Appeninn Vagyonkezelo Nyilvanosan Mukodo Reszvenytarsasag : Individual Business Report and Executive Report (AGM submission, not approved)

Appeninn Vagyonkezelő Holding Nyilvánosan Működő Részvénytársaság

Individual Business Report and Executive Report for the Year 2022

A business report required by International Financial Reporting Standards (IFRS) and Act C of 2000 on Accounting, and an executive report compiled on the basis of Annex No. 1 to Decree 24/2008. (VIII.15.) of the Minister of Finance, in a consolidated format.

Dated as of 6 April 2023 in Budapest

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Appeninn Vagyonkezelő Holding Nyilvánosan Működő Részvénytársaság (registered office: 1022

Budapest, Bég u. 3-5., company registration number: 01-10-046538 - hereinafter referred to as: "Appeninn Plc." or the "Company") has prepared consolidated financial statements for the year 2022, compiled in accordance with International Financial Reporting Standards (IFRS). The business report required by Act C of 2000, on Accounting (hereinafter referred to as: the "Accounting Act") (Section 95 of the Accounting Act) and the executive report prepared in accordance with the contents described and indicated in Annex No. 1 to Decree 24/2008. (VIII.15.) of the Minister of Finance (hereinafter referred to as: "MoF") are prepared and published by Appeninn Nyrt. in a consolidated structure.

The purpose of the report is to demonstrate the Company's proprietary, financial and earnings position, and the course of its business, including the key risks and uncertainties incurred by the undertaking in the course of its activity, through an assessment of the figures contained in the annual report in a manner that provides a reliable and fair view reflecting the actual circumstances on the basis of facts from the past and of estimated future data [Accounting Act, Section 95(1)]. The business report must contain a comprehensive analysis of the development, performance and position of the Company's business, consistent with the size and complexity of the Company [Accounting Act, Section 95(2)].

With a view to expediency, below the Company presents, characteristically to its activity and in an extent required for understanding the Company's development, performance or current situation, all the financial indicators and, where necessary, all the non-financial key performance indicators that are essential for the particular business entity.

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1. The Company's development and history

Appeninn Nyrt., founded in 2009, is a key player in the Hungarian real estate market and a real estate investment and asset management company listed on the Budapest Stock Exchange for more than 10 years and listed in the Premium category since 2013. The main elements of its activity are real estate development, real estate rental and estate property maintenance.

The diversified, already operating real estate portfolio of the Company and its subsidiaries included in the consolidation (hereinafter referred to as: the "Appeninn Group") is outstanding among Hungarian real estate market participants: mostly Budapest, office buildings and retail and logistics properties are owned by the Appeninn Group. The portfolio of the group was decreased with tourist real estate sale in 2022. The diversified industry presence largely atomizes the risk of unilateral exposure in the medium and long term, which contributes to the long-term stability of the Appeninn Group's operations. An improvement in the level of predictable profitability will allow us to increase our share of the office, commercial and logistics market. The Appeninn Group, the so-called Core portfolio thereof, currently has approximately 230 tenants, with a portfolio of 38, more than 157 000 square metre of real estate properties valued at nearly € 108 million.

As a listed company, one of the main considerations for Appeninn Nyrt. during its 10 years of listing was to create value for the investors of the Company through a real investment opportunity. The revenue- generating activities of Appeninn Group are based on a stable, value-retaining real estate portfolio providing long-term security.

1.1. Amount of the share capital and changes affecting the share capital

The share capital of the Company embodies 47 371 419 quantity of shares (ISIN: HU0000102132,

aggregate face value: 4 737 141 900,- Hungarian Forints). During the year the share capital of the Company did not change.

1.2. Management of the Company

The composition of the Board of Directors and the Audit Committee of the Company as at 31 December

2022 is as follows:

1.2.1.Members of the Board of Directors:

• Dr. Illés Tibor Endre
• Jombik Zoltán
• Kertai Zsolt
• Szathmáriné Szűcs Györgyi Magdolna
• Törő Csaba

1.2.2. Members of the Audit Committee:

• Kertai Zsolt
• Jombik Zoltán
• Törő Csaba

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1.3. Company Structure (31 December 2022)

				Appeninn E-Office
				Vagyonkezelő Zrt. (03)
			24399201-2-41
				Appeninn Property
				Vagyonkezelő Zrt. (01)
		25153655-2-43
				Appeninn- Bp1047 Zrt. (02)
		23493254-2-43
				Curlington
				Ingatlanfejlesztési Kft. (08)
VagyonkezelőAppeninnHolding 11683991(06)Nyrt. -2-43		13314846-2-43
	(26) 26350800-2-43
				Szent László Téri Szolgáltató
				Ház Kft. [phone]-2-
		43
				BERTEX Plc. [phone]-
		2-43
				Appeninn Project-EGRV Kft.
		(25) 26350790-2-42
			Appeninn Project-MSKC Kft.
				Appeninn BLT Kft. (27)
				SECTURA Ingatlankezelő
				Kft. (18) 11622862-2-43
				Solumn-Invest Kft. 51 %
		(31) 24218335-2-19

Alagút Investments Kft. (32)

26160575-2-43

Felhévíz-Appen Kft. (14)

25722288-2-43

Appen-Retail Kft. (16)

25853960-2-43

Imanpa doo Beograd

Leveron doo Beograd

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1.4. Major economic events of the year 2022

Extraordinary Information, 10 February 2022 - strategy

Appeninn Vagyonkezelő Holding Nyilvánosan Működő Részvénytársaság (1118 Budapest, Kelenhegyi út 43. B. ép. 5. em. 1.; company registration number: 01-10-046538;hereinafter referred to as: "Company") shall hereby inform its Esteemed Investors that it has updated its strategy.

Extraordinary Information, 02 March 2022

Appeninn Vagyonkezelő Holding Nyilvánosan Működő Részvénytársaság (in English: Appeninn

Asset Management Holding Public Limited Company) (registered office: 1118 Budapest, Kelenhegyi út

43/B. 5. emelet 1.; company registration number: 01-10-046538, hereinafter referred to as "Issuer") shall

hereby inform the Esteemed Investors that Scope Ratings GmbH (registered office: Lennéstrasse 5.

D-10785 Berlin, hereinafter referred to as: the "Credit Rating Agency") has carried out the monitoring of the Issuer's bonds "APPENINN 2029/I" issued under the Bond Funding for Growth Scheme of MNB (in English: the Hungarian National Bank). The Credit Rating Agency's monitoring review does not constitute a credit rating action.

Scope's monitoring report is based on the key figures included in the Company's 2021 semi-annual report published on 30 September 2021 and the data included in the Company's previous strategy. In its monitoring report published on 2 March 2022, the Credit Rating Agency assesses the Issuer's business and financial risk profile as unchanged. Credit Rating Agency also maintained its view on Issuer's financial risk profile but foresees that the 2021 strategy will have an adverse effect.

Extraordinary Information, 03 March 2022

Appeninn Vagyonkezelő Holding Nyilvánosan Működő Részvénytársaság (in English: Appeninn Asset

Management Holding Public Limited Company) (registered office: 1118 Budapest, Kelenhegyi út 43/B.

5. emelet 1.; company registration number: 01-10-046538, hereinafter referred to as: "Issuer") shall hereby inform the Esteemed Investors that by its decision adopted on 1 March 2022, Magyar Nemzeti Bank (in English: Hungarian National Bank) revoked the business license of Sberbank Magyarország Zrt. (in English: Sberbank Hungary Plc.) (registered office: 1088 Budapest, Rákóczi út 1-3.; hereinafter referred to as "Sberbank Magyarország") and initiated the winding-up proceedings of the company.

The decision affects certain payment accounts of DREAMLAND Holding Zrt. (in English: DREAMLAND Holding Plc.) (registered office: 1022 Budapest, Bimbó út 7. fszt. A02), under the direct majority ownership of the Issuer, and the project companies under the indirect ownership thereof, held with Sberbank Magyarország, furthermore, the loan agreement between Sberbank Magyarország and Tokaj Csurgó Völgy Korlátolt Felelősségű Társaság (in English: Tokaj Csurgó Völgy Limited Liability Company) (registered office: 1022 Budapest, Bimbó út 7, fszt. A02.).

The companies concerned are continuously reviewing the situation resulting from the winding up of Sberbank Magyarország and will take the necessary decisions accordingly, acting as responsible owners. The provision does not impede the scheduling of development projects in the portfolio of DREAMLAND Holding Zrt. and their implementation will continue as planned.

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