Appeninn Vagyonkezelo Nyilvánosan Muködo Reszvenytársaság : IFRS 2023 Egyedi éves beszámoló IFRS 2023 Appenin standalone financial statements

APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

APPENINN HOLDING PLC.

STANDALONE 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
	STANDALONE ANNUAL FINANCIAL STATEMENTS
	Table of contents
1.	General section	8
1.1	Presentation of the company	8
1.2	Basis of preparation of the balance sheet	9
2.	Accounting policy	10
2.1	Significant accounting policies	10
2.1.1.	Reporting currency and foreign currency balances	10
2.1.2.	Revenues	11
2.1.3.	Other income and expenditure	12
2.1.4.	Valuation of capital investments	13
2.1.5.	Investment property	14
2.1.6.	Financial instruments	14
2.1.7.	Financial liabilities	16
2.1.8.	Fair value	16
2.1.9.	Related parties	17
2.1.10. Income taxes	18
2.1.11. Leasing	19
2.1.12. Earnings per share (EPS)	21
2.1.13. Deposits paid by tenants	21
2.1.14. Off-balance sheet items	21
2.1.15. Treasury shares repurchased	21
2.1.16. Dividends	22
2.1.17. Result of financial operations	22
2.1.18. Events after year end	22
2.2	Changes in accounting policies	22
2.3	Significant accounting estimates and assumptions	25
2.3.1.	Classification of properties	26
2.3.2.	Fair value of investment property	26
2.3.3.	Impairment of participations	27
3.	Revenues	27
4.	Direct costs of letting a property	28
5.	Service charges from subsidiaries	29
6.	Administrative costs, service charges, wages and salaries	29
7.	Balance of other income and expenditure	30
8.	Profit (loss) on sale of subsidiaries, investments	30
9.	Fair value result on investment property	30
10.	Depreciation and amortisation	34
11.	Other expenditure and income on financial operations	34
12.	Balance of interest receivable and payable	34
13.	Income taxes	35
14.	Earnings per share	36
15.	Investment properties	37
16.	Tangible assets	38
17.	Participations and assets held for sale	39
18.	Trade receivables	40

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	APPENINN HOLDING PLC.
	31 DECEMBER 2023
	STANDALONE ANNUAL FINANCIAL STATEMENTS
19.	Other current receivables	41
20.	Receivables from related parties	42
21.	Short-term loans	42
22.	Accruals	43
23.	Cash and cash equivalents	43
24.	Share capital	44
25.	Treasury shares repurchased	44
26.	Reserves	45
27.	Retained earnings	45
28.	Deposits paid by tenants	47
29.	Lease commitments	47
30.	Own issued bonds	48
31.	Deferred tax liabilities	48
32.	Short-term loans	49
33.	Other current liabilities	49
34.	Current liabilities to related parties	50
35.	Trade payables	50
36.	Tax and duty obligations	50
37.	Accruals and deferred income	50
38.	Transactions with related parties	51
39.	Remuneration of key managers	51
40.	Financial instruments	51
41.	Risk management	52
41.1	Capital Markets	53
41.2	Credit risk	53
41.3	Market risk	54
41.4	Foreign exchange risk	54
41.5	Business risk	54
41.6	Liquidity risk	55
42.	Changes in liabilities related to financing activities	56
43.	Contingent liabilities	56
44.	Environmental impacts on the Company's activities	56
45.	Segment reports	57
46.	Events after the balance sheet date	57
47.	Information on the preparation of the standalone financial statements	57
48.	Audit of standalone financial statements, auditor's fees	58
49.	Authorisation of financial statements for issue	58
Statements	59

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

Statement of financial position	Notes	31.12.2023	31.12.2022
		thousand	thousand
Assets		HUF	HUF
Investment properties	15	8.884.324	10.274.737
Fixed assets	16	10.492	11.052
Investments	17	8.153.554	6.209.014
Total non-current assets		17.048.370	16.494.803
Trade receivables	18	89.881	17.137
Other current receivables	19	154.627	62.451
Receivables from related parties	20	21.485.258	13.325.612
Short-term loans	21	-	60.565
Accruals	22	111.910	62.439
Assets held for sale	17	-	500.000
Cash and cash equivalents	23	6.324.324	12.304.042
Total current assets		28.166.000	26.332.246
Total assets		45.214.370	42.827.049
Equity and liabilities
Share capital	24	4.737.142	4.737.142
Treasury shares repurchased	25	(1.114)	(1.114)
Reserves	26	8.095.844	8.095.844
Retained earnings	27	7.263.787	7.420.955
Total equity		20.095.659	20.252.827
Deposits paid by tenants	28	206.986	218.592
Lease commitments	29	17.315	124.859
Bond debts	30	20.120.103	20.125.900
Deferred tax liabilities	31	-	506.059
Total long-term liabilities		20.344.404	20.975.410
Short-term bank loans and lease liabilities	32	102.099	103.603
Other current liabilities	33	262.535	30.762
Short-term related liabilities	34	4.057.423	1.269.294
Liabilities to suppliers	35	13.035	66.255
Income tax liabilities		49.975	46.881
Tax and duty obligations	36	66.485	74.222
Accruals	37	222.755	7.795
Total current liabilities		4.774.307	1.598.812
Total liabilities		25.118.711	22.574.222
Total equity and liabilities		45.214.370	42.827.049

The notes on pages 8 to 59 form an integral part of these standalone financial statements

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

Statement of Total	Notes	financial year	year ending
comprehensive income	for the	for the financial
	ending	31.12.2022
		31.12.2023
		thousand HUF	thousand HUF
Income from the rental of immovable property	3	709.399	729.476
Direct costs	4	(63.891)	(70.077)
Gross margin		645.508	659.399
Service charges from subsidiaries	5	161.817	231.271
Administrative costs, service charges, wages and salaries	6	(310.611)	(362.845)
Other income/(expenses)	7	(28.962)	(14.566)
Profit (loss) on sale of subsidiaries, investments	8	-	11.032
Fair value result on investment property	9	(1.161.951)	965.947
Profit before tax, interest and depreciation		(694.199)	1.490.238
Depreciation and amortisation	10	(2.394)	(20.048)
Other (expense)/income from financial operations	11	(695.087)	349.777
Balance of interest receivable and (payable)	12	827.451	622.882
Leasing interest	12	(4.929)	(15.827)
Profit before tax		(569.158)	2.427.022
Income taxes	13	411.990	(234.387)
Result for the year		(157.168)	2.192.635
Other comprehensive income		-	-
Other comprehensive income for the year, net of tax		-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(157.168)	2.192.635

The notes on pages 8 to 59 form an integral part of these standalone financial statements

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

Changes in equity	Notes	Share	Reserves	Treasury shares	Retained	Total
(data in thousands of HUF)		capital			earnings	equity
On 1 January 2022	26-29	4.737.142	8.095.844	(1.114)	5.228.320	18.060.192
Total comprehensive income for the year
Total comprehensive income for the year	29				2.192.635	2.192.635
Balance at 31 December 2022	26-29	4.737.142	8.095.844	(1.114)	7.420.955	20.252.827
On 1 January 2023	26-29	4.737.142	8.095.844	(1.114)	7.420.955	20.252.827
Total comprehensive income for the year
Total comprehensive income for the year	29				(157.168)	(157.168)
Balance at 31 December 2023	26-29	4.737.142	8.095.844	(1.114)	7.263.787	20.095.659

The notes on pages 8 to 59 form an integral part of these standalone financial statements

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

Cash flow statement	Notes	for the	for the financial
	financial year	year ending
data in thousands of HUF		ending	31.12.2022
		31.12.2023
Profit before tax		(569.158)	2.427.022
Transactions not involving the movement of money:
Fair value result on investment property	9	1.161.951	(965.947)
Depreciation	10	2.394	20.048
(Profit)/loss on sales of subsidiaries	8	-	(11.032)
Impairment of shareholding	17	513.989	108.627
Interest receivable	12	(1.600.062)	(1.322.882)
Interest expenditure	12	777.540	700.000
Change in receivables and other current assets	18-22	143.618	4.516
Changes in liabilities and accruals	32-37	430.833	36.727
Income tax paid		(90.975)	(22.612)
Net cash flow from operating activities		770.130	974.467
Acquisition of shares and loans	17	(2.225.847)	1.600.000
Sale of shares	17	500.000	-
Purchases of tangible fixed assets	16	(1.834)	(4.947)
Loans to related parties	20	(8.628.466)	5.791.556
Revenue from repayment of loans granted	21	60.565	367.846
Subleasing income	18	110.813	-
Interest received	12	1.600.062	1.322.882
Net cash flow from investing activities		(8.584.707)	9.077.337
Loans, leases, loan repayments	32	(109.048)	(64.187)
Obtaining loans, leases, loans	32	2.788.129	-
Leasing rates	12	(4.929)	(15.827)
Interest paid	12	(700.000)	(700.000)
Net cash flow from financing activities		1.974.152	(780.014)
Exchange rate impact		(139.293)	(78.685)
Change in cash and cash equivalents	23	(5.979.718)	9.193.104
Cash balances:
Cash at the beginning of the year	23	12.304.042	3.110.938
Cash and cash equivalents at the end of the year	23	6.324.324	12.304.042

The notes on pages 8 to 59 form an integral part of these standalone financial statements

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL 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.

The Group's registered office is 1022 Budapest, Bég utca 3-5.

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

Owner name	Number of shares	Shareholding(%)
Avellino Zrt.	11.369.141	24,000%
Sequor Holding Zrt.	11.297.291	23,840%
OTP Real Estate Investment Fund	2.410.372	5,090%
Own share	1.848	0,004%
Free float	22.292.767	47,066%
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	24,000%
Sequor Holding Zrt.	11.297.291	23,840%
OTP Real Estate Investment Fund	2.410.372	5,090%
Own share	1.848	0,004%
Free float	22.292.767	47,066%
Total:	47.371.419	100.00%

Transformation into a regulated real estate investment company

The Company was registered as a Regulated Real Estate Investment Holding on 12 January 2024, with effect from 1 January 2024, by the Metropolitan Court of Budapest.

In the future, the Company will be exempt from paying corporate tax and local business tax as a Regulated Real Estate Investment Company.

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

1.2 Basis of preparation of the balance sheet

i) Acceptance and declaration of compliance with International Financial Reporting Standards

The financial statements have been prepared on a going concern basis. The standalone financial statements were approved by the Board of Directors on 4 April 2024. The standalone financial statements have been prepared in accordance with International Financial Reporting Standards, as published and incorporated by regulation in the Official Journal of the European Union (EU). IFRS are standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC).

The figures given in the standalone financial statements of the Company are in thousands of forints. All amounts are rounded to the nearest thousand forints.

iii) Basis of preparation of the accounts

The standalone financial statements have been prepared in accordance with the standards and IFRIC interpretations in force for the year ending 31 December 2023.

The notes to the financial statements include disclosures required by the Hungarian Accounting Act.

The financial year is the same as the calendar year.

iv) Basis of assessment

The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses and the accounting policies used. Estimates and related assumptions are based on historical experience and a number of other factors that are believed to be reasonable under the circumstances, the results of which form the basis for estimating the carrying amounts of assets and liabilities that are not readily determinable from other sources. Actual results may differ from these estimates.

Estimates and assumptions are regularly reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only the current year, and in the period of the revision and future periods if the revision affects both current and future years.

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APPENINN HOLDING PLC. 31 DECEMBER 2023 STANDALONE ANNUAL FINANCIAL STATEMENTS

2. Accounting policy

The principal accounting policies applied in the preparation of the standalone financial statements are set out below. Accounting policies have been consistently applied to the periods covered by these standalone financial statements. The principal accounting policies applied in the preparation of the financial statements are as follows:

2.1 Significant accounting policies

2.1.1. Reporting currency and foreign currency balances

Given the substance and circumstances of the underlying transactions, the functional currency of the Company is the Hungarian forint.

Foreign exchange transactions denominated in currencies other than HUF are initially recorded at the exchange rate prevailing on the date on which such transactions are executed. Foreign currency assets and liabilities are translated into forint at the exchange rate prevailing at the balance sheet date. The resulting exchange differences are recognised in the profit and loss account under financial income or financial expenses.

Financial statements are presented in Hungarian Forint (HUF), rounded to the nearest thousand, except where otherwise indicated.

The Company uses the exchange rate quoted by the Hungarian National Bank.

Transactions in foreign currencies are recorded in the functional currency, using the exchange rate between the reporting currency and the foreign currency at the date of the transaction for the amount in the foreign currency. In the statement of comprehensive income, exchange differences arising on the settlement of monetary items, on initial recognition during the period or arising from the use of exchange rates different from those used in the previous financial statements are recognised as income or expense in the period in which they arise. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange ruling at the end of the reporting period. Foreign currency items measured at fair value are translated at the exchange rate at the date when the fair value was determined.

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