no changes to the valuation techniques during the period. 51 Note 3 Financial instruments – risk management (continued) IFRS 13 Fair value measurement disclosures IFRS 13.93(e) IFRS 13.93(f) Disclose a reconciliation between the opening and closing fair value measurement, including any unrealised fair value gains/losses (L3). IFRS 13.93(h)(ii) Disclose a narrative and quantitative description of the sensitivity of changes in significant unobservable inputs to fair value (L3). BDO Comment Note that this disclosure has been left blank. This is intentional as these elements will be specific on an entity-by-entity, and instrument-byinstrument basis. 52 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) (iv) Financial instruments measured at fair value (continued) The reconciliation of the opening and closing fair value balance of level 3 financial instruments is provided below: Equity investments CU'000 At 1 January 2024 1,177 Gains (Loss): included in ‘other comprehensive income’ - Fair value through other comprehensive income investments 537 ______ At 31 December 2024 1,714 _______ At 1 January 2025 1,714 Purchases, disposals and reclassifications (103) Gains (Loss): included in ‘other comprehensive income’ - Fair value through other comprehensive income investments (110) ______ At 31 December 2025 1,501 _______ The sensitivity analysis of a reasonably possible change in one significant unobservable input, holding other inputs constant, of level 3 financial instruments is provided below: Equity investments (level 3) 31 December 2025 Profit or loss Other comprehensive income (net of tax) Increase Decrease Increase Decrease CU'000 CU'000 CU'000 CU'000 [SIGNIFICANT UNOBSERVABLE INPUT #1] [REASONABLY POSSIBLE CHANGE] [VALUE] [VALUE] [VALUE] [VALUE] [SIGNIFICANT UNOBSERVABLE INPUT #2] [REASONABLY POSSIBLE CHANGE] [VALUE] [VALUE] [VALUE] [VALUE] [SIGNIFICANT UNOBSERVABLE INPUT #3] [REASONABLY POSSIBLE CHANGE] [VALUE] [VALUE] [VALUE] [VALUE] 53 Note 3 Financial instruments – risk management (continued) IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments. IFRS 7.33 For each type of risk, disclose the following qualitative factors: (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36 –42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above). Credit Risk IFRS 7.35F An entity shall explain its credit risk management practices and how they relate to the recognition and measurement of expected credit losses. 54 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) General objectives, policies and processes The Board has overall responsibility for the determination of the Group's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group's finance function. The Board receives monthly reports from the Group Financial Controller through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The Group's internal auditors also review the risk management policies and processes and report their findings to the Audit Committee. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below: Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from credit sales. It is Group policy, implemented locally, to assess the credit risk of new customers before entering contracts. Such credit ratings are taken into account by local business practices. The Risk Management Committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Group's standard payment and delivery terms and conditions are offered. The Group's review includes external ratings, when available, and in some cases bank references. Purchase limits are established for each customer, which represents the maximum open amount without requiring approval from the Risk Management Committee. The Risk Management Committee determines concentrations of credit risk by quarterly monitoring the creditworthiness rating of existing customers and through a monthly review of the trade receivables' ageing analysis. In monitoring the customers' credit risk, customers are grouped according to their credit characteristics. Customers that are graded as ‘high risk’ are placed on a restricted customer list, and future credit sales are made only with approval of the Risk Management Committee, otherwise payment in advance is required. Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial institutions, only independently rated parties with minimum rating ‘A’ are accepted. Further disclosures regarding trade and other receivables, which are neither past due nor impaired, are provided in note 26. 55 Note 3 Financial instruments – risk management (continued) IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36–42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above). IFRS 7.36 For all financial instruments within the scope of this IFRS, but to which the impairment requirements in IFRS 9 are not applied, an entity shall disclose by class of financial instrument: (a) the amount that best represents its maximum exposure to credit risk at the end of the reporting period without taking account of any collateral held or other credit enhancements (eg netting agreements that do not quality for offset in accordance with IAS 3 2); this disclosure is not required for financial instruments whose carrying amount best represents the maximum exposure to credit risk. (b) a description of collateral held as security and other credit enhancements, and their financial effect (eg quantification of the extent to which collateral and other credit enhancements mitigate credit risk) in respect of the amount that best represents th e maximum exposure to credit risk (whether disclosed in accordance with (a) or represented by the carrying amount of a financial instrument). Market risk IFRS 7.21 21A - An entity shall apply the disclosure requirements in paragraphs 21B–24F for those risk exposures that an entity hedges and for which it elects to apply hedge accounting. Hedge accounting disclosures shall provide information about: (a) an entity's risk management strategy and how it is applied to manage risk; (b) how the entity's hedging activities may affect the amount, timing and uncertainty of its future cash flows; 21C - When paragraphs 22A–24F require the entity to separate by risk category the information disclosed, the entity shall determine each risk category on the basis of the risk exposures an entity decides to hedge and for which hedge accounting is applied. An entity shall determine risk categories consistently for all hedge accounting disclosures. IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments. IFRS 7.33 For each type of risk, disclose the following qualitative factors. (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above. 56 Page intentionally left blank for formatting. 57 Note 3 Financial instruments – risk management (continued) IFRS 7.22 22A An entity shall explain its risk management strategy for each risk category of risk exposures that it decides to hedge and for which hedge accounting is applied. This explanation should enable users of financial statements to evaluate (for example): (a) how each risk arises. (b) how the entity manages each risk; this includes whether the entity hedges an item in its entirety for all risks or hedges a risk component (or components) of an item and why. (c) the extent of risk exposures that the entity manages. IFRS 7.40, IG36 IFRS 7.B17-B28 Disclose: (a) A sensitivity analysis for reasonably possible changes in significant risk variables (profit or loss, and equity) (b) The methods and assumptions used in preparing the sensitivity analysis (c) Changes from the previous period in the methods and assumptions used, and reasons for such changes 58 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Cash in bank and short-term deposits A significant amount of cash is held with the following institutions. 31 December 2025 31 December 2024 Rating Cash at Bank Short-term Deposits Rating Cash at Bank Short-term Deposits CU'000 CU'000 CU'000 CU'000 [INSTITUTION A] A 10,946 3,091 A 10,078 2,380 [INSTITUTION B] AA 4,471 1,262 AA 3,359 793 ______ ______ ______ ______ Note 43 15,417 4,353 13,437 3,173 _______ _______ _______ _______ The Risk Management Committee monitors the credit ratings of counterparties regularly and at the reporting date does not expect any losses from non-performance by the counterparties. For all financial assets to which the impairment requirements have not been applied, the carrying amount represents the maximum exposure to credit loss. Market risk Market risk arises from the Group's use of interest bearing, tradable and foreign currency financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk). Interest rate risk The Group is exposed to cash flow interest rate risk from long-term borrowings at variable rate. It is currently group policy that between 50% and 75% of external group borrowings (excluding shortterm overdraft facilities and lease liabilities) are fixed rate borrowings. This policy is managed centrally. Local operations are not permitted to borrow long-term from external sources. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being at least 50% and no more than 75% of expected Group borrowings, as noted above), the Group makes use of interest rate swaps to achieve the desired interest rate profile. Although the board accepts that this policy neither protects the Group entirely from the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments, it considers that it achieves an appropriate balance of exposure to these risks. During 2025 and 2024, the Group's borrowings at variable rate were denominated in [CURRENCY B] and CU. The Group analyses the interest rate exposure on a quarterly basis. A sensitivity analysis is performed by applying a simulation technique to the liabilities that represent major interest-bearing positions. Various scenarios are run taking into consideration refinancing, renewal of the existing positions, alternative financing and hedging. Based on the simulations performed, the impact on profit or loss and net assets of a 100 basis-point shift (being the maximum reasonable expectation of changes in interest rates [basis point: 1/100th of a percentage point]). 59 Note 3 Financial instruments – risk management (continued) IFRS 7.21A & 21C 21A - An entity shall apply the disclosure requirements in paragraphs 21B–24F for those risk exposures that an entity hedges and for which it elects to apply hedge accounting. Hedge accounting disclosures shall provide information about: (a) an entity's risk management strategy and how it is applied to manage risk; (b) how the entity's hedging activities may affect the amount, timing and uncertainty of its future cash flows; 21C - When paragraphs 22A–24F require the entity to separate by risk category the information disclosed, the entity shall determine each risk category on the basis of the risk exposures an entity decides to hedge and for which hedge accounting is applied. An entity shall determine risk categories consistently for all hedge accounting disclosures. IFRS 7.22A & 22C 22A An entity shall explain its risk management strategy for each risk category of risk exposures that it decides to hedge and for which hedge accounting is applied. This explanation should enable users of financial statements to evaluate (for example): (a) how each risk arises. (b) how the entity manages each risk; this includes whether the entity hedges an item in its entirety for all risks or hedges a risk component (or components) of an item and why. (c) the extent of risk exposures that the entity manages. IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36–42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above). IFRS 7.40, IG36 IFRS 7.B17-B28 Disclose: (a) A sensitivity analysis for reasonably possible changes in significant risk variables (profit or loss, and equity) (b) The methods and assumptions used in preparing the sensitivity analysis (c) Changes from the previous period in the methods and assumptions used, and the reason for such changes 22C When an entity designates a specific risk component as a hedged item (see paragraph 6.3.7 of IFRS 9) it shall provide, in addition to the disclosures required by paragraphs 22A and 22B, qualitative or quantitative information about: (a) how the entity determined the risk component that is designated as the hedged item (including a description of the nature of the relationship between the risk component and the item as a whole); and (b) how the risk component relates to the item in its entirety (for example, the designated risk component historically covered on average 80 per cent of the changes in fair value of the item as a whole). IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments. IFRS 7.33 For each type of risk, disclose the following qualitative factors: (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above. 60 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Fair value and cash flow interest rate risk (continued) would be an increase of CU1,350,000 (2024: CU1,780,000) or a decrease of CU1,260,000 (2024: CU1,580,000). The gain or loss potential is then compared to the limits determined by management. Based on the various scenarios the Group then manages its cash-flow interest rate risk by using floating-to-fixed interest rate swaps (quantitative disclosures are given in note 25). Normally the Group raises long-term borrowings at floating rates and swaps them into fixed. At 31 December 2025, if interest rates on [CURRENCY B]-denominated borrowings had been 100 basis points higher/lower with all other variables held constant, profit after tax for the year would have been CU540,000 (2024: CU460,000) lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings. At 31 December 2025, if interest rates on CU-denominated borrowings had been 100 basis points higher/lower with all other variables held constant, profit after tax for the year and net assets would have been CU350,000 (2024: CU290,000) lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings. The directors consider that 100 basis points is the maximum likely change in CU and [CURRENCY B] interest rates over the next year, being the period up to the next point at which the Group expects to make these disclosures. Foreign exchange risk Foreign exchange risk arises when individual Group entities enter into transactions denominated in a currency other than their functional currency. The Group's policy is, where possible, to allow group entities to settle liabilities denominated in their functional currency) with the cash generated from their own operations in that currency. Where group entities have liabilities denominated in a currency other than their functional currency (and have insufficient reserves of that currency to settle them), cash already denominated in that currency will, where possible, be transferred from elsewhere within the Group. In order to monitor the continuing effectiveness of this policy, the Board receives a monthly forecast, analysed by the major currencies held by the Group, of liabilities due for settlement and expected cash reserves. The Group is predominantly exposed to currency risk on purchases made from a major supplier based in [CURRENCY B]. Purchases from this supplier are made on a central basis and the risk is hedged using forward exchange contracts. The Group’s policy is to h edge between 75% and 90% of the forecasted transactions with the major supplier. Apart from these particular cash-flows the Group aims to fund expenses and investments in the respective currency and to manage foreign exchange risk at a local level by matching the currency in which revenue is generated and expenses are incurred. 61 Note 3 Financial instruments – risk management (continued) IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36–42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above). IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments. 62 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Foreign exchange risk (continued) As of 31 December the Group's net exposure to foreign exchange risk was as follows: Functional currency of individual entity CU [CURRENCY B] [CURRENCY C] Other Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 CU000 CU000 CU000 CU000 CU000 CU000 CU000 CU000 CU000 CU000 Net foreign currency financial assets /(liabilities) CU - - 1,015 387 1,521 1,025 2,163 - 4,699 1,412 [CURRENCY B] 1,783 8,393 - - (1,446) (700) - 1,399 337 9,092 [CURRENCY C] 1,929 2,205 200 1,001 - - - 82 2,129 3,288 Other 939 (236) - - (1,521) - - - (582) (236) _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Total net exposure 4,651 10,362 1,215 1,388 (1,446) 325 2,163 1,481 6,583 13,556 _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ 63 Note 3 Financial instruments – risk management (continued) IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36 –42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above) IFRS 7.40, IG36 IFRS 7.B17-B28 Disclose: (a) A sensitivity analysis for reasonably possible changes in significant risk variables (profit or loss, and equity) (b) The methods and assumptions used in preparing the sensitivity analysis (c) Changes from the previous period in the methods and assumptions used, and the reasons for such changes IFRS 7.33 For each type of risk, disclose the following qualitative factors: (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above. 64 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Foreign exchange risk (continued) The effect of a 20% strengthening of the [CURRENCY B] against CU at the reporting date on the [CURRENCY B]-denominated trade payables carried at that date would, all other variables held constant, have resulted in a decrease in post-tax profit for the year and decrease of net assets of CU827,000 (2024: CU876,000). A 20% weakening in the exchange rate would, on the same basis, have increased post-tax profit and increased net assets by CU629,000 (2024: CU684,000). The effect of fluctuations in exchange rates on the [CURRENCY B]-denominated trade payables is partially offset through the use of forward exchange contracts. The effect of a 20% strengthening of the [CURRENCY B] against CU at the reporting date on the forward currency swaps carried at that date would, all other variables held constant, have resulted in an increase in post-tax profit for the year and increase in net assets of CU542,000 (2024: CU315,000). A 20% weakening in the exchange rate would, on the same basis, have decreased post-tax profit and decreased in net assets by CU457,000 (2024: CU394,000). Other market price risk The Group holds some strategic equity investments in other companies where those complement the Group's operations (see note 24). The directors believe that the exposure to market price risk from this activity is acceptable in the Group's circumstances. The effect of a 10% increase in the value of the equity investments held at the reporting date would, all other variables held constant, have resulted in an increase in the fair value through other comprehensive income reserve and net assets of CU357,300 (2024: CU408,300). A 10% decrease in their value would, on the same basis, have decreased the fair value through other comprehensive income reserve and net assets by the same amount. 65 Note 3 Financial instruments – risk management (continued) IFRS 7.34 For each type of risk, disclose the following quantitative factors: (a) Exposure to that risk, based on the information provided internally to key management personnel (b) Other specific the disclosures required by paragraphs IFRS 7.36–42 where applicable (c) Concentrations of risk (if not apparent from (a) and (b) above). Liquidity Risk IFRS 7.39(a) IFRS 7.B10A IFRS 7.B11 IFRS 7.B11D IFRS 7.39(b) Disclose: A maturity analysis for derivative and non -derivative financial liabilities (including issued financial guarantee contracts) that shows the remaining contractual maturities. - Based on internal information provided to key management personnel - Judgement to determine appropriate time bands presented - Cash flows are to be the contractual undiscounted amounts , and therefore will differ from the amounts presented in the statement of financial position (which are discounted). A description of how the entity manages the liquidity risk of its financial instruments. IFRS 16.58 Disclose a maturity analysis of lease liabilities applying paragraphs 39 and B11 of IFRS 7 Financial Instruments: Disclosures separately from the maturity analyses of other financial liabilities. IFRS 7.B11F Other factors that an entity might consider in providing the disclosure required in paragraph 39(c) include, but are not limited to, whether the entity: (a) has committed borrowing facilities (eg commercial paper facilities) or other lines of credit (eg stand-by credit facilities) that it can access to meet liquidity needs; (b) holds deposits at central banks to meet liquidity needs; (c) has very diverse funding sources; (d) has significant concentrations of liquidity risk in either its assets or its funding sources; (e) has internal control processes and contingency plans for managing liquidity risk; (f) has instruments that include accelerated repayment terms (eg on the downgrade of the entity’s credit rating); (g) has instruments that could require the posting of collateral (eg margin calls for derivatives); (h) has instruments that allow the entity to choose whether it settles its financial liabilities by delivering cash (or another financial asset) or by delivering its own shares; (i) has instruments that are subject to master netting agreements; or (j) has accessed, or has access to, facilities under supplier finance arrangements (as described in paragraph 44G of IAS 7) that provide the entity with extended payment terms or the entity’s suppliers with early payment terms. IFRS 7.31 Disclose information to enable evaluation of the nature and extent of risks arising from financial instruments IFRS 7.33 For each type of risk, disclose the following qualitative factors: (a) The exposures to risk and how they arise (b) Entity’s objectives, policies and processes for managing the risk and the methods used to measure the risk, and (c) Any changes in the above. 66 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Liquidity risk Liquidity risk arises from the Group's management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days. The Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings, this is further discussed in the 'interest rate risk' section above. The Board receives rolling 12-month cash flow projections on a monthly basis as well as information regarding cash balances and (as noted above) the value of the Group's investments in corporate bonds. At the end of the financial year, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances and will not need to draw down on its agreed CU5,000,000 overdraft facility. The liquidity risk of each group entity is managed centrally by the group treasury function. Each operation has a facility with group treasury, the amount of the facility being based on budgets. The budgets are set locally and agreed by the board in advance, enabling the Group's cash requirements to be anticipated. Where facilities of group entities need to be increased, approval must be sought from the group finance director. Where the amount of the facility is above a certain level, agreement of the board is needed. A portion of the Group’s trade payables form part of its supplier finance arrangement with select key suppliers. The payment terms for these trade payables remain identical to those of other payables. A Layout Group does not view the arrangement as creating significant concentration of liquidity risk. Refer to note 27 for further details about the Group’s supplier finance arrangements . The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: Carrying amount (discounted) Contractual maturities (undiscounted) Between Between Between At 31 December 2025 Up to 3 months 3 and 12 months 1 and 2 years 2 and 5 years Over 5 years CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 Trade and other Payables 14,371 9,810 4,774 - - - Loans and borrowings 31,270 1,900 5,871 14,958 5,485 7,314 Lease liabilities 4,806 635 895 1879 1215 872 Derivative financial Liabilities 112 17 52 43 - - _______ _______ _______ _______ _______ _______ Total 50,559 12,362 11,592 16,880 6,700 8,186 _______ _______ _______ _______ _______ _______ 67 Note 3 Financial instruments – risk management (continued) See earlier guidance notes 68 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Liquidity risk (continued) Carrying amount (discounted) Contractual maturities (undiscounted) Between Between Between At 31 December 2024 Up to 3 months 3 and 12 months 1 and 2 years 2 and 5 years Over 5 years CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 Trade and other Payables 15,207 10,371 5,200 - - - Loans and borrowings 26,252 4,046 12,505 6,616 5,408 7,211 Lease liabilities 6,352 895 2,678 1,428 1985 946 Derivative financial Liabilities 104 12 36 56 - - _______ _______ _______ _______ _______ _______ Total 47,915 15,324 20,419 8,100 7,393 8,157 _______ _______ _______ _______ _______ _______ 69 Note 3 Financial instruments – risk management (continued) Capital Disclosures IAS 1.134 IAS 1.135 Disclose information, to enable the evaluation of the entity's capital management objectives, policies, and processes. Including: - Qualitative information - Quantitative information - Changes from the previous period - Compliance with externally imposed capital requirements (i.e. bank covenants, lease covenants etc.) - Consequences of non -compliance with externally imposed capital requirements. These disclosures are based on internal information provided to key management personnel. 70 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 3. Financial instruments - Risk Management (continued) Capital Disclosures The Group monitors ‘adjusted capital’ which comprises all components of equity (i.e. share capital, share premium, non-controlling interest, retained earnings, and revaluation reserve) other than amounts in the cash flow hedging reserve. The Group's objectives when maintaining capital are: - to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and - to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk. The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of the debt to adjusted capital ratio. This ratio is calculated as net debt adjusted capital as defined above. Net debt is calculated as total debt (as shown in the consolidated statement of financial position) less cash and cash equivalents. Due to recent market uncertainty, the Group's strategy is to preserve a strong cash base and achieve a debt-to-adjusted-capital ratio of approximately 10-12% (2024: 12-15%). The objective of this strategy is to secure access to finance at reasonable cost by maintaining a high credit rating. The debt-to-adjusted-capital ratios at 31 December 2025 and at 31 December 2024 were as follows: 2025 2024 CU'000 CU'000 Loans and borrowings Lease liabilities 31,270 4,806 26,252 6,532 Less: cash and cash equivalents (21,765) (20,745) _______ _______ Net debt 14,311 12,039 _______ _______ Total equity 68,290 64,032 Less: Amounts in the cash flow hedging reserve (939) (1,080) _______ _______ Total adjusted capital 67,351 62,952 _______ _______ Debt to adjusted capital ratio (%) 21.25% 19.12% The increase in the debt to adjusted capital ratio during 2025 resulted primarily from the purchase of significant new property, plant and equipment (note 14), which increased net debt as the purchases were financed by use of existing cash reserves. In view of this change to the ratio, the Group has revisited its debt to adjusted capital ratio target going forward. 71 Note 4 Revenue from contracts with customers IFRS 15.114 Disaggregate revenue recognised from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. An entity shall apply the guidance in paragraphs B87–B89 when selecting the categories to use to disaggregate revenue. IFRS 15.B87 The extent to which an entity’s revenue is disaggregated for the purposes of this disclosure depends on the facts and circumstances that pertain to the entity’s contracts with customers. Some entities may need to use more than one type of category to meet the objective in paragraph 114 for disaggregating revenue. Other entities may meet the objective by using only one type of category to disaggregate revenue. IFRS 15.B88 When selecting the type of category (or categories) to use to disaggregate revenue, an entity shall consider how information about the entity’s revenue has been presented for other purposes, including all of the following: (a) disclosures presented outside the financial statements (for example, in earnings releases, annual reports or investor presentations); (b) information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments; and (c) other information that is similar to the types of information identified in paragraph B88(a) and (b) and that is used by the entity or users of the entity’s financial statements to evaluate the entity’s financial performance or make resource allocation decisions IFRS 15.B89 Examples of categories that might be appropriate include, but are not limited to, all of the following: (a) type of good or service (for example, major product lines); (b) geographical region (for example, country or region); (c) market or type of customer (for example, government and nongovernment customers); (d) type of contract (for example, fixed-price and time-and-materials contracts; (e) contract duration (for example, short-term and long-term contracts); (f) timing of transfer of goods or services (for example, revenue from goods or services transferred to customers at a point in time and revenue from goods or services transferred over time); and (g) sales channels (for example, goods sold directly to consumers and goods sold through intermediaries). In addition, an entity shall disclose sufficient information to enable users of financial statements to understand the relationship between the disclosure of disaggregated revenue (in accordance with paragraph 114) and revenue information that is disclosed for each reportable segment, if the entity applies IFRS 8 Operating Segments. BDO Comment A Layout (International) has analysed revenue into primary geographic markets, the product type (nature of performance obligation), the type of customers, and the timing of when revenue is recognised. If the analysis by geographic area repeats (only in more detail) the numerical analysis required by IFRS 8.33(a), the related IFRS 8 disclosure requirement could be removed. 72 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 4. Revenue from contracts with customers Disaggregation of Revenue The Group has disaggregated revenue into various categories in the following table which is intended to: • depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date; and • enable users to understand the relationship with revenue segment information provided in note 8 Board Outdoor All other Year to 31 December 2025 Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Primary Geographic Markets Country A 55,212 18,930 4,732 - 78,874 Country B 30,674 10,955 2,191 - 43,820 Country C 29,095 2,555 - 3,406 35,056 Country D 7,875 2,625 - - 10,500 Other 3,344 1,743 1,841 100 7,028 _______ _______ _______ _______ _______ 126,200 36,808 8,764 3,506 175,278 _______ _______ _______ _______ _______ Product type Goods 115,858 36,808 7,755 - 160,421 Design services - - - 3,506 3,506 Extended Warranties 10,342 - 1,009 - 11,351 _______ _______ _______ _______ _______ 126,200 36,808 8,764 3,506 175,278 _______ _______ _______ _______ _______ Contract counterparties Retailers 67,073 34,920 838 - 102,831 Wholesalers 48,265 - 3,176 - 51,441 Direct to consumers (online) 10,862 1,888 4,750 - 17,500 B2B (services) - - - 3,506 3,506 _______ _______ _______ _______ _______ 126,200 36,808 8,764 3,506 175,278 _______ _______ _______ _______ _______ Timing of transfer of goods and services Point in time (delivery to customer premises including bill and hold) 90,618 24,088 6,422 - 121,128 Point in time (delivery to port of departure) 20,173 10,245 1,333 - 31,751 Point in time (delivery to port of arrival) 5,067 2,475 - - 7,542 Over time 10,342 - 1,009 3,506 14,857 _______ _______ _______ _______ _______ 126,200 36,808 8,764 3,506 175,278 _______ _______ _______ _______ _______ Revenue included above related to material rights 1,489 695 100 - 2,284 _______ _______ _______ _______ _______ 73 Note 4 Revenue from contracts with customers (continued) IFRS 15.113(a) Disclose revenue recognised from contracts with customers separately from its other sources of revenue unless those amounts are presented separately in the statement of comprehensive income in accordance with other Standards. BDO Comment A Layout (International) Group has presented this figure on the face of the Statement of Comprehensive income and therefore does not need to repeat the disclosure in the notes. IFRS 15.113(b) Disclose any impairment losses recognised (in accordance with IFRS 9) on any receivables or contract assets arising from an entity’s contracts with customers separately from impairment losses from other contracts. BDO Comment A Layout has disclosed details of impairment losses on trade receivables in note 26 as required by IFRS 7. It has also disclosed details of impairment losses on contract assets as part of its compliance with IFRS 15.118(c) overleaf. Therefore, compliance with IFRS 15.113(b) has been achieved through compliance with disclosure requirements elsewhere. 74 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 4. Revenue from contracts with customers (continued) Board Outdoor All other Year to 31 December 2024 Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Primary Geographic Markets Country A 55,464 14,974 4,496 - 74,934 Country B 31,393 7,909 2,327 - 41,629 Country C 21,722 8,326 - 3,255 33,303 Country D 7,431 2,220 - - 9,651 Other 3,882 1,540 1,503 75 7,000 _______ _______ _______ _______ _______ 119,892 34,969 8,326 3,330 166,517 _______ _______ _______ _______ _______ Product type Goods 109,889 34,969 7,331 - 152,189 Design services - - - 3,330 3,330 Extended Warranties 10,003 - 995 - 10,998 _______ _______ _______ _______ _______ 119,892 34,969 8,326 3,330 166,517 _______ _______ _______ _______ _______ Contract counterparties Retailers 63,683 33,255 2,972 - 99,910 Wholesalers 48,765 - 1,191 - 49,956 Direct to consumers (online) 7,444 1,714 4,163 - 13,321 B2B (services) - - - 3,330 3,330 _______ _______ _______ _______ _______ 119,892 34,969 8,326 3,330 166,517 _______ _______ _______ _______ _______ Timing of transfer of goods and services Point in time (delivery to customer premise including bill and holds) 102,566 20,637 7,513 - 130,716 Point in time (delivery to port of departure) 15,609 12,333 813 - 28,755 Point in time (delivery to port of arrival) 1,717 1,999 - - 3,716 Over time - - - 3,330 3,330 _______ _______ _______ _______ _______ 119,892 34,969 8,326 3,330 166,517 _______ _______ _______ _______ _______ Revenue included above related to material rights 1,636 823 75 - 2,534 _______ _______ _______ _______ _______ 75 Note 4 Revenue from contracts with customers (continued) IFRS 15.116 Disclose all of the following: (a) the opening and closing balances of receivables, contract assets and contract liabilities from contracts with customers , if not otherwise separately presented or disclosed; (b) revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period; and (c) revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods (for example, changes in transaction price ). IFRS 15.118 Provide an explanation of the significant changes in the contract asset and the contract liability balances during the reporting period. The explanation shall include qualitative and quantitative information. Examples of changes in the entity’s balances of contract assets and contract liabilities include any of the following: (a) changes due to business combinations; (b) cumulative catch -up adjustments to revenue that affect the corresponding contract asset or contract liability, including adjustments arising from a change in the measure of progress, a change in an estimate of the transaction price (including any changes in the assessment of whether an estimate of variable consideration is constrained) or a contract modification; (c) impairment of a contract asset; (d) a change in the time frame for a right to consideration to become unconditional (ie for a contract asset to be reclassified to a receivable); and (e) a change in the time frame for a performance obligation to be satisfied (ie for the recognition of revenue arising from a contract liability). BDO Comment The information required by IFRS 15.116 and 118 could (although is not required) to be presented as a reconciliation. Changes that could be significant to other entities and warrant disclosure include: interest income, contract balances recognised or de-recognised as a result of business combinations or disposals respectively, and adjustments to the amount of revenue recognised in previous periods as a result of changing the method for determining stage of completion. IFRS 15.128 Disclose all of the following: (a) the closing balances of assets recognised from the costs incurred to obtain or fulfil a contract with a customer (in accordance with paragraph 91 or 95 ), by main category of asset (for example, costs to obtain contracts with customers, pre -contract costs and setup costs); and (b) the amount of amortisation and any impairment losses recognised in the reporting period. BDO Comment IFRS 15.116(a) requires disclosure of receivables (as distinct from contract assets) arising from contracts with customers at the beginning and end of the period. A Layout (International) already discloses the balance of trade receivables in note 26 at the end of each period (and hence also the start of the current period). BDO Comment Incremental costs to obtain a contract might be presented as its own asset category, classified as current or non-current as appropriate. In A Layout’s case, the amount is not material and therefore could reasonably have been included within current assets as a prepayment. 76 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 4. Revenue from contracts with customers (continued) Contract Balances Contract Assets Contract Assets Contract Liabilities Contract Liabilities 2025 2024 2025 2024 CU'000 CU'000 CU'000 CU'000 At 1 January 600 500 (364) (169) Interest on contract liabilities (12) (10) Cumulative catch-up adjustments (50) - - - Impairment of contract assets (30) - - - Transfers in the period from contract assets to trade receivables (403) (125) - - Amounts included in contract liabilities that was recognised as revenue during the period - - 362 285 Excess of revenue recognised over cash (or rights to cash) being recognised during the period 250 225 - - Cash received in advance of performance and not recognised as revenue during the period - - (198) (80) _______ _______ _______ _______ 367 600 (213) (364) _______ _______ _______ _______ Contract assets and contract liabilities arise from the group’s small design division, which enter into contracts that can take a few years to complete, because cumulative payments received from customers at each balance sheet date do not necessarily equal the amount of revenue recognised on the contracts. The scope of one design contract (comprising a single performance objective) was changed during the period, which resulted in the cumulative catch-up adjustment of CU 50,000 being recognised in the current period, but which related to performance of the previous period. The impairment of contract assets during the period arose as a result of one customer entering liquidation prior to the group having the right to invoice for work done to date. Interest arose on the contract for which the group is paid up to 2 years in advance of delivery. [The balance of trade receivables at 1 January 2024 was CU X’000] [The amount of incremental costs to obtain a contract which have been recognised as an asset is CU 75,000 (2024 – CU 84,000) and the amount of costs recognised as an expense in the period is CU 79,000 (2024 CU 48,000). No amount has been impaired in 2025 or 2024.] 77 Note 4 Revenue from contracts with customers (continued) IFRS 15.120 Disclose the following information about remaining performance obligations: (a) the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period; and (b) an explanation of when the entity expects to recognise as revenue the amount disclosed in accordance with paragraph 120(a) , which the entity shall disclose in either of the following ways: (i) on a quantitative basis using the time bands that would be most appropriate for the duration of the remaining performance obligations; or (ii) by using qualitative information. As a practical expedient, an entity need not disclose the information in paragraph 120 for a performance obligation if either of the following conditions is met: (a) the performance obligation is part of a contract that has an original expected duration of one year or less; or (b) the entity recognises revenue from the satisfaction of the performance obligation in accordance with paragraph B16 . IFRS 15.121 An entity need not disclose the information in paragraph 120 for a performance obligation if either of the following conditions is met: (a) the performance obligation is part of a contract that has an original expected duration of one year or less; or (b) the entity recognises revenue from the satisfaction of the performance obligation in accordance with paragraph B16 IFRS 15.122 An entity shall explain qualitatively whether it is applying the practical expedient in paragraph 121 and whether any consideration from contracts with customers is not included in the transaction price and, therefore, not included in the information disclosed in accordance with paragraph 120. For example, an estimate of the transaction price would not include any estimated amounts of variable consideration that are constrained (see paragraphs 56–58). 78 Page intentionally left blank for formatting. 79 Note 4 Revenue from contracts with customers (continued) IFRS 15.120 Disclose the following information about remaining performance obligations: (c) the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period; and (d) an explanation of when the entity expects to recognise as revenue the amount disclosed in accordance with paragraph 120(a) , which the entity shall disclose in either of the following ways . (iii) on a quantitative basis using the time bands that would be most appropriate for the duration of the remaining performance obligations; or (iv) by using qualitative information. As a practical expedient, an entity need not disclose the information in paragraph 120 for a performance obligation if either of the following conditions is met: (c) the performance obligation is part of a contract that has an original expected duration of one year or less; or (d) the entity recognises revenue from the satisfaction of the performance obligation in accordance with paragraph B16 . IFRS 15.121 An entity need not disclose the information in paragraph 120 for a performance obligation if either of the following conditions is met: (c) the performance obligation is part of a contract that has an original expected duration of one year or less; or (d) the entity recognises revenue from the satisfaction of the performance obligation in accordance with paragraph B16 IFRS 15.122 An entity shall explain qualitatively whether it is applying the practical expedient in paragraph 121 and whether any consideration from contracts with customers is not included in the transaction price and, therefore, not included in the information disclosed in accordance with paragraph 120. For example, an estimate of the transaction price would not include any estimated amounts of variable consideration that are constrained (see paragraphs 56–58). 80 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 4. Revenue from contracts with customers (continued) Remaining performance Obligations The vast majority of the Group’s contracts are for the delivery of goods within the next 12 months for which the practical expedient in paragraph 121(a) of IFRS 15 applies. However, certain design contracts and contracts for the delivery of foods have been entered into for which both: • the original contractual period was greater than 12 months; and • the Group’s right to consideration does not correspond directly with the performance. In addition, sales of extended warranties for periods of greater than one year and material rights relating to discounts on future contracts do not meet these conditions. The amount of revenue that will be recognised in future periods on these contracts when those remaining performance obligations will be satisfied is analysed as follows: At 31 December 2025 2026 2027 2028-2030 Total CU'000 CU'000 CU'000 CU'000 Design contracts 2,106 2,106 - 4,212 Delivery of goods 6,240 12,595 - 18,835 Extended warranties 1,289 2,578 3,867 7,734 Material rights - - 4,500 4,500 _______ _______ _______ _______ 9,635 17,279 8,367 35,281 _______ _______ _______ _______ Variable consideration relating to volume rebates has been constrained in estimating contract revenue in order that it is highly probable that there will not be a future reversal in the amount of revenue recognised when the amount of volume rebates has been determined. Therefore, the above amounts do not include the amounts of such variable consideration that has been constrained. As at 31 December 2024, the amount of revenue to be recognised in future periods on contracts when those remaining performance obligations will be satisfied is analysed as follows: At 31 December 2024 2025 2026 2027-2029 Total CU'000 CU'000 CU'000 CU'000 Design contracts 1,564 4,503 641 6,708 Delivery of goods 7,465 11,075 - 18,540 Extended warranties 1,307 897 2,794 4,998 Material rights - - 5,210 5,210 _______ _______ _______ _______ 10,336 16,475 8,645 35,456 _______ _______ _______ _______ 81 Page intentionally left blank for formatting. 82 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 5. Other operating income Other operating income arises mainly from the investment properties the Group maintains (see note 16). Since this is not considered to be part of the main revenue generating activities, the Group presents this income separately from revenue. 2025 2024 CU'000 CU'000 Rental income from investment property 1,190 1,120 Other 93 83 _______ _______ 1,283 1,203 _______ _______ 83 Note 6 Expenses by nature IAS 1.104 If expenses are classified by function, disclose additional information of expenses by nature. BDO Comment IAS 1.104 does not require a full analysis of expense by their nature. The level of detail included in note 6 on the adjacent page is greater than is strictly required. IAS 1.97 Separate disclose of material items of expense. IAS 20.39(b) Disclose the nature and extent of government grants separately from other forms of government assistance. IAS 16.74(d) Disclose compensation relating to items of property, plant and equipment that were impaired, lost, or given up. IAS 2.36(d) Disclose inventories recognised as an expense. IAS 2.36(e) Disclose the write-down of any inventories to fair value less costs to sell. IAS 36.126(a) Disclose impairment losses on non-financial assets, and the line item(s) within which they are included. IAS 21.52(c) Disclose foreign exchange differences (except from financial instruments measured at fair value through profit or loss). IAS 38.126 Disclose research and development costs. IAS 40.76(d) Disclose net gains/losses on investment properties at fair value. IFRS 7.20(e) Disclose impairment losses on financial assets by class. IAS 38.118(d) IAS 1.104 Disclose amortisation of intangible assets, and the line item(s) within which they are included. IAS 1.104 Disclose depreciation of property, plant and equipment. IAS 1.104 Disclose employee benefit expenses. 84 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 6. Expenses by nature 2025 2024 CU'000 CU'000 Changes in inventories of finished goods and work in progress 4,690 3,927 Write-down of inventory to net realisable value 293 476 Raw materials and consumables used 104,263 97,896 Employee benefit expenses (note 7) 32,263 36,632 Depreciation of property, plant and equipment 9,753 9,165 Impairment of property, plant and equipment 1,000 1,000 Amortisation of intangible assets1 410 410 Goodwill impairment charge2 100 500 Amortisation of right-of-use assets3 Research and development costs 2,043 2,671 2,133 1,547 Foreign exchange (gains) (1,744) (984) (Profit)/loss on disposal of property, plant and equipment (50) 30 Fair value adjustments of investment property 2,637 1,228 Direct operating expenses arising from investment property 900 840 Transportation expenses 2,662 2,265 Advertising expenses 3,695 1,073 Other costs 515 1,055 1 * Amortisation charges on the group's intangible assets are recognised in the administrative expenses line item in the [statement of profit or loss and other comprehensive income / statement of profit or loss]. 2 Goodwill impairment charges have been recognised in the other expenses line item in the [statement of profit or loss and other comprehensive income / statement of profit or loss]. 3 Amortisation charges on the group's right-of-use assets are recognised in cost of sales of CU1,842,000 (2024 – CU1,921,000) and administrative expenses line item of CU201,000 (2024– CU212,000) in the [statement of profit or loss and other comprehensive income / statement of profit or loss]. 85 Note 7 Employee benefit expenses Employee benefit expenses IAS 19.25 IAS 19 does not require specific disclosures about short-term employee benefits. BDO Comment However the general requirements of IAS 1.97 require separate disclose of material items of expense. Materiality can be based on either nature of the expense or amount. Therefore, A layout has disaggregated its total employee benefit expense into the various categories of IAS 19, including short-term employee benefits. IFRS 2.51(a) Disclose total expense from share-based payment transactions. IAS 19.53 Disclose total expense for defined contribution plans. Key management personnel compensation IAS 24.17 Disclose total key management personnel compensation in total. Disclose total key management personnel compensation disaggregated into the following categories: - Short-term employee benefits - Post-employment benefits - Other long-term benefits - Termination benefits - Share-based payment. 86 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 7. Employee benefit expenses 2025 2024 CU'000 CU'000 Employee benefit expenses (including directors) comprise: Wages and salaries 21,960 25,421 Short-term non-monetary benefits 1,171 1,356 Defined contribution pension cost 2,050 2,373 Defined benefit scheme cost (note 36) 3,132 2,283 Other long-term employee benefits 144 792 Share-based payment expense (note 37) 1,464 1,695 Social security contributions and similar taxes 2,342 2,712 _______ _______ 32,263 36,632 _______ _______ Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the company listed on page [X], and the Financial Controller of the company. 2025 2024 CU'000 CU'000 Salary 850 750 Other long-term benefits 3,228 - Defined benefit scheme costs 1,953 2,147 Compensations for loss of office 10 10 Share based payment expense 1,464 1,695 _______ _______ 7,505 4,602 _______ _______ 87 Note 8 Segment information IFRS 8.20-21 Disclose information that enables the evaluation of the nature and financial effects of the business activities. IFRS 8.22(a) Disclose factors used to identify the entity's reportable segments. IFRS 8.22(b) Disclose the types of products and services that generate each reportable segment’s revenues. IFRS 8.16 Disclose the segments included in ‘all other segments’. IFRS 8.27 Disclose explanations of the measurement of each item within each reportable segment, including: • Basis of accounting for any transactions between reportable segments • Nature of differences in the above • Nature in changes of the above • Nature of asymmetrical allocations of the above (e.g. depreciation expense across segments, but the associated asset within a single segment). 88 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 8. Segment information Description of the types of products and services from which each reportable segment derives its revenues The Group has three main divisions: (a) Toys division - This division is involved in the manufacture and distribution of children's toys and accounts for the largest proportion of the Group's business, generating 71% (2024: 67%) of its external revenues. (b) Board games division - This division is involved in the manufacture and distribution of board games and similar products and contributed 21% (2024: 20%) of the Group's external revenue and has seen steady growth over the past ten years. (c) Outdoor games division - This division is involved in the manufacture and distribution of outdoor games and sports equipment and is the smallest of the Group's three divisions contributing 5% (2024: 5%) to the Group's external revenues. Although the ‘outdoor games division’ does not meet the quantitative thresholds to be a reportable segment, management has concluded that this segment should be reported separately, as it is closely monitored by the strategic chief operating decision-maker as a potential growth business segment and is expected to materially contribute to the Group's revenue in future. All other segments include the ‘sports equipment’ and ‘scale models’ divisions which, contribute a relatively small amount of external revenue to the Group (1% each (2024: 1%)). Also included in other segments in 2024 is the Group's Abstract Art division that has now been discontinued. In May 2024, the Group completed the disposal its Abstract Art division through the disposal of Klimt Limited, a company involved in the manufacture and sales of posters. This division contributed 1% (2024: 6%) towards the Group's external revenues. Factors that management used to identify the Group's reportable segments The Group's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision maker has been identified as the management team including the Chief Executive Officer, Chief Operating Officer and the Finance Director. Measurement of operating segment profit or loss, assets and liabilities The Group evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with IFRS but excluding non-recurring losses, such as goodwill impairment, and the effects of share-based payments. Inter-segment sales are priced along the same lines as sales to external customers, with an appropriate discount being applied to encourage use of group resources at a rate acceptable to local tax authorities. This policy was applied consistently throughout the current and prior period. Segment assets exclude tax assets and assets used primarily for corporate purposes. Segment liabilities exclude tax liabilities and defined benefit liabilities. Loans and borrowings are allocated to the segments based on relevant factors (e.g. funding requirements). Details are provided in the reconciliation from segment assets and liabilities to the group position. 89 Note 8 Segment information (continued) IFRS 8.23 Disclose profit or loss for each reportable segment. IFRS 8.23(a)-(i) Specific profit or loss line items and sub-totals to be presented. BDO Comment In July 2024, the IFRS Interpretations Committee (the Committee) published an agenda decision in response to a number of questions asked about how IFRS 8.23 should be applied in practice. IFRS 8.23 requires entities to disclose specific income and expenses included in the segment profit amount provided to the Chief Operating Decision Maker (CODM), irrespective of whether these items are separately presented to the CODM. ‘Material items of income and expense’ to be disclosed does not only mean those items that are qualitatively material because they are unusual/and or non-recurring in nature; material items mean any items that are material, regardless of the reason for the assessment. Determining the appropriate level of detail in preparing disclosures relating to reportable segments requires judgement, considering the entity’s specific circumstances, the core principles of IFRS 8 and materiality principles outlined in IAS 1 Presentation of Financial Statements. The agenda decision clarifies that entities are not required to disclose every item of income and expense by reportable segment as presented in the statement of profit or loss or disclosed in the notes. This will be especially relevant for entities that have material items of income or expense included within a measure of segment profit reported to the CODM but are not currently disclosed by segment. Entities should review their financial statements and notes against the materiality and aggregation criteria in IAS 1 to determine whether additional segmental disclosure is needed, which is highly judgemental and will vary from entity to entity. Entities should also consider whether enforcers and/or regulators in their jurisdiction have issued any views concerning the effect of the agenda decision. Consequent to this agenda decision, A Layout Group evaluated and concluded that the ‘Cost of Sales’ line item is material and therefore, appropriate for disclosure in segment reporting. IFRS 8.f28(a)-(b) Disclose a reconciliation between the total of the reportable segments' and the statement of profit or loss and other comprehensive income, for: (a) Revenue (b) Profit or loss before tax expense/(income) and discontinued operations (if an entity allocates these items to reportable segments, the reconciliation can be to profit or loss after these items). Any material reconciling items must be: (i) Separately identified (ii) Described. 90 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 8. Segment information (continued) 2025 Board Outdoor All other Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Revenue Total revenue 140,222 36,808 8,764 6,757 192,551 Inter-segmental revenue (14,022) - - - (14,022) _______ _______ _______ _______ _______ Total revenue from external customers 126,200 36,808 8,764 6,757 178,529 Discontinued operations - - - (3,251) (3,251) _______ _______ _______ _______ _______ Group's revenue per consolidated statement of comprehensive income 126,200 36,808 8,764 3,506 175,278 _______ _______ _______ _______ _______ Cost of sales (98,530) (28,738) (6,842) (2,737) (136,847) Depreciation (6,570) (2,041) (460) (482) (9,553) Amortisation (321) (66) (16) (7) (410) _______ _______ _______ _______ _______ Segment profit 9,530 2,758 694 339 13,321 _______ _______ _______ _______ Impairment of assets (1,500) Share-based payments (1,464) Share of post-tax profits of equity accounted associates 660 Share of post-tax profits of equity accounted joint ventures 300 Finance expense (584) Finance income 825 Segment profit included in discontinued operations (374) _______ Group profit before tax and discontinued operations 11,184 _______ 91 Note 8 Segment information (continued) IFRS 8.23 Disclose profit or loss for each reportable segment. IFRS 8.23(a)-(i) Specific profit or loss line items and sub-totals to be presented. IFRS 8.28(a)-(b) Disclose a reconciliation between the total of the reportable segments' and the statement of profit or loss and other comprehensive income, for: (a) Revenue (b) Profit or loss before tax expense/(income) and discontinued operations (if an entity allocates these items to reportable segments, the reconciliation can be to profit or loss after these items) (c) Other material amounts. Any material reconciling items must be: (i) Separately identified (ii) Described. 92 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 8. Segment information (continued) 2024 Board Outdoor All other Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Revenue Total revenue 133,213 34,969 8,326 14,782 191,290 Inter-segmental revenue (13,321) - - - (13,321) _______ _______ _______ _______ _______ Total revenue from external customers 119,892 34,969 8,326 14,782 177,969 Discontinued operations - - - (11,452) (11,452) _______ _______ _______ _______ _______ Group's revenue per consolidated statement of comprehensive income 119,892 34,969 8,326 3,330 166,517 _______ _______ _______ _______ _______ Cost of sales (94,617) (27,597) (6,571) (2,628) (131,413) Depreciation (6,250) (900) (1,400) (315) (8,865) Amortisation (150) (150) (50) (60) (410) _______ _______ _______ _______ _______ Segment profit 7,767 2,091 573 522 10,953 _______ _______ _______ _______ Impairment of assets (1,500) Share-based payments (1,695) Share of post-tax profits of equity accounted associates 600 Share of post-tax profits of equity accounted joint ventures 331 Finance expense (842) Finance income 1,491 Segment loss included in discontinued operations 548 _______ Group profit before tax and discontinued operations 9,886 _______ 93 Note 8 Segment information (continued) IFRS 8.24(b) Disclose non-current assets additions (except for financial instruments, deferred tax assets, net defined benefit assets and rights arising under insurance contracts). IFRS 8.23 If such amounts are regularly provided to the chief operating decision maker, disclose total assets and liabilities for each reportable segment. IFRS 8.24(a) Disclose investment in associates and joint ventures. IFRS 8.28(c)-(d) Disclose a reconciliation between the total of the reportable segments' and the statement of financial position, for: (a) Total assets (b) Total liabilities (c) Other material amounts. Any material reconciling items must be: (i) Separately identified (ii) Described. 94 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 8. Segment information (continued) 2025 Board Outdoor All other Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Additions to non-current assets 16,552 7,448 2,359 682 27,041 _______ _______ _______ _______ _______ Reportable segment assets 82,299 26,167 5,930 5,467 119,863 _______ _______ _______ _______ Investment in associates 537 537 Investment in joint ventures Fair value through other comprehensive income financial assets 3,573 Derivative financial assets 2,939 Tax assets 211 Head office property 3,500 _______ Total group assets 130,623 _______ Reportable segment liabilities 13,428 5,190 1,414 883 20,915 _______ _______ _______ _______ Loans and borrowings (excluding leases and overdrafts) 29,393 Defined benefit pension scheme 9,706 Derivative financial liabilities 112 Deferred tax liabilities 1,451 Employee benefits 1,563 Other unallocated and central liabilities 76 _______ Total group liabilities 63,216 _______ 95 Note 8 Segment information (continued) IFRS 8.24(b) Disclose non-current assets additions (except for financial instruments, deferred tax assets, net defined benefit assets and rights arising under insurance contracts). IFRS 8.23 If such amounts are regularly provided to the chief operating decision maker, disclose total assets and liabilities for each reportable segment. IFRS 8.24(a) Disclose investment in associates and joint ventures. IFRS 8.28(c)-(d) Disclose a reconciliation between the total of the reportable segments' and the statement of financial position, for: (a) Total assets (b) Total liabilities (c) Other material amounts. Any material reconciling items must be: (i) Separately identified (ii) Described. 96 A Layout (International) Group Ltd Notes forming part of the consolidated financial statements For the year ended 31 December 2025 (continued) 8. Segment information (continued) 2024 Board Outdoor All other Toys games games segments Total CU'000 CU'000 CU'000 CU'000 CU'000 Additions to non-current assets 5,197 2,337 797 297 8,628 _______ _______ _______ _______ _______ Reportable segment assets 54,463 22,712 10,933 21,514 109,622 _______ _______ _______ _______ Investment in associates 302 302 Investment in joint ventures Fair value through OCI financial assets 4,083 Derivative financial assets 2,217 Deferred tax assets 365 Head office property 3,750 _______ Total group assets 120,339 _______ Reportable segment liabilities 13,490 5,527 1,552 819 21,388 _______ _______ _______ _______ Loans and borrowings (excluding leases and overdrafts) 24,534 Defined benefit pension scheme 7,552 Derivative financial liabilities 104 Deferred tax liabilities 1,706 Employee benefits 929 Other unallocated and central liabilities 94 _______ Total group liabilities 56,307 _______ 97 Note 8 Segment information (continued) IFRS 8.33(a)-(b) Disclose the following geographical information (unless not available and the cost to develop is excessive, in which case this fact must be disclosed): (a) Revenues for external customers (b) Non -current assets (expect for financial instruments, deferred tax assets, post -employment benefit assets, and rights arising under insurance contracts). The geographical information is to be disaggregated by: (i) The entity's country of domicile (ii) Individually material foreign countries (iii) All other foreign countries in total. IFRS 8.34 Disclose for single external customer(s) that account for more than 10% of an entity's revenues: (a) That fact, the (b) Total customer revenue. A group of customers under common control (including government control) are considered a single customer.