Appeninn Vagyonkezelo Nyilvánosan Muködo Reszvenytársaság : KONSZOLIDÁLT ÉVES PÉNZÜGYI KIMUTATÁS CONSOLIDATED ANNUAL FINANCIAL STATEMENT

APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

APPENINN HOLDING PLC.

CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

INTERNATIONAL FINANCIAL REPORTING ACCORDING TO STANDARDS

31 DECEMBER 2023

WITH A COMPARATIVE PERIOD ENDING ON 31 DECEMBER 2022

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	APPENINN HOLDING PLC.
		31 DECEMBER 2023
	CONSOLIDATED FINANCIAL STATEMENTS
	Table of contents
1.	General section	10
1.1	Presentation of the company	10
1.2	Basis of preparation of the balance sheet	11
2.	Accounting policy	12
2.1	Significant accounting policies	12
	The basis for consolidation	12
	Reporting currency and foreign currency balances	14
	Revenues	15
	Other income and expenditure	16
	Investment property	17
	Financial assets	17
	Impairment of receivables	19
	Financial liabilities	19
	Fair value	20
	Related parties	20
	Income taxes	21
	Leasing	22
	Earnings per share (EPS)	24
	Deposits paid by tenants	24
	Off-balance sheet items	24
	Treasury shares repurchased	24
	Dividend	25
	Result of financial operations	25
	Events after reporting period	25
	Discontinued operation	25
2.2	Changes in accounting policies	26
2.3	Significant accounting estimates and assumptions	29
	Classification of properties	29
	Fair value of investment property	30
	Asset deals	30
2.4	Changes in the companies included in the scope of consolidation	31
	Acquisitions and disposals of investments in 2023	32
	Share sales in 2022	36
3.	Revenues from property rental	38
4.	Direct costs of letting a property	39
5.	Administrative costs	40
6.	Expenditure on staff	40
7.	Other operating expenses and income	41
8.	Gain (loss) on sale of investments	41
9.	Gains on sale of investment property	42
10.	Fair value result on investment property	42
11.	Depreciation and amortisation	48
12.	Other expenditure and income on financial operations	48
13.	Balance of interest income and expense	48
14.	Income taxes	49

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		APPENINN HOLDING PLC.
		31 DECEMBER 2023
	CONSOLIDATED FINANCIAL STATEMENTS
15.	Result of discontinuing activity	50
16.	Earnings per share	52
17.	Net asset value per share	53
18.	Investment properties	54
19.	Tangible fixed assets	57
20.	Deferred tax assets	58
21.	Participations in associates	59
22.	Receivables beyond one year	59
23.	Trade receivables	59
24.	Other current receivables	60
25.	Short-term loans	60
26.	Prepayments	60
27.	Income tax assets and liabilities	61
28.	Assets held for sale and liabilities directly linked to sales	61
29.	Cash and cash equivalents	62
30.	Share capital	63
31.	Treasury shares repurchased	64
32.	Capital reserve	64
33.	Translation reserve	64
34.	Retained earnings	64
35.	Non-controlling interest	65
36.	Long and short-term loans and leases	65
37.	Own issued debt securities	68
38.	Deposits paid by tenants	68
39.	Long- and short-term liabilities to related parties	69
40.	Deferred tax assets and liabilities	69
41.	Other current liabilities	71
42.	Trade payables	71
43.	Tax and duty liabilities	71
44.	Accruals and deferred income	72
45.	Transactions with related parties	72
46.	Segment information	74
47.	Financial instruments	76
48.	Risk management	77
48.1	Capital Markets	77
48.2	Credit risk	77
48.3	Market risk	78
48.4	Foreign exchange risk	78
48.5	Business risk	78
48.6	Liquidity risk	79
49.	Changes in liabilities related to financing activities	81
50.	Contingent liabilities	81
51.	Events after the balance sheet date	81
52.	Information on the preparation of the consolidated accounts	82
53.	Audit of consolidated accounts, auditor's fees	83
54.	Authorisation of financial statements for issue	83

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	APPENINN HOLDING PLC.
	31 DECEMBER 2023
	CONSOLIDATED FINANCIAL STATEMENTS
Statements	......................................................................................................................................... 84

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated

Statement of

Financial Position

Notes

31.12.2023

31.12.2022

Assets		EUR	EUR
Investment properties	18	184.588.000	108.080.799
Fixed assets	19	27.411	27.613
Deferred tax assets	20	-	45.454
Participation in associates	21	7.590	-
Receivables beyond one year	22	454.774	196.078
Total non-current assets		185.077.775	108.349.944
Trade receivables	23	2.845.019	556.820
Other current receivables	24	969.502	418.693
Short-term loans	25	-	151.318
Prepayments	26	1.419.345	281.592
Income tax receivables	27	16.712	8.675
Assets held for sale	28	-	24.621.386
Cash and cash equivalents	29	20.362.775	55.312.730
Total current assets		25.613.353	81.351.214
Total assets		210.691.128	189.701.158

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated

Statement of

Financial Position

Notes

31.12.2023

31.12.2022

Liabilities and equity		EUR	EUR
Equity
Share capital	30	15.217.006	15.217.006
Treasury shares repurchased	31	(1.171)	(1.171)
Capital reserve	32	25.645.230	25.645.230
Translation reserve	33	(12.529.413)	(16.238.045)
Retained earnings	34	82.729.235	59.962.450
Equity attributable to parent		111.060.887	84.585.470
Non-controlling interests	35	-	(1.334.558)
Total equity		111.060.887	83.250.912
Long-term bank loans and lease	36	34.263.546	24.780.123
liabilities
Deferred income	36	1.777.689	-
Bond debts	37	52.563.100	50.283.324
Deposits paid by tenants	38	2.785.574	1.300.579
Deferred tax liabilities	40	-	6.087.261
Total long-term liabilities		91.389.909	82.451.287
Short-term bank loans and lease	36	2.308.058	1.331.856
liabilities
Other current liabilities	41	725.052	151.045
Short-term related liabilities	39	-	28.456
Liabilities to suppliers	42	1.218.472	968.687
Tax and duty obligations	43	449.320	187.235
Liabilities directly linked to sales		-	20.816.898
Income tax liabilities	27	542.399	128.387
Accruals	44	2.997.031	386.395
Total current liabilities		8.240.332	23.998.959
Total liabilities		99.630.241	106.450.246
Total equity and liabilities		210.691.128	189.701.158
The notes on pages 10 to 84 form an integral part of the consolidated accounts

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of comprehensive income

Notes for the financial year	for the financial year
ending 31.12.2023	ending 31.12.2022
	(*amended)
EUR	EUR

Continuing activity
Income from the rental of investment property	3	19.487.935	8.039.395
Direct costs of letting a property	4	(7.486.555)	(2.422.283)
Gross margin		12.001.380	5.617.112
Administrative costs	5	(828.466)	(707.615)
Expenditure on staff	6	(275.326)	(315.720)
Other income/(expenses)	7	156.468	(3.185)
Gain (loss) on sale of investments	8	-	75.394
Gains on sale of investment property	9	357.593	-
Fair value result on investment property	10	1.973.024	9.288.938
Profit before tax, interest and depreciation		13.384.673	13.954.924
Depreciation and amortisation	11	(6.267)	(63.866)
Other (expense)/income from financial operations	12	1.615.571	(2.023.078)
Balance of interestincome and (expense)	13	(227.964)	1.580.736
Lease interest	13	(12.905)	(40.443)
Profit before tax		14.753.108	13.408.273
Income taxes	14	5.182.288	(1.622.674)
Profit after tax from continuing operations		19.935.396	11.785.599
Profit after tax from discontinued operations	15	2.831.389	2.139.965
Total profit after tax		22.766.785	13.925.564
Other comprehensive income
Other comprehensive income to be recognised in the consolidated
income statement in the following period:
Exchange rate differences arising on currency translation	33	1.261.665	(3.189.697)
Exchange difference on disposal of subsidiary	15	169.340	931.249
Other comprehensive income not reversed in the consolidated income
statement in the following period:
Exchange rate differences arising on currency translation	33	2.277.627	(3.848.428)
Other comprehensive income for the year, net of		3.708.632	(6.106.876)
tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		26.475.417	7.818.688
Profit after tax from continuing operations:
Non-controlling interests		-	-
Attributable to owners of the Company		19.935.396	11.785.599
From the after-tax results of discontinuing operations:
Non-controlling interests		-	(1.681.500)
Attributable to owners of the Company		2.831.389	3.821.465
Other comprehensive income:
Non-controlling interests		-	34.112
Attributable to owners of the Company		3.708.632	(6.140.988)
Total comprehensive income:
Non-controlling interests		-	(1.647.388)
Attributable to owners of the Company		26.475.417	9.466.076
Basic earnings per share in EUR cents	16	48,06	32,95*
Diluted earnings per share in EUR cents	16	48,06	32,95*
Basic EPS for continuing operations in EUR cents	16	42,08	24,88*
Diluted EPS for continuing operations in EUR cents	16	42,08	24,88*

The notes on pages 10 to 84 form an integral part of the consolidated accounts

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Changes in

Equity (in EUR)

On 1 January 2022

Reclassification

Total comprehensive income for the year Profit after tax for the year

Other comprehensive income

Transactions with non-controlling interests Selling a subsidiary - Dreamland

Selling a subsidiary - Promot

Sale of a subsidiary - Operator

Balance at 31 December 2022

On 1 January 2023

Total comprehensive income for the year Profit after tax for the year

Other comprehensive income

Transactions with non-controlling interests Sale of a subsidiary - Solum-Invest

Note	Share	Capital	Treasury	Translation	Retained	Attributable to	Non-	Total
s	capital	reserve	shares	reserve	earnings	owners of the	controlling	equity
						parent	interests
						company
	15.217.006	25.645.230	(1.171)	(11.151.490)	44.355.386	74.064.961	112.307	74.177.268
				123.184		123.184	(123.184)	-
34					15.607.064	15.607.064	(1.681.500)	13.925.564
				(6.140.988)		(6.140.988)	34.112	(6.106.876)
	0	0	0	931.249	0	931.249	323.707	1.254.956
35				(151.901)		(151.901)	1.146.955	995.054
35				1.013.170		1.013.170	(823.248)	189.922
35				69.980		69.980		69.980
	15.217.006	25.645.230	(1.171)	(16.238.045)	59.962.450	84.585.470	(1.334.558)	83.250.912
	15.217.006	25.645.230	(1.171)	(16.238.045)	59.962.450	84.585.470	(1.334.558)	83.250.912
34					22.766.785	22.766.785		22.766.785
				3.708.632		3.708.632		3.708.632
	0	0	0	0	0	0	1.334.558	1.334.558
35							1.334.558	1.334.558

Balance at 31 December 2023	15.217.006	25.645.230	(1.171) (12.529.413)	82.729.235	111.060.887	- 111.060.887
	The notes on pages 10 to 84 form an integral part of the consolidated accounts

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Cash Flow	Notes	for the	for the
	financial year	financial year
Statement		ending	ending
		31.12.2023	31.12.2022
		EUR	EUR
Profit before tax - from continuing operations		14.753.108	13.408.273
Profit before tax - from discontinued operations		2.831.389	2.390.368
Fair value result on investment property	10	(1.973.024)	(9.288.938)
Result on the sale of investment property	9	(357.593)	0
Depreciation	11	6.267	63.866
(Profit)/loss on sales of subsidiaries	8	(2.831.389)	(75.394)
Interest revenue	13	(3.093.841)	(4.777.330)
Interest expenditure	13	2.985.604	2.702.585
Change in receivables and other current assets	23-	726.093	16.702.161
	25,28
Changes in accrued income and prepaid expenses	26	(1.137.753)	(204.096)
Changes in liabilities and accruals	39-44	(809.304)	9.185.357
Change in tenant deposits	38	316.286	13.852
Income tax paid	14	(1.144.950)	(67.133)
Net cash flow from operating activities		10.270.893	30.053.571
Capital expenditure on investment property	18	(2.057.252)	(361.852)
Purchases of tangible fixed assets	19	(8.712)	0
Change in loans granted	25	151.318	0
Interest received	13	3.093.841	4.777.330
Proceeds from the sale of shares	2.4.	6.571.066	5.418.843
Acquisition of shareholding	2.4.	(53.577.954)	0
Acquisition of investment property	18	0	0
Proceeds from the sale of real estate	9	1.760.000	0
Net cash flow (used in) from investing activities		(44.067.693)	9.834.321
Proceeds from borrowings	36	0	0
Loan repayments	36	(1.876.183)	(623.096)
Interest paid	13	(2.985.604)	(2.702.585)
Net cash flow used in financing activities		(4.861.787)	(3.325.681)
Effect of exchange rate changes:	33	3.708.632	(6.106.876)
Change in cash and cash equivalents	29	(34.949.955)	30.455.335
Cash balances:
Cash at the beginning of the year	29	55.312.730	24.857.395
Cash and cash equivalents at the end of the year	29	20.362.775	55.312.730

The notes on pages 10 to 84 form an integral part of the consolidated accounts

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APPENINN HOLDING PLC. 31 DECEMBER 2023 CONSOLIDATED FINANCIAL STATEMENTS

1. General section

1.1 Presentation of the company

Appeninn Holding Asset Management Plc ("the Company") was established on 1 December 2009. On 7 December 2009, the Company was registered with the Court of Registration under Cg. 01-10-046538. On 19 May 2011, Rotux Zrt. (registration number 01-10-045553) was merged into Appeninn Plc.

Appeninn Holding Asset Management Plc. is one of Hungary's fastest growing real estate investment and asset management companies. The company is continuously expanding its real estate portfolio in the "A" class office and retail property markets in Hungary and the Central and Eastern European region through acquisitions and own developments. Founded in 2009 and listed on the Budapest Stock Exchange in 2010, the company has a nearly fully occupied portfolio of "B" class office and retail properties.

The Group's registered office is 1022 Budapest, Bég street 3-5. The primary country of operation is Hungary.

Shareholders of the Company holding more than 5% on 31 December 2023:

Owner name	Number of shares	Shareholding(%)
Avellino Zrt.	11.369.141	24%
Sequor Holding Zrt.	11.297.291	23,84%
OTP Real Estate Investment Fund	2.410.372	5,09%
Own share	1.848	0,0039%
Free float	22.292.767	47,0661%
Total:	47.371.419	100.00%

Holders of more than 5% of the Company's shares on 31 December 2022:

Owner name	Number of shares	Shareholding(%)
Avellino Zrt.	11.369.141	24%
Sequor Holding Zrt.	11.297.291	23,84%
OTP Real Estate Investment Fund	2.410.372	5,09%
Own share	1.848	0,0039%
Free float	22.292.767	47,0661%
Total:	47.371.419	100,00%

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