AS Virsi A : VIRŠI-A updates its long-term development plan

VIRŠI-A
Company Announcement AS VIRŠI-A updates its long-term development plan

With the Companyfocusing on increasing shareholder value in the long term, energy commodities trader and convenience store network Virši (AS VIRŠI-A and related group companies) introduces its strategic development goals for 2026, which will form the Company's key focus during the next three years.

Updates in strategic goals have been made taking into account the current market conditions, the Company's development prospects and its planned investments in the development of alternative fuels. The strategic plan of Virši in the next few years envisages to continue further expansion of the service station network, as well as the implementation of various sustainability-related projects in the Latvian transport sector. Also, the Company will purposefully strengthen its position in the energy segment, providing its customer base with new products.

"The Company's renewed strategic plan and goals include the reasonable ambition to become a market leader in key business segments by the end of 2026. In order to achieve this, we will continue to develop and attract the talent of employees, offer various sustainable solutions in the transport segment, as well as dynamic increase in market shares by significantly expanding the sales network. We will also pay significant attention to the further development of the energy segment, as we see significant potential in the integration of this segment into our existing product offering to customers," explains Jānis Vība, Chairman of the Board of Virši.

The 2026 development targets include an EBITDA target of EUR 20.3 mil., as well as net profit excluding financial instrument impact of EUR 12.4 mil. In addition, by the end of 2026, Virši plans to open more than 90 service stations (by the end of 2024 - 80 service stations).

	2020	2022	2026
EBITDA (EUR MIL.)	7.8	12.5	20.3
Gross profit (EUR MIL.)	4.2	10.3 (without financial instrument 7.2)	12.4 (without financial instrument 12.7)
Number of service stations	63	70	> 90
#1 in alternative fuels	CNG / Electricity	CNG / Electricity	CNG / LNG / Biomethane / Electricity / H2
Gross profit of non-fuel segments	41%	44%	> 55%
Business diversification	FUEL / STORE	FUEL / STORE / ENERGY	FUEL / STORE / ENERGY
Employer	TOP 50	TOP 50	TOP 10

In order to achieve the targets set for 2026, as well as taking into account the geopolitical situation and economic uncertainty, the Company has made adjustments to the long-term plan announced in 2021 for 2024. The updated EBITDA target for 2024 is set at EUR 14.4 mil., 5% less than earlier, while the net profit forecast for 2024 is lowered to EUR 6.7 mil.(previously EUR 9,4 mil.). The changes relate to projected adjustments to investment periods, volumes as well as interest rate increases in 2023 and beyond, as projected by the European Central Bank. The remaining targets set for 2024 remain unchanged. Please note that with the change in the strategy period the 2024 targets will no longer be updated.

The shares of AS VIRŠI-A are admitted to trading on Nasdaq Baltic First North Market.
The certified adviser for AS VIRŠI-A is Law Office Eversheds Sutherland Bitāns.
Virši is a rapidly growing energy commodities trader and convenience store network with 28 years of experience. Currently there are 72 service stations in the Virši network and these employ over 760 employees across all of Latvia. On November 11, 2021, AS VIRŠI-A shares were admitted to trading on the alternative market First North of Nasdaq Riga stock exchange.

Contact details:
AS VIRŠI-A
Undīne Priekule
E-mail: [e-mail]
Telephone: [phone]

Certified adviser:
ZAB Eversheds Sutherland Bitāns SIA
Justīne Ignatavičute
E-mail: [e-mail]
Telephone: [phone]