ANY Biztonsági Nyomda : Export sales increased, promising results in the Printing Company

INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Export sales increased, promising results in the Printing Company

ANY Security Printing Company PLC (BSE: ANY, hereinafter referred to as "ANY PLC" or the "Company") has released its 2024 Q1 results (available on the websites www.bet.hu,www.kozzetetelek.huand www.any.hu).

SUMMARY

• Net sales of ANY PLC for 2024 amounted to HUF 17.8 billion which is higher by HUF 6.6 billion (59%) than in the previous year. Changes in case of strategic product segments were as follows: sales of security products, solutions were HUF 10.8 billion, which is HUF 6.4 billion (145%) higher than the figure in the basis period; sales of card production, personalisation were HUF 3.6 billion, which is HUF 0.4 billion (14%) higher than the figure in the basis period; whilst data processing were HUF 2.7 billion, which is HUF 0.2 billion (7%) lower than the figure in the basis period. Ratio of strategic products segments in total net sales was 96% in 2024.
• Export sales amounted to HUF 10.5 billion as at March 31, 2024, which is HUF 5.7 billion higher than in the previous year, representing 59% export sales ratio.
• Consolidated EBITDA is HUF 3,338 million.
• Consolidated operating income is HUF 2,755 million.
• Consolidated net income after interest income, taxation and non-controlling interest is HUF 1,972 million.

"The impact of international conflicts also made the life of the Printing Company difficult. Supply chain disruptions have been successfully counterbalanced by the outstanding performance of our employees and their commitment to the company. The well-known and serious war conflicts also directed the attention of the governments in the African and Asian markets to strengthening the security elements of various documents, especially passports. The Document Security Laboratory of the Printing Company, now in its 25th year, is a major contributor to the incorporation of special and unique security features into these important documents. Our investments in capacity and efficiency have improved our competitiveness. This process has not stopped, of course, and ANY Security Printing Company PLC is at the forefront of international competition. We are doing our utmost to keep it that way." - added Gábor Zsámboki, CEO of ANY Security Printing Company PLC, to the first quarter report of 2024.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

ANY Security Printing Company PLC hereby declares that the Consolidated Q1 Interim Management Report prepared on the basis of best knowledge, gives a true and fair view of the assets, liabilities, financial position, profits and losses of the Issuer as well as the companies involved into the consolidation, performance and describing the main risks and uncertainty factors for the remaining nine months of the financial year of the Issuer as well as the companies involved into the consolidation.

Gábor Zsámboki

Chief Executive Officer

Budapest, 24th May, 2024

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Consolidated management report

on the results and prospects of Q1 2024, and on quantitative and qualitative indicators

Consolidated net sales

The breakdown of net sales by segment is presented in the table below:

			2023 Q1		2024 Q1		Change		Change %
	Sales segments		HUF millions		HUF millions
				(B-A)		(B/A-1)
			(A)		(B)
Security products and solutions	4,421		10,825	6,404		144.85%
Card production and personalization	3,167		3,611	444		14.02%
Form production and personalization, data	2,853		2,666	(187)		-6.55%
processing
Traditional printing products	466		330	(136)		-29.18%
Other	257		335	78		30.35%
Total net sales	11,164		17,767	6,603		59.15%

ANY PLC had consolidated net sales of 17,767 million in Q1 2024, which is HUF 6,603 million (59%) higher than the sales for the base period.

Sales of security products and solutions came to HUF 10,825 million in Q1 2024 which means an increase of HUF 6,404 million (145%) compared to the base period. The increase was mainly driven by the export projects, document security products, and invoiced revenue from the roll-out of passport issuing systems.

The Company's revenues from card production and personalisation totalled HUF 3,611 million in the period of reference, a HUF 444 million (14%) increase compared to similar period of year 2023. The main reason for the change is the declining turnover of other document cards.

The Company's revenues from form production, personalisation and data processing came to HUF 2,666 million in Q1 2024, HUF 187 million (7%) lower than the sales for the base period. The main reason for the change is the decrease in turnover from export form production and personalization.

Sales of traditional printing products amounted to HUF 330 million in the period of reference, which means a HUF 136 million (29%) decrease compared to the previous year's similar period. Lower volume of book orders is behind the change.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Other sales totalled HUF 335 million in Q1 2024, which is an increase of HUF 78 million compared to the correspondent period of the last year. This segment mainly comprises revenues from the sale of commercial materials and goods.

Export sales by segment

			2023 Q1		2024 Q1
	Sales segments		in HUF		in HUF		Change		Change %
		millions		millions
			(A)		(B)		(B-A)		(B/A-1)
Security products and solutions	1,148		7,547		6,399		557.40%
Card production and personalization	857		484		(373)		-43.52%
Form production and personalization, data	2,509		2,277		(232)		-9.25%
processing
Traditional printing products	105		32		(73)		-69.52%
Other	159		144		(15)		-9.43%
Total export sales	4,778		10,484		5,706		119.42%
Export %	42.80%		59.01%

Export sales amounted to HUF 10,484 million as at March 31, 2024, which was HUF 5,706 million higher compared to a year earlier, representing 59% export sales ratio.

Sales of security products and solutions were HUF 7,547 million, which is HUF 6,399 million higher, than the same period of the last year, mainly due to increased sales of passports and other security products and revenue from passport system roll-out tasks.

Export sales of card production and personalization was HUF 484 million in Q1 2024, which was HUF 373 million (44%) lower compared to the base period, due to the decreased export turnover of card documents. In the field of form production, personalisation and related logistics services export sales was HUF 2,277 million at the end of the period, decreased by HUF 232 million (9%) compared to the base period.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Income statement analysis

The table below presents the calculation of operating income according to the so-called "total cost

accounting" method.

			2023 Q1		2024 Q1
	Description		in HUF		in HUF		Change	Change %
		millions		millions
			(A)		(B)		(B-A)	(B/A-1)
Net sales	11,164		17,767	6,603	59.15%
	Capitalized value of assets produced	316		851	535	169.30%
	Material expenses	7,244		10,370	3,126	43.15%
	Personnel expenses	2,434		4,610	2,176	89.40%
	Depreciation	588		583	(5)	-0.85%
	Other expenses/(revenues)	351		300	(51)	-14.53%
Operating income	863		2,755	1,892	219.24%
Net profit	474		1,972	1,498	316.03%
EBITDA	1,451		3,338	1,887	130.05%
EBITDA margin (%)	13.00%		18.79%

Net sales totalled HUF 17,767 million in Q1 2024, which is HUF 6,603 million (59%) increase compared to the figure for the same period of last year.

Operating income came to HUF 2,755 million, an increase of HUF 1,892 million compared to the previous period.

Gross profit totalled HUF 6,938 million, which means a 39% gross margin. General (SG&A) expenses amounted to HUF 3,881 million in Q1 2024, which equals to 22% of net sales.

Material expenses amounted to HUF 10,370 million, higher by HUF 3,126 million (43%) in the current period due to increased raw material prices and due to services used and consignment services connected to export projects.

The capitalized value of own performance line shows the capitalized value of assets produced and the change in inventories manufactured. These figures were driven mainly by the change in inventories in both periods presented; the most significant of these is the value of work-in-production (WIP) connected to security and card products.

Personnel expenses totalled HUF 4,610 million, which is HUF 2,176 million (89%) higher than in the base period, due to the increase in staffing levels, the effect of wage increase and to the achievement based salaries connected to higher turnover and its contributions.

EBITDA amounted to HUF 3,338 million due to the change in operating income and depreciation, which represents an increase of HUF 1,887 million compared to previous period's EBITDA. Therefore EBITDA margin is 19%.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Net interest income amounted to -38 million HUF in Q1 2024. The foreign currency gain is HUF 197 million, which is the result of the favourable change in the foreign exchange rates. Net income - after financial operations, taxation and minority interest - came to HUF 1,972 million in Q1 2024, which is HUF 1,498 million higher in the base period.

Balance sheet analysis

The Group had total assets of HUF 51,603 million on 31 March 2023, which increased by HUF 10,124 million compared to the previous year-end.

Receivables amounted to HUF 19,928 million which represents a HUF 7,253 million increase compared to the 2023 year-end, due to increased turnover and to the invoices of big projects issued at the end of the year.

Cash and bank totalled HUF 6,677 million which represents a HUF 621 million decrease compared to the 2023 year-end balance.

Inventories totalled HUF 7,523 million, which is a HUF 897 million (14%) increase compared to the 31 December 2023 figure mainly due to increased work-in progress and semi-finished products.

Other current assets and prepayments amounted to HUF 2,518 million, which is increased by HUF 554 million compared to previous year-end mainly due to the increase in the paid advances related to the Angolan projects.

The balance of property, plant and equipment at the end of March 2023 was HUF 13,684 million, an increase of HUF 845 million compared to the end of 2023.

Goodwill amounted to HUF 639 million which is the same as last year's balance.

Accounts payable totalled HUF 6,792 million, HUF 884 million (15%) higher compared to the end of December 2023, mainly due to the increase in accounts payable related to the Angolan projects.

Other payables and accruals amounted to 12,743 million, which is decreased by HUF 6,441 million (102%) compared to the 31 December 2023 figure mainly due to accruals related to the Angolan projects.

Lease liabilities relating to the purchase of fixed assets have a balance of HUF 199 million, from which HUF 90 million is long-term part, HUF 109 million is short-term liability.

Balance of long-term loans totalled HUF 4,024 million which represents a HUF 25 million decrease compared to the 2023 year-end. The Company's operation is financed by short term loans, which reached HUF 8,989 million on 31 March, 2024, out of which short term part of long term loan is HUF 4,945 million.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Changes in equity

				Issued			Capital			Retained			Treasury			Other			Non-
	In HUF thousands:											comprehensive			controlling			Total
			Capital			Reserve			Earnings			Shares
												income			Interest
January 01, 2023		1,449,876		250,686		7,888,003		(455,048)		232,040		1,229,879			10,595,436
Dividend paid		-		-		-		-		-		-		-
Profit after tax attributable to		-		-		473,987		-		-		-		473,987
	owners of the Company
Other comprehensive
	income attributable to		-		-		-		-		(60,014)		(16,417)		(76,432)
	owners of the Company
Change in share to non-		-		-		-		-		-		126,058		126,058
	controlling interests
Change in dividend to non-		-		-		-		-		-		(1,654)		(1,654)
	controlling interests
December 31, 2023		1,449,876		250,686		8,361,990		-455,048		172,026		1,337,866		11,117,396
Dividend paid		-		-		(2,309,466)		-		-		-		(2,309,466)
Profit after tax attributable to		-		-		3,793,302		-		-		-		3,793,302
	owners of the Company
Other comprehensive
	income attributable to		-		-		-		-		52,284		(41,154)		11,130
	owners of the Company
Change in share to non-		-		-		-		-		-		304,290		304,290
	controlling interests
Change in dividend to non-		-		-		-		-		-		-		-
	controlling interests
December 31, 2023		1,449,876		250,686		9,845,826		(455,048)		224,320		1,601,002			12,916,662
Dividend paid		-		-		-		-		-		-		-
Profit after tax attributable to		-		-		1,971,781		-		-		-		1,971,781
	owners of the Company
Other comprehensive
	income attributable to		-		-		-		-		56,940		36,525		93,465
	owners of the Company
Change in share to non-		-		-		-		-		-		214,232		214,232
	controlling interests
Change in dividend to non-		-		-		-		-		-		-		-
	controlling interests
March 31, 2024		1,449,876		250,686		11,817,607		(455,048)		281,260		1,851,759			15,196,140

Cash flow analysis

Net cash flow from operating activities amounted to HUF 1,525 million in Q1 2024. The HUF 2,717 million net income before taxation and non-controlling interest was increased by HUF 1,627 million worth of items with no actual cash flow, the most important being depreciation and amortization. The change in trade

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

receivables, inventories and liabilities decreased net cash

flow from operating activities by HUF 2,159 million. Interest and tax payments totalled HUF -660 million in the period.

Major part of the -1,389 million HUF negative cash flow is from investing activities mainly contains the amounts spent on fixed assets.

The cash flow from financing activities totalled HUF 485 million which was mainly due to the increase in short-term loans, to the decrease in long-term loans and leases.

As a result of the above, cash and cash equivalents decreased by HUF 621 million compared to the same period in 2023, and totalled HUF 6,677 million on 31 March 2024.

Business environment of the Company

ANY Security Printing Company PLC (former State Printing Company PLC) established in 1851, is one of the largest printing companies in Hungary and a leading one in the CEE region. ANY is a public limited company registered under the laws of Hungary. The Company operated as a State enterprise until 1992 when it was transformed into a limited liability company (PLC). The Company's registered office is located in Budapest in the 10th district at Halom street 5.

ANY Security Printing Company Group consists of nine companies, with 5 sites in Hungary, 2 sites in Romania and one each in Slovakia and Moldova. The group is one of the largest security and business form printing company in the Central and Eastern European Region in terms of turnover. The Company's shares have been listed on the Budapest Stock Exchange in the premium category since 2005. Its financial situation is characterised by stable and efficient operation.

Goals and strategy of the Company

ANY Security Printing Company's strategy is focused on secure person and product identification and payment-related products. The Company's activities are characterised by references such as the production and personalisation of Hungarian electronic identity cards and the supply of biometric passports, visas and tax, revenue and excise stamps. As a result of our export activities, our products are supplied and well known in more than 50 countries. The steady growth and the ever-increasing security needs of the security product and document market provide opportunities for further expansion in foreign markets. The development is supported by our R&D activities and innovative products in the Hungarian and international markets. The aim is to introduce digital solutions as extensively as possible, complementing our current portfolio.

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INTERIMMANAGEMENTREPORT 2024.Q1RESULTS

Main risks of the Company, changes and uncertainties connected to them

Foreign currency risk

Among foreign currency transactions of the Group EURO based transactions are the most important ones. Foreign currency liabilities mainly occur from raw material purchases, which are hedged by the receivables from the export sales in foreign currency as a natural hedge. Due to the balance of foreign currency receivables and liabilities the foreign currency risk of the Group is moderate.

Interest rate risk

Due to the debts in ANY PLC, potential interest rate changes would not influence significantly the amount of interests to be paid by the Company.

Liquidity risk

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash-flows and by matching the maturity profiles of financial assets and liabilities. Liquidity risk of the Group, due to the high balance of net working capital, is low.

Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties, and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Trade receivables consist of a large number of costumers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

Significant events between 31 March 2024 and the publication of the interim management report

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	Name of		ANY Security Printing		Phone:		[phone]
	company:		Company PLC.
	Address of		Budapest, Halom u. 5. H-1102		Facsimile:		[phone]
	company:
	Sector of activity:		Other not specified printing		E-mail address:		[e-mail]
	Period:		1 January 2024 -		Investor relations contact		Tamás Karakó
		31 March 2024		person:		Chief Financial Officer

Forms related to financial statements

PK1. General information on financial data

	Yes		No
Audited			X
Consolidated	X
Accounting standards		Hungarian		IFRS	X	Other
Other: …………………

PK2. Companies involved in consolidation

Name of the Company	Equity		Share of ownership		Voting right *		Classification **
Gyomai Kner Nyomda Zrt.	HUF 200,000,000		99.48%		99.48%		L
Specimen Zrt.	HUF 100,000,000		100.00%		100.00%		L
Techno-progress Kft.	HUF 5,000,000		100.00%		100.00%		L
ANY Ingatlanhasznosító Kft	HUF 3,000,000		100.00%		100.00%		L
Zipper Services SRL	RON 2,060,310		60.00%		60.00%		L
Tipo Direct Serv SRL	MDL 30.308		60.00%		60.00%		L
Atlas Trade Distribution	RON 1,000		60.00%		60.00%		L
SRL
Slovak Direct SRO	EUR 63.965		100.00%		100.00%		L

• Voting rights that entitle the holder to participate in decision making at the general meeting of the company included in consolidation.
• Fully controlled subsidiaries (L); Joint ventures (K); Associated undertakings (T)

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