Ann: US Tariff Increase, page-2

it just gets worse in regards to China and also KBC but no surprise

Will they wait ( can they especially as they have lost major client) and hope for a reduction in tariff before importing ? Not quick enough off the mark over last 2-3 months to ensure stock or unable to with reduced cash?

US Tariff IncreaseYowie Group Ltd (ASX: YOW) (the “Company” or “Yowie”) provides an update on its earlierannouncement on 7 April 2025 regarding the impact of US Tariffs, noting that overnight the USGovernment has further increased the tariffs on Chinese goods entering the US to 145%.

As previously advised, Yowie manufactures its US distributed product in the US, however, itsources inputs for that product from around the world. The two material inputs are chocolateand toys. The latter Yowie sources from China, at a budgeted cost of US$2.5 million a year.The revised tariff rate has a likely incremental impact on Yowie’s cost base of US$3.6 millionp.a. (A$5.8 million p.a.), bringing the total cost of toys to US$6.1 million p.a.

Yowie currently holds approximately US$0.85 million in Chinese made toy inventory in China oren route to USA which would result in an unbudgeted incremental import cost of US$1.2million (A$2.0 million) based on the increased tariff.

Keybridge Loan
Yowie previously announced on 10 February 2025 that it called in its loan facility withKeybridge Capital Limited (in Administration) (“Keybridge”). Further, Yowie recently advisedthat WAM Active Limited (“WAM”) were proposing to fund Keybridge, via a related partyloan arrangement, to enable the payment of Keybridge creditors. Yowie now understandsthat the purported funding proposal has not been approved by the WAM Active Limitedboard and, accordingly, is not available to Keybridge (or, as a result, Yowie) to rely upon.

Yowie will continue to monitor the situation and will update shareholders as furtherinformation becomes available.

This announcement has been authorised for release by the Managing Director.