Globe Trade Centre S A : 2022 GTC Hungary Group annual report

CONSOLIDATED

ANNUAL REPORT

OF

GTC HUNGARY REAL ESTATE

DEVELOPMENT PLTD. GROUP

FOR THE FINANCIAL YEAR

ENDED 31 DECEMBER

2022

LIST OF CONTENTS:

01. Management board's report on the activities of GTC Hungary Real Estate Development Pltd. in the financial year ended 31 December 2022

02. Consolidated financial statements for the year ended 31 December 2022

03. Statement of responsibility

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MANAGEMENT BOARD'S REPORT

ON THE ACTIVITIES OF

GTC HUNGARY REAL ESTATE DEVELOPMENT PLTD. GROUP

IN THE FINANCIAL YEAR ENDED 31 DECEMBER

2022

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TABLE OF CONTENT
1. Introduction	5
2. Selected financial data	9
3. Key risk factors	10
4. Presentation of the Group	35
4.1	General information about the Group	35
4.2	Main events of 2022	36
4.3	Structure of the Group	37
4.4	The Group's Strategy	38
4.5	Business overview	46
4.5.1 Overview of the investment portfolio	47
4.5.1.1 Overview of income generating portfolio	47
4.5.1.2 Overview of properties under construction	48
4.5.1.3 Overview of investment property landbank	49
4.6 Overview of the markets on which the Group operates	49
4.6.1 Office market	50
4.6.2 Investment market	53
4.7	Information on the Company's policy on sponsorship, charity, and other similar
	activities	54
5. Operating and financial review	55
5.1	General factors affecting operating and financial results	55
5.2	Specific factors affecting financial and operating results	59
5.3	Presentation of differences between achieved financial results and published
	forecasts	59
5.4	Statement of financial position	59
5.4.1 Key items of the statement of financial position	59
5.4.2 Financial position as of 31 December 2022 compared to 31 December 2021	61
5.5	Consolidated income statement	61
5.5.1 Key items of the consolidated income statement	62
5.5.2 Comparison of financial results for the year ended 31 December 2022 with the result
	for the corresponding period of 2021	64
5.6	Consolidated cash flow statement	66
5.6.1 Key items from consolidated cash flow statement	66
5.6.2 Cash flow analysis	67
5.7	Future liquidity and capital resources	68
6. Information on risk management	69

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1. Introduction

The GTC Hungary Real Estate Development Pltd. Was registered in Budapest in September 1998. The company is part of the GTC Group, a leading real estate investor and developer focusing on Poland and Hungary and capital cities in Eastern and Southern Europe: Belgrade, Bucharest, Zagreb, and Sofia. The GTC Group was established in 1994.

Company's portfolio comprises: (i) completed commercial properties; (ii) commercial properties under construction; (iii) a commercial landbank intended for future development.

GTC GROUP:

Poland,

Hungary,

Belgrade,

Bucharest,

Sofia

and Zagreb

As of 31 December 2022, the Company`s property portfolio comprised the following properties:

• 10 office buildings with a total combined commercial space of approximately 199 thousand sq m of GLA, an occupancy rate at 87% and a book value of EUR 594,838 which accounts for 91% of the Group's total property portfolio;
• 1 office project under construction with a total GLA of approximately 36 thousand
  sq m and a book value of EUR 19,500, which accounts for 3% of the Group's total property portfolio;
• investment landbank intended for future development with the book value of EUR 36,483, which accounts for 6% of the Group's total property portfolio.

10	158,000¹	1	landbank for
completed	sq m of	buildings	future
buildings	GLA	under	development
		construction

As of 31 December 2022, the book value of the Company's portfolio amounts to EUR 650.821 with: (i) the Group's completed investment properties account for 91% thereof; (ii) investment properties under

construction for 3%; and (iii) an investment landbank intended for future development for 6%.

The GTC's headquarters are located in Budapest, at 22 Népfürdő street.

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