ANY Biztonsági Nyomda : General Meeting Proposals 2024

ANY Security Printing

Company PLC.

Annual General Meeting of

ANY Security Printing Company Public Limited Company by Shares

Budapest, 10 April 2024

1

ANY Security Printing

Company PLC.

Agenda

1. Report of the Board of Directors on the Company's reports under the Accounting Act for the
   2023 business year (balance sheet, profit & loss account, notes to the accounts and business report, hereinafter jointly referred to as "reports under the Accounting Act")
2. Proposal of the Board of Directors for the distribution of net profit
3. Report of the Supervisory Board on the Company's reports under the Accounting Act for the
   2023 business year and the proposal for the use of net earnings
4. Report of the Audit Committee on the Company's reports under the Accounting Act for the
   2023 business year and the proposal for the use of net earnings
5. Report of the Auditor on the Company's reports under the Accounting Act for the 2023 business year and the proposal for the use of net earnings
6. Approval of the Company's reports under the Accounting Act for the 2023 business year, including a decision on the use of net earnings
7. Approval of the Statement on Corporate Governance Practice
8. Approval of the Company's Remuneration Report for the 2023 business year
9. Election and removal of the members of the Board of Directors, Supervisory Board, and of the Audit Committee
10. Decision on the remuneration of Board of Directors, Supervisory Board members and the Auditor
11. Authorization of the Board of Directors to buy treasury shares based on section 9.3 of the
    Company's Statutes
12. Others

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ANY Security Printing

Company PLC.

Documentation

To the Annual General Meeting

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General meeting agenda item no. 1.:

Report of the Board of Directors

Item No. 1

Report of the Board of Directors on the Company's reports under the Accounting Act for the 2023 business year (balance sheet, profit & loss account, notes to the accounts and business report, hereinafter jointly referred to as "reports under the Accounting Act")

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General meeting agenda item no. 1.:

Report of the Board of Directors

The Printing Company increased its exports

ANY Security Printing Company PLC (BSE: ANY, hereinafter referred to as "ANY PLC" or the "Company") has released its 2023 January-December results (available on the websites www.bet.hu,www.kozzetetelek.huand www.any.hu).

SUMMARY

• 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. Changes in case of strategic product segments were as follows: sales of security products, solutions were HUF 29.1 billion, which is HUF 13.8 billion (90%) higher than the figure in the basis period; data processing were HUF 11.2 billion, which is HUF 0.2 billion (9%) lower than the figure in the basis period, whilst sales of card production, personalisation were HUF 12.2 billion, which is HUF 1.1 billion (9%) lower than the figure in the basis period. Ratio of strategic products segments in total net sales was 94% in 2023.
• Export sales amounted to HUF 30.3 billion as at December 31, 2023, which is HUF 14.2 billion higher than in the previous year, representing 55% export sales ratio.
• Consolidated EBITDA is HUF 8,775 million.
• Consolidated operating income is HUF 6,402 million.
• Consolidated net income after interest income, taxation and non-controlling interest is HUF 4,267 million.

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General meeting agenda item no. 1.:

Report of the Board of Directors

Introduction of ANY Group

Name of the Company		Equity		Share of ownership (%)			Voting right(1)
ANY Security Printing		HUF 1,449,876,000		-			-
Company PLC.
Gyomai Kner Nyomda Zrt.		HUF 200,000,000		99.48%			99.48%
Specimen Zrt.		HUF 100,000,000		100.0%			100.0%
Techno-Progress Kft.		HUF 5,000,000		100.0%			100.0%
ANY Ingatlanhasznosító Kft.		HUF 3,000,000		100.0%			100.0%
Zipper Services SRL		RON 2,060,310		60.0%			60.0%
Tipo Direct SERV SRL		MDL 30,308		60.0%			60.0%
Atlas Trade Distribute SRL*		1,000 RON		60.0%			60.0%
Slovak Direct SRO		EUR 63,965		100.0%			100.0%

1. Voting rights that entitle the holder to participate in decision making at the general meeting of the company included in consolidation
   (*) Zipper Services SRL acquired 100% share in Atlas Trade Distribute SRL, the ownership was registered by the authorities on 15th February 2022.

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General meeting agenda item no. 1.:

Report of the Board of Directors

Main financial data and indicators (IFRS consolidated)

	Name	FY 2022		FY 2023
	in HUF millions		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

Sales of product groups

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

	FY 2022		FY 2023		Change
Sales categories	in HUF		in HUF		in HUF		Change
	millions		millions		millions		%
Security products and solutions	15,292		29,061		13,769		90.04%
Card production and personalization	13,302		12,163		(1,139)		-8.56%
Form production and personalization, data	11,367		11,151		(216)		-1.90%
processing
Traditional printing products	2,107		1,992		(115)		-5.46%
Other	1,113		1,108		(5)		-0.45%
Total net sales	43,181		55,475		12,294		28.47%

ANY PLC had consolidated net sales of 55,475 million in 2023, which is HUF 12,294 million (28%) higher than the sales for the base period.

Sales of security products and solutions came to HUF 29,061 million in 2023 which means an increase of HUF 13,769 million (90%) compared to the base period. The increase was mainly driven by the export projects, higher tax stamps turnover and revenue related to fulfilled milestones from the passport system roll-out tasks related to the Angola project, which started in the second quarter.

The Company's revenues from card production and personalisation totalled HUF 12,163 million in the period of reference, a HUF 1,139 million (9%) decrease compared to similar period of year 2022. The main reason for the change is the declining turnover of other document cards.

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General meeting agenda item no. 1.:

Report of the Board of Directors

The Company's revenues from form production, personalisation and data processing came to HUF 11,151 million in 2023, HUF 216 million (2%) 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 1,992 million in the period of reference, which means a HUF 115 million (5%) decrease compared to the previous year's similar period. Lower volume of book orders is behind the change.

Other sales totalled HUF 1,108 million in 2023, which is a decrease of HUF 5 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 categories

			FY 2022		FY 2023		Change		Change
	Sales categories		in HUF		in HUF		in HUF
					%
			millions		millions		millions
Security products and solutions	2,917		17.417	14.500		497.09%
Card production and personalization	1,694		1.981	287		16.94%
Form production and personalization,	10,228		9.889	(339)		-3.31%
data processing
Traditional printing products	267		205	(62)		-23.22%
Other	976		801	(175)		-17.93%
Total export sales	16,082		30.293	14.211		88.37%
Export %	37.24%		54.61%

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.

Sales of security products and solutions were HUF 17,417 million, which is HUF 14,500 million higher, than the same period of the last year, mainly due to increased sales of passports and other security products.

Export sales of card production and personalization was HUF 1,981 million in Q1-Q4 2023, which was HUF 287 million (17%) higher compared to the base period, due to the increased turnover of card documents.

In the field of form production, personalisation and related logistics services export sales was HUF 9,889 million at the end of the period, decreased by HUF 339 million (3%) compared to the base period.

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General meeting agenda item no. 1.:

Report of the Board of Directors

Financial analysis

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

			2022 Q1-Q4		2023 Q1-Q4		Change		Change %
	Description		in HUF millions		in HUF millions
			(A)		(B)		(C-B)		(C/B-1)
Net sales	43,180		55,475		12.295		28.47%
	Capitalized value of assets produced	602		1,202		600		99.67%
	Material expenses	28,200		34,151		5.951		21.10%
	Personnel expenses	9,740		12,717		2.977		30.56%
	Depreciation	2,047		2,373		326		15.93%
	Other expenses	209		1,034		825		394.74%
Operating income	3,586		6,402		2.816		78.53%
Net profit	2,244		4,267		2.023		90.15%
EBITDA	5,633		8,775		3.142		55.78%
EBITDA margin (%)	13.05%		16%

Net sales totalled HUF 55,475 million in Q1-Q4 2023, which is a million increase of HUF 12,295 (28%) compared to the figure for the same period of last year.

EBITDA amounted to HUF 8,775 million due to the change in operating income and depreciation, which represents an increase of HUF 3,141 million compared to previous period's adjusted EBITDA. Therefore EBITDA margin is 16%.

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General meeting agenda item no. 1.:

Report of the Board of Directors

Net income came to HUF 4,267 million in 2023, an increase of 90% compared to the adjusted profit of the previous year's similar period.

The Company had total assets of HUF 41,478 million on 31 December 2023, which increased by HUF 7,351 million compared to the previous year-end.

The Company had non-current assets of HUF 14,158 million on 31 December 2023, which decreased by HUF 339 million compared to the previous year-end.

Changes in equity items (in HUF millions)

HUF millions

Share capital

Capital

Retained

Treasury

Total

reserve

earnings

shares

January 1, 2022	1,450	251	8,054	(455)	9,300
Dividend	-	-	(2,410)	-	(2,410)
Profit for the year	-	-	2,244	-	2,244
Other comprehensive income	-	-	-	-	-
December 31, 2022	1,450	251	7,888	(455)	9,134
January 1, 2023	1,450	251	7,888	-455	9,134
Dividend	-	-	(2,309)	-	(2,309)
Profit for the year	-	-	4,267	-	4,267
Other comprehensive income	-	-	-	-	-
December 31, 2023	1,450	251	9,846	-455	11,092

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