Velcan Holdings Annual Results 2025

PRESS RELEASE

Luxembourg, 4 May 2026

VELCAN HOLDINGS: ANNUAL RESULTS 2025

POSITIVE NET STATUTORY INCOME, STABLE GROUP PORTFOLIO VALUE

Account and report new format :the Company is a small-sized undertaking within the meaning of Articles 35 and 47 of the Law of 19 December 2002 on annual accounts. As such, it is exempt from preparing a management report under the aforementioned Law. In accordance with Article 1711-4 (3), the Company is also exempt from preparing consolidated financial statements. With a view to simplification and reducing administrative burden and associated costs, a simpler and more concise report than the one previously prepared has been adopted. Regarding the consolidated data, only a simplified consolidated balance sheet has been prepared, as of 31/12/2025. The Company will not prepare anymore half year accounts, with the same view of simplification and cost reduction.

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The company continued to manage its diversified securities portfolio in 2025. The allocation strategy of the financial assets proved profitable in 2025 resulting in an increase of the NAV, standing at EUR 139.3m as of the 31/12/2025 (+1% as compared to 2024).

Key risk factors included persistent U.S. trade tensions with major global partners, notably China and India, as well as increasing protectionist measures and export controls, particularly in strategic sectors such as technology and critical materials, and permanent geopolitical tensions between the USA and China and their proxies amongst others. Policy developments during the year, including the expansion of tariff frameworks in the United States, contributed to periodic market dislocations and heightened uncertainty.

Despite this environment, global equity markets demonstrated overall resilience, supported by continued earnings growth and strong investor interest in high-growth sectors, particularly those linked to artificial intelligence. However, this apparent stability masked significant intra-year volatility, with sharp market reactions to geopolitical events, monetary policy signals, and trade-related announcements. Gold continued to perform strongly. The Group chose to significantly reduce and ultimately exit its exposure to gold and silver-related equities during H1 2025.

In China, economic recovery remained uneven throughout 2025. Authorities implemented targeted stimulus measures aimed at supporting liquidity, consumption, and strategic sectors such as technology and artificial intelligence. Nevertheless, structural challenges persisted, particularly in the real estate sector and local government debt, which continued to weigh on growth. China still suffers from a mild deflation which is a negative for equity investments. The group has invested in the CSI 300 China index. Trade tensions with the United States remained a key overhang affecting investor sentiment and capital flows. Monetary policy trends diverged across major economies.

Currency markets experienced significant volatility in 2025. The U.S. dollar weakened against several major currencies over the year, reflecting changing interest rate differentials and shifting investor sentiment. The Japanese Yen showed periods of strengthening against the U.S. dollar but remained volatile and depreciated against the Euro over the year.

Against this backdrop, the Group maintained a diversified allocation strategy, with significant exposure to cash and cash equivalents, sovereign bonds, and commodities-related equities (in H1 for the latter) balanced with mostly Asian equities (Chinese, Japanese, Filipino, Malaysian and Indonesian) and German automotive manufacturing sector equities.

As of 31/12/2025, in percentage of the net assets, the portfolio is constituted of cash and short-term Western sovereign bonds (41%) and equity-long positions (47%). The balance is composed of Brazil and Argentine Sovereign bonds, equity short positions, BRL and INR Money Market funds, secured lending and private equity.

As of the end of the year 2025, the Group financial assets were exposed mainly to the Japanese Yen, HK Dollar, EURO, and US Dollar.

The Rodeio Bonito generated 44,324 MWh during 2025, against 52,190 MWh during 2024. The turnover from sales of electricity amounted to EUR 3.0m or BRL 19.1 m. It was up by 3% when expressed in Euros and up by 11% when expressed in BRL relative to 2024 (EUR 3.0 m or BRL 17.1 m for 2024). In terms of rainfall and water discharge, 2025 was again very low and worse than 2024, significantly below the historical values. The whole country has experimented the same phenomenon for several years now.

The Group will continue to pursue a long-term, diversified, and global investment strategy. We remain committed to identifying and capitalizing on price opportunities within the securities markets as they arise, across all asset classes, listed or private, ensuring that the portfolio is well-positioned to benefit from market dislocations while maintaining its fundamental resilience.

Share buybacks

They were continued by Velcan Holdings during 2025 to provide liquidity to shareholders wishing to sell their shares. The share buyback program launched by the Board of Directors on 13 January 2025 ended on 31 December 2025 by expiry of its duration. During 2025, a total of 73,078 shares were bought back, for a total price of Eur 1,289,756.96. As during the previous years, the shares were bought back in view of their cancellation or to cover for new grants of free shares. During the year, 27,834 shares were delivered as free shares to employees and consultants of the Group. As of 31st December 2025, Velcan Holdings held 822,953 own shares representing 15.25% of its share capital. No program was initiated for 2026 as of the date of this report.

The full annual report 2025 is available at:
https://www.velcan.lu/investors/reports-accounts/

SUMMARY AUDITED STATUTORY FINANCIAL STATEMENTS (Lux GAAP)

Balance Sheet

Income Statement (EUR ’000)

SUMMARY CONSOLIDATED BALANCE SHEET (unaudited)

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Investor Relations Contact        investor@velcan.lu

About Velcan:

Velcan Holdings is an investment holding company founded in 2005, managing a global portfolio of participations and investments.

The company was launched more than 15 years ago by its reference shareholder LHP SA, owned by Velcan Holdings’ management team.

Velcan Holdings is listed on the unregulated Euro MTF Stock Market in Luxembourg (Ticker VLCN/ISIN FR0010245803). Velcan Holdings never performed any Public Offer as understood under Directive 2003/71/CE of the European Parliament and Council.

Disclaimer

This press release contains prospective information about the potential of the projects in progress and/or of the projects of which the development has begun. This information constitutes objectives attached to projects and shall not be construed as direct or indirect net income forecast of the concerned year. Reader’s attention is also drawn on the fact that the performance of these objectives depends on future circumstances and that it could be affected and/or delayed by risks, known or unknown, uncertainties, and various factors of any nature, notably related to economic, commercial or regulatory conjuncture, which occurrence could be likely to have a negative impact on future activity and performances of the Group.

This announcement does not constitute a public offering (“offre au public”) nor an invitation to the public or to any qualified investor in connection with any offering. This announcement is not an offer of securities in the United States of America or in any other jurisdiction/country.

¹ Almost exclusively constituted of the Rodeio Bonito Hydro Power Plant asset

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• Velcan_Holdings_Results_2025

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