ANY Biztonsági Nyomda : Annual Report for the year 2023 of ANY Group and ANY Security Printing Company Plc. with independent auditors reports

Annual report

2023

Dear Shareholders,

We can inform you that the year 2023 was an outstanding success in the life of the Printing Company. On the following pages you can see this in detail, illustrated with key figures. We would like to thank all the employees of the Group in Budapest, Gyomaendrőd, Pásztó and beyond the borders of Hungary.

Last year, more than half of the Printing Company's turnover came from exports. The recognition of our products abroad is due to our innovative solutions. A quiet jubilee is also worth celebrating. 25 years ago, ANY's Document Security Laboratory was established. Excep- tionally, and primarily, this field is not staffed by printers, but by sci- entists, including some with a doctorate. They carry out important research and create successful products as well. Improvements in recent years resulted in 9 active patents. Security graphics for documents are also produced in close cooperation with the colleagues in the Laboratory. The security inks are used in countries on five continents by printers, border control organisations, government agencies and other authorities. These include special, unique security ink solutions such as the world's only penta-fluorescent ink. Last year, the Laboratory produced more than 4 tonnes of inks, which can be used to produce thousands of tonnes of security forms and documents, as these security inks are used in small quantities for printing or personalising and stamping documents. More than 3 tonnes of security fibres, shiny dots and pigments were exported. These additives are used by paper mills to produce security paper to make their products unique and difficult to counterfeit. We also produce special ink and toner cartridges that can be used in digital security printers. The special properties of products personalised with these printers (e.g. Hungarian vehicle registration certificates) are made visible and identifiable by special control devices.

Our company is present at the most important indutry events and exhibitions and is an essential player in the security printing indust- ry. In our challenging world, security is becoming more and more important in all areas. Our research and development unit, the ANY Document Security Laboratory, has been providing permanent support for this for 25 years now.

Budapest, 30 April 2024

Dr. Ákos Erdős

Chairman of the Board

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SALES REVENUE OVER HUF 55 BILLION

outsandingexport performance

Net sales of ANY PLC for 2023 amounted to HUF 55.5 billion which is higher by HUF 12.3 billion (28%) than in the previous year. The year 2023 was outstanding for the Company, especially in terms of export activities. For the first time in the company's 173-year history, the value of exports exceeded the domestic sales, representing a ratio of 55%. The projects implemented will further strengthen the market position and contribute to achieving global security.

Export sales includes the direct, joint and subsidiary export activities of ANY Security Printing Company PLC. Export sales amounted to HUF 30,293 million as at December 31, 2023, which was HUF 14,211 million higher compared to a year earlier, representing 55% export sales ratio.

2018
2019
2020
2021
2022
2023
0	5 000	10 000	15 000	20 000	25 000	30 000	35 000	40 000	45 000	50 000	55 000
	Net sales		Export sales	All amounts in HUF thousands unless otherwise indicated.
			xportárbevétel

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A NEW ERA IN PASSPORT PRODUCTION

technological development and increasing number of projects worldwide

The breakdown of the net sales by segment

Security products and solutions Card production and personalization

Form production and personalization Traditional printing products

Other

4% 2%

52%

20%

22%

Expanding portfolio to meet market needs

We deliver complex solutions, complete document issuing systems, from biometric data collection to product personalisation and document verification. Our hybrid solutions have been introduced, we combine the physical product with digital security elements and verification.

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HUF 298 earnings per share

Operating income came to HUF 6,402 million, an increase of HUF 2,816 million compared to the previous period.

Gross profit totalled HUF 17,684 million, which means a 32% gross margin. General (SG&A) expenses amounted to HUF 10,248 million in Q1-Q4 2023, which equals to 18% of net sales. Material expenses amounted to HUF 34,151 million, higher by HUF 5,951 million (21%) in the current period due to increased raw material prices and due to services used and consignment services connected to export projects.

Personnel expenses totalled HUF 12,717 million, which is HUF 2,977 million (31%) higher than in the base period, due to the increase in staffing levels, the wage increase implemented and to the achievement based salaries connected to higher turnover and its contributions.

EBITDA amounted to HUF 8,775 million due to the change in operating income and deprecia- tion, which represents an increase of HUF 3,142 million compared to previous period's EBITDA. Therefore EBITDA margin is 16%.

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Bodies and management

BOARD OF DIRECTORS

Dr. Ákos Erdős Chairman of Board of Directors

Gábor Zsámboki Deputy Chairman of Board of Directors Tamás Erdős

Robert Elton Brooker III.

Dr. Gábor Kepecs

Erwin Fidelis Reisch

SUPERVISORY BOARD

Dr. István Stumpf Chairman of Supervisory Board

Dr. Istvánné Gömöri Deputy Chairman of Supervisory Board Ferenc Berkesi

Dr. Imre Repa

Katalin Hegedűs

László Hanzsek

Gábor Kun

MANAGEMENT

Gábor Zsámboki Chief Executive Officer Zoltán Fejes Chief Sales Officer

Dr. István Ignácz Chief Security Officer

Balázs Megyeri Chief Financial Officer

Tamás Karakó Chief Research and Development Officer Gábor Péter Chief Information Officer

Nikoletta Sajó Chief Operating Officer

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ANY GROUP

Main financial data and indicators (IFRS consolidated)

Name	FY 2022 in HUF millions	FY 2023 in HUF millions
Financial situation
Non-current assets	14,497	14,158
Total assets	34,128	41,478
Shareholder's equity	10,595	12,917
Main categories of results
Net sales	43,180	55,475
EBITDA	5,633	8,775
Profit after tax	2,244	4,267
Main indicators
Return on sales (ROS %)	5.2%	7.7%
Return on equity (ROE) %	21.2%	33.0%
Earnings per share (EPS) HUF	156	298

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	ANY SECURITY PRINTING COMPANY
	PUBLIC LIMITED COMPANY BY SHARES
	Consolidated Financial Statements
	for the year ended December 31, 2023
TABLE OF CONTENT
ANY Security Printing Company Public Limited Company by Shares	8
Consolidated Financial Statements	10
Consolidated Statement of Changes in Shareholders' Equity as at December 31, 2022 and December 31, 2021	12
Consolidated Statement of Cash-flow as at December 31, 2023 and December 31, 2022	13
Supplementary Notes to the Consolidated Financial Statements Dec. 31, 2023	14
1	General	14
2	Significant accounting policies	16
Basis of preparation	16
Basis of consolidation	16
Cash and cash equivalents	16
Consolidated statement of cash flows	16
Inventory	17
Property, plant and equipment (PP&E)	17
Right of use assets	17
Lease liabilities (as Lessee)	17
Intangible assets	18
Goodwill	18
Financial instruments	18
Amortised cost	19
Debt instruments measured FVTOCI	19
Equity instrument measured FVTOCI	19
Debt instruments measured FVTPL	19
Fair value measurement	19
Impairment of financial assets	19
De-recognition of financial assets	20
Taxation	20
Treasury shares	20
Interest revenue	22
Provisions	22
Government grants	22
Segment reporting	22
Earnings per share	22
Foreign currencies	23
The effect of adopting new and revised International Financial Reporting Standards effective from 1 January 2023. .	23
New and amended IFRS Accounting Standards that are effective for the current year	23
New and revised IFRS Accounting Standards in issue and adopted by the EU but not yet effective	23
New and revised IFRS Accounting Standards in issue but not adopted by the EU	23
Critical accounting judgements and estimates by applying the accounting policy	24
Critical assumptions by applying the accounting policy	24
Uncertainties in the estimates	25
3	Cash and bank	25
4	Accounts receivables	25
5	Inventories	26
6  Other current assets and prepayments	26
7  Property, Plant and Equipment	27
8  Right of use assets	28
9	Goodwill	28
Cost	29
Accumulated impairment losses	29
10	Intangibles	30

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11  Contracted liabilities, other payables tax liabilities, government grants and accruals	31
Support received	31
12  Short term and long term loans	32
13	Share capital	32
14	Treasury shares	32
15  Retained earnings, non-controlling interest	33
16	Net sales	33
17	Other expenses, net	34
18  Interest income / expenditure	35
19  Cost of sales and selling general and administration costs	35
20	Taxation	35
21  Other comprehensive income for the year	37
22	Earnings per share	37
23  Contingent liabilities and provisions	37
24  Short term and long term part of lease liabilities	37
25	Related party transactions	38
26  Remuneration of the members of the Supervisory Board and the Board of Directors	39
27	Risk management	40
Foreign currency risk	40
Interest rate risk	41
Liquidity risk	41
Credit risk	41
28  Significant events after the reporting period	42
Decisions of the 8th March 2024 Board of Directors' meeting	42
ANY Security Printing Company Public Limited Company by Shares	43
Consolidated business report	43
for the year ended 31 December, 2023	43
General information on the Group	44
Subsidiaries	44
Analysis of the Group's performance in FY 2023	44
Income statement analysis	44
Balance sheet analysis	45
Risk management	46
Supplementary information for the business report of ANY Group	46
The Company's employment policy	46
Environment protection	46
Research and development	47
Significant events after the reporting period	47
Treasury shares in FY2023	47
Competence, election and removal of corporate officers	47
Modification of the Statutes	47
Structure of shareholders over 5% share	48
STATEMENT OF RESPONSIBILITY	49

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CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

Consolidated Statement of Financial Position as at December 31, 2023 and December 31, 2022

In HUF thousands:	Notes	December 31,	December 31,
2023	2022
Current assets
Cash and bank	3	6,056,275	6,393,330
Accounts receivables	4	12,674,854	5,607,294
Inventories	5	6,625,554	6,487,058
Other current assets and prepayments (without current tax receivable)	6	1,826,006	982,797
Current tax receivables	6	137,847	160,315
Total current assets		27,320,536	19,630,794
Non-current assets
Property, plant and equipment	7	12,839,007	13,083,997
Right of use	8	489,831	578,557
Goodwill	9	639,352	569,823
Intangibles	10	171,420	247,615
Other assets		18,223	16,914
Total non-current assets		14,157,833	14,496,906
Total assets		41,478,369	34,127,700
Current liabilities
Trade accounts payables	27	5,908,538	4,326,200
Short term part of lease liabilities	24	134,219	287,807
Contracted liabilities	11	2,644,678	7,411,258
Other payables and accruals (without current tax liabilities)	11	4,614,676	2,498,326
Current tax liabilities	11	1,687,520	1,142,542
Short term loans	12	8,474,190	2,540,520
Total current liabilities		23,463,821	18,206,653
Long term liabilities
Deferred tax liability	20	941,763	839,984
Long term part of lease liabilities	24	104,886	112,396
Long term loans	12	4,049,259	4,357,787
Other long term liabilities		1,978	15,444
Total long term liabilities		5,097,886	5,325,611
Shareholders' equity
Share capital	13	1,449,876	1,449,876
Capital reserve		250,686	250,686
Retained earnings	15	9,845,826	7,888,003
Treasury shares	14	(455,048)	(455,048)
Other comprehensive income	21	224,320	232,040
Total owners' equity		11,315,660	9,365,557
Non controlling interest	15	1,601,002	1,229,879
Total shareholders' equity		12,916,662	10,595,436
Total liabilities and shareholders' equity		41,478,369	34,127,700

The Supplementary Notes are inseparable parts of the consolidated financial statements.

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